Managing

Project
PROJECT
MANAGEMENT
1. What is a Project?
 1. What is a Project?

A project is temporary
► It has a definite start and end date
► Thereby having a defined scope and resources
► A project is also unique
► It is not routine everyday operational work with repetitive output
► It is a specific set of activities designed to accomplish a well-defined unique
objective
Project Management

The Project Management Institute (PMI) defines a project as:

► a temporary endeavor undertaken to create a unique product,
service, or result.
The International Project Management Association (IPMA) defines
a project as:
► a unique, temporary, multi-disciplinary, and organized
endeavor to realize agreed deliverables within predefined
requirements and constraints.
Projects

PYRAMID GREAT WALL OF CHINA TAJ MAHAL

Projects

LANDING ON THE MOON 1969 DESIGNING A CAR SOFTWARE DEVELOPMENT

2. What is a Project Management?
 The Six Constraint of Project
Management
1. Quality

Quality is one of six major constraints of every

project, as depicted in the classic triple
constraint triangle, which also includes
scope, time, and cost.

❖ Note that these constraints are

interrelated, so a strain on one of the core
constraints will affect one or more of the
other constraints.
 The Six Constraint of Project
Management
2. Time
► Project managers must estimate the time
required to complete a project.
❖ PERT
❖ CPM
❖ Gantt Chart
3. Scope
► It refers to all the work necessary to complete a
project.

4. Cost
► Project managers are responsible for estimating,
budgeting and controlling costs so the project
can be completed within the approved budget.
 The Six Constraint of Operations
Management
5. Risk
► A project manager must be able to reasonably foresee
failures at every step of a project, and prepare for them
accordingly. This can involve playing out what-if scenarios
and formulating contingency plans:
❖ What if a supplier fails to deliver?
❖ What if we lose any number of resources due to illness or transfer?
❖ What if the market takes a huge swing?
❖ What if our competitor launches a similar product at the same
time?

6. Resources
➢ Every project requires resources like human resources,
financial resources, technological resources and other
resources need to meet the project requirement.
Project Management Life Cycle
Five Phases
Project Management Life Cycle
1. Initiation Phase
Project Management Life Cycle
2. Planning Phase
Project Management Life Cycle
3. Execution Phase
Project Management Life Cycle
4. Monitoring and Control Phase
Project Management Life Cycle
5. Closure Phase
The Importance of Project Management

1. Strategic Alignment
⮚ ensures what is being delivered is right, and will deliver real value against the business
opportunity
⮚ ensure there’s rigor in architecting projects properly
2. Leadership
⮚ brings leadership and direction to projects
⮚ vision, motivation, removing roadblocks, coaching, and inspiring the team to do their
best work.
3. Clear Focus & Objectives
⮚ ensures there’s a proper plan for executing on strategic goals.
4. Realistic Project Planning
⮚ ensures proper expectations are set around what can be delivered, by when, and for
how much.
5. Quality Control
⮚ ensures the quality of whatever is being delivered, consistently hits the mark.
 Work Breakdown Structure

► Work breakdown structure (WBS) in project management is a method for

completing a complex, multi-step project.
► The goal of a WBS is to make a large project more manageable. Breaking
it down into smaller chunks means work can be done simultaneously by
different team members, leading to better team productivity and easier
project management.
Work Breakdown Structure
 Project Scheduling
A schedule is your project’s timetable, consisting of sequenced activities and milestones that
have to be delivered under a given deadline.
With the right scheduling techniques you can also adjust some activities and tasks in case of a
project running late or if any changes to the scope occur.
1. Gantt Chart
► it is a tool use in assisting the planning and scheduling of project in all sizes.
Activities Months
1st 2nd 3rd 4th 5th 6th
Plan the date, venue, motif, no. of guests, sponsors
of wedding
Finalize the plan
Find venue of the wedding and reception
Buy things need for wedding (gowns, shoes etc.)
Make invitations
Distribute invitation
Check all activities for final arrangement
Wedding day
Project Scheduling
2. Project Evaluation and Review Techniques (PERT)
► Breaks down the individual tasks of a project for analysis
► identify task dependencies
3. Critical Path Method(CPM)
► method that focuses on identifying tasks that are dependent on other tasks for
their timely completion.
► technique that requires mapping out every key task that is necessary to
complete a project.
Project Management Techniques
Project Controlling
⮚ Project controlling is an effective tool to Project Management to ensure
that project goals, timeframes, and costs are complied with.
⮚ Controlling is essentially tracking and managing the core project
management elements of scope, quality, time and cost.

Project Management Techniques: PERT and CPM

⮚ PERT/CPM are most effective techniques to control the project activities.
Program Evaluation and Review Technique (PERT) and the Critical Path
Method (CPM) helps the managers in scheduling, monitoring and controlling
large and complex projects.
Project Management Techniques
Project Controlling
The Framework of PERT and CPM
PERT and CPM both follow six basic steps:
1. Define the project and prepare the work breakdown structure.
2. Develop the relationships among the activities. Decide which activities
must precede and which must follow others.
3. Draw the network connecting all the activities.
4. Assign time and/or cost estimates to each activity
5. Compute the longest time path through the network. This called the
critical path.
6. Use the network to help plan, schedule, monitor, and control the
project.
 Project Management Techniques
Project Controlling
PERT and CPM are important because they can help answer questions such as the following about the
projects with plenty of activities:
1. When will the entire project be completed?
2. What are the critical activities in the project that may affect (delay) the entire project?
3. Which are the noncritical activities that can run late without delaying the whole project’s completion
4. What is the probability that the project will be completed by a specific date?
5. At any particular date does the project is on schedule, behind schedule or ahead of schedule?
6. On any given date, does the budget on the project is equal, less than or greater than the budgeted
amount?
7. Are there enough resources available to finish the project on time?
8. If the project is to be finished in a shorter amount of time, what is the best way to accomplish this
goal at the least cost?
Project Management Techniques
Project Controlling
Network Diagrams and Approaches
The first step in a PERT or CPM network is to divide the entire project into
significant activities in accordance with the work breakdown structure. There
are two approaches for drawing a project network, Activity on Node (AON)
and Activity on Arrow (AOA).

Example 1: Predecessor Relationships for Pollution Control at Milwaukee Paper

The board of directors of the Milwaukee Paper Manufacturing adopted a
new proactive policy on sustainability and directed the plant manager, Julie
Ann Williams to complete the installation in time for a major announcement of
the policy on Earth Day.
Project Management Techniques
Project Controlling
Network Diagrams and Approaches
Milwaukee Paper Manufacturing’s Activities and Predecessors

Activity Description Immediate

Predecessors
A Build internal components --
B Modify roof and floor --
C Construct collection stack A
D Pour concrete and install A,B
frame
E Build high-temperature C
burner
F Install pollution control C
system
G Install air pollution device D,E
H Inspect and test F,G
Project Management Techniques
Project Controlling
Network Diagrams and Approaches
AON Network for Milwaukee Paper

A C

E
Start H

B D G
Project Management Techniques
Project Controlling
Determining the Project Schedule
After completing AON project network and had been drawn showing all activities and their
precedence relationships, the next step is to determine the project schedule to identify the
planned starting and ending time for each activity.
To find the critical path, we calculate two distinct starting and ending times for each activity.
These are defined as:
Earliest Start (ES) – earliest time at which an activity can start, assuming all predecessors
have been completed.
Earliest Finish (EF) – earliest time at which an activity can be finished
Latest Start (LS) – latest time at which an activity can start so as to not delay the completion
time of the entire project.
Latest Finish (LF) – latest time by which an activity has to finish so as to not delay the
completion time of the entire project
Project Management Techniques
Project Controlling
Determining the Project Schedule
We use two-pass process to determine these time schedules for each activity, forward pass
and a backward pass.
Forward Pass
Earliest Start Time Rule. Before an activity can start, all its immediate predecessor must be
finished.
► If an activity has only single immediate predecessor, its ES equals to EF of the predecessor.
► If an activity has a multiple immediate predecessor, its ES is the maximum of all EF values
of its predecessors.
ES = Max (EF of all immediate predecessors)
Earliest Finish Time Rule. The earliest finish time (EF) of an activity is the sum of the earliest start
time (ES) and its activity time.
EF = ES + Activity time
 Project Management Techniques
Project Controlling
Determining the Project Schedule
Backward Pass
Backward pass begins with the last activity in the project. For each activity, we first determine its LF value,
followed by its LS value. The following two rules are used in this process.

Latest Finish Time Rule. Before an activity can start, all its immediate predecessors must be finished.
► If an activity is an immediate predecessor for just a single activity, its LF equals to the LS of the activity the
immediately follow it.
► If an activity has a multiple immediate predecessor, its LF is the minimum of all LS values of all activities.
LF =Minimum (LS of all immediate following activities)
Latest Start Time Rule. The latest start time (LS) of an activity is the difference of its
latest finish time (LF) and its activity time.
LS=LF -Activity Time
 Project Management Techniques
Project Controlling
Determining the Project Schedule
Calculating Slack Time and Identifying the Critical Path
After we have computed the earliest and latest time for all activities, find the amount of
slack time that each activity has. Slack is the length of time an activity can be delayed
without delaying the entire project.
Slack = LS – ES or Slack = LF – EF
The activities with zero slack are called critical activities and are said to be on the
critical path. The critical path is a continuous path through the project network that:
► Starts at the first activity in the project.
► Terminates at the last activity in the project.
► Includes only critical activities.
❖ slack time is the amount of time that a task in a project network can be delayed without causing a
delay to: subsequent tasks ("free float") project completion date ("total float")
 Project Management Techniques
Project Controlling
Determining the Project Schedule
Notation Used in Nodes for Forward and Backward Pass
Project Management Techniques
Project Controlling
Project Management Techniques
Project Controlling
Project Management Techniques
Project Controlling
Network Diagrams and Approaches
AON Network for Milwaukee Paper

A C

E
Start H

B D G
 Critical Path

A C F

0 0 E H

B D G
 Critical Path

A C F

0 0 E H

B D G
 Critical Path

A C F

0 0 E H

B D G

3
 Critical Path

A C F

2 2

0 0 E H

B D G

3
 Critical Path

A C F

2 2

0 0 E H

B D G

3 4
 Critical Path

A C F

2 2

0 0 E H

0 4

B D G

3 4
 Critical Path

A C F

2 2 3

0 0 E H

0 4

B D G

3 4
 Critical Path

A C F

2 2 3

0 0 E H

0 4

B D G

3 4 5
 Critical Path

A C F

2 2 3

0 0 E H

0 4 2

B D G

3 4 5
 Critical Path

0 A C F

2 2 3

0 0 E H

0 4 2

B D G

3 4 5
 Critical Path

0 A 2 C F

2 2 3

0 0 E H

0 4 2

B D G

3 4 5
 Critical Path

0 A 2 C F

2 2 3

0 0 E H

0 4 2

0 B D G

3 4 5
 Critical Path

0 A 2 C F

2 2 3

0 0 E H

0 4 2

0 B 3 D G

3 4 5
 Critical Path

0 A 2 2 C F

2 2 3

0 0 E H

0 4 2

0 B 3 D G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 E H

0 4 2

0 B 3 D G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 E H

0 4 2

0 B 3 3 D G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 E H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 4 E H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 4 E 8 H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 E H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 4 E H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 F

2 2 3

0 0 4 E 8 H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 4 F

2 2 3

0 0 4 E 8 H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 H

0 4 2

0 B 3 3 D 7 G

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 H

0 4 2

0 B 3 3 D 7 8 G

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 H

0 4 2

0 B 3 3 D 7 8 G 13

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 13 H

0 4 2

0 B 3 3 D 7 8 G 13

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 13 H 15

0 4 2

0 B 3 3 D 7 8 G 13

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 13 H 15

0 4 2 15

0 B 3 3 D 7 8 G 13

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 13 H 15

0 4 13 2 15

0 B 3 3 D 7 8 G 13

3 4 5
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 13 H 15

0 4 13 2 15

0 B 3 3 D 7 8 G 13

3 4 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3

0 0 4 E 8 13 H 15

0 4 13 2 15

0 B 3 3 D 7 8 G 13

3 4 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 3 13

0 0 4 E 8 13 H 15

0 4 13 2 15

0 B 3 3 D 7 8 G 13

3 4 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 10 3 13

0 0 4 E 8 13 H 15

0 4 13 2 15

0 B 3 3 D 7 8 G 13

3 4 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 10 3 13

0 0 4 E 8 13 H 15

0 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 0

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0 6 6

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 0

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0 6 6

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 0

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1 0 0

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0 6 6

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 0 0 0

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1 0 0

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0 6 6

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15

0 0 0 0

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1 0 0

1 3 4 4 4 8 8 5 13
 Critical Path

0 A 2 2 C 4 4 F 7

0 0 0 0 6 6

0 2 2 2 2 4 10 3 13

0 0 4 E 8 13 H 15
CRITICAL PATH 0 0 0 0

0 4 4 8 13 2 15

0 B 3 3 D 7 8 G 13

1 1 1 1 0 0

1 3 4 4 4 8 8 5 13
 Project Management Techniques
Project Controlling
Determining the Project Schedule
Variability in Activity Times
The impact of variability time is important to address in deciding the schedule for a project. To
address this issues, we will be using the Project Evaluation and Review Techniques (PERT).
Three Time Estimates in PERT
In PERT, we employ a probability distribution based on three times estimates for each
activity as follows:
Optimistic Time (a) = time an activity will take if everything goes as planned. In estimating
this value, there should be only a small probability (say 1/100) that
the activity time will be < a.
Pessimistic Time (b) = time an activity will take assuming very unfavorable condition. In
estimating this value, there should also be only a small probability
that the activity time be >b.
Most Likely Time (m) = most realistic estimate of the time required to complete an activity.
 Project Management Techniques
Project Controlling
Determining the Project Schedule
Variability in Activity Times
When using PERT, we often assume that activity time estimates follow the beta probability
distribution. This continuous distribution is often appropriate for determining the expected
value and variance for activity completion times.
To find the expected activity time, t, the beta distribution weights the three time
estimates as follows:
t = (a + 4m + b)/6
To compute the dispersion or variance of activity completion time we use the
formula.
Variance = [(b-a)/6]2
❖ The beta distribution is a weighted average in which more weight is given to the most likely estimate.
Computing Project Variance
and Standard Deviation

Critical Path is ACEGH

Project Variance (σ )=sum of the variances
along the critical path

0.11+0.11+1.00+1.78+0.11=
3.11
Standard Deviation = (σp)
σp = √3.11 =1.76
Computing Project Variance
and Standard Deviation

Critical Path is ACEGH

Project Variance (σ )=sum of the variances
along the critical path

0.11+0.11+1.00+1.78+0.11=
3.11
Standard Deviation = (σp)
σp = √3.11 =1.76 ±1.76
Standard Deviation

Project Standard Deviation ( ):

±1.76 weeks
Due Date:
16 weeks
Project Duration:
15 weeks
Z-score:
Z= (due date – Expected Date)/
Z=(16-15) / 1.76 = 0.57
Normal Distribution Table
Normal Distribution Table
Project Z score = 0.57
Normal Distribution Table
Project Z score = 0.57
Normal Distribution Table
Project Z score = 0.57
Normal Distribution Table
Project Z score = 0.57

7157
Normal Distribution Table
Project Z score = 0.57

71.57%
Probability that the
project will finished
on scheduled date
“Today a reader, tomorrow a leader. ”
– Margaret Fuller