PROJECT MANAGEMENT

Dr. Shahul Hamid Khan

Project - Definition

A Project is a Complex, Non-routine, one-time effort limited by

Time
Budget
Resources and
Performance specifications
designed to meet customer needs

A project is a temporary endeavor with a defined beginning and end,

undertaken to meet unique goals and objectives, typically to bring
about beneficial change or added value.
Characteristics of a project
 Fixed set of objectives
 Project is not a continuous activity. Its life span is fixed.
 Unique: No two projects are exactly similar
 Has a life cycle
 Make to order: Projects are always made to order and follows
“PULL” system
 Require Multi-skilled staffs: Technical, Financial, Human skill,
negotiation skill etc
 Subcontracting is practically unavoidable in Project Management
 Risk is unavoidable
Project Management

 Project management is the discipline of planning, organizing, directing

and controlling resources to bring about the successful completion of
specific project goals and objectives.
 A project consists of interrelated activities which are to be executed in a
certain order before the entire task is completed.

Example
Construction of House
Construction of ship
Construction of bridge
Commissioning of factory
Commissioning of power plant
New product launching (TATA Nano)
Research to develop new technology etc
4
Project Life Cycle
Some Project Examples

Krispy Kreme:
Project: Network 320 stores to manage their Inventory and take orders.

BMW:
Project: Build cars to specific customer orders

NIKE:
Project: Online supply chain link to manufacturing partners

Toy Manufacturer:
Project: Move Product design and Licensing online
 Phases of Project Management

Project Management has four main phases:

1. Concept phase (Define)
2. Planning phase
3. Execution phase (Implementation)
4. Delivering phase (Termination)
Purpose of Planning phase
• Determine Project requirements
• Decide project cost and schedule
• Search for sources of all resources.

Planning phase has the following steps:

• Divide the project into distinct activities
• Estimate the time requirement for each activity
• Establish precedence relationship among activities
• Construct the arrow diagram (Network)
Project is represented in the form of a network for the purpose of
analytical treatment to get solutions for scheduling and
controlling its activities.

A network consists of a set of arcs which are connected

meaningfully through a set of nodes.

Predecessors - the Precedence Relationships among various

activities of a project can be conveniently represented using the
network.
Rules for network Construction
1. Starting event - called - Tail event
2. Ending event – called – Head event
3. Network should have unique starting node (tail event)
4. Network should have unique completion node (head event)
5. No activity should be represented by more than one arc in the network
6. No two activities should have the same starting node and ending node.

Tail / Head
Activity
1 event
Head
3 4 Event
Activity

Activity
2

Tail event
S.No Activity Immediate Duration
Predecessor (month)
1 A -- 1
2 B A 4
3 C A 2
4 D A 2
5 E D 3
6 F D 3
7 G E 2
8 H F, G 1
9 I C, H 3
10 J B 2
 3
J
B

A C I
1 2 7 8

D H
F
4 6

E G
5
Gannt chart

Activity Designation Predecessors Time

(weeks)
Design A --- 21

Building prototype B A 4

Evaluate equipments C A 7

Test prototype D B 2

Write equipment report E C, D 5

Write methods report F C, D 8

Write final report G E, F 2

A 21 25

B 4
28
7
C

D 2
25 27

E 5
28 33
36
F 8

G 2
36 38
Problem

Activity Predecessors Time (weeks)

A --- 6
B --- 7
C --- 8
D A 20
E A 18
F B 9
G B 8
H D, E 7
I C 2
J G, I 14
K F, H, J 10
Critical Path Method (CPM)
 Critical Path Method (CPM) is a mathematically based modeling
technique for scheduling a set of project activities, used in project
management.

 Critical path of a project network is the longest path in the network.

 There are two different approaches to identify the critical path.

1. Determine earliest start time (ES) of all nodes. (Forward pass)
2. Determine the latest completion times (LS) of various nodes. (Backward
pass)
D i, j Duration of activity

ES j - Earliest start time of all activities which are starting from

node j

LS j - Latest completion time of all activities which are ending at

node j 3
J(2)
B (4)

A (1) C (2) I (3)

1 2 7 8

D (2) H (1)
F (3)
4 6

E (3) G (2)
5
Determination of Earliest start time
ES j = max [ ES i + Di,j ]

Node 1: for node 1 ES1 = 0

Node 2: ES2 = [ES1 + D12] = 0+1 = 1

Node 3: ES3 =

Determination of Latest completion time

LC i = min [LC j – D i,j ]

LC
ES 5

3
J(2)
B (4)
0 12
9
A (1) C (2) I (3)
1 2 7 8

H (1)
1 D (2)
F (3)
4 6
8
3
E (3) G (2)
5

6
LC 10
ES 5

3
J(2)
0 B (4) 12
0 9 12
9
A (1) C (2) I (3)
1 2 7 8

1 H (1)
1 D (2)
F (3)
4 6 8
8
3
3
E (3) G (2)
5

6
6
Floats (Slacks)
Total Float : It is the amount of time that the completion time of an
activity can be delayed without affecting project completion time.

Total float = LC head – ES tail - D i,j

Free Float = ES head – ES tail - D i,j

Free float:

It is the amount of time that the activity completion time can be delayed without
affecting the earliest starting time of the immediate successor activities in the
network.

Interference Float = Total float - Free float

 An activity on critical path has "zero free float", but an activity
that has zero free float may not be on the critical path.

In project management, float or slack is the amount of time that a

task in a project network can be delayed without causing a delay
to:

1. Subsequent tasks (free float)

2. Project completion date (total float)
 A (3)

30
8 26
4

TF = 30- 4 – 3 = 23

FF = 26 – 4 – 3 = 19
Example:
For the given Network, Find critical path, Total Float and Free Float

D-20
dumm
y
H-7

2 5
A-6 E-18
K-10
B-7 F-9
1 3 8 9

C-8 G-8

4 6
I-2 J-14
 LC
26
ES
7 26
6
D-20
6
H-7

2 5 26
A- E-18 24
6
K-10
B-7 F-9
1 3 8 9 43
11
7 43
0 33
C-8 G-8
0 33
4 6
I-2 J-14
17 19 Total float = LC head – ES tail - D i,j
8 15
Free Float = ES head – ES tail - D i,j
Activity Total Float Free Float
A
B
C
D
E
F
G
H
I
J
K
Activity Total Float Free Float
A 0 0
B 4 0
C 9 0
D 0 0
E 2 0
F 17 17
G 4 0
H 0 0
I 9 5
J 4 4
K 0 0
Importance of Float (Slack) and Critical Path

1. Slack or Float shows how much allowance each

activity has. i.e how long it can be delayed without
affecting completion date of project

2. Critical path is a sequence of activities from start to

finish with zero slack. Critical activities are activities on
the critical path.

3. Critical path identifies the minimum time to complete

project

4. If any activity on the critical path is shortened or

extended, project time will be shortened or extended
accordingly