Basic Concepts

Project Management
Basic Concepts
1
Opermgt 345 Shannon January, 2001
What is a Project?
A Project is a series of activities and tasks

that:
1. Have a specific tasks and activities to be
completed with certain objectives.
2. Have a defined start and end dates
3. Have funding limits (if applicable)
4. Consume Resources
2
Typical Project Structure
Project
Definition
Project
Monitoring
Project
Planning
Project Project
Implementation Evaluation
Project
Adjustment 3
Resources and Effort Project Life Cycle
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Conceptual Advanced Detailed Project Project
Design Development Design Implementation Termination
•Goals •Plan •Define •Manage •Closeout

•Scope •Budget Responsibility •Measure •Document
•Baseline •Schedule •Team •Control •Suggest
•Requirements •Management •Organization •Update and Improvements
•Feasibility Commitment Structure Modify Plan •Reassign
•Desirability •Detailed Plan •Problem Solve •Dissolve Project
•Kickoff Team
4
Successful Projects
A successful project is one which achieves the

following objectives:
– Completed On Time
– Completed Within Cost
– Meets Performance Criteria
– Minimum Disruption of the Main Work of the
Organization
– Effective Utilization of Available Resources
5
The Triple Play of
Project Management
Time Cost
Constraints
Performance
6
Triple Constraint Trade-offs
$
Budget Better
Performance
Worse Specifications
Early Schedule Late TIME

7
Major causes of failure
 Selection of a unsound project

 Selecting the wrong person as a project
manager
 Lack of support from upper management
 Misused management techniques
 Project termination not planned
8
Project Definition
Build Canoe Rental Building on

Coeur d A’lene Lake
9
Form Project Team
•Select Project Leader
•Identify Key People (TEAM)
• Gain Management Commitment / Support

• Empowerment.
• Involvement
•Define Project Team Operating Rules
10
Project Manager
11
Project Manager Skills
• Scheduling and time mgt. skills
• Technical skills ( scope of project )
• Leadership skills ( goals, performance measures)
• Resource mgt., human relationship skills.
• Communication skills
• Negotiation skills
• Marketing, Contracting, customer relationship skills
• Budgeting and cost skills.
12
Major Interactions of project stakeholders
Top Management Government Consultants

agencies
Financial Managers Project Manager Client
Project Team Other Organization Subcontractors
13
Project Manager Responsibilities
1. Responsibility to the parent Org.
2. Responsibility to the project and client
3. Responsibility to the member of the
project team
14
Selecting Project Manager
List of some of the most popular attributes:
• A strong technical background

• A hard-nosed manager
• A matured individual
• Someone who is currently avaiable
• Someone on good terms with senior executive
• A person who can keep the project team happy
• One who has worked in several departments
• A person who can walk on ( or part ) the waters.
15
Selecting the PM
• Credibility
– Technical credibility ( technical knowledge )
– Administrative credibility ( managing resources( money, people,
material) keeping the project on scheule.
• Sensitivity
– It is related to the ability of the manager to discover the problems
at early stages and solve the team’s problems if we have some
conflects
• Leadership and management style
– Leadership is defined as the ability of affecting others in away
that gurantees the project profitability to the org. and sociey.
• Ability to work under stress
16
Project Planning
• There are several reasons why we must use

considerable care when planning projects
• The primary purpose of planning is to
establish a set of directions in sufficient
detail to tell the project team exactly :
– What must be done?
– When it must be done?
– What resources to use ?
17
Project plan Elements:
• Overview :
– A short summary of the objectives and scope of
the project
– Directed to top mgt. and contains a statement of
goals of the project
– A description of the managerial structure that
will be used for the project.
– A list of major milestones in the project schdule.
18
• Objectives:
– More detailed statement of general goals noted
on the overview section.
– The statement should include profit and
competitive aims as well as technical goals.
• General approach:
– Describes both the managerial ( style of mgt. )
and the technical approaches ( required
equipments, technology ) to the work.
19
• Contractual aspects: ( list for )
– All reporting requirements
– Customer-supplied resources.
– Advisory commitees
– Project review
– Cancellation procedures.
– Specific management agreements
– subcontracts
20
• Schedules:
– Various schedules.
– Lists all milestones events.
– All tasks, and their durations…..
• Resources:
– The budget
– Both capital and expense requirements are detailed
by task. ( Project budget )
– Cost monitoring and control procedures.
21
• Personnel :
– Expected personnel requirements
– Special skills needed
– Types of training needed
– Possible recruiting problems.
– Legal and political restrictions.
22
• Evaluation Methods:
– Every project should be evaluated against
standards and by methods established at the
project inception.
– This section include :
• A brief description of the procedure to be followed
in monitoring , collecting, storing, and evaluating
the history of the project.
23
• Potential problems:
– External and internal potential problems.
24
Work-Breakdown- Structure (WBS)
• It is a result family tree , subdivision of the

major tasks( hw, services , etc ) and the data
required to produce the final product , it
acts as a vehicle for breaking down the
work into smaller elements.
25
Work-Breakdown- Structure (WBS)
• We have 2 types of
WBS:
– Managerial level
– Technical level
Work Breakdown Structure.htm
26
Earned Value Analysis
• It is a continuous comparison between the
plan of the project data and the actual data.
Budgeted and Committed Cost:
Variance = Budgeted cost – committed cost
Variance (+ve ) = Unconsumed Cost
Variance ( -ve ) = Over spend activities
27
Cost and Schedule Variances
28
Cost and Schedule Variances
29
BCWS
Budgeted Cost of Work Schedule
A B C D E F G H I J
X1 X2 X3 X4 X5 X6 X7 X8 X9 X1
0
NOW
BCWS = X1 + X2 + X3 + X4 + X5 $
This is the sum of all the costs up to the specific activity that is
stated in budget plan.
30
BCWP
Budgeted Cost of Work Performed
A B C D E
100% 100% 100% 80% 50%
X1 X2 X3 X4 X5
BCWP = X1 + X2 + X3 + 0.8 X4 + 0.5 X5 $
This is the sum of all the costs up to the specific activity in
relation with its completion percentage.
31
ACWP
Actual Cost of Work Performed
ACWP = Actual cost of work done.
This is the total costs of the work done on reality provided by
project manager on the financial monitor.
32
33
• If BCWP > BCWS ( over spend )
• If BCWP < BCWS ( time is late -ve )
• If BCWP > BCWS
( +ve time is more than sufficient )
34
35
Forecasting
• It is the process of prediction of the future
events.
• Benefits of forecasting:
1. To estimate the cost of remaining parts
of a project ( forecasted value ).
2. To identify the source and places of
certain problems in the budget plan.
3. It is a tool for corrective actions.
36
Forecasting
Mathematical Expressions
• The Cost Performance Index ( CPI ):
CPI = BCWP / ACWP
• It gives a good indication whether the
project is performing financially well or
not.
• CPI > 1 : Good performance.
• CPI < 1 : Bad performance ( shortages
• Overspend ).
37
Forecasting
• The Schedule Performance Index ( SPI ):
SPI = BCWP / BCWS
• It is a good indicator for the project
timing.
• SPI > 1 : Good performance.
• SPI < 1 : Bad performance (Poor ).
38
Forecasting
• Budgeting Cost to Completion ( BCC ):
• The Amount of money needed to
completion.
• BCC = BAC – BCWP
• It is defined as the amount of money
required to complete a project where it is
partially completed ( remaining money ).
39
Forecasting
• Estimated Cost to Completion ( ECC ):
• Its more realistic value than budgeted.
• ECC = BCC / CPI
• It depends on CPI which is a by product of
the actual cost of work performed.
• Forecasted Cost to Completion ( FCC ):
• FCC = ACWP + ECC
40
41
Example
• The R&D department of a company has
been developing a new product line, the
project manager is concerned whether the
following provided data is exhibiting a
good project performance, calculate the
following and comment on the project
status to convince the project manager.
1. CPI,BCC, ECC, SPI, FCC.
42
Work Budgeted Cost Completion Actual % Complete
Package Time month Cost
B49 20000 1 23500 100%

B50 20000 2 20500 100%
B51 37000 3 23000 70%
B52 27000 4 27000 100%
B53 12000 5 4500 60%
B54 28000 6 18500 75%
B55 40000 7 ---- ----
184000
43
•
Solution
BCWS = 20000 + 20000 + 37000 + 27000 + 12000 + 28000
=
144000 $
• ACWP = 23500+20500+23000+27000+4500+18500 =
117000 $
• BCWP = 20000 + 20000 + ( 37000 x 0.7 ) + 27000 + ( 12000
x 0.6 ) + ( 28000 x 0.75 ) =
119900 $
CPI = BCWP / ACWP = 119900 / 117000 = 1.02
good performance.
44
• BAC = Budget at Completion = 184000
• BCC = BAC – BCWP = 184000 – 119900 =
64100$
• ECC = BCC / CPI = 64100/1.02 = 62843.14 $
• SPI = BCWP / BCWS = 119900 / 144000 =
0.832< 1 Poor performance according to
time.
• FCC = ACWP + ECC = 117000 + 62843.14
= 179843.14 $
45
Comments
• We do not have any financial problem i.e the
budgeted cost (money resources) is larger
than the forecasted values, we conclude that
the money is available , it is more than
sufficient as the indicators were positive, the
only problem we have is the time.
46
Comparing Projects
Project SPI CPI
A 0.78 (2) 0.68 (2)
B 0.96 (1) 0.98 (1)
C 0.46 (3) 0.51 (4)
D 0.46 (4) 0.64 (3)
47
Problem : Compare between the following projects
according to the time and cost consumed:
Project A Project B
WP budget actual %comp WP budget actual %comp
A 435 395 100% A 820 800 100%
B 320 409 90% B 750 920 90%
C 125 - C 1000 730 65%
d 570 - D 700 -- --
E 850 --- ---
48
Scheduling
• Scheduling : is the process of converting a project
action plan into an operating time table.
• Why scheduling ? To answer the following questions:
– If each activity goes according to plan , then when will the
project be completed?
– Which tasks are most critical to ensure the timely completion
of the project?
– Which tasks can be delayed , if necessary , without delaying
project completion and by how much?
– More specifically , at what times should each activity begin
and end?
– At any given time during the project, how much money
should have been spent?
– Is it worthwhile to incur extra costs to accelerate some of the
activities? If so, then which ones?
49
Network Techniques
• PERT
• CPM
• PERT/CPM is based on a diagram that
represents the entire project as a network of
arrows and nodes.
• Two most popular approaches are :
– AOA : activity on arrow ( PERT )
– AON : activity on node ( CPM )
50
Project Representation
• A network is a form of project
representation schemes that use arrows and
nodes to represent activities and their
relationships.
»A
1 5
» 3 days
51
Rules for constructing a network
1. Arrow represents the activity
2. Circles represents time event ( start, finish)
3. Any activity can be represented by one arrow only
4. All activities having no predecessor should start at
the same “start node” of the network.
5. All activities having no successors should finish in
one “finish node” in the network.
6. Two nodes can only represent one activity
52
Notes for constructing a network
53
Forward Path Calculation
• Early Start ( ES )
• Early Finish ( EF )
• The earliest possible start time of an
activity leaving a node equals the
maximum of the early finish time of all
activities entering that node
• EF = ES + duration
54
Backward Path Calculation
• Late Finish ( LF )
• Late Start ( LS )
• The latest possible finish time of an
activity entering a node equals the
minimum of the late start time of all
activities leaving that node
• LS = LF - duration
55
4 questions must be answered to
begin modeling process:
• What are the major project activities?
• What are the sequencing requirements or
constraints for these activities?
• Which activities can be conducted
simultaneously?
• What are the estimated time requirements
for each activity?
56
Estimating the duration of project
activities
• The length of each activity should be
approximately in the range 0.5% to 2% of
the length of the project.( 1 year -> between
a day and week)
• If the number of activities is very large
( above 250 ) then the project should be
divided into subprojects.
57
Two approaches are used for estimating the
length of an activity
• Deterministic approach
– Past data
– If not exist :
• Modular approach
• Benchmark job technique approach
• Parametric technique ( cause-effect analysis , reg. analysis )
• Stochastic approach
– Expected time estimation for an activity depends on:
– a: Optimistic time : which will be required if execution goes
extremely well
– m:most likely time, which will be required if execution is normal
– b: pessimistic time , which will be required if everything goes
badly.
– Et(A) = ( a + 4 m + b ) / 6
58
Difference Between PERT and CPM
• PERT used the arrow to represent an

activity and CPM used the node.
• PERT used three estimates ( Opti, Pess. and
Most likely ) of an activity’s required time,
whereas CPM used just a single, best-time
estimate.
59
The Top Level Project Tasks
Brainstorm
the
Major Tasks
C
B G
Establish
A
Work Flow
D E F
60
Define Top Level Tasks
Canoe Example
Site Preparation
Build Dock
Build Building
Finish and Ready for Business
61
Sequence Top Level Tasks
Build Dock
Site Preparation Finish
Build Building
62
Detailed
Sub-Tasks
Tasks
C
G
B
D E F
Develop Work Sequence

Detailed
Tasks
63
Brainstorm Sub-Tasks
Site Preparation Build Dock Build Building Finish
Dock Site Install Pilings Foundation Order Canoes
Frame
Landscape
Building Site Build Dock
Roof
Assemble
Power
Canoes
Siding Open for

Business
Paint
64
Work Breakdown Structure
Top Level Task
2nd Level 2nd Level 2nd Level 2nd Level

Task Task Task Task
3rd Level 3rd Level 3rd Level 3rd Level

Task Task Task Task
3rd Level 3rd Level 3rd Level 3rd Level 3rd Level
Task Task Task Task Task
65
Opermgt 345 Shannon January, 2001 Lower Level Tasks
Sequence Sub-Tasks
Task Description Immediate Predecessor
A Prepare Dock Site -
B Prepare Hut Site -
C Install Dock Pilings A
D Foundation for Hut B
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
J Order Canoes and Receive Canoes -
K Paint Hut H
L Assemble Canoes J
M Finish Landscaping L,I,K,E,G
N Open for Business M
66
Build Network Diagram
(PERT Chart)
(Activities on Arrows)
Task Predecessor
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
J Order Canoes and Receive Canes -
K Paint Hut H
L Assemble Canoes J
67
(PERT Chart)
A
1 3
Prep Dock
Site
Task Predecessor
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
K Paint Hut H
L Assemble Canoes J
68
(PERT Chart)
2
J o es
C an
r der
O
A
1 3
Prep Dock
Site
Task Predecessor
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
K Paint Hut H
L Assemble Canoes J
69
(PERT Chart)
2
J o es
C an
r der
O
A
1 3
Prep Dock
Site
B Task Predecessor
Prep te
Hut S

are

i

4 E Build Dock
F Frame Hut
C
D
D G Power to Hut D
H Side the Hut F
Hut I Roof the Hut F
Foundation 6 J Order Canoes and Receive Canes -
K Paint Hut H
L Assemble Canoes J
70
(PERT Chart)
2
J o es
C an
r der
O
A C E
1 3 5 9
Prep Dock Install Pilings Build Dock
Site
B Task Predecessor
Prep te
Hut S

are

i

4 E Build Dock
F Frame Hut
C
D
D G Power to Hut D
H Side the Hut F
K Paint Hut H
L Assemble Canoes J
71
(PERT Chart)
2
J o es
C an
r der
O
A C E
1 3 5 9
Site
B Task Predecessor
Prep te
Hut S
G H ut A Prepare Dock Site

B Prepare Hut Site
-
-
o
are
rT C Install Dock Pilings A

i
o we D Foundation for Hut B

4 P E Build Dock C
F Frame Hut D
D G Power to Hut D
H Side the Hut F
K Paint Hut H
L Assemble Canoes J
72
(PERT Chart)
2
Ass L
J
n oes e mb
a le C
de rC ano
Or es
A C E
1 3 5 9
Site
B Task Predecessor
Prep te
Hut S

B Prepare Hut Site
-
-
o
are

i
o we D Foundation for Hut B

4 P E Build Dock C
F Frame Hut D
D G Power to Hut D
H Side the Hut F
K Paint Hut H
L Assemble Canoes J
73
(PERT Chart)
2
Ass L
J
n oes e mb
a le C
de rC ano
Or es
A C E
1 3 5 9
Site
B Task Predecessor
Prep te
Hut S

B Prepare Hut Site
-
-
o
are

i
we D Foundation for Hut B
of
P o
4
Ro
E Build Dock C
D I F Frame Hut D
G Power to Hut D
H Side the Hut F
Hut F I Roof the Hut F
Foundation 6 7 J Order Canoes and Receive Canes -
Frame Hut K Paint Hut H
L Assemble Canoes J
74
Task Predecessor
Build Network Diagram C Install Dock Pilings

D Foundation for Hut
E Build Dock
A
B
C
(PERT Chart) F Frame Hut

G Power to Hut
D
D
H Side the Hut F
I Roof the Hut F
2 K Paint Hut H
L Assemble Canoes J
Ass L
oes
J e mb
a n le C
de rC ano
Or es
A C E
1 3 5 9
Site
B
Prep te
Hut S
t
G o Hu
are
rT
i
we Paint
of
P o K
4
Ro
D I Hut
Hut F H
Foundation 6 7 8
Frame Hut Side Hut
75
Task Predecessor
Build Network A Prepare Dock Site

B Prepare Hut Site
C Install Dock Pilings
D Foundation for Hut
-
-
A
B
Diagram
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
(PERT Chart)
I Roof the Hut F
2 K Paint Hut H
L Assemble Canoes J
Ass L
oe s
J em
Can ble
r Ca
de noe
Or s
A C E M N
1 3 5 9 10 11
Prep Dock Install Pilings Build Dock Finish Open for
Site Landscape Business
B
Prep te
Hut S
G H ut
o
are
rT
i
we Paint
of
P o K
4
Ro
D I Hut
Hut F H
Foundation 6 7 8
Frame Hut Side Hut
76
Build Network Diagram Task Description Time
(PERT Chart) Canoe Example A Prepare Dock Site

B Prepare Hut Site
3d
4d
C Install Dock Pilings 6d
Add Times D Foundation for Hut
E Build Dock
3d
4d
F Frame Hut 3d
G Power to Hut 2d
2 H Side the Hut
I Roof the Hut
2d
3d
J Order Canoes 2d
Ass L (10) K Paint Hut 4d
J (2)
n oes e mb L Assemble Canoes 10 d
a le C M Finish Landscaping 4d
de rC ano NOpen for Business 2d
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
77
Build Network
Task Predecessor
Diagram D Foundation for Hut

E Build Dock
F Frame Hut
G Power to Hut
B
C
D
D
(PERT Chart)
H Side the Hut F
I Roof the Hut F
2 K Paint Hut H
L Assemble Canoes J
Ass L
oe s
J em
Can ble
r Ca
de noe
Or s
A C E M N
1 3 5 9 10 11
B
Prep te
Hut S
G H ut
o
are
rT
i
we Paint
of
P o K
4
Ro
D I Hut
Hut F H
Foundation 6 7 8
Frame Hut Side Hut
78
Build Network Diagram Task Description Time
(PERT Chart) Canoe Example A Prepare Dock Site

B Prepare Hut Site
3d
4d
C Install Dock Pilings 6d
Add Times D Foundation for Hut
E Build Dock
3d
4d
F Frame Hut 3d
G Power to Hut 2d
2 H Side the Hut
I Roof the Hut
2d
3d
J Order Canoes 2d
Ass L (10) K Paint Hut 4d
J (2)
n oes e mb L Assemble Canoes 10 d
a le C M Finish Landscaping 4d
de rC ano NOpen for Business 2d
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
79
Determining Project Length
Option 1: Sum all the task durations:

A Prepare Dock Site - 3d
B Prepare Hut Site - 4d
C Install Dock Pilings A 6d
D Foundation for Hut B 3d
E Build Dock C 4d
F Frame Hut D 3d
G Power to Hut D 2d
H Side the Hut F 2d
I Roof the Hut F 3d
J Order Canoes and Receive Canoes - 2d
K Paint Hut H 4d
L Assemble Canoes J 10 d
M Finish Landscaping L,I,K,E,G 4d
N Open for Business M 2d
Sum = 52 days
Anything wrong with this approach?
80
Determining Project Length
Option 2: Determine duration of each network path
81
Paths:
Network Diagram
A-C-E-M-N = 19 days
Project Paths
2
Ass L (10)
J (2)
n oes e mb
a le C
de rC ano
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
82
Paths:
Network Diagram
A-C-E-M-N = 19 days
B-D-F-H-K-M-N = 22 days Project Paths
2
Ass L (10)
J (2)
n oes e mb
a le C
de rC ano
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
83
Paths:
Network Diagram
A-C-E-M-N
B-D-F-H-K-M-N
= 19 days
= 22 days Project Paths
B-D-F-I-M-N = 18 days
2
Ass L (10)
J (2)
n oes e mb
a le C
de rC ano
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
84
Paths:
Network Diagram
A-C-E-M-N
B-D-F-H-K-M-N
= 19 days
B-D-F-J-M-N = 18 days
B-D-G-M-N = 15 days
2
Ass L (10)
J (2)
n oes e mb
a le C
de rC ano
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
85
Paths:
Network Diagram
A-C-E-M-N
B-D-F-H-K-M-N
= 19 days
B-D-G-M-N = 15 days
J-L-M-N = 18 days 2
Ass L (10)
J (2)
n oes e mb
a le C
de rC ano
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
J (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
86
Critical Path
The Critical Path is the Longest Path

Through the Network.
87
Paths:
Network Diagram Canoe Example
A-C-E-M-N = 19 days
B-D-F-H-K-M-N = 22 days
Critical Path
B-D-G-M-N = 15 days
J-L-M-N = 18 days
2
Ass L (10)
J (2)
n oes e mb
a le C
de rC ano
Or es
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
t
G (2) o Hu
are
rT
i
we Paint
of
P o
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
88
Completed
Task Timetable
Task Description Immediate Predecessor Time ES LS EF LF
A Prepare Dock Site - 3d 0 3 3 6

B Prepare Hut Site - 4d 0 0 4 4
C Install Dock Pilings A 6d 3 6 9 12
D Foundation for Hut B 3d 4 4 7 7
E Build Dock C 4d 9 12 13 16
F Frame Hut D 3d 7 7 10 10
G Power to Hut D 2d 7 14 9 16
H Side the Hut F 2d 10 10 12 12
I Roof the Hut F 3d 10 13 13 16
J Order Canoes and Receive Canoes - 2d 0 4 2 6
K Paint Hut H 4d 12 12 16 16
L Assemble Canoes J 10 d 2 6 12 16
M Finish Landscaping L,I,K,E,G 4d 16 16 20 20
N Open for Business M 2d 20 20 22 22
89
Slack Time
Total Slack = The length of time an activity can be

delayed without affecting the project
completion time.
Total Slack = Late Start - Early Start

For Critical
Activities
Total Slack = Late Finish - Early Finish
Free Slack = The time a task can be delayed without

delaying another task. 90
Slack Time
Task Description Immediate Predecessor Time ES LS EF LF Slack
A Prepare Dock Site - 3d 0 3 3 6 3

B Prepare Hut Site - 4d 0 0 4 4 0
C Install Dock Pilings A 6d 3 6 9 12 3
D Foundation for Hut B 3d 4 4 7 7 0
E Build Dock C 4d 9 12 13 16 3
F Frame Hut D 3d 7 7 10 10 0
G Power to Hut D 2d 7 14 9 16 7
H Side the Hut F 2d 10 10 12 12 0
I Roof the Hut F 3d 10 13 13 16 3
J Order Canoes and Receive Canoes - 2d 0 4 2 6 4
K Paint Hut H 4d 12 12 16 16 0
L Assemble Canoes J 10 d 2 6 12 16 4
M Finish Landscaping L,I,K,E,G 4d 16 16 20 20 0
N Open for Business M 2d 20 20 22 22 0
91
Critical Path Tasks
Critical Path = All tasks with slack = zero
92
Critical Path Tasks
Task Description Immediate Predecessor Time ES LS EF LF Slack
A Prepare Dock Site - 3d 0 3 3 6 3

B Prepare Hut Site - 4d 0 0 4 4 0 ***
C Install Dock Pilings A 6d 3 6 9 12 3
D Foundation for Hut B 3d 4 4 7 7 0 ***
E Build Dock C 4d 9 12 13 16 3
F Frame Hut D 3d 7 7 10 10 0 ***
G Power to Hut D 2d 7 14 9 16 7
H Side the Hut F 2d 10 10 12 12 0 ***
I Roof the Hut F 3d 10 13 13 16 3
J Order Canoes and Receive Canoes - 2d 0 4 2 6 4
K Paint Hut H 4d 12 12 16 16 0 ***
L Assemble Canoes J 10 d 2 6 12 16
M Finish Landscaping L,I,K,E,G 4d 16 16 20 20 0 ***
N Open for Business M 2d 20 20 22 22 0 ***
Critical Path = B - D - F - H - K - M - N
93
CPM ( A-O-N) : Example
CPM network for computer Design Project:
Activity Designation Pred. Dura

Design A - 21
Build prototype B A 4
Evaluate equipment 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
94
C F
7 8
A
G
21
2
B D E
4 2 5
95
Determine the Critical path
• Forward pass:
– ES : the earliest possible time the activity can
begin.
– EF : the early start time the time needed to
complete the activity. ( EF = ES + Dur )
Backwards pass
96

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Project Management

A Project is a series of activities and tasks

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

•Goals •Plan •Define •Manage •Closeout

A successful project is one which achieves the

Early Schedule Late TIME

 Selection of a unsound project

Build Canoe Rental Building on

• Gain Management Commitment / Support

•Define Project Team Operating Rules

Top Management Government Consultants

Financial Managers Project Manager Client

Project Team Other Organization Subcontractors

• A strong technical background

• There are several reasons why we must use

• It is a result family tree , subdivision of the

Work Breakdown Structure.htm

B49 20000 1 23500 100%

A 435 395 100% A 820 800 100%

B 320 409 90% B 750 920 90%

C 125 - C 1000 730 65%

E 850 --- ---

• PERT used the arrow to represent an

Finish and Ready for Business

Site Preparation Finish

Develop Work Sequence

Dock Site Install Pilings Foundation Order Canoes

Siding Open for

Top Level Task

2nd Level 2nd Level 2nd Level 2nd Level

3rd Level 3rd Level 3rd Level 3rd Level

A Prepare Dock Site -

C Install Dock Pilings A

D Foundation for Hut B

A Prepare Dock Site -

C Install Dock Pilings A

D Foundation for Hut B

G H ut A Prepare Dock Site

rT C Install Dock Pilings A

o we D Foundation for Hut B

G H ut A Prepare Dock Site

rT C Install Dock Pilings A

o we D Foundation for Hut B

G H ut A Prepare Dock Site

rT C Install Dock Pilings A

we D Foundation for Hut B

Build Network Diagram C Install Dock Pilings

(PERT Chart) F Frame Hut

Build Network A Prepare Dock Site

(PERT Chart) Canoe Example A Prepare Dock Site

Diagram D Foundation for Hut

(PERT Chart) Canoe Example A Prepare Dock Site

Option 1: Sum all the task durations:

Option 2: Determine duration of each network path

The Critical Path is the Longest Path

A Prepare Dock Site - 3d 0 3 3 6

Total Slack = The length of time an activity can be