ISE

Industrial and Systems

Engineering, IIT
Kharagpur

Project Management
By
Satchidananda Tripathy

Industrial and Systems Engineering Department

Indian Institute of Technology, Kharagpur 1
Introduction ISE
Industrial and Systems
Engineering, IIT
Kharagpur

Thursday, May 23, 2024 2

 ISE
Industrial and Systems
Engineering, IIT
Kharagpur

Management:
Management is the technique of understanding the problems,
needs and controlling the use of Resources, Cost, Scope and Quality.

Project Management:
Application of knowledge, skill, tools and technique to project
activities in order to meet stakeholder need and expectation from a
project. Simply say a team based approach for managing projects.

Needs: started part of the project

Expectation: unstated part of the project

“ Completion of Project on time within budget without comprising

Quality”
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 ISE
Industrial and Systems
Engineering, IIT
Kharagpur

Project:
Converting a vision, a dream or a need to reality.
It is a unique ,one time operation designed to accomplish a specific set of objectives in
a limited time frame
Key matrices in project management:
 A job that has a beginning and on end (Time)
 A specific outcome(Scope)
 At a stated level of Performance (Quality)
 At a budget (Cost)

Project Characteristics:
 Temporary: Has definite Start and Finish
 Unique: Product/Service is different in some distinguishing
way

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Why do organization use PM?
Industrial and Systems
Engineering, IIT
Kharagpur

 To handle projects effectively in an organization.

 To define the project and agree with the customer.
 To plan and assess resource needs for the project.
 To estimate project cost and make proposals.
 To plan and schedule activities I a project.
 To allocate the right resource at right time.
 To access risk and failure point and make backup plans.
 To lead a project team effectively and communicate well.

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Key decision in project Management ISE
Industrial and Systems
Engineering, IIT
Kharagpur

1. Deciding which projects to implement.

2. Selecting the project manager
3. Selecting the project team.
4. Planning and designing the project
5. Managing and controlling project resources.
6. Deciding if and when a project should be terminated
Project life cycle:

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Main Tools in Project Management Industrial and Systems
Engineering, IIT
Kharagpur

1. Work breakdown structure: An initial planning tool that is needed to develop a list
of activities, activity sequences, and a realistic budget.
2. Network diagram: A “big picture” visual aid that is used to estimate project
duration, identify activities that are critical for timely project completion, identify
areas where slack time exist, and develop activities schedules.
3. Gantt charts: A visual aid used to plan and monitor individual activities.
4. Risk management: Analysis of potential failure or problems, assessment of their
likelihood and consequences and contingency.

Source: EM-DAT (2019)

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 ISE
Industrial and Systems

Schematic of work breakdown structure Engineering, IIT

Kharagpur

Project

A B C

A1 A2 B1 B2 C1 C2

C11 C21

C12 C22

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Terminology used in network diagram Industrial and Systems
Engineering, IIT
Kharagpur

Network (precedence) diagram: Diagram of project activities that shows sequential

relationship by use of arrows and nodes.
Activities: Project steps consume resources and/or time.
Dummy Activity: Often have zero completion time and are used to represent
precedence relationships that cannot be represented using the actual activities involved
in the project.
Event: The starting and finishing of activities, designed by nodes in the AOA convention.
Critical path: The longest path, determines expected project duration.
Critical activities: Activities on critical path.
Slack: Allowable slippage for the path; the difference between the length of path and
the length of the critical path.

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Industrial and Systems

Network Diagram Engineering, IIT

Kharagpur

There are two slightly different conventions for constructing the network diagrams:
Activity-on-arrow (AOA): Network diagram convention in which arrows designate
activities.
Activity-on-node ( AON): Network diagram convention in which node designate
activities.

A
1 2 A B

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 ISE
Industrial and Systems

Network Analysis with PERT, CPM

Engineering, IIT
Kharagpur

PERT and CPM are two of the most widely used technique for
planning and coordinating large- scale projects.

PERT: Program evaluation and review technique. PERT is primarily

concerned with project time. It enables the project manager to
schedule and coordinate the various activities so that project can
be completed on scheduled time.

CPM: Critical path method. The longest path through the network
is called the critical path and its length determines the minimum
duration in which project cen be completion

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Industrial and Systems

Distinction Between CPM and PERT

Engineering, IIT
Kharagpur

Basis of distinction CPM PERT

Orientation Activity oriented Event Oriented

Nature of model Deterministic model Probabilistic model

Emphasis CPM places dual Pert is primarily

emphasis on time and concerned with project
cost. Project duration time.
can be manipulated
within certain limits

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Industrial and Systems

Distinction Between CPM and PERT

Engineering, IIT
Kharagpur

Activities
Start Finish

Blending drying finishing

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Industrial and Systems

Problem on CPM Engineering, IIT

Kharagpur

Consider the following data related to bank network:

Activity Precedence Activity Times (in Weeks)

a. Locate - 8

b. interview - 4

c. Order furniture a 6

d. Remodel a 11

e. Hire and Train b 9

f. Set up c 3

g. Move in d ,e, f 1

Determine
a. The length of each path
b. The critical path
c. The expected length of the project
d. The amount of slack time for each path
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Industrial and Systems

Precedence Diagram Engineering, IIT

Kharagpur

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 ISE
Industrial and Systems

Precedence Diagram/Network diagram Engineering, IIT

Kharagpur

8 14

0 8 10 16

0 8 6 3
c
8 1 14 17
a 3 16 19
d f
Start 8 19 11 g
8 19 4 Finish
4 1
b 9
19 20
0 4 e
2 4 13
19 20
EST EFT 6 10
10 19
LST LFT

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 ISE
Industrial and Systems
Engineering, IIT
Kharagpur

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 ISE
Industrial and Systems

Float calculation Engineering, IIT

Kharagpur

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 ISE
Industrial and Systems
Engineering, IIT
Kharagpur

Thank You!

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