PROJECT MANAGEMENT
The size, length, and scope of projects vary
Learning Objectives: At the end of this topic, the project. Nevertheless, all projects have something in
students should be able to –
1. Define projects.
2. Describe the project manager’s responsibilities.
3. Discuss the project life cycle.
4. Plan and schedule simple projects using Gannt
Chart.
5. Plan projects using PERT-CPM.
Definition: Projects
 Unique, one-time operations designed to
accomplish a specific set of objectives in a
limited time frame.
Examples of Projects
 Constructing a shopping complex
 Installing a new computer system
 Launching a space shuttle
 Making a movie
 Designing and running a political campaign
 Designing new products or services
 Designing databases
 Designing web pages
The Project Manager
The project manager bears the ultimate
responsibility for the success or failure of a project.
The project manager is a person who is capable of
working through others to accomplish the objectives
of the project. Once the project is underway, the
project manager is responsible for effectively
managing each of the following:
1. The work – so that all of the necessary activities
are accomplished in the desired sequence.
2. The human resources – so that those working
on the project have direction and motivation.
3. Communications – so that everybody has the
information they need to do their work.
4. Quality – so that the project specifications set
by the customer/client are met.
5. Time – so that the project is completed on time.
6. Costs – so that the project is completed within
budget.
The Project Life Cycle
widely according to the nature and purpose of the
common. They go through a life cycle, which
typically consists of five phases:
1. Concept – at which point the organization
recognizes the need for a project or
responds to a request for a proposal from a
customer or client.
2. Feasibility analysis –which examines the
expected costs, benefits, and risks of
undertaking the project.
3. Planning –which spells out the details of the
work and provides estimates of the needed
human resources, time, and cost.
4. Execution – during which the project itself is
done; this phase often accounts for the
majority of time and resources consumed by
a project.
5. Termination – during which closure is
achieved; can involve reassigning personnel,
and dealing with any leftover materials,
equipment (e.g., selling or transferring
equipment), and any other resources
associated with the project.
Major Phases in the Project Life Cycle
1. Planning and Scheduling
 Analyze and breakdown the project by
determining all the individual activities
that must be done to complete it.
 Determine the predecessor/s of each
activity; show the planned sequence of
these activities on a network diagram.
 Estimate the activity times – how long it
would take to perform each activity.
 Perform computations to identify the
critical path.
 Use this information to develop a more
economical and efficient schedule, if one
is indicated.
2. Implementation and Controlling
 Use the plan and schedule to control and
monitor the project.
 Revise and update the schedule
throughout the execution of the project.
Planning and Scheduling with Gannt Charts
The Gannt Chart is a popular tool for planning and scheduling simple projects. It enables a manager to
initially schedule project activities and then monitor progress over time by comparing planned progress to
actual progress.

 Steps in Preparing a Gannt Chart

1. Identify the major activities that need to be performed.
2. Estimate the time required to finish each activity.
3. Determine the sequence of activities

ILLUSTRATION. A bank’s plan to establish a new direct marketing department.

Activity Description Activity Activity Time, weeks Predecessors

–
Locate new facilities A 8 –
Interview prospective staff B 4 B
Hire and train staff C 9 A
Select and order furniture D 6 A
Remodel and install phones E 11 D
Receive and set up furniture F 3 C, E, F
Move in/startup G 1

Weeks after start

Start 2 4 6 8 10 12 14 16 18 20

Locate new facilities A

Interview prospective staff B

Hire and train staff C B

Select and order furniture A

D
A
Remodel & install phones E
D
Receive & set up furniture F
C, E, F
Move in/startup G
PERT AND CPM

PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are two
of the widely used techniques for planning and coordinating large-scale projects. By using PERT or CPM,
managers are able to obtain:
1. A graphical display of project activities – network or precedence diagram.
2. An estimate of how long the project will take – earliest project completion time.
3. An indication of which activities are the most critical to timely project completion – critical activities.
4. An indication of how long any activity can be delayed without delaying the project – slack .

PERT Terminology
 Event – a performance milestone representing the start or end of some activity.
Example: Submitting your test paper after an exam

 Activity – time-consuming task that begins and ends with an event.

Examples: Studying for an exam; Taking the exam
 Time – weighted estimated times of completion of PERT activities.
 Optimistic Time – the time an activity could be finished under the best of conditions.
 Most Likely Time – the time an activity could be finished under normal conditions.
 Pessimistic Time – the time an activity could be finished under the worst of conditions.

 Critical Path – the most time-consuming chain of activities and events in a PERT network.
 The critical path is significant because
a) the time required to finish this path would be equivalent to the earliest time required to
complete the project;
b) it is the path that contains the critical activities; i.e., if any of the activities along this path is
delayed, the entire project is delayed accordingly; and
c) if we are to speed up the completion of the project, we need to speed up the completion of the
activities along this path – the critical activities.

PERT

PERT Given the activities of a project, their

predecessors, and their optimistic (to), most
Given the activities of a project, their probable (tm), and pessimistic (tp) time
predecessors, and their optimistic (a), most estimates shown below:
probable (m), and pessimistic (b) time
estimates shown below: 1. Calculate the expected time to finish each
activity.
1. Calculate the expected time to finish each 2. List the paths.
activity. 3. Determine the critical path.
2. List the paths. 4. What’s the earliest expected time to finish
3. Determine the critical path. the project?
4. What’s the earliest expected time to finish 5. Which activities should not be delayed?
the project? 6. Which activities can be delayed?
5. Which activities should not be delayed? 7. How long can each of the activities be
6. Which activities can be delayed? delayed without delaying the whole project?
7. How long can each of the activities be
delayed without delaying the whole project? Activity Predecessor/s to tm tp

Activity Predecessor/s a m b A - 1 4 13
B A 4 7 16
A - 1 2 3 C A 2 2 2
B - 2 3 4 D C 4 6 14
C A 1 2 3 E - 1 3 5
D B 2 4 6 F E 3 5 13
E C 1 4 7 G - 7 10 13
F C 1 2 9 H G 6 7 14
G D, E 3 4 11 I B, D 1 1 1
H F, G 1 2 3 J F, I, H 13 16 25