Project Management

Dr. Md. Jahir Bin Alam

Professor, CEE Department, SUST
 Project and Project Management
Project---A project is a sequence of unique, complex
and connected activities having one goal and that
must be completed by specific time within budget
and according to specification.
Project Management is the process of scoping,
planning, staffing, organizing, directing and
controlling the development of an acceptable system
at a minumum cost within a specific time frame.
Project Management provides necessary skills for a
new project manager and reinforces the basis while
providing new, exciting ideas to the experienced
project manager.

Laws of project Management:

(a) Projects progress quickly until they are 90% complte.
(b) When things are going well, somethings will go wrong, when
things just can‘t get wrose, they will, when things appear to
be going better, you have overlooked somethings.
(c) If project content is allowed to change freely, the rate of
change will exceed the rate of progress.
Characteristics of a project:
Objective- should have a fixed set of objectives.
Life span- have a specified life span.
Life cycle- have a definite life cycle- growth, maturity, decay.
Single entity- own identity.
Uniqueness- a definite uniqueness.
Unity in diversity- thousands of diversity (set of works) - complex
Successive principles- a set of successive works.
Made to order- according to customer.
High level of sub-contracting.
Risk & uncertainty.
The Core of Project Management
Project management triangle
Construction project management in a corporate environment
 Aim of project Management
(a) Completion to budget
(b) Satifying the project schedule
(c) A adequate quality standard
(d) Meeting the project goal
Project Cycle
The function-process-time relationship in project management (2003)
Scope of project Management
Project Functions, elements and cycle
 Function of Manager
• Planning: This step involves mapping out exactly how to achieve a
particular goal. Say, for example, that the organization's goal is to improve
company sales. The manager first needs to decide which steps are
necessary to accomplish that goal. These steps may include increasing
advertising, inventory, and sales staff. These necessary steps are developed
into a plan. When the plan is in place, the manager can follow it to
accomplish the goal of improving company sales.
• Organizing: After a plan is in place, a manager needs to organize her team
and materials according to her plan. Assigning work and granting authority
are two important elements of organizing.
• Staffing: After a manager discerns his area's needs, he may decide to beef
up his staffing by recruiting, selecting, training, and developing employees.
A manager in a large organization often works with the company's human
resources department to accomplish this goal.
• Leading: A manager needs to do more than just plan, organize, and staff
her team to achieve a goal. She must also lead. Leading involves
motivating, communicating, guiding, and encouraging. It requires the
manager to coach, assist, and problem solve with employees.
• Controlling: After the other elements are in place, a manager's job is not
finished. He needs to continuously check results against goals and take any
corrective actions necessary to make sure that his area's plans remain on
track.
 Skills requirement for a manager

• Leadership — ability to influence others to perform tasks

• Self-objectivity — ability to evaluate yourself realistically
• Analytic thinking — ability to interpret and explain
patterns in information
• Behavioral flexibility — ability to modify personal behavior
to react objectively rather than subjectively to accomplish
organizational goals
• Oral communication — ability to express ideas clearly in
words
• Written communication — ability to express ideas clearly
in writing
• Personal impact — ability to create a good impression and
instill confidence
 Management Functions

• Controlling
• Directing
• Organizing
• Planning
• Staffing
 Basic Management Principle
• “Strategic planning must complement
strategic thinking and acting
• Strategic Planning –SWOT Analysis
• Strengths
• •Weaknesses
• •Opportunities
• •Threats
 Management Information System of
an organization
• Transaction Processing System
• Knowledge and Work Distribution System
• Management Information System
• Decision Distribution System—It help manager
make rapid decision, changeable decision and
not specified in advance
• Executive Level Decision
• Relationship Establishment among sections
Elements of Project management
process
Q: Why project fail?

A: There are many different cause of project failure are as follows:

Market and strategy failures.
Organizational& Planning failures.
Leadership & governance failures.
Underestimation & analysis failures.
Quality failures.
Risk Failures.
Skill, knowledge & competency failures.
Engagement, teamwork & communication failures.
 IRR
• IRR is compared to the market rate (rm)
IRR > rm means ok based on opportunity cost
 IRR < rm means not ok

Benefit/cost ration:

B/C > 1 ok
 Choosing a suitable discount rate
 The discount rate reflects the opportunity
cost for the organization that will receive the
cash flows.
 The analysis can be done with real or nominal
discount rates---
Real rate: dollar conversion rate
 Nominal rate: market rate or inflation rate

 The discount rate is not same as the interest rate obtained from bank.
 Higher risks will require a higher discount rate
Example:

Find out EST, LST, EFT, LFT

2
(1 2)
)
(1 0

(8
)
1 (1 0) (1 2)
(8) 5 7 8

4
)

(6)
(1 2

)
(6
(6)

3 (5) 6
Conversion from arrow to circle network

0 6 24 10

1-2 2-7
(10 ) (12)
16 10
36 36
2-5
(8)
7-8
12 12 5-7 (12) End
Start (10)
3-4 18 18 48 48
(6) 26 26
4-5
(8) Critical Path

5-6 6-7
1-3 (6)
(6)
(12)
24 18 30 24
0 0
3-6
(5)

25 12
Activity Duration EST EFT LST LFT TF FF
(LST-EST) (LFT-EFT)

1-2 10 0 10 6 166 0 6
1-3 12 0 12 0 12 0 0
3-4 6 12 18 12 18 0 0
2-5 8 10 18 16 24 6 6
4-5 8 18 26 18 26 0 0
5-6 6 18 24 24 30 6 6
3-6 5 12 17 25 30 13 13
6-7 6 24 30 30 36 6 6
5-7 10 26 36 26 36 0 0
2-7 12 10 22 24 36 26 14
7-8 12 36 36 36 48 12 0
 PERT
• PERT may be defined by -----
(i) A manager’s tool --- for defining a project and coordinating
various operation among it.
(ii) A direction --- what must be done to successful acoomplish
the objectives of the project
(iii) A profile --- that aids the decision –makers
(iv) A way --- for synchronizing various parts of a project
(v) A technique --- it presents statistical information regarding
uncertainties.
(vi) A method
(vii) A communication facilities
 A PROJECT PLANNING TECHNIQUE

PERT CHART
CRITICAL PATH :- (A+B+C+D+DUMMY+H) = 19 DAYS
PATH 1 IS CRITICAL PATH

14
5
14

D
EVENT ID NO. 0
2

TASK ID
ECT

0 A 3 7 13 19
14
B 5 c E H
0 2 3 4 6 8 9
2 2 6 14 5
0 3 3 5 7 14 19

LCT

Expected Time
Dummy TASk
3

10
7
14

CRITICAL PATH = (A + B + C + D + DUMMY TASK + H) G

(3 + 2 + 2 + 7 + 0 + 5 ) = 19 Person - day2
 Schedule Development

 Uses results of the other time management

processes to determine the start and end dates
of the project.

 Ultimate goal is to create a realistic project

schedule that provides a basis for monitoring
project progress for the time dimension of the
project.

 Important tools and techniques include Gantt

charts, critical path analysis, critical chain
scheduling, and PERT analysis.
Determining the Critical Path for Project X
PROJECT EVALUATION REVIEW TECHNIQUE, (PERT)
Optimistic time tO:
It is the shortest time taken to complete
the activity. It means that if everything
goes well then there is more chance of
completing the activity within this time.

Most likely time tm:

It is the normal time taken to complete
an activity, if the activity were
frequently repeated under the same
conditions.
Pessimistic time tp:
It is the longest time that an activity
would take to complete. It is the worst
time estimate that an activity would
take if unexpected problems are faced.
PERT weighted average =
optimistic time + 4X most likely time + pessimistic time
6
Example:
PERT weighted average =
8 workdays + 4 X 10 workdays + 24 workdays = 12 days
6
where:
optimistic time= 8 days
most likely time = 10 days
pessimistic time = 24 days
Therefore, you’d use 12 days on the network diagram instead
of 10 when using PERT for the above example.
• Taking all these time estimates into
consideration, the expected time of an activity
is arrived at.
 Exercise-1
• An R & D project has a list of tasks to be performed
whose time estimates are given in the Table, as
follows.

a. Draw the project network.

b. Find the critical path.
c. Find the probability that the project is completed in 19 days. If the
probability is less than 20%, find the probability of completing it in 24
days.
 Construct a network diagram:

From the network diagram, the critical path is identified as 1-4, 4-6, 6-7, with a
project duration of 22 days.
 • The probability of completing the project
within 19 days is given by, P (Z< Z0)
To find Z0 ,

we know, P (Z <Z Network Model 0) = 0.5 – z (1.3416) (from normal tables, z (1.3416) =
0.4099)
= 0.5 – 0.4099
= 0.0901
= 9.01%

Thus, the probability of completing the R & D project in 19 days is 9.01%.

• Since the probability of completing the project
in 19 days is less than 20% As in question, we
find the probability of completing it in 24
days.
Q. Explain the role of PERT in project controlling or
Explain the control of a project by adopting PERT.
 Project Selection

• Project selection is the process of evaluating

individual projects or groups of projects, and
then choosing to implement some of them so
that the objectives of the parent organization
will be achieved
• Managers often use decision-aiding models to
extract the relevant issues of a problem from
the details in which the problem is embedded
Criteria for project selection

 Realism: reality of manager’s decision

 Capability: able to simulate different alternatives and
optimize the decision.
 Flexibility: Have a range of result of each alternative
 Ease of use: reasonably convenient
 Cost: optimal solution
 Easy computerization
Criteria for Project Selection Models
Used for plotting the Used for plotting
Program S-curve the EVA S-curve
Work Work
Schedule Performed
(WS) (WP)

Budgeted Cost (BC) BCWS BCWP

Actual Cost (AC) ACWS ACWP

Used for plotting the

Progress S-curve
 $max

TIME VARIANCE
BCWS
ACWPt
RESOURCE FLOW VARIANCE
BCWSt COST VARIANCE
SCHEDULE VARIANCE
BCWPt

ACWP

BCWP

t-p t tmax Time

Scenarios for Permutations
Between ACWP, BCWP, and
BCWS (Singh, 1991).
Values of CPL, CV, and SPI, SV for the Six Scenarios
(Singh, 1991).
Example: A project was begun on 1st july 2017 and was
expected to be completed on 30th August , 2017 .The Budget
is Being received on 30th july 2017.When the following
information has been developed.
Budget cost for work schedule BCWS =$1500000/-
Budget cost for work performance BCWP =$1400000/-
Actual t cost for work schedule ACWS =$1600000/-
Total cost of project BCTW =$2500000/-
Additional cost of AOC =$1200000/-

Find out : CV,SV, CPI, SPI, ECPI.

Solution:
CV =BCWP-ACWS =$1400000-$1600000 =-$200000/-
CPI =$1400000/$1600000=.8075<1
SV =BCWP-BCWS =$1400000-$1500000 =-$100000
SPI =$1400000/$1500000 =0.933<1
ECPI =$2500000/($1600000+$1200000) =0.893

Comments: If the twice value is above 1 then the project will satisfactory and
continue ; if the twice value is below 0.8 the project will not satisfactory .our result is
above 0.8 so this project is not satisfactory but still continue.
 Resources for Project Control

• Money
• Machinery (Equipment)
• Materials and Supplies
• Manpower (Labor and Supervision)
 Elements of Project Control

Resources-related Project-related
 3A. Resource-related

• Manpower-related control

• Machinery-related control

• Money-related control

• Material-related control
 3A. Resource-related

 Options:

- Reduce project size?

- Reduce project scope?

- Terminate project?
 Planning
• The central research question that this paper
addresses is whether or not cyclone shelters
in Bangladesh are distributed as per the actual
needs
Steps in risk Analysis:

(i) Draw up process diagram of operations and examine the technical

relationships.
(ii) Find out the things go wrong at each point using fault tree analysis or event
tree analysis.
(iii) Find out corresponding consequences.
(iv)

Issues in risk assessment of a project

(i) How much risk should be accepted and how can it be measured, reduced and
mitigated?