CH 5 2

Project Planning and Control
5/14/2019 By: Gebrewold T.(M.Sc.)

WBS - Purpose
To plan a project, the total scope of work must be:
 identified
 subdivided into manageable segments
 assigned to individuals responsible to do the
work
 documented

Work Breakdown Structure (WBS)
 It is a methodology for converting a large-

scale project into detailed schedules for its
thousands of activities for planning,
scheduling, and control purpose
 The objective of developing a WBS is to
study the elemental components of a project
in detail

Using a WBS, a large project may be broken
down into smaller subprojects which may, in
turn, be further subdivided into another,
lower level of more detailed sub component
activities, and so on.
Eventually, all the tasks for every activity are
identified, commonalities are discovered, and
unnecessary duplication can be eliminated.
Thus by applying the WBS approach, the
overall project planning and control can be
improved.
 Individual components in a WBS are referred
to as WBS elements and the hierarchy of
each is designated by a level identifier.
 Elements at the same level of subdivision are
said to be the same WBS level.
 Descending levels provide increasingly
detailed definition of project tasks. The
complexity of project and the degree of
control desired determine the number of
levels in the WBS.
 Each WBS component is successively broken
down into smaller
5/14/2019
details at lower levels.
By: Gebrewold T.(M.Sc.)
 Level 1: This level contains only the final
project purpose. This item should be
identifiable directly as an organizational
budget item.
 Level 2: This contains the major
subcomponents of the project. This
subdivision is usually identified by their
contiguous location or by their related
purposes.
 Level 3: Contains definable components of
the level 2 subdivisions.
Project Breakdown Structure


Work Breakdown Structure for Computer

Order Processing System Project
Project Organization
 Like any organization, projects can be

managed and controlled by using different
type of organizational structure.
 Before selecting an organizational structure,
the project team should assess the nature of
the job to be performed and its
requirements.

The structure may be defined in terms of
functional specializations, departmental
proximity, standard management boundaries,
operational relationships, or product
requirements
Large and complex projects should be based
on well-designed structures that permit
effective information and decision processes.

Bar Charts or Milestone Charts
 The history of project planning techniques

can be accurately traced back to World War
I when an American, Henry Gantt, designed
the barchart as a visual aid for planning and
controlling his projects.
 The beginning and the end of each bar
represent the time of start and the time of
finish of that activity

 Once the project has started the Gantt
chart can further be used as a tool for
project control.
 This is achieved by drawing a second line
under the planned schedule to indicate
activity progress.
 The relative position of the progress line to
planned line indicates percentage complete
and remaining duration, while the relative
position between the progress line and Time
now indicates actual progress against planned
progress.
Example of Gantt Chart
Month
0 | 2 | 4 | 6 | 8 | 10
Activity
Design house
and obtain
financing
Lay foundation
Order and
receive
materials
Build house
Select paint
Select carpet
Finish work
1 3 5 7 9
5/14/2019 Months
By: Gebrewold T.(M.Sc.)
Example
 Draw the bar chart for "finalization of

design and work orders" for a building
project.

Activity Description Time of
Completion
A Site selection and survey 4 weeks
B Design 6 weeks
C Preparation of drawings 3 weeks
D Preparation of specification
and tender document 2 weeks
E Tendering 4 weeks
F Selection of contractor 1 week
G Award of work order 1 week

Bar chart for a building Project

 The benefits of Gantt chart can be clearly
seen not only are the calculations simple but
it combines all the above information on one
page.

Network Scheduling
 The most common network scheduling

methods are Critical Path Method (CPM) and
Program Evaluation and Review Technique
(PERT).
 Two approaches may be used for the
assessment of duration for activity
completion.

 Both methods (CPM and PERT) are
extensively used as dynamic control tools in
the management of a large project.
 They give the project manager a
comprehensive picture of the project status
at any time.

Network Diagram
 For a project plan to be effective it must
equally address the parameters of activity
time and network logic.
 As project becomes larger and more

complex, the Gantt chart was found to be
lacking as a planning and control tool,
because it could not indicate the logical
relationships between activities.
In the 1950’s feedback from industry and
commerce indicated that project cost and
time overruns were all too common.
With these shortcomings in mind, network
planning techniques were developed.

 In network modeling of projects, the arrow
diagram is of primary importance. Some of the
advantages of network diagram or arrow
diagram are:
 It clearly shows the inter-relationship between
events.
 The project is seen as integrated whole, thus
making it easier for control.
 It can be used even for highly complicated
projects consisting of a large number of
activities.
 It directly indicates the time required in
5/14/2019 between two activities. By: Gebrewold T.(M.Sc.)
 Event : it is defined to be an instant in time.
In a project, an event, may mark the initiation
of an activity, the completion of an activity, or
the time after which an activity may be
initiated.
 Design completed, pipe line laid, electricity
installed, etc are examples of events. It is
o
represented by a circle ‘ ’ in a network which
is also known as a node or connector.

An event can be further classified into the
following categories:
Merge event: When more than one activity come
and join an event, such event is known as merge
event.
Burst event: When more than one activity leave
an event, such event is known as a burst event.
Merge and burst event: An activity may be a
merge and burst event at the same time as with
respect to some activities it can be a merge event
and with respect to some other activities it may
be a burst event.

Different types of event formation

 Activity: Any individual operation, which
utilizes resources and has a beginning and an
end.
 A project may be divided into activities that
are time consuming tasks or subprojects like:
assembly of parts, mixing of concrete,
preparing budget, etc.
 An arrow is commonly used to represent an
activity with its head indicating the direction
of progress in the project.
A
k
 Predecessor activity: Activities that must be
completed immediately prior to the start of
another activity.
 Successor activity: Activities that cannot be
started until one or more of other activities
are completed, but immediately succeed them
 Dummy activity: An activity which does not
consume any kind of resource but merely
depicts the technological dependence.

 It may be noted that the dummy activity is
inserted in the network to clarify the activity
pattern in the following two ways:
o To make the activities with common
starting and finishing points
distinguishable, and
o To identify and maintain the proper
precedence relationship between activities
that are not connected with arrows.

 For example, consider a situation where A
and B are concurrent activities, C is
dependent on A, and D is dependent on both
A and B .
 Such a situation can be handled by using a
dummy activity

Rules for Drawing Network Diagram
 In order to draw a network diagram, the
following general rules have to be
considered:
 Each activity is represented by one and
only one arrow in the network:
• This implies that no single activity can
be represented twice in the network.
• This is to be distinguished from the
case where one activity is broken into
segments.
 No two activities can be identified by the
same events: For example, activities a and b
have the same end events. The procedure is
to introduce a dummy activity either
between a and one of end events or
between b and one of the events.
• Modified representations after
introducing a dummy activity d is shown in
figure

• As a result of using the dummy, activities a
and b can now be identified by unique end
events.
• It must be noted that a dummy activity does
not consume any time or resource.

 Check the precedence relationship: In order
to ensure the correct precedence
relationship in the arrow diagram, the
following questions must be checked
whenever any activity is added to the
network.
• What activity must be completed immediately
before this activity can start?
• What activities must follow this activity?
• What activities must occur simultaneously with
this activity?
 Apart from this, a few important suggestions for
drawing good networks are:
• Try to avoid arrows which cross each other.
• Use straight arrows.
• Do not attempt to represent duration of activity
by arrow length.
• Use arrows from left to right (or right to left).
Avoid mixing two directions, vertical and standing
arrows may be used if necessary.
• Use dummies freely in rough draft but final
network should not have any redundant dummies.
• The network has only one entry point (start
event) and one point of emergence (end event).
Critical Path Method (CPM)
 The Critical Path Method (CPM) was
developed in 1957 by Remington Rand Univac
as a management tool to improve the planning
and control of a construction project.
 CPM was initially set-up to address the time
cost trade-off dilemma often presented to
project managers, where there is a complex
relationship between project time to
complete and cost to complete.
 CPM enables the planner to model the effect
various project time cycles have on direct
costs.
 Shortening the project duration will reduce
indirect costs, but may increase the direct
costs.
 This technique is often called Project
crashing or acceleration,

Time Estimate and Critical Path in
Network Analysis:
 Once the network of a project is
constructed, the time analysis of the
network becomes essential for planning
various activities of the project.
 An activity-time is a forecast of the time an
activity is expected to take from its starting
point to its completion under normal
conditions.

The main objective of the time analysis is to
prepare a planning schedule of the project, which
should include the following factors:
 Total completion time for the project.
 Earliest time when each activity can start.
 Latest time when each activity can be started
without delay of the total project.
 Float for each activity, i.e., the amount of time by
which the completion of an activity can be delayed
without delaying the total project completion.
 Identification of critical activities and critical
path.
The following notations are used for the basic
scheduling computation techniques:
(i, j ) = Activity (i, j) with tail event i and head event j.
TE or Ei = Earliest occurrence time of event i.
TL or L j = Latest allowable occurrence time of event j.
Dij = Estimated completion time of activity (i , j)
( E S ) ij = Earliest starting time of activity (i , j)
( E f ) ij = Earliest finish time of activity (i , j)
( LS ) ij = Latest starting time of activity (i , j)
( L f ) ij = Latest finish time of activity (i , j) By: Gebrewold T.(M.Sc.)

Thus the basic scheduling computation can be put under
the following two categories.
i) Forward Pass Computations: Before starting
computations, the occurrence time of initial
network event is fixed. Then, the forward pass
computation yields the earliest start and earliest
finish time for each activity (i, j), and indirectly the
earliest expected occurrence time for each event.
This is mainly done by using the following steps:

Step 1. The computations begin from the ‘start’ node and move
towards the ‘end’ node.
Step 2.
a) Earliest starting time of activity (i, j) is the earliest event time of
the tail end event i.e.,
( E S ) ij  Ei
b) Earliest finish time of activity (i, j) is the earliest starting time
plus the activity time. i.e.,
( E f ) ij  ( E S ) ij  Dij
or
( E f ) ij  Ei  Dij

c) Earliest event time for event j is the maximum of the earliest
finish times of all activities ending into that event. That is,
Ej  max.i[(Ef )ijfor all immediate predecessor of (i, j) ]or Ej  max.i[Ei  Dij]
The computed ‘E’ values are put over the respective circles
representing each event.

ii) Backward Pass Computations
 The latest event time, (L) indicates the time by
which all activities entering into that event must be
computed without delaying the computation of the
project.
 These can be computed by reversing the method of

calculation used for earliest event times. This is
done in the following steps:

Step 1. For ending event assume
EL
Remember that all E’s have been computed by forward pass
computations.
Step 2. Latest finish time of activity (i, j) is equal to the latest event
time of event j. i.e.,
( L f ) ij  L

Step 3. Latest starting time of activity (i , j) = the latest
completion time of activity (i , j) – the activity time, or
( LS ) ij  ( L f ) ij  Dij
or
( LS )ij  L j  Dij
Step 4. Latest event time for event I is the minimum of the latest
start time of all activities originating from the event, i.e.,
Li  min. j [(LS )ijfor all immediate successors of (i, j)]  min. j[(Lf )ij - Dij]  min. j[ L j  Dij ]

Determination of Float and Slack Times
 Total float: The amount of time by which the

completion of an activity could be delayed beyond the
earliest expected completion time without affecting
the overall project duration time.
 Mathematically, the total float of an activity (i , j) is

the difference between the latest start time and the
earliest start time of that activity. Hence the total
float for an activity (i , j), denoted by
(T f ) ij  ( Latest start  Earliest start)
5/14/2019 (T f ) ij  ( LS ) ij  ( E S ) ij By: Gebrewold T.(M.Sc.)
 Event slacks: For any given event, the event
slack is defined as the difference between
the latest event and earliest event times.
Mathematically, for a given activity (i, j),
Head event slack  L j  E j
Tail event slack  Li  Ei

Determination of the Critical Path
i. Critical event: Since the slack of an event is the
difference between the latest and earliest event
times. i.e.,
Slack (i)  Li  Ei
the events with zero slack times are called critical
events. In other words, the event i is said to be critical
if
Ei  Li
ii) Critical activity: Since the difference
between the latest start time and earliest
start time of an activity is usually called as
total float, the activities with zero total
float are known as critical activities.
In other words an activity is said to be
critical if a delay in its start will cause a
further delay in the completion date of the
entire project.

 Obviously, a non-critical activity is such that
the time between its earliest start and its
latest completion dates (as allowed by the
project) is longer than its actual duration. In
this case, non-critical activity is said to have
a slack or float time.

iii) Critical path: The sequence of critical
activities in a network is called the critical
path.
The critical path is the longest path in the
network from the starting event to ending
event and defines the minimum time required
to complete the project.
The length of the path is the sum of the
individual times of the activities lying on the
path.

 If the activities on a critical path are
delayed by a day, the project would also be
delayed by a day unless the times of the
future critical activities are reduced by a
day by different means.
 The critical path is denoted by double or

darker lines to make distinction from the
other non-critical paths.

 Thus the critical path has two features:
 If the project has to be shortened, then
some of the activities on that path must
also be shortened. The application of
additional resources on other activities will
not give the desired result unless that
critical path is shortened first.
 The variation in actual performance from
the expected activity duration time will be
completely reflected in one-to-one fashion
in the anticipated completion of the whole
5/14/2019 project. By: Gebrewold T.(M.Sc.)
Program Evaluation and Review
Techniques (PERT)
The US Navy set up a development team with
the Lockheed Aircraft Corporation, and a
management consultant Booz Allen &
Hamilton, to design PERT as an integrated
planning and control system to manage their
Polaris Submarine project.
The PERT technique was developed to apply a
statistical treatment to the possible range of
activity time durations
A three time probabilistic model was developed, this includes:
Optimistic time t0 limit of completion time if every thing goes all-right.

Pessimistic time t p limit of completion time if every thing goes all-
wrong (in case climatic conditions, explosions,
accidents, etc., come into effect to retard the
activity).
Most likely time t l the duration that would occur most often if
the activity was repeated many times under
the same conditions.

The three times were imposed on a normal
distribution to calculate the activity’s
expected time te as,
(t o  4t l  t p )
te 
6

Project Crashing
The crash time estimate is the shortest time

that could be achieved if all effort were made
to reduce the activity time. The use of more
workers, better equipment, overtime, etc,
would generate higher direct cost for
individual activities.

Step1. Identify the activities that need to
be crashed (where an activity has negative
float for instance). This can happen at any
time from the initial project planning phase to
project completion.
Step 2. Identify the critical path. To crash
non-critical activities is a waste of financial
resource because it will simply increase the
float on that activity without affecting the
end date of the project.

 Step 3. Prioritize the activities to be crashed. When
there are many activities which can be crashed, it is
necessary to know which activity will be crashed first?
This can be done by selecting the activity
• with the least cost per day to crash.
• that is the easiest to crash.
• which can be crashed soonest to bring the project

back on course.
• As project manager you do not want to approach the

end of the project with a number of activities
running behind schedule and the prospects of
further problems during commissioning By: Gebrewold T.(M.Sc.)
Step 4. Crash activities one day at a time,
then re- analyze the network to see if any
other activities have gone critical.
Continue this iterative process until there are

no activities with negative float. These
crashing steps may vary with the different
types of projects.

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CH 5 2

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Project Planning and Control

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

 It is a methodology for converting a large-

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

Work Breakdown Structure for Computer

 Like any organization, projects can be

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

 The history of project planning techniques

5/14/2019 By: Gebrewold T.(M.Sc.)

 Draw the bar chart for "finalization of

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

 The most common network scheduling

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

 As project becomes larger and more

commerce indicated that project cost and

time overruns were all too common.

With these shortcomings in mind, network

planning techniques were developed.

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

(i, j ) = Activity (i, j) with tail event i and head event j.

TE or Ei = Earliest occurrence time of event i.

TL or L j = Latest allowable occurrence time of event j.

Dij = Estimated completion time of activity (i , j)

( E S ) ij = Earliest starting time of activity (i , j)

( E f ) ij = Earliest finish time of activity (i , j)

( LS ) ij = Latest starting time of activity (i , j)

( L f ) ij = Latest finish time of activity (i , j) By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

Ej  max.i[(Ef )ijfor all immediate predecessor of (i, j) ]or Ej  max.i[Ei  Dij]

5/14/2019 By: Gebrewold T.(M.Sc.)

 These can be computed by reversing the method of

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

 Total float: The amount of time by which the

 Mathematically, the total float of an activity (i , j) is

Head event slack  L j  E j

Tail event slack  Li  Ei

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

5/14/2019 By: Gebrewold T.(M.Sc.)

 The critical path is denoted by double or

5/14/2019 By: Gebrewold T.(M.Sc.)