Project Management

Activity
Consider a personal project that you
have been involved with in the last few
years, such as moving your residence or
buying a Vehicle. Describe the activities
related to that project that fit into each
of the four project phases.
 Project
A project is any endeavor which is unique in
•Scope: the endeavor will create a precisely
specified product consisting of deliverables and
services
•Schedule: there are clearly defined beginning
and end dates
•Budget: the budget for creating those
deliverables and services is limited.
 WHAT IS A PROJECT?
•“A project is a problem scheduled for
solution.” This definition forces us to
recognize that projects are aimed at
solving problems and that failure to define
the problem properly is what sometimes
gets us into trouble.
• What is a project?
• Any unique endeavor with specific objectives
• With multiple activities
• With defined precedent relationships
• With a specific time period for completion
• Examples?
• A major event like a wedding
• Any construction project
• Designing a political campaign
 What is the problem?
• A desired objective is not a problem by itself. The key
to a problem is that there is an obstacle that
prevents you from closing the gap.
• A problem is a gap(achieving your objective)
between where you are and where you want to be,
with an obstacle that prevents easy movement to
close the gap.
• Problem solving consists of finding ways of
overcoming or getting around obstacles.
 Project Life Cycle
• Conception: identify the need
• Feasibility analysis or study: costs benefits, and risks
• Planning: who, how long, what to do?
• Execution: doing the project
• Termination: ending the project
Project Management is the application of
Knowledge, Skills, Tools and Techniques to project
activities to meet project requirements.

Project management is accomplished through the

use of the processes such as −
Initiating
Planning
Executing
Monitor and Controlling
Closing
Why do we need Project Management?
Project management is needed to manage projects effectively
and drive them to success. Project Management starts with the
decision to start a project upon weighing its need and viability.
Once a project starts, it is crucial to watch the project progress at
every step so as to ensure it delivers what all is required, in the
stipulated time, within the allocated budget.
Other drivers influencing the need of project management are −
Exponential expansion of human knowledge
Global demand for goods and services
Global competition
Team is required to meet the demand with quality and standard.
Improved control over the project
Improved performance
Improved budget and quality
 STEPS IN MANAGING A PROJECT
•Define the problem
•Develop solution options
•Plan the project
•Execute the plan
•Monitor and control progress
•Close the project
 Define the problem
•What client need is being
satisfied by the project?
•It helps to visualize the desired
end result.
 Develop solution options
•How many different ways might you go
about solving the problem?
•Brainstorm solution alternatives (you can
do this alone or as a group).
•Is it more or less costly than other suitable
choices?
 Plan the project

•Planning is answering
questions—what must be
done, by whom, for how
much, how, when, and so
on.
 Execute the plan

•Once the plan is drafted, it must be

implemented. Interestingly, people
sometimes go to great effort to put
together a plan, then fail to follow it. If a
plan is not followed, there is not much
point in planning, is there?
 Monitor and control progress
• Unless progress is monitored, you cannot be sure
you will succeed. It would be like using a roadmap to
reach a destination.
• Control: What are you expected to do as a manager?
If a deviation from the plan is discovered, you must
ask what must be done to get back on track, or—if
that seems impossible—how the plan should be
modified to reflect new realities.
 Close the project
•The project is finished, but there is a final
step that should be taken.
•The point is to learn something from what
you just did.
•What was done well? What should be
improved? What else did we learn? We can
always improve on what we have done.
Case Studies
Consider a project that involves the
merger of computer systems of two
banks. The acquiring bank wants to
convert the other bank’s computer
system to its own software, and the
project is to convert all the client
account files. The software used by the
acquiring bank is relatively new, and
only about a third of the project team is
familiar with it.
A steel company in Indiana purchased a new coal
injection technology that would improve the quality of
steel, reduce the cost to produce the steel, and reduce
air and water pollution. The contract to design and
construct the new plant was awarded to an engineering
and construction company. No one on the engineering
and construction team had experience with the coal
injection technology.
The client’s team understood the technology and
provided guidance to both the project engineering and
construction teams. The client owned the coal injection
technology, and the engineering and construction team
brought the project management technology.
 Project Classification
There is no standard classification of the
projects. However considering project goals,
these can be classified into two broad
groups, Industrial and Developmental.
Each of these groups can be further
classified considering nature of work
(repetitive, non-repetitive), completion
time (long term, short term etc.), cost
(large, small, etc.), level of risk (high, low,
no-risk), mode of operation ( build, build-
operate-transfer etc.).
 A ) Industrial Projects
Industrial projects also referred as commercial
projects, which are undertaken to provide goods or
services for meeting the growing needs of the
customers and providing attractive returns to the
investors/stake holders.

These projects are further grouped into two categories

i.e., Demand based and resource / Supply based.
 Demand Based Projects
Are designed to satisfy the
customers’ felt as well the latent
needs such as complex fertilizers,
agro-processing infrastructure
etc.
Resource/ Supply Based Projects
Are those which take advantage of the available
resources like Land, water, agricultural produce,
raw material, minerals and even Human
resource. Projects triggered by successful R&D
are also considered as supply based projects.
Examples of resource based projects include
Food Product Units, Metallurgical Industries, Oil
Refineries etc.
Examples of projects based on human resource
(skilled) availability include projects In IT sector,
Clinical Research projects in bio services and
others.
 B ) Development Projects
Are undertaken to facilitate the
promotion and acceleration of overall
economic development. These
projects act as catalysts for economic
development providing a cascading
effect. Development projects cover
sectors like Irrigation, Agriculture,
Infrastructure, Health and Education.
 Difference between Industrial and Developmental Projects
Dimension Industrial Project Developmental Project
Scale of Project Limited Large
Promoters Entrepreneurs or corporates Government, Public Sectors,
NGOs
Investment ---- High
Gestation Period ----- High
Profitability High, Considered on IRR Modest, Considered on ERR
(Internal Rate of Return) (Economic Rate of Return)

Source of fund National stock markets and International organizations

from domestic financial like World Bank,
institutions IMF,ADB,DFID and others
mostly as loan ,yet times
providing for some grants.
 Resource requirement for a Project

Human Resources
Material Resources
Financial Resources
Time Resources
 Project Scope Management
A subset of project management that
includes the processes required to
ensure that the project includes all of
the work required, and only the work
required, to complete the project
successfully. It consists of initiation,
scope planning, scope definition,
scope verification, and scope change
control.
Scope Definition. Subdividing the major deliverables into
smaller, more manageable components to provide better control.
Scope Planning. The process of progressively elaborating the
work of the project, which includes developing a written scope
statement that includes the project justification, the major
deliverables, and the project objectives.
Scope Statement. The scope statement provides a documented
basis for making future project decisions and for confirming or
developing common understanding of project scope among the
stakeholders. As the project progresses, the scope statement may
need to be revised or refined to reflect approved changes to the
scope of the project.
Scope Verification. Formalizing acceptance of the project scope.
Project Scope Change Management
 Project Scope Change Management
Any change to product and/or project scope must follow a formal
process.
 This process must finish with the formal acceptance of the change
by the different stakeholders.
A Change Request May Be The Result Of :
An external event (e.g.. Change in a government regulation)
 an error or omission in defining the scope of the product (adding a
failure system regulation).
 an error in defining the scope of the project (a missing inspection)
 a value adding change (positive opportunity)
 a response to an identified risk (see section about risk
management)
Possible Evolutions In Product Scope
 Monitoring Project scope during the project

A universal tool ……
Portfolio Management
 Portfolio Management
A portfolio is a collection of projects, programs sub portfolios, and
operations that are grouped together to facilitate effective
management of that work to meet strategic business objectives.
Organizations manage their portfolios based on specific goals.

Senior managers or senior management teams typically take on

the responsibility of portfolio management for an organization.

Portfolio management encompasses managing the collections of

programs and projects in the portfolio. This includes weighing the
value of each project, or potential project, against the portfolio's
strategic objectives.
Portfolio management also concerns monitoring active projects
for adherence to objectives, balancing the portfolio among the
other investments of the organization, and assuring the efficient
use of resources.
 Examples of Portfolio Management
An infrastructure firm that has the strategic objective
of maximizing the return on its investments may have a
portfolio of:
Projects in oil & gas
Projects in power
Projects in water
Projects in roads
Projects in rail
Projects in airports
Program Management
A program consists of a group of related projects and Program
management is the process of managing multiple on going projects.
An example would be that of designing, manufacturing and providing
support infrastructure for an automobile make.

Program management involves centrally managing and coordinating

groups of related projects to meet the objectives of the program.

In some cases Project Management is a subset of Program

Management. The project manager may report to the program
manager in such cases. A portfolio consists of multiple programs.
 Program Management
Program Management is defined as a group of related
projects managed in a coordinated way to obtain
benefits and control not available from managing them
individually.

Programs may include elements of related work outside

the scope of the discrete projects in the program.

A program will always have projects.

 Program Management
It focuses on the project interdependencies and
help to determine the optimal approach for
managing them.
Resolve resource constraints & conflicts
Aligning organizational direction
Resolve issues and change management within
a shared governance structure
 Example of a Program Management
A new communication satellite system:
Designing of a satellite and ground system
Construction of a satellite and ground station
Integration of the system
Launching of the satellite
 Product Management Vs Project Management
 Product management deals with the processes of
planning, forecasting and marketing of a product or
service throughout all the stages of the product lifecycle.

Project management, on the other hand, involves the

achievement of the goals of a specific project by
implementing methods, processes, knowledge, and
experience. Project managers require technical expertise
in particular disciplines and have sector-relevant
backgrounds.
 Difference between Project, Program, and Portfolio?
Project Program Portfolio

An endeavor was undertaken to produce a unique product or A collection of projects and operations managed under one group
A group of interrelated projects that are managed together
solution to achieve a strategic goal

Permanent in nature that keeps on changing and is aligned with

Temporary in nature with defined start and end point Temporary in nature but lasts longer than the project
the strategic planning

Follows the project-level plans with the main focus on detailed Follows the ongoing processes that prioritize and align the
Follows the high-level plans that are backed up by detailed plans
delivery portfolio to achieve strategic objectives

Has a wide scope can change over time based on client Has the widest scope with the strategic perspective of the whole
Has a narrow and defined scope with no changes
requirements organization
 How it should go
Requirements
Analysis

Design

Implementation

System Testing

Delivery and Installation

 How it often goes
Requirements
Analysis

D
E
L
A
Y
Vaporware
Project Manager
 Project Manager
The primary role of the project manager is to lead, to
provide a vision of success, to connect everyone
involved in the project to that vision, and to provide the
means and methods to achieve success. The project
manager creates a goal-directed and time-focused
project culture. The project manager provides
leadership.
On some projects, the project manager may provide
direction to the technical team on the project. On other
projects, the technical leadership might come from the
technical division of the parent organization.
 Project Manager

Focuses on a specific project

objective
Controls resources to best meet
project objectives
Manages the constraints (scope,
schedule, cost and quality etc) of
individual project
Main Functions of a Project Manager
Define scope of project
Identify stakeholders & Leadership (decision makers:
Client, Parent organization, Project Team, Publics)
Evaluate project requirements
Develop detailed task list (work breakdown,
structures)
Develop initial project management flow chart
Estimate time requirements
Identify cost estimation and budget
Identify required resources and evaluate risks
Main Functions of a Project Manager
Prepare contingency plan
Identify interdependencies
Identify and track critical milestones
Secure needed resources, manpower
Participate in project phase review
Manage the change control process
Report project status
 Project Management Skills
Three dimensions ( 3-D )of project management competencies are :-

Project Management Knowledge Competency − This

refers to what the project management team knows
about project management.
Project Management Performance Competency − This
refers to what the project management team is able to
do or accomplish while applying their project
management knowledge.
Personal Competency − This refers to how the project
management team behaves when performing the
project or activity.
 Interpersonal Skills Management
The management of interpersonal relationships includes −

Effective communication − The exchange of information

Influencing the organization − The ability to "get things done"
Leadership − Developing a vision and strategy, and motivating people to
achieve that vision and strategy
Motivation − Energizing people to achieve high levels of performance and to
overcome barriers to change
Negotiation and conflict management − Conferring with others to come to
terms with them or to reach an agreement
Decision Making − Ability to take decision independently.
Political and cultural awareness − Important to handle various personal and
professional issues.
Team Building − Ability to create a productive team.
Management roles Project Roles
Organization and execution of the project within constraints.
Examples: project manager, team leader.
Development roles
Specification, design and construction of subsystems. Examples:
Analyst, system architect, implementor.
Cross functional roles
Coordination of more than one team. Example: API Engineer,
configuration manager, tester
Consultant roles
Support in areas where the project participants lack expertise.
Examples: End user, client, application domain specialist ( problem
domain), technical consultant (solution domain).
Promoter roles
Promote change through an organization.
 Promoter Roles
Promoters are self appointed individuals who identify
themselves with the outcome of the project.

They are member of the corporate organization and

may not necessarily be directly involved with the
project. Instead, they are interfaces to the rest of the
corporate organization.

Because of the power, knowledge of technology, or

familiarity with the project’s processes, they are able to
promote and push specific changes through the
organization.
 Power Promoter
Also called executive champion
Pushes the change through the existing organizational
hierarchy.
not necessarily at the top of the organization, but must
have protection from top level management, otherwise
project opponents might be able to prevent the success of
the project.
Tasks:
constantly identify difficulties, resolve issues, and
communicate with the project members, especially with
the developers.
Example at project level: Project Manager.
Example at corporate level: Chief Executive Officer (CEO).
 Knowledge Promoter
Also called the technologist,
Promotes change arising in the application domain or the
solution domain. Usually associated with the power promoter.
Tasks: Acquire information iteratively, understand the benefits
and limitations of new technologies, and argue its adoption
with the other developers.
Example at project level: System architect.
Reports to project manager
Does not have any direct subordinate in the reporting
hierarchy
Has final say over all technical decisions in the system.
Example at corporate level: Chief Technical Officer (CTO).
 Process Promoter
The process promoter has intimate knowledge of the projects
processes and procedures.
The process promoter is in constant interaction with the power
promoter to get consensus on the overall goals.
Tasks: Bridge between the power and knowledge promoters,
who often do not speak or understand the same language.
Example at project level: Development lead. Responsible for
the administrative aspects of a project, including planning,
milestones definition, budgeting and communication
infrastructure.
Example at corporate level: Chief Information Officer (CIO
Case Studies
An assistant project manager, Mary, had the opportunity to be promoted
and manage a new large project that was about to begin. She needed her
manager’s permission to accept the new assignment, but if she left, her
manager would have to perform her work in addition to his own for at
least three months. The project manager refused to release her, and the
project manager developed a reputation of preventing people from being
promoted while working on his project.
In the first month of a twelve-month project, the project manager
realized that the end date was optimistic, but he purposely withheld
information from the customer in hopes that a miracle would occur. Ten
months later, the project manager was still withholding information
waiting for the miracle. In the eleventh month, the customer was told the
truth. People then labeled the project manager as an individual who
would rather lie than tell the truth because it was easier.
 To maintain the customer’s schedule, the project manager demanded
that employees work excessive overtime, knowing that this often led to
more mistakes. The company fired a tired worker who inadvertently
withdrew the wrong raw materials from inventory, resulting in a $55,000
manufacturing mistake.
Project Planning : Project
Scheduling
 PROJECT PLANNING
Project planning involves a series of steps that
determine how to achieve a particular organizational
goal or set of related goals. Project plans can also be
based on community goals or action strategies
developed through community meetings and
gatherings, tribal council or board meetings, or other
planning process.
 PROJECT PLANNING
Identifies specific community problems that stand in
the way of meeting community goals.
Creates a work plan for addressing problems and
attaining the goals.
Describes measurable beneficial impacts to the
community that result from the project’s
implementation.
 Determines the level of resources or funding necessary
to implement the project
 Stages of Project Planning
Risk Management - The goal of the Risk
Management stage is to identify project risks and
take the necessary precautions.

Project Scheduling - The goal of Project

Scheduling is to make a detailed schedule of all
the tasks that need to performed, with specific
time frames and resource allocations.
 Project Scheduling
Project scheduling is the process of putting together a
time line for all the activities in the project. This involves
examining the interdependencies of all of the activities,
and coordinating all the tasks to ensure a smooth
transition from the beginning to the end of the project.
There are many different methods of scheduling, which
can address the requirements of the type of project
resulting in different pictorial representations of the
schedules.
The Statement of Work
(SoW)
The SoW is the document that captures and
defines all aspects of the project. The
activities, deliverables and timetable for the
project. It’s an extremely detailed document as
it will lay the groundwork for the Project Plan.

It is one of the first documents a project

manager create to lay out the entire landscape
of the project before he plan and execute.
The Statement of Work is a detailed overview of
the project in all its dimensions. It’s also a way to
share what the project entails with those who are
working on the project, whether they are
collaborating or are contracted to work on the
project.

This includes stakeholders like vendors and

contractors who are bidding to work on the
project.
 Contents of The Statement of Work

Basic Information about your project like

project name, current date, projected
completion date, project manager, high-level
team members, key service providers, and client
names.
A brief introduction or Project Outline that
describes your project context and approach,
and establishes who will be working on it.
Relevant Project Background Information.
A Purpose Statement that describes the purpose of the
project and outlines why it's interesting, necessary, or
useful.
A scope of work.
A Timeline that encompasses key deliverables,
milestones, project objectives, due dates, and projected
end dates.
A Task Breakdown, Work Breakdown or Work Breakdown
Structure (WBS).
Project Budget, payment terms, or other financial
information.
Any special requirements, resources, or specific terms
and conditions.
General Communication criteria and expectations.
Criteria for Modifications Of The Statement of work.
Project Closure Protocols.
SoW Acceptance Criteria & Authorization Documents.
Work Breakdown Structure
WBS describes the deliverables needed to complete the
project.
i.e. the “what” of the project. It doesn’t include timelines
or resources.
A deliverable-oriented hierarchical decomposition of the
work to be executed by the project team to accomplish
the project objectives and create the required
deliverables.
A work breakdown structure defines all the things a
project needs to accomplish, organized into multiple
levels, and displayed graphically.
The WBS is the breaking down of the
statement of work into smaller elements for
better visibility and control.
The first major step in the planning process
after project requirements definition is the
development of the work breakdown structure
(WBS).
A WBS is a product-oriented family tree
subdivision of the hardware, services, and data
required to produce the end product.
When creating the WBS, the simple rule is :

WBS = Nouns
Schedule Activities = Verbs

All WBS deliverables are mutually exclusive in

that all the work associated with a given WBS
deliverable appears with that deliverable and only
that deliverable.
Resource Breakdown Structure
For Better Understanding : Examples
The numbers next to each item indicate the number of hours or resources required to
complete the work.
Creating a Work Breakdown Structure
 Creating a Work Breakdown Structure

1. Understand the Project’s Scope

2. Determine Major Deliverables

3. Determine Work Packages

4. Create a WBS Dictionary

 1. Understand the Project’s Scope

Project scope management is a

process that helps in determining
and documenting the list of all the
project goals, tasks, deliverables,
deadlines, and budgets as a part of
the planning process.
 2. Determine Major Deliverables
Have an understanding of the project scope, start the
WBS development process by figuring out the key
deliverables. For example, if your goal is to “build a
house”, you might have the following three broad
deliverables at Level 2.
 3. Determine Work Packages
Determining work packages would be the next step after
identifying major deliverables. This is one of the most
important parts of the WBS development process and one
that will require extensive input from your project team
and stakeholders.
Work Package must be:
Independent: The work package must be mutually
exclusive and have no dependence on other ongoing
elements.
Definable: The work package should have a definite
beginning and end, and should be understood by all
project participants.
Manageable: The package must represent a
"meaningful unit of work", i.e. it must accomplish
something concrete, and can be assigned to an
individual or team. It should also be measurable.

Integratable: The package must integrate with other

elements to create the parent level.

Adaptable: Ideally, the package must be able to

accommodate changes in scope as per the project's
requirements.
 4. Create a WBS Dictionary
The WBS dictionary is a document that outlines the definition and scope
of each element contained in the WBS. It is a supporting document
meant to help incoming project teams understand each work package
better.

• Work package ID (see the ID convention below)

• Work package name
• Work package description
• Assigned to (individual or team name)
• Department
• Date of assignment
• Due date
• Estimated cost
Examples of Work Packages and Activities
Building a School
Organizing a big party
WBS Dictionary
Sample WBS dictionary
A Text-based WBS
• If I want to clean a room, I might begin by picking up clothes, toys,
and other things that have been dropped on the floor. I could use a
vacuum cleaner to get dirt out of the carpet. I might take down the
curtains and take them to the cleaners, and then dust the
furniture. All of these tasks are subtasks performed to clean the
room. As for vacuuming the room, I might have to get the vacuum
cleaner out of the closet, connect the hose, empty the bag, and
put the machine back in the closet. These are smaller tasks to be
performed in accomplishing the subtask called vacuuming.
• It is very important to note that we do not worry about the
sequence in which the work is performed or any dependencies
between the tasks when we do a WBS. That will be worked out
when we develop the schedule
A WBS for Cleaning a Room
Multimedia Project
Visual Tabular Structure
Network Scheduling
Project Network Diagram
 Network Scheduling
A graphical display of the logical order of activities that defines
the sequence of work in a project
Where the activities are represented by boxes.

Networks are usually drawn from left to right

To show the "precedence" relationships between them.

Arrow heads are sometimes placed on the lines to indicate the

direction of the flow through time.
 Project Network Diagram
Project Network Diagrams are used for schedule preparation and
analysis. They use a combination of nodes and arrows to pictorially
represent activities and relationships among those activities. They
are also called Project Schedule Network Diagrams and Logical
Network Diagrams.
Project Network Diagrams are drawn to depict Project
Dependencies or relationships between two activities and/or
milestones.

An activity ‘Y’ is said to be dependent on another activity ‘X’ if Y

requires some input from X.
 Project Dependencies
A project dependency can defined as an
association between two activities, in which
one activity requires input from the other. It
simply means that one activity is reliant on the
other for its start or completion.
A dependency in project management can be
characterized as a schedule dependency. It can
be defined between any two tasks like
activities or work packages. It can also be
defined between milestones.
 Types Of Dependencies

Mandatory Dependency
Discretionary Dependency
External Dependency
Internal Dependency
 Mandatory Dependency
Consider 2 activities A and B. If B has a Mandatory Dependency
on A then it means action on B cannot be performed until
Action on A has been completed.
A: Requirements Documentation; B: Client Approval – Client
cannot approve requirements until documentation is
complete
A: Lay Building Foundation; B: Construct a Floor – A floor of a
building cannot be constructed until foundation is laid.
A: Build Car Prototype; B: Perform Crash Testing – Crash
testing on a care prototype cannot be performed unless the
prototype itself is available.
 Discretionary Dependency
Discretionary Dependencies are defined by the Project Team as a
certain order of activities is more suitable for the nature of work.

Consider 2 activities A and B. A and B can be independently

performed or one can be performed after the other. The project
team can chose to make B dependent on A.
A:-develop system module X; B: develop system module Y – the
project team can develop either X first or Y first but they decide to
develop X first.
A: furnish room r; b: furnish room s – the project team can furnish
either room r first or s first but they decide to furnish s first.
A: book airline ticket; b: buy travel insurance – the project team
can book an airline ticket before buying travel insurance or do it
other way around.
 External Dependency
External Dependencies are defined between
Project Activities and Non-project Activities.
 The Project Activities are done by the Project
Team.
The Non-project Activities are done by people
who are external to the Project Team e.g.
representatives from Client’s organization,
Vendors’ organization or any other external
groups within the same organization
Consider 2 activities A and B. If B has an external
dependency on A then it would signify that B is a project
activity while A is a non-project activity.

A: Client go-ahead; d: Initiate Project: a project cannot

be initiated before the client gives a go-ahead.
A: Delivery of Equipment; d: Start Development:
project development cannot start until equipment is
delivered.
A: Approval of Building Plans; d: Start Construction:
construction of a building cannot be started unless the
building plans are approved.
 Internal Dependency
Internal Dependencies are defined between two project
activities. consider 2 activities A and B. If B has an Internal
Dependency on A then it would signify that both A and B are
project activities. These are performed by the Project Team
members. There is no involvement of any external party.

 A: Develop System; B: Test System

 A: Construct Wall; B: Paint Wall
 A: Assemble Machine; B: Pack Machine
Types of Logical Relationships
 Types Of Logical Relationships Between Two Dependent
Activities/Milestones

FS Relationship – Start Event of a Successor

is dependent Finish event of Predecessor.
SS Relationship – Start Event of a Successor
is dependent Start event of Predecessor.
FF Relationship – Finish Event of a Successor
is dependent Finish event of Predecessor.
SF Relationship – Finish Event of a Successor
is dependent Start event of Predecessor
Finish to Start is a Logical Relationship in
which a Successor Activity cannot start until
a Predecessor Activity has finished.
If two activities are linked by a finish-to-start dependency, this
means that the predecessor activity must be completed before
the successor activity can start.
Consider 2 activities A and B. Let us also
consider A to be the predecessor and B
to be the successor.
A – document requirements, b – get
approval
A – design machine, B – develop
prototype
A – write user manual, B – print user
manual
Start to Start is a Logical Relationship in
which a Successor Activity cannot start until
a Predecessor Activity has started.
• If two activities are connected through a start-to-start dependency,
this means that the predecessor activity must have started before the
successor activity can start.
The "from" activity must start before the "to" activity can
start.
on a telemarketing project the compilation of phone lists
must be started before people can actually be called.

• A – Write Code for S/W Module X, B – Write DB Scripts for

S/W Module X
• A – Write User Manual, B – Review User Manual
Finish to Finish is a Logical Relationship in
which a Successor Activity cannot finish until
a Predecessor Activity has finished.
• Under this type of logical relationship, a successor activity requires the
predecessor activity to be finished before it can be completed.
• This type of dependency can also coincide with start-to-start
relationships of the same activities.
 Car body and engine production can be started at the same
time. The last step in the engine production phase is to install it in
the body. Therefore, the body must be finished before the engine
can be finished.

Consider 2 activities A and B. Let us also consider A to be the

predecessor and B to be the successor.
A – write code for s/w module x, b – unit test s/w module x
A – lay electrical wires, B – inspect electrical wires
In SF relationship, the Finish of Second Activity is
dependent on the Start of First Activity. The Second
Activity is called the Successor and the First Activity
is called the Predecessor
• This logical relationship requires that a predecessor activity must have
started before the successor activity can be finished. In practice, this
type of dependency does not occur very often which is also
acknowledged by the PMBOK.
 if your car refuses to start, you may need to jump
start the battery with booster cables. The engine
must start before you can finish jump starting the
car.
X – Duty of Evening Guard (E), Y – Duty of Morning
Guard (M). M cannot Finish her/his duty till E
Starts. M cannot abandon the post even if E gets
delayed.
X – Start using New Software System (N), Y – Phase
out Old Software System (O). It is assumed that N &
O cannot be used in parallel. O cannot be phased
out until N is started.
 Modifiers
1. Lead
The amount of time whereby a successor
activity can be advanced with respect to a
predecessor activity.
2. Lag
The amount of time whereby a successor
activity is required to be delayed with
respect to a predecessor activity.
 Examples
LAG
A – Lay ceiling for Floor I, B – Construct Columns for
Floor II.
A – Ship goods to a customer, B – Check if shipment
has been delivered.

LEAD
A – Collect Requirements, B – Create Design.
A – Interior work of a Building, B – Exterior
landscaping of the Building.
 LAG & LAG TIME - EXAMPLE
• A lag is defined as a required delay in the start of the successor activity. Lag
time is the number of hours, days, weeks (or any other unit of time) that
has to pass while there are no resources associated with the successor
activity during that time.
• if you paint the walls in two days, the first coat (predecessor activity) needs
to dry for a day or so. And then it is going to take you two days to do the
next coat (successor activity). However, you cannot apply the second coat
before the first coat has fully dried. You will have to wait for a day for the
first coat to dry which is the lag time before you can start the successor
activity.
• All in all, the duration is two plus two days for the painting plus one day
lag time between both coats. The total duration is five days although you
would only be busy on four days.
• In a network diagram, the lag would be indicated by a positive number
because it is time that needs to be added.
 LEAD
• let’s say we have two activities. One is going to take four days, and one
is going to take five days to finish. That would be nine days total
duration. Let’s assume the successor activity comes with a two-day
lead.
• This way, we can go ahead, make use of the lead time and start that
successor activity two days before the predecessor has finished. Thus,
the total duration is reduced from nine days, down to seven days.
• In schedule network diagrams, lead is normally indicated with a
negative number. It is negative because it is the time a project is saving
compared to a finish-to-start scheduling. In our example, nine minus
two gives us seven.
 Example of Leads and Lags in an IT Project
• In a project, the durations are estimated as follows:
• Technical design of module A: 10 days
• Technical design of module B: 5 days
• Development of module A: 15 days
• Development of module B: 20 days
The dependencies are:
• The technical designs of module A and B, respectively, must be completed
before the respective module can be developed,
• The technical design of module B makes reference to that of module A,
• Thus, the module A design needs to be 50% completed before the module B
design can be started, and
• The development of module A depends on module B, which needs to be
25% completed before the team can start the development of module A.
• Technical design of module A (duration: 10 days),
• Technical design of module B (duration: 5 days),
• Development of module A (duration: 15 days),
• Development of module B (duration: 20 days), and
• Development of feature F in module B (duration: 1 day).
The technical dependencies are:
• The technical design of module B cannot finish until the technical design of module A
has been completed.
• The technical designs of module A must be completed before the module A
development can start.
• The technical designs of module B must be completed before the module B
development can start.
• The development of module B can only be started when the development of module A
has been started.
• The development of feature F cannot be finished before the development of module B
has started (although it can be developed independently, it needs to be integrated into
module B)
 Logical Relationships and Precedence Diagram
echnical dependencies Logical relationship

Activity (1) is predecessor of activity (2) in a finish-to-finish (FF)

The technical design of module B cannot finish until the dependency (There could also be a start-to-start (SS)
technical design of module A has been completed. dependency between (1) and (2) but the FF relationship is
prioritized as its impact is higher)

The technical designs of module A must be completed before Activity (1) is predecessor of activity (3) in a finish-to-start (FS)
module A development can start. relationship

The technical designs of module B must be completed before Activity (2) is predecessor of activity (4) in a finish-to-start (FS)
module B development can start. relationship

The development of module B can only be started when the Activity (3) is predecessor of activity (4) in a start-to-start (SS)
development of module A has been started. relationship

The development of feature F cannot be finished before the Activity (5) is a successor of activity (4) and in a start-to-finish
development of module B has started (SF) relationship
Project Scheduling Steps and Techniques
 Project Scheduling Steps

Define Activities
Sequence activities
Estimate time and
Develop schedule
 Project Scheduling Techniques
Gantt chart- This is represented by the graph or bar chart
with a specific bar for activities in the project that shows
the passage of time. Gantt chart limits a clear indication of
interrelation between the activities.
CPM- Critical path method was developed for industrial
projects where activity times are generally known.
PERT- Program evaluation and review technique were
developed for R&D projects where activity times are
generally uncertain. Its prime objective is taking the
shortest possible time.
Microsoft projects- All the work is performed on the
computer memory and changes can be saved only when
the program is asked to operate.
 Network Planning Techniques
• Program Evaluation & Review Technique (PERT):
• Developed to manage the Polaris missile project
• Many tasks pushed the boundaries of science & engineering (tasks’ duration =
probabilistic)

• Critical Path Method (CPM):

• Developed to coordinate maintenance projects in the chemical industry
• A complex undertaking, but individual tasks are routine (tasks’ duration =
deterministic)
Basic Terms in Network Diagram

1. Activity
2. Event
3. Sequencing
 1. Activity
Any individual operation which makes use of resources and has an end and a
starting is called as activity.
An arrow is generally used to characterize an activity with its head
representing the direction of progress in the project. These are divided into
four classes.
• Predecessor activity - Activities that ought to be completed immediately
previous to the start of another activity are known as predecessor activities.
• Successor activity - These are those activities that cannot be started until
one or more of other activities are finished but immediately succeed them.
• Concurrent activity - These are activities which can be achieved
concurrently. It may be noted that an activity can be a successor or a
predecessor for an event or it may be concurrent with one or more
activities.
• Dummy activity - An activity which does not use any type of resource but
simply depicts the technological dependence is known as dummy activity
 2. Event
An event signifies a point in time representing the completion
of several activities and the starting of new ones. This is
typically symbolizes by a circle in a network which is also known
as node or connector.
Merge event - Event in which more than one activity comes
and connects an event is called as merge event.
Burst event - It is event in which more than one activity
leaves an event.
Merge and Burst event - An activity can be merge and burst
event simultaneously, as regard some activities it can be a
merge event and with some other activities it may be a burst
event.
 3. Sequencing
The first requirement in the development of network
is to keep the precedence relationships. In order to
prepare a network, the subsequent points must be
taken into considerations
What job or jobs follow it?
What job or jobs could run concurrently?
What job or jobs precede it?
What controls the start and finish of a job?
 Dummy Activity
• A Dummy activity is a type of operation in a project network which
neither requires any time nor any resource. It is an imaginary activity
shown in a project network to identify the dependence among operation.
Uses of Dummy Activity

• The dummy activity serves the following purposes in a project

network:
• Grammatical Purpose
• Logical Purpose
1.Grammatical Purpose
A dummy activity can be used to prevent two
arrows with a common beginning and end points.
2. Logical Purpose

• It is difficult to represent an activity having two sets of operation

running parallel to each other in a network. The use of a dummy
activity helps to give a logical representation without difficulty in
interpretation.
• For example, consider the network given in figure-3 where there are
two activities Q and R. Both have a common end node. The
predecessors of Q are O and P while that of R are P and N.
Network diagram
•Network diagrams are the preferred technique
for showing activity sequencing
•A network diagram is a schematic display of
the logical relationships among, or sequencing
of, project activities
•Two main formats are the Arrow Diagramming
Method (ADM) and precedence diagramming
methods
 Arrow Diagramming Method (ADM)

•Also called activity-on-arrow (AOA) network

diagrams
•Activities are represented by arrows
•Nodes or circles are the starting and ending
points of activities
•Can only show finish-to-start dependencies
Process for Creating AOA Diagrams
1. Find all of the activities that start at node 1. Draw their finish nodes
and draw arrows between node 1 and those finish nodes. Put the
activity letter or name and duration estimate on the associated
arrow
2. Continuing drawing the network diagram, working from left to
right. Look for bursts and merges. Bursts occur when a single node
is followed by two or more activities. A merge occurs when two or
more nodes precede a single node
3. Continue drawing the project network diagram until all activities
are included on the diagram that have dependencies
4. As a rule of thumb, all arrowheads should face toward the right,
and no arrows should cross on an AOA network diagram

101
 Precedence Diagramming Method (PDM)

•Activities are represented by boxes

•Arrows show relationships between
activities
•More popular than ADM method and used
by project management software
•Better at showing different types of
dependencies
Task Dependency Types
Rules For Network Diagram
Rule 1:
Each of the activity is symbolized by one and only
one arrow in the network

Rule 2 :
No two activities can be recognized by the same
end events
Rule 3 :
To assure the correct precedence relationship in the
arrow diagram, various questions must be tested
every time any activity is added to the network
What activity must be finished immediately before
this activity can start?
What activities must occur at the same time with
this activity?
What activities must follow this activity?
 Critical Path Method (CPM)
• CPM is a network diagramming technique used to predict
total project duration
• A critical path for a project is the series of activities that
determines the earliest time by which the project can be
completed
• The critical path is the longest path through the network
diagram and has the least amount of slack or float
• Slack or float is the amount of time an activity may be
delayed without delaying a succeeding activity or the
project finish date
Calculating the Critical Path
• First develop a good network diagram
• Add the duration estimates for all activities on each path through the
network diagram
• The longest path is the critical path
• If one or more of the activities on the critical path takes longer than
planned, the whole project schedule will slip unless the project
manager takes corrective action
Determining the Critical Path for Project X
PERT VS CPM
PERT CPM

• What is it? Planning Control

Technique Method

• Evolution Research Construction

Development Project

• Focus Time Time and cost

Examples
 For preparation of Paneer (Cottage Cheese) the following
list represents major activities

I. Receive whole cow/buffalo milk

ii) Standardize milk to obtain desired level of fat percentage
iii) Take citric acid and prepare 1% solution
iv) Heat the citric acid to 70 o C
v) Bring the standardized milk to boil on medium heat
vi) Cool the milk to 70 o C and add slowly the solution of citric acid till yellowish
whey separates
vii) Strain the mixture through a clean muslin cloth.
viii) Hold it under running water for a minute and then press out the excess water.
ix) Hang the muslin for 15-20 minutes so that all the whey is drained out.
x) Prepare mould to form Paneer block
xi) Fill the mass into the block and tie the muslin
xii) Place it under something heavy for up to two hours
xiii) Cut the paneer into chunks and used as required.
 Precedence table
Activity Description Preceding Activity

A Receive whole cow/buffalo milk -

B Standardize milk to obtain desired level of fat percentage A

C Take citric acid and prepare 1% solution -

D Heat the citric acid to 70 o C C

E Bring the standardized milk to boil on medium heat B

F Cool the milk to 70 o C and add slowly the solution of citric acid till D,E
yellowish whey separates.

G Strain the mixture through a clean muslin cloth. F

H Hold it under running water for a minute and press out the excess G
water.
I Hang the muslin for 15-20 minutes and drain out all the whey. H

J Prepare mould to form Paneer block H

K Fill the mass into the block and tie the muslin J

L Place it under something heavy for up to two hours. K

M Cut the paneer into chunks and use as required. L

The activity A has no preceding activity
and it is represented by an arrow line.
Likewise activity C has no preceding
activity and both activities A and C can be
done simultaneously so they are shown
as concurrent activities. Activities B and D
are preceded by the activities A and C
respectively.
 Guidelines for Drawing Network Diagram
a)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. In such a case each segment may be represented by a separate
arrow.

b) No two activities can be identified by the same beginning and end event.
In such cases, a dummy activity is introduced to resolve the problem
 c) Inorder to ensure the correct precedence relationship in arrow diagram
following question must be checked whenever any activity is added to a 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?

d) Thus a network should be developed on the basis of logical or technical

dependence.

e) The arrows depicting various activities are indicative of logical precedence only;
hence length and bearing of the arrows are of no significance.

f) The flow of the diagram should be from left to right.

g) Two events are numbered in such a way that the event of higher number can
happen only after the event of lower number is completed.
h) Arrows should be kept straight and not curved. Avoid
arrow which cross each other.
i) Avoid mixing two directions vertical and standing
arrows may be used if necessary.
j) Use dummy activity freely in rough graph but final
network should have only reluctant dummy.
k) The network has only one entry point called the start
event and one point of emergence called end event.
l) Angle between the arrows should be as large as
possible.
 Labeling of a Network Diagram
A standard procedure called i-j rule developed by D.R.F Fulkerson is most
commonly used for this purpose.
Step 1: First, a start event is one which has arrows emerging
from it but not entering it. Find the start event and label it as
number1.
Step 2: Delete all arrows emerging from all numbered events.
This will create at least one new start event out of the preceding
events.
Step 3: Number all new start events �2�, �3� and so on. No
definite rule is necessary but numbering from top to bottom
may facilitate other users using the network when there are
more than one new start event.
Step 4: Go on repeating step no. 2 & 3 until the end reached.
 Example - 1
Extension to the Recreation center
 Creating Facility For Lift Irrigation In A
Farm
1. It is assumed that the competent authority has approved the
project and the project scheduling starts with the activity of “Site
selection”.
2. Irrigation would be provided from a newly dug well.
3. Field channels from the well would be laid after its digging.
4. Suitable pump would be procured and installed for lifting water.
5. Specification for the pump is finalized based on the
groundwater prospecting data before digging.
6. Pump and other inputs would not be procured until the site is
selected.
7. Pump would be installed after digging the well.
 Step 1: Identify the activities
Identify all the activities to be undergone and
place it in a table.
Table 1: List of Activity
 Step-2: Define the inter relationship among the activities

The relationship among the activities could be defined by

specifying the preceding and succeeding activity. Preceding
activity for an activity is its immediate predecessor, i.e. the
activity that needs to be completed before the start of the new
activity.
In this case study, the site needs to be selected before digging of
the well. Thus the activity “Selection of site” becomes
proceeding /preceeding activity to the activity of “Digging the
well” Succeeding activity is the one that immediately starts
after completion of the activity. “Digging well” is the succeeding
activity to “Selection of site”
Table 2: Interrelationship of activities
 Step 3: Estimation of activity time
• The activity time is the time, which is actually expected to be
expended in carrying out the activity. In deterministic cases as in CPM
one time estimate is used. In probabilistic cases as 25 in PERT, the
activity time has some kind of probabilistic distribution and is the
weighted average of three time estimates ( Optimistic time,
Pessimistic time and Most likely time) for each activity.
Purchase of a New Car
 Example -3
Preparation of Paneer
I. Receive whole cow/buffalo milk
ii) Standardize milk to obtain desired level of fat percentage
iii) Take citric acid and prepare 1% solution
iv) Heat the citric acid to 70 o C
v) Bring the standardized milk to boil on medium heat
vi) Cool the milk to 70 o C and add slowly the solution of citric acid till yellowish
whey separates
vii) Strain the mixture through a clean muslin cloth.
viii) Hold it under running water for a minute and then press out the excess water.
ix) Hang the muslin for 15-20 minutes so that all the whey is drained out.
x) Prepare mould to form Paneer block
xi) Fill the mass into the block and tie the muslin
xii) Place it under something heavy for up to two hours
xiii) Cut the paneer into chunks and used as required.
Activity
Precedence table
Description Preceding Activity

A Receive whole cow/buffalo milk -

B Standardize milk to obtain desired level of fat percentage A
C Take citric acid and prepare 1% solution -
D Heat the citric acid to 70 o C C
E Bring the standardized milk to boil on medium heat B
F Cool the milk to 70 o C and add slowly the solution of citric acid till D,E
yellowish whey separates.

G Strain the mixture through a clean muslin cloth. F

H Hold it under running water for a minute and press out the excess G
water.
I Hang the muslin for 15-20 minutes and drain out all the whey. H
J Prepare mould to form Paneer block H
K Fill the mass into the block and tie the muslin J
L Place it under something heavy for up to two hours. K
M Cut the paneer into chunks and use as required. L
 Example – 4

House Construction Project

Example 1:
Draw a network for a house construction project. The sequence of activities with their predecessorsare given.
Activity A (preparation of house plan), has a start event 1 as well as an ending event
2. Activity B (Construction of house) begins at event 2 and ends at event 3. The
activity B cannot start until activity A has been completed. Activities C and D cannot
begin until activity B has been completed, but they can be performed
simultaneously. Similarly, activities E and F can start only after completion of
activities C and D respectively. Both activities E and F finish at the end of event 6.
Example - 5
PERT & CPM
 Common Errors

1.Dangling
2. Looping or Cycling
3.Redundancy
Two activities starting from a tail event must not have a same end event.
To ensure this, it is absolutely necessary to introduce a dummy activity
In a network, there should be only one start event and
one ending event
Looping error should not be formed in a network, as it represents
performance
of activities repeatedly in a cyclic manner
 Looping
Looping error is also called as cycling error in a network
diagram. Making an endless loop in a network is called as
error of looping.

A
The direction of arrows should flow from left to right
avoiding mixing of direction
 Dangling
Whenever an activity is disconnected from the network it
is called dangling error.

C
A B Dangli E G
ng
D

Dangli
F ng
Redundancy
When the dummy activity is introduced and it is not
required, it is called redundancy errors.

C
B

A D
A B C D
PROJECT COMPLETION TIME
 PERT - Program Evaluation and Review Technique.
• project management tool that shows a graphical representation of
different activities in the timeline. The Program Evaluation Review
Technique breaks down the whole activities in individual tasks of a
project for analysis purposes.
• It helps a project manager, to analyze a project’s various tasks
and estimate the amount of time required to complete each task in
the project activities. Using this subjective information, the project
manager can easily estimate/ calculate the minimum amount of
time required to complete the whole project activity.
• This information also helps in a budget and to determine all types
of resources needed to complete the project. PERT is followed the
Probability approach. it calculates the three-time estimation for
activity.
• PERT uses three estimates to define an approximate range for a task’s duration:
• Most likely estimate (M): This estimate is based on the duration of the task,
given the resources likely to be assigned, their productivity, realistic
expectations of availability for the activity, dependencies on other participants,
and interruptions.
• Optimistic (O): The task duration based on analysis of the best-case scenario
for the task. This will tell the minimum time the task may take.
• Pessimistic (P): The task duration based on analysis of the worst-case scenario
for the task. This will tell the maximum time a task can potentially take.
• Now let us see how we do estimates using three-point (Triangular Distribution)
and PERT.
• Let “E” be the estimated time taken for the task after calculation.
• The formulas are:
• • Three-point estimate / Triangular Distribution: E = (O + M + P) / 3
• • PERT: E = (O + 4M + P) / 6
 PROJECT COMPLETION TIME
Four types of time required to accomplish an activity.
Optimistic time: The minimum possible time required to accomplish an activity (o)
or a path (O), assuming everything proceeds better than is normally expected
Pessimistic time: The maximum possible time required to accomplish an activity (p)
or a path (P), assuming everything goes wrong (but excluding major catastrophes).
Most likely time: The best estimate of the time required to accomplish an activity
(m) or a path (M), assuming everything proceeds as normal.
Expected time: the best estimate of the time required to accomplish an activity (te)
or a path (TE), accounting for the fact that things don't always proceed as
normal (the implication being that the expected time is
the average time the task wouldrequire if the task were
repeated on a number of occasions over an extended period of time.
A formula to estimate the cost and/or time required to complete a task .
TE means Estimated Time, o Optimistic Time, m Most likely Time , p Pessimistic Time
TE= (o + 4m + p) ÷ 6
For Activity A:
o = 4 hours (Optimistic time), m = 8 hours (Most likely time), p = 16
hours (Pessimistic time) TE is Most likely time
TE = (o + 4m + p) ÷ 6

E = (4 + 4(8) + 16) / 6
E = 52 / 6
E = 8.7 hours
Critical path: Critical path is the longest sequence of
activities in a project plan which must be completed
on time for the project to complete on its due. It is the
sequence of activities which decides the total project
duration
 Variables within critical path
Float or slack is a measure of the excess time and
resources available to complete a task. How long a
task can be delayed without interrupting other tasks
or the whole project
 It is the amount of time that a project task can be
delayed without causing a delay in any subsequent
tasks (free float) or the whole project (total float).
 Positive slack would indicate ahead of schedule;
Negative slack would indicate behind schedule; and
Zero slack would indicate on schedule.
A project consists of the following activities and time estimates. Construct the
network. determine the expected task time. show the critical path. what is the
project duration?
The formula for expected task time (te) =

Accordingly the expected task times for different

activities are as
follows:
Activity (te) values, days
1-2 → 7
1-3 → 6
1-4 → 14
2-5 → 5
2-6 → 11
3-6 → 7
4-7 → 11
5-7 → 4
6-7 → 5
The expected task times are shown on the network diagram to determined the critical path & project duration.

From this network diagram 1-4-7 represents the critical path and the
duration for project completion = total time along the critical path = 14+11 =
25 days
The Critical Path
The critical path describes the sequence of tasks that would
enable the project to be completed in the shortest possible
time.
A critical path diagram is a useful tool for scheduling
dependencies and controlling a project.
Critical path is the longest sequence of activities in a project
plan which must be completed on time for the project to
complete on its due. It is the sequence of activities which
decides the total project duration
In order to identify the critical path, the length of time that
each task will take must be calculated.
Example : Establishment of a Mango orchard
The critical path is A-B-D-E and the project duration is 15 days.
A project consists of the following activities and time estimates. Construct the
network. determine the expected task time. show the critical path. what is the
project duration?
The formula for expected task time (te) =

Accordingly the expected task times for different

activities are as
follows:
Activity (te) values, days
1-2 → 7
1-3 → 6
1-4 → 14
2-5 → 5
2-6 → 11
3-6 → 7
4-7 → 11
5-7 → 4
6-7 → 5
The expected task times are shown on the network diagram to determined the critical path & project duration.

From this network diagram 1-4-7 represents the critical path and the
duration for project completion = total time along the critical path = 14+11 =
25 days