PROJECT MANAGEMENT:

 PROJECT MANAGEMENT
 PROJECT SCHEDULING BY USING NETWORK PERT/CPM (T,N)
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What is a project?

A Project is a series of related jobs usually directed toward some major output and requiring a
significant period of time to perform.

The Project Management Institute (PMI) defines a “project” as “a temporary endeavour undertaken
to create a unique product, service or result.”

There are a few key things to notice in this definition:

The word “temporary” means projects must have a defined beginning and end. This means every
project must include a timeline, scope, and resources. The fact that it is temporary with a beginning
and an end also means that it is not part of ongoing operations. This brings us to the second point.

The purpose of a project must be “to create a unique product, service, or result.” This means a
project will be started in order to accomplish a specific goal that is typically outside the realm or area
of the typical day-to-day business operations. This means the project team might include people who
don’t usually work together, and require resources that are typically outside the scope of day-to-
day operations.

Components of project:

Every project must have the following components:

Goal: What are you trying to achieve?

Timeline: When are you trying to achieve it?

Budget: How much will it cost to achieve?

Resources: human, technological and financial

Stakeholders: Who are the major players who have an interest in this project?

Project manager: Who is going to make sure everything that needs to be completed gets completed?

A project is not something routine. Day-to-day operations and maintenance are not considered
projects because they do not have a definitive start and end.
 TYPES/ STRUCTURES OF PROJECT:

PURE PROJECT: A Pure project is where a self-contained team works full time on the project. For
instance, you run a Retail chain and you want to open your first out-of-state store, Ship Building.

Advantages
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 The project manager has full authority over the project.
 Team members report to one boss.
 Lines of communication are shortened
 Decisions are made quickly.
 Team pride, motivation, and commitment are high

Disadvantages

 Duplication of resources.
 Organizational goals and policies are ignored.
 Lack of new technology transfer due to weakened functional divisions
 Team members have no functional area or “home” so they often have to worry about life-after-
project

FUNCTIONAL PROJECT:

Functional project is a theme of housing the project within a functional division. The end of the project
organization spectrum is the Functional Project.

Advantages

 A team member can work on several projects.

 Technical expertise is maintained within the functional area even if individuals leave the project
or organization.
 Functional area is a home after the project is completed.
  A critical mass of specialized functional-area experts creates synergistic solutions to a project’s
technical problems
Disadvantages

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 Motivation of team members is often weak.
 Needs of the client are secondary and are responded to slowly.
 Aspects of the project that are not directly related to the functional are get short changed.

MATRIX PROJECT:

The matrix project attempts to blend properties of functional and pure project structure. If the matrix
form is chosen, different projects (rows of matrix) borrow resources from functional areas (columns).
Senior management must then decide whether a weak, balanced, or strong form of a matrix is to be used.

Advantages

 Communication between functional divisions is enhanced.

 A project manager is held responsible for successful completion of the project.
 Duplication of resources is minimized.
 Team members have a functional “home” after project completion, so they are less worried about
life-after-project than if they were a pure project organization.
 Policies of the parent organization are followed.
Disadvantages

 There are two bosses. Hence, who can promote you or give you a rise?
 If the PM lacks great negotiating abilities, it will fail.
 Sub optimization is a risk since project managers tend to retain resources for their own projects at
the expense of other projects.
 STATEMENT OF WORK (SOW)
A statement of work (SOW) is a formal document that captures and defines the work activities,
deliverables and timeline a vendor will execute against in performance of specified work for a client.
Detailed requirements and pricing are usually included in the Statement of Work, along with standard
regulatory and governance terms and conditions.
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There are many formats and styles of Statement of Work document templates. Many companies create
their own customized version of SOWs for use within their industry or vertical those have been either
specialized or generalized to accommodate the typical request and proposals they receive.

Areas that are typically addressed by a SOW are as follows:

 Purpose: Why are we doing this project? This is the question that the purpose statement attempts to
answer.
 Scope of Work: This describes roughly the work to be done in detail and the exact nature of the work
to be done.
 Work: This describes where the work is to be performed. This also specifies and where people will
meet to perform the work.
 Period of Performance: This specifies the allowable time for projects, such as start and finish time,
number of hours that can be billed per week or month, where work is to be performed and anything else
that relates to scheduling.
 Deliverables Schedule: This part lists the specific deliverables, describing what is due and when.
 Applicable Standards: This describes any industry specific standards that need to be adhered to in
fulfilling the contract.
 Acceptance Criteria: This specifies how the buyer or receiver of goods will determine if the product or
service is acceptable, what objective criteria will be used to state the work is acceptable.
 Special Requirements: This specifies any specialized workforce requirements, such as degrees or
certifications for personnel, travel requirements, and anything else not covered in the contract specifics.
 Type of Contract/Payment Schedule: The project acceptance will depend on if the budget available
will be enough to cover the work required. Therefore payments breakdown whether up front or phased
will be negotiated very early at this stage.
 Miscellaneous: There are many items that do not form part of the main negotiations but are nonetheless
very important to the project. They seem minor but being overlooked or forgotten could pose problems
for the project.
 WORK BREAKDOWN STRUCTURE (WBS)

The work breakdown structure defines the hierarchy of project tasks, subtasks, and work packages.

When one or more work packages are finished, a subtask is finished, and when one or more subtasks are
Page | 5 finished, a task is finished. and lastly, in order to finish the project, all tasks must be completed.

The WBS is crucial for project management because it divides the project into manageable
components.

Task, Subtask, and Work package

Task: A further division of a project is a task. It often lasts no more than a few months and is carried
out by a single group or organisation.

A subtask: If more division is required to make the project into more useful components, a subtask
may be employed.

Work Package: A work package is a collection of sub-tasks that can be assigned to one organisational
unit. It still follows the general structure of project management; the package includes
information on what needs to be done, when it needs to be started and finished, a budget,
performance metrics, and specific events that need to happen at particular times.

Milestone: A specific event in a project e.g. the completion of the design, the production of the prototype,
the completed testing of a prototype, etc.

Activities: Pieces of work that consume time e.g. waiting for paint to dry may be an activity in a project.
Activities needed to be defined in such a way that when they are all completed, the project is done.
 What is project management?

Project management can be defined as planning, directing, and controlling resources (people,
equipments, and materials) to meet the technical, cost, and time constraints of the project.

Page | 6 Project management is the practice of applying knowledge, skills, tools, and techniques to
complete a project according to specific requirements.

Which are the stages of project management? (P,D,C)

The five project management process groups are:

Initiating: The goal for this phase is to define the project.

Planning: This phase includes developing a roadmap for everyone to follow.

Executing and Monitoring: In this stage, the project team is built and deliverables are created.
PM will monitor and measure project performance to ensure it stays on track.

Closing: The project is completed it is transferred to another team who will maintain it.

History of Project Management:

The roots of project management can be traced as far back as the building of the Pyramids in Giza
and the Great Wall of China. However, the modern development of this practice began in the 19th
century when railway companies purchased tons of raw materials and employed thousands of people
to work on the transcontinental railroad.

By the early 20th century, Frederick Taylor applied PM concepts to the workday, developing
strategies for working smarter and improving inefficiencies, rather than demanding labourers work
harder and longer.

Henry Gantt, an associate of Taylor’s, took those concepts and used bars and charts to graph when
certain tasks, or a series of tasks, were completed, creating a new way to visualize project
management.

During World War II, military and industrial leaders were employing even more detailed
management strategies, eventually leading to more standardized processes like the critical path
method.

These practices grew in popularity across industries and, in 1965 and 1969, the International Project
Management Association and PMI were founded, respectively.

In 2001, Agile project management methodologies were codified by the creation of the Agile
Manifesto (public declaration of policy and aims). It breaks project processes down into smaller
cycles called sprints, or iterations

The field of project management continues to shift as an increasingly competitive landscape, the need
to deliver change fast, and new technologies (automation, Artificial Intelligence, etc.) enter the
marketplace.
 What are the project management basics?

The ability to deliver projects on schedule, on budget, and aligned with business goals is key to
gaining an edge in today’s highly competitive global business environment. This is why it is
important for the person in charge of the project to have a comprehensive understanding of
Page | 7 project management, from basic concepts to extensive experience.

Project managers have an incredibly complex assignment because it includes organizational skills,
analytical minds, and adept interpersonal abilities.

Why is project management important?

 Project managers will help your organization

 Have a more predictable project planning and execution process
 Adhere to project budgets, schedules, and scope guidelines
 Resolve project roadblocks and escalate issues quicker and easier
 Identify and terminate projects that do not have relevant business value
 Become more efficient
 Improve collaboration across and within teams
 Identify and plan for risks

What do project managers do?

In short, project managers are responsible for the planning, executing, monitoring, controlling, and
completion of projects, so they must have a complete understanding of the subject matter. Here are a
few of the main responsibilities:

 Put together the team

 Assign tasks
 Lead the team
 Manage the budget
 Manage timelines
 Involve stakeholders
 Turn over the project
 Record the process
 GANTT CHART:

 Gantt chart shows the amount of time involved and the sequence in which activities are to be
performed.
Page | 8  Named after Henry L. Gantt who applied this type of chart to shipbuilding during World War
I.
 PERT AND CPM IN PROJECT MANAGEMENT:

Effective project management demands optimization of the duration of the project to minimize the total
project time and cost. The Project Evaluation Review Technique (PERT) and the Critical Path Method
(CPM) are always employed by project managers by breaking large complex projects into sub-
Page | 9 activities, deploying resources and managing the circles of the projects in order to minimize the
total cost and time of the project.

Hence, PERT and CPM are operational research tools used in driving project effectiveness and
efficiency and these techniques can be applied to several industries or sectors, such as construction,
aviation, the military, and education, including the civil government.

PERT and CPM assist management in identifying the longest time-consuming, or consuming path
through a network of tasks or activities as a basis for planning, executing, and controlling a project. The
techniques help managers to optimize the longest time duration in order to minimize the total
project cost and time. These tools help the project manager by guiding him/her through many stages
of project management. The techniques are mathematically simplified and give critical path and slack
time, provide project documentation and are very useful in monitoring project costs.

However, in comparing both techniques’ advantages to project management, PERT is event-oriented,

probabilistic, and concerned with time only and applies to projects in which the time horizon is
unknown.
In contrast, CPM is activity-oriented and is a deterministic model and is used for projects that are
repetitive in nature and are small in size. PERT is a probability time estimate for activities in a project.
However, CPM does not involve probability but actual time estimate of activities in a project.

The PERT and CPM models facilitate the basic functions of planning, scheduling, and control. The
planning phase separates an entire project into defined requirements for materials, manpower, and
equipment. It is concerned with arranging well-defined tasks into a time sequence of performance.
PERT and CPM provide management with a clear definition of time cost, an operational network that
relates all activities to a time dimension, resource requirements and a method for showing critical and
non-critical activities .The application of these network models includes such diverse areas as the
development and distribution of new products, shipbuilding, turnaround maintenance of a plant and
where the timing activities require planning and scheduling of project activities.

In project management, an activity is a task that must be performed by an assigned project team. An
event is a milestone marking the completion of one or more activities. Before an activity can begin, all
of its predecessor activities must be completed. Project network models are an abstraction or
representation of activities of projects by arrows and nodes respectively.
 PERT (Program Evaluation and Review Technique):

PERT or the Program Evaluation and Review Technique is a method that analyzes the time required to
complete each task and its associated dependencies, and to determine the minimum amount of time
required to complete a certain project.
Page | PERT was developed by the U.S. Navy in the 1950s to help create a business plan that would
10 coordinate 3000 of contractors it had working on Polaris missile project.

While PERT was originally a manual process, today there are computerized PERT systems that enable
project charts to be created quickly

Terms and Concepts:

 Nodes are visual representations events within the project. They are drawn as either numbered
boxes or numbered circles.
 Arrows are visual representations of the tasks that occur throughout the project. The direction of
the arrow indicates the sequence of the task.
 A PERT event is the point at which one or more tasks are started or completed.
 A predecessor event occurs immediately before some events. A successor event naturally
occurs after events.

 Slack is the amount of time a single task can be delayed without harming other tasks or the project
as a whole. Slack time for an activity is the difference between its earliest and latest start time or
between the earliest and latest finish time.

 The critical path is the longest -- or most time-consuming -- path from the start to the completion
of an event or task.
 Critical path activity refers to a task that does not experience slack.
 Crashing critical path is when the completion time of a task is shortened.
 Lag time refers to the earliest point at which a task can follow another.
 Lead time is the amount of time it should take to complete a task without impacting the following
activities.
 Expected time is the best estimation of how long a task will take to complete, taking into
 Optimistic Time (To): The minimum amount of time required to complete the project, assuming
everything goes better than expected.
 Pessimistic Time (Tp): The maximum time required to complete the task, assuming things go
wrong.
 Most Likely Time (Tm): The most likely amount of time required to complete the tasks,
assuming everything goes alright.
 Dummy Activity

A dummy activity represents a relationship between two events. In the case of the example below this,
the dotted line represents a relationship between two nodes.
The activity between these nodes will not have any value.
Page | Other rules:
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The network should have a unique starting and ending node.

No activity can be represented by more than a single (the line with an arrow connecting the
events) in the network.

No two activities can have the same starting and ending node.

How Do You Make a PERT Chart?

Define the project scope: Determine the objectives and goals of the project, and list all the tasks
required to achieve those objectives.

Establish task dependencies: Identify the dependencies between tasks and determine the order in
which tasks must be completed.

Determine task duration: Estimate the time each task will take to complete.

Create a network diagram: Use arrows to connect the tasks and show their dependencies on each
other. Number the tasks and events, and list their estimated duration.

Add critical path information: Determine the critical path and the sequence of tasks that determines
the minimum overall project duration.

Update the chart regularly: Revisit the PERT chart regularly to reflect changes in the project, such as
changes in task dependencies, duration, or priority.

Present the chart: The final PERT chart should clearly show the relationships between tasks, the
critical path, and the estimated duration of each task.
 The PERT Analysis Method, in the question here, we have three objectives:

1. Draw the network diagram.

2. Find the mean and variance.

Page | 3. Find the critical path and estimated time of completion.

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ACTIVITIES IMMIDIATE OPTIMISTIC MOST PESSIMISTIC
PREDESSORS TIME LIKELY TIME
TIME
A - 6 7 8
B - 3 5 7
C - 4 7 10
D A 2 3 4
E B 3 4 11
F C 4 8 12
G C 3 3 9
H E,F 6 6 12
I D 5 8 11
J H,G 3 3 9

ACTIVITIES IMMIDIATE To Tm Tp MEAN VARI

PREDESSORS
A - 6 7 8 7 0.11
B - 3 5 7 5 0.44
C - 4 7 10 7 1
D A 2 3 4 3 0.11
E B 3 4 11 5 1.77
F C 4 8 12 8 1.77
G C 3 3 9 4 1
H E,F 6 6 12 7 1
I D 5 8 11 7 1
J H,G 3 3 9 4 1
 The process of determining the Es for all events is called a forward pass.

The process of determining the Lc for all events is called a backward pass.

ADVANTAGES:

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 Visualization: PERT charts provide a visual representation of project tasks, allowing for a
clear understanding of project timelines, dependencies and critical paths.
 Planning and scheduling: PERT charts help project managers to create a detailed project
plan, including defining tasks, estimating task durations, and setting deadlines.
 Risk Management: PERT charts allow project managers to identify and analyze potential
risks, enabling them to develop mitigation strategies.
 Resource Allocation: PERT charts help project managers to identify resource requirements and
allocate resources effectively, reducing the risk of delays or overloading.
 Improved communication: PERT charts can be shared with all stakeholders, helping to ensure
clear communication of project plans and progress.
 Adaptability: PERT charts can be easily updated to reflect changes in the project, ensuring
that project plans remain relevant and accurate.

DISADVANTAGES:

 Complexity: PERT charts can be challenging for those needing project management
experience.
 Time-consuming: Creating a PERT chart can be time-consuming and requires significant
effort.
 Dependent on accurate information: PERT charts rely on precise information about task
durations and dependencies, and errors in this information can significantly impact the
chart's effectiveness.
 Limited scope: PERT charts are limited in their scope and may not be suitable for larger,
more complex projects.
 Over-reliance: Over-reliance on PERT charts can lead to a lack of flexibility and an inability
to respond to changes in the project.
 Inflexibility: Once a PERT chart has been created, it can be difficult to make changes to the
project plan, limiting the ability to respond to changes in project requirements.
 CPM (Critical Path Method):

The critical path method (CPM) is a technique to identify tasks that are necessary for project completion
and determine scheduling flexibilities. A critical path in project management is the longest sequence of
activities that must be finished on time in order for the entire project to be complete. Any delays in
critical tasks will delay the rest of the project.
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14 CPM revolves around discovering the most important tasks in the project timeline, identifying task
dependencies, and calculating task durations.CPM was developed in the late 1950s as a method of project
scheduling programme to resolve the issue of increased costs due to inefficient scheduling.

It was developed by J.E.KELLY of REMINGTON- RAND and M.R.WALKER of DU PONT and the
emphasis was on the trade-off between the cost of project and its overall completion time. The first test
wasmade in 1958, when CPM was applied to the construction of a new chemical plant.

Critical path is the sequence of activities between a project’s start and finish that takes the longest time to
complete.

Since then, CPM has become popular for planning projects and prioritizing tasks. It helps you break
down complex projects into individual tasks and gain a better understanding of the project’s flexibility.

The time estimate is determined by the estimator, who is expected to be an experienced individual. The
estimator would have had a long record of similar projects in the past.

For each activity, there are four-time estimates:

1) Early start (ES) is the earliest time it takes for an activity to begin. The assumption is that all
preceding activities begin at their earliest possible start time; otherwise, a late start to the preceding
activity will result in a late start to its succeeding activity. The ES of an activity is the sum of the time
of all preceding activities on that path. When an activity has more than one preceding activity, the early
start of that activity depends on the early finish of the longest duration or the activity with the longest ES
time, t.

2) A late start (LS) is a delay in the start of an activity. The latest time an activity can begin without
delaying the project completion time.

3) Early finish (EF) is an early start of an activity that will lead to an early finish. The assumption is that
the activity begins with ES and ends with t. EF = ES + t. The precedence relationship shows that the
early start of activity depends upon the early finish of its immediate preceding activity (ies).

4) Late finish (LF): A late start to an activity will lead to a late finish. The delay in the late start of an
activity resulting in the late finish of that activity should be such as not to delay the project completion
time. We assume that for the last activity in the critical path, EF = LF and then LF − t = LS indicates a
reverse process called Backward induction/movement. The LS of an activity is determined by the LF of
the previous activity (ies). When an activity has more than one preceding activity, that is, if two or more
paths converge on an activity, the path with the shortest total LS time is taken as the LF of the preceding
activity or activities

.
 CPM PERT

CPM works with fixed PERT works with probabilistictime

deterministic time
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15 CPM is useful for repetitive and non PERT is useful for non repetitiveand complex
complex projects with a certain degree of projects with uncertain time estimates.
time estimates.
CPM includes time-cost trade off. PERT is restricted to time
variable.
CPM- for construction projects. PERT- used for R&D programs.

PERT Chart vs Gantt Chart

PERT (Program Evaluation and Review Technique) and Gantt charts are both tools used in project
management, but they serve different purposes:

PERT Charts: Gantt Charts:

Visualize task dependencies and their Visualize task progress over time
interrelatedness in a project Emphasize the duration of tasks and their start
Emphasize the sequence and timing of tasks and end dates
Are helpful in planning and scheduling projects They are useful for monitoring progress and
with multiple tasks and dependencies ensuring tasks are completed on time.
In summary, PERT charts focus on the relationships between tasks, while Gantt charts focus on the
progress of jobs over time.

CPM Chart vs Gantt Chart

CPM Gantt Charts:

Project duration is calculated, and critical and Visualises the development of project activity
non-critical pathways are visualised. Presented as a horizontal bar graph.
Shown as a network diagram with connected Demonstrates the resources needed for each
boxes. action
Does not indicate the resources needed Creates a timetable of activities
Plots activity without a time frame on a network
diagram
In conclusion, Gantt charts and CPM can be used in conjunction to monitor critical pathways over time
and keep your project on schedule.
 TYPES OF CPM:

 CPM with a Single Time Estimate

o Used when activity times are known with certainty
Page | o Used to determine timing estimates for the project, each activity in the project, and slack
16 time for activities
 CPM with Three Activity Time Estimates
o Used when activity times are uncertain
o Used to obtain the same information as the Single Time Estimate model and probability
information
 Time-Cost Models
o Used when cost trade-off information is a major consideration in planning
o Used to determine the least cost in reducing total project time

PRACTICAL:

QUESTION: 1

ACTIVITIES IMMIDIATE TIME

PREDESSORS (DAYS)
A - 1
B A 4
C A 3
D A 7
E B 6
F C,D 2
G E,F 7
H D 9
I G,H 4

1. Draw the critical path diagram.

2. Show the early start time and early finish time.
3. Show the critical path.
4. What would happen if activity F was revised to take four days instead of two?
 QUESTION: 2

ACTIVITIES IMMIDIATE TIME (weeks)

PREDESSORS
Page | A - 6
17 B A 3
C A 7
D C 2
E B,D 4
F D 3
G E,F 7

1. Draw the network.

2. Show the critical path.
3. How many weeks will it take to complete the project?
4. Show the early start time and early finish time.
5. How much slack does activity B has?

QUESTION: 3 for the project given in the table below, what is the duration of the project?

ACTIVITIES IMMIDIATE TIME (DAYS)

PREDESSORS
A - 7
B - 23
C A 10
D A 9
E C 11
F C,D 12
G B,F 6
H E,F 4
I G,H 5
QUESTION: 4

ACTIVITIES IMMIDIATE TIME

PREDESSORS (WEEKS)
A - 1
B A 4
C A 3
D B 2
E C,D 5
F D 2
G F 2
H E,G 3

1. Draw the network.

2. Show the critical path.
 3. How many weeks will it take to complete the project?
4. Show the early start time and early finish time.
5. How many activity has slack and how much?

Page | QUESTION: 5
18 ACTIVITIES IMMIDIATE TIME
PREDESSORS (WEEKS)
A - 3
B A 2
C A 4
D A 4
E B 6
F C,D 6
G D,F 2
H D 3
I E,G,H 3

1. Draw the network.

2. Show the critical path.
3. How many weeks will it take to complete the project?
4. Show the early start time and early finish time.
5. Suppose, you want to shorten the completion time as much as possible, and you have the option of
shorting any or all B,C,D and G each week. Which would you shorten?
6. What will be new critical path?

QUESTION: 6

ACTIVITIES IMMIDIATE TIME

PREDESSORS (WEEKS)
1 - 4
2 1 2
3 1 4
4 1 3
5 2,3 5
6 3 6
7 4 2
8 5 3
9 6,7 5
10 8,9 7

1. Draw the network.

2. Show the critical path.
 3. If activities 1 and 10 cannot be shortened, but activities 2 through 9 can be shortened to a
minimum of 1 week each at a cost of $10,000 per week, which activities would you shorten to cut
the project by 4 weeks?

Page | QUESTION: 7
19
Activity Immediate Time (Days)
Predecessor
a m b

A - 1 3 5

B - 1 2 3

C A 1 2 3

D A 2 3 4

E B 3 4 11

F C, D 3 4 5

G D, E 1 4 6

H F, G 2 4 5

a) Draw the network diagram and find the critical path.

b) What is the expected project completion time?

c) What is the probability of completing this project within 16 days?

 QUESTION: 8

Activity Immediate Time (Days)

Predecessor
a m b
Page |
20 A - 1 4 7

B A 2 6 7

C A,D 3 4 6

D A 6 12 14

E D 3 6 12

F B, C 6 8 16

G E, F 1 5 6

 Draw the network diagram and find the critical path.

 What is the expected project completion time?

 What is the probability of completing this project within 16 days?

 QUESTION: 9

Activity Predecessor Normal Crash Normal Cost($) Crash Cost($)

Time Time
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21 A - 4 2 10000 11000

B A 3 2 6000 9000

C A 2 1 4000 6000

D B 5 3 14000 18000

E B, C 1 1 9000 9000

F C 3 2 7000 8000

G E,F 4 2 13000 25000

H D,E 4 1 11000 18000

I H,G 6 5 20000 29000

 Draw the network diagram and find the critical path.

 What is the expected project completion time?

 To shorten the project by 3 weeks, which tasks would be shortened and what would the final
project cost would be?