Chapter 8

PROJECT
MANAGEMENT AND
MAINTENANCE

Copyright 2012 John Wiley & Sons, Inc.

LEARNING OUTCOMES (Project
Management)

 Define project management

 Explain the three stages of project
management
 Construct the Project Evaluation and Review
Techniques (PERT) network of a project
 Determine the critical path and critical activities,
earliest event time, latest event time, slack
activities and project completion time.
LEARNING OUTCOMES
(Maintenance)

 Define maintenance in operation

 Discuss the importance of maintenance
 Explain the types of maintenance
What is a project

 A project is an interrelated set of activities

that has definite starting and ending
points toward achieving a unique
outcome. Three characteristics of a
project are:
i. Single unit
ii.Many related activities
iii. Difficult to estimate completion time
Projects

JAN FEB MAR APR MAY JUN

Build A

A Done

Build B

B Done

Build C

C Done

Build D

Ship On time!

Unique, one-time operations designed to

accomplish a specific set of objectives in a limited
time frame.
What is project management

 The application of knowledge, tools, skill,

and techniques to project activities in order
to meet project requirements

 Planning, scheduling and controlling of

resources, such as equipment, workforce
and materials, so that the stages meet the
time, costs and technical constraints of the
project
 Examples of Projects

► Building Construction

► Research Project
The three stages of project
management

 Planning - goal setting, project definition,

team organization
 Scheduling - relating people, money, and
supplies to specific activities and activities
to one and other
 Controlling - monitoring resources, costs,
quality, and budgets; revising plans and
shifting resources to meet time and cost
demands
 Project Management Activities
► Planning ► Scheduling
► Objectives
► Resources ► Project
► Work break-down activities
structure
► Organization
► Start & end
times
► Network

► Controlling
► Monitor, compare, revise, action
Project Planning, Scheduling, and
Controlling

Figure 3.1
 Time/cost estimates
Project Planning, Scheduling, and
Budgets
Controlling Engineering diagrams
Cash flow charts
Material availability details

Budgets
Delayed activities report
Slack activities report

CPM/PERT
Gantt charts
Milestone charts
Figure
Cash 3.1schedules
flow
 Project Planning, Scheduling,
and Controlling
Project Planning
Time/cost estimates
1. Setting goals
Budgets
2. Defining the project
Engineering diagrams
3. Tying needs into timed project
Cash flow charts
activities
Material availability details
4. Organizing the team
Project Scheduling
1. Tying resources to specific CPM/PERT
activities Gantt charts
2. Relating activities to each other Milestone charts
3. Updating and revising on a Cash flow schedules
regular basis
Project Controlling
Reports
1. Monitoring resources, costs, quality,
• budgets
and budgets
• delayed activities
2. Revising and changing plans
• slack activities
3. Shifting resources to meet demands

Before Project During Project

Project Management Techniques

► Gantt chart
► Critical Path Method

(CPM)
► Program Evaluation

and Review Technique

(PERT)
PERT and CPM

PERT: Program Evaluation and

Review Technique
CPM: Critical Path Method

 Graphically displays project activities

 Estimates how long the project will take
 Indicates most critical activities
 Show where delays will not affect project
Project Evaluation and review technique
(PERT) network of a project

► Network techniques
► Developed in 1950s
► CPM by DuPont for chemical plants (1957)
► PERT by Booz, Allen & Hamilton with the U.S.
Navy, for Polaris missile (1958)
► Consider precedence relationships and
interdependencies
► Each uses a different estimate of activity times
Six Steps PERT & CPM

1. Define the project and prepare the

work breakdown structure
2. Develop relationships among the
activities - decide which activities must
precede and which must follow others
3. Draw the network connecting all of the
activities
Six Steps PERT & CPM

4. Assign time and/or cost estimates to

each activity
5. Compute the longest time path through
the network – this is called the critical
path
6. Use the network to help plan,
schedule, monitor, and control the
project
 Questions PERT & CPM
Can Answer

1. When will the entire project be

completed?
2. What are the critical activities or tasks in
the project?
3. Which are the noncritical activities?
4. What is the probability the project will be
completed by a specific date?
Questions PERT & CPM
Can Answer

5. Is the project on schedule, behind

schedule, or ahead of schedule?
6. Is the money spent equal to, less than, or
greater than the budget?
7. Are there enough resources available to
finish the project on time?
8. If the project must be finished in a shorter
time, what is the way to accomplish this
at least cost?
 Draw the network that connects all
the activities

 Two approaches for drawing a project network

using :
i. Activity On Node (AON) – the nodes designate
activities

ii. Activity On Arrow (AOA) – the arrows

represent activities

We will focus on AOA

8-20
A Comparison of AON and AOA
Network Conventions
 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
(a) A B C B, which comes
before C A B C
A A
A and B must both
(b) C be completed
before C can start C
B B
B
B and C cannot
(c) A begin until A is B
completed A
C C
 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D

C cannot begin
until both A and B
A C are completed A C
(e) D cannot begin Dummy activity
until B is
B D completed
A dummy activity B D
is introduced in
 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

B and C cannot
begin until A is
completed
A B D D cannot begin A B D
until both B and
(f) C are completed Dummy
A dummy C
C activity
activity is again
introduced in
AOA
Project Network – Activity on Arrow AOA
Project Network – Activity on Node AON
Network Conventions
 EXAMPLES OF THE USE OF DUMMYACTIVITY
Network concurrent activities

a
a 2

1 2
1 Dummy

b 3
b
WRONG!!! RIGHT 

Activity c not required for e

WRONG !
a
a e
d
1
b 1 b
e
d
c
2

c
WRONG!!!
RIGHT 

RIGHT 
 WRONG!!! RIGHT!!!

a d a d
1 1

b e b
2 2 4
e

c f c f
3 3

a precedes d.
a and b precede e,
b and c precede f (a does not precede f)
AOA Example
Table 3.1 Milwaukee Paper Manufacturing’s Activities and Predecessors
IMMEDIATE
ACTIVITY DESCRIPTION PREDECESSORS
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G
AOA Example
Example 1- A simple network
Consider the list of four activities for making a simple product:

Activity Description Immediate

predecessors
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C

Immediate predecessors for a particular activity are the

activities that, when completed, enable the start of the activity
in question.
 Sequence of activities
 Can start work on activities A and B anytime, since
neither of these activities depends upon the
completion of prior activities.
 Activity C cannot be started until activity B has been
completed
 Activity D cannot be started until both activities A and
C have been completed.
 The graphical representation (next slide) is referred to
as the PERT/CPM network
 Network of Four Activities
Arcs indicate project activities

A D
1 3 4

B C

Nodes correspond to the beginning

and ending of activities
Example 2
Develop the network for a project with following activities and
immediate predecessors:
Activity Immediate
predecessors
A -
B -
C B
D A, C
E C
F C
G D,E,F

Try to do for the first five (A,B,C,D,E) activities

Network of first five activities

A D
1 3 4

E
B

C 5
2
We need to introduce
a dummy activity
 Network of Seven Activities
1 A 3 D 4 G
7
dummy E
B
C 5 F
2 6
•Note
how the network correctly identifies D, E, and F as the
immediate predecessors for activity G.
•Dummy activities is used to identify precedence relationships
correctly and to eliminate possible confusion of two or more
activities having the same starting and ending nodes
•Dummy activities have no resources (time, labor, machinery, etc) –
purpose is to PRESERVE LOGIC of the network
Crashing the Project
8-39
Scheduling with activity time

Activity Immediate Completion

predecessors Time (week)
A - 5
B - 6
C A 4
D A 3
E A 1
F E 4
G D,F 14
H B,C 12
I G,H 2
Total …… 51

This information indicates that the total time required to complete

activities is 51 weeks. However, we can see from the network that
several of the activities can be conducted simultaneously (A and B, for

example).
KLONE COMPUTERS, INC
Precedence Relationships Chart

Immediate Estimated
Activity Predecessor Completion Time
A None 90
B A 15
C B 5
D G 20
E D 21
F A 25
G C,F 14
H D 28
I A 30
J D,I 45
 PERT For Dealing With Uncertainty
 So far, times can be estimated with relative certainty, confidence

 For many situations this is not possible, e.g Research, development,

new products and projects etc.

 Use 3 time estimates

m= most likely time estimate, mode.
a = optimistic time estimate,
b = pessimistic time estimate, and

Expected Value (TE) = (a + 4m + b) /6

Variance (V) = ( ( b – a) / 6 ) 2
Std Deviation (δ) = SQRT (V)

Scheduling, PERT, Critical Path Analysis

Precedences And Project Activity Times
Immediate Optimistic Most Likely Pessimistic EXP Var S.Dev
Activity Predecessor Time Time Time TE

V 

a - 10 22 22 20 4 2
b - 20 20 20 20 0 0
c - 4 10 16 10 4 2
d a 2 14 32 15 25 5
e b,c 8 8 20 10 4 2
f b,c 8 14 20 14 4 2
g b,c 4 4 4 4 0 0
h c 2 12 16 11 5.4 2.32
I g,h 6 16 38 18 28.4 5.33
j d,e 2 8 14 8 4 2
Scheduling, PERT, Critical Path Analysis