UNIT - VI  PROJECT MANAGEMENT
What is a project?         “A project is a series of activities or      tasks or operations directed to      accomplishmen...
earLY techNiQUes oF project   MaNaGeMeNt  1.    Gantt’s Bar Chart  2.    Milestone ChartHRM In A Dynamic Environment
NetWorK aNaLYsis      Network Analysis refers to a number of techniques  for the planning and control of complex projects....
What is a NetWorK?         A network is a graphical diagram      consisting of certain configuration of      “Arrows” (²) ...
pert / cpM   techNiQUes          The initial step in PERT/CPM project      scheduling process is the determination of     ...
eXaMpLe Activity            Description        Duration (in    Immediate                                          weeks)  ...
terMs UseD iN a NetWorK   n     Activity: An effort that is required to complete a         part of the project. It is repr...
rULes oF NetWorK coNstrUctioN1.   Each defined activity is represented by one and only one arrow     in the network.2.   B...
rULes oF NetWorK     coNstrUctioN1.       The arrow direction indicates the general progression in time.         Head even...
rULes oF NetWorK coNstrUctioN1.       A network should have only one initial and terminal         node.            A3.    ...
rULes oF NetWorK coNstrUctioN10. Parallel activities between two events, without intervening    events, are prohibited. Wh...
3-2      Network analysis       It is a Planning project Management       It means construction of Variances       It i...
3-2        What is Network       Network analysis is a system which plans projects both large        and small by analyzi...
3-2        Meaning and Definition              According to author – “Network analysis helps to designing,      Planning, ...
3-2      Techniques of Network       PERT      CPM      RAMS      DEP      COPAC      MAP                      Proje...
3-2      Key concepts of Network         Activity         Event         Predecessor Event         Successor Event     ...
3-2      Key concepts of Network       ACTIVITY                Activity means a work. A project consists of several       ...
3-2      Key concepts of Network        Event              It is the beginning or the End of an activity. Events       are...
3-2      Key concepts of Network       Predecessor Event              The event just before another event is called the   ...
3-2      Key concepts of Network       Successor Event              The event just following another event is called the  ...
3-2      Key concepts of Network       Successor Event                In this diagrams       Event 1 is predecessor for th...
3-2      Key concepts of Network       Network        A network is series of related activities and events which         ...
3-2      Key concepts of Network       Dummy activity          A dummy activity is an activity which does not consume any...
3-2      Key concepts of Network       Construction of a project network       A project network consists of a finite num...
3-2      Problem 1      Construct the network diagram for a project with the following activities                  Activit...
3-2      Solution                                        2                                A                               ...
3-2      Solution                                A       D                          1         2       5 HRM In A Dynamic E...
3-2      Solution                                B       E                          1         3       6 HRM In A Dynamic E...
3-2      Solution                                G       G                          2         5       6 HRM In A Dynamic E...
3-2      Solution                                5                                    G                                   ...
3-2      Solution                                2                                    D                                   ...
3-2      CRITICAL PATH METHOD (CPM)                The critical path method (CPM) aims at the      determination of the ti...
3-2       Problem 1      The following details are available reading a project                  Activity      Predecessor ...
3-2       Solution      Start Event                           3        D       End Event                                B ...
3-2       Solution      Path I               A                B          D           F      1                 2           ...
3-2       Solution      Path II            A                   C       E              F      1                2           ...
3-2      Solution      Compare the times for the two paths. Maximum of {22,19} =      22. we see that path I has maximum t...
3-2      Problem 2      Find out the completion time and the critical activities for the following      project.          ...
3-2       Problem 3      Draw a network diagram and determine the critical path for the      following project.           ...
3-2      Solution       We have the following network diagram for the project.                                            ...
3-2      Problem 4      The following details are available reading a project                  Activity      Predecessor  ...
3-2      PERT analysis      INTRODUCTION               Programme Evaluation and Review Technique (PERT) is a tool      tha...
3-2      PERT analysis      The PERT analysis includes 3 Aspects      3. Pessimistic time estimate (tp)      4. Optimistic...
3-2      Problem 1                        Predecessor    Optimistic Time      Most likely time     Pessimistic time       ...
3-2      Solution      From the three time estimates tp, tm, to calculate te for each activity.                           ...
3-2      Solution (contd..)                                 3   D                     6       H                           ...
3-2      Path I               A                B       D        F        H        1              2            3        5  ...
3-2      Path II               A                B       D        G       I        1              2            3        5  ...
3-2      Path III               A                C        E       F        H        1              2             4       5...
3-2      Path IV               A                C        E       G       I        1              2             4       5  ...
3-2      Final      Compare the times for the four paths.      Maximum of { 48,31,49,32} = 49 HRM In A Dynamic Environment
3-2      Problem 2                                 Optimistic Time      Most likely time     Pessimistic time             ...
3-2      Solution      From the three time estimates tp, tm, to calculate te for each activity.                           ...
3-2      Solution (contd..)                                3        F                   C                       12        ...
3-2      Problem 3                                   Optimistic Time   Most likely time   Pessimistic time                ...
3-2      Solution      From the three time estimates tp, tm, to calculate te for each activity.                           ...
3-2      Solution (Network)                                                    3                                    B     ...
3-2      Problem 4                                   Optimistic Time   Most likely time   Pessimistic time                ...
3-2      Problem 5                                   Optimistic Time   Most likely time   Pessimistic time                ...
3-2      INTRODUCTION TO PROJECT CRASHING      1.The process of shortening the time to complete a project is called crashi...
3-2      STEPS IN PROJECT CRASHING      Step:1      Find the critical path with the normal times and normal costs for the ...
3-2      STEPS IN PROJECT CRASHING      Crash cost/Time period = Crash cost-Normal cost/Normal time-Crash time      Step:3...
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Unit vi

  1. 1. UNIT - VI PROJECT MANAGEMENT
  2. 2. What is a project? “A project is a series of activities or tasks or operations directed to accomplishment of a desired objective.” “A project is a temporary endeavour undertaken to create a "unique" product or service.”HRM In A Dynamic Environment
  3. 3. earLY techNiQUes oF project MaNaGeMeNt 1. Gantt’s Bar Chart 2. Milestone ChartHRM In A Dynamic Environment
  4. 4. NetWorK aNaLYsis Network Analysis refers to a number of techniques for the planning and control of complex projects.The two most frequently used forms of network planning are:1. Programme Evaluation and Review Technique (PERT)2. Critical Path Method (CPM)HRM In A Dynamic Environment
  5. 5. What is a NetWorK? A network is a graphical diagram consisting of certain configuration of “Arrows” (²) and “Nodes” (( ) for showing the logical sequence of various tasks to be performed to achieve the project objective.HRM In A Dynamic Environment
  6. 6. pert / cpM techNiQUes The initial step in PERT/CPM project scheduling process is the determination of all specific activities that comprise the project and their relationships.HRM In A Dynamic Environment
  7. 7. eXaMpLe Activity Description Duration (in Immediate weeks) predecessor A Obtain the budget 2 - approval B Obtain the machine 5 A C Hire the operator 1 A D Install the machine 1 B E Train the operator 6 C F Produce the goods 1 D,EHRM In A Dynamic Environment
  8. 8. terMs UseD iN a NetWorK n Activity: An effort that is required to complete a part of the project. It is represented by “²”. 2. Node: It represents the beginning or completion of an activity. It is represented by “a”HRM In A Dynamic Environment
  9. 9. rULes oF NetWorK coNstrUctioN1. Each defined activity is represented by one and only one arrow in the network.2. Before an activity can be undertaken, all activities preceding it must be completed.3. The arrows depicting various activities are indicative of logical procedure only. The length and bearing of the arrows are of no significance. HRM In A Dynamic Environment
  10. 10. rULes oF NetWorK coNstrUctioN1. The arrow direction indicates the general progression in time. Head events and Tail events.3. When a number of activities terminate at one event, it indicates that no activity emanating from that event may start unless all activities terminating there have been completed.5. Events are identified by numbers.7. The activities are identified by the numbers of their starting and ending events or by alphabets. HRM In A Dynamic Environment
  11. 11. rULes oF NetWorK coNstrUctioN1. A network should have only one initial and terminal node. A3. C Merge Event B B A Burst Event C HRM In A Dynamic Environment
  12. 12. rULes oF NetWorK coNstrUctioN10. Parallel activities between two events, without intervening events, are prohibited. When two or more parallel activities in a project have the same head and tail events, dummy activities are needed in constructing the network. Dummy activities do not consume time or resources. An efficient network contains a minimum number of dummy activities required to portray the correct precedence relationships.11. Looping is not permitted in a network. HRM In A Dynamic Environment
  13. 13. 3-2 Network analysis  It is a Planning project Management  It means construction of Variances  It is process Technique  It is outsourcing analysis HRM In A Dynamic Environment
  14. 14. 3-2 What is Network  Network analysis is a system which plans projects both large and small by analyzing the project activities  Projects are broken down to individual tasks or activities, which are arranged in logical sequential order  A network diagram is constructed which presents the Relationship b/w all the activities are involved HRM In A Dynamic Environment
  15. 15. 3-2 Meaning and Definition According to author – “Network analysis helps to designing, Planning, Coordinating and decision making in order to accomplish the project economically in the minimum available time with the limited available resources.” HRM In A Dynamic Environment
  16. 16. 3-2 Techniques of Network  PERT CPM RAMS DEP COPAC MAP Project analysis RPSM LCS MOSS PCS GERT HRM In A Dynamic Environment
  17. 17. 3-2 Key concepts of Network  Activity  Event  Predecessor Event  Successor Event  Net work  Dummy activity  Construction of Project network HRM In A Dynamic Environment
  18. 18. 3-2 Key concepts of Network ACTIVITY Activity means a work. A project consists of several activities. An activity takes time. It is represented by an arrow in a diagram of the network. Eg. An activity in house construction can be flooring. Flooring HRM In A Dynamic Environment
  19. 19. 3-2 Key concepts of Network Event It is the beginning or the End of an activity. Events are represented by circles in a project network diagram. The events in a network are called the nodes. Start Stop Punching HRM In A Dynamic Environment
  20. 20. 3-2 Key concepts of Network Predecessor Event The event just before another event is called the predecessor event HRM In A Dynamic Environment
  21. 21. 3-2 Key concepts of Network Successor Event The event just following another event is called the successor event 3 1 2 4 6 5 HRM In A Dynamic Environment
  22. 22. 3-2 Key concepts of Network Successor Event In this diagrams Event 1 is predecessor for the event 2 Event 2 is successor to event 1 Event 2 is predecessor for the events 3,4 and 5 Event 4 is predecessor for the event 6 Event 6 is successor to events 3, 4 and 5 HRM In A Dynamic Environment
  23. 23. 3-2 Key concepts of Network Network  A network is series of related activities and events which result in an end product or service.  The activities shall follow a prescribed sequence.  It is construction area of network path HRM In A Dynamic Environment
  24. 24. 3-2 Key concepts of Network Dummy activity  A dummy activity is an activity which does not consume any time.  sometimes it may be necessary to introduce a dummy activity in order to provide connectivity to a network only. HRM In A Dynamic Environment
  25. 25. 3-2 Key concepts of Network Construction of a project network  A project network consists of a finite number of events and activity by adhering to a certain sequential order.  It is a path way of network HRM In A Dynamic Environment
  26. 26. 3-2 Problem 1 Construct the network diagram for a project with the following activities Activity Number of Predecessor Event-Event Activity Activity 1-2 A - 1-3 B - 1-4 C - 2-5 D A 3-6 E B 4-6 F C 5-6 G D HRM In A Dynamic Environment
  27. 27. 3-2 Solution 2 A B 1 3 C 4 HRM In A Dynamic Environment
  28. 28. 3-2 Solution A D 1 2 5 HRM In A Dynamic Environment
  29. 29. 3-2 Solution B E 1 3 6 HRM In A Dynamic Environment
  30. 30. 3-2 Solution G G 2 5 6 HRM In A Dynamic Environment
  31. 31. 3-2 Solution 5 G E 3 6 4 F HRM In A Dynamic Environment
  32. 32. 3-2 Solution 2 D 5 A G B E 1 3 6 C 4 F HRM In A Dynamic Environment
  33. 33. 3-2 CRITICAL PATH METHOD (CPM) The critical path method (CPM) aims at the determination of the time to complete a project and the important activities on which a manager shall focus attention. HRM In A Dynamic Environment
  34. 34. 3-2 Problem 1 The following details are available reading a project Activity Predecessor Duration Event-Event Activity (Weeks) A - 3 B A 5 C A 7 D B 10 E C 5 F D,E 4 First let us construct the network diagram for the given project. We mark the time estimates along the arrows representing the activities HRM In A Dynamic Environment
  35. 35. 3-2 Solution Start Event 3 D End Event B A 5 10 1 2 F 5 6 3 C E 4 7 4 5 HRM In A Dynamic Environment
  36. 36. 3-2 Solution Path I A B D F 1 2 3 5 6 3 5 10 4 with a time of 3+5+10+4 =22 weeks HRM In A Dynamic Environment
  37. 37. 3-2 Solution Path II A C E F 1 2 4 5 6 3 7 5 4 with a time of 3+7+5+4 =19 weeks HRM In A Dynamic Environment
  38. 38. 3-2 Solution Compare the times for the two paths. Maximum of {22,19} = 22. we see that path I has maximum time of 22 weeks. The critical activities are A,B,C,D and F, finally the project completion time is 22 weeks. HRM In A Dynamic Environment
  39. 39. 3-2 Problem 2 Find out the completion time and the critical activities for the following project. D 5 2 20 G 8 A 8 K 6 1 B 3 E 6 H 11 8 10 10 16 I L C 5 F J 9 7 4 7 25 10 HRM In A Dynamic Environment
  40. 40. 3-2 Problem 3 Draw a network diagram and determine the critical path for the following project. Activity Duration Event-Event (Weeks) 1-2 5 1-3 6 1-4 3 2-5 5 3-6 7 3-7 10 4-7 4 5-8 2 6-8 5 7-9 6 8-9 4 HRM In A Dynamic Environment
  41. 41. 3-2 Solution We have the following network diagram for the project. 5 D 2 H A 5 2 5 I 1 B 3 E 6 8 K 6 7 5 9 4 C 3 F 10 J 4 G 7 6 4 HRM In A Dynamic Environment
  42. 42. 3-2 Problem 4 The following details are available reading a project Activity Predecessor Time estimates Activity (Weeks) A - 4 B - 7 C - 3 D A 6 E B 4 F B 7 G C 6 H E 10 I D 3 J F,G 4 K H,I 2 Draw a project network diagram HRM In A Dynamic Environment
  43. 43. 3-2 PERT analysis INTRODUCTION Programme Evaluation and Review Technique (PERT) is a tool that would help a project manager in project planning and control. It would enable him in continuously monitoring a project and taking corrective measures wherever necessary. This technique involves statistical methods. HRM In A Dynamic Environment
  44. 44. 3-2 PERT analysis The PERT analysis includes 3 Aspects 3. Pessimistic time estimate (tp) 4. Optimistic time estimate (to) 5. Most likely time estimate (tm) Formulae te = to + 4tm + tp 6 HRM In A Dynamic Environment
  45. 45. 3-2 Problem 1 Predecessor Optimistic Time Most likely time Pessimistic time Activity Activity estimate (to days) estimate (tm days) estimate (tp days) A - 2 4 6 B A 3 6 9 C A 8 10 12 D B 9 12 15 E C 8 9 10 F D,E 16 21 26 G D,E 19 22 25 H F 2 5 8 I G 1 3 5 HRM In A Dynamic Environment
  46. 46. 3-2 Solution From the three time estimates tp, tm, to calculate te for each activity. 4 *Most likely time Pessimistic time Time estimate Optimistic Time Activity estimate (tm days) estimate (tp to + 4tm +tp Te = to+4tm+tp estimate (to days) days) 6 A 2 16 6 24 4 B 3 24 9 36 6 C 8 40 12 60 10 D 9 48 15 72 12 E 8 36 10 54 9 F 16 84 26 126 21 G 19 88 25 132 22 H 2 20 8 30 5 I 1 12 5 18 3 HRM In A Dynamic Environment
  47. 47. 3-2 Solution (contd..) 3 D 6 H F B A 12 21 5 1 2 6 5 8 4 22 3 10 9 E G 7 C 4 I HRM In A Dynamic Environment
  48. 48. 3-2 Path I A B D F H 1 2 3 5 6 8 4 6 12 21 5 Time for the path : 4+6+12+21+5=48 days HRM In A Dynamic Environment
  49. 49. 3-2 Path II A B D G I 1 2 3 5 7 8 4 6 12 6 3 Time for the path : 4+6+12+6+3=31 days HRM In A Dynamic Environment
  50. 50. 3-2 Path III A C E F H 1 2 4 5 6 8 4 10 9 21 5 Time for the path : 4+10+9+21+5=49 days HRM In A Dynamic Environment
  51. 51. 3-2 Path IV A C E G I 1 2 4 5 7 8 4 10 9 6 3 Time for the path : 4+10+9+6+3=32 days HRM In A Dynamic Environment
  52. 52. 3-2 Final Compare the times for the four paths. Maximum of { 48,31,49,32} = 49 HRM In A Dynamic Environment
  53. 53. 3-2 Problem 2 Optimistic Time Most likely time Pessimistic time Activity estimate (to days) estimate (tm days) estimate (tp days) 1-2 3 6 9 1-6 2 5 8 2-3 6 12 18 2-4 4 5 6 3-5 8 11 14 4-5 3 7 11 6-7 3 9 15 5-8 2 4 6 7-8 8 16 18 HRM In A Dynamic Environment
  54. 54. 3-2 Solution From the three time estimates tp, tm, to calculate te for each activity. 4 *Most likely time Pessimistic time Time estimate Optimistic Time estimate (tm days) estimate (tp to + 4tm +tp Te = to+4tm+tp estimate (to days) days) 6 Activity 1-2 3 24 9 36 6 1-6 2 20 8 30 5 2-3 6 48 18 72 12 2-4 4 20 6 30 5 3-5 8 44 14 66 11 4-5 3 28 11 42 7 6-7 3 36 15 54 9 5-8 2 16 6 24 4 7-8 8 64 18 90 15 HRM In A Dynamic Environment
  55. 55. 3-2 Solution (contd..) 3 F C 12 11 2 5 I A 5 7 6 D 4 4 G 1 8 5 15 B E H 6 7 9 HRM In A Dynamic Environment
  56. 56. 3-2 Problem 3 Optimistic Time Most likely time Pessimistic time Predecessor Activity estimate (to estimate (tm estimate (tp Activity days) days) days) A - 2 5 8 B A 2 3 4 C A 6 8 10 D A 2 4 6 E B 2 6 10 F C 6 7 8 G D,E,F 6 8 10 HRM In A Dynamic Environment
  57. 57. 3-2 Solution From the three time estimates tp, tm, to calculate te for each activity. 4 *Most likely time Pessimistic time Time estimate Optimistic Time estimate (tm days) estimate (tp to + 4tm +tp Te = to+4tm+tp estimate (to days) days) 6 Activity A 2 20 8 30 5 B 2 12 4 18 3 C 6 32 10 48 8 D 2 16 6 24 4 E 2 24 10 36 6 F 6 28 8 42 7 G 6 32 10 48 8 HRM In A Dynamic Environment
  58. 58. 3-2 Solution (Network) 3 B E 6 3 4 F C 7 8 A D G 1 2 5 6 5 4 8 HRM In A Dynamic Environment
  59. 59. 3-2 Problem 4 Optimistic Time Most likely time Pessimistic time Predecessor Activity estimate (to estimate (tm estimate (tp Activity days) days) days) A - 12 14 22 B - 16 17 24 C A 14 15 16 D A 13 18 23 E B 16 18 20 F D,E 13 14 21 G C,F 6 8 10 HRM In A Dynamic Environment
  60. 60. 3-2 Problem 5 Optimistic Time Most likely time Pessimistic time Predecessor Activity estimate (to estimate (tm estimate (tp Activity days) days) days) A - 2 4 6 B - 3 5 7 C A 5 6 13 D A 4 8 12 E B,C 5 6 13 F D,E 6 8 14 HRM In A Dynamic Environment
  61. 61. 3-2 INTRODUCTION TO PROJECT CRASHING 1.The process of shortening the time to complete a project is called crashing and is usually achieved by putting into service additional labor or machines to one activity or more activities. 2. Crashing involves more costs. A project manager would like to speed up a project by spending as minimum extra cost as possible. HRM In A Dynamic Environment
  62. 62. 3-2 STEPS IN PROJECT CRASHING Step:1 Find the critical path with the normal times and normal costs for the activities and identify the critical activities. Step:2 Find out the crash cost per unit time for each activity in the network. This is calculated by means of the following formulae Activity Cost Crash Time & Cost Crash Time Normal Time Normal Time & Cost Activity Time Crash Time Normal Time HRM In A Dynamic Environment
  63. 63. 3-2 STEPS IN PROJECT CRASHING Crash cost/Time period = Crash cost-Normal cost/Normal time-Crash time Step:3 Select an activity for crashing HRM In A Dynamic Environment
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