networking

1. PROJECT
MANAGEMNET
Final project- Quantitative Analysis
Submitted To : Prof. Faizan Wajid
Group Members
Muntaha Maqbool (0001)
Noor-e-Amina (00082)
Aqsa Khalid (0085)
Shahira Shahzad (0083)

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Table of Contents
Acknowledgment……………………………………………………………………………………………………………………………………2
Preface……………………………………………………………………………………………………………………………………………………2
Executive Summary ............................................................................................................................2
PROJECT –LG CORPORATION...............................................................................................................4
Introduction:......................................................................................................................................4
STEPS OF PROJECT MANAGEMENT......................................................................................................4
Six steps of PERT:................................................................................................................................4
LG-Electronics:...................................................................................................................................4
STEP I and II: ACTIVITY LIST and IMMEDIATE PREDECESSORS.............................................................4
Step III: Network Diagram:...............................................................................................................5
Step-iv: Assigning activity times.......................................................................................................5
Optimistic, Most probable and Pessimistic activity time estimates (in weeks): ................................5
Expected Times and Variances .....................................................................................................7
STEP V: Critical Path........................................................................................................................7
StepVI: PROBABILITY OF PROJECT COMPLETION ..............................................................................9
StepVII: Planning and scheduling project costs:PERT/COST..............................................................9
Budgeting Of the Project:.............................................................................................................9
Amount in hundreds(RS) EST.....................................................................................................10
StepVIII: Monitoring and Controlling Project Cost: .........................................................................11
CONCLUSION:-..................................................................................................................................12
References:......................................................................................................................................12

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Acknowledgement
‘‘In the name of ALLAH, the most merciful and the beneficent’’ The Almighty who bestowed
knowledge, health, vigor, to complete this report.
A person is not perfect. He has a limited mind and thinking approaches. It is the guidance from
the great ALLAH that shows the persons, light in the darkness and the person finds his way in
this light. Person is nothing without the helping lights but a helpless creature.
“Life is a learning experience”. We have learned the validity of this statement time and time
again. Every time we think we know something, we look back a year later and realize how little
we know and how much we have learned. This Ufone Report has convinced us again, not in the
learning but also in terms of the vast team of talented people that take part in creating this report.
We believe each person plays a piece of a puzzle to make the complete picture, some pieces are
bigger than others, but without anyone piece the picture would not be completed.
We feel great pleasure and honor to express our gratitude from the citadel of our hearts to the
people whom we met, for their cooperation .Their sympathetic behavior has an ever-lasting
impression on the pages of our memory.
We want to pay tribute to our worthy teachers who are the main source of enlightenment for our
minds. We all students are thankful to them as they prepared us for looking at the matters of life
widely with open minds. This project is one of the sources of knowledge about the “Business”
for us. We are especially thankful to our honorable teacher Prof. Faizan Wajid provided us
guidance, inspiration, suggestions and encouragement that helped us in all the time of research
for and writing of this project.
We are also thankful to the all that person whose cooperation makes us unable to complete the project.
Who helped us in giving information to us for completing this project the end we would like to thank
UCP for allowing us the course which helped us in building our minds to the right track towards
professionalism.
PREFACE
Department of Commerce, The University of Central Punjab has always been admirable in its
efforts to equip the future executives with arms of creativity, flexibility and adaptability to meet
the challenges offered by fast changing business environment.
To achieve the above goals the department is providing both text and practical knowledge to its
students with its available resources.
Text knowledge is very well transferred to the students within the premises of the department;
Practical knowledge requires the kind co-operation of various business organization of the
country.
Faculty members are always trying their best to ask the students to explore the market by
assigning these different field activities and to conduct the different activities…
This report has been made on:-
POJECT MANAGMENT
The key function of our work was to analyze the significant activities through network diagram
of the company .We have done our best efforts to complete this report efficiently and effectively
with all abilities.

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Executive Summary
In this project, the electronics company LG has manufactured industrial vacuum cleaning
systems for many years. Recently a new product research team submitted a report suggesting that
the company consider manufacturing a cordless vacuum cleaner. The new product referred to as
Porta-Vac could contribute to company’s expansion into the household market. The time
required to complete the project is 20 weeks given by the management. The program evaluation
and review technique (PERT) is used in this project management situation. It is a probabilistic
approach and three time estimates are combined to estimate the completion time. In which,
Step 1, Define the project and all of its significant activities and tasks.
Step 2, Develop the relationships between the activities. Decide the predecessors.
Step 3, Draw the network diagram.
Step 4, Assign time and/or cost estimates to each activity.
Step 5, Compute the longest time path through the network (Critical path).
Step 6, Use the network to help plan, schedule, and monitor and control the project. This PERT
analysis was able to provide:-
The projects expected completion time is 17 weeks.
We find the probability that the project meeting the 20 weeks deadline is 96%.
There are 5 critical paths (A, E, H, I, J).
A detailed schedule of activities starting and ending times has been made.

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PROJECT–LG CORPORATION
Introduction:
Project management is a methodical approach to planning and guiding project processes from
start to finish. According to the Project Management Institute, the processes are guided through
five stages: initiation, planning, executing, controlling, and closing. Project management can be
applied to almost any type of project and is widely used to control the complex processes of
software development projects.
STEPS OF PROJECT MANAGEMENT
The program evaluation and review technique (PERT) is used in this project management
situation. It is a probabilistic approach and three time estimates are combined to estimate the
completion time.
Six steps of PERT:
1. Define the project and all of its significant activities and tasks.
2. Develop the relationships between the activities. Decide the predecessors.
3. Draw the network.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network (Critical path).
6. Use the network to help plan, schedule, and monitor and control the project.
7. LG-Electronics:
LG Corporation (formerly Lucky Goldstar) (Korean: Leokki Geumseong is a South
Korean multinational conglomerate corporation. LG makes electronics, chemicals, and telecom
products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG
Telecom and LG Chem in over 80 countries.
The electronics company LG has manufactured industrial vacuum cleaning systems for many
years. Recently a member of the company s new product research team submitted a report
suggesting that the company consider manufacturing a cordless vacuum cleaner. The new
product referred to as Porta-Vac could contribute to company’s expansion into the household
market. The time required to complete the project is 20 weeks given by the management.
STEP I and II: ACTIVITY LIST and IMMEDIATE PREDECESSORS
The first step in planning and scheduling a project is Work Breakdown Structure. This involves
identifying the activities that must be performed in the project. An activity is the job or task that
is the part of the project. The time, cost, resources, requirements, predecessors and person(s)
responsible are identified for each activity.
The term predecessor usually refers to one (or several) task(s), that has (have) to be completed
before another task starts. For example, let's say we have 2 tasks, Task A and Task B. Task B has
Task A as its predecessor, this means that Task B cannot start until Task A is finished.
The table below represents the activities with description and immediate predecessors.

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Activity Description Immediate Predecessor
A Develop Product design -
B Plan Market research -
C
Prepare routing (manufacturing
engineering)
A
D Build prototype model A
E Prepare marketing brochure A
F
Prepare Cost estimates (industrial
engineering)
C
G Do preliminary product testing D
H Complete market survey B, E
I Prepare pricing and forecasting report H
J Prepare final report F, G, I
When the project begins develop market research (A) and plan market research (B) can be
started. The manufacturing engineering (C), Building of prototype model (D) and preparation of
marketing brochure (E) can be started once the development of product design (A) is completed.
Cost estimates (industrial engineering) (F) can be prepared after routing (C) is completed. After
building prototype model (D) preliminary product testing (G) is done. Market survey is
completed (H) after market research (B) is done and marketing broachers (E) are prepared. After
completing the market survey (H) pricing and forecast reports are prepared (I). and in the end the
final report is prepared (J) after preparation of cost estimates (F), product testing (G) and
preparation of pricing and forecast report (I).
Step III: Network Diagram:
Once we have specified all the activities and have decided which activities must precede the
other, we draw a network diagram.
Step-IV: Assigning activity times.
The next step is to assign times estimates required to complete each activity. PERT gives
probabilistic distribution of time based on three time estimates for each activity.
Optimistic, Most probable and Pessimistic activity time estimates (in weeks):
In the table below we have obtained three time estimates for each activity.
OPTIMISTIC TIME (a): the minimum activity time if everything progresses ideally.
MOST PROBABLE TIME (m): the most probable activity time under normal conditions.
PESSIMISTIC TIME (b): the maximum activity time if significant delays are encountered.

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Activity
Optimistic
(a)
Most probable
(m)
Pessimistic
(b)
A 4 5 12
B 1 1.5 5
C 2 3 4
D 3 4 11
E 2 3 4
F 1.5 2 2.5
G 1.5 3 4.5
H 2.5 3.5 7.5
I 1.5 2 2.5
J 1 2 3
F
Cost Estimates
C
Routing
D
Prototype
G
Testing
E
Marketing
H
Market Survey
I
Pricing and
Forecast
J
Final Report FinishA
Prepare Design
Start
B
Plan Market
Research

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Expected Times and Variances
Activity
Expected Time
(Weeks)
Variance
A 6 1.78
B 2 0.44
C 3 0.11
D 5 1.78
E 3 0.11
F 2 0.03
G 3 0.25
H 4 0.69
I 2 0.03
J 2 0.11
Total 32
The following table represents the expected time for the completion of each activity along with
the variance of each activity. To illustrate the PERT procedure with uncertain activity times, let
us consider these three time estimates for the Porta-Vac activities as represented in the table
below.
Information is needed regarding the time required to complete each activity. This information is
used in the calculation of the total time required to complete the project and in the scheduling of
specific activities.
The average or expected time (t) need for the network diagram to be written on the position of
time is calculated as follows;
Expected time (t) = a+4m+b/6
With uncertain activity times, we can use the variance to describe the dispersion or variation in
the activity time values. The variance of the activity time is calculated by using the formula;
∑2 = (b-a/6) ^2
STEP V: Critical Path
The critical path is the longest path route through the network.
This network diagram represents the expected time, earliest start time, earliest finish time, latest
start time and latest finish time for each activity of the project.
Proceeding with the forward pass through the network we can establish the earliest start time
(ES) and earliest finish time (EF) times for each activity. The earliest finish time for the last
activity of the project (J) is 17 weeks. Thus the expected completion time for the project is 17
weeks.

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Next we make the backward pass through the network. The backward pass provides the latest
start time (LS) and latest finish time (LF) times.
The slack time (LS-ES) for each activity is also shown. The activities with zero slack (A, E, H, I
and J) form the critical path for the Porta Vac network.
Activity
Earliest Start
(EST)
Latest Start
(LST)
Earliest Finish
(EFT)
Latest Finish
(LFT)
Slack (LST
- EST)
Critical
Path?
A 0 0 6 6 0 Yes
B 0 7 2 9 7
C 6 10 9 13 4
D 6 7 11 12 1
E 6 6 9 9 0 Yes
F 9 13 11 15 4
G 11 12 14 15 1
H 9 9 13 13 0 Yes
I 13 13 15 15 0 Yes
J 15 15 17 17 0 Yes
A 6
0 6
0 6
D 5
6 11
7 12
G 3
11 14
12 15
J 2
15 17
15 17
FINISH 0
17 17
17 17
C 3
6 9
10 13
F 2
9 11
13 15
START
0 0
0 0
E 3
6 9
6 9
H 4
9 13
9 13
I 2
13 15
13 15
B 2
0 2
7 9

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Step VI: PROBABILITYOF PROJECT COMPLETION
The critical path analysis help us determine that the expected project completion time is 17
weeks. There are significant variation in the time estimates for the activities. Variation in
activities that are on the critical path can affect overall completion – possibly delaying it. PERT
uses the variance of critical path activities to help determine the variance of the overall project. If
the activity times are statistically independent, the project variance is computed by summing the
variances of the critical activities.
Project variance = ∑
1.78+0.11+0.69+0.03+0.11
=2.72
Project standard deviation = √∑
√2.72
=1.65
Due to the independent activity times we also assume that the total completion time follows a
normal probability distribution. To calculate the z value we apply the following formula:
Z = Due date – Expected date of completion / Standard deviation
= 20 – 17 /1.65
=1.82
Using Z = 1.82 and the table for the normal distribution, we find that the probability of the
project meeting the 20-weeks deadline = 0.9656 which is 96%. Thus, even though activity time
variability may cause the completion time to exceed 17-weeks calculations indicate an excellent
chance that the project will be completed before the 20-week deadline.
Step VII: Planning and scheduling projectcosts:PERT/COST
Budgeting Of the Project:
The overall approach in the budgeting process of a project is to determine how much is to be
spent every week/month.

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Activity Predecessor T EST LST Budget/Week(Rs)
A - 6 0 0 3000/6=500
B - 2 0 7 1000/2=500
C A 3 6 10 3000/3=1000
D A 5 6 7 5500/5=1100
E A 3 6 6 1800/3=600
F C 2 9 13 2000/2=1000
G D 3 11 12 6000/3=2000
H B, E 4 9 9 5000/4=1250
I H 2 13 13 1000/2=500
J F, G, I 2 15 15 4000/2=2000
Amount in hundreds (RS) EST

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Amount in hundreds (RS) LST
Step VIII: Monitoring and Controlling ProjectCost:
ACTIVITY TOTAL
BUDGETED
COST
PERCENTAGE
COMPLETION
VALUE OF
WORK
COMPLETED
ACTUAL
COST
ACTIVITY
DIFFERENCE
A 3000 1000 3000 3300 -300
B 1000 100 1000 1600 600
C 3000 100 3000 3000 0
D 5500 100 5500 5700 200
E 1800 100 1800 1800 0
F 2000 10 200 400 200
G 6000 20 1200 1000 -200
H 5000 20 1000 800 -200
I 1000 0 0 0 0
J 4000 0 0 0 0
Total 32300 16700 17600 300
Activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
A 5 5 5 5 5 5
B 5 5
C 10 10 10
D 11 11 11 11 11
E 6 6 6
F 10 10
G 20 20 20
H 12.5 12.5 12.5 12.5
I 5 5
J 20 20
total(week) 5 5 5 5 5 5 6 22 22 33.5 33.5 32.5 32.5 35 35 20 20
Total(Todate) 5 10 15 20 25 30 36 58 80 113.5 147 179.5 212 247 282 302 322
Amountinhundereds(RS)(LST)

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The purpose of controlling and monitoring project cost is to ensure that the project is progressing
on schedule and the costs over run are kept to a minimum.
The value of work completed or the cost to date for any activity can be computed as follows.
Value of work completed: (percentage of work completed)*(Total activity budget)
The activity difference is also of interest.
Activity difference = actual cost-value of work completed
If the activity difference is negative there is a cost underrun (i.e. A, G, H) and if the difference is
positive there is a cost overrun (B, D, F).
CONCLUSION:-
What this PERT analysis was able to provide?
1. The projects expected completion time is 17 weeks.
2. We find the probability that the project meeting the 20 weeks deadline is 96%.
3. There are 5 critical paths (A, E, H, I, J).
4. A detailed schedule of activities starting and ending times has been made.
References:
 https://www.youtube.com/results?search_query=project+network+model+how+we+can+
make+on+word+document
 https://www.youtube.com/results?sp=SBTqAwA%253D&q=project+network+model+ho
w+we+can+make+on+word+document
 https://www.youtube.com/results?search_query=project+network+model
 http://people.brunel.ac.uk/~mastjjb/jeb/or/netanal.html