The document discusses project management and the PERT (Program Evaluation and Review Technique). It defines project management as initiating, planning, executing, controlling, and closing work to achieve goals on time. PERT is a statistical technique to analyze uncertain project activities using three time estimates and probabilistic modeling. It describes drawing network diagrams with events and activities, numbering events, and calculating four types of times in PERT: optimistic, pessimistic, most likely, and expected.

1. PROJECT
MANAGEMENT
UNIT 5
DR. RASHMI PANWAR

2. MEANING OF PROJECT
MANAGEMENT
•Project management is the practice of initiating,
planning, executing, controlling, and closing the work of
a team to achieve specific goals and meet specific
success criteria at the specified time.
•The primary challenge of project management is to
achieve all of the project goals within the given
constraints.

3. IMPORTANCE OF PROJECT MANAGEMENT
• Project management is one of those things that looks easy until
you try it.
• The fundamentals of managing a project from start to finish require
a team of individuals with different talents and skills. Those people
are responsible for planning and executing the project objectives
and that takes more than just labour and materials.
• It’s a hard skill to master, but well worth learning. And here’s why:
• 1. Defines a plan and organises chaos – projects are naturally
chaotic. The primary business function of project management is
organizing and planning projects to tame this chaos. A clear path
mapped out from start to finish ensures the outcome meets the
goals of your project.

4. •2. Establishes a schedule and plan – Without a
schedule, a project has a higher probability of
delays and cost overruns. A sound schedule is
key to a successful project.
•3. Enforces and encourages teamwork – A
project brings people together to share ideas
and provide inspiration. Collaboration is the
cornerstone to effective project planning and
management.

5. • 4 Maximises resources – Resources, whether financial or
human, are expensive. By enforcing project
management disciplines such as project tracking and
risk management, all resources are used efficiently and
economically.
•5. Manages Integration – Projects don’t happen in a
vacuum. They need to be integrated with business
processes, systems and organizations.You can’t build a
sales system that doesn’t integrate with your sales
process and sales organization. It wouldn’t add much
value. Integration is often key to project value.Project
management identifies and manages integration.

6. 6. Controls cost – some projects can cost a significant amount of
money so on budget performance is essential. Using project
management strategies greatly reduces the risk of budget
overruns.
7. Manages change – projects always happen in an environment
in which nothing is constant except change. Managing change is
a complex and daunting task. It is not optional. Project
management manages change.
8. Managing quality – Quality is the value of what you produce.
Project management identifies, manages and controls quality.
This results in a high quality product or service and a happy
client.

7. •9. Retain and use knowledge – projects generate
knowledge or at least they should. Knowledge
represents a significant asset for most businesses. Left
unmanaged knowledge tends to quickly fade. Project
management ensures that knowledge is captured and
managed.
•10. Learning from failure – projects do fail. When they
do, it is important to learn from the process. Project
management ensures that lessons are learned from
project success and failure.

8. SMART APPROACH FOR
PROJECT OBJECTIVES
• S:SPECIFIC
• M:MEASURABLE
• A:ASSIGNABLE
• R:REALISTIC
• T:TIME BOUND

9. PERT AND CPM
• Project management can be understood as a systematic way of
planning, scheduling, executing, monitoring, controlling the
different aspects of the project, so as to attain the goal made at the
time of project formulation.
• The two scheduling methods use a common approach for
designing the network and for ascertaining its critical path.
• PERT(Project evaluation and review technique) and CPM(Critical
Path Method ) are the two network-based project management
techniques, which exhibit the flow and sequence of the activities
and events.

10. COMPARISON PERT CPM
Meaning PERT is a project management
technique, used to manage
uncertain activities of a project.
CPM is a statistical technique
of project management that
manages well defined activities
of a project.
What is it? A technique of planning and
control of time.
A method to control cost and
time.
Orientation Event-oriented Activity-oriented
Evolution Evolved as Research &
Development project
Evolved as Construction
project
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
Estimates Three time estimates One time estimate
Appropriate for High precision time estimate Reasonable time estimate
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non-critical
activities
No differentiation Differentiated
Suitable for Research and Development
Project
Non-research projects like civil
construction, ship building etc.

11. PERT
•The program (or project) evaluation and review
technique (PERT) is a statistical tool used in project
management, which was designed to analyze and
represent the tasks involved in completing a given
project.
•PERT is a method of analyzing the tasks involved in
completing a given project, especially the time needed
to complete each task, and to identify the minimum
time needed to complete the total project.

12. Network and basic components:Graphic representation of projects
operations
Event(node):Spcific physical or intellectual accomplishment in
project plan.
does not consume time
it is a particular instant of time
Activity:is a task or item of work to be done
costumes time,effort,money,resources
it lies between 2 events
preceding event i
Activity ij
Succeeding event j

13. Dummy Activity:an activity which determines only the dependency
of one activity over the other
does not consume any time ie zero time
represented by dotted line
Common errors in network drawing:
formulation of loop:

14. There are three types of errors which are common in network diagram
1) Dangling error: To disconnect an activity before the completion of all activities in a network diagram is
known as dangling.In Figure, the activity 5 to 8, 6 to 7 are known as dangling error. These are not last
activities in the network.
2) Looping error: Looping error is also known as cyclic error in the network. Drawing an endless loop in a
network diagram is known as error of looping as shown in Fig.

15. 3 Redundancy error: Unnecessarily inserting the dummy activity in a
network diagram is known as error of redundancy as shown in Figure
in which putting an dummy activity from 10 to 12 is a redundancy
error.If a dummy activity is the only activity is the only activity
emanating from an event ,it can be eliminated

16. NETWORK ANALYSIS:ACTIVITY
• PERT activity: the actual performance of a task which consumes time
and requires resources (such as labor, materials, space, machinery). It
can be understood as representing the time, effort, and resources
required to move from one event to another.
• A PERT activity cannot be performed until the predecessor event has
occurred.
• Predecessor activity, successor activity ,concurrent activity, dummy
activity
• PERT sub-activity: a PERT activity can be further decomposed into a
set of sub-activities. For example, activity A can be decomposed into
A1, A2 and A3. Sub-activities have all the properties of activities; in
particular, a sub-activity has predecessor or successor events just like
an activity. A sub-activity can be decomposed again into finer-grained
sub-activities.

17. Rules for network construction
1 Rules for constructing network
For the construction of a network, generally, the following rules are followed:
(i) Each activity is represented by one and only one arrow.(i.e) only one activity can connect any two nodes.
(ii) No two activities can be identified by the same head and tail events.
(iii) Nodes are numbered to identify an activity uniquely. Tail node (starting point) should be lower than the head node (end point) of an
activity.
(iv) Arrows should not cross each other.
(v) Arrows should be kept straight and not curved or bent.
(vi) Every node must have atleast one activity preceding it and atleast one activity following it except for the node at the beginning and at the
end of the network.

18. Numbering the Events
After the network is drawn in a logical sequence, every event is assigned a number. The number sequence must be
such as to reflect the flow of the network. In event numbering, the following rules should be observed:
(i) Event numbers should be unique.
(ii) Event numbering should be carried out on a sequential basis from left to right.
(iii) The initial event is numbered 0 or 1.
(iv) The head of an arrow should always bear a number higher than the one assigned at the tail of the arrow.
(v) Gap should be left in the sequence of event numbering to accommodate subsequent inclusion of activities, if
necessary.
Remark: The above procedure of assigning numbers to various events of a network is known as Fulkerson’s Rule.

20. EVENTS OR NODES
•PERT event: a point that marks the start or completion
of one or more activities. It consumes no time and uses
no resources. When it marks the completion of one or
more activities, it is not "reached" (does not occur) until
all of the activities leading to that event have been
completed.
•MERGE event: Node where two or more activities
merge,>1
•BURST event: Node from which two or more activities
start,>0
•MERGE AND BURST:>1

21. TIME
PERT has defined 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

22. DRAWING OF SIMPLE PROJECT
NETWORKS

27. • THANK YOU