PROJECT MANAGEMENT

PROJECT MANAGEMENT SKILLS

By
Sanjay Sharma
BE (Civil Engineering)
MBA (International Business Operations)
PhM (Infrastructure Management)

LECTURE OUT LINE

Introduction to Project Management
To understand the project Life Cycle
1. Project Planning
2. W B S
3. Project Scheduling 4. Project Control
To apply tools and technique's
Gantt chart /& Mail stone chart
CPM
PERT & Probabilistic Activity Times
Project Crashing and Time-Cost Trade-off
Describe how CPM / PERT have developed and
merged together to provide a useful technique
for managing projects.

What is Project?
Definition:
Set of inter-related activities
Unique, one-time operation activity or effort
to plan, implement, and control the
management of large, one time projects
Application:
Used in Construction, Shipbuilding, Weapons,
Systems Development, etc.
Applies to uncertain technology projects
Applies to variable cost resource allocation

Project Characteristics
Set of Activities
Single unit
Money & Time related
General purpose
High labor skills required

Project Elements
Objective of Project
Management
Scope (Limitations / Boundary)
Contract requirements
Schedules
Resources (Physical)
Personnel (Psychological)
Control
Risk and problem analysis

Generic Project Life Cycle

EXAMPLES OF
PROJECTS

Examples of Projects
Building construction

Examples of Projects
Building construction
New product introduction
New!
New!
Improved!
Improved!
9 Nude Sandalfoot
Medium to Tall (B)

No nonsense

Sheer t
ais e
to w
tyhos
pan

Examples of Projects
Building construction
New product introduction
Training seminar

Examples of Projects

Building construction
New product introduction
Training seminar
Research project

Examples of Projects
Building construction
New product introduction
Training seminar
Research project
S/W development
Planning concert, football games, or
basketball tournaments

Project Scope
Scope statement
A document that provides an understanding,
justification, and expected result of a project

Statement of work
written description of objectives of a project

Work breakdown structure

breaks down a project into components,
subcomponents, and activities

What is Project Management? (PM)

PM is the application of knowledge,
skills, tools and techniques to
project activities in order to meet
project requirements.
Project Management

is an art.
is a science.
has a set of tools and
methods.

Effective Project Managers

Qualities of Project Manager:
Project Manager is the most important member of project team

Lead by example
Visionaries
Technically
competent
Decisive/pivotal
Good
communicators

Good motivators
Stand up to exert
when necessary
Support team
members
Encourage new
ideas

Process of Project Management

Project Planning
Project Scheduling
Project Control
Project Team

made up of individuals from various areas

and departments within a company

Matrix Organization

a team structure with members from

functional areas, depending on skills
required

Mechanism of Planning
Define project objective (SMART)
Define work breakdown structure (WBS)
Identify tasks and subtasks -- deliverables
Lowest element stand alone work package

Identify tasks relationship

Identify possible risks
Estimate work packages (people, time, etc.)
Create initial schedule
Iterate plan (Procedure)
Document

Benefits of the Planning

Framework for communication
Clients and coworkers

Allocate resources
Personnel, equipment and facilities, budget

Benchmark to measure progress

OBJECTIVES OF
PROJECT MANAGEMENT

Objectives of Project management

To complete project within
elapsed time
To ensure optimum utilization of
available resources without delay
To complete a project with a
minimum of capital investment.

PROJECT MANAGEMENT
PROCESS

Project Management Process

Planning
Objectives
Resources
Work breakdown sched.
Organization

Project Management Process

Planning
Objectives
Resources
Work breakdown sched.
Organization

Scheduling
Project
activities
Start &
end times
Network

Project Management Process

Scheduling

Planning
Objectives
Resources
Work breakdown sched.
Organization

Project
activities
Start &
end times
Network

Controlling
Monitor, compare,
revise, action

PROJECT PLANNING

Project Planning

Establishing objectives
Defining project
Creating work breakdown
structure (WBS)
Determining resources
Forming organization

Work Breakdown Structure (WBS)

First Step in Project Management
Begins with a Work Breakdown
Lists the WHAT of a Project
Begins with Finished Project
Consists of Tree Chart, with Each Branch Listing the
WHATs at that Level

Then List Each Task that Must Be Completed to

Accomplish the WHAT
Start at top, progressively break work down into work
packages
Roll up the packages for bottom up estimating
Packages give clear work assignments

Splits work into manageable, logical packages

Make sure packages can be tested for
completeness

Project Organization

Project Organization
Often temporary structure
Uses specialists from entire company
Headed by project manager
Coordinates activities
Monitors schedule
& costs
Eng. Eng.
Permanent
Mkt.
Acct.
structure called
matrix organization
Mgr.

PROJECT SCHEDULING

Project Scheduling

nth
F
Mo
M
A
M

gn
Desi
Build
t
Tes
v
Acti

ity

PERT

Sequencing activities
Identifying precedence
relationships
Determining activity times
& costs
Estimating material &
worker requirements
Determining critical
activities

Project Scheduling Techniques

Gantt chart
Critical Path Method
(CPM)
Program Evaluation &
Review Technique
(PERT)

Project Scheduling Techniques

More popular Techniques of Network are:
CPM
Critical Path Method
PERT
Programme Evaluation and Review Method
LCS
Least Cost Method
RAMS Resource Allocation and Multi-project
Scheduling

MAP
Manpower Allocation Procedure
RPSM Resource Planning and Scheduling
Method
GERT Graphical Evaluation and Review
Technique

PROJECT CONTROL

Project Control
Periodical check list concerned with:
Time management
Cost management
Quality management
Performance management
Earned Value Analysis

a standard procedure for numerically

measuring a projects progress, forecasting
its completion date and cost and
measuring schedule and budget variation

Communication
Enterprise project management

GANTT CHART

Gantt Chart
Gantt Chart was developed by
Henry Laurence Gantt (1861-1919) was
a mechanical engineer and management
consultant who is most famous for
developing the Gantt chart in the
1910s. These Gantt charts were
employed
on
major
infrastructure
projects including the Hoover Dam and
Interstate highway system. He refined
production control and cost control
techniques.

Example of Gantt Chart

0

Month
4

Activity
Design house
and obtain
financing
Lay foundation
Order and
receive
materials
Build house
Select paint
Select carpet
Finish work

5
Month

10

Gantt Chart-Activities in Buy a House

BUY A HOUSE

LOCATION

FINANCING

FIND
HOUSE

- Criteria

- Determine
affordability

- Type of
House

- Visit
Locations

- Determine
mortgage
provider

- Find Real
Estate
Agent

- Lockup
mortgage
commitment

- Look for
House

- Make
Offer, P&S
Agreem't

10

- Closing

TASK
1-criteria
2-visit loc.
3-affordability
4-mortgage co
5-mortg lock
6-type of hse
7-real est agent
8-look for hse
9-offer, P&S
10-closing

PREDECESSOR
3
1
3
4
1
2, 6
7
5, 8
9

Gantt Chart Buy a House

ID
1

Task Name
BUY HOUSE

LOCATION

Determine location criteria

Visit key locations

FINANCING

Determine affordability

Assess Mortagg Provider

Secure Mortagg Commitmt

FIND HOUSE

10

Type of House

11

Find RealEstate Agent

12

Look for House

13

Make Offer, P&S Agreement

14

Closing

ek 1
M T W T

Week 2
S S M T W T

2/5
2/5

2/5

2/14
2/5

Week 3
S S M T W T

Week 4
S S M T W T

TASK
1-criteria
2-visit loc.
3-affordability
4-mortgage co
5-mortg lock
6-type of hse
7-real est agent
8-look for hse
9-offer, P&S
10-closing

2/24

Simple
Simple Gantt
Gantt Chart
Chart View
View

PREDECESSOR
3
1
3
4
1
2, 6
7
5, 8
9

CPM & PERT

CPM & PERT

Network techniques
Developed in 1950s
CPM by DuPont for chemical plants In 1957
suitable for Civil & Mechanical Projects
PERT by U.S. Navy for Polaris missile in 1958
consulting with M/s Booz, Allen & Hamilton

Consider precedence relationships &

interdependencies
Each uses a different estimate of activity
times

CPM & PERT Steps

Identify activities
Determine sequence
Create network
Determine activity times
Find critical path
Earliest & Latest start times
Earliest & Latest finish times
Slack or Float

Questions Answered by PERT & CPM

Completion date?
On schedule? Within budget?
Probability of completing by ...?
(Duration)

Critical activities?
Enough resources available?
How can the project be finished early
at the least cost?

Constructing Networks

Graphical Representation of
Events and Activities
Flow Charting - Uses Nodes and
Arrows
Arrows
An arrow leads from tail to head
directionally

Nodes
A node is represented by a circle or any
mathematical symbol
Node

Arrow

Activity On Node (AON)

Task is Represented by Node as the
Completion of an Activity
Arrows Represent the Sequential
Linkages Between Activities
For Example, Node 1 is Begin, Node 2
is Complete Task 1, Node 3 is
Complete Task 2
1

Activity On Arrow (AOA)

Task is Represented by an Arrow
Bounded on Either End by a Node
(Event)
Each Event is Identified by a Number
The Activity is Designated by the
Leading Event Number and the
Following Event Number - i.e. Activity
1-2
1

Designating Task Relationships

Sequential vs. Concurrent Activities

1

Sequential Task Relationship

2
1

4
3

Concurrent Task Relationships

Designating DUMMY Activities

Represented by Dashed Arrows
Show Sequential Relationships
Among Tasks, but Take No time or
Resources
Dummy Activity 2-3
indicates that both
Activities 1-2 and 2-3 must
be Completed before
beginning Activity 3-4

4
3

Network Terms
Project: Obtain a college degree - B. Tech.
Register

1
Event (Node)

Attend class,
study etc.
4 Years
Activity
(Arrow)

Receive
degree

2
Event (Node)

Activity
Relationships

Activity Relationships

Activity Relationships

2
A

1
B
A & B can occur
concurrently

Activity Relationships
A must be done
before C & D can
begin

2
A

AC

1
B

Activity Relationships

2
A

1
B

4
E
B & C must be done
before E can begin

Activity Relationships
A must be done
before C & D can
begin

2
A

1
B
A & B can occur
concurrently

4
E
B & C must be done
before E can begin

Dummy Activities
Activities are defined often by
beginning & ending events
Example: Activity 2-3

Every activity must have unique pair

of beginning & ending events

It is an imaginary activity
Consume no Time or Resources
Dummy activities maintain precedence or
logical sequence of activities.

Dummy Activities
Example

Dummy Activities Example

Incorrect
2-3
1-2

11

3-4

22

2-3

33

44

Dummy Activities Example

Incorrect

2-3
3-4

1-2

11

22

2-3

33

44
Different activities;
same designation

Dummy Activities Example

2-3

Incorrect
1-2

3-4

11

22

Correct

11

1-2

22
2-3

2-3
2-4

33

33

44
44

4-5

3-4: Dummy
activity

55

Some more Example of Dummy Activities

Ex I
A Printing invitation Cards
B Collection of Address
C Dispatching of Cards

22
2-3: Dummy
activity

11
B

33

44

Some more Example of Dummy

Activities
Ex II
If A & E are concurrent
B is after A & E and
F is after E

Labeling the Events by

Dr. Fulkersons Rules:
Numbering the events by DR. Fulkersons rules:
There is a single initial event in the net work diagram.
This initial event will have arrows coming out of it and
none entering it. Number this initial event as 1.
Neglect all the arrows emerging out of the initial
event numbered 1. Doing so, it will apparently
provide one or more new initial events.
Number these apparently produced new initial events
as 2, 3, 4 etc.
Again neglect all emerging arrows from these
numbered events. This will create few more initial
evens.
Follow rule 3.
Continue this operation until the last event, which has
no emerging arrows, is numbered.

Numbering the Events

D

oo

B
A

m
m

qq

nn

ss

G
I

pp

rr

tt

Network Example
Youre a project manager for Bechtel.
Construct the network.
Activity
A
B
C
D
E
F
G
H

Predecessors
-A
A
B
B
C
D
E, F

Network Example - AON

B
A

Z
H

Network Example - AOA

Activity
A
B
C
D
E
F
G
H

Predecessors
-A
A
B
B
C
D
E, F

Rough arrow diagram

B
1

F
4

Network Example - AOA

B
1

H
5

F
4

Final Arrow Diagram

C P M Technique - foretaste
Activity oriented technique
Single Time estimation
Designed for repetitive projects
Not Statistically analyzed
Demarcates critical activities
Dummy activities are not necessary
Employs words like arrow diagram,
nodes and floats etc
Suitable for industrial settings, plant
maintenance, civil construction
projects etc.

Critical Path Analysis

Example
Event
ID

A
B
C
D
E
F
G

Pred.
None

A
B
B
D
C
F, E

Description

Time
(Wks)

Prepare Site
Pour fdn. & frame
Buy shrubs etc.
Roof
Do interior work
Landscape
Move In

1
6
3
2
3
4
1

Critical Path Analysis Example

Event
ID

A
B
C
D
E
F
G

Acty..
1-2

2-3
3-4
3-5
5-6
4-6
6-7

Description

Time
(Wks)

Prepare Site
Pour fdn. & frame
Buy shrubs etc.
Roof
Do interior work
Landscape
Move In

1
6
3
2
3
4
1

Critical Path Analysis Example

Event
ID

A
B
C
D
E
F
G

Acty..
1-2

2-3
1
3-4
3-5
5-6
4-6
6-7

A.1

B.6
2

C.3

3
D.2

F.4
E.3

G.1

Different paths from network:

1-2-3-4-6-7 - 15 (Critical Path)
1-2-3-5-6-7 - 13

Earliest Start Time & Finish Steps

Begin at starting event & work forward
EST = 0 for starting activities
EST is earliest start

EFT = EST + Activity time

EFT is earliest finish

EST = Maximum EFT of all

predecessors for non-starting activities

Latest Start Time & Finish Steps

Begin at ending event & work
backward
LFT = Maximum EFT for ending
activities
LFT is latest finish; EFT is earliest finish

LST = LFT - Activity time

LST is latest start

LFT = Minimum LST of all successors

for non-ending activities.

Earliest, Latest & Slack durations

Activity
A 1-2
B 2-3
C 3-4
D 3-5
E 5-6
F 4-6
G 6-7

Earliest
Act.
EF
Dura. ES
0
1
1
1
7
6
3
7
10
2
7
9
3
9
11
4
14
10
1
14
15

Latest

LS
0
1
7
9
11
10
12

LF
1
7
10
11
14
14
15

Slack
0
0
0
2
3
0
0

PERT
&
Time Estimates

PERT Technique - foretaste

Event oriented technique
Three time estimation
Use of dummy activities are required
representing the proper sequence
A probabilistic model with uncertainty
in activity duration
Analyzed statistically
Employs words Network diagram,
events and Slack etc

Activity Time Estimates

CPM - One Time Estimate per
Activity
PERT - Three Time Estimates per
Activity
to = Optimistic Time Estimate
tm = Most Likely Time Estimate
tp = Pessimistic Time Estimate

Can Calculate Activity Mean Time

Estimate and Variance

PERT Time Estimates

Activity Mean Time Estimate = te

Activity Variance Estimate = Sigmae

te = (to + 4tm + tp)/6

Sigmae = (tp - to )/6
Can Use Central Limit Theorem to Estimate Project Time

Computing the Float value

Ft

Ff
E2

E1
1
L1

2
L2

Fid

Example Network Flow Diagram

D
2

Example Activity Characteristics

Activity
A
B
C
D
E
F
G
H
I
J

1-2
1-3
2-4
2-5
3-4
3-6
4-5
4-6
5-6
6-7

te

Sigmae

10
9
1
1
1
5
8
1
6
6

12
11
3
8
7
10
13
7
10
10

14
13
11
9
13
15
18
19
20
14

12
11
4
7
7
10
13
8
11
10

2/3
2/3
5/3
4/3
6/3
5/3
5/3
9/3
7/3
4/3

Example Network Flow Diagram

te =12

te =7

te =13

te =4

te =11

te =11
te =8

te =7

te =10

te =10

Earliest Start Time & Finish Steps

Begin at starting event & work forward
EST = 0 for starting activities
EST is earliest start

EFT = EST + Activity time

EFT is earliest finish

EST = Maximum EFT of all

predecessors for non-starting activities

Example Network Flow Diagram

ES=12

te =12

te =4

ES=0

te =7
ES=18
4

ES=11

te =11

ES=31
5

te =13
te =8

te =7

te =11

ES=42
6

te =10

ES=52

te =10

Latest Start Time & Finish Steps

Begin at ending event & work
backward
LFT = Maximum EFT for ending
activities
LFT is latest finish; EFT is earliest finish

LST = LFT - Activity time

LST is latest start

LFT = Minimum LST of all successors

for non-ending activities.

Example Activity Characteristics

to
1-2 10
1-3 9
2-4 1
2-5 1
3-4 1
3-6 5
4-5 8
4-6 1
5-6 6
6-7 6

tm

tp

12
11
3
8
7
10
13
7
10
10

14
13
11
9
13
15
18
19
20
14

te Sigmae EST
12
11
4
7
7
10
13
8
11
10

2/3
2/3
5/3
4/3
6/3
5/3
5/3
9/3
7/3
4/3

0
0
12
12
11
11
18
18
31
42

LST

EFT

LFT

2
0
14
24
11
32
18
34
31
42

12
11
16
19
18
21
31
26
42
52

14
11
18
31
18
42
31
42
42
52

Example Network Flow Diagram

With Critical Path
ES|LS|EF|LF

t1-2=12
0|2|12|14
1

t1-3=11
0|0|11|11

t2-5=7
12|24|19|31

t5-6=11
t4-5=13
t2-4=4
31|31|42|42
18|18|31|31 t =8
4-6
12|14|16|18
18|34 |26|42
4
t3-4=7
11|11|18|18
3

t3-6=10
11|32|21|42

t6-7=10
42|42|52|52

Computing the Float value

Ft

Ff
E2

E1
1
L1

2
L2

Fid

Distinction between CPM & PERT

CPM
Activity oriented technique.
It has one time estimate.
Designed
for
repetitive
projects.
Not statistically analyzed.
It demarcates critical activities.
It employs words like arrow
diagram, node, floats etc.
Dummy activities are not
necessary.
Suitable for industrial settings,
plant
maintenance,
civil
construction projects.
A deterministic model with well
known activities times based
on past experience.
Cost is not directly proportional
to time and const is the
controlling factor.

PERT
Event oriented technique.
It has three time estimation.
Suitable
for
non-repetitive
projects.
Analyzed statistically.
It does not demarcated critical
and non-critical activities.
It employs words like network
diagram, events Slack etc.
Use of dummy activities are
required
representing
the
proper sequence.
Suitable for defense projects
and R & D etc.
Where
activities cannot be predicted.
A probabilistic model with
uncertainty
in
activities
duration
Cost varies directly with time
and time is the controlling
factor.

Benefits &
Limitations
of PERT/CPM

Benefits of PERT/CPM
Useful at many stages of project
management
Mathematically simple
Use graphical displays
Give critical path & slack time
Provide project documentation
Useful in monitoring costs and time

Limitations of PERT/CPM
Clearly defined, independent, &
stable activities
Specified precedence relationships
Activity times (PERT) follow
beta distribution
Subjective time estimates
Over emphasis on critical path

Conclusion
Explained what a project is
Summarized the CPM / PERT project
activities and their time estimates
Drew project networks
Compared PERT & CPM
Determined slack & critical path
Computed project probabilities

THANK YOU