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OJECT MANAGEMENT M & PERT TECHNIQUES

FLOW OF PRESENTATION

INTRODUCTION BAR CHART NETWORK PLANNING ESTIMATING TIME CPM PERT

Project Management

Project

A project is an interrelated set of activities that

has a definite starting and ending point and that results in a unique product or service.

Project management

Project management is a scientific way of

planning, implementing, monitoring & controlling the various aspects of a project such as time, money, materials, manpower & other resources.

Project management generally consists of three phases.

Planning:

Planning involves setting the objectives of the project. Identifying various activities to be performed and determining the requirement of resources such as men, materials, machines, etc.

The cost and time for all the activities are estimated, and a network diagram is developed showing sequential interrelationships (predecessor and successor) between various activities during the planning stage.

Scheduling:

Based on the time estimates, the start and finish times for each activity are worked out by applying forward and backward pass techniques, critical path is identified, along with the slack and float for the non-critical paths.

Controlling:

Controlling refers to analyzing and evaluating the actual progress against the plan. Reallocation of resources, crashing and review of projects with periodical reports are carried out.

BAR CHART

The bar chart is a two dimensional chart.

The x-axis of the chart shows the project timeline. The y- axis of the chart is a list of specific activities that must be accomplished to complete the project.

These activities are typically listed in order of earliest start on the project. The content of the bar chart are bars that show the planned (and/or actual) start and end times for each task.

Since the tasks are usually arranged from earliest to latest, most bar charts show a pattern of bars that begin in the upper left of the chart and proceed to bars that complete the project displayed in the bottom right of the chart.

For the activities, duration, and sequence shown in the table below, the related bar chart is shown.

For the activities, duration, and sequence shown in the table below, the related bar chart is

Review of Project Progress

Review of Project Progress

Network Planning Methods

Methods used for network planning are:

CPM

PERT

Managing a project with network planning methods involves four steps:

  • 1. Describing the Project.

  • 2. Diagramming the Network.

  • 3. Estimating time of completion.

  • 4. Monitoring Project Progress.

Network Diagram

Concepts

Activity

Precedence relationship

Successor

Event

Guidelines for network diagram

  • 1. Before an activity can begin, its preceding activities must be completed.

  • 2. Arrows indicate logical precedence.

  • 3. Flow of the diagram is from left to right.

  • 4. Arrows should not intersect.

  • 5. Dangling should be avoided.

APPRAOCHES FOR NETWORK DIAGRAM

ACTIVITY ON ARC(AOA):

Uses arcs to represent activities and nodes to represent events.

It is Event Oriented.

3 D B A 1 6 7 8 2 Dummy G H C F 4 5
3
D
B
A
1
6
7
8
2
Dummy
G
H
C
F
4
5
E

DUMMY ACTIVITY

AOA approach requires the addition of a Dummy Activity to clarify the precedence relationships between the two activities. It is a zero time activity and consumes no resources.

Dummy Activity is used in two situations:

1)

When two or more activities start and end at the same nodes A B D 1
When two or more activities start and end at the same
nodes
A
B
D
1
3
C
Dummy
2

2) When two or more activities share the same precedence activity but not all the

precedence are

shared.

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

ACTIVITY ON NODE(AON):

1- Uses nodes to represent activities and arcs indicate precedence relationships between them.

2- It is Activity Oriented.

ACTIVITY ON NODE(AON): 1- Uses nodes to represent activities and arcs indicate precedence relationships between them.

Some conventions of network diagram are shown in Figure 8.10 (a), (b), (c), (d) below:

Some conventions of network diagram are shown in Figure 8.10 (a), (b), (c), (d) below:
Some conventions of network diagram are shown in Figure 8.10 (a), (b), (c), (d) below:
Some conventions of network diagram are shown in Figure 8.10 (a), (b), (c), (d) below:
Some conventions of network diagram are shown in Figure 8.10 (a), (b), (c), (d) below:

ESTIMATING TIME OF COMPLETION

Planning the schedule of the project

Time estimates include:

1)

Total time for completion.

2)

ES- Earliest start time: the earliest time at which the

activity

can start given that its precedent

activities must be completed first.

3)

EF-Earliest finish time: equals to the earliest start time for the activity plus the time required to complete the activity.

4)

LF- Latest finish time: the latest time in which the activity can be completed without delaying the project.

5)

LS- Latest start time: equal to the latest finish time minus the time required to complete the activity.

6)

FORWARD PASS:

The early start and early finish times are calculated by moving forward through the network and

predecessor activities

considering the Considers maximum

7)

BACKWARD PASS:

The latest start and finish times are calculated by moving backward through the network.

Considers minimum

8)

SLACK TIME:

Slack time for an activity is the difference between its earliest and latest start time or between the earliest and latest finish time. Critical path is the path of activities having zero Slack time.

A Simple Project

Activity

Immediate

Predecessor

Expected

Time

A

-

5

B

-

6

C

A

4

D

A, B

2

Precedence Diagram

Precedence Diagram

ES

Earliest Starting (time)

EF

Earliest Finishing

LS

Latest Starting

LF

Latest Finishing

Slack

Difference Time

CRITICAL PATH METHODS(CPM)

HISTORY :

It was developed by J.E.KELLY of REMINGTON- RAND and M.R.WALKER of DU PONT and the emphasis was on the trade-off between the cost of project and its overall completion time. The first test was made in 1958,when CPM was applied to the construction of a new chemical plant.

DEFINITION:

Critical path is the sequence of activities between a project’s start and finish that takes the longest time to complete.

STEPS IN DETERMINING CRITICAL PATH

Specify the individual activities.

Determine the sequence of the activities.

Draw the network diagram.

Estimate the activity completion time.

Identify the critical path.

Update the CPM diagram.

Activit

Preceden

Normal time

Normal

y

ce

(week)

Cost (Rs)

A

-

3

300

B

A

3

30

C

A

7

420

D

A

9

720

E

D

5

250

F

B,C,E

6

320

G

F

4

400

H

F

13

780

I

G

10

1000

Total

4220

4 7 C-7 G-4 F-6 A-3 I- 1 2 5 6 10 D-9 H-13 B-3 E-5
4
7
C-7
G-4
F-6
A-3
I-
1
2
5
6
10
D-9
H-13
B-3
E-5
3
8

Overhead cost as per the given data-

Rs.50

Paths in the network diagram :

A-D-F-G-I = 32 A-D-F-H = 31 A-C-F-H = 29 A-C-F-G-I = 30 A-B-E-F-H = 30 A-B-E-F-G-I = 31

ical path – A-D-F-G-I = 32

4 7 C-7 G-4 F-6 1 A-3 2 6 I- 5 10 D-9 H-13 B-3 E-5
4
7
C-7
G-4
F-6
1
A-3
2
6
I-
5
10
D-9
H-13
B-3
E-5
3
8

TIME ESTIMATES

o Optimistic time (to) – It is the shortest time in which the activity can be completed.

o Most likely time (tm) – It is the probable time required to perform the activity.

o Pessimistic time (tp) – It is the longest estimated time required to perform an activity.

o Expected time

te

= to + 4tm + tp

6

STEPS IN PERT

  • 1. Identify the specific activities.

  • 2. Determine proper sequence of the activities.

  • 3. Construct the network diagram.

  • 4. Estimate the time required for each activity.

  • 5. Determine the critical path.

  • 6. Update the PERT chart.

PROCEDURE FOR NUMBERING THE EVENTS

Step1: Number the start or initial event as 1.

Step2: From event 1, strike off all outgoing activities. This would have made one or more events as initial events (event which do not have incoming activities). Number that event as 2.

Step3: Repeat step 2 for event 2, event 3 and till the end event. The end event must have the highest number

Example 1:

Draw a network for a house construction project. The sequence of activities with their predecessors are given in Table 8.1, below.

Activity

Descrip

Preced

Optimis

Most

Pessimi

Expecte

tion

ence

tic time

Likely

stic

d time

time

time

A

Initial

-

12

16

26

17

design

B

Survey

A

6

9

18

10

market

 

C

Build

A

8

10

18

11

prototype

D

Test

C

2

3

4

3

prototype

E

Redesign

B,D

3

4

11

5

ing

   

F

Market

E

6

8

10

8

testing

G

F

15

20

25

20

Set up productio n

A-17 B-10 E-5 F-8 G-20 1 2 4 5 6 7 C-11 D-3 3
A-17
B-10
E-5
F-8
G-20
1
2
4
5
6
7
C-11
D-3
3

A-B-E-F-G = 60 A-C-D-E-F-G = 64 (CRITICAL PATH)

Advantages of PERT

Expected project completion time.

Probability of completion before a specified date.

The critical path activities that directly impact the completion time.

The activities that have slack time and that can lend resources to critical path activities.

Activity start and end dates.

LIMITATIONS

The PERT Formula Requires Too Much Work.

The network charts tend to be large and unwieldy.

Calculating the time estimates is very complex for all the activities.

Updating of the project is time consuming and requires high costs.

Emphasis is laid only on time factors and cost factors are neglected.

Difference between CPM & PERT

CPM

CPM works with fixed deterministic time

CPM is useful for repetitive and non complex projects with a certain degree of time estimates.

CPM includes time-cost trade off.

PERT

PERT works with probabilistic time

PERT is useful for non repetitive and complex projects with uncertain time estimates.

PERT is restricted to time variable.

CPM- for construction projects.

PERT- used for R&D programs.