 Topics to be covered

 Project
 Project Management
 Project Life Cycle
 Project Planning
 WBS
 Gantt Chart
 Network Scheduling
 CPM

 PERT

1
Project
 Project :- Temporary endeavor undertaken to create a
unique product, service, or result.
 A project ends when its objectives have been reached,
or the project has been terminated.
 Projects can be large or small and take a short or long
time to complete.
 A sequence of unique, complex and connected activities:
 Having one goal or purpose with
 Unique scope of work and
 That must be completed by:
 A specific time,

 Within budget, and

 According to specification. (Robert, 2003)

2
Features of Project
 Temporary Endeavor: Defined beginning and end.
 Unique in some way: The process to produce the deliverable as well as the
deliverable itself is unique.
 Progressive Elaboration: Revealing and focusing of details through time.
 Types of Projects:
 Organizational Project ( Building Construction, Launching a new product).
 National Project (launching new satellite, literacy campaign).
 Global Projects (UN peace mission).
 Constructing houses, factories, shopping malls, athletic stadiums or arenas.
 Developing military weapons systems, aircrafts, new ships.
 Developing and implementing new computer systems.
 Great Renaissance Dam project, Gilgel Gibe, Awash-Amertinesh, Addis Ababa
City Rail Way Project and etc.

3
Project Management
 Project management is the
application of knowledge, skills,
tools and techniques to project
activities, in order to meet project
requirements and meet or exceed
stakeholder needs and
expectations from a project which
tries to balance competing
demands for project scope, time,
cost, quality and resources.
 Is accomplished through the
application and integration of the
project management processes of
initiating, planning, executing,
monitoring and controlling, and
closing.
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Project Management Aspects

5
Project Management
 A method for organizing tasks.
 A structured framework to help a group work The triple constraint of
productively. Project management:
 Tools to aid in task sequencing, dependency  Scope goals: What work will be
analysis, resource allocation, scheduling, etc. done?
 Tools to track progress relative to plan  Time goals: How long should it
take to complete?
 Why Project management?  Cost goals: What should it cost?
 Complex project needs coordination of:
 Multiple people
 Multiple resources (labs, equipment,
etc.)
 Multiple tasks – some must precede
others
 Multiple decision points – approvals
 Phased expenditure of funds
Resources
 Matching of people/resources to tasks

It is the project manager’s duty to balance Scope/Quality

these three often-competing goals.
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Project Management
 Project management tools and techniques assist project
managers and their teams in various aspects of project
management.
 Specific tools and techniques include:
 Project charters, scope statements, and WBS (scope).
 Gantt charts, network diagrams, critical path analyses,
critical chain scheduling (time).
 Cost estimates and earned value management (cost).

7
Suggested steps in project management
 Generate a formal definition of the project, with goals, constraints,
and assumptions.
 Identify project start/end dates, any mandatory milestones,
including reports, deliverables, etc.
 List constraints – money, equipment availability, holidays, etc.
 Identify tasks to be accomplished – high level (i.e., by categories),
then details within each, using brainstorming method.
 Refine detailed task list, dropping/ combining, adding things
omitted and Then, for each task in list:
 Estimate time (person hours, calendar period)
 Identify dependencies among tasks
 Identify resources (people, money, parts, etc.)

8
Suggested steps in project management
 Organize task groups roughly by starting date and List
dependencies that should or must hold.
 First capture tasks and task groups, milestones.
 Identify critical path, see if it can be shortened.
 Assign person-hours and specific team member(s) to each task.
 As project progresses:
 Monitor, record progress on all tasks, at least weekly – use
“Tracking Gantt Chart”.
 Pay particular attention to those on critical path.
 Revise plan as needed to take into account changes, adapt to
meet milestones.

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Project Life Cycle
 Projects will generally be sub-divided into several stages or phases to
provide better management control.
 Each project phase is marked by completion of one or more deliverables.
 A deliverable is a tangible, verifiable work product (such as feasible study, a
detail design or working prototype).
 Collectively, these project phases are called the Project Life Cycle.
 Key frameworks for Project Management:
 Project Life Cycle (PLC)
 Work Breakdown Structure (WBS)
 PLC: subdivides scope of work into sequential project phases
 WBS: hierarchical subdivision of scope of work into work packages

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Phases of Project
1. Scoping the project 2. Planning the project

 State the problem/opportunity.  Identify project activity.

 Establish the project goal.  Estimate activity duration.

 Define the project objectives.  Determine resource requirements.

 Identify the success criteria.  Construct/ analyze the project

 List assumptions, risks, network.

obstacles.  Prepare the project proposal.

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Phases of Project
3. Launching plan 4. Monitoring progress

 Recruit and organize project team.  Establish progress reporting system

 Establish team operating rules.  Install change control tools/process.

 Level project resources.  Define problem-escalation process.

 Schedule work packages.  Monitor project progress versus plan.

 Document work packages  Revise project plans.

5. Project Closing

 Obtain client acceptance.

 Install project deliverables.

 Complete project documentation.

 Complete post-implementation audit .

 Issue final project report.

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Project Planning
 Planning prescribes the path to
be followed in executing the
project, whereas the controls
are the means to collect,
analyze, compare and correct.
 Project planning addresses
work to be accomplished during
a project to meet the defined
goals and objectives.
 It also identifies those activities
and strategies that are
detrimental to a project’s
successful completion. The
optimum project plan provides
the appropriate level of detail to
guide the performing team to
successful completion of the
work.

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Project Planning
 Planning is determining what needs to be done, by whom,
and when, in order to fulfill one’s assigned responsibility.
 Major components of the planning phase:
 Objective: a goal, target or quota to be achieved by a certain
time.
 Schedule: a plan showing when individual or group activities
or accomplishments will be started and/or completed.
 Budget: planned expenditures required to achieve or exceed
objectives.
 Forecast: a projection of what will happen by a certain time.
 Organization: design of the number and kind of positions,
along with corresponding duties and responsibilities, required
to achieve or exceed objectives.
 Policy: a general guide for decision-making and individual
actions.
 Procedure: a detailed method for carrying out a policy.
 Standard: a level of individual or group performance defined
as adequate or acceptable.
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Work Breakdown Structure
 A work breakdown structure defines the hierarchy of project
tasks, subtasks, and work packages.
 A method of breaking down a project into individual
elements ( components, subcomponents, and tasks) in a
hierarchical structure which can be scheduled and cost.
 The WBS is used to help in project planning and control as
well as to develop a common understanding of the scope of
the project.
‡It defines tasks that can be completed independently of
other tasks, facilitating resource allocation, assignment of
responsibilities and measurement and control of the
project.
 It is foundation of project planning.
 It is developed before identification of dependencies and
estimation of activity durations.
 It can be used to identify the tasks in the CPM and PERT.

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Work Breakdown Structure
Level Program

1 Project 1 Project 2

2 Task 1.1 Task 1.2

3 Subtask 1.1.1 Subtask 1.1.2

4 Work Package 1.1.1.1 Work Package 1.1.1.2

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Work Breakdown Structure

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Project Scheduling Tools and Techniques
 Gantt Chart
 The Gantt chart is the oldest compare to network diagrams and is used
effectively in simple, short-duration types of projects.
 Graph or bar chart with a bar for each project activity that shows
passage of time.
 Provides visual display of project schedule.
 Vertical axis shows tasks and horizontal shows duration for each activity.

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Network Scheduling
 Network diagram is the basic feature of network planning. It is a
diagram which represents all the events and activities in sequence (in
which they are required to be performed to complete the project),
along with their interrelationships and interdependencies.
 Terms related to network planning methods:
 Event: An event is a specific instant of time which marks the start
and the end of an activity. Event consumes neither time nor
resources. It is represented by a circle and the event number is
written with in the circle. Event and node are synonyms.
 Activity: Every project consists of a number of operations or tasks
which are called activities. An activity is an element of project and it
may be a process, a material handling or material procurement cycle,
etc. An activity is shown by an arrow and it begins and ends with
the event. Unlike event, an activity consumes time and resources. An
activity may be performed by an individual or a group of individuals.
An activity is normally given a name like, A, B, etc.

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Network Scheduling
 Critical activities: In a network diagram, critical activities are those
activities which if they consume more than their estimated time, the
project will be delayed.
 Non-critical activities: Such activities have provision (float or slack) so
that, even if they consume a specified time over and above the estimated
time, the project will not be delayed.
 Dummy activities: When two activities start at the same instant of time,
the head events are joined by a dotted arrow and this is known as a
dummy activity. A dummy activity is assumed to take nil time, but it
facilitates the drawing of the arrow diagram subject to the precedence
constraints, by avoiding redundancy.

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Building Activity Network (Precedence diagram)
 Questions to construct network.
 Which is a Start Activity?
 Which is a Finish Activity?
 What Activity Precedes this?
 What Activity Follows this?
 What Activity is Concurrent with this?
 Define activities from WBS work packages.
 Estimate duration and resources for each activity.
 Define precedence relationships between activities.
 Network Representation Schemes.
 AON Network [Activity-on-Node]
 AOA Network [ Activity-on- Arrow]
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Building Activity Network
 AOA
 Nodes represent start and finish events for each activity, and arrow
represent an activity and precedence.
 Arrows can only come from/go to single node
 Only one arrow between two given nodes
 A dummy activity is used to illustrate precedence relationships in
AOA networks.
 It serves only as a “connector,” however, it is not a “real” activity and
represents neither work nor time.

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Building Activity Network

 AON
 The node (the block in
the figure) is the
activity; inside the node
is information about the
activity, such as its
duration, start time, and
finish time .
 Requires no dummy
nodes.

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Situations in Network Diagram
B
A A must finish before either B or C can start.

A
C Both A and B must finish before C can start.
B

A
C Both A and B must finish before either of C or
B D can start.
D

A B
A must finish before B can start
Dummy
both A and C must finish before D can start.
C
D 24
Critical Path Method (CPM)
 CPM is a technique used for planning and controlling the
most logical and economic sequence of operations for
accomplishing a project. The project is analyzed into
different activities whose relationships are shown on the
network diagram. The network is then utilized for
optimizing the use of resources, progress and control.
 A project must have:
 well-defined jobs or tasks whose completion marks the end of
the project;
 independent jobs or tasks;
 and tasks that follow a given sequence.
 CPM
 Used when activity times are known with certainty.
 Used to determine timing estimates for the project, each
activity in the project, and slack time for activities.

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Critical Path Method (CPM)
 Path: A connected sequence of activities leading from the starting event to
the ending event.
 Critical Path: The longest path (time); determines the project duration.
 Critical Activities: All of the activities that make up the critical path.
 Forward pass
 Earliest Start Time (ES): Earliest time an activity can start.
 ES = maximum EF of immediate predecessors.
 Earliest finish time (EF): Earliest time an activity can finish, earliest
start time plus activity time.
 EF= ES + t, where t is activity time.

 Backward pass
 Latest Start Time (LS): Latest time an activity can start without delaying
critical path time.
 LS= LF - t

 Latest finish time (LF): Latest time an activity can be completed without
delaying critical path time.
 LF = minimum LS of immediate successors. 26
CPM Analysis
 Break down the project into various activities systematically.
 Label all activities
 Arrange all the activities in logical sequence.
 Construct the arrow diagram.
 Number all the nodes(events) and activities.
 Find the time for each activity.
 Mark the activity times on the arrow diagram
 Calculate early and late start and finishing times.
 Calculate total float for each activity, Float = LS - ES = LF – EF
 Float is the maximum amount of time that this activity can be delay in its
completion before it becomes a critical activity, i.e., delays completion of
the project.
 Identify the critical activities and mark the critical path on the arrow
diagram.
 Find the critical path is that the sequence of activities and events where
there is no “slack” i.e.. Zero slack.
 Calculate the total project duration, Longest path through a network. 27
CPM
Consider the following consulting project: Develop a critical path
diagram and determine the duration of the critical path and slack
times for all activities.

Activity Designation Immed. Pred. Time (Weeks)

Assess customer's needs A None 2
Write and submit proposal B A 1
Obtain approval C B 1
Develop service vision and goals D C 2
Train employees E C 5
Quality improvement pilot groups F D, E 5
Write assessment report G F 1
First draw the precedence diagram. D(2)

B(1) C(1) F(5) G(1)

A(2)

E(5)
28
Determine early starts and early finish times
Forward Pass
EF= ES + t
D(2)
ES=0 ES=2 ES=3 ES = 9
EF=2 EF=3 EF=4 EF =14
ES=4
EF=6 ES=14
A(2) B(1) C(1) F(5) G(1) EF=15

Hint: Start with Critical path:

ES=0 and go E(5) A–B–C–E–F–G
forward in the
network from A ES=4
to G. EF=9

29
Determine late starts and late finish times
Hint: Start with LF=15 or the
total time of the project and go ES=4 Backward Pass.
backward in the network from EF=6
G to A.
LS= LF - t

ES=0 ES=2 ES=3 D(2)

ES =9 ES=14
EF=2 EF=3 EF=4 LS=7 EF=14 EF=15
LF=9
A(2) B(1) C(1) F(5) G(1)
ES=4
LS=0 LS=2 LS=3 EF=9 LS=9 LS=14
LF=2 LF=3 LF=4 LF=14 LF=15
E(5)

LS=4
LF=9
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Critical Path & Slack
ES=4
Float = LS - ES = LF - EF Slack=(7-4)=(9-6)= 3 Wks
EF=6

D(2)
ES=0 ES=2 ES=3 ES=9 ES=14
EF=2 EF=3 EF=4 LS=7 EF=14 EF=15
LF=9
A(2) B(1) C(1) F(5) G(1)
ES=4
LS=0 LS=2 LS=3 EF=9 LS=9 LS=14
LF=2 LF=3 LF=4 LF=14 LF=15
E(5)
Duration=15 weeks
LS=4
LF=9

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Program Evaluation and Review Techniques (PERT)
 PERT is based on the assumption that an activity’s duration follows a
probability distribution instead of being a single value, Because of the
uncertainty of activity timings.
 The statistical probability feature of PERT foretells the probability of reaching
the specified target date.
 Three time estimates are required to compute the parameters of an activity’s
duration distribution:
 Pessimistic time (tp) - the time the activity would take if things did not go well.
 Most likely time (tm) - the consensus best estimate of the activity’s duration.
 Optimistic time (to) - the time the activity would take if things did go well.

 The fundamental assumption in

PERT is that the three time tp + 4 tm + to
estimates form the end points and Expected time: Te =
mode of Beta distribution. It is 6
further assumed that to and tp
are about equally likely to occur 2
whereas the probability of
tp - to
occurrence of tm is 4 times that of
Variance: Vt =σ 2 = 6
tp or to .
32
Program Review and Evaluation Techniques (PERT)

33
PERT Analysis
 The project is broken down into different activities systematically.
 Activities are arranged in logical sequence.
 The network diagram is drawn. Events and activities are numbered.
 Using three-time estimate, the expected time for each activity is calculated.
 Standard deviation and variance for each activity are calculated.
 Earliest starting times and latest finishing times are calculated.
 Slack is calculated.
 Critical path(s) are identified.
 Length of critical path or total project duration is computed.
 Lastly, the probability that the project will finish at due date is calculated
x-
Z=

where  = Te = project mean time
 = project standard mean time (sum
of σ of activities on critical path)
x = (proposed ) specified time
34
PERT Networking Example
Consider the following tasks from A to I and find the critical path,
longest path on the network.

Immediate
Task Predecesors Optimistic Most Likely Pessimistic
A None 3 6 15
B None 2 4 14
C A 6 12 30
D A 2 5 8
E C 5 11 17
F D 3 6 15
G B 3 9 27
H E,F 1 4 7
I G,H 4 19 28

Opt. Time + 4(Most Likely Time) + Pess. Time

Expected Time =
6

35
PERT Example Solution
Immediate Expected Te(A)= 3+4(6)+15
Predecesors Time
ET(A)=42/6=7
Task
6
A None 7
B None 5.333
C A 14 Te(B)= 2+4(4)+14
ET(B)=32/6=5.333
D A 5
6
E C 11
F D 7
G B 11 Te(C)= 6+4(12)+30
H E,F 4
ET(C)=84/6=14
I G,H 18
6

C(14) E(11)
Critical path:
A(7) H(4) A–C–E–H–I
D(5) F(7)

I(18) Duration = 54 Days

B G(11)
(5.333)
36
Probability Exercise
What is the probability of finishing this project in less than 53 days?

Task Optimistic Most Likely Pessimistic Variance

A 3 6 15 4
B 2 4 14
C 6 12 30 16
D 2 5 8
E 5 11 17 4
F 3 6 15
G 3 9 27
H 1 4 7 1
I 4 19 28 16
P essim . - O ptim . 2
A ctivity v ariance,  2
= ( )
6

(Sum the variance along the critical path.)  2

= 41
37
Probability Exercise Solutions

p(t < D)

D=53 TE = 54 t
X - TE 53 - 54
Z= = = - .156

2
cp
41

p(Z < -.156) = .438, or 43.8 % Refer Z table

There is a 43.8% probability that this project will be completed in

less than 53 weeks.
38
Probability Exercise Solution
 What is the probability that the project duration will
exceed 56 weeks?

p(t <X)

TE = 54 X=56 t
X - TE 56 - 54
Z= = = .312

2
cp
41

p(Z > .312) = .378, or 37.8 %

39
CPM Exercise

Activity Immed. Predec. Most Likely Time (Hr.)

A --- 6
B --- 5
C A 3
D A 5
E A 1
F B, C 4
G B, C 2
H E, F 6
I E, F 5
J D, H 3
K G, I 5
 For the above activity:
 Determine the critical path and duration.
 Determine ES and EF for each activity.
 Determine LS and LF for each activity.
 Determine float or slack for each activity.
40
PERT Exercise
Immed. Optimistic Most Likely Pessimistic
Activity Predec. Time (Hr.) Time (Hr.) Time (Hr.)
A --- 4 6 8
B --- 1 4.5 5
C A 3 3 3
D A 4 5 6
E A 0.5 1 1.5
F B, C 3 4 5
G B, C 1 1.5 5
H E, F 5 6 7
I E, F 2 5 8
J D, H 2.5 2.75 4.5
K G, I 3 5 7
 For the above activity:
 Determine the expected time of each activity.
 Determine the critical path and duration.
 Determine the probability of completing the project with less than
24 hrs.
 Determine the probability of completing the project with in 20 hrs. 41