Engineerin Economics Chapter (Eng. Eco) 015

7/29/2019 Engineerin Economics Chapter (Eng. Eco) 015

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Module No. 15

Project ManagementMuhammad Shahid Iqbal

Engineering

Economics


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What is a Project?

A project is a sequence of unique, complex and connected

activities having one goal or purpose that must be completed

by a specific time, wthin budget and according to

specification

A project consists of interrelated activities which are to be

executed in a certain order. The activities are interrelated in a

logical sequence, which is known as precedence relationship.

An activity cannot be started untill all its immediate

preceding activities are completed.

Some of the examples of the projects are given as:


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Some Examples of Simple Projects

Research Papers

Tree Planting Campaigns

Relief Collections

Examinations

Relocating

Weddings

Painting

Parties


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Some Examples of Complex Projects

Bridges

Ocean Liners

Commercial Aircraft

Olympic Games

Nuclear Power

Stations

Man on the Moon

Dams

Skyscrapers


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Major Projects in Pakistan

Tarbela and Mangla

Dams, Kalabagh

Dam (?)

Habib Bank Plaza, Muslim Commercial

Bank Building

Karakorum Highway, Islamabad-Lahore

Motorway, Islamabad-Peshawar

Motorway.


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Jinnah Intl Airport,

Allama Iqbal

International Airport,

Karachi Nuclear

Power Project,

Chashma Nuclear

Power Plant

Turkmenistan to

Pakistan Gas Pipeline,

Iran to India (via

Pakistan) Gas Pipeline

Faisal Masjid


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(The Karakorum Highway, M1, M2 Motorways)


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Project Management

Project Management can be defined as : a method and a setof techniques based on the accepted principles ofmanagement used for planning, estimating and controllingwork activities to reach a desired end result on time

within budget and according to specification. Project management is generally applied for constructing

public utilities, large industrial projects and organizingmega events.

Project management is considered to be an important field

in production scheduling mainly because many of theindustrial activities can also be viewed as projectmanagement problems, like launching satellites,fabrication of boilers, construction of railway coaches,organizing R & D activities.


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Many of the projects can be repeated by the same org. orby different organizations.

The project schedule which is prepared for one projectcannot be applied for other projects without any

modification because time estimates can be different dueto environment conditions.

Project is represented in the form of a network for thepurpose of analytical treatment to get the solution forscheduling and controlling its activities.

A network consists of a sets of arcs which are connectedmeaningfully through a set of nodes.

The precedence relationship among various activities of aproject can be represented using a network.

Project Management


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Project Activity Sequencing & Scheduling

Project Activity Sequencing is the prerequisite for

developing the project schedule.

The project schedule determines the planned start and finish

dates for all project activities.

It requires duration estimates for each project activity, and

is most conveniently depicted pictorially in the form of a

bar chart (the Gantt Chart), or the more informationaland

much more complex - form of a Network Diagram

There are two network diagramming techniques which are

used in project management

the precedence diagramming method

the arrow-on-node method.


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The Precedence Diagramming Method

Precedence diagramming is a method of constructing

project schedule network diagrams using boxes or

rectanglesknown as nodesto represent individual

project activities, and connects them with arrows to depict

the dependencies between the project activities

Activity A Activity B Activity C Activity A precedesActivity B whichprecedes ActivityC

Activity X

Activity Y

Activity Z

Activity X precedesboth Activities Yand Z


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Phases of Project Management


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Project Network Diagrams: The Node

ACTIVITYDESCRIPTION

ACTIVITYIDENTIFIER

ACTIVITYDURATION

ES EF

LS LF

SLACK

The CRITICAL PATH of a project is the

sequence of activities that determine the

project completion date any delay in an

activity or activities comprising the critical

path will delay the project by a

corresponding amount of time

EARLY START: When can the activitystart at the earliest?

EARLY FINISH: When can the activityfinish at the earliest?

LATE FINISH: When can the activityfinish at the latest?

LATE START: When can the activitystart at the latest?

SLACK: The time forwhich the activity canbe delayed (also called

float)


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Koll Business Information Center

Activity Description Preceding Activity

Activity Duration

A Approval of Application None 5

B Construction Plans A 15

C Traffic Study A 10

D Service Availability Check A 5

E Staff Report B, C 15F Commission Approval B, C, D 10

G Wait for Construction F 170

H Occupancy E, G 35

Project Network Diagram Example: (Network

Components and Details)


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The Basic

Network

Structure

Merge

Activities

Burst

Activities

A

Approval of

Application

C

Traffic Study

D

Service Avail-

ability Check

E

Staff Report

F

Commission

Approval

B

Construction

Plans

H

Occupancy

G

Wait for

Construction

Project Network Diagram Example:

(Graphical Depiction of the Network Components)


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(Determining the Forward Pass)

Application

Approval

Construction

Plans

Traffic

Study

Service

Check

Commission

Approval

Staff

Report

Wait for

Construction

Occupancy

A

B

C

D

F

E

G

H

5

15

10

5

10

15

170

35

50

205

155

105

3020

3520

20030

235200

Forward PassES + Duration = EF

20

15

10

20

15

200

35

5

5

5

30


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Application

Approval

A

5


(Determining the Backward Pass)

Construction

Plans

B

15

Traffic

Study

C

10

Service

Check

D

5

Commission

Approval

F

10

Staff

Report

E

15

Wait for

Construction

G

170

Occupancy

H

35

50

205

155

105

3020

3520

20030

235200

Backward PassLS + Duration = LF

50 10 20

205

2015

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200185

20030

235200

20

20

20

200

5

10

15

30

200185

185


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Application

Approval

A

5


(Determining Slack and the Critical Path)

Construction

Plans

B

15

Traffic

Study

C

10

Service

Check

D

5

Commission

Approval

F

10

Staff

Report

E

15

Wait for

Construction

G

170

Occupancy

H

35

50

205

155

105

3020

3520

20030

235200

50 10 20

205

2015

3020

200185

20030

235200

Slack = LS ESSlack = LF - EF

0

0

5

10

0

165

0

0


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3. Gantt Chart

A scheduling chart developed by Hanry Gantt that

shows actual and planned output over a period of time.

A bar graph with time on the horizontal axis andactivities to be accomplished on the vertical axis

Shows the expected and actual progress of various

tasks


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Copy-edit manuscriptDesign sample pagesDraw artworkPrint first pagesPrint final pagesDesign cover

1 2 Month

Reporting Date

Activity3 4

Actual progressGoals

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