Project Management Engineeringcivil.com

7/29/2019 Project Management Engineeringcivil.com

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PROJECT MANAGEMENT

PROJECT MANAGEMENT SKILLS

By

San j ay Shar m aB E ( C iv i l E n g i n e e r i n g )

M B A ( In t e r n a t i o n a l B u s i n e s s O p e r a t io n s )

P h M ( In f r a s t r u c t u re M a n a g e m e n t )


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LECTURE OUT LINE

I n t r o d u ct i o n t o Pr o j e ct M an a g em e n t

To un ders tand t he p r o j ect Li fe Cyc le

1. Project Planning 2. W B S

3. Project Scheduling 4. Project Control

To app ly t oo ls and t echn ique 's Gantt chart /& Mail stone chart

CPM

PERT & Probabilistic Activity Times

Pro j ect Crash in g and T im e-Cost Trade-o f f

Describe how CPM / PERT have developed andmerged together to provide a useful techniquefor managing projects.


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What is Project?

Definition:

Set of inter-related activities

Unique, one-time operation activity or effort

to plan, implement, and control themanagement 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


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Project Characteristics

Set of Activities

Single unit

Money & Time related

General purpose

High labor skills required


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Project Elements

Obj ect i ve o f P ro j ect

Managemen t

Sco p e ( Li m i t at i o n s / Bo u n d ar y )

Co n t r a ct r e q u i r e m e n t s Schedules

Resour ces ( Ph ys ica l )

Person ne l ( Psycho log ica l )

Cont ro l Risk and p r ob lem ana lys is


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Generic Project Life Cycle


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EXAMPLES OFPROJECTSEXAMPLES OFPROJECTS


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Examples of ProjectsExamples of Projects

Building construction


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New product introduction

99 Nude SandalfootNude Sandalfoot

Medium to Tall (B)Medium to Tall (B)

No nonsenseNo nonsense

Sheertowaistpantyhose

New!Improved!

New!Improved!


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Training seminar


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New product introduction Training seminar

Research project


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Examples of Projects



Training seminar

Research project

S/W development

Planning concert, football games, orbasketball tournaments


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Project Scope

Scope statementScope statement

A document that provides an understanding,A document that provides an understanding,justification, and expected result of a projectjustification, and expected result of a project

Statement of workStatement of work

written description of objectives of a projectwritten description of objectives of a project

Work breakdown structureWork breakdown structure

breaks down a project into components,breaks down a project into components,subcomponents, and activitiessubcomponents, and activities


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What is Project Management? (PM)

PM is the application of knowledge,skills, tools and techniques toproject activities in order to meetproject requirements.

Project Management

is an art.

is a science.

has a set of tools andmethods.


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Effective Project Managers

Lead by example

Visionaries

Technically

competent

Decisive/pivotal

Good

communicators

Good motivators

Stand up to exert

when necessary

Support team

members Encourage new

ideas

Qualities of Project Manager:Qualities of Project Manager:

Project Manager is the most important member of project team


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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 skillsrequired


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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


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Benefits of the Planning

Framework for communication Clients and coworkers

Allocate resources Personnel, equipment and facilities, budget

Benchmark to measure progress


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OBJECTIVES OF

PROJECT MANAGEMENT


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Objectives of Project management

To complete project withinelapsed time

To ensure optimum utilization ofavailable resources without delay

To complete a project with a

minimum of capital investment.


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PROJECT MANAGEMENTPROCESS


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Project Management Process

Planning

Objectives

Resources

Work break-down sched.

Organization


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Planning

Objectives

Resources


Organization

Scheduling

Project

activities

Start &end times

Network


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Planning

Objectives

Resources


Organization

Scheduling

Project

activities Start &

end times

Network

Controlling

Monitor, compare,

revise, action


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PROJECT PLANNING


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Project Planning

Establishing objectivesEstablishing objectives

Defining projectDefining project Creating work breakdownCreating work breakdown

structure (WBS)structure (WBS)

Determining resourcesDetermining resources

Forming organizationForming organization


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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 theWHATs at that Level

Then List Each Task that Must Be Completed toAccomplish 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


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Project Organization


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Project Organization

Often temporary structure

Uses specialists from entire company

Headed by project manager Coordinates activities

Monitors schedule

& costs

Permanent

structure called

matrix organization

Acct.Eng. Eng.

Mkt.

Mgr.


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PROJECT SCHEDULING


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Project Scheduling

Sequencing activities

Identifying precedence

relationships

Determining activity times

& costs

Estimating material &

worker requirements Determining critical

activitiesJ

F MA

M JJ

Month

Activity

Design

Build

Test

PERT


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Project Scheduling TechniquesProject Scheduling Techniques

Gantt chart

Critical Path Method(CPM)

Program Evaluation &

Review Technique(PERT)


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More popu la r Techn iques o f Net w o rk a re :

CPM Critical Path Method

PERT Programme Evaluation and Review Method

LCS Least Cost Method

RAMS Resource Allocation and Multi-projectScheduling

MAP Manpower Allocation Procedure

RPSM Resource Planning and SchedulingMethod

GERT Gr aphica l Eva luat ion an d Rev iewTechn ique

Project Scheduling TechniquesProject Scheduling Techniques


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PROJECT CONTROL


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Project Control

Time management Cost management Quality management

Performance management Earned Value Analysis a standard procedure for numerically

measuring a projects progress, forecastingits completion date and cost and

measuring schedule and budget variation Communication Enterprise project management

Periodical check list concerned with:Periodical check list concerned with:


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GANTT CHART


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Gantt Chart

Gantt Chart was developed by

Henry Laurence Gantt (1861-1919) wasa mechanical engineer and management

consultant who is most famous fordeveloping the Gantt chart in the1910s. These Gantt charts wereemployed on major infrastructure

projects including the Hoover Dam andInterstate highway system. He refinedproduction control and cost controltechniques.


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Example of Gantt Chart

| | | | |

Activity

Design houseand obtainfinancing

Lay foundation

Order andreceivematerials

Build house

Select paint

Select carpet

Finish work

00 22 44 66 88 1010MonthMonth

MonthMonth11 33 55 77 99


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Gantt Chart-Activities in Buy a House

` BUY A HOUSE

LOCATION FINANCINGFIND

HOUSE

1 - Criteria 3- Determine

affordability 6- Type of

House

2- Visit

Locations4

- Determine

mortgage

provider

7

- Find Real

Estate

Agent

5

- Lockup

mortgage

commitment

8- Look for

House

9

- Make

Offer, P&S

Agreem't

10 - Closing

TASK PREDECESSOR

1-criteria 3

2-visit loc. 13-affordability

4-mortgage co 3

5-mortg lock 4

6-type of hse 1

7-real est agent 2, 6

8-look for hse 7

9-offer, P&S 5, 8

10-closing 9


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Gantt Chart Buy a House

ID Task Name

1 BUY HOUSE

2 LOCATION

3 Determine location criteria

4 Visit key locations

5 FINANCING

6 Determine affordability

7 Assess Mortagg Provider

8 Secure Mortagg Commitmt

9 FIND HOUSE

10 Type of House

11 Find RealEstate Agent

12 Look for House

13 Make Offer, P&S Agreement

14 Closing

2/5

2/5

2/5

2/14

2/5

2/24

M T W T F S S M T W T F S S M T W T F S S M T W T

ek 1 Week 2 Week 3 Week 4

Simple Gantt Chart ViewSimple Gantt Chart ViewSimple Gantt Chart View

TASK PREDECESSOR

1-criteria 3

2-visit loc. 1

3-affordability

4-mortgage co 3

5-mortg lock 4

6-type of hse 1

7-real est agent 2, 6

8-look for hse 7

9-offer, P&S 5, 8

10-closing 9


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CPM & PERTCPM & PERT


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CPM & PERTCPM & 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


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CPM & PERT StepsCPM & 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


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Completion date?

On schedule? Within budget?

Probability of completing by ...?

(Duration)

Critical activities?

Enough resources available?

How can the project be finished earlyat the least cost?

Questions Answered by PERT & CPMQuestions Answered by PERT & CPM


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Constructing NetworksConstructing Networks


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Graphical Representation ofEvents and Activities

Flow Charting - Uses Nodes andArrows

Arrows

An arrow leads from tail to headdirectionally

Nodes

A node is represented by a circle or any

mathematical symbol

ArrowNode


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Activity On Node (AON)

Task is Represented by Node as theCompletion of an Activity

Arrows Represent the Sequential

Linkages Between Activities For Example, Node 1 is Begin, Node 2

is Complete Task 1, Node 3 isComplete Task 2

1 2 3


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Activity On Arrow (AOA)

Task is Represented by an ArrowBounded on Either End by a Node(Event)

Each Event is Identified by a Number The Activity is Designated by the

Leading Event Number and theFollowing Event Number - i.e. Activity

1 - 2

1 2


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Designating Task Relationships

Sequential vs. Concurrent Activities

1 2 3

1

2

3

4

Sequential Task Relationship

Concurrent Task Relationships


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Designating DUMMY Activities

Represented by Dashed Arrows

Show Sequential Relationships

Among Tasks, but Take No time orResources

1

2

3

4

Dummy Activity 2-3

indicates that both

Activities 1-2 and 2-3 must

be Completed beforebeginning Activity 3-4


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Network TermsNetwork Terms

224 Years

Activity(Arrow)

RegisterReceive

degree

Project: Obtain a college degree - B. Tech.

Event (Node)

Attend class,study etc.

11

Event (Node)


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Activity

Relationships

Activity

Relationships


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Activity RelationshipsActivity Relationships

11


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11A

B

A & B can occurconcurrently

22

33


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11 44

22

33

A

B

AC

A must be donebefore C & D can

begin

D


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11 44

22

33

A

B E

C

B & C must be donebefore E can begin

D


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11 44

22

33

A

B E

C

A must be donebefore C & D can

begin

A & B can occurconcurrently

D

B & C must be donebefore E can begin


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Dummy ActivitiesDummy Activities

Activities are defined often bybeginning & ending events

Example: Activity 2-3

Every activity must have unique pairof beginning & ending events

It is an imaginary activityIt is an imaginary activity

Consume no Time or ResourcesConsume no Time or Resources

Dummy activities maintain precedence orDummy activities maintain precedence or

logical sequence of activities.logical sequence of activities.


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Dummy ActivitiesExample

Dummy ActivitiesExample


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Dummy Activities ExampleDummy Activities Example

111 4443331-2

2-3

Incorrect

2222-3

3-4


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Different activities;

same designation

111 444333

1-2

2-3Incorrect

2222-3

3-4


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Incorrect

111 444222

333

555

1-2

2-3

2-4 4-5

3-4: Dummy

activity

Correct

111 444333

1-2

2-3

222 2-3

3-4


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Some more Example of Dummy Activities

Ex I

A Pr i n t i ng i nv i t a t i on Ca rds

B Co l lect ion o f Add r ess

C D ispa t ch ing o f Card s

222

111

333 444BB

A

CC

2-3: Dummy

activity

S E l f D


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Some more Example of DummyActivities

Ex II

I f A & E a r e co n cu r r e n t

B i s a f t e r A & E and

F i s a f t e r E

EE

A

FF

BB

L b li th E t b


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Labeling the Events byDr. Fulkersons Rules:

Numbering the events by DR. Fulkersons ru les: There is a single initial event in the net work diagram.

This initial event will have arrows coming out of it andnone entering it. Number this initial event as 1.

Neglect all the arrows emerging out of the initialevent 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 initialevens.

Follow rule 3. Continue this operation until the last event, which hasno emerging arrows, is numbered.


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Numbering the Events

AA

mmm nnn

ooo

ppp

qqq

rrr

sss tttBB

CC

AA GG

DD

FF

II

HH

JJ


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Network ExampleNetwork Example

Youre a project manager for Bechtel.Construct the network.

Activity PredecessorsA --B AC AD B

E BF CG DH E, F


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Network Example - AONNetwork Example - AON

A

C

E

F

B

DG

H

Z


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Network Example - AOANetwork Example - AOA

2

4

51

3 6 8

7 9

A

C F

EB

D

H

G

ActivityActivity PredecessorsPredecessors

AA ----BB AA

CC AA

DD BB

EE BB

FF CC

GG DD

HH E, FE, F

Rough arrow diagramRough arrow diagram


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2

4

51

3 6

7A

C F

EB

D

H

G

Network Example - AOANetwork Example - AOA

Final Arrow DiagramFinal Arrow Diagram


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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, plantmaintenance, civil constructionprojects etc.

Critical Path AnalysisCritical Path Analysis


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Critical Path AnalysisExample

Critical Path AnalysisExample

EventID

Pred. DescriptionTime(Wks)

A None Prepare Site 1

B A Pour fdn. & frame 6

C B Buy shrubs etc. 3

D B Roof 2

E DDo interior work

3F C Landscape 4

G F, E Move In 1


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Critical Path Analysis ExampleCritical Path Analysis Example

EventID

Acty.. DescriptionTime(Wks)

A 1 - 2 Prepare Site 1

B 2 - 3 Pour fdn. & frame 6

C 3 - 4 Buy shrubs etc. 3

D 3 - 5 Roof 2

E 5 - 6Do interior work

3F 4 - 6 Landscape 4

G 6 - 7 Move In 1


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2

4

5

1 3 6 7A.1

C.3 F.4

E.3

B.6

D.2

G.1

Critical Path Analysis ExampleCritical Path Analysis Example

EventID

Acty..

A 1 - 2

B 2 - 3C 3 - 4

D 3 - 5

E 5 - 6

F 4 - 6G 6 - 7

Different paths from network:Different paths from network:

11--22--33--44--66--77 -- 15 (Critical Path)15 (Critical Path)

11--22--33--55--66--77 -- 1313


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Earliest Start Time & Finish StepsEarliest 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 allpredecessors for non-starting activities


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Latest Start Time & Finish StepsLatest Start Time & Finish Steps

Begin at ending event & workbackward

LFT = Maximum EFT for endingactivities

LFT is latest finish; EFT is earliest finish

LST = LFT - Activity time LST is latest start

LFT = Minimum LST of all successorsfor non-ending activities.

E li L & Sl k d i


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Earliest, Latest & Slack durationsEarliest, Latest & Slack durations

Activity ES EF LS LF Slack

A 1-2 0 1 0 1 0

B 2-3 1 7 1 7 0C 3-4 7 10 7 10 0D 3-5 7 9 9 11 2E 5-6 9 11 11 14 3

F 4-6 10 14 10 14 0G 6-7 14 15 12 15 0

Earliest LatestAct.

Dura.

1

63

23

41


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PERT

&Time Estimates


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Event oriented technique Three time estimation

Use of dummy activities are required representing the proper sequence

A probabilistic model with uncertaintyin activity duration

Analyzed statistically

Employs words Network diagram,events and Slack etc

PERT Technique - foretaste


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Activity Time Estimates

CPM - One Time Estimate perActivity

PERT - Three Time Estimates per

Activity to = Optimistic Time Estimate

tm = Most Likely Time Estimate

tp = Pessimistic Time Estimate

Can Calculate Activity Mean TimeEstimate and Variance


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PERT Time Estimates

Activity Mean Time Estimate = te Activity Variance Estimate = Sigma

e

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

Sigmae

= (tp

- to

)/6

Can Use Central Limit Theorem to Estimate Project Time


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21

Fid

Ft

t

Ff

E2

L2

E1

L1

Computing the Float value

l k l i


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Example Network Flow Diagram

7

6

5

4

3

2

1

B

A

E

C

D

G

F

H

I

J


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Example Activity Characteristics

A 1 - 2 1 0 1 2 1 4 1 2 2 / 3

B 1 - 3 9 1 1 1 3 1 1 2 / 3

C 2 - 4 1 3 1 1 4 5 / 3

D 2 - 5 1 8 9 7 4 / 3

E 3 - 4 1 7 1 3 7 6 / 3

F 3 - 6 5 1 0 1 5 1 0 5 / 3

G 4 - 5 8 1 3 1 8 1 3 5 / 3

H 4 - 6 1 7 1 9 8 9 / 3

I 5 - 6 6 1 0 2 0 1 1 7 / 3

J 6 - 7 6 1 0 1 4 1 0 4 / 3

Activity a m b te Sigmae


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7

6

5

4

3

2

1

te =11

te =12

te =7

te =7

te =13

te =10

te =8

te =11

te =10

te =4


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Earliest Start Time & Finish StepsEarliest 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


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7

6

5

4

3

2

1

te =11

te =12

te =7

te =7

te =13

te =10

te =8

te =11

te =10

te =4

ES=12

ES=52

ES=42

ES=31

ES=18

ES=11

ES=0


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Latest Start Time & Finish StepsLatest Start Time & Finish Steps

Begin at ending event & workbackward

LFT = Maximum EFT for endingactivities

LFT is latest finish; EFT is earliest finish

LST = LFT - Activity time

LST is latest start

LFT = Minimum LST of all successorsfor non-ending activities.


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Example Activity Characteristics

1 - 2 1 0 1 2 1 4 1 2 2 / 3 0 2 1 2 1 4

1 - 3 9 1 1 1 3 1 1 2 / 3 0 0 1 1 1 1

2 - 4 1 3 1 1 4 5 / 3 1 2 1 4 1 6 1 8 2 - 5 1 8 9 7 4 / 3 1 2 2 4 1 9 3 1

3 - 4 1 7 1 3 7 6 / 3 1 1 1 1 1 8 1 8

3 - 6 5 1 0 1 5 1 0 5 / 3 1 1 3 2 2 1 4 2

4 - 5 8 1 3 1 8 1 3 5 / 3 1 8 1 8 3 1 3 1

4 - 6 1 7 1 9 8 9 / 3 1 8 3 4 2 6 4 2

5 - 6 6 1 0 2 0 1 1 7 / 3 3 1 3 1 4 2 4 2

6 - 7 6 1 0 1 4 1 0 4 / 3 4 2 4 2 5 2 5 2

to tm tp te Sigmae EST EFT LFTLST



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a p e et o o ag aWith Critical Path

7

6

5

4

3

2

1

t1-3=11

0|0|11|11

t1-2

=12

0|2|12|14

t3-4=7

11|11|18|18

t2-5=7

12|24|19|31

t4-5=1318|18|31|31

t3-6=1011|32|21|42

t4-6=8

18|34 |26|42

t5-6

=11

31|31|42|42

t6-7=10

42|42|52|52

t2-4=4

12|14|16|18

ES|LS|EF|LF


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21

Fid

Ft

t

Ff

E2

L2

E1

L1

Computing the Float value

Distinction between CPM & PERT


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Distinction between CPM & PERT

Activity oriented technique. It has one time estimate. Designed for repetitive

projects. Not statistically analyzed.

It demarcates critical activities.

It employs words like arrowdiagram, node, floats etc.

Dummy activities are notnecessary.

Suitable for industrial settings,plant maintenance, civilconstruction projects.

A deterministic model with wellknown activities times basedon past experience.

Cost is not directly proportionalto time and const is thecontrolling factor.

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 networkdiagram, events Slack etc.

Use of dummy activities arerequired representing theproper sequence.

Suitable for defense projectsand R & D etc. Where

activities cannot be predicted. A probabilistic model with

uncertainty in activitiesduration

Cost varies directly with timeand time is the controllingfactor.

C P MC P M P E R TP E R T


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Benefits &

Limitationsof PERT/CPM

Benefits &

Limitationsof PERT/CPM

B fit f PERT/CPMBenefits of PERT/CPM


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Benefits of PERT/CPMBenefits of PERT/CPM

Useful at many stages of projectmanagement

Mathematically simple

Use graphical displays

Give critical path & slack time

Provide project documentation Useful in monitoring costs and time


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Limitations of PERT/CPMLimitations of PERT/CPM

Clearly defined, independent, &stable activities

Specified precedence relationships

Activity times (PERT) followbeta distribution

Subjective time estimates

Over emphasis on critical path

C l iC l i


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ConclusionConclusion

Explained what a project is

Summarized the CPM / PERT projectactivities and their time estimates

Drew project networks

Compared PERT & CPM

Determined slack & critical path

Computed project probabilities


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THANK YOU

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