PROJECT MANAGEMENT

PE 309
MODULE 4
Course Objectives:
This course enables the students to:
1 Comprehend the scope and types of projects
2 Identify the Project Life Cycle and project constraints
3 Construct organizational structure of project management
4 Realize environmental issues and social cost benefit analysis of projects
5 Apply project scheduling tools (PERT and CPM)
Course Outcomes:
After the completion of this course, students will able to:
• CO1 Recognise the project morphology, organizational structure and elements of project
• CO2 Incorporate the importance environmental issues in projects
• CO3 Handle real-life projects as in various organizations
• CO4 Solve complex scheduling problems in project management using PERT/CPM
• CO5 Prepare project report and budget planning
SYLLABUS
• Module 4: Network analysis [7]
• Network modeling of a project, Activity on Arc (AOA) verses Activity
on Node (AON),
• Forward and backward pass computation, Critical paths, floats and
slack
Network modeling of a project
• Work Breakdown Structure (WBS)
• Breaks large project into manageable units
• Total project
• Subprojects
• Milestones (completion of an important set of work packages)
• Major activities (summary tasks)
• Work packages (tasks, activities, work elements)
• Way of managing the project by breaking it down
• Help determine skills required and amount of resources needed
• Communicate work that needs to be done
• Work sequences are identified and understood
WBS
Helps to:
• Identify all work need to be done
• Logically organize work so that is can be scheduled
• Assign work to team members
• Identify resources needed
• Communicate what has to be done
• Organize work using milestones
WBS
• Break work into independent work packages that can be sequenced,
assigned, scheduled and monitored
• Define the work package at the appropriate level of detail
• Integrate the work packages into a total system
• Present in a format easily communicated to people. Each work
package must have a deliverable and a time for completing that
deliverable
• Verify the work packages will meet the goals and objectives of the
project
WBS
• A Work Breakdown Structure (WBS) is a hierarchical (from general to
specific) tree structure of deliverables and tasks that need to be
performed to complete a project
• The Work Breakdown Structure is the foundation for effective project
planning, costing and management.
• It is the most important aspect in setting-up a Project
• It is the foundation on which everything else builds
Example WBS - ILW Project
ITE R-Like
W all Project
1.0.0.0.0

R e sea rch & E n gin e ering E P2 P ro je ct Be In s talla tion E ro s ion /D e p o s ition

D e v elo p m e nt D e s ig n & M an u fac tu re S h u tdo w n M a na ge m e nt R e c yc lin g P rep a ratio n fo r IL W
1 .1.0.0 .0 1 .2.0 .0 .0 1 .3.0 .0 .0 1 .4.0 .0 .0 1 .5.0 .0 .0 1 .6.0 .0 .0 1 .7.0 .0 .0

Be S lic ed B e R e m o te O v e ra ll P ro je ct A s s e s s JE T S lic e d B e T iles E n g in e ering

R e c yc lin g T ile s H a nd lin g M a na ge m e nt B e S to c ks In sta ll P re p. D e sign & M a n u f.
1 .1.1.0 .0 1 .2.1 .0 .0 1 .3.1 .0 .0 1 .4.1 .0 .0 1 .5.1.0 .0 1 .6.1 .0 .0 1 .7.1 .0 .0

B u lk W B u lk M e tal T o ru s In s talla tion C o n tra c tu al P re pa re & S h ip B u lk M e ta l T ile s E ro s ion /D e po s ition

D ive rto r T ile s G ro u p M a na ge m e nt JE T Be In sta ll P re p. A s s e m b y & C a lib.
1 .1.2.0 .0 1 .2.2 .0 .0 1 .3.2 .0 .0 1 .4.2 .0 .0 1 .5.2.0 .0 1 .6.2 .0 .0 1 .7.2 .0 .0

W C oa tin gs W C oa ted W a s te M a n. S a fe ty & H P W C o ate d C FC E ro s ion /D e po s ition

1 .1.3.0 .0 C F C T ile s G ro u p M a na ge m e nt In sta ll P re p. In s talla tion
1 .2.3 .0 .0 1 .3.3 .0 .0 1 .4.3 .0 .0 1 .6.3 .0 .0 1 .7.3 .0 .0

M a rk e rs E m b e dd e d V a cu um Q u a lity E m be d . D ia g. E ro s ion /D e po s ition

1 .1.4.0 .0 D ia g n o s tics G ro u p M a na ge m e nt In sta ll P re p. M a na ge m e nt
1 .2.4 .0 .0 1 .3.4 .0 .0 1 .4.4 .0 .0 1 .6.4 .0 .0 1 .7.4 .0 .0

R&D E n g ine e ring D & M IL W T ile R e m o v al F Z J C on tra ct In sta ll P re p.

M a n a ge m e nt M a na ge m e nt & R e p la cem e n t M a na ge m e nt M a na ge m e nt
1 .1.5.0 .0 1 .2.5 .0 .0 1 .3.5 .0 .0 1 .4.5 .0 .0 1 .6.5 .0 .0

B u lk W E P 2 S hu td o w n In sta ll P re p.
T ile s M a na ge m e nt B u lk W
1 .2.6 .0 .0 1 .3.6 .0 .0 1 .6.6 .0 .0

C o m p o n e n t In sp e ct In sta ll P re p.
& R e -p a ck O th e r A ctiv ities
1 .2.7 .0 .0 1 .6.7 .0 .0
WBS
• WBS facilitates strong management during project execution (Cost and
Schedule control)
• Lowest Level of WBS is the Work Package (WP)
• WP can be clearly defined allowing package to be cost, scheduled and
resourced
• WP contains a list of Tasks to be Performed that form the basis for the
Schedule
• WP allows assignment of responsibilities (Work Package Manger, WPM)
Network modeling of a project
• Logical representations of scheduled project activities
• Define the sequence of work in a project
• Drawn from left to right
• Reflect the chronological order of the activities
WBS and Network Diagram
• WBS: what needs to be done
• Network Diagram: shows the workflow, not just the work
Project scheduling
• Split project into tasks and estimate time and resources required to
complete each task.
• Organize tasks concurrently to make optimal use of workforce.
• Minimize task dependencies to avoid delays caused by one task waiting
for another to complete.
• Dependent on project managers intuition and experience.
Bar charts or Gantt charts
• Graphical notations used to illustrate the project schedule.
• Show project breakdown into tasks. Tasks should not be too small.
• Bar charts show schedule against calendar time.
Task durations and dependencies (A residential house
construction project)

Activity Duration (weeks) Dependency

1 1 --
2 2 5
3 7 1
4 3 3
5 7 1
6 6 3
7 2 6
8 2 7
9 3 4
10 2 2
11 2 4
12 2 7
BAR CHART or
GANTT CHART
The WBS is shown on the left, and each task’s start and finish dates are shown on the right.
First used in 1917, early Gantt charts were drawn by hand.
• Gantt chart dependencies, sometimes known as task links
Assume there are two tasks: Task A and Task B and Task B is dependent
on Task A.

Finish-to-start: Task B cannot begin until task A is complete.

Start-to-start: Task B cannot start until Task A begins.
Finish-to-finish: Task B cannot be completed until Task A is completed.
Start-to-finish: Task B cannot be completed until Task A begins.
Some of the advantages of using a Gantt chart include:

• Visualizing your project plan across time. Gantt charts allow you to build a project plan
and visualize all work in a bar chart across time. As a result, you have a visual
representation that you can share with senior leadership and the entire project team.
• Identifying relationships between tasks. Gantt charts allow you to document and
understand task dependencies. As a result, there is transparency when someone is
reliant on someone else.
• Helping you manage resources. Gantt charts require work to be assigned to resources.
As a result, one can see who is working on which task. If someone has too much to do
at one time, then the tasks can be reassigned to someone else.
• Improve Accountability and Communication Efficiency
Gantt chart displays a clear visualization of a project and the tasks involved. Such visibility
not only saves the project leader much time to explain a project to his team members,
but also engages the team to follow the progress and prepare for the successor task at
the right time.
Advantages of using a Gantt chart
• It is to represent the Project schedules and Activities
• Easy to represent Tasks, Sub-tasks, Milestones and Projects Visually on a Graph
• Clear visibility of Dates and Time Frames
• It helps to see the Plans by Day, Week, Month, Quarter and Year
• Helps to effectively mange the Team
• It helps in efficient Time Management
• Easy to group all sub tasks under a main task
• Easy to Check the Project Status
• Can See the Completed % of Tasks
• Tasks in Progress and Pending work is clearly visible on Stacked Bars
• Helps Managers to easily coordinate with the teams
• Gantt chart is good tool for presenting in Team Meetings
Disadvantages of Gantt charts
• They can become extraordinarily complex
• The length of the bar does not indicate the amount of work
• They need to be constantly updated if some activities are delayed
•  If project is large with many stakeholders, it’s going to be challenging to
keep the Gantt chart updated
• Gantt charts are also a disadvantage whenever they are seen as
immutable. Because project requirements may change over time and
because project managers must be able to adapt to the situation and
circumstance, the Gantt chart should be seen only as an outline that can
be changed as project needs change.
• For example, if during the project completion phase, an issue is brought
that requires problem-solving, flexible project managers can add it to the
project timeline and update the Gantt chart.
• Gantt charts are a disadvantage whenever much information needs to
be depicted for a complex project. Gantt charts do not show well
what resource has been assigned to which project task. Nor do they
depict multiple scheduling possibilities or intricate task-dependencies.
Any time there is a complex project, the Gantt chart will showcase its
disadvantages strongly.
• The Gantt chart should be used as tool along with other methods
including cost management software and a formal project plan. By
seeing a Gantt chart as just one of the tools used with proper project
planning, the limitations are balanced by the strengths of other tools.
Project Network Diagrams/Analysis
Types of Network diagrams

1. Activity-on-Arrow (AOA) or Arrow Diagramming Method (ADM)

2. Activity-on-Node (AON) or Precedence Diagramming Method (PDM)
Some interpretation for project network
Rules for Drawing Network Diagram

There are number of rules in connection with the handling of events and
activities of a project network which are given below:
• Each activity is represented by one and only one arrow in the network.
This implies that no single activity can be represented twice in the
network.
• No two activities can be identified by the same beginning and end event.
In such cases, a dummy activity is introduced to resolve the problem.
• The arrows depicting various activities are indicative of logical precedence
only; hence length and bearing of the arrows are of no significance.
• The flow of the diagram should be from left to right.
• Two events are numbered in such a way that the event of higher number
can happen only after the event of lower number is completed.
• Arrows should be kept straight and not curved. Avoid arrow which cross
each other.
• Avoid mixing two directions vertical and standing arrows may be used if
necessary
• Use dummy activity freely in rough graph but final network should have
only reluctant dummy
• The network has only one entry point called the start event and one point
of emergence called end event
• Angle between the arrows should be as large as possible.
Error in Drawing Network

• Dangling error
• To disconnect an activity before the completion of all activities in a
network diagram is known as dangling.
• Looping error
• Looping error is also known as cyclic error in the network. Drawing an
endless loop in a network diagram is known as error of looping.
• Redundancy error
• Unnecessarily inserting the dummy activity in a network diagram is
known as error of Redundancy
 Example on Network Diagram
Precedence Relationship Table
Activity Duration Predecessor
A 1 -
B 2 -
C 3 -
D 4 A
E 5 B
F 4 B
G 6 C
H 6 D, E
I 2 G
J 3 H, F, I
Sample Activity-on-Arrow (AOA) Network Diagram
1. Arrow Diagramming Method (ADM)
Process for Creating AOA Diagrams
2. Precedence Diagramming Method (PDM)
Activity precedence table
Activity Duration Predecessor

A 1 --

B 3 A

C 2 A

D 5 B, C

E 2 C

F 3 D, E
AoN Example
 Activity precedence table
Activity Duration Predecessor
A 1 --
B 2 --
C 3 --
Can you construct D 4 A
AOA for this data
E 5 B
F 4 B
G 6 C
H 6 D, E
I 2 G
J 3 F, H, I
Critical Path Method (CPM)
• The most widely used scheduling technique is the critical path method (CPM) for
scheduling.
• This method calculates the minimum completion time for a project along with the
possible start and finish times for the project activities. Many texts and managers
regard critical path scheduling as the only usable and practical scheduling procedure.
Computer programs and algorithms for critical path scheduling are widely available
and can efficiently handle projects with thousands of activities.
• The critical path itself represents the set or sequence of activities which will take the
longest time to complete.
• The duration of the critical path is the sum of the activities' durations along the path.
Thus, the critical path can be defined as the longest possible path through the
"network" of project activities. The duration of the critical path represents the
minimum time required to complete a project. Any delays along the critical path
would imply that additional time would be required to complete the project.
• There may be more than one critical path among all the project
activities, so completion of the entire project could be delayed by
delaying activities along any one of the critical paths.
• For example, a project consisting of two activities performed in
parallel that each requires three days would have each activity critical
for a completion in three days.
• Formally, critical path scheduling assumes that a project has been
divided into activities of fixed duration and well defined predecessor
relationships. A predecessor relationship implies that one activity
must come before another in the schedule.
• The CPM is a systematic scheduling method for a project network and
involves four main steps:
• - A forward path to determine activities early-start times;
• - A backward path to determine activities late-finish times;
• - Float calculations; and
• - Identifying critical activities and critical path.
Calculations for the Critical Path Method
Preparation for the forward pass computation
Float Calculations
Once forward and backward calculations are complete, it is possible to
analyze the activity times.
One important aspect is Total-Float (TF) calculations, which determine
the flexibility of an activity to be delayed.
Notice that some activities such as activity A has ES time = LS time, and
its EF time = LF time, indicating no slack time for the activity.
Other activities such as B can start early at time 3 and late at time 6,
indicating a 3-day of total float. Float calculations given for all activities.
Total Float of activities

Total Float (TF) = LF – EF = LS – ES