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43) Project Management Basic Definitions

The document explains the concept of the critical path in project management, which is the longest sequence of dependent activities that determines the project's duration. It highlights the importance of identifying critical paths to manage potential delays effectively, as any delay in these activities will delay the entire project. Additionally, it discusses the use of software tools to calculate and manage critical paths and project schedules.

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0% found this document useful (0 votes)
3 views17 pages

43) Project Management Basic Definitions

The document explains the concept of the critical path in project management, which is the longest sequence of dependent activities that determines the project's duration. It highlights the importance of identifying critical paths to manage potential delays effectively, as any delay in these activities will delay the entire project. Additionally, it discusses the use of software tools to calculate and manage critical paths and project schedules.

Uploaded by

jithusathish244
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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How to Determine the Critical Path in Time Management

You may have heard about the critical path in a project and how the development of
the project schedule is dependent on the critical path. As a project manager the
critical path is essential to determine potential issues in our project schedule.
So what is the critical path and how do we determine it? Well, let’s first take a look
at a network logic diagram for a simple sample project.

Each activity has a duration measured in weeks and the arrows show how each
activity is depending on other activities to finish before they can start themselves.
In the sample activity A must finish before C can start, and D can only start once C
has finished etc. We can also see that activity C can only start once both A and B
have finished.
From the diagram we can determine three separate paths:
Start – A – C – D – Finish: 8 weeks
Start – B – C – D – Finish: 9 weeks
Start – B – E – F – Finish: 7 weeks
The critical path is defined as the longest path in the diagram and in our example it
is path B-C-D that is the critical path of 9 weeks. What’s so critical about it? If one of
the activities on the critical path is delayed the entire project is delayed!
For instance, if activity D is delayed 1 week, the project will be delayed with 1 week.
But if activity E is delayed 1 week, it will not delay the project because the path
activity E is on will just be 8 weeks and still be done one week ahead of the BCD
path.
So the critical path is made up of activities that cannot be delayed without delaying
the finish of the entire project.
What happens if activity E suddenly is delayed 3 weeks? In that case the B-E-F path
becomes the new critical path of 10 weeks and the finish of the project is delayed.
The project manager must now determine how to handle this delay or accept it as
the new critical path.
Will a project only have one critical path? A project can easily have more than one
critical path and in that case the project manager must know all of them.
So now that we know what the critical path is and how we determine it; how do we
use it practically when managing a project?
We use it to determine if the project will be delayed if an activity is delayed. If the
activity is on any critical path the answer is Yes! If not, it depends on if the delay
makes the activity create a new critical path. If not, the answer is No!
A project usually have hundreds of activities and they usually have much more
complex dependencies than our example, so project managers usually use software
to set up the activities and dependencies and let the software calculate the critical
path(s). If an activity is delayed the project manager can enter the delay in the
software and see how it affects the overall finish of the project. If the project is
delayed the project manager can use the software to rearrange activities,
dependencies or suggest additional activities as needed to bring the project back on
track.
The critical path is critical to the Time Management knowledge area. Make sure you
know how to use it correctly next time you manage a project.

Activity

Also called a scheduled activity. An activity is a task that must be performed in order to
complete work on the project. Activities are created by further decomposing work packages.
Under current guidelines, the primary difference between a work package and an activity is that
a work package is a component of the scope and describes some aspect of the deliverable,
while an activity describes the work that must be done in order to complete the work package.
Schedule activities are first defined, then sequenced and estimated for duration.

Activity On Arrow AOA

a network diagramming technique in which activities are represented by arrows and connected
at points called nodes to illustrate the sequence of activities; also called arrow diagramming
method (ADM)

Activity On Node

A method used in Critical Path Methodology (CPM) for constructing a project schedule network
diagram that uses boxes or rectangles, referred to as nodes, to represent activities, and
connects them with arrows that show the logical relationships that exist between them. Also
called Precedence Diagramming Method (PDM), and is the method used by most project
management software packages

Burst Activity
This activity has more than one activity immediately following it (more than one dependency
arrow flowing from it)

Concurrent Engineering

An alternative to sequential development in which activities in different development stages


are allowed to overlap with one another, thereby shortening the total development time.

Critical Path

in a PERT chart or scheduling graph, a path from the initial state to the goal such that any
increase in time required along the critical path will increase the time to complete the whole
project.

Early Finish

The earliest a project activity can finish. Used in the forward pass procedure to discover the
critical path and the project float.

Late Finish

The latest date an activity can complete without impacting the project end date.

Early Start

The Early Start (ES) of an activity is the earliest an activity can start based on the earliest the
activity, or activities, preceding it finished.

Late Start

the latest date an activity can start without impacting the project's end date.

Gantt Chart
A time and activity bar chart that is used for planning, managing, and controlling major
programs that have a distinct beginning and end.

Hammock Activity

For control and management communication, the broader, more comprehensive summary
activity, is used between milestones or across multiple interdependent work packages, and is
displayed in barchart reports

Lag Relationship

The relationship between the start and/ or finish of a project activity and the start and/or finish
of another activity. The most common lag relationships are (1) finish-to-start, (2) finish-to-
finish, (3) start-to-start, and (4) start-to-finish.

Merge Activity

An activity that has more than one activity immediately preceding it (more than one
dependency arrow flowing into it)

Parallel Activity

One or more activities that can be carried on concurrently or simultaneously.

Sensitivity of a Network

The likelihood that the critical path will change once the project begins to be implemented

Slack / Float

The amount of time an activity may be delayed without delaying a succeeding activity or the
project finish date 1. Free Slack: The amount of time a task may be delayed (slip) before it
delays another task; 2. Total Slack: the amount of time a task can be delayed (slip) before it
delays the project finish date

Actual Cost of Work Completed AC


Previously was called ACWP Actual Cost of Work Performed.

Agile Project Management

A family of incremental iterative development methods for completing projects

Activity On Node AON

Activity-on-node method for drawing project networks. The activity is on the node (rectangle).

Backward Pass

The calculation of late finish dates and late start dates for the uncompleted portions of all
schedule activities. Determined by working backwards through the schedule network logic from
the project's end date. See also schedule network analysis.

Balanced Matrix

A matrix structure in which the project manager and functional managers share roughly equal
authority over the project. The project manager decides what needs to be done; functional
managers are concerned with how it will be accomplished.

Balanced Scorecard Method

A model that measures the long run results of major program activities in four areas customer
internal innovation and learning and financial

Bar Chart

A graphic presentation of program activities depicted as a time scaled bar line (also called a Gantt Chart)

Baseline

A concrete document and commitment: it represents the first real plan with costs schedules
and resource allocation. The planned cost and scheduled performance are used to measure
actual costs and performance. Serves as an anchor point for measuring performance.

BATNA Best Alternative To Negotiated Agreement

Strong or weak BATNA determines your ability to negotiated with the other party
Bottom Up Estimates

are usually tied directly to the WBS and a work package. These estimates are made by people
familiar with the task, which helps to gain buy-in on the validity of the estimate. Use of several
people should improve the accuracy of the estimate. Bottom-up estimates should be preferred
if time to estimate is available, estimating cost is reasonable, and accuracy is important.

Budget At Completion BAC

Budgeted cost at completion. The total budgeted cost of the baseline or project cost accounts.

Budget Reserve

Reserve setup to cover identified risks that may occur and influence the baseline tasks or costs.
These reserves are typically controlled by the project manager and the project team.

Budgeted Cost of Work Performed BCWP

The value for completed work measured in terms of the planned budgeted for the work. The
earned value or original budget cost for work actually completed.

Build Own Operate Transfer BOOT

A risk management provision in which the prime contractor not only builds the facility, but also
takes over ownership until its operational capacity has been proven before final transfer of
ownership to the customer

Burst Activity

An activity that has more than one activity immediately flowing from it.
UPDA Exam Preparation
A) Project Management :
1) What is meaning of word planning?
Ans : Plans to achieve optimum balance of needs or demands with the available resources.

2) How will you develop a program in computer?


Ans : By Requirement, design, program, test and implementation.

3) Delaying the activity without delaying the project/


Ans : a) Free Float b) Slag c) slack

4) What type of organization is the human infrastructure of the project.


Ans : Project Organization.

5) What is PERT equation formula? (program evaluation & review techniq)


Ans : Optimistic time = To
Pessimistic time = Tp Te = (To + Tp + 4Tm) / 6
Most Likely time = Tm Te = (O + P + 4M) / 6
Expected Time = Te

6) Phase of Project life Cycle? 5 development components of project?


Ans: 1) Initiation.
2) Designing / planning.
3) Execution / Construction.
4) Monitoring / Controlling.
5) Completion / Finishing.
7) What Project Management are.
Ans : Planning, organizing, motivating and controlling resources.

8) What is Project Management Triangle?


Ans : Scope……. Cost………Time (Quality)

9) What is PMBOK 9 knowledge areas defined in PMBOK?


Ans : PMBOK (Project management body of knowledge)
9 Knowledge areas :
1) Integration management.
2) Scope management.
3) Time management.
4) Quality management.
5) Cost management.
6) Risk management.
7) Communication management.
8) HR management.
9) Procurement management.
.10) What is CPI equal to?
Ans : CPI(Cost performance index) = Budgeted cost of work performance/
(BCWP/ACWP) Actual cost of work performance.

.11) In Ecology what is sustainability? Factors of Sustainable design and


Development?
Ans : Evironment, Social , Economic.
a) Sustainable development : It meets the needs of the present without compromising the
ability of future generation to meet their own needs.
b) Sustainable Design : It looks at how your product’s development from cradle to grave will
affect the four crucial factors…air acidification, carbon footprint, total energy consumed
and water eutrophication.
Example : acid rain, water pollution, global warming, dying animals, palant etc impact the
environment.
12) Float or Slack : In project management the float or slack is the amount of
Time that a task in project network can be delayed without
Causing a delay to.
a) Subsequent Task ( Free Float)
b) Project Completion date ( Total Float)
( Float or slack is a measure of the excess time and resources available
to complete a task.)

13) What critical Activity in CPM network ?


Ans : 1) Longest Duration of all activities. ( critical path)
2) Total Float Zero…………..( critical actitivity)

14) What is the general conditions of home & offices?


Ans : Direct and Indirect Cost.

15) If CPI is 0.95 and SPI is 1.05 the project is ?


Ans : The project is behind schedule and spending less than the planned
Cost.
If CPI is less than (1) = Project behind the schedule.
If SPI is greater than (1) = you are Spending less than the planned
Cost.(means actual cost less than earned
Cost)
CPI = cost performance Index.
SPI = Schedule performance Index.

16) What is physical Quantity of Real World ?


Ans : a) Discrete b) Continuous

Continuous = Analogue …………… Discrete = Digital.

17) Acceptable reasons for project stopping, except ?


Ans : a) Frustration b) Labor dispute c) Natural calamities.
18) What is Risk management strategy means ?
Ans : Mitigation

19) What is last estimate appears in a project ?


Ans : Bid Estimation.

20) What is not a characteristic of a project?


Ans : a)for internal use only. B) Reger pmp/pmi

21) Sustainability development refer to ?


Ans : to environment, recycling, minimizing wastages.

22) What is the ideal location of an exhibition and convention centers?


Ans : Near to public train and bus station, hotels, restaurants.

23) The lowest element in WBS(Work break down structure) is


Ans : a) Work package, b) Deliverable, c) object, d) sub-deliverable)

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