Project Planning and Scheduling
1. Work Breakdown structure (WBS)
2. linear responsibility chart,
3. Interface Co-ordination and concurrent engineering,
4. Project cost estimation and budgeting,
5. Top down and bottoms up budgeting,
6. Networking and Scheduling techniques. PERT,
CPM,GANTT chart.
7. Introduction to Project Management Information
System (PMIS)."
1) Work Breakdown Structure (WBS)
Definition
A Work Breakdown Structure (WBS) is a tool used in
project management to break a big project into smaller,
manageable parts.
It divides the total work of a project into small tasks so
that planning, costing, scheduling, and control become
easy.
In simple words:
WBS = “Divide and manage.”
Important Term
● Deliverable: A deliverable is a measurable output of
a project (for example, a completed building, software
module, report, etc.).
Why WBS is Important
1. Makes project easy to understand
2. Helps in assigning responsibilities
3. Helps in cost estimation
4. Helps in scheduling
5. Reduces confusion
Example – Construction of a House
Level 1: House Construction Project
Level 2:
1. Site Preparation
2. Foundation Work
3. Structural Work
4. Electrical Work
5. Finishing Work
Level 3 (Break further):
Site Preparation
● Land cleaning
● Marking area
Foundation Work
● Digging
● Concrete pouring
Structural Work
● Walls
● Roof
This structure continues until tasks are small enough to
assign to a worker.
● WBS is hierarchical (tree structure form)
● Focuses on what work must be done
● Does not show sequence (order) of activities
Numerical
A software project is divided into the following WBS
elements:
Task Estimated
Cost (₹)
Requirement 50,000
Analysis
Design 40,000
Coding 1,20,000
Testing 60,000
Deployment 30,000
Question:
1. Calculate total project cost.
2. If coding cost increases by 10%, what is new total
cost?
Solution:
1️ Total Cost
= 50,000 + 40,000 + 1,20,000 + 60,000 + 30,000
= ₹3,00,000
2️ Coding increase = 10% of 1,20,000
= 0.10 × 1,20,000
= ₹1️2️,000
New coding cost = 1,20,000 + 12,000
= ₹1,32,000
New Total Cost
= 50,000 + 40,000 + 1,32,000 + 60,000 + 30,000
= ₹3,12,000
2) Linear Responsibility Chart (LRC)
Definition
A Linear Responsibility Chart (LRC) is a table used in
project management to clearly show who is responsible for
each task in a project.
It connects activities (tasks) with people or
departments.
It is also called a Responsibility Assignment Matrix
(RAM).
Important Terms
Responsibility means the duty to complete a task.
Accountability means the person who is finally answerable
for the task.
Consulted means the person whose opinion is taken
before doing the task.
Informed means the person who is told about the
progress.
One common format of LRC is called RACI Matrix:
R = Responsible
A = Accountable
C = Consulted
I = Informed
Why LRC is Important
1. Avoids confusion in team
2. Prevents duplication of work
3. Makes authority clear
4. Improves coordination
5. Helps in monitoring performance
Example – College Tech Fest Project
Suppose a college is organizing a technical festival.
Activities:
1. Budget Planning
2. Venue Arrangement
3. Sponsorship Collection
4. Marketing
Team Members:
Project Manager (PM)
Finance Head (FH)
Marketing Head (MH)
Event Coordinator (EC)
LRC Table:
Activity | PM | FH | MH | EC
Budget Planning | A | R | C | I
Venue Arrangement | A | C | I | R
Sponsorship | A | C | R | I
Marketing | A | I | R | C
This shows clearly who does what.
LRC is simple and easy to prepare.
Each task should have only one Accountable person.
It improves communication inside the team.
Numerical
A project has 5 activities. For each activity, one
Responsible person is required. The project has 3
engineers: E1, E2, E3.
Distribution of activities:
E1 handles 2 activities
E2 handles 1 activity
E3 handles 2 activities
Time required per activity:
Activity 1 = 5 days
Activity 2 = 4 days
Activity 3 = 6 days
Activity 4 = 3 days
Activity 5 = 7 days
Assignment:
E1: Activity 1 and 2
E2: Activity 3
E3: Activity 4 and 5
Question:
1. Calculate total work load (in days) for each engineer.
2. Identify which engineer has maximum load.
Solution:
E1 workload = 5 + 4 = 9 days
E2 workload = 6 days
E3 workload = 3 + 7 = 10 days
Maximum load = 10 days
Therefore, E3 has highest workload.
This analysis helps the project manager balance
responsibility properly.
3) Interface Coordination and Concurrent Engineering
Interface Coordination
Definition
Interface Coordination means managing and controlling
the interaction between different departments, teams, or
systems in a project.
An interface means a point where two systems, teams, or
activities meet and exchange information.
In large projects, different teams work on different parts. If
they do not coordinate properly, delays and conflicts
happen.
Why It Is Important
1. Avoids communication gaps
2. Prevents technical mismatch
3. Reduces delay and rework
4. Improves teamwork
5. Ensures smooth project execution
Example
Consider construction of a shopping mall.
Civil team builds structure.
Electrical team installs wiring.
Interior team designs inside area.
If the civil team does not inform electrical team about wall
changes, wiring layout may become wrong.
So coordination meetings are conducted weekly to update
progress and solve problems.
This is called interface coordination.
Concurrent Engineering
Definition
Concurrent Engineering is a project approach where
different activities are done at the same time instead of
one after another.
Traditional method:
Design -> Manufacturing -> Testing
Concurrent method:
Design + Manufacturing planning + Testing planning done
together.
It reduces total project time.
Important Term
Sequential means activities done one after another.
Concurrent means activities done parallel at the same
time.
Example
In car manufacturing, while design team finalizes engine
design, production team simultaneously plans
manufacturing process.
This reduces development time and cost.
Advantages of Concurrent Engineering
1. Reduces project duration
2. Reduces cost of changes
3. Improves product quality
4. Faster market delivery
Numerical Problem
A project has three activities:
Design time = 6 months
Manufacturing planning time = 4 months
Testing preparation time = 2 months
Case 1: Sequential Method
Total time = 6 + 4 + 2
Total time = 12 months
Case 2: Concurrent Engineering
Manufacturing planning starts after 3 months of design.
Testing preparation starts after 4 months of design.
Project completion time = max[6, 3 + 4, 4 + 2]
3+4=7
4+2=6
So total time = 7 months
Time saved = 12 - 7
Time saved = 5 months
Thus concurrent engineering reduces project duration by 5
months.
4) Project Cost Estimation and Budgeting
Project Cost Estimation
Definition
Project Cost Estimation is the process of predicting how
much money will be required to complete a project.
It includes estimating cost of:
Labour (workers salary)
Materials
Equipment
Overheads (extra expenses like electricity, rent,
administration)
Estimation is done before starting the project.
Important Terms
Direct Cost: Cost directly related to project work
(materials, labour).
Indirect Cost: Cost not directly related but necessary
(office rent, supervision).
Contingency: Extra amount kept aside to handle
unexpected expenses.
Example
Suppose a small bridge construction project has following
estimated costs:
Material cost = 8,00,000
Labour cost = 5,00,000
Equipment cost = 2,00,000
Indirect cost = 1,00,000
Total Estimated Cost
Total = 800000 + 500000 + 200000 + 100000
Total = 1600000 rupees
If contingency is 10 percent:
Contingency = 0.10 * 1600000
Contingency = 160000
Final Estimated Cost = 1600000 + 160000
Final Estimated Cost = 1760000 rupees
Project Budgeting
Definition
Budgeting means allocating (distributing) the estimated
total cost to different activities and time periods.
Estimation tells how much money is needed.
Budget tells when and where money will be spent.
Budget acts as financial control tool.
Example of Budget Allocation
Suppose total project cost = 1760000 rupees
Phase wise distribution:
Planning phase = 10 percent
Execution phase = 70 percent
Finishing phase = 20 percent
Planning budget = 0.10 * 1760000 = 176000
Execution budget = 0.70 * 1760000 = 1232000
Finishing budget = 0.20 * 1760000 = 352000
Total = 176000 + 1232000 + 352000
Total = 1760000 rupees
Importance
1. Helps in financial control
2. Prevents overspending
3. Helps in decision making
4. Supports project monitoring
Numerical Problem
A software project has following estimated costs:
Requirement analysis = 40000
Design = 60000
Coding = 150000
Testing = 80000
Maintenance reserve = 20000
1. Calculate total estimated cost.
2. If actual coding cost increases by 15 percent,
calculate new total cost.
Solution:
Total estimated cost = 40000 + 60000 + 150000 + 80000
+ 20000
Total = 350000
Increase in coding cost = 0.15 * 150000
Increase = 22500
New coding cost = 150000 + 22500
New coding cost = 172500
New total cost = 40000 + 60000 + 172500 + 80000 +
20000
New total cost = 372500
5) Top Down and Bottom Up Budgeting
Top Down Budgeting
Definition
Top Down Budgeting is a method where total project
budget is decided by top management first. After that, this
total amount is divided among different activities.
In this method, senior managers use past experience,
historical data, and overall project scope to fix total
budget.
Scope means total work that must be completed in the
project.
Features
1. Quick method
2. Less detailed
3. Used in early stage of project
4. Suitable when time is limited
Example
Management decides total project budget = 1000000
rupees
They divide it as:
Design = 20 percent
Development = 50 percent
Testing = 20 percent
Miscellaneous = 10 percent
Design budget = 0.20 * 1000000 = 200000
Development budget = 0.50 * 1000000 = 500000
Testing budget = 0.20 * 1000000 = 200000
Miscellaneous = 0.10 * 1000000 = 100000
Total = 1000000
Here detailed task calculation is not done. It is broad
estimation.
Bottom Up Budgeting
Definition
Bottom Up Budgeting is a method where each small task
is estimated separately. Then all task costs are added to
get total project budget.
It is more accurate but takes more time.
Features
1. Detailed method
2. More accurate
3. Requires complete WBS
4. Time consuming
Example
Suppose software project tasks are:
Requirement study = 30000
System design = 50000
Module 1 coding = 70000
Module 2 coding = 60000
Testing = 40000
Total budget = 30000 + 50000 + 70000 + 60000 + 40000
Total = 250000 rupees
This method is based on detailed estimation.
Comparison
Top Down
Fast
Less accurate
Management driven
Bottom Up
Slow
More accurate
Team driven
Numerical Problem
A company estimates project cost using both methods.
Top Down estimation gives total budget = 500000 rupees.
Bottom Up estimation gives following task costs:
Task A = 120000
Task B = 150000
Task C = 90000
Task D = 80000
Task E = 70000
1. Calculate total cost using Bottom Up method.
2. Find difference between two methods.
Solution:
Bottom Up total = 120000 + 150000 + 90000 + 80000 +
70000
Bottom Up total = 510000
Difference = 510000 - 500000
Difference = 10000
Bottom Up estimation is 10000 higher than Top Down
estimation.
6) Networking and Scheduling Techniques: PERT,
CPM and Gantt Chart
Project scheduling means deciding the order of activities
and time required to complete the project.
A network diagram is a graphical representation of project
activities showing their sequence and dependency.
Dependency means one activity cannot start until another
activity is completed.
PERT (Program Evaluation and Review Technique)
Definition
PERT stands for Program Evaluation and Review
Technique.
It is a network based scheduling technique used when
activity time is uncertain. It is mainly used in research, new
product development and defense projects where exact
time is not known.
PERT is probabilistic in nature. Probabilistic means it
considers uncertainty in time estimation.
Three Time Estimates in PERT
For each activity, three time estimates are taken:
Optimistic time (O)
Minimum possible time if everything goes well.
Most likely time (M)
Normal expected time under usual conditions.
Pessimistic time (P)
Maximum possible time if problems occur.
Expected Time Formula
Expected time (Te) is calculated as:
Te = (O + 4M + P) / 6
This formula gives more weight to most likely time.
Variance and Standard Deviation
Variance shows how much uncertainty is present in
activity duration.
Variance formula:
Variance = ((P - O) / 6)^2
Standard deviation = (P - O) / 6
Higher variance means more risk in that activity.
Steps in PERT
1. Identify all activities
2. Arrange activities in network diagram
3. Estimate O, M, P for each activity
4. Calculate expected time
5. Find critical path
6. Calculate project duration
Advantages
1. Suitable for uncertain projects
2. Helps in risk analysis
3. Improves planning
4. Useful in R and D projects
Disadvantages
1. Time estimation may be subjective
2. Complex for very large projects
Numerical Problem
A project has three activities in sequence: A -> B -> C
Time estimates are:
Activity A: O = 2, M = 4, P = 8
Activity B: O = 3, M = 5, P = 9
Activity C: O = 4, M = 6, P = 10
1. Calculate expected time for each activity.
2. Calculate total expected project duration.
3. Calculate variance of each activity.
Solution:
For Activity A:
TeA = (2 + 4(4) + 8) / 6
TeA = (2 + 16 + 8) / 6
TeA = 26 / 6
TeA = 4.33 days
VarianceA = ((8 - 2) / 6)^2
VarianceA = (6 / 6)^2
VarianceA = 1^2
VarianceA = 1
For Activity B:
TeB = (3 + 4(5) + 9) / 6
TeB = (3 + 20 + 9) / 6
TeB = 32 / 6
TeB = 5.33 days
VarianceB = ((9 - 3) / 6)^2
VarianceB = (6 / 6)^2
VarianceB = 1
For Activity C:
TeC = (4 + 4(6) + 10) / 6
TeC = (4 + 24 + 10) / 6
TeC = 38 / 6
TeC = 6.33 days
VarianceC = ((10 - 4) / 6)^2
VarianceC = (6 / 6)^2
VarianceC = 1
Total Expected Project Duration:
Total = 4.33 + 5.33 + 6.33
Total = 15.99 days
Total approximately = 16 days
Total Variance = 1 + 1 + 1
Total Variance = 3
Standard deviation of project:
Standard deviation = sqrt(3)
Standard deviation approximately = 1.73 days
PERT helps in estimating uncertain project duration and
risk level.
CPM (Critical Path Method)
Definition
CPM stands for Critical Path Method.
It is a network based scheduling technique used when
activity durations are fixed and known. It is mainly used in
construction, production and maintenance projects.
CPM is deterministic in nature. Deterministic means
activity time is assumed to be certain (not uncertain like
PERT).
Important Terms
Activity: A task that consumes time and resources.
Event: Starting or finishing point of an activity.
Critical Path: The longest path in a network diagram. It
determines the minimum time required to complete the
project.
Float or Slack: Extra time available for an activity without
delaying the project.
Float = LS - ES
where
LS = Latest Start time
ES = Earliest Start time
If float = 0, the activity is critical.
Steps in CPM
1. List all activities
2. Identify dependencies (which activity comes first)
3. Draw network diagram
4. Calculate Earliest Start (ES) and Earliest Finish (EF)
using forward pass
5. Calculate Latest Start (LS) and Latest Finish (LF)
using backward pass
6. Identify critical path
Forward pass formula:
EF = ES + Duration
Backward pass formula:
LS = LF - Duration
Advantages
1. Identifies critical activities
2. Helps in time control
3. Useful for cost time trade off (crashing)
4. Simple to apply when time is known
Disadvantages
1. Not suitable when time is uncertain
2. Large networks become complex
Numerical Problem
A project has following activities:
Activity A duration = 3 days (Start activity)
Activity B duration = 5 days (After A)
Activity C duration = 4 days (After A)
Activity D duration = 6 days (After B and C)
Network:
A -> B -> D
A -> C -> D
Step 1: Forward Pass
For Activity A:
ESA = 0
EFA = 0 + 3 = 3
For Activity B:
ESB = 3
EFB = 3 + 5 = 8
For Activity C:
ESC = 3
EFC = 3 + 4 = 7
Activity D starts after both B and C finish:
ESD = max[8, 7] = 8
EFD = 8 + 6 = 14
Total Project Duration = 14 days
Step 2: Backward Pass
For Activity D:
LFD = 14
LSD = 14 - 6 = 8
For Activity B:
LFB = 8
LSB = 8 - 5 = 3
For Activity C:
LFC = 8
LSC = 8 - 4 = 4
For Activity A:
LFA = min[3, 4] = 3
LSA = 3 - 3 = 0
Step 3: Calculate Float
Float A = LSA - ESA = 0 - 0 = 0
Float B = LSB - ESB = 3 - 3 = 0
Float C = LSC - ESC = 4 - 3 = 1
Float D = LSD - ESD = 8 - 8 = 0
Critical Path activities have zero float:
A -> B -> D
Project duration = 14 days
CPM helps in identifying which activities must not be
delayed to complete the project on time.
Gantt Chart
Definition
A Gantt Chart is a bar chart used in project management
to show the schedule of activities over time.
It was developed by Henry Gantt.
In a Gantt chart:
Vertical axis shows activities.
Horizontal axis shows time (days, weeks or months).
Each activity is represented by a horizontal bar.
The length of the bar represents the duration of the
activity.
Features of Gantt Chart
1. Simple and easy to understand
2. Shows start and finish time of each activity
3. Helps in tracking progress
4. Can show percentage completion
5. Suitable for small and medium projects
Important Terms
Milestone: A significant event in the project (for example,
project approval, phase completion). It has zero duration.
Baseline: Original approved schedule used for
comparison.
Progress tracking: Comparing planned schedule with
actual progress.
Advantages
1. Easy visual representation
2. Good for reporting to management
3. Helps in monitoring delays
4. Shows overlapping activities clearly
Disadvantages
1. Does not clearly show complex dependencies
2. Becomes complicated for very large projects
3. Critical path is not directly visible
Example
Suppose a project has following activities:
Activity A duration = 3 days (Start day 0)
Activity B duration = 4 days (After A)
Activity C duration = 5 days (After A)
Activity D duration = 2 days (After B and C)
Schedule:
A: Day 0 to 3
B: Day 3 to 7
C: Day 3 to 8
D: Day 8 to 10
In Gantt chart, these activities are shown as horizontal
bars placed according to their start and finish times.
Numerical Problem
A project has the following data:
Activity A duration = 4 days, starts at day 0
Activity B duration = 6 days, starts after A
Activity C duration = 3 days, starts after A
Activity D duration = 5 days, starts after B
Activity E duration = 2 days, starts after C
1. Prepare schedule with start and finish times.
2. Find total project duration.
Solution:
Activity A:
StartA = 0
FinishA = 0 + 4 = 4
Activity B:
StartB = 4
FinishB = 4 + 6 = 10
Activity C:
StartC = 4
FinishC = 4 + 3 = 7
Activity D:
StartD = 10
FinishD = 10 + 5 = 15
Activity E:
StartE = 7
FinishE = 7 + 2 = 9
Final activities are D and E.
Project completion time = max[15, 9]
Project duration = 15 days
Thus, the Gantt chart will show the project finishing on day
15.
7) Introduction to Project Management Information
System (PMIS)
Definition
PMIS stands for Project Management Information System.
A PMIS is a computer based system used to collect, store,
process and distribute project information.
It helps the project manager in planning, scheduling,
monitoring and controlling the project.
In simple words, PMIS is a software system that supports
project management activities.
Purpose of PMIS
1. Store project data
2. Track project progress
3. Manage cost and schedule
4. Generate reports
5. Support decision making
Components of PMIS
1. Hardware
Computers, servers, networking devices.
2. Software
Project management software like scheduling and
budgeting tools.
3. Database
Stores project information such as cost, time,
resources.
4. Procedures
Rules and methods for entering and using data.
5. People
Project manager, team members, stakeholders.
Stakeholders means people who are interested in or
affected by the project (client, sponsor, manager, etc.).
Functions of PMIS
Planning
Helps prepare schedules, budgets and resource plans.
Monitoring
Tracks actual performance against planned performance.
Controlling
Identifies deviation and supports corrective action.
Reporting
Generates progress reports, cost reports and
performance reports.
Examples of PMIS Tools
Microsoft Project
Primavera
ERP systems used in companies
These tools help in preparing Gantt charts, network
diagrams and cost reports.
Advantages
1. Improves communication
2. Reduces paperwork
3. Provides real time information
4. Better control over cost and time
5. Helps in risk management
Limitations
1. Initial setup cost is high
2. Requires training
3. Depends on correct data entry
Numerical Problem
A project is monitored using PMIS. The following data is
available:
Planned Value (PV) = 500000
Actual Cost (AC) = 550000
Earned Value (EV) = 480000
Definitions:
Planned Value (PV) = Budgeted cost of work scheduled.
Actual Cost (AC) = Actual money spent.
Earned Value (EV) = Budgeted cost of work actually
completed.
1. Calculate Cost Variance (CV).
2. Calculate Schedule Variance (SV).
3. Comment on project status.
Formulas:
Cost Variance (CV) = EV - AC
Schedule Variance (SV) = EV - PV
Solution:
CV = 480000 - 550000
CV = -70000
SV = 480000 - 500000
SV = -20000
Since CV is negative, project is over budget by 70000.
Since SV is negative, project is behind schedule by 20000
worth of work.
Thus PMIS helps in identifying cost and schedule
problems early so corrective action can be taken.