5.

21 Assumptions Characteristics Assumptions of PERT:

Assumptions:
1. Activity durations: The expected variance E (V) of a critical path is assumed to be equal to
the sum of the variances of the critical activities and hence no covariances between activities are
taken into account .Consequently, the activities are assumed to be independent.
2. Critical Path: Independency of multiple critical paths is treated in PERT as follows: P
(Project duration ≤ Project deadline T) = P (Length critical path 1 ≤ project deadline T) * P
(Length critical path 2 ≤ project deadline T), with P(x) the probability of event x.
3. Normal distribution: The project duration is assumed to follow a normal distribution,
independent of the distribution of the activity duration, as a result of the central limit theorem
principles.

Characteristics:
1. PERT forces the management to plan carefully and study how the various parts fit into the
whole projects.
2. PERT enables the business managers to predict time and cost of the project in advance.
3. PERT is a forward –looking control device for management. PERT calls attention on the
timely completion of the project and avoids delay.
4. PERT enables the determination of the probabilities concerning the time by which activity and
project would be completed
5. PERT suggests areas for increasing efficiency and reducing cost.
6. It provides up –to –date information of the project programme so that the necessary steps may
be taken to minimize the delays and interruptions
7. PERT assists in coordinating the different parts of the total projects.

5.22 Difference between CPM and PERT

Program evaluation and review technique are most commonly used methods for project
management. There are some similarities and differences between PERT and CPM. PERT can be
applied to any field requiring planned, controlled and integrated work efforts to accomplish
defined objectives. On the other hand, CPM is the method of project planning consisting of a
number of well-defined and clearly recognizable activities. The differences between CPM and
PERT’s shown below:
 CPM PERT
1. CPM uses activity oriented network. 1. PERT uses event oriented network.
2. Durations of activity may be estimated 2. Estimate of time for activities are not so accurate
with a fair degree of accuracy. and definite.
3 It is used extensively in construction 3. It is used mostly in research and development
projects. projects, particularly projects of non –repetitive
nature.
4. Deterministic concept is used. 4. Probabilistic model concepts is used.
5. CPM can control both time and cost when 5. PERT is basically a tool for planning.
planning.
6. In CPM, cost optimization is given prime 6. In PERT, it is assumed that cost varies directly
importance. The time for the completion of with time. Attention is therefore given to minimize
the project depends on cost optimization. The the time so that minimum cost results. Thus in
cost is not directly proportioned to time PERT, time is controlling factor.
.Thus, Cost is the controlling factor.

5.23 Resource allocation:

Resource allocation is used to assign the available resources in an economic way. In project
management, resource allocation is the scheduling of activities and the resources required by
those activities while taking into consideration both the resources availability and the project
time. The key to effective project resource allocation:
1. Determine quickly what resource you will need.
2. Determine who the best people are in that are
3. Approach their line manager and check on their availability
4. Assuming they are available put their name down against the relevant tasks in your project
plan
5. Get your project plan into the PMO and get it base lined as soon as possible.

5.24 Assumption underlying CPM:

The usual assumption underlying CPM analysis are:
1. The costs associated with a project can be divided into two components are Direct cost and
indirect costs. Direct costs are incurred on direct material and direct labor. Indirect cost
consist of overhead items like indirect supplies, rent, insurance, managerial services etc.
2. Activities of the project can be expedited by crashing which involves employing more
resources.
3. Crashing resources time but enhances direct costs because of factors like overtime payments,
extra payments and wastage. The relationship between time and direct activity cost can be
reasonably approximated by a downward slopping straight line.
5.25 Controlling a Project:
Project controls is not managing the project resources, controlling the project quality, or
directing a project in general, Project controls consists of two simple words, project + control
Basically, project controls defines and controls two main targets in a project:
 Cost: How much the project will cost and whether the project will finish on budget or not
 Schedule: How long the project will take and whether the project is going to complete on
time or not
According to the project management Body of Knowledge (PMBOK): “Project controls are
the data gathering, management and analytical processes used to predict, understand and
constructively influence the time and cost outcomes of a project or program; through the
communication of information in formats that assist effective management and decision
making.”
In short, we can say that project control is the management of time and cost of a project.
Project controlling: project controlling is an effective tool to project management. Project
controlling ensures that project goals, timeframes and costs are compiled with.
Controlling a project: controlling a project focuses on keeping the project within scope on
schedule and within budget.

5.26 Fundamental purpose of control:

Project controlling is an effective tool to project management. Project controlling ensures that
project goals, timeframes and costs are compiled with. The two fundamental objectives of
control are:
1. The regulation of results through the alteration of activities
2. The stewardship of organizational assets: Most discussions of the control function are
focused on regulation. The PM needs to be equally attentive to both regulation and
conservation. Because the main body concerns the PM as regulator that emphasize the
conservationist role here. The PM must guard the physical assets of the organization, its
human resources and its financial resources. The processes for conserving these three
different kinds of assets are different:

i. Asset control: Physical asset control requires control of the use of physical assets. It
is concerned with asset maintenance, whether preventive or corrective. At issue also
is the timing of maintenance or replacement as well as the quality of maintenance.
ii. Human resources resource control: Stewardship of human resources requires
controlling and maintaining the growth and development of people. Projects provide
particularly fertile ground for cultivating people. Because projects are unique,
 differing one from another in many ways, it is possible for people working on
projects to gain a wide range of experience in a reasonably short time.
iii. Financial resource control: Though accountants have not succeeded in developing
acceptable methods for human resource accounting, their work on techniques for the
conservation of financial resources has most certainly resulted in excellent tools for
financial control.
The techniques of financial control, both conservation and regulation are well known.
They include current asset controls, and project budgets as well as capital investment
controls.
5.27 Importance of project controlling:
Controlling is the key factors of a project. It provides the project team insight into a project’s
potential success or failure. Importance of controlling in project management are stated below:
1. Monitor and control project work: Keeping stakeholders up to date on progress and team
performance through reports and on-going documentation contributes to project success.
2. Perform integrated change control: Even well planned projects are going to require a
change from time to time. Ongoing documentation and follow up related to change orders
and related costs is an essential part of any project manager’s job.
3. Verify scope: As the project progresses through each phase, it is important to secure the
documentation related to completed portions of the project.
4. Control Scope: If there have been adjustments to the budget, timeline or the desired end-
product, it is important to re-visit the documentation related to the scope and mitigate any
unresolved challenges. Maintaining effective communication with stakeholders and related
constituents will keep everyone updated and engaged in the project’s success.
5. Control Schedule: Every project has a Schedule baseline. As the project progress
adjustments are often necessary to address unforeseen circumstances. Project control can
decrease the chances that schedule issues become major setbacks.
6. Control costs: Many factors will affect cost throughout the project timeline. Keeping track
of any changes in the budget is important so that communication around the control of costs
is clear and accurate.
7. Perform quality control: Quantifying and reporting quality control issues are necessary and
ongoing to support the accuracy and responsiveness of the project. Based on findings from
monitoring, process adjustments can be made.
8. Report performance: Collecting and reporting performance data is important to complete
proper forecasting with regard timeline and phasing.
9. Control risks: Tracking risk, responding to documented risk and evaluating response to risk
is all a part of ensuring the project progresses effectively through each phase of the timeline.
10. Administer procurements: Team needs will change throughout the project, additional items
may be required while other items and services may not be needed at the all, keeping track of
all paperwork that documents any changes in contracts is vital to delivering the project within
budget, or as close as possible. While moving forward with a project, a top project manager
continuously reviews progress and makes necessary adjustments to increase workflow
effectiveness.
5.28 Area covered by project control:
Project control is not managing the project resources, controlling the project quality, or directing
a project in general .Basically, Project controls defines and control in two ways. This are as
follows:
1. Project Schedule management
2. Project cost management

5.28.1 Project Schedule management:

During planning, the project manager must divide the project into tasks and create both a
schedule and budget for each task. During the project, earned value management determines the
project status at regular intervals. Because most project changes involve a changes involve a
change to the schedule, it must be continuously re-baselined and the project management plan
updated

 Plan Schedule management: The schedule management plan contains information such as
how the schedule will be created, who will be responsible for it, how aggressive it will be,
and under what circumstances it will be changed.
 Define Activities: The project is divided into tasks. Note that according to the PMBOK this
process is difficult from create WBS within the scope management knowledge area but in
practice they are generally the same. A task list is produced which defines all of the project.
 Sequence Activities: The tasks are “sequenced “that is, they are ordered and the
relationships between them are established. These relationships take the form of finish- to-
start (FS), Finish –to-finish (FF), Start–to-start (SS) and Start-to-Finish (SF). For small
projects with simple schedules this is not necessary.
 Estimate Activity Durations: Using its resource list a duration is estimated for each task.
 Develop Schedule; Firstly, a network diagram is produced which determines the critical path
as well as floats for each task. Secondly, a graphical bar chart schedule is created plotted on
their early start dates. Lastly the resource usage is plotted and tasks are moved along their
floats to flatten the resource leveling.
 Control schedule: Earned value analysis is performed on regular project status intervals to
determine whether the project is ahead or behind schedule and by how much at that status
point.

5.28.2 Project cost management:

The project budget is usually one of the most sensitive parts of a project. It would be nice to
have project budgets that are comfortable and contain plenty of cushion, but very few projects
have this luxury. The budget must be established through rigorous estimating techniques and
monitored to ensure there are no unnecessary changes that make stakeholders unhappy.
 Plan Cost management: The cost management plan establishes thing like the methodology
with which the project budget will be established, the criteria for changes and control
procedures.
 Estimate Costs: The cost of each task is estimated, taking into account the resources, labor,
materials equipment, and any other item of cost necessary to complete the task.
 Determiner budget: The task budgets are rolled up into an overall project budget control
cost. Earned value analysis is performed on regular project status intervals to determine the
project status at that status point.

5.29 Area covered by project control:

Project control is not simply waiting for things to go wrong and then fixing it. It is chiefly to
have systems to identify problems before they manifest themselves. There are three basic types
of control mechanisms –Cybernetic, go/no-go and post-performance.

 Cybernetic Control:
This is the most common kind of control mechanism. A project has inputs and output.
The outputs can be in the form of milestones that have to be met. Cybernetic controls
focus on the outputs. If these milestones or outputs do not measure up to the set
standards, then the situation is investigated to see if there is a sufficient cause to
change patterns of activity.

 Go/No-go control: Go/No-go control takes the form of testing to make sure that certain
preconditions are met before a task is undertaken. This type of control can be used for a
specific part of the project too. Go/No-go controls are linked to the actual plans and are not
independently set on a calendar.

 Post-Performance controls: Post-performance controls are applied after the completion of

the project or the task. The focus here is not on altering what has already happened but in
making sure that good and but practices are recorded for being of help in future projects. The
post-performance controls include a set of recommendations on how to improve future
projects.
.
5.29.1Cybernetic control system:

The term cybernetics comes from the ancient Greek word kybernetikos referring to the art of the
helmsman. Cybernetic control is evident in all aspects of nature and technology. It occurs when a
closed system regulates itself using a feedback loop. Examples range from a body cooling itself
through perspiration to a safety value on a stream engine.
To diagram below shows a simple first order cybernetic control system in the P3 management
context.

In this case the input would be the baseline delivery plans. Performing work, monitoring
performance and taking correction action are all part of the delivery process. The output is
completed objectives.
This could represent a simple project but as projects get large enough to need decomposition into
work packages the control system becomes second order, where one feedback loop is nested
within in another.
The diagram below shows a second order control system in the context of a project within a e
diagram below shows a second order control system in the context of a project within a program.
The system now shows that the program manager is performing day-to-day control of the
program and is delegating work to project managers. The project managers perform day-to-day
control on their projects but have triggers that cause them to escalate problems to the program
manager. The escalation is caused by the feedback indicating that the project has, or is predicted
to, breach its tolerances.