Management For Engineers-HUT 310

MODULE -4
(Project management- 8 hours:)

Topics:
Project Management, Network construction, Arrow diagram, Redundancy. CPM and
PERT Networks, Scheduling computations, PERT time estimates, Probability of completion
of project, Introduction to crashing.
CO4: Illustrate project management technique and develop a project schedule (Cognitive
Knowledge level: Apply).

Project Management
Introduction to Project Management
 Project means a group of interrelated activities to be performed for
attaining an outcome.
 Project management focuses on planning and organizing a project and its resources.
 Today project management is used for projects of several activities or jobs with:
i) Specific objectives to be completed within certain specifications
ii) Defined start and end dates and
iii) funding limits.
 A successful project management can therefore be defined as having achieved the project
objectives like, within the time limits, within estimated cost, desired performance/technology
level and utilized the assigned resources effectively and efficiently.
5 Phases/ steps of Project Management:-
Every prоjесt mаnаgеmеnt life сусlе соntаіnт five тtерт/ phases:
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and Controlling the Project
5. Project Control and Closure:
• Project Initiation: Clеаrlу dеfіnе уоur project goal and document them, dеfіnе the
рrеlіmіnаrу project scope, Idеntіfу аnd appoint a рrоjесt mаnаgеr, identify thе project’s
stakeholders, prepare a project brіеf or a рrоjесt concept nоtе.
• Project Planning- Dеfіnе a detailed тсоре оf work, Dеfіnе thе rетоurсет nееdеd tо соmрlеtе
еасh оf thе tатkт іdеntіfіеd in thе рrоjесt, рrоjесt сотt , thе тсоре, the resources and timing
etc. Plаn hоw to сооrdіnаtе wіth тtаkеhоldеrт and keep thеm іnfоrmеd and engaged
thrоughоut thе рrоjесt.
• Project Execution: Prосurеmеnt of the resources, direct аnd mаnаgе project wоrk, Mаnаgе
соmmunісаtіоnт with the team etc

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 • Monitoring & controlling the project: Monitor аnd соntrоl the quality of all асtіvіtіет being
performed
Project Control and Closure: Clоте соntrасtт wіth тuррlіеrт thе еxtеrnаl vеndоrт thе consultants
and еvаluаtе their performance, Dо a ротt-рrоjесt rеvіеw meeting аnd evaluation.

Tools and techniques for project Management

⮚ 1. Project selection techniques

a) Cost benefit analysis
b) Risk and sensitivity analysis
⮚ 2. Project implementation (execution) planning
techniques
a) Work breakdown structure
b) Project implementation plan
c) Project responsibility matrix
d) Project management manuals
⮚ 3. Project scheduling techniques
a) Line of balance
b) Bar charts
c) Network techniques (CPM, PERT)

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 Network
 Network is a graphical representation of project and it consists of series of activities
arranged in a logical sequence and show the interrelationship between the activities.
 That is, it is the graphic representation of logically and sequentially connected arrows and
nodes representing activities and events of a project.
Objectives of Network Analysis:
[Link] total project cost and time
2. Effective utilization of resources
3. Minimizing delays and interruption of the project.
Basic Concepts in Network Analysis:
Terms Related to Network Planning methods
A. Network diagram:
 Network diagram or Arrow diagram is the basic feature of network planning.
 It is a diagram which represents all the events and activities in sequence (in which they are
required to be performed in complete the project), along with their interdependencies.

B. Event:
 The beginning and end points of an activity are events.
 It is represented by a circle and the event number is written within the circle.
 Event and node are synonyms, e.g., Start of motor, loan approval.
 Event consumes neither time nor resources.

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 C. Activity:
 Every project consists of a number of tasks which are called activities.
 An activity is a task associated with a project. It may be an element of project.
 E.g.- Install machinery, arranging foreign exchange, etc.
 An activity is shown by an arrow and it begins and ends with an event.
 An activity is usually given a name like A,B, C, etc., which is marked below the arrow and
the estimated time to accomplish the activity is marked above the arrow.

 Unlike event, an activity consumes time and resources.

 Activities are classified as
a) critical activities, b) non- critical activities and c) dummy activities.
Critical activities:
 An activity is called as critical activity if its EST (Earliest Start Time) is equal to LST (Latest
Start Time).
 A critical activity is marked by a thick arrow.
 If the critical activity delays the total project becomes delay.

Non- Critical activities:

Such activities have the provision to take consume) more time
(Float or Slack) than the estimated time. So, the project will not be delayed.
Dummy activity:
 Dummy activities which neither consume time or resources but are used simply to
represent a connection or a link between the events are known as dummies.
 Dummy activities have no duration and are usually shown as a dotted line arrow.
 Dummy activity is included in the above network diagram to show that activity D cannot be
started until activities B and F are completed.
Purpose
 To maintain uniqueness in the numbering system
 To maintain a proper logic in the network.

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 D. Duration:
Duration is the time required to complete a task or an activity.
E. Total Project time:
 It is the time which will be taken to complete a project and is found from the sequence of
critical activities.
 In other words, it is the duration of critical path.
F. Predecessor & Successor Activity:
All the activities which must be completed before starting the activity under consideration are called
predecessor activity. All the activities which have to follow the activity under consideration are
called successor activity.
Activities 2-3, 2-4 are the successor activity of 1-2; & 1-2 is the predecessor activity of 2-3 & 2-
4 and so on.

Path: An unbroken chain of activity between two events is called a path.

H. Earliest Start Time (EST):

The earliest possible time at which a project can start. It is calculated by moving from first to last
event in a network diagram.
I. Earliest Finishing Time (EFT): -
EFT = EST + Duration
J. Latest Starting Time (LST): -
LST=LFT – Duration
K. Latest Finishing Time (LFT): -
 The latest time by which the operation (a project) must be completed. So that scheduled
date for the completion of the project may not be delayed. It is calculated by moving
backward i.e., from last event to first event of the network diagram.
L. Float or Slack:
o Float or Slack means spare time or extra time over and above duration which a non-critical
activity can consume without delaying the project.
o Float is the difference between the time available for completing an activity and time
necessary to complete the same.
Float or Slack= LFT - EFT, OR
LST - EST

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M. Critical Path:
 A path along the network in which EFT and LFT are equal is known as critical path.
 It is that sequence of activities which decide the total project duration.
 Critical path is formed by critical activities.
 Total project duration is the duration of critical path.
Rules of Network Construction Or Rules for drawing net work Diagram.
 Rule 1- Each activity is represented by only one arrow in the network.
 Rule 2 – All the arrows must run from left to right
 Rule 3 - A circle represents an event. Every activity starts and ends
with an event.
 Rule 4 – Dotted line arrows represent dummy activities. Do not
use dummy activity unless required.
 Rule 5 – Every activity except the first and the last, must have at
least one preceding and one succeeding activity.
 Rule 6 – No two activities can be identified by the same head and tail events.
When a situation like this may arise dummy activity can be made use of.

 Rule 7 – Dummy activities should be introduced if it is extremely necessary. Their use

should be minimized in the network diagram.

 Rule 9 –Looping among the activities must be avoided.

 Rule 10 – Avoid redundancy error. If in a network diagram dummy activity is
the only activity emanating from an event, then it is called redundancy
error. This redundant dummy activity can be eliminated and the network
is redrawn having no redundancy error.

 Rule 11 – For coding use alphabets for all activities including dummy activity and numbers
for events.

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 Techniques in network Analysis/
Basic Panning & Control Techniques
I. Critical Path Method (CPM)
II. Project Evaluation Review Technique (PERT)
I. Critical Path Method (CPM)
It is a mathematically based algorithm for planning, scheduling and controlling a set of
project activities.
 Critical path is formed by critical activities.
 This is a technique used for planning & controlling the activities of a project.
 Critical path enables to determine the shortest time possible to complete the project.
The various steps involved in CPM are;
1. Breakdown the project in to various activities
2. Label all activities and arrange them in logical sequence
3. Number all the nodes and activities
4. Find the time for each activity and mark on the arrow diagram
5. Calculate EST and LST
6. Calculate the float for each activity
7. Identify the critical activities (EST = LST) and mark critical path
8. Calculate total project duration
Example:

Advantages of CPM:
 It offers a visual representation of the project activities
 It presents the time to complete the tasks and the overall project
 It helps in tracking of critical activities.
Disadvantages of CPM:
o Clear and reliable information should be available
o It does not account for resource allocation.
Numerical Example- CPM:

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 II. PERT (Project Evaluation & Review Technique)
 PERT is a probabilistic model for planning and controlling project.
PERT takes in to account of three-time estimate;
1. Optimistic time (to) – Shortest possible time to complete an activity under ideal condition.

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 2. Pessimistic time (tp) – Longest time (delay the project) taken for completion.
3. Most likely time (tm) – Lies in between ‘to & tp’. It is the time in which the activity is
normally expected to complete under normal contingencies.
 On the basis of these 3 time, estimate expected time (te).

 Then estimate Standard deviation and Variance of each activity;

The higher the standard deviation, the greater the uncertainty that the project will be completed
on the due date.
 Length of the critical path (or the total project duration):
Total project duration = Sum of the duration of each critical activity.
 Variance of the critical path = Sum of the variance of each critical activity.
 Standard Deviation, (St )

 The probability of completing the project within the scheduled time may be
obtained by;

Where, Z= Normal deviation

D =Due or schedule date (time) or desired time.
St = Standard deviation
Te =Total project duration.
Probability of completion ofproject that corresponds to ‘Z’ is obtained from the standard normal
table.
Steps involved in PERT

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Difference Between PERT & CPM:

Numerical Example- PERT: -

Problem-1

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Problem-2

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Solution: -

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 Project Crashing (or Time – Cost Trade off)
 In the event of the project’s expected time of completion being more than the desired time an attempt is
made to reduce the time involved in some of the activities so that the project is completed on time.
 The process of reducing time of some of the activities in a project is called crashing. The crashing is at
the cost of extra resources i.e., at an extra cost.
 The key objective is to reduce the project time as much as possible with minimal expenditure.
Important terms used in project crashing are the following;
 Normal time- it is the time taken by an activity when it is performed in the normal way.
 Normal cost- It is the cost for carrying out an activity when it is performed in the normal way.
 Crash time- The crash time refers to the shortest possible time to complete an activity with
additional resources.
 Crash cost- The crash cost refers to the activity cost under the crashing activity time.
 Crash cost slop(or Crash cost per period )

Shortening the duration on an activity will normally increase its cost. The slope of the line connecting
the normal point and the crash point is called the cost slope of the activity.
Steps/ Procedure involved in project crashing are as follows;
I. Compute crash cost for all the activities in the network.
II. Using the current activity times, construct Network diagram
III. Find the critical path in the project network.

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IV. Find crash cost slop.
V. Crash the activities on the critical path. The activity having the smallest crash cost slop
is firstly crashed.
 If there is only one critical path, select the activity on this critical path that can shall still be
crashed and has the smallest crash cost period. Crash this activity by one period.
 If there is more than one critical path , select one activity from each critical path such that
each selected activity can still be crashed and total crash cost per period of all selected
activities is the smallest. Crash each activity by one period. Note that a single activity may
be common to more than one critical path
VI. Update all activity times. If the desired due date has been reached ,stop. If not, return to step 2.

Numerical Example:
1. Determine optimal duration and the associated cost from the following table.
Overhead cost = 400.
Activity Normal Crash
Time(in Cost Time(in Cost
Days) Days)
1 -2 8 6000 5 7200
2 -3 6 4000 4 4500

Solution:
Activity Normal Crash
Time(in Cost Time(in Cost
Days) Days)
1 -2 8 6000 5 7200
2 -3 6 4000 4 4500
10,000
Then determine crash cost slop.

Activity Crash cost slop

1 -2 400
2 -3 250

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Then draw a Network diagram & find critical path & Duration.

Total days = 8+6=14days

Next Crash the activities in the critical path. Firstly crash the activity having the
smallest crash cost slop is 2-3.

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 Scheduling
 Scheduling is the allocation of resources over time to accomplish specific tasks. A schedule is
described by the starting and finishing times of each operation related to the particular order.
 The scheduling problem is classified into three viz;
[Link] machine - scheduling, 2. flow shop-scheduling and [Link] shop scheduling.
1. Single machine – scheduling: -
The single machine – scheduling problem consists of n jobs with the same single operation on each
of the jobs. The basic single machine scheduling problem is characterized by the following
conditions:
1. A set of independent, single -operation jobs is available for processing.
2. Job descriptors are known in advance.
3. One machine is continuously available and is never kept idle.
4. Each job is processed till its completion without break.
2. Flow shop – scheduling: -
 In flow shop, we have the machines arranged in series. This shop is called flow shop since the flow of
jobs is unidirectional.
 Here, machines are arranged in the order of processing operations. The order in which the machines
are required to process a job is called process sequence of that job.
 The process sequence of all the jobs is the same. But the processing times for various jobs on a
machine may differ.
In flow shop scheduling problem, there are n job each job requires processing on different machines. The
following different cases are possible in flow shop scheduling: -
1. ‘n’ jobs in 2 machines i.e.; a system containing 2 machines M1 and M2 and there are ‘n’ jobs to be
carried out in the order M1 and M2.
2. ‘n’ jobs to be processed on 3 machines in the order M1, M2 and M3
3. ‘n’ jobs to be assigned to ‘m’ machines.
[Link] shop scheduling: -
 Job shop scheduling problem contains n jobs with m operations on each of the jobs.
 In this scheduling problem, the process sequence of the jobs is not the same. That is different jobs will
have different operation sequence. So, we cannot consider a straight flow for the jobs or flow of jobs is
not unidirectional.
***********END*********

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