P R O J E CT

MA NAG E ME N T
 PR OJECT MANAGEMENT
JAN FEB MAR APR MAY JUN
Projects
Build A
Projects are unique, one-time endeavor designed to
A Done
accomplish a set of objectives in a limited time frame.
Build B
Examples of projects include
B Done
• constructing a shopping complex
• merging two companies Build C
• putting on a play C Done
• designing and running a political campaign. On time!
Build D
Examples of projects within business organizations include
Ship
• designing new products or services
• designing advertising campaigns
• designing information systems
• reengineering a process
• designing databases
• software development
• designing web pages.
C H A R AC T E R I S T I C S O F A P R O J E C T
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D I F F E R E N C E W I T H O P E R AT I O N S
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 PR OJECT LIFE CYCLE

The size, length, and scope of

projects vary widely according to
the nature and purpose of the
project.
Nevertheless, all projects have
something in common:
They go through a life cycle,
which typically consists of
five phases.
 PR OJECT LIFE CYCLE

1. Initiating - This begins the process by outlining the expected costs, benefits, and risks
associated with a project.
It includes defining the major project goals and choosing a project manager.

2. Planning - This phase provides details on deliverables, the scope of the project, the
budget, schedule and milestones, performance objectives, resources needed, a quality
plan, and a plan for handling risks.
The accompanying documents generated in the planning phase will be used in the executing and monitoring
phases to guide activities and monitor progress. Members of the project team are chosen.
 PR OJECT LIFE CYCLE

3. Executing - In this phase, the actual work of the project is carried out.
The project is managed as activities are completed, resources are consumed, and
milestones are reached.
Management involves what the Project Management Institute refers to as the nine management areas:
1. Project integration
2. Scope
3. Human resources
4. Communications
5. Time
6. Risk
7. Quality
8. Cost
9. Procurement
 PR OJECT LIFE CYCLE

4. Monitoring and Controlling - This phase occurs at the same time as project
execution.
It involves comparing actual progress with planned progress and undertakes corrective action if needed, as
well as monitoring any corrective action to make sure it achieves the desired effect.

5. Closing - This phase ends the project.

It involves handing off the project deliverables (assuming the project hasn’t been canceled), obtaining
customer acceptance, documenting lessons learned and releasing resources.
 KEY DECISIONS IN PROJECT
M A NAG E M E N T

Much of the success of projects depends on key managerial decisions over a

sequence of steps:
 Deciding which projects to implement.
 Selecting the project manager.
 Selecting the project team.
 Planning and designing the project.
 Managing and controlling project resources.
 Deciding if and when a project should be terminated.
 THE PROJECT MANAGER
The project manager bears the ultimate responsibility for the success or failure of the project. He or she
must be capable of working through others to accomplish the objectives of the project.

The project manager is responsible for effectively managing each of the following:
1. The work, so that all of the necessary activities are accomplished in the desired sequence, and
performance goals are met.
2. The human resources, so that those working on the project have direction and motivation.
3. Communications, so that everybody has the information needed to do the work. 4. Quality, so
that performance objectives are realized.
5. Time, so that the project is completed on schedule.
6. Costs, so that the project is completed within budget.
7. Scope, so the project stays within the prescribed scope, and “scope creep” doesn’t occur without
commensurate changes to the schedule (if needed) and the budget.
 PR OJECT MANAGEMENT TOOLS
Project Management Tools:
 Work Breakdown Structure
 Gantt Charts
 PERT and CPM
 PR OJECT MANAGEMENT TOOLS
 Work Breakdown Structure
Work breakdown structure (WBS) A
hierarchical listing of what must be done during
a project.
This methodology is a logical framework for identifying the
required activities for the project.
• The first step in developing the work breakdown
structure is to identify the major elements of the project.
These are the Level 2 boxes.
• The next step is to identify the major supporting activities
for each of the major elements - the Level 3 boxes.
• Then, each major supporting activity is broken down into
a list of the activities that will be needed to accomplish it
- the Level 4 boxes. Usually there are many activities in
the Level 4 lists.
 PR OJECT MANAGEMENT TOOLS
 Gantt Chart
The Gantt chart is a popular visual tool for planning and
scheduling simple projects. It enables a manager to
initially schedule project activities and then to monitor
progress over time by comparing planned progress to
actual progress.
The figure illustrates a Gantt chart for a bank’s plan to establish a
new direct marketing department.
• To prepare the chart, the vice president in charge of the project
had to first identify the major activities that would be required.
• Next, time estimates for each activity were made, and the
sequence of activities was determined.
• Once completed, the chart indicated which activities were to
occur, their planned duration, and when they were to occur.
• As the project progressed, the manager was able to see which
activities were on schedule and which were behind schedule.
 PR OJECT MANAGEMENT TOOLS
 PERT and CPM

2 most widely used techniques for planning and coordinating large-scale projects:
• PERT (Program Evaluation and Review Technique)
• CPM (Critical Path Method)

By using PERT or CPM, managers are able to obtain:

• A graphical display of project activities
• An estimate of how long the project will take
• An indication of which activities are the most critical to timely project completion
• An indication of how long any activity can be delayed without delaying the project
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis

Critical Path Method is a network diagramming technique used to predict total project duration.
• A critical path is the series of activities that determine the earliest time by which the project can be
completed.
• The longest path or the path containing the critical tasks is what is driving the completion date for the
project.

The Network Diagram

• One of the main features of PERT and related techniques is their use of a network (or precedence)
diagram to depict major project activities and their sequential relationships.
• There are two slightly different conventions for constructing these network diagrams.
• Under one convention, the arrows designate activities; under the other convention, the nodes designate
activities.
 These conventions are referred to as: Activity-on-Arrow (AOA) and Activity-on-Node (AON)
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
The Network Diagram
Activity: A specific task or set of tasks that are required by the project, use up resources, and take time to
complete.

Event: The result of completing one or more activities. An identifiable end state that occurs at a particular time.
Events use no resources.

Network: The arrangement of all activities (and, in some cases, events) in a project arrayed in their logical
sequence and represented by arcs and nodes.
• This arrangement (network) defines the project and the activity precedence relationships.
• Networks are usually drawn starting on the left and proceeding to the right.
• Arrowheads placed on the arcs are used to indicate the direction of flow - that is, to show the proper precedences.
• Before an event can be realized—that is, achieved—all activities that immediately precede it must be completed.
• These are called its predecessors.
• Thus, an event represents an instant in time when each and every predecessor activity has been finished.

Path: The series of connected activities (or intermediate events) between any two events in a network.
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
The Network Diagram
Critical Activities, events, or paths that, if delayed, will delay the completion of the project.
• A project’s critical path is understood to mean that sequence of critical activities (and critical events) that connects the
project’s start event to its finish event and which cannot be delayed without delaying the project.

To transform a project plan into a network, one must know what activities comprise the project and, for each
activity, what its predecessors (or successors) are.
An activity can be in any of these conditions:
(1) it may have a successor(s) but no predecessor(s)
(2) it may have a predecessor(s) but no successor(s)
(3) it may have both predecessor(s) and successor(s)

Figure shows each of the three types of activities.

• The first of these is an activity that starts a network.
• The second ends a network.
• The third is in the middle.
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
The Network Diagram: activity-on-node (AON) network

Rectangles (nodes) represented the activities

with arrows to show the precedence relationships.

When there are multiple activities with no

predecessors, it is usual to show them all
emanating from a single node called “START”.

Similarly, when multiple activities have no

successors, it is usual to show them connected to a
node called “END”.
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
The Network Diagram: activity-on-arrow (AOA) network

Activities are shown on the arrows, and

the (circular) nodes represent events.

If the project begins with multiple activities,

they can all be drawn emanating from the
initial node, and multiple activities can
terminate in a single node at the end of the
project.
PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
The Network Diagram
PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
The Network Diagram
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis

The Network Diagram

Paths that are shorter than the critical path can experience some delays and still
not affect the overall project completion time as long as the ultimate path time
does not exceed the length of the critical path.
The allowable slippage for any path is called slack, and it reflects the difference
between the length of a given path and the length of the critical path.
The critical path, then, has zero slack time.
PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
 PR OJECT MANAGEMENT TOOLS
 Draw Precedence diagram and find critical path and expected project
duration ACITIVITY Duration Immediate Predecessor
A 1 Day n/a
B 2 Days n/a
C 3 Days n/a
D 4 Days A
E 5 Days B
F 4 Days B
G 6 Days C
H 6 Days D, E
I 2 Days G
J 3 Days H, F, I
 P R O J E C T M A NAG E M E N T TO O LS
Critical Path Analysis

A,1 D,4 H,6

E,5
Start B,2 J,3 End

F,4

C,3 G,6 I,2

Path 1 : A – D – H - J
Path 2 : B – E – H - J
Path 3 : B – F – J
Path 4 : C – G – I - J
 P R O J E C T M A NAG E M E N T TO O LS
Critical Path Analysis

A,1 D,4 H,6

E,5
Start B,2 J,3 End

F,4

C,3 G,6 I,2

Path 1 : A – D – H - J Length 1 : 1+4+6+3 = 14 days Because the critical path is

the longest path through
Path 2 : B – E – H - J Length 2 : 2+5+6+3 = 16 days
the network diagram,
Path 3 : B – F – J Length 3 : 2+4+3 = 9 days Path 2: B-E-H-J, is the
Path 4 : C – G – I - J Length 4 : 3+6+2+3 = 14 days critical path for Project X
GA N T T C H A R T

1 2 3 4 7 8 9 16
A
B
C
D
E
F
G
H
I
J
PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
Given the additional information on the bank network shown in this Figure, determine the following:
a. The length of each path
b. The critical path
c. The expected length of the project
d. The amount of slack time for each path
PR OJECT MANAGEMENT TOOLS
Critical Path Analysis

ES EF ES EF

Activity Name Activity Name

Duration Duration

LS LF LS LF

ES : Earliest Start = 16th April

EF : Earliest Finish = 17th April
LS : Latest Start = 29th April
LF : Latest Finish = 30th April
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis Forward Calculation
4 9 ? ?

D, 5 E, 3
31 36

10 12

G, 2
ES: Earliest Start
EF: Earliest Finish 34 36
LS: Latest Start
LF: Latest Finish
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis Forward Calculation
4 9 12 15

D, 5 E, 3
31 36

10 12

G, 2 Have to take the Higher

EF for the Immediate
ES: Earliest Start
EF: Earliest Finish 34 36 Successor (E)
LS: Latest Start
LF: Latest Finish
PR OJECT MANAGEMENT TOOLS
Critical Path Analysis Backward Calculation
10 26 26 30

H, 16 I, 4
? ? 36 40

26 34

J, 8
ES: Earliest Start
26 34 EF: Earliest Finish
LS: Latest Start
LF: Latest Finish
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis Backward Calculation
10 26 26 30

H, 16 I, 4
10 26 36 40

26 34
Have to take the Lowest
LS for the Immediate J, 8
ES: Earliest Start
Predecessor (H) 26 34 EF: Earliest Finish
LS: Latest Start
LF: Latest Finish
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis Sample Problem #1
Activity Immediate Duration Activity Immediate Duration
Predecessor(s) (Weeks) Predecessor(s) (Weeks)
N 5 G B 2
A N 4 H B 16
B N 10 I H 4
C N 7 J H 8
D A 5 K I, J, L 5
E D, G 3 L C 9
F E 6 M J, L 10
a) Draw the network diagram and find the critical path and project completion time.
b) Calculate float/ slack of the all activities.
c) Can activity I be delayed without delaying the project completion time? If so, how many weeks? How much
dollar can be saved by keeping the project completion time unchanged, if $2500 can be saved for each
delayed week of activity I?
d) What is the impact on the project if activity F needs a delayed time 2 weeks and extra time 5 weeks?
e) The PM wants to delay the duration of the activity M from 10 weeks to 16 weeks. What is the impact on the
project completion time?
 P R O J E C T M A N AG E M E N T T O O LS
Critical Path Analysis
EF = ES + Duration (Forward)
Sample Problem #1
LS = LF – Duration (Backward)
5 9 9 14
A,4 D,5 17 20 20 26
31 35 35 40 E,3 F,6
15 17

G,2
40 43
35
43 49
0 0 0 5 5 15
31
39 44
49 49
38 40 I,4
Start N,5 B,10 15 31 K,5 End
40 44
0 0 0 5 5 15 H,16 31 39 44 49 49 49
15 31 J,8
31 39
Module (Applied when path crossed) 5 12 12 21 39 49

C,7 L,9 M,10

23 30 30 39 39 49
 P R O J E C T M A N AG E M E N T T O O LS
Critical Path Analysis
EF = ES + Duration (Forward)
Sample Problem #1
LS = LF – Duration (Backward)
5 9 9 14
A,4 D,5 17 20 20 26
31 35 35 40 E,3 F,6
15 17
40 43 43 49
G,2 35
0 0 0 5 5 15
31
39 44
50 50
38 40 I,4
Start N,5 B,10 15 31 K,5 End
40 44
0 0 0 5 5 15 H,16 31 39
44 49 49 49
15 31 J,8
31 39
Module (Applied when path crossed) 5 12 12 21 39 50

C,7 L,9 M,11

23 30 30 39 39 49
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
Sample Problem # 1 Project Completion Time = 49 weeks
Path 1 = N – A – D – E – F = 23 weeks
Path 2 = N – B – G – E – F = 26 weeks
Path 3 = N – B – H – I – K = 40 weeks
Path 4 = N – B – H – J – K = 44 weeks
Path 5 = N – B – H – J – M = 49 weeks (maximum)
Path 6 = N – C – L – K = 26 weeks
Path 7 = N – C – L – M = 31 weeks
Critical Path = Path 5 = N+B+H+J+M = 49 weeks
Critical Activities = B, H, J, M, and N (Where the Slack is 0)
Non-Critical Activities = A, C, D, E, F, G, I, K, and L

So, project will require minimum 49 weeks to complete

 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
Sample Problem #1

Project Completion Time = 49 weeks

Slack = LS – ES ||| LF - EF
Slack A = 31- 5 = 26 Slack G = 38-15 = 23 Slack M = 39 – 39 = 0
Slack B = 5 - 5 = 0 Slack H = 15 – 15 = 0 Slack N = 0 – 0 = 0
Slack C = 23-5 = 18 Slack I = 40 – 31 = 9
Slack D = 35-9 = 26 Slack J = 31 – 31 = 0
Slack E = 40-17 = 23 Slack K = 44 – 39 = 5
Slack F = 43-20 = 23 Slack L = 30 – 12 = 18
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
Sample Problem #1
c) Can activity I be delayed without delaying the project completion time? If so, how many weeks?
How much dollar can be saved by keeping the project completion time unchanged, if $2500 can be saved for each delayed week
of activity I?

Yes, the Activity “I” can be delayed as it is a non-critical activity. It can be delayed upto the value of slack that is for 9 weeks.
Activity I has a slack of 9 weeks, so, $2500*9= $22,500/- can be saved by keeping the project completion time unchanged.

d) What is the impact on the project if activity F needs a delayed time 2 weeks and extra time 5 weeks?

According to the question, activity F needs to delay by 2+5= 7 weeks, it is possible by keeping the project completion time
unchanged as F is a non-critical activity with a slack of 23 weeks.

e) The PM wants to delay the duration of the activity M from 10 weeks to 16 weeks. What is the impact on the project completion time?

According to the question, if the Project Manager wants to delay the

duration of the activity M from 10 weeks to 16 weeks, then it will delay the entire duration of the project.
As activity M, falls under critical activity of the project, therefore the Slack of activity M is 0.
It will eventually increase the project duration to more 6 weeks (a total of 49+6 = 55 weeks) to complete the project in this situation.
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis

Sample Problem # 2
Activity Immediate Duration Activity Immediate Duration
Predecessor(s) (Weeks) Predecessor(s) (Weeks)

A 4 F B 6

B 10 G C 2

C 7 H F 8

D A 5 I F, G 11

E B 3 J D, E 8
 PR OJECT MANAGEMENT TOOLS
Critical Path Analysis
Sample Problem # 2
a) Draw a network diagram and find the critical path and project completion time.
b) Calculate float/ slack of the all activities.
c) If $1000 can be saved for each delayed weeks of activity H, then how much
dollar can be saved keeping the project completion time unchanged?
d) Activity G needs a delayed time of two weeks and an extra time of five weeks. Is
it possible by keeping the project completion time unchanged? Explain.
e) The PM wants to shorten the duration of the activity I from 11 weeks to 9
weeks. What is the impact of this change on project completion time
END OF THE CHAPTER