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310-PROJECT MANAGEMENT
FACULTY:
Dr. CH. VENKATAIAH
B.Tech, MBA, PhDAssociate Professor (Operations, Quality & Project Management)
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PROJECT PLANNING
UNIT
II
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 3
Project Planning
Resource Availability and/or LimitsDue date, late penalties, early completion
incentives
Budget
Activity Information
Identify all required activities
Estimate the resources required (time) to
complete each activity Immediate predecessor(s) to each activity needed
to create interrelationships
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 4
Project Scheduling and Control Techniques
Gantt Chart
Critical Path Method (CPM)
Program Evaluation and Review Technique
(PERT)
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 5
Graph or bar chart with a bar for each project activity that shows passage of time
Provides visual display of project schedule
Gantt Chart
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 6
History of CPM/PERT
Critical Path Method (CPM)
E I Du Pont de Nemours & Co. (1957) for construction ofnew chemical plant and maintenance shut-down
Deterministic task times
Activity-on-node network construction
Repetitive nature of jobs
Project Evaluation and Review Technique (PERT)
U S Navy (1958) for the POLARIS missile program
Multiple task time estimates (probabilistic nature)Activity-on-arrow network construction
Non-repetitive jobs (R & D work)
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 7
Project Network
Network analysis is the general name given to certain specific techniques which
can be used for the planning, management and control of projects
Use of nodes and arrowsArrows An arrow leads from tail to head directionally
Indicate ACTIVITY, a time consuming effort that is required toperform a part of the work.
Nodes A node is represented by a circle
- Indicate EVENT,a point in time where one or more activities startand/or finish.
Activity
A task or a certain amount of work required in the project
Requires time to complete
Represented by an arrow
Dummy Activity
Indicates only precedence relationships
Does not require any time of effort
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 8
Event
Signals the beginning or ending of an activity
Designates a point in time
Represented by a circle (node)
Network
Shows the sequential relationships among activities using
nodes and arrows
Activity-on-node (AON)
nodes represent activities, and arrows show precedence relationships
Activity-on-arrow (AOA)
arrows represent activities and nodes are events for points in time
Project Network
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 9
AOA Project Network for House
3
2 0
1
3
1 1
11 2 4 6 7
3
5
Lay
foundation
Design house
and obtain
financing
Order and
receive
materials
Dummy
Finish
work
Select
carpet
Select
paint
Build
house
AON Project Network for House
13
2
2
43
31 5
1
61
71Start
Design house
and obtain
financing
Order and receivematerials
Select paint
Select carpet
Lay foundations Build house
Finish work
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 10
Situations in network diagram
AB
C
A must finish before either B or C can start
A
B
C both A and B must finish before C can start
D
C
B
Aboth A and C must finish before either of B or D can
start
A
C
B
D
Dummy
A must finish before B can start
both A and C must finish before D can start
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management 11
Concurrent Activities
2 3
Lay foundation
Order material
(a) Incorrect precedence
relationship
(b) Correct precedence
relationship
3
42
DummyLay
foundation
Order material
1
2 0
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Dr. CH. VENKATAIAH
Associate Professor
310-Project Management
Activity. It is a clearly defined project element, a job or atask which requires the consumption of resources includingtime. It is denoted by an arrow.
Event.An event describes the start or completion of anactivity. It is denoted by a numbered circle.
Path. A path is an unbroken chain of activities from theinitiating node to some other node, generally to the lastnode indicating the end or completion of the project.
Dummy Activity. A dummy activity is that activity which hasa logical function only and consumes no time or resources.It is denoted by a dotted arrow. There are two types ofdummies:
Identity Dummy. It helps to keep the designation of eachactivity unique or different from another.
Dependency Dummy. It helps to keep the logic correct.
Definitions
12
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Activity arrows should be drawn from left to right
indicating progressive approach towards the
ultimate objective or the final event.
Crossing of activity arrows should be avoided.Arrows should be drawn as straight or bent
lines but not curved lines.
Avoid use of unnecessary dummies.
Activities are set in the order of their execution.
Events are set in the order of their occurrence.
Rules and Conventions
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Head event number should be greater than tail
event number. No event is numbered until the
tail event of each activity arrow ending into that
event has been numbered. There should be no danglers or loops. Danglers
are activities which lead no where. All activities
must be connected to events and the finishing
activities must be connected to the finish eventof the project.
Rules and Conventions
14
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 15
CPM calculation
Path
A connected sequence of activities leading from
the starting event to the ending event
Critical Path
The longest path (time); determines the projectduration
Critical Activities
All of the activities that make up the critical path
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 16
Forward Pass Earliest Start Time (ES)
earliest time an activity can start
ES = maximum EF of immediate predecessors Earliest finish time (EF)
earliest time an activity can finish
earliest start time plus activity time
EF= ES + t
Latest Start Time (LS)
Latest time an activity can start without delaying critical path time
LS= LF - t
Latest finish time (LF)latest time an activity can be completed without delaying critical path time
LS = minimum LS of immediate predecessors
Backward Pass
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 17
CPM analysis
Draw the CPM network
Analyze the paths through the network Determine the float for each activity
Compute the activitys float
float = LS - ES = LF - EF
Float is the maximum amount of time that this activitycan be delay in its completion before it becomes a
critical activity, i.e., delays completion of the project
Find the critical path is that the sequence of activities and
events where there is no slack i.e.. Zero slack Longest path through a network
Find the project duration is minimum project completion
time
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
It is used where activity duration is known withcertainty.
Activities are identified.
Dependency of activities is determinedNetwork is drawn
Earliest start times and latest finish times arecalculated
Critical path and critical activities are identified
Critical Path Method
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Rasoi Appliances wants to launch a newly
designed microwave oven.
Activities required for the launch have been
identified. Their relationship with each other
and the activity duration have also been
determined.
Example
19
Acti it Acti it Description Predecessor Time
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 20
Activity
Symbol
Activity Description Predecessor Time
(days)
A Develop advertising plan - 6
B Develop promotion and training
materials plan
- 7
C Develop training plan - 8
D Schedule Radio,TV and print media
advertising
A 20
E Develop advertising copy A 18
F Prepare promotional material for in-store introduction
B 9
G Prepare material for training of
stores representatives
B 8
H Conduct pre-introduction advertising
campaign
D, E 7
I Select store representatives for
training
C 2
J Conduct training G, I 14
K Final in-store launch of product F, H and J 10
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 21
8
C
A
B
6
7
Drawing a Network. We can start withactivities A, B and C as they have nopredecessors.
Consider the activities which can follow only A or B or C asthese have been completed. D and E follow A, F and Gfollow B and I follows C. Add these activities to the network.
Activity H is dependent on the completion of Activities Dand E. Activity J is dependent on completion of Activities Gand I. Add these activities to the network.
A dummy activity L has been drawn. This is an identitydummy. Add activity K which can start only when activitiesH, F and J are completed.
Start from the left and number the nodes as we move to theright of the network in the order of their appearance. If two ormore nodes are on the same line, number from top to bottom.
If the dummy L had not been put, then node 5 would havebeen eliminated and activity E also would have ended atnode 7. In that case, a reference to activity between nodes2-7 would refer to both D and E causing problems of
unique reference. D
E
F
G
I
20
18
9
8
2
L
J
H
7
14
K
101
2
3
4
5
6
7
8 9
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
The earliest that the project can start is attime zero.
The earliest finish time for an activity is the
earliest start time + activity duration.The earliest start time of an activity which is
dependent on two or more activities is thetime at which all the preceding activities are
completed.
Calculating Earliest Start Time (EST)
22
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 23
C
A
B
6
7
8
D
E
F
G
I
20
18
9
8
2
L
J
H
7
14
K
10
0
6
7
8
26
24
15
33 43
1
2
3
4
5
6
7
8 9
At Node 2, EST is = EST at Node 1 + Activity Duration of A
= 0 + 6 = 6
At Node 3, EST is = EST at Node 1 + Activity Duration of B
= 0 + 7 = 7
At Node 4, EST is = EST at Node 1 + Activity Duration of B
= 0 + 8 = 8
Node 7 is the starting event for activity J. Activity J can start only when
activities I and G are completed. Activity I can be completed earliest by 8 + 2
= 10, while G can end earliest on 7 + 8 = 15. Hence the earliest that J can
start is the end of 15th day.
At Node 6, EST is = EST at Node 2 + Activity Duration of D =
6 + 20 = 26, and (from Node 5 to Node 7) 24 + 0 = 24. Earliest H can start
is 26.
At Node 5, EST is = EST at Node 2 + Activity Duration of E
= 6 + 18 = 24
At Node 8, we get
From 7 to 8, 26 + 7 = 33. From 3 to 8, 7 + 9 = 16
From 6 to 8, 15 + 14 = 29. Earliest K can start is 33.
At Node 9, EST = EST at Node 8 + duration of activity K
= 33 + 10 = 43
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
The project will take 43 days.
Start form Node 9 as 43 days and work
backward to find out the latest time when
the starting event of an activity must occur,
or the latest time by which all preceding
activities must finish so that the project is
not delayed
Latest Finish Time
24
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 25
C
A
B
6
7
8
D
E
F
G
I
20
18
9
8
2
L
J
H
7
14
K
10
0
6
7
8
26
24
15
33 43
4333
26
19
26
17
0
11
6
At Node 8, LFT is = LFT at Node 9Activity Duration of K
= 4310 = 33
At Node 6, LFT is = LFT at Node 8Activity Duration of H
= 337 = 26At Node 7, LFT is = LFT at Node 8Activity Duration of J
= 3314 = 19
At Node 5, LFT is = LFT at Node 7Activity Duration of L
= 260 = 26
At Node 3, LFT is = LFT at Node 6Activity Duration of G or
LFT at Node 8Activity Duration of F
= 198 =11 or 339 = 24
If event 3 occurs at 24 then the project will get delayed. LFT is = 11
At Node 4, LFT is = LFT at Node 6Activity Duration of I
= 192 = 17At Node 2, LFT at Node 5Activity Duration of E or
LFT at Node 7Activity Duration of D.
Take the smallest value. At Node 2, LFT is = 6
At Node 1, LST = 0
1
2
3
4
5
6
7
8 9
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Spare time in an activity is called float. It isused to economise on resources withoutaffecting the overall duration of the project.
Types of floatsTotal float
Free float
Interference float
Independent float
Floats
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Total Float. It is the spare time available on any given
activity if the tail event occurred at its earliest time
and the head event at its latest time.Total Float = Time Latest at HeadTime Earliest at
TailActivity Duration.
= 3043 = 23
27
4EST 26EFT
30LST8LFT
G
3
Total Float. = 3043 = 23
Free Float. The spare time available on an activity if both the tail and thehead events occur at their earliest time. If this spare time is used up
during the execution of this activity, it will have no effect on subsequent
activities.
Free Float = Time Earliest HeadTime Earliest Tail
Activity Duration
= 2643 = 19
Total Float. = 3043 = 23
Free Float. = 2643 = 19
Interference Float.It is equal to total float less free float. If this float is used
up in an activity, it will interfere with the availability of floats available for
subsequent activities.
Interference Float = Total FloatFree Float
= 2319 = 4
Total Float. = 3043 = 23
Free Float. = 2643 = 19
Interference Float.= 2319 = 4Independent Float.The spare time available in an activity which is
neither affected by the use of float by preceding activities nor
does it affect the float available in subsequent activities.
Independent Float = Time Earliest HeadTime
Latest TailDuration.
= 2683 = 15
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
PERTProgramme Evaluation andReview Techniqueis used inprobabilistic situations when the durationof activities is not known with certainty.
Three time estimates are used for activitydurationpessimistic time, optimistic timeand most likely time.
Mean time for each activity is calculated.
Network is drawn as for CPM with meantimes as activity durations
PERT Network
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Critical activities are identified.
Standard deviation on the critical path iscalculated.
Using the standard deviation and the meanand assuming normal distribution, projectduration with different levels of confidence orvice versa can be computed.
PERT Network
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Standard deviation cannot be added. Variance can be
added. Standard deviation on the critical path is
PERT - Network
32
4Mean Time
6
o m pt t t
Standard Deviation6
p ot t
2 2 ...A BSD SD
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
PERT - Example
33
Activity Predecessor Optimistic Time
(to)
Most likely
Time (tm)
Pessimistic
Time (tp)
A - 1 2 3
B - 1 2 3
C - 1 2 3
D A 1 2 9
E A 2 3 10
F B 3 6 15
G B 2 5 14
H D, E 1 4 7
J C 4 9 20
K J, G 1 2 9
L H, F, K,
Finish
4 4 4
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Solution
34
Activity OptimisticTime (to)Mostlikely
Time (tm)
PessimisticTime (tp)MeanTime StandardDeviation
A 1 2 3 2 0.33
B 1 2 3 2 0.33
C 1 2 3 2 0.33D 1 2 9 3 1.33
E 2 3 10 4 1.33
F 3 6 15 7 2.00
G 2 5 14 6 2.00
H 1 4 7 4 1.00
J 4 9 20 10 2.67
K 1 2 9 3 1.33
L 4 4 4 4 0
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
Draw the network and find critical activities
35
51
1
1 98
7
6
5
4
3
2
B
HE
D
A
LF
C
G
J K
2
3
4 4
2
6
7
2 10 3
4
1915
122
6
0
2
2
1
91
5
1
2
2
0
1
1
7
6
C, J, K and L are critical activities. Critical path is 14789
Project will be completed in 19 days or less with 50% confidence.
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 36
Activity Optimistic
Time (to)
Most
likely
Time (tm)
Pessimistic
Time (tp)
Mean
Time
Standard
Deviation
C 1 2 3 2 0.33
J 4 9 20 10 2.67
K 1 2 9 3 1.33
L 4 4 4 4 0
2 2 2 2
2 2 2 2
S. D.
0.33 2.67 1.33 0
3
C J K LSD SD SD SD
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management 37
With 84% level of confidence how much time would theproject take?
PERT assumes that the distribution of the total projectcompletion time is normal. 84% represents Mean + 1
standard deviation. We can say with 84% level ofconfidence that the project will finish in 22 weeks.
What are the chances that the project will finish in 20weeks?
20 19 0.33
3
x
z
19 20
0.33 SD
From normal distribution tables the probability when z =0.33 is 0.6290.
There is a 63% chance that the project will finish in 20 weeks.
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Dr. CH. VENKATAIAH
Associate Professor310-Project Management
PERT is a probabilistic model and is based on three timeestimates. It is used mainly for projects where the activitydurations are uncertain, like research and developmentprojects. Levels of confidence and probabilities can be
associated with the completion date of a project. CPM is based on certainty of the activity durations. It is
used for projects where there is certainty about the timethat each activity would take. The project completionduration is not probabilistic but is certain.
DifferencesPERT and CPM
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Dr. CH. VENKATAIAH
Associate Professor
Any Queries???
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