1. PROJECT MANAGEMENT Outline What is project mean? Examples of projects…
Project Planning and Control
Project Life Cycle
Gantt Chart
PERT/CPM

2. What is Project? Project
What is the different between normal business activities and Project?
Project
Unique, one time operations design to accomplish a specific set of objectives in a limited time frame.

3. Examples of project… Building a house Building a factory
Add assembly line in the factory
Merging to companies
Managing political campaign
Designing a new product
Soft ware development

4. In project a lot of problem arise? Why?
a lot of activities should be handles
Limited time
Restricted resources

5. Project Planning and Control
Definition of Project Management
Work Breakdown Structure
Project Control
Organizational Structures
Critical Path Scheduling
CPM with a Single Time
CPM with Three Activity Time Estimates 2

6. Project Management Project Project Management
Lengthy network of activities needed to complete a major output.
Project Management
Planning, execution, and controlling resources to needed to complete the project. 3

7. Project Life Cycle Definition Planning Execution Termination
Why we need to start new project
Feasibility Analysis (Cost, Benefit , risk of under taking a project)
Planning
Details of the work, estimates time, Human resource and cost
Execution
During which a project itself is done
Termination
During which closer is achieved

8. Project Planning, Controlling and Scheduling
1. Setting goals.
2. Defining the project.
3. Tying needs into timed project activities.
4. Organizing the team.
Before Project

9. Project Planning, Controlling and Scheduling
Project Scheduling:
1. Tying resources to specific activities.
2. Relating activities to each other.
3. Updating and revising on regular basis.

10. Project Planning, Controlling and Scheduling
Project Controlling:
1. Monitoring resources, costs, quality and budgets.
2. Revising and changing plans.
3. Shifting resources to meet demands.
During Project

11. Work Breakdown Structure
Program
Project 1
Project 2
Task 1.1
Subtask 1.1.1
Work Package
Level 1 2 3 4
Task 1.2
Subtask 1.1.2
Work Package 4

12. Project Control: Gantt Chart
The Gantt chart is a popular tool for planning and scheduling simple project.
It enables a manager to initially schedule project activities and then to monitor progress over time by comparing planned progress to actual progress

13. Project Control: Gantt Chart
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
Time a b a c b d c d d 6

14. PERT and CPM PERT (program evaluation and review technique)
U.S. Navy Special Projects Office (1958)
Polaris missile project
CPM (critical path method)
J. E. Kelly of Remington-Rand and M. R. Walker of Du Pont (1957)
Scheduling maintenance shutdowns of chemical processing plants 15

15. Questions answered by PERT/CPM
When will the entire project be completed?
What are the critical activities or tasks in the project, that is, the ones that will delay the entire project if they are late?
Which are the non-critical activities, that is, the ones that can run late without delaying the entire project’s completion?
What is the probability that the project will be completed by a specific date?

16. Questions answered by PERT/CPM
At any particular date, is the project on schedule, behind schedule, or ahead of schedule?
On any given date, is the money spent equal to, less than, or greater than the budgeted amount?
Are there enough resources available to finish the project on time?
If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the least cost?

17. To Find Critical Path ???
To find the critical path, need to determine the following quantities for each activity in the network:
1. Earliest start time (ES): the earliest time an activity can begin without violation of immediate predecessor requirements.
2. Earliest finish time (EF): the earliest time at which an activity can end.
3. Latest start time (LS): the latest time an activity can begin without delaying the entire project.
4. Latest finish time (LF): the latest time an activity can end without delaying the entire project.

18. CPM with Single Time Estimate
Consider the following consulting project:
Activity
Designation
Immed. Pred.
Time (Weeks)
Assess customer's needs A
None 2
Write and submit proposal B 1
Obtain approval C
Develop service vision and goals D
Train employees E 5
Quality improvement pilot groups F
D, E
Write assessment report G
Develop a critical path diagram and determine the
duration of the critical path and slack times for all
activities 17

19. First draw the network
D, 2
E, 5
F, 5
A, 2
B, 1
G, 1
C, 1 18

20. Determine early start and early finish times
EF=6
D, 2
E, 5
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4 ?
F, 5
A, 2
B, 1
C, 1
G, 1
ES=4
EF=9 19

21. When I can start depends on when predecessors finish.
EF=6
D, 2
E, 5
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=9
EF=14
ES=14
EF=15
F, 5
A, 2
B, 1
C, 1
G, 1
ES=4
EF=9 20

22. Determine late starts and late finish times
LS=7
LF=9
F, 5
A, 2
B, 1
C, 1
G, 1
ES=4
EF=9 ?
LS=9
LF=14
LS=14
LF=15
LS=4
LF=9 21

23. Don’t delay the project
ES=4
EF=6
D, 2
E, 5
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=9
EF=14
ES=14
EF=15
LS=7
LF=9
F, 5
A, 2
B, 1
C, 1
G, 1
ES=4
EF=9
LS=3
LF=4
LS=2
LF=3
LS=0
LF=2
LS=9
LF=14
LS=14
LF=15
LS=4
LF=9 22

24. Critical Path & Slack Duration = 15 weeks ES=4 EF=6 D, 2 ES=0 EF=2
Slack=(7-4)=(9-6)= 3 Wks
D, 2
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=9
EF=14
ES=14
EF=15
LS=7
LF=9
F, 5
A, 2
B, 1
C, 1
G, 1
ES=4
EF=9
LS=3
LF=4
LS=2
LF=3
LS=0
LF=2
LS=9
LF=14
LS=14
LF=15
E, 5
LS=4
LF=9
Duration = 15 weeks 23

26. Activity Times
To find the expected activity time (t), the beta distribution weights the estimates as follows

27. Activity Times The time estimates in PERT are
Optimistic time (a) = time an activity will take if everything goes as well as possible. There should be only a small probability (say, 1/100) of this occurring.
Pessimistic time (b) = time an activity would take assuming very unfavorable conditions. There should also be only a small probability that the activity will really take this long.
Most likely time (m) = most realistic time estimate to complete the activity

28. Activity Times The time estimates in PERT are
Optimistic time (a) = time an activity will take if everything goes as well as possible. There should be only a small probability (say, 1/100) of this occurring.
Pessimistic time (b) = time an activity would take assuming very unfavorable conditions. There should also be only a small probability that the activity will really take this long.
Most likely time (m) = most realistic time estimate to complete the activity

29. Consider the following project:
Immed. Optimistic Most Likely Pessimistic
Activity Predec. Time (Hr.) Time (Hr.) Time (Hr.) A B
C A
D A
E A
F B,C
G B,C
H E,F
I E,F
J D,H
K G,I

30. PERT/ CPM CPM uses two sets of time and cost estimates for activities:
A normal time and cost and
A crash time and cost
The normal cost is an estimate of cost to complete an activity in normal time.
The crash time is the shortest possible activity time.
Crash cost is the cost of completing the activity on a crash or deadline basis.

31. Project Crashing with PERT/CPM: Four Steps
Find the normal critical path and identify the critical activities.
Compute the crash cost per week (or other time period) for all activities in the network.
This process uses the following formula:
crash cost/time period =
crash cost – normal cost
normal time – crash time

32. Project Crashing with PERT/CPM: Four Steps
3. Select the activity on the critical path with the smallest crash cost per week.
Crash this activity to the maximum extent possible or to the point at which your desired deadline has been reached
4. Check to be sure that the critical path you were crashing is still critical.
Often, a reduction in activity time along the critical path causes a non-critical path or paths to become critical.
If the critical path is still the longest path through the network, return to step 3.
If not, find the new critical path and return to step 2.

33. Subproject
For extremely large projects, an activity may be made of several smaller sub-activities.
Each activity might be viewed as a smaller project or a subproject of the original project.
The person in charge of the activity might wish to create a PERT/CPM chart for managing this subproject.
Many software packages have the ability to include several levels of subprojects

34. In class assignment Immediate Completion
Activity Description Predecessors Time (days)
A Initial Paperwork
B Build Body A
C Build Frame A
D Finish Body B
E Finish Frame C
F Final Paperwork B,C
G Mount Body to Frame D,E
H Install Skirt on Frame C