PROJECT MANAGEMENT (BSBI 622) Chapter 9 PERT – CRITICAL PATH METHOD AND SCHEDULING

LEARNING OBJECTIVES: Define project. Explain project management. Identify elements of a project. Discuss the following criteria of project management. Analyze problems on PERT - CPM.

PROJECT MANAGEMENT   What is a Project? It is a specific and temporary activity with a starting and ending date, clear goals, defined responsibilities and a budget.

What is Project Management? Is using modern management techniques to carry out and complete a project from start to finish in order to achieve pre – set targets of quality, time and cost. Examples of Business Projects Setting up a new IT systems Relocating the company operations Installing machinery Developing and launching a new product Building a factory

BASIC ELEMENTS OF A PROJECT 1. Resources - the people, equipment and materials needed 2. Time - each activity will need to be timed so that an overall project duration can be worked out 3. Money - the project must be kept to budget and the expected profit from it should be aimed for. 4. Scope - the overall size and scale of the project must be established and the specific objectives for it set.

CRITERIA OF PROJECT MANAGEMENT   1. Defining the project carefully, including the setting of clear objectives 2. Dividing the project up into manageable tasks and activities 3. Controlling the project at every stage to check that limits are being kept to 4. Giving each team member a clear role 5. Providing controls over quality issues and risks.

FAILURE TO MANAGE PROJECT may result to:   1. Penalty payments having to be paid to the customer 2. Bad publicity in the construction industry 3. Loss of future contracts

PERT - CPM PERT – Program Evaluation and Review Technique CPM – Critical Path Method PERT – CPM are most widely used techniques for planning and coordinating large – scale projects. - Is also known as Network Analysis - Indicates the shortest possible time in which a project can be completed.

PROCESS OF CRITICAL PATH ANALYSIS 1. Identify the objective of the project Ex: building a factory in six weeks 2. Put the tasks that make up the project into the right sequence and draw a network diagram 3. Add the durations of each of the activities 4. Identify the critical path – those activities that must be finished in the shortest time. 5. Use the network as a control tool when problems occur during the project

PERT – CPM Interpretations Arrows ( ) - represents activities Nodes ( ) - represents end of every activity S - Start of activity F - Finishing part of the activity Time/duration – no. of days or weeks each activity is done Precedence – the activities that must be finished before another activity is to be done

Sample Illustrations A B C 1 3 5 Activities must be completed in sequence first A, then B, and then C Activity A must be completed before B or C can A B start C

Activity Precedence Time B - 4 C A 3 D B 2 E C 3

C E A B D

 Requirements: 1. Find the path with EARLIEST TIME (A,C,E = 8 days) 2. Find the path with LONGEST TIME (B,D = 6 days) 3. Determine the CRITICAL PATH (A,C,E ) Critical Path will always be the path with longest path.  

1 ACTIVITY PRECEDENCE DURATION A - 1 B 3 C 4 D 6 E 7 F Requirements:   1 ACTIVITY PRECEDENCE DURATION A - 1 B 3 C 4 D 6 E 7 F Requirements: a. Prepare the network diagram. b. Find path with Earliest Time. c. Find path with Longest Time. d. Determine the Critical Path.

2 ACTIVITY PRECEDENCE DURATION A - 3 B 5 C D 6 E C, D 7 F 8 G   2 ACTIVITY PRECEDENCE DURATION A - 3 B 5 C D 6 E C, D 7 F 8 G Requirements: a. Prepare the network diagram. b. Find path with Earliest Time. c. Find path with Longest Time. d. Determine the Critical Path.

3 ACTIVITY PRECEDENCE DURATION A - 4 B C 3 D 2 E F 6 G 5 H I F, G   3 ACTIVITY PRECEDENCE DURATION A - 4 B C 3 D 2 E F 6 G 5 H I F, G Requirements: a. Prepare the network diagram. b. Find path with Earliest Time. c. Find path with Longest Time. d. Determine the Critical Path.