PROJECT MANAGEMENT AND APPRAISAL

PGDM III Sem Chandra Mohan

Project Project SchedulingScheduling- Introduction Introduction

Scheduling: In simple terms Scheduling is time sequence of activities. It is a process of listing down step by step, in sequential order the activities involved in the implementation of a project.
It is a sub-phase of planning. It is an exercise of integrating time, resources and work elements in the most efficient manner to achieve the specified objective function. Scheduling interrelates Availability of resources and their economic distribution, time duration of individual activities, and for the total work

An An Analogy Analogy to to Project Project Planning Planning

Project Plans are like road maps:
Tells us how to get there where you want to go (Objective) Also tells us how much progress has been made Work packages / tasks/ activities are building blocks to build this road Along the way are signposts called events and milestones (that shows the progress of a project) Events and milestones are a point in time, whereas workpackages are an actual process

Types Types of of Scheduling Scheduling

Forward Scheduling:
Starts as soon as clearance is available for an activity Can finish even before the required due date

Backward Scheduling:
Starts backward from the required due date of finishing the activity and thus start date/time is calculated Start time thus calculated is the latest starting date Based on the philosophy finish economically when required

Planning Planning and and Scheduling Scheduling Techniques Techniques

Main techniques of project planning and scheduling are as follows:
Bar chart (Also knows as Gantt Chart) Networking techniques
PERT (Programme Evaluation and Review Technique) CPM (Critical Path Method)

Line of Balance (LOB)

Some other not so common techniques are: GERT, Liner programming and Simulation

Network Techniques in Project Management

Project Project Networks Networks

Network techniques are used for planning and execution of a project by constructing schedules. It is graphical representation of activities consisting of certain configuration of arrows and nodes for showing the logical sequence of various tasks or activities to be performed to achieve project activities Project Networks also called as logic diagrams, shows the major elements of a group of tasks and their logical relationship.
It highlights those tasks that must be completed before a particular task can be started. This relationship is called as Precedence

A A Network Network DiagramDiagram- Example Example

A network diagram for the Build Shed project

The Cut wood activity can be carried out in parallel to the Build shed base & Supervise cement hardening ones. The dark arrows show what is known as the Critical Path.

Constructing Constructing a a Project Project NetworkNetwork- Terminology Terminology

Activity: Activity refers to some action, which requires Time, Money and Resources. Activity are of following types:
Preceding activity Succeeding activity Dummy activity: Activity which neither requires any time nor any resources to get complete. These activities are included in network diagrams only to indicate precedence relationship. Merge Activity: an activity that has two or more preceding activities on which it depends. Burst Activity: an activity that has two or more activity immediately following it. Parallel (Concurrent) Activities: Activities that can occur independently and, if desired, at the same time. Critical activity: Any Activity that falls on critical path

Constructing Constructing a a Project Project NetworkNetwork- Terminology Terminology

Path: a sequence of connected, dependent activities. Critical path:
The longest path (in terms of time) through the activity network that allows for the completion of all project-related activities; the shortest expected time in which the entire project can be completed. Delays on the critical path will delay completion of the entire project. C A B D

The The Critical Critical Path Path

The expected project duration is determined by finding the longest path through the network. Such a longest path from start node to end node is called the Critical path In project management, a critical path is the sequence of project network activities which add up to the longest overall duration. This determines the shortest time possible to complete the project. Any delay of an activity on the critical path directly impacts the planned project completion date

Example Example
Activity
J M V Y L Q W X

Description
System Design Hardware Purchase and delivery Hardware assembly and test Hardware Installation Software specification Software purchase and delivery System Test User Test

Immediate Duration predecessors (Weeks)

--J M V J L Y, Q W 6 4 6 8 2 8 1 1

Prepare a Network Diagram and Determine the Critical Path.

Constructing Constructing a a Project Project NetworkNetwork- Terminology Terminology

Terminology
Event: Generally an event refers to starting or ending point of an activity. It is just a point in time and does not consume any time.
Head event Tail event

Constraints: Constraints refer to inequalities which establishes relationship between the sequence of network activities. Eg. There may be a condition that unless an activity is completed, the other activity can not be started. X < Y will mean unless activity X is completed, Y cant be started.

Constructing Constructing a a Project Project Network Network

Activity: It is a work task, something that has to be done. It can be a unit of work at any level of the WBS. Two common approaches for constructing network diagrams are:
Activity-on-Node (AON): Used in CPM analysis
Uses a Node to depict an activity

Activity-on-Arrow (AOA): Used in PERT analysis

Uses an arrow to depict an activity

Construction Construction of of Network Network Diagram Diagram

Basic Rules to Follow in Developing Project Networks:
Networks typically flow from left to right. An activity cannot begin until all of its preceding activities are complete. Arrows indicate precedence and flow and cannot cross over each other (unless completely unavoidable) Identify each activity with a unique number; this number must be greater than its predecessors. Looping is not allowed. Conditional statements are not allowed. Use common start and stop nodes.

Activity-on-Node Activity-on-Node (AON) (AON) Fundamentals Fundamentals

Activity-on-Node Activity-on-Node (AON) (AON) Fundamentals Fundamentals

How How to to construct construct an an AON AON network network

To construct an AON project network, start by drawing the first activity in the project as the beginning node. From this node, draw lines to the activities that happen next Before activities can be included in a network, their relationships to each other must be known:
What activities are its predecessors? What activities are its successors? What activities can be done at the same time?

Example Example of of AON AON network network

Example Example of of AONAON- Partial Partial Network Network

Example Example of of AONAON- Complete Complete Network Network

Activity Activity on on Arrow Arrow (AOA)(AOA)- Building Building Blocks Blocks

Activity-on-Arrow Activity-on-Arrow (AOA) (AOA) Fundamentals Fundamentals

Activity-on-Arrow Activity-on-Arrow (AOA) (AOA) Fundamentals Fundamentals

How How to to construct construct an an AOA AOA network network

Also called as AOL (Activity on Line method) Here an activity can be defined in two ways, either by name or by the nodes at the ends. To construct an AOA network, start by first drawing a node to represent the origin event, representing the start of first activity of the project From this node, an arrow is drawn to another node, representing finish of the first activity Activities to be performed next are then added in sequence or in parallel from the last node Dummy activities are used in AOA networks, to illustrate precedence relationship
It serves only as connector and represents neither work nor time Solves the problem/confusion of information captured by an event node.

Example Example of of AOA AOA network network

Example Example of of AONAON- Partial Partial Network Network

Example Example of of AONAON- Partial Partial Network Network

Example Example of of AONAON- Partial Partial Network Network

Example Example of of AONAON- Complete Complete Network Network

AON AON versus versus AOA AOA

No dummy activities are required for AON and thus AON are simpler to construct Lags can be incorporated in AON while they are difficult to do in AOA Since AOA diagrams use line segments to represent the flow of work and time, it is easy to construct schedules that are similar in appearance to GANTT charts

QuestionsQuestions- Network Network Diagrams Diagrams

Question 1: A project has to be undertaken by completing activities A to I. Following information is given regarding precedence relationship between activities.
A < D, E B, D < F C < G B, D, G < H B, D, F, G < I

On the basis of above information, prepare a network diagram for given project.

QuestionsQuestions- Network Network Diagrams Diagrams

Question 2: The following is known for a project:
Activity Duration 1-2 20 1-3 25 2-3 10 2-4 12 3-4 6 4-5 10

Draw/ Calculate: a)Network diagram of the project b)Critical path Theoretical questions can also be framed from Numerical/practical topics. Ex: Ques 3 Question 3: What is the procedure of determining Critical Path?

Computations Computations in in Network Network Diagrams Diagrams

Forward PassEarliest Times
How soon can the activity start? (early startES) How soon can the activity finish? (early finishEF) How soon can the project finish? (expected timeET)

Backward PassLatest Times

How late can the activity start? (late startLS) How late can the activity finish? (late finishLF) Which activities represent the critical path? How long can it be delayed? (slack or floatSL)

Calculations Calculations for for ES, ES, EF EF and and LS, LS, LF LF
ES: Early start of an activity depends on the completion time of an activitys immediate predecessors. It can be found by summing up of duration (ES time each predecessor activity + duration of immediate predecessor) of each predecessor activity along the path. ES reflects the total time along the longest path LS: Late times: Latest allowable times that the activity can be started and finished without delaying the completion of project.

Computations Computations in in Network Network Diagrams Diagrams

Network activities
ES: early start EF: early finish LS: late start LF: late finish

Used to determine
Expected project duration Slack time (Total Slack and Free Slack) Critical path

Computations Computations in in Network Network Diagrams Diagrams

Total Slack is defined as amount of variation between when an activity must take place (LS) and when it can take place at earliest (ES)
Total Slack = LS ES or LF EF For activities lying on critical path ES = LS and thus slack = 0

Free Slack is the amount of time an activity can be delayed without affecting the start times of any successor activities.
Free Slack = ES (of earliest successor) EF (of given activity)

PERT PERT
PERT (Program Evaluation and Review Technique), is used in projects where there is uncertainty associated with the nature and duration of activities.
PERT analysis is on the basis that a small set of activities, which make up the longest path through the activity network control the entire project.

In AOA, AON methods computations are done using the best time estimates. PERT however addresses uncertainty in duration by using three time estimatesoptimistic, most likely and pessimistic. These estimates are used to calculate the Expected time for an activity
Optimistic time: The minimum time an activity could take-the situation where everything goes well Pessimistic time: it is the maximum time an activity could takewhen bad luck is encountered at every stage Most likely: Normal time to complete the job

PERT: PERT: Time Time Estimates Estimates for for a a Project Project
Optimistic time
Time required under optimal conditions

Pessimistic time
Time required under worst conditions

Most likely time

Most probable length of time that will be required

Expected time (te)

te

t + 4t +t o m p = 6

te = expected time to = optimistic time tm = most likely time tp = pessimistic time

PERT: PERT: Variance Variance

Variance: V or 2 (variance) is a measure of variability in the activity completion time:
2 (t t ) p o V = 2 = 36 Larger is the value of V, the less reliable t , and

the higher likelihood that the activities will be completed much earlier or much later than t e. Total time of a project is summation of expected time of activities on critical path Variation of Project is computed as sum of the variances of the activity durations along the critical path

PERT PERT :: Path Path probabilities probabilities

to Optimistic time

tm

te

tp Pessimistic time

Most likely time (mode)

Z indicates how many standard deviations of the path distribution the specified time is beyond the expected path duration .

Z =

Specified time (Ts) Path mean(Te) Path standard deviation ()

PERTPERT- Example Example

Ques: The details of a project are given below:
Activity A B C D E F G H I Nodes 1-2 2-3 2-4 3-6 3-5 4-6 5-7 6-7 7-8 Optimistic time 4 5 4 15 10 8 4 1 6 Pessimistic time 8 15 12 25 26 16 12 3 8 Normal time 6 7 8 20 18 9 8 2 7

Determine the probability of completing the project in 51 weeks

PERTPERT- Example Example

Solution:
Step I: Prepare the network diagram and determine the critical path Step II: compute expected time and variance for each activity Step III: Calculate variance for Critical path, and thus find standard deviation Probability of completing the project in 51 weeks :
Z = (Specified time expected time) / Std dev of critical path Check for value of Z in probability distribution table