prepared and presented by

Dr. Aries Firman

21 November2015

What is a Project
What is Project Management
Objectives and tradeoffs
Planning and Control in Projects
Scheduling Methods
Constant-Time Networks
CPM Method
Use of Project Management Concepts

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Unique item - often a single unit.

Often located on one place. The unit does not
move during production.
Resources are brought to the project.
May be of any size, although we focus on
large projects.

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Commonalities between Projects & Operations

Performed by people
Constrained by limited resources
Planned, executed an controlled
Operations and Projects differ
Operations are ongoing and repetitive
Projects are temporary and unique
A Project is a temporary and intensely serious
attempt undertaken to create a unique product or
service
Temporary definite beginning and end
Unique different in some distinguishing
characteristic
Project Management is generally perceived to be
concerned with planning, organization, and control
of an ongoing process or activity
Resources used in projects are time, finance, materials, tools &
machinery, and personnel
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Project Management reflects a commitment of

resources and people to a typically important
activity for a relatively short time frame, after which
the management effort is dissolved
Project Management is the application of
knowledge, skills, tools and techniques to project
activities in order to meet or exceed stakeholder
needs and expectations from a project
Meeting or exceeding stakeholder needs and
expectations invariably involves balancing
competing demands among
Scope, time, cost, and quality
Stakeholders with differing needs and expectations
Identified needs and unidentified expectations
Client Relations Challenge
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Project Management - Subject Coverage

Subject coverage includes but is not limited to:
Pre-project activities (e.g. feasibility studies and industry benchmarking)
Project proposals and initial analysis
Project conception and design
Project management models
Post-deployment review and documentation
Project types:
Short-term, long-term, open-ended
Engineering, production, service, construction
Public sector programs and campaigns
Public/private sector partnerships
Consultancy projects
Mergers and acquisitions
Public relations campaigns
Humanitarian aid programs
Film and multimedia production
Particular events (eg. Olympics, space missions, product launches)
Disasters
Virtual projects

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Project management functions, issues,

themes and techniques, including:
Budgeting
Communication and collaboration
Current and emerging standards
Facilities and equipment support
HRM challenges
Organization change projects
Marketing and branding strategies
Negotiation skills
Outsourcing and alliances
Project coordination and scheduling
Project governance
Project knowledge management
Project management teams
Project review and evaluation
Quality assurance and testing
Resource allocation
Risk assessment and management
Scheduling
Software and systems
Time and cost estimating
Web-based PM
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A wedding
A divorce
Building construction
Bridge construction
Build aircraft carrier
R&D project
Audit

New product
introduction
Open or close a
facility
Make a movie
Fund raising
campaign
Ad campaign
Software installation

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Due Date!

Meet the
Deadline--schedule

Stay within
the budget
Meet the
specifications

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Planning

Scheduling

Execution

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I.

PROJECT PLANNING:
defines the work that
will be done on the
project and who will do
it.

II.

PROJECT SCHEDULING

Estimates and project

schedules (A Part of
project Planning)
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Identify the project customer

Establish the end product or service
Set project objectives
Estimate total resources and time required
Decide on the form of project organization
Make key personnel appointments
Define major tasks required
Establish a budget

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Develop a detailed work-breakdown structure

Estimated time required for each task
Sequence tasks in proper order
Develop a start/stop time for each task
Develop detailed budget for each task
Assign people to tasks

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Monitor actual time, cost, and performance

Compare planned to actual figures
Determine whether corrective action is needed
Evaluate alternative corrective actions
Take appropriate corrective actions

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When one or more activities threaten the time,

cost, or performance of the project, a
corrective action is necessary:

Redefine the activity (e.g. split the activity).

Add resources to the activity.
Shift resources from one activity to another

Resources = people, equipment, money

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Gantt Charts

Shown as a bar charts

Do not show precedence relations
Visual & easy to understand

Network Methods

Shown as a graphs or networks

Show precedence relations
More complex, difficult to understand and costly than
Gantt charts

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Activity times are assumed to be constant

Activities are represented by nodes in the
network
Arrows show the precedence relationships
Notations used in calculating start and finish
times:

ES(a) =
EF(a) =
LS(a) =
LF(a) =

Early Start of activity a

Early Finish of activity a
Late Start of activity a
Late Finish of activity a

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Activity

Description

Immediate

Duration

Predecessors

Days

None

Decide on Topic

Collect Data

Search the Internet

Write the Report

B and C

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Forward Pass:

ES (a) = 0 for the starting activity

EF (a) = ES (a) + t (a)*
ES (a) = max [EF (all predecessors of a)]
Project completion time = max [EF(all ending activities)]
Backward pass:
LF (a) = min [LS (all successors of a)]

LS (a) = LF - t(a)*
* t (a) denotes the duration of activity a

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1 3

B
0 1

4 9

ES EF
1 4

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1 3

B
0 1

4 9

2 4

A
ES EF

0 1

D
4 9
1 4

C
LS LF

1 4

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Critical Path = longest path in the network

All activities for which ES=LS and EF=LF
Length of critical path is equal to the project
completion time
If there is any delay on the critical path, the project
will be delayed (unless one takes corrective actions)

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Slack time equals amount of time a path may

be delayed without delaying the project
Paths not on the critical path have slack
Slack = LS-ES or LF-EF

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Gantt chart for Opening a New Office

Week

No.

Lease the site

Hire the workers

Arrange for the Furnishings

Install the furnishings

Arrange for the phones

Install the phones

Move into the Office

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Immediate
Activity

Description

Activity

Computed

Predecessors

Time

Slack

None

Lease the site

Hire the workers

Arrange for the Furnishings

Install the furnishings

Arrange for the phones

Install the phones

4,5

Move into the Office

2,6,4

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1 6

2
1 6
0 1

6 8

1 2

4 5

0 1

4 5

5 6

1 2

2 4

2 3

3 5

7
6 8

ES EF
LS LF

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Program Evaluation Review Technique

Used under conditions of uncertainty in activity
times
Requires three time estimates for each activity
Optimistic
Most likely
Pessimistic

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Critical Path Method

Used under conditions of certainty in activity
times
Requires one time estimate for each activity
Looks at time/cost trade-offs

Normal activity time

Normal cost
Crash time
Crash cost

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Crash Cost

Acceleration
Cost

Normal Cost

Crash
Time

Normal

Time Saving

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33

Focus on most sensitive activities first

Prioritize activity with least unit of crashing cost
Continue the crashing until saturated

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Scheduling is only part of a complete approach

to project management
Trade-off between sophistication and cost of
methods
Choice between constant time, PERT, CPM or
more advanced techniques
Choice of project management software
packages (MS Project, Primavera etc)

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 Project?

Slow but sure

Speed is the name of the game

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- Review the Project Life Cycle

- It consists of major items representing the Work Breakdown Structure

- Draw the curve with x line as time and y line as cumulative progress
- This represents the so called S - Curve as per original plan
- During its life cycle, monitor the actual progress as to show gaps
between actual achievements versus original plan

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Project Life Cycle Effort

Develop a
Proposed
Solution

Perform the
Project

Terminate the
Project

Effort

Identify
a Need

Start

Finish

Time

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A Common Project Life Cycle

100
% Project completion

Slow finish

Quick momentum

Slow start

0
Time

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Implications of Project Life Cycles

Project life cycle shape will affect the timing
of resource and funding needs
Understanding the general project life cycle
may help the stakeholders better
understand and accept the current status of
the project
Understanding the general project life cycle
may also help the PM make better goal
tradeoff decisions at particular times during
the project
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Risk management planning: how to approach and

plan the risk management activities
Risk identification: determine risks affecting the
project and documenting their characteristics
Risk analysis: perform quantitative/qualitative
analysis and evaluate the effects to objectives
Risk response planning: develop procedure and
techniques to enhance opportunities & reduce
threats
Risk monitoring & control: monitor residual risks,
identify new risks & evaluate effectiveness at PLC
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Revenue focused business objectives

Customer and overall stakeholders
driven
Experienced team
Management vision and leadership
Project Managers role

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PROGRESS PERFORMANCE
PRICE/COST ESTIMATES
SCHEDULE
SCOPE CREEPING
CONTRACTUAL MATTERS
EXTERNAL STAKEHOLDERS
UNFORESEEN CONDITIONS

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Well Planned
Well Designed
Well Financed
Commissionability (constructability)
Operatibility
Maintainability

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Questions:
1.

2.
3.

Total duration?
The scheduled start & finish dates for each
specific activity?
How long can the non critical activities be
delayed before they cause delay in the overall
completion time?

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