PROJECT MANAGEMENT

TIME MANAGEMENT TECHNIQUES

Presented by:
Piyush Agarwal
2015MB22

ABSTRACT
Completing a project on time and within budget
is not an easy task. The project scheduling
phase plays a central role in predicting both the
time and cost aspects of a project. More
precisely, it determines a timetable in order to
be able to predict the expected time and cost
of each individual activity.

Introduction
What is the expected project finish date?
How can precedence relations between
activities be modeled in a network?
What are the expected activity start and
finish times?
What is the effect of variability in activity
time estimates on the project duration?

Project Definition Phase

In the definition phase of a projects life cycle, the organization
defines the project objectives, the project specifications and
requirements and the organization of the entire project. In doing
so, the organization decides on how it is going to achieve all
project objectives.
The Work Breakdown Structure (WBS) is a fundamental concept
of the definition phase that, along with the Organizational
Breakdown Structure (OBS), identifies the set of activities
needed to achieve the project goal as well as the responsibilities
of the project team for the various subparts of the project.
This information needs to be transformed into a network
diagram that identifies a list of project activities and the
technological links with the other activities. This project network
is an easy and accessible tool for the critical path calculations to
determine the earliest and latest activity start times of the

WBS and OBS

The preparation of a Work Breakdown Structure (WBS) is an
important step in managing and mastering the inherent
complexity of the project. It involves the decomposition of major
project deliverables into smaller, more manageable components
until the deliverables are defined in sufficient detail to support
development of project activities (PMBOK 2004).
The WBS is a tool that defines the project and groups the
projects discrete work elements to help organize and define the
total work scope of the project. It provides the necessary
framework for detailed cost estimation and control along with
providing guidance for schedule development and control. Each
descending level of the WBS represents an increased level of
detailed definition of the project work.

Network Analysis
To construct a complete and detailed WBS, the work packages of a
WBS need to be further subdivided into activities.
It might improve the level of detail and accuracy of cost, duration and
resource estimates which serve as inputs for the construction of a
project network and scheduling phase.
The definition phase, which determines the list of activities, the
precedence relations, possible resource requirements and the major
milestones of the project, is different from the scheduling phase in the
level of detail and the timing of project activities.
The scheduling phase aims at the determination of start and finish
times of each activity of the project, and consequently, determines the
milestones in detail. This can only be done after the construction of the
network in the definition phase.
Incorporating these technological links between any pair of activities is
a first step in the construction of the project network. A network
consists of nodes and arcs and incorporates all the activities and their
technological precedence relations. A network can be seen as a graph
G(N, A) where the set N is used to denote the set of nodes and A to

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 arrows
Arrows An arrow leads from tail to head directionally
Indicate ACTIVITY, a time consuming effort that is required to
perform a part of the work.
Nodes A node is represented by a circle
- Indicate EVENT, a point in time where one or more activities start
and/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

Project Network
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
10

 One type is the activity-on-arc (AOA) project network, where each activity is
represented by an arc. A node is used to separate an activity (an outgoing arc)
from each of its immediate predecessors (an incoming arc). The sequencing of
the arcs thereby shows the precedence relationships between the activities.

The second type is the activity-on-node (AON) project network, where each
activity is represented by a node. The arcs then are used just to show the
precedence relationships between the activities. In particular, the node for each
activity with immediate predecessors has an arc coming in from each of these
predecessors.

AOA Project Network for House

Lay
foundation

3
Design house
and obtain
financing

3
2

Dummy
0

1
Order and
receive
materials

4
Select
paint

Build
house

3
1

Finish
work

Select
carpet

AON Project Network for House

Lay foundations

Build house

4
3

2
2
Start

Finish work

7
1

1
3

Design house and

obtain financing
darla/smbs/vit

3
1
Order and receive
materials

5
1
Select paint

6
1
Select carpet
12

Situations in network diagram

A must finish before either B or C can start

C

both A and B must finish before C can start

B
A

B
A

D
B

A must finish before B can start

Dummy
C

both A and C must finish before either of B

or D can start

both A and C must finish before D can start

13

My word.....
My purpose here is to give a few ideas about PERT , CPM
& other project management tools for entrepreneurs .
These are introductory ideas. Be an Entrepreneur, change
the society, change the world. Go with positive spirit.
Please pass this presentation to all those who might need
it. Let us spread knowledge as widely as possible. I
welcome your suggestions. I also request you to help me in
spreading social entrepreneurship across the globe for
which I need support of you people not of any VIP. With
your help, I can spread the ideas for which we stand....

History of CPM/PERT
Critical Path Method (CPM)
E I Du Pont de Nemours & Co. (1957) for
construction of new 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)
15

What is CPM ?
Critical Path Method = here we try to identify the
critical path for completion of a project. Cricial =
very important
When we are implementing a project, we are
doing a series of activities, which are called
project. There are many ways to do a project. In
CPM, we try to pick up the path which consists of
all the activities which cannot be delayed. This
path requires greater attention.

Why is CPM more

important ?
If an activity is on CPM, it cannot be delayed.
Other activities can be delayed, but the activities
on CPM cannot be delayed. Delay of one day will
delay the project.

What is SLACK?

You can delay other activities (other than Critical Path

activities ).
Thus there is slack (means you can delay some activities ).
Slack denotes flexibility / freedom / ease on the part of those
implementing the project

What is PERT ?

PERT = project evaluation and review technique

Here we try to look at each activity and try to
find out expected time to complete the project.

What is the difference between

PERT & CPM?

PERT gives us the best possible estimate of doing

the project ( in time).
CPM tells us about activities which are critical
(delay in these activities will delay the project

Network example
Illustration of network analysis of a minor redesign of a product and
its associated packaging.
The key question is: How long will it take to complete this project ?

For clarity, this list is kept to a minimum by specifying only

immediate relationships, that is relationships involving activities
that "occur near to each other in time".

Questions to prepare activity network

Is this a Start Activity?

Is this a Finish Activity?
What Activity Precedes this?
What Activity Follows this?
What Activity is Concurrent with this?

darla/smbs/vit

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 project
duration
Critical Activities
All of the activities that make up the critical path

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

Backward Pass

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

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 activity
can 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

CPM Example:
CPM Network
f,f, 15
15
h,
h, 99

g,
g, 17
17

a,
a, 66

i,i, 66
b,
b, 88
d,
d, 13
13
c,
c, 55
e,
e, 99

j,j, 12
12

CPM Example
ES and EF Times

f,f, 15
15
h,
h, 99

g,
g, 17
17

a,
a, 66

0 6

i,i, 66

b,
b, 88

0 8

d,
d, 13
13

c,
c, 55

0 5

e,
e, 99

j,j, 12
12

CPM Example
ES and EF Times

f,f, 15
15

6 21
h,
h, 99

g,
g, 17
17

a,
a, 66

6 23

0 6

i,i, 66

b,
b, 88

0 8
c,
c, 55

0 5

d,
d, 13
13

8 21
e,
e, 99

5 14

j,j, 12
12

CPM Example
ES and EF Times

f,f, 15
15

6 21
h,
h, 99

g,
g, 17
17

a,
a, 66

6 23

0 6

23 29

b,
b, 88

0 8
c,
c, 55

0 5

21 30

i,i, 66

d,
d, 13
13

8 21
e,
e, 99

5 14

j,j, 12
12

21 33
Projects EF = 33

CPM Example
f,f, 15
15

LS and LF Times

6 21

a,
a, 66

h,
h, 99

21 30
24 33

g,
g, 17
17

6 23

0 6

i,i, 66

23 29
27 33

b,
b, 88

0 8

d,
d, 13
13

8 21
c,
c, 55

0 5

e,
e, 99

5 14

j,j, 12
12

21 33
21 33

CPM
CPM Example
Example
LS and LF Times

f,f, 15
15

6 21
18 24
a,
a, 66

h,
h, 99

21 30
24 33

g,
g, 17
17

6 23
10 27

0 6
4 10
b,
b, 88

0 8
0 8
c,
c, 55

0 5
7 12

d,
d, 13
13

8 21
8 21
e,
e, 99

5 14
12 21

i,i, 66

23 29
27 33
j,j, 12
12

21 33
21 33

CPM
CPM Example
Example
Float

f,f, 15
15

3 6 21
9 24
a,
a, 66

h,
h, 99

g,
g, 17
17

4 6 23
10 27

3 0 6
3 9
b,
b, 88

0 0 8
0 8
c,
c, 55

7 0 5
7 12

d,
d, 13
13

0 8 21
8 21
e,
e, 99

7 5 14
12 21

i,i, 66

3 21 30
24 33

4 23 29
27 33
j,j, 12
12

0 21 33
21 33

CPM Example
Critical Path

f,f, 15
15
h,
h, 99

g,
g, 17
17

a,
a, 66

i,i, 66
b,
b, 88
d,
d, 13
13
c,
c, 55
e,
e, 99

j,j, 12
12

PERT
PERT is based on the assumption that an activitys
duration follows a probability distribution instead of
being a single value
Three time estimates are required to compute the
parameters of an activitys duration distribution:
pessimistic time (tp ) - the time the activity would
take if things did not go well
most likely time (tm ) - the consensus best estimate
of the activitys duration
optimistic time (to ) - the time the activity would
take if things did go well

tp + 4 tm + to

Mean (expected time): te =

Variance: Vt = =
2

darla/smbs/vit

tp - to
6

PERT analysis
Draw the network.
Analyze the paths through the network and find the
critical path.
The length of the critical path is the mean of the
project duration probability distribution which is
assumed to be normal
The standard deviation of the project duration
probability distribution is computed by adding the
variances of the critical activities (all of the activities
that make up the critical path) and taking the
square root of that sum
Probability computations can now be made using
the normal distribution table.

Probability computation
Determine probability that project is completed within specified
time
Z=

x-

where = tp = project mean time

= project standard mean time
x = (proposed ) specified time

Normal Distribution of Project Time

Probability

= tp

Time

PERT Example
Immed. Optimistic Most Likely Pessimistic
Activity Predec. Time (Hr.) Time (Hr.)
A
B
C
D
E
F
G
H
I
J
K

--A
A
A
B,C
B,C
E,F
E,F
D,H
G,I

4
1
3
4
0.5
3
1
5
2
2.5
3

6
4.5
3
5
1
4
1.5
6
5
2.75
5

Time (Hr.)
8
5
3
6
1.5
5
5
7
8
4.5
7

PERT Example
PERT Network
D

C
B

F
G

PERT Example

Activity

Expected Time

6
B
C
D
E
F
G
H
I
J
K

Variance

4/9
4
3
5
1
4
2
6
5
3
5

4/9
0
1/9
1/36
1/9
4/9
1/9
1
1/9
4/9

PERT Example
Activity
A

ES

EF

LS
0

B
C

0
6

4
9

D
E
F

6
6
9

11
7
13

9
H
I
J
K

11
13
13
19

18

Slack

0 *critical
5
9
6
9
15
12

20
13
9

16
19
18
22

23

LF

18

9
6
13

18
14
13
20

0
7

20
18
23
23

5
0

1
0*
1
0*

PERT Example
Vpath = VA + VC + VF + VI + VK
= 4/9 + 0 + 1/9 + 1 + 4/9
= 2
path = 1.414
z = (24 - 23)/(24-23)/1.414 = .71
From the Standard Normal Distribution table:
P(z < .71) = .5 + .2612 = .7612

Project Crashing
Crashing
reducing project time by expending additional
resources
Crash time
an amount of time an activity is reduced
Crash cost
cost of reducing activity time
Goal
reduce project duration at minimum cost

Activity cost

Activity crashing

Crash
cost

Crashing activity
Slope = crash cost per unit time
Normal Activity

Normal
cost

Normal
time
Crash
time

Activity time

Time-Cost Relationship

Crashing costs increase as project duration decreases

Indirect costs increase as project duration increases
Reduce project length as long as crashing costs are less than
indirect costs

Time-Cost Tradeoff

Total project cost

Indirect
cost

cost

Min total cost =

optimal project
time

Direct cost
time

Project Crashing example

4

2
8

12

7
4

12

3
4

5
4

6
4

Time Cost data

Activity Normal Normal Crash Crash Allowable slope

time
cost Rs time cost Rs crash time
1
2
3
4
5
6
7

12
8
4
12
4
4
4

3000
2000
4000
50000
500
500
1500
75000

7
5
3
9
1
1
3

5000
3500
7000
71000
1100
1100
22000
110700

5
3
1
3
3
3
1

400
500
3000
7000
200
200
7000

R500

R7000

2
8

12

Project duration = 36

R700
7
4

12

R400

3
4

To..

6
4

5
4

R3000

From..

R200

R200

R500

R7000

2
8

12

R700
7
4

Project
duration = 31
Additional cost
= R2000

R400

3
4
R3000

5
4
R200

6
4
R200

Benefits of CPM/PERT

Useful at many stages of project management

Mathematically simple
Give critical path and slack time
Provide project documentation
Useful in monitoring costs

CPM/PERT can answer the following important

questions:
How long will the entire project take to be completed? What are the
risks involved?
Which are the critical activities or tasks in the project which could
delay the entire project if they were not completed on time?
Is the project on schedule, behind schedule or ahead of schedule?
If the project has to be finished earlier than planned, what is the best
way to do this at the least cost?

Limitations to CPM/PERT
Clearly defined, independent and stable activities
Specified precedence relationships
Over emphasis on critical paths
Deterministic CPM model
Activity time estimates are subjective and depend on
judgment
PERT assumes a beta distribution for these time estimates,
but the actual distribution may be different
PERT consistently underestimates the expected project
completion time due to alternate paths becoming critical

To overcome the limitation, Monte Carlo simulations can be

performed on the network to eliminate the optimistic bias

Computer Software
for Project Management
Microsoft Project (Microsoft Corp.)
MacProject (Claris Corp.)
PowerProject (ASTA Development Inc.)
Primavera Project Planner (Primavera)
Project Scheduler (Scitor Corp.)
Project Workbench (ABT Corp.)

Gantt Charts
The Gantt chart is named after its originator Henry Gantt and
displays a timetable for each activity of the project. Each activity
is shown as a block or bar and drawn to scale in time. The
timescale is usually drawn horizontally while the different
activities are displayed on the vertical axis.
This chart is used for scheduling and is often used in conjunction
with the project network to show the technological dependencies
between activities.
The bars represent the earliest start and finish times of each
activity of the example project. The gray lines following the
activity bars represent the activity slack, and hence, shifting
activities towards the end of these gray bars results in the
corresponding LSS. Activities without slack (i.e. activities 1, 3, 5,
10, 12, 13 and 14) belong to the critical path and need the
attention of the project manager.

Thank you

All The best