unit vi

UNIT - VI

PROJECT MANAGEMENT

HRM In A Dynamic Environment

What is a project?

“A project is a series of activities or tasks or operations directed to accomplishment of a desired objective.”

“A project is a temporary endeavour undertaken to create a "unique" product or service.”


EARLY TECHNIQUES OF PROJECT MANAGEMENT

1. Gantt’s Bar Chart

2. Milestone Chart


NETWORK ANALYSIS

Network Analysis refers to a number of techniques for the planning and control of complex projects.

The two most frequently used forms of network planning are:

1. Programme Evaluation and Review Technique (PERT)

2. Critical Path Method (CPM)


WHAT IS A NETWORK?

A network is a graphical diagram consisting of certain configuration of “Arrows” () and “Nodes” () for showing the logical sequence of various tasks to be performed to achieve the project objective.


PERT / CPM TECHNIQUES

The initial step in PERT/CPM project scheduling process is the determination of all specific activities that comprise the project and their relationships.


EXAMPLE

Activity Description Duration (in weeks)

Immediate predecessor

A Obtain the budget approval

2 -

B Obtain the machine

5 A

C Hire the operator 1 A

D Install the machine 1 B

E Train the operator 6 C

F Produce the goods 1 D,E


TERMS USED IN A NETWORK

1. Activity: An effort that is required to complete a part of the project. It is represented by “”.

2. Node: It represents the beginning or completion of an activity. It is represented by “”


RULES OF NETWORK CONSTRUCTION

1. Each defined activity is represented by one and only one arrow in the network.

2. Before an activity can be undertaken, all activities preceding it must be completed.

3. The arrows depicting various activities are indicative of logical procedure only. The length and bearing of the arrows are of no significance.



4. The arrow direction indicates the general progression in time. Head events and Tail events.

5. When a number of activities terminate at one event, it indicates that no activity emanating from that event may start unless all activities terminating there have been completed.

6. Events are identified by numbers.

7. The activities are identified by the numbers of their starting and ending events or by alphabets.



8. A network should have only one initial and terminal node.

9. Merge Event

Burst Event

A

B

C

AB

C



10. Parallel activities between two events, without intervening events, are prohibited. When two or more parallel activities in a project have the same head and tail events, dummy activities are needed in constructing the network.

Dummy activities do not consume time or resources. An efficient network contains a minimum number of dummy activities required to portray the correct precedence relationships.

11. Looping is not permitted in a network.


Network analysis

3-2

It is a Planning project Management

It means construction of Variances

It is process Technique

It is outsourcing analysis


What is Network

3-2

Network analysis is a system which plans projects both large

and small by analyzing the project activities

Projects are broken down to individual tasks or activities,

which are arranged in logical sequential order

A network diagram is constructed which presents the

Relationship b/w all the activities are involved


Meaning and Definition

3-2

According to author – “Network analysis helps to designing, Planning, Coordinating and decision making in order to accomplish the project economically in the minimum available time with the limited available resources.”


Techniques of Network3-2

PERT

CPM

RAMS

DEP

COPAC

MAP

RPSM

LCS

MOSS

PCS

GERT

Project analysis


Key concepts of Network3-2

Activity

Event

Predecessor Event

Successor Event

Net work

Dummy activity

Construction of Project network



ACTIVITY

Activity means a work. A project consists of several activities. An activity takes time. It is represented by an arrow in a diagram of the network. Eg. An activity in house construction can be flooring.

Flooring



Event

It is the beginning or the End of an activity. Events are represented by circles in a project network diagram. The events in a network are called the nodes.

Punching

Start Stop



Predecessor Event

The event just before another event is called the predecessor event



Successor Event

The event just following another event is called the successor event

1 22

3

4

5

6



Successor Event

In this diagrams

Event 1 is predecessor for the event 2

Event 2 is successor to event 1

Event 2 is predecessor for the events 3,4 and 5

Event 4 is predecessor for the event 6

Event 6 is successor to events 3, 4 and 5



Network

A network is series of related activities and events which

result in an end product or service.

The activities shall follow a prescribed sequence.

It is construction area of network path



Dummy activity

A dummy activity is an activity which does not consume any

time.

sometimes it may be necessary to introduce a dummy

activity in order to provide connectivity to a network only.



Construction of a project network

A project network consists of a finite number of events and

activity by adhering to a certain sequential order.

It is a path way of network


Problem 13-2

Construct the network diagram for a project with the following activities

ActivityEvent-Event

Number of Activity

PredecessorActivity

1-21-31-42-53-64-65-6

ABCDEFG

---ABCD


3-2

Solution

1

2

3

4

A

B

C


3-2

Solution

1 2 5A D


3-2

Solution

1 3 6B E


3-2

Solution

2 5 6G G


3-2

Solution

5

3

4

6

G

E

F


Solution3-2

1

2

3

4

6

5A

D

B

C

E

F

G


CRITICAL PATH METHOD (CPM)3-2

The critical path method (CPM) aims at the determination of the time to complete a project and the important activities on which a manager shall focus attention.


Problem 13-2

The following details are available reading a project

ActivityEvent-Event

PredecessorActivity

ABCDEF

357

1054

Duration(Weeks)

-AABC

D,E

First let us construct the network diagram for the given project. We mark the time estimates along the arrows representing the activities


Solution3-2

1 22

3

4

5 6

Start Event End Event

A

B

C

D

E

F

3

5

7

10

5

4


Solution3-2

Path I

1 22 5 63A B D F

3 5 10 4

with a time of 3+5+10+4 =22 weeks


Solution3-2

Path II

1 22 5 64A C E F

3 7 5 4

with a time of 3+7+5+4 =19 weeks


Solution3-2

Compare the times for the two paths. Maximum of {22,19} = 22. we see that path I has maximum time of 22 weeks. The critical activities are A,B,C,D and F, finally the project completion time is 22 weeks.


Problem 23-2

Find out the completion time and the critical activities for the following project.

1

2

3

4

6

5

8 10

9

A

DG

KK

L

7JF

C

B E H

I

820 8

611

1610

725 10

5


Problem 33-2

Draw a network diagram and determine the critical path for the following project.

ActivityEvent-Event

1-21-31-42-53-63-74-75-86-87-98-9

56357

1042564

Duration(Weeks)


Solution3-2

We have the following network diagram for the project.

1

2

4

3 6 89

5

7

A

B

C

D

E

FG

H

I

J

K5

3

6

5

4

10

7 5

6

4

2


Problem 43-2

The following details are available reading a project

Activity PredecessorActivity

ABCDEFGHIJK

4736476

10342

Time estimates (Weeks)

---ABBCED

F,GH,I

Draw a project network diagram


PERT analysis3-2

INTRODUCTION

Programme Evaluation and Review Technique (PERT) is a tool that would help a project manager in project planning and control. It would enable him in continuously monitoring a project and taking corrective measures wherever necessary. This technique involves statistical methods.


PERT analysis3-2

The PERT analysis includes 3 Aspects

1. Pessimistic time estimate (tp)

2. Optimistic time estimate (to)

3. Most likely time estimate (tm)

Formulae te = to + 4tm + tp

6


Problem 13-2

ActivityPredecessor

ActivityOptimistic Time

estimate (to days)Most likely time

estimate (tm days)Pessimistic time

estimate (tp days)

A - 2 4 6

B A 3 6 9

C A 8 10 12

D B 9 12 15

E C 8 9 10

F D,E 16 21 26

G D,E 19 22 25

H F 2 5 8

I G 1 3 5


Solution 3-2

ActivityOptimistic Time

estimate (to days)

4 *Most likely time estimate (tm days)

Pessimistic timeestimate (tp

days)to + 4tm +tp

Time estimateTe = to+4tm+tp

6

A 2 16 6 24 4

B 3 24 9 36 6

C 8 40 12 60 10

D 9 48 15 72 12

E 8 36 10 54 9

F 16 84 26 126 21

G 19 88 25 132 22

H 2 20 8 30 5

I 1 12 5 18 3

From the three time estimates tp, tm, to calculate te for each activity.


Solution (contd..)3-2

1 2

3

4

5

6

7

8A

4

B

6

C10

D

12

E9

F21

G

22

H

5

3

I


Path I3-2

1 2 3 5 6 8

A

4

B

6

D

12

F

21

H

5

Time for the path : 4+6+12+21+5=48 days


Path II3-2

1 2 3 5 7 8

A

4

B

6

D

12

G

6

I

3



Path III3-2

1 2 4 5 6 8

A

4

C

10

E

9

F

21

H

5



Path IV3-2

1 2 4 5 7 8

A

4

C

10

E

9

G

6

I

3



Final3-2

Compare the times for the four paths.Maximum of { 48,31,49,32} = 49


Problem 23-2

Activity Optimistic Timeestimate (to days)

Most likely time estimate (tm days)

Pessimistic timeestimate (tp days)

1-2 3 6 9

1-6 2 5 8

2-3 6 12 18

2-4 4 5 6

3-5 8 11 14

4-5 3 7 11

6-7 3 9 15

5-8 2 4 6

7-8 8 16 18


Solution 3-2

Activity

Optimistic Timeestimate (to days)



days)to + 4tm +tp


6

1-2 3 24 9 36 6

1-6 2 20 8 30 5

2-3 6 48 18 72 12

2-4 4 20 6 30 5

3-5 8 44 14 66 11

4-5 3 28 11 42 7

6-7 3 36 15 54 9

5-8 2 16 6 24 4

7-8 8 64 18 90 15



Solution (contd..) 3-2

1

2

3

1

6

4

5

7

8

A

B

6

5

C

12

D

5

E

9

F

11

7

G

I

4

15

H


Problem 33-2

ActivityPredecessor

Activity

Optimistic Timeestimate (to

days)

Most likely time estimate (tm

days)


days)

A - 2 5 8

B A 2 3 4

C A 6 8 10

D A 2 4 6

E B 2 6 10

F C 6 7 8

G D,E,F 6 8 10


Solution 3-2

Activity

Optimistic Timeestimate (to days)



days)to + 4tm +tp


6

A 2 20 8 30 5

B 2 12 4 18 3

C 6 32 10 48 8

D 2 16 6 24 4

E 2 24 10 36 6

F 6 28 8 42 7

G 6 32 10 48 8



Solution (Network)3-2

1 2 5 6

4

3

A

5

D

4

G

8

B

3

C

8

E6

F7


Problem 43-2

ActivityPredecessor

Activity


days)


days)


days)

A - 12 14 22

B - 16 17 24

C A 14 15 16

D A 13 18 23

E B 16 18 20

F D,E 13 14 21

G C,F 6 8 10


Problem 53-2

ActivityPredecessor

Activity


days)


days)


days)

A - 2 4 6

B - 3 5 7

C A 5 6 13

D A 4 8 12

E B,C 5 6 13

F D,E 6 8 14


3-2

1.The process of shortening the time to complete a project is called crashing

and is usually achieved by putting into service additional labor or machines

to one activity or more activities.

2. Crashing involves more costs. A project manager would like to speed up a

project by spending as minimum extra cost as possible.

INTRODUCTION TO PROJECT CRASHING


3-2

Step:1

Find the critical path with the normal times and normal costs for the activities and identify the critical activities.

Step:2

Find out the crash cost per unit time for each activity in the network. This is calculated by means of the following formulae

STEPS IN PROJECT CRASHING

Activity Time

Normal Time

Crash Time

Crash Time

Normal Time

Activity Cost

Normal Time & Cost

Crash Time & Cost


3-2

Crash cost/Time period = Crash cost-Normal cost/Normal time-Crash time

Step:3

Select an activity for crashing

STEPS IN PROJECT CRASHING

unit vi

Business

network network analysis

dynamic environment

efficient network

project network diagram

network n activity

author network analysis

predecessor event hrm

project activities projects