ASSIGNMENT PGPM-21

NICMAR SCHOOL OF
DISTANCE
EDUCATION (SODE),
PUNE
Project Management Systems & Techniques

By
Abdul Hameed Bathusha K S
Reg No: 2150331503562173

Assignment Topic
A New International cricket facility is to be constructed outside a mega city over a piece of land.
Facility to include:
1. Capacity of Spectators: 80,000
2. day/Night play facility
3. TV Camera platform in six directions
4. Safety of players from spectators
5. Pavilion for VIPs to sit: 300 seat
6. Parking (adequate space for all above)
Time available is 16 months including monsoon. Cost of construction need to be recovered in 5 years.
Average cost of Ticket is 100/-. Approximate 4 matches per year. Submit the Project Report:
1. Identification of Project
2. Stages in development of Project
3. Work break down structure to undertake the project
4. Milestone and CPM chart for corporate control
5. Cost of project.

PROJECT IDENTIFICATION
Feasibility Studies: For any project, Feasibility study is the most important and compulsory
action required in terms of the project identification, as the name implies, a feasibility study is
used to determine the viability of an idea. The objective of such a study is to ensure a project is
legally and technically feasible and economically justifiable. It tells us whether a project is
worth the investment.

Feasibility studies are useful to businesses in many ways. Some of the reasons organizations
conduct feasibility studies are as follows:

Not every project is doable.

Not every project should be taken up. This will engage otherwise useful resources and
block their use on other tasks.

Not every project makes effective use of the resources of an organization.

What is a Feasibility Study?

In simple terms, a feasibility study involves taking a judgment call on whether a project is
doable. The two criteria to judge feasibility are cost required and value to be delivered. A welldesigned study should offer a historical background of the business or project, a description of
the product or service, accounting statements, details of operations and management,
marketing research and policies, financial data, legal requirements and tax obligations.
Generally, such studies precede technical development and project implementation.

Five Areas of Project Feasibility:

Technical Feasibility - assessment is centred on the technical resources available to the
organization. It helps organizations assess if the technical resources meet capacity and whether
the technical team is capable of converting the ideas into working systems. Technical
feasibility also involves evaluation of the hardware and the software requirements of the
proposed system.
Economic Feasibility - helps organizations assess the viability, cost, and benefits associated
with projects before financial resources are allocated. It also serves as an independent project
assessment, and enhances project credibility, as a result. It helps decision-makers determine the
positive economic benefits to the organization that the proposed system will provide, and helps
quantify them. This assessment typically involves a cost/ benefits analysis of the project.
Legal Feasibility - investigates if the proposed system conflicts with legal requirements like
data protection acts or social media laws.
Operational Feasibility - this involves undertaking a study to analyse and determine whether
your business needs can be fulfilled by using the proposed solution. It also measures how well
the proposed system solves problems and takes advantage of the opportunities identified
during scope definition. Operational feasibility studies also analyse how the project plan

satisfies the requirements identified in the requirements analysis phase of system development.
To ensure success, desired operational outcomes must inform and guide design and
development. These include such design-dependent parameters such as reliability,
maintainability, supportability, usability, disposability, sustainability, affordability, and others.
Scheduling Feasibility is the most important for project success. A project will fail if not
completed on time. In scheduling feasibility, we estimate how much time the system will take
to complete, and with our technical skills we need to estimate the period to complete the
project using various methods of estimation.

Benefits of Conducting a Feasibility Study

Conducting a feasibility study is always beneficial to the project as it gives you and other
stakeholders a clear picture of your idea. Below are the key benefits of conducting a feasibility
study:

Gives project teams more focus and provides an alternative outline.

Narrows the business alternatives.

Identifies a valid reason to undertake the project.

Enhances the success rate by evaluating multiple parameters.

Aids decision-making on the project.

Apart from the approaches to feasibility study listed above, some projects also require for other
constraints to be analysed

Internal Project Constraints: Technical, Technology, Budget, Resource, etc.

Internal Corporate Constraints: Financial, Marketing, Export, etc.

External Constraints: Logistics, Environment, Laws and Regulations, etc

Project Definition: the Project definition includes the most important scope & objective of the
project, it also clears the misconceptions in the project directives, it focuses on the acceptance
criteria for the successful completion of the project.
Project Report: the project report includes all details related to the project in terms of the
stakeholders and their requirement, project progress, cost implications, any variations, scope

changes and Techno economic Feasibility report obtained from the above feasibility
evaluation etc.

PROJECT DEVELOPMENT PROCESS

Project Management Organization: The project management organization is the finalization
of the responsible organization to handle the work of the project, who has the necessary
experience and means to complete the project with respect to the requirement.
Project Planning & Control: The construction planning process is stimulated through a study
of project documents. These documents include- but are not limited to the available technical
and commercial studies and investigations design and drawings, estimate of quantities,
construction method statements, project planning data, contract documents, site conditions,
working regulations, market survey, local resources, project environment and the clients
organization. The planning process take in to the account the strength and weakness of the
organization as well as the anticipated opportunities and risks.
(i) Planning is the creative and demanding mental activity of working out what has to be done,
how , by when, by whom and with what doing the job in the mind . plans are not just
pieces of paper . Plans represent the result of careful though, comprehensive discussions,
decisions and actions, and commitments made between people and contractual parties.
(ii) Planning techniques form the planners toolbox. They assist in the analysis of the plan,
organizing the information, and have a crucial effect on the way in which the plan is
communicated to others. In terms of activities, time quantities, resources and perhaps costs and
values, now the point is how and by whom this planning and planning techniques use to
convert all these theories of planning and planning techniques in to a practical shape. Planners
cannot plan without managers. It is the managers task to plan: that is to decide on strategies
and tactics, to break down the work to be done into tasks and sub-tasks and to assign the
responsibility for completing these tasks to individuals or organization. So in short, planners
and implementers should go side by side for any project and act as a team.
PROJECT WORK BREAKDOWN
Work Breakdown Levels: Project work breakdown is the division of the project into the small
Identifiable activities or events with some milestones also. These activities are also called as
levels, which can be classified very well. For instance the activities of the cricket stadium are:
Pre-Construction Phase

- Selection of the construction site

- Preliminary design
- Final design & preparation of working drawings
- Selection of the supplier vendors & supply of equipments & materials
Construction Phase
- Demarcation of the field area.
- Construction of foundation for the stands and other sitting areas.
- Construction of boundary walls.
- Construction of steps with proper risers.
- Construction of roof.
- Provisions of services application of wall, floor and ceiling finish.
- Completion of electrical and mechanical works.
- External works: drainage etc.
- Parking facility etc.
- Structure for Lights.
- Road work.
Commissioning & Handing Over.
- Testing & Commissioning of the Electrical Equipment.
- Testing & commissioning of the HVAC system.
- Testing & commissioning of the other services such as Fire Fighting, security system,
fire detection system etc.
- Final Handing over of the facility to the client.
Work Breakdown Methodology: The Work Breakdown Structure method is a formal and
systematic way of decomposing the project effort that was developed originally in the early
1960s by the U.S. Department of Defence. It has since become accepted as an essential
practice for the management of large projects and is a key requirement for compliance with the
Cost/Schedule Performance Management Standard (C/SPMS)
The Work Breakdown Structure (WBS) method creates a multi-level decomposition of the
project effort that is used for identifying and authorizing work, monitoring performance, and
reporting on all project activities.
The top level refers to the entire project. The next two levels, sometimes referred to as the
Contract Work Breakdown Structure (CWBS), break the project into its major elements
(subprojects) and deliverables. The full Work Breakdown Structure, sometimes referred to as
the Detailed Work Breakdown Structure, decomposes each component of the project into

activities and tasks at the level at which the work will be managed internally within the project
team.
Assessing Duration: the estimation of the duration requirement is with respect to the activity
level, where the time taken to complete the activity is evaluated with respect to the resources
availability and deployment.
There are various techniques adopted in estimating duration, PERT program evaluation and
review technique where the duration is estimated with respect to the three duration estimates of
optimistic duration, pessimistic duration & normal duration.
Another way includes the estimation of duration with respect to the availability of the
resources and productivity.
The buffer time required is also considered in each and every activity involved in the project.

Costing Activity: The discussion above considered only the direct cost of activity (or project).
Actually activity (project) cost consists of direct and indirect costs. These comprise of the
following components;
(a) Direct cost:
(i) Cost of material
(ii) Wages paid to labour
(iii) Expenditure on tools and equipment used on the activity.
(b) Indirect cost:
(i) Supervision charges
(ii) Administrative charges
(iii) Interest in capital
(iv) Revenue due to early completion of work and loss due to delay.
Indirect costs is worked out per day of the project execution or it is allocated on the basis of
certain stages of work packages e.g. foundation, sill level, lintel level in the case of building or
foundations substructure super structure, approaches etc.
Indirect cost increases as duration increase and direct cost goes on decreasing as duration
increases. Now in this case of cricket stadium given data,
(i) Capacity of spectators 80,000
(ii) Capacity of V.I.P stands 300
(iii) Time available 16 months (including monsoons)

(iv) Cost of construction to be recovered in 5 year

(v) Average cost of ticket is Rs.100
(vi)Approximate matches in a year is 4

So, total cost of the project:

Total earning of tickets for a single match if pack to full capacity =80,000 X 100
(Excluding any other earning received from sponsors or telecast right)=80, 00,000/Total earning in a year having 4 matches per year
=80, 00, 000 X 4 =3, 20, 00,000/Now as given earlier that the cost of construction to be recovered in 5 years,
So, total cost of the stadium =3, 20, 00,000 X 5 =16, 00, 00,000/So, a total cost of construction of stadium is nearly 16crores and total time taken to complete is
in 16 month duration.
CPM/NETWORK ANALYSIS
Critical Path Method: Network Elements

There are two methods followed CPM & PERT

The Framework for PERT and CPM

Essentially, there are six steps which are common to both the techniques. The procedure
is listed below:

The Key

Define the Project and all of its significant activities or tasks. The Project
(made up of several tasks) should have only a single start activity and a
single finish activity.
Develop the relationships among the activities. Decide which activities must
precede and which must follow others.
Draw the "Network" connecting all the activities. Each Activity should have
unique event numbers. Dummy arrows are used where required to avoid
giving the same numbering to two activities.
Assign time and/or cost estimates to each activity
Compute the longest time path through the network. This is called the
critical path.
Use the Network to help plan, schedule, and monitor & control the project.
Concept used by CPM/PERT is that a small set of activities, which make up

the longest path through the activity network control the entire project. If these
"critical" activities could be identified and assigned to responsible persons,
management resources could be optimally used by concentrating on the few activities
which determine the fate of the entire project.
Non-critical activities can be replanned, rescheduled and resources for them can be
reallocated flexibly, without affecting the whole project. Some activities are serially
linked. The second activity can begin only after the first activity is completed. In
certain cases, the activities are concurrent, because they are independent of each other
and can start simultaneously. This is especially the case in organisations which have
supervisory resources so that work can be delegated to various departments which will
be responsible for the activities and their completion as planned. When work is
delegated like this, the need for constant feedback and co-ordination becomes an
important senior management pre-occupation.
Drawing the CPM/PERT Network
Each activity (or sub-project) in a PERT/CPM Network is represented by an arrow
symbol. Each activity is preceded and succeeded by an event, represented as a circle
and numbered.

At Event 3, we have to evaluate two predecessor activities Activity 1-3 and Activity
2-3, both of which are predecessor activities. Activity 1-3 gives us an Earliest Start of
3 weeks at Event 3. However, Activity 2-3 also has to be completed before Event 3 can
begin. Along this route, the Earliest Start would be 4+0=4. The rule is to take the longer
(bigger) of the two Earliest Starts. So the Earliest Start at event 3 is 4.
Similarly, at Event 4, we find we have to evaluate two predecessor activities Activity
2-4 and Activity 3-4. Along Activity 2-4, the Earliest Start at Event 4 would be 10 wks,
but along Activity 3-4, the Earliest Start at Event 4 would be 11 wks. Since 11 wks is
larger than 10 wks, we select it as the Earliest Start at Event 4.
We have now found the longest path through the network. It will take 11 weeks along
activities 1-2, 2-3 and 3-4. This is the Critical Path.
The Backward Pass Latest Finish Time Rule
To make the Backward Pass, we begin at the sink or the final event and work
backwards to the first event.

At Event 3 there is only one activity, Activity 3-4 in the backward pass, and we find
that the value is 11-7 = 4 weeks. However at Event 2 we have to evaluate 2 activities,
2-3 and 2-4. We find that the backward pass through 2-4 gives us a value of 11-6 = 5
while 2-3 gives us 4-0 = 4. We take the smaller value of 4 on the backward pass.

Tabulation & Analysis of Activities

We are now ready to tabulate the various events and calculate the Earliest and Latest
Start and Finish times. We are also now ready to compute the SLACK or TOTAL
FLOAT, which is defined as the difference between the Latest Start and Earliest Start.
The

Earliest
Start is
the
value
in the

Event

Duration
(Weeks)

Earliest
Start

Earliest
Finish

Latest
Start

Latest
Finish

Total
Float

1-2

2-3

3-4

11

11

1-3

2-4

10

11

rectangle near the tail of each activity

The Earliest Finish is = Earliest Start + Duration

The Latest Finish is the value in the diamond at the head of each activity

The Latest Start is = Latest Finish Duration

There are two important types of Float or Slack. These are Total Float and Free Float.
TOTAL FLOAT is the spare time available when all preceding activities occur at
the earliest possible times and all succeeding activities occur at the latest possible
times.

Total Float = Latest Start Earliest Start

Activities with zero Total float are on the Critical Path

FREE FLOAT is the spare time available when all preceding activities occur at
the earliest possible times and all succeeding activities occur at the earliest possible
times. When an activity has zero Total float, free float will also be zero.
There are various other types of float (Independent, Early Free, Early Interfering, Late
Free, Late Interfering), and float can also be negative. We shall not go into these
situations at present for the sake of simplicity and be concerned only with Total Float
for the time being.

The Below CPM schedule is based on the scope of the work Cricket stadium.
Prepared in Primavera P6 R8.2

Conclusion:
The Project Management techniques and systems are applied in the real time project in the successful
execution of various project within the approved budget and time. And it is acceptable worldwide in
most complex project.
Reference:

Nicmar study Materials

Good sources of internet

Lt. Col. K.K.Chitkara Project Management Tata Mc. Graw,1998