Chapter 3

Project
Management
 What is Project Management?
• Management is generally perceived as concerned with
…………………………………………………………………………………………………
………………………………………………………………..
• Project Management is concerned with …………….of an activity for a
relatively short period of time after which management effort ends.
• It is nothing more (or less) than knowing what the status of a project is:
• when it should be done,
• how much (and if) it has slipped from the original schedule,
• what the bottlenecks are, and
• what you might drop to save some time.

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 Project Management
Activities
Planning Scheduling
● Objectives ● Project

● Resources activities
● Work break- ● Start &

down end times

schedule ● Network

● Organizatio

n
Controlling
● Monitor, compare,

revise, action
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 Project Management Models:
History
 One of the earliest techniques was the
……………………. (Used by US Navy).
 This type of chart shows the start and finish times of
one or more activities, as shown below:

Time Period
Activity
J F M A M J J
Design
Build
Test
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 Project Management
Techniques/Models: Today

 ………………………….
(CPM)
 ……………………………
…………………………..
(PERT)
 PERT/Cost

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 PERT and CPM
 …………………………………………………
 Developed in 1950’s
 CPM by DuPont for chemical plants (1957)
 PERT by Booz, Allen & Hamilton with the U.S.
Navy, for Polaris missile (1958)
 Consider precedence relationships and
interdependencies
 Each uses a different estimate of activity times

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 Framework of PERT and
CPM
There are six steps common to both PERT and CPM.
1. Define the project and all of its significant activities or
tasks.
2. Develop the ………………………… among the activities.
Decide which activities must precede others.
3. …………………………….. connecting all of the activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network; this is
called the …………………………………...
…………………………………..
6. Use the network to help plan, schedule, monitor, and
control the project.

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 Framework of PERT and CPM
(continued)

 The critical path is important because

……………………………………………………………

………………………………………………………...
………………………………………………………..

 PERT is ………………, whereas CPM is

…………….

 Almost any large project can be subdivided

into a series of smaller activities or tasks that

can be analyzed with PERT. 8

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 Questions answered by
PERT
1. ………………. will the entire project be completed?
2. What are the …………………… (tasks in the project, that will delay the
entire project if they are late?
3. Which are the non-critical activities,
activities that can run late without delaying
the entire project’s completion?
4. What is the ……………………………… that the project will be completed
by a specific date? At any particular date, is the project
on/behind/ahead of schedule?
5. On any given date, is the ……………………………. equal to/less
than/greater than the budgeted amount?
6. Are there enough ………………………… to finish the project on time?
7. If the project is to be finished in a shorter amount of time, what is the
best way to accomplish this at the least cost?

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 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
(a) A B C B, which comes
before C A B C
A A
A and B must both
(b) C be completed
before C can start C
B B
B
B and C cannot
(c) A begin until A is B
completed A
C C
Figure 3.5 10
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 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
C and D cannot
A C begin until A A C
(d) and B have
both been
B D completed B D

C cannot begin
until both A and B
A C are completed; D A C
(e) cannot begin until Dummy activity
B is completed. A
B D dummy activity is
introduced in AOA B D
Figure 3.5 11
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 A Comparison of AON and
AOA Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

B and C cannot
begin until A is
completed. D
A B D cannot begin A B D
until both B and
(f) C are completed. Dummy
A dummy C
C activity
activity is again
introduced in
AOA.

Figure 3.5
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 AON Example: Milwaukee General
Hospital’s Activities and Predecessors

Activity Description Immediate

Predecessors
A Build internal components -
B Modify roof and floor -
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G

Table 3.1 13
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 AON Network for
Milwaukee Paper

Activity A
A (Build Internal Components)

Start Figure 3.6

Activity B
Start B (Modify Roof and Floor)
Activity

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 AON Network for
Milwaukee Paper
Activity A Precedes Activity C

A C

Start

B D

Activities A and B
Precede Activity D Figure 3.7 15
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 AON Network for
Milwaukee Paper

F
A C

E
Start H

B D G

Arrows Show Precedence

Relationships 16
MANAGEMENT SCIENCE/PROJECT Figure 3.8
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 AOA Network for
Milwaukee Paper
C
2 4
(Construct
Stack)
F
Co (In
nt al

nt sta
n e e rn
s)

(Build Burner)
om ld A

ro ll
po Int

ls
)
C ui

H
Dummy 7
(B

E
1 6
Activity (Inspect/
Test)
Ro (M B G
of od l
/ F i fy t al n
s o
lo
or I( n luti e)
D o l ic
) 3 5 P ev
D
(Pour
Concrete/
Install Frame) Figure 3.9 17
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 Determining the Project Schedule

Perform a Critical Path Analysis

 ………………………………………………
………………………………………………..
 The critical path is the shortest time in
which the project can be completed
 ………………………………………………
……………………………………………….
 ………………………………………………
……………………………………………….

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 Determining the Project Schedule

Perform a Critical Path Analysis

Activity Description Time (weeks)
A Build internal components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
Total Time (weeks) 25
Table 3.2
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 Determining the Project Schedule

Perform a Critical Path Analysis

………………………. (ES) = earliest
Activity Description Time
time at which an activity can start, (weeks)
A Build internal
assuming components
all predecessors have been 2
B Modifycompleted
roof and floor 3
……………………….
C (EF) =collection
Construct earliest time at which an 2
stack
D activity can
Pour concrete andbe finished
install frame 4
E ……………….. (LS)burner
Build high-temperature = latest time4 at
F Install which an activity
pollution control can
systemstart so as to
3 not
delay the completion time of the entire
G Install project
air pollution device 5
H Inspect and test
………………… (LF) = latest time2 by
Total Time
which(weeks)
an activity has to be finished 25 so
as to not delay the completion time of
Table 3.2
the entire project 20
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 Determining the Project Schedule

Perform a Critical Path Analysis

Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start

Latest LS LF Latest
Start 2 Finish

Figure 3.10 Activity Duration 21

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 Forward Pass
Begin at starting event and work forward
Earliest Start Time Rule:
 If an activity has only one immediate
predecessor, its ES equals the EF of the
predecessor
 If an activity has multiple immediate
predecessors, its ES is the maximum of
all the EF values of its predecessors

ES = Max (EF of all immediate predecessors)

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 Forward Pass
Begin at starting event and work forward
Earliest Finish Time Rule:
 The earliest finish time (EF) of an activity
is the sum of its earliest start time (ES)
and its activity time
EF = ES + Activity time

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 ES/EF Network for
Milwaukee Paper

ES EF = ES + Activity time
Start
0 0

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 ES/EF Network for
Milwaukee Paper
A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15

0 4 2

B D G
0 3 3 7 8 13

3 4 5
Figure 3.11
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 Backward Pass
Begin with the last event and work backwards

Latest Finish Time Rule:

 If an activity is an immediate predecessor

for just a single activity, its LF equals the
LS of the activity that immediately follows
it
 If an activity is an immediate predecessor
to more than one activity, its LF is the
minimum of all LS values of all activities
that immediately follow it
LF = Min (LS of all immediate following activities)
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 Backward Pass
Begin with the last event and work backwards

Latest Start Time Rule:

 The latest start time (LS) of an activity is

the difference of its latest finish time (LF)
and its activity time

LS = LF – Activity time

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 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15
13 15
0 4 2

B LS = LF
D – Activity time
G
0 3 3 7 8 13

3 4 5 LF = EF
of Project
Figure 3.12
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 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

10 13
2 2 3

Start E H
0 0
LF =4 Min (LS
8 of 13 15
following activity) 13 15
0 4 2

B D G
0 3 3 7 8 13

3 4 5

Figure 3.12
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 LS/LF Times for Milwaukee Paper
LF = Min(4, 10)

A C F
0 2 2 4 4 7

2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
8 13
3 4 5

Figure 3.12
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 Project Network for Milwaukee General
Hospital (Includes Critical Path)

A C FF
0 H2 2 H4 4 H7
0 A2 2 C4 1 13
2 2 3
E 0
Slack Slack 4 H 8 Slack=6 13H 15
0 H 0 =0
Star F H
=0 4 8 15
0 t 0 4 13
0 2
BB DD Slack=0 G
Sta 0 H3 3 H7 8 G
rt H 13
1 4 4 8 8 13 Slack=0
3 4 5
Slack=1 Slack=1 Slack=0

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 Computing Slack Time
After computing the ES, EF, LS, and LF times
for all activities, compute the slack or free
time for each activity

 Slack is the
……………………………………………………
……………………………………………………
…………………………………………………….

………………………………………………………..

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 Computing Slack Time

Earliest Earliest Latest Latest On

Start Finish Start Finish Slack Critical
Activity ES EF LS LF LS – ES Path

A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes

Table 3.3
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 Critical Path And Slack Times
For Milwaukee Paper
Figure 3.19
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start Slack = 0 Slack = 0 E Slack = 6 H

0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5

Slack = 1 Slack = 1 Slack = 0

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 Advantages of PERT/CPM

1. Especially useful when ……………………………..

…………………………………………………………….
1. Straightforward concept and not mathematically
complex
2. ………………………………….. help to perceive
relationships among project activities
3. ………………….. and ……………… analyses help
pinpoint activities that need to be ………………….

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 Advantages of PERT/CPM

5. Project documentation and graphics point out who

is responsible for various activities
6. Applicable to a wide variety of projects
7. Useful in monitoring not only schedules but costs
as well

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 Limitations of PERT/CPM
1. Project activities have to be …………………………,
…………………………………. in their relationships
2. Precedence relationships must be …………… and
…………………………. together
3. Time estimates tend to be ……………… and are
subject to …………………………. by managers
4. There is an inherent danger of too much emphasis
being placed on the longest, or critical, path

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