Project Management Project Management Project Management Project Management

Project Management Project Management

Management of big projects that consist of large
number of activities number of activities
pose complex problems in planning,
scheduling and control
i ll h th ti iti h t b especially when the activities have to be
performed in a specified technological
sequence
CPM (Critical Path Method) and
PERT (Programme Evaluation & Review
T h i ) f l id f ffi i t j t Technique) are useful aids for efficient project
management
h diff i h i h h bl d h They differ in their approach to the problem and the
solution technique
Critical Path Method (CPM) Critical Path Method (CPM)
Assumes that activity times are
proportional to the amount of resources
allocated to them
By changing the level of resources the
activity times and project completion
ti b i d time can be varied
It does not incorporate uncertainty in job p y j
times and assumes prior experience with
similar projects from which the
relationship between resources and job relationship between resources and job
times are available
Critical Path Method (CPM)
CPM then evaluates the trade_off
Critical Path Method (CPM)
_
between project cost and project
completion time
It is mostly used in
construction/production projects
where there is prior experience in
handling similar projects handling similar projects
Programme Evaluation and Review
Technique (PERT) Technique (PERT)
PERT incorporates uncertainty in activity
times in its analysis
It determines the probability of p y
completion of various stages by specified
deadlines
It also calculates the expected time to
complete the project
Because of its ability to handle
uncertainties in job times, PERT is mostly
used in research and development used in research and development
projects
Analysis by CPM/PERT Analysis by CPM/PERT
Uses the network formulation to
t th j t ti iti d th i represent the project activities and their
ordering relations
Network Formulation: Network Formulation:
Arcs/Lines in the network represent
individual jobs in the project
Nodes represent specific points in time
which mark the completion of one or more
jobs in the project j p j
Nodes are generally called Events
Direction on the arc/line is used to /
represent the job sequence
C
1 2 3
A
B
5
1 2 3
Start Completion
4 3
It is assumed that any job directed
towards a node must be completed
b f j b di d f h before any job directed away from that
node can begin
Example 1 Example 1
Consider 7 jobs A, B, C, D, E, F & G with j , , , , ,
the following job sequence:
b d Job A precedes B & C
Jobs C & D precede E
Job B precedes D Job B precedes D
Jobs E & F precede G
Example 1 Network Formulation Example 1 Network Formulation
Job A is not preceded by any Job,
thus, it is the starting Job
Job A precedes B & C
2 4
Start
C
B
1
A
3
B
Example 1 Network Formulation
J b B d D
Example 1 Network Formulation
Job B precedes D
2 4
Start
C
B
D
1
A
3
B
D
Example 1 Network Formulation Example 1 Network Formulation
2 4 5
Start
C E
B
D
1
A
3
B
D
Jobs C and D precede E
(Since Jobs C & D precede a job, it is
expected that they will be
completed together)
Example 1 Network Formulation Example 1 Network Formulation
F
2 4 5 6
Start
Completion
C E
G
B
D
1
A
3
B
D
Jobs E and F precede G
Job F is not preceded by any Job,
thus, it can start right in the beginning
Example 2 Example 2
Consider a project with five jobs A, B, C, p j j , , ,
D & E with following job sequence:
Job A precedes C and D
Job B precedes D
Job C and D precede E
The completion time for A B C D & E are 3 The completion time for A, B, C, D & E are 3,
1, 4, 2, 5 days respectively.
1 2 4 5
Start
A C
E
5 4 3
3
Completion
5 4 3
B
1
D
2
0
Dummy job Dummy job
Dummy job
Doesnt really exist in the project
It i t id d bt i th j b
3
Dummy job Dummy job
It is necessary to avoid any doubt in the job sequence
Completion time is always zero
In this network event 3 represent the completion of job In this network event 3 represent the completion of job
B and dummy job
Since the dummy job is completed as soon as A is
l t d t 3 ti ll fl t th l ti f completed, event 3 essentially reflects the completion of
jobs A and B
Rules (About dummy job) Rules (About dummy job)
Each activity is represented by one and
l only one arc
Each activity must be identified by two distinct
end nodes end nodes
1 2
A
B
A
3
B
2 1
OR
B
1 3
A
2
B
Rules Rules
To maintain the correct precedence To maintain the correct precedence
relationships, the following questions must be
answered as each activity is added to the
network:
What activities must immediately precede
the current activity? y
What activities must follow the current
activity?
h i i i l What activities must occur concurrently
with the current activity?
Rules Rules
Consider the following segment of a project: Consider the following segment of a project:
Activity C starts immediately after A and B
have been completed have been completed.
Activity E starts after B only has been
completed.
A C
2
A
C
3
A C
2
E
B
2
B
E
Incorrect
Correct
In the Project Management Problem
If the completion time of all the activities
and their technological sequence are known
It is called a Simplified Problem
In such a problem we need to In such a problem, we need to
Determine the minimum time in which the Determine the minimum time in which the
project can be completed
Identify the critical jobs which can cause Identify the critical jobs which can cause
delay in the project completion
Simplified Project Management Problem
can be formulated as a LPP can be formulated as a LPP
1 2 4 5
A C
E
5 4 3
3
5 4 3
B
1
D
2 0
Let us consider Example 2
f f
3
Let t
i
be time of occurrence of event i,
where
i 1 2 5 i = 1, 2, ., 5
t
1
= Start of the project
t
5
t
1
= Time of completion of project and t
5
t
1
= Time of completion of project and
objective is to minimize this duration
LP Formulation LP Formulation
Minimize Z = t
5
- t
1
Subject to
t
2
- t
1
3
t - t 1 Constraints show that the Constraints show that the time time t
3
- t
1
1
t
3
t
2
0
t
4
t
2
4
Constraints show that the Constraints show that the time time
available for completing available for completing a job a job
should be should be time required to time required to
complete complete that job that job
t
4
t
3
2
t
5
t
4
5
t
i
0
complete complete that job that job
i
This can be solved by simplex method
Set t
1
= 0 and chose the values of t
i
as small as
possible to satisfy the constraints possible to satisfy the constraints
t
1
= 0, t
2
= 3, t
3
= 3, t
4
= 7, t
5
= 12;
Z = t Z = t
55
-- tt
1 1
= 12 days = 12 days
We can also identify critical jobs in the
process
We need to identify those constraints that
will be satisfied as equations in the optimal will be satisfied as equations in the optimal
solution, and the jobs corresponding to
those constraints are the critical jobs
Example
t
2
t
1
3 Satisfied as Equation; Critical itical - Job A
t t 1 Not satisfied t
3
t
1
1 Not satisfied
t
4
t
2
4 Satisfied as Equation; Critical itical - Job C
t
4
t
3
2 Not satisfied
t t 5 Satisfied as Equation; Critical itical - Job E t
5
t
4
5 Satisfied as Equation; Critical itical - Job E
Critical Path
Th th i th j t t k ti th The path in the project network connecting the
starting event and the ending event such that it
passes through the critical jobs is called a critical
path
Fi di iti l th i t k i
1 2 4 5
Finding a critical path in a network is
equivalent to finding the longest path longest path
For a large project, the number of constraints
may be too many for handling as LPP
A direct approach is available to solve such problems A direct approach is available to solve such problems
using Network Analysis
Solution by Network Analysis Solution by Network Analysis
Earliest time Earliest time of node j, U
j
, is the earliest time
t hi h t j at which event j can occur
Event j can occur as soon as all the jobs directed
towards node j are completed
1
A
towards node j are completed
e. g., j occurs as soon as A, B and C are completed
The earliest time of node j is given by
2 j
B
A
The earliest time of node j is given by
U
j
= Max (U
1
+ t
1j
; U
2
+ t
2j
; U
3
+ t
3j
)
t
1j
, t
2j
and t
3j
are completion times of jobs A, B and C
3
C
General form
U
j
= Max (U
i
+ t
ij
)
i represents all arcs (i, j)
Earliest time of last node gives the earliest
time of project completion
Example 2 Example 2
1 2 4 5
A C
E
5 4 3
3
5 4 3
B
1
D
2 0
U
j
can be calculated as follows
U
1
= 0
3
1
U
2
= U
1
+ t
12
= 3
U
3
= Max(U
1
+ t
13
; U
2
+ t
23
) = Max (1,3) = 3
U
4
= Max(U
2
+ t
24
; U
3
+ t
34
) = Max (7,5) = 7
U
5
= U
4
+ t
45
= 7+5 = 12
Hence, the minimum duration of project is 12
days days
However, in this process, critical jobs are not
identified
We need to calculate Latest time of an event
Latest time of node i, V
i
, is the latest time ,
i
,
at which event i can occur without delaying
the project beyond its earliest time
7
F
The project will not be delayed if the three
jobs F, G, & H are completed by V
7
, V
8
& V
9
8 i
G
F
H
This is possible if
V
i
= min [V
7
t
i7
; V
8
t
i8
; V
9
t
i9
]
9
H
General form
V
i
= min [V
j
t
ij
] V
i
= min [V
j
t
ij
]
Where j represent all nodes for which arc (i, j)
exists
Example 2
1 2 4 5
A C
E
5 4 3
3
5 4 3
B
1
D
2 0
To calculate the latest time of the events,
We set the latest time of the last event equal to its
3
We set the latest time of the last event equal to its
earliest time and work backwards
V
5
= U
5
= 12
V
4
= V
5
t
45
= 7
V
3
= V
4
t
34
= 5
V
2
= min [( V
4
t
24
) ; (V
3
t
23
)] = min [3,5] = 3
V
1
= min [( V
2
t
12
) ; (V
3
t
13
)] = min [0,4] = 0
Example 2
The EARLIEST and LATEST Times are represented p
in the network as follows:
(0 0) (3 3) (7 7) (12 12)
1 2 4 5
A C
E
5 4 3
D
(0, 0) (3, 3) (7, 7) (12, 12)
3
B
1
2 0
(3, 5)
The difference between the latest time and earliest
ti f t i ll d th l k ti f th t time of an event is called the slack time of that
event
Slack time denotes how much delay can be tolerated in Slack time denotes how much delay can be tolerated in
reaching that event without delaying the project
completion date
For the problem slack time of various events is For the problem, slack time of various events is
1 0
2 0
3 2
Those events that have zero
slack time are critical events
3 2
4 0
5 0
Critical Path is a path such that the jobs on this path have zero slack time
11 2 4 5
AA C C
EE
5 4 3
Summary of the Results of
Network Analysis Network Analysis
Event Earliest
time
Latest
time
Slack
time
Remark
1 0 0 0 Critical
2 3 3 0 Critical
3 3 5 2 Non-
critical
4 7 7 0 Critical
5 12 12 0 Critical
Project Schedule Project Schedule
i j
J
i j
t
ij
U
i
V
j
Earliest occurrence
time of i
Latest occurrence
time of j
Completion time of J
For J
Earliest starting time = U
i
Latest starting time = V
j
t
ij j j
Earliest finish time = U
i
+ t
ij
Latest finish time = V
j
(0 0)
(3, 3) (7, 7)
(12, 12)
1 2 4 5
A C
E
5 4 3
B
D
2
(0, 0)
( , ) ( , )
(12, 12)
3
B
1
2
(3, 5)
Project Schedule of Example 2 Project Schedule of Example 2
11 2 2 3 3 4 4 5 5 6 6 7 7 8 8
J ob Expected
duration
Earliest
start
Latest
Start
Earliest
finish
Latest
finish
Slack
time
Remarks
(days) U (6)-(2) (3)+(2) V (6)-(5) (days) U
i
(6) (2) (3)+(2) V
j
(6) (5)
A 3 0 0 3 3 0
Critical
B 1 0 4 1 5 4
Noncritical
B 1 0 4 1 5 4
Noncritical
C 4 3 3 7 7 0
Critical
D 2 3 5 5 7 2
Noncritical
E 5 7 7 12 12 0
Critical
Exercise Problem Exercise Problem
Consider a project consisting of nine jobs with
the following precedence relationship and time g p p
estimates
J ob Predecessor Time (days)
A - 15 A 15
B - 10
C A, B 10
D A, B 10
E B 5 E B 5
F D, E 5
G C, F 20
H D, E 10 H D, E 10
I G, H 15
Draw the project network
Determine the earliest completion time of the project Determine the earliest completion time of the project
Prepare the project schedule
Identify the critical path
Project network Project network
1 3
A
5
C
6
G
7
I
(0,0) (15,15)
(30,30) (50,50) (65,65)
1 3
15
5
10
6
20
7
15
B
10
D
10
H
10
0
F
5
2 4
E
5
10 10 10
(25 25)
(10,15)
(25,25)
Slack time
1 =0 ; 2 =5 ; 3 =0 ; 4 =0 ; 5 =0 ; 6 =0; 7 =0
Critical Path
1 = 0 ; 2 = 5 ; 3 = 0 ; 4 = 0 ; 5 = 0 ; 6 = 0; 7 = 0
1 3
A
15
4
D
10
5
F
5
6
G
20
7
I
15