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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

CHAPTER 6
PROJECT MANAGEMENT
THEORY & CALCULATION

Fig 2.1 : Picture description here

LECTURE BY:
FAIQAH BINTI MAWARDI
Faiqah Mawardi
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 FACULTY OF BUSINESS MANAGEMENT
Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Final Exam:

Every Semester

Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

What is project?

Project:
A project is one-shot set of related activities
with a definite beginning and ending point
directed towards a unique goal.

Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT
What is Project
Project Management: Management?
Project management is the planning,
scheduling and controlling of resources such
as equipment, workforce, and materials so
that they meet the time, costs and technical
constraint of the project.

Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT
Stages of Project
Project Planning Management
• Involves all activities that result in developing a course of action about a specific
project.
• i) Project Definition ii) Forecast and budget
• Tools: (Time and cost estimates, performance and material available, PERT/CPM
network)
Project Scheduling
• Establishes the times for each activity in a project. It includes tying the resources
(people, money, and supplies) to specific activities and related activities to each
other. The progress of the project needs to be updated and revised on a regular basis
to ensure that the project proceeds as planned.
• Tools: (Gantt Chart, PERT/CPM and cash flow schedules)
Project Controlling
Fig 2.1 : Picture description here
• Involves monitoring resources, costs , quality, and budgets to compare the actual and
planned progress of each activity. The manager may be able to identify those
activities that are behind schedule and that ultimately may delay the overall project
completion date.
• Tools : (PERT network, reports describing budgets, delayed activities and slack
activities and quality of completed work)
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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT
Project
Characteristics

1.Unique: As stated earlier, a project is a unique, single quantity product.

2.Activities are well defined: Each project consists of many activities that must
be performed in some sequence. Some tasks are independent, while some
may be done concurrently. The completion of the final activities depicts the
completion of the entire project.
3.Difficult to estimate completion time: Each project is a new project -
therefore it is difficult to estimate the length of time the project will take to
complete.
4. Project manager: the main responsibility of the project manager is to
integrate the efforts of people from various functional areas to achieve
specific project goals. Fig 2.1 : Picture description here
5. Project Team: People form different functional areas will be put in teams
known as project teams. A project manager will lead the project team.

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Objectives of
Project
Management
To ensure that the project is completed on time.

To manage the project cost so that the cost is

minimised and within the expected budget.

To meet the predetermined quality standard.

Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Project
Management
Techniques

 Gantt chart
 Critical Path Method
(CPM)
 Program Evaluation and
Review Technique
Fig 2.1 : Picture description here
(PERT)

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publishing as Prentice Hall Faiqah Mawardi
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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT
A simple Gantt
Chart

Time
J F M A M J J A S

Design
Prototype
Test
Revise
Production Fig 2.1 : Picture description here

© 2011 Pearson Education, Inc.

publishing as Prentice Hall Faiqah Mawardi
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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

PERT and CPM

 Network techniques
 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
Fig 2.1 : Picture description here

 Each uses a different estimate of activity times

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Critical Path
Analysis
• Definition: Critical path is the through the network
consisting of sequential activities those total activity
times are the longest from the start of the project to
its end.
• Activities on the critical path must be according to
the schedule. If any of the critical activities were
delayed, the entire project would be affected (cannot
complete on time). Fig 2.1 : Picture description here

• Critical activities: Abjad (A,B,C,D ......)

• Critical path: number (1,2,3,4......)
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Types of Float
Types of Float:
1) Total Float (TF) : Total Float is the spare time available if an activity starts
at the earliest possible time when the latest finishing time is used.
TF = LET (H) – EET (T) - D
2) Free Float (FF) : Free Float is the spare time available if the activities
starts at the earliest possible time when the earliest finishing time is
used.
FF = EET (H) – EET (T) - D
3) Independent Float (IF) : Independent Float is the spare time available if
the activities start at the latest time when the earliest finishing time is
used. Fig 2.1 : Picture description here
EET EET = Earliest Event Time
IF = EET (H) – LET (T) - D 6 13 LET = Latest Event Time
6 LET 16 H = Head
T = Tail
2 5 D = Duration
H, 7
T D H Faiqah Mawardi
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March 2012,
Part A,
Question 2 Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Question MAC 2012, Part A,

Question 4
ADZ Sdn. Bhd. is trying to set up a critical path network for controlling its
research project of developing new product. The project has ten activities. Its
precedence relationships and activity duration as shown below:
ACTIVITY PRECEEDING ACTIVITY DURATION (WEEKS)
A - 6
B A 5
C A 7
D A 7
E B 5
F C,E 6
Fig 2.1 : Picture description here
G B 7
H B,D 8
I B,D 7
J F,G,H 5

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Question MAC 2012, Part A,

Question 4
a) Construct the PERT network for this project.
b) Calculate the Earliest Event Time (EET) and
Latest Event Time (LET) for each event.
c) Identify the critical activities for the network.
d) Compute the following:
i) Free Float for activity D.
ii) Total Float for activity G. Fig 2.1 : Picture description here

iii) Independent Float for activity H.

e) Calculate the project completion time if activity F
were revised to 8 weeks.
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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer MAC 2012, Part A,

Question 4

Step 1: Construct the PERT network ACTIVITY PRECEEDING DURATION

and label the duration. ACTIVITY (WEEKS)
A - 6

B A 5

C A 7
B,5
D A 7

A,6 C,7 E B 5
1 2
F C,E 6

D,7 G
Fig 2.1 : Picture descriptionBhere 7

H B,D 8
After this need to draw for preceeding activity (B,D) to
Activity H and I. I B,D 7
Since it cannot link, so you need to change the place of the
activity which is by putting activity B next to activity D. J F,G,H 5
How? >> Change the place of activity B with C.
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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer MAC 2012, Part A,

Question 4

Step 1: Construct the PERT network ACTIVITY PRECEEDING DURATION

and label the duration. A
ACTIVITY
-
(WEEKS)
6

B A 5
4
C A 7
C,7 F,6
E,5 D A 7

A,6 B,5 G,7 E B 5

1 2 3 6
F C,E 6
J,5
d1,0 H,8 G B 7
D,7 7 : Picture description
Fig 2.1 here

H B,D 8
I,7
5 I B,D 7

J F,G,H 5

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer MAC 2012, Part A,

Question 4
Step 2: Calculate the Earliest Event Time (EET) and Latest Event
Time (LET) for each event.
From right to the left side
From left to the right side
Need to choose from 3 arrows:
Need to choose from 2
arrows:
16 1. E : 16 – 5 = 11 weeks
2. G : 22 – 7 = 15 weeks
1. C : 6 + 7 = 13 weeks 16
2. E : 11 + 5 = 16 weeks
4 3. d1 : 14 – 0 = 14 weeks

From left to the right side

C,7 F,6 Need to choose from 3 arrows:
0 E,5 1. F: 16 + 6 = 22 weeks
6 11 22
2. G : 11 + 7 = 18 weeks
0 6 11 22 3. H : 13 + 8 = 21 weeks
A,6 B,5 G,7
1 2 3 6 27
EET:
J,5 here 27 Project
d1,0 H,8
Fig 2.1 : Picture description
From left to the right side: D,7 7 Completion
• Plus (+) the duration 13 Time
• Select the highest time 5 I,7
14
LET: From right to the left side
From right to the left side: From left to the right side Need to choose from 2
Need to choose from 2 arrows: arrows:
• Minus (-) the duration
1. D : 6 + 7 = 13 weeks 1. H: 22 – 8 = 14 weeks
• Select the lowest time 2. d1 : 11 + 0 = 11 weeks 2. I : Faiqah
27 – 7 =Mawardi
20 weeks
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Answer MAC 2012, Part A,

Question 4
Answer for a & b:

16
16
4

C,7 F,6
0 6 11 E,5 22
0 6 11 22
A,6 B,5 G,7
1 2 3 6 27
J,5 27
H,8
D,7 7
Fig 2.1 : Picture description here

13 I,7
5
14

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer MAC 2012, Part A,

Question 4
c) Identify the critical activities for the network
16
Look the EET and LET 16
that have the same 4
number of time
C,7 F,6
0 6 11 E,5 22
0 6 11 22
A,6 B,5 G,7
1 2 3 6 27
J,5 27
H,8
D,7 7

Remember this: Fig 2.1 : Picture description here

13 I,7
Critical activities: Abjad (A,B,C,D ....) 5
14
Critical path: number (1,2,3,4......)
For critical activities, time
Answer for c): cannot be delayed. If delayed,
project may not complete on
Critical Activities: A, B, E, F, J time (project delayed)
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Answer
d) Compute the following:

i) Free Float for activity D.

FF for D = EET (H) – EET (T) - D 6
EET
13
LET
= 13 – 6 – 7 Activity 6 14
=0 D 2 5
D, 7
T D H
ii) Total Float for activity G. 11
EET
22
LET
TF for G = LET (H) – EET (T) – D Activity 11 22
= 22 – 11 - 7 G 3 6
G, 7
= 4 weeks T D H
Fig 2.1 : Picture description here

EET
13 22
iii) Independent Float for activity H. 14 LET 22
IF for H = EET (H) – LET (T) – D Activity
H 5 6
= 22 – 14 - 8 H, 8
T H
=0 D
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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer MAC 2012, Part A,

Question 4
e) Calculate the project completion time if activity F were
revised to 8 weeks.
EET
TF for F = LET (H) – EET (T) – D 16 22
16 LET 22
= 22 – 16 - 6
= 0 (allowed delayed) 4
F, 6
6
Revised = 8 weeks T H
D
Duration = 6 weeks
Project delayed = Revised – Duration – Allowed Delayed
=8 weeks – 6 weeks -0
Fig 2.1 : Picture description here

= 2 weeks
** If activity F were revised to 8 weeks instead of 6 weeks,
the project cannot complete on time and would be
delayed by 2 weeks.
Faiqah Mawardi
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 FACULTY OF BUSINESS MANAGEMENT
Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

October 2006,
Part A,
Question 3 Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Question OCT 2006, Part A,

Question 3
Answer the questions, based on the following table.
ACTIVITY IMMEDIATE TIME (WEEKS)
PREDECESSOR (S)
A - 3
B - 5
C B 2
D A,B 7
E C 2
F D,E 4 description here
Fig 2.1 : Picture

G C 3
H D,E,G 1
I F,H 3

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Question OCT 2006, Part A,

Question 3

a) Draw the appropriate PERT/CPM diagram.

b) Calculate the earliest and latest start for each
event.
c) Find the earliest project completion time.
d) Identify the critical activities.
e) Find the total Float for activity G and free Float
for activity C. Fig 2.1 : Picture description here

f) What would happen to the project completion

time if activity C was delayed by 5 weeks?

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer OCT 2006, Part A,

Question 3
f) What would happen to the project completion time if
activity C was delayed by 5 weeks? EET
5 7
5 LET 10
TF for C = LET (H) – EET (T) – D
= 10 – 5 - 2 2
C, 2
4

= 3 weeks(allowed delayed) T D H

Project delayed = Forecasted delayed – Allowed delayed

= 5 weeks – 3 weeks If the question not
Fig 2.1 : Picture description here
= 2 weeks used “revised”. You
may use this formula

** If activity C was delayed by 5 weeks, the project cannot

complete on time and would be delayed by 2 weeks.
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 FACULTY OF BUSINESS MANAGEMENT
Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

October 2008,
Part A,
Question 2 Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Question OCT 2008, Part A,

Question 2
Johor Construction Sdn. Bhd. has been appointed as the independent
contractor to build a mosque. As the project manager, Ir Ahmad has been
asked by its employer to start the project on the 1st of January 2008. All the
major activities for this project and the estimated duration time have been
identified as follow:
ACTIVITY DURATION (MONTHS) PRECEDING ACTIVITY
A 24 -
B 16 -
C 12 -
D 8 C
E 20 A,B,D
Fig 2.1 : Picture description here
F 24 A
G 6 C,E
H 16 G,C
I 24 F

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Question OCT 2008, Part A,

Question 2
a) Construct the PERT network for the construction
of the mosque.
b) Calculate the Earliest Event Time (EET) and
Latest Event Time (LET) for each event.
c) Determine the Critical Path and Critical Activities
for the network.
d) Compute the following:
i) Free Float for activity E. Fig 2.1 : Picture description here

ii) Independent Float for activity D.

e) What would happen if activity G were revised to
13 months instead of 6 months?
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Answer OCT 2008, Part A,

Question 2
a & b) 24 48 Some questions not just
24 48 72 have 1 dummy. There
F,24 I,24 72 may have 2 or more
3 7
A,24 dummy (d1, d2, d3.....)`
0 24 d1,0 44 8
0 30 50
B,16 E,20 G,6 H,16
1 4 5 6 ACTIVITY DURATION PRECEDING
(MONTHS) ACTIVITY
d2,0 50
D,8 A 24 -
C,12 56
d3,0 B 16 -
2 12
C 12 -
22
D 8 C
c) Critical Path : 1,3,7,8 Fig 2.1 : Picture description here
E 20 A,B,D

Critical Activities: A,F,I F 24 A

G 6 C,E
Remember this:
Critical activities: Abjad (A,B,C,D ....) H 16 G,C
Critical path: number (1,2,3,4......) I 24 F
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Answer OCT 2008, Part A,

Question 2

d) Compute the following:

i) Free Float for activity E.

EET
FF for E = EET (H) – EET (T) - D 24
LET
44
30 50
= 44 – 24 - 20 Activity
E 4 5
=0 E, 20
T D H

iii) Independent Float for activity D. Fig 2.1 : Picture description here
IF for D = EET (H) – LET (T) – D EET
12 24
22 LET 30
= 24 – 22 - 8 Activity
D 2 4
= - 6 months D, 8
T H
=0 D

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Answer OCT 2008, Part A,

Question 2
e) What would happen if activity G were revised to 13
months instead of 6 months?
EET
TF for G = LET (H) – EET (T) – D 44 50
= 56 – 44 - 6 50 LET 56
= 6 months (allowed delayed) 5 6
G, 6
Revised = 13 months
T D H
Duration = 6 months
Project delayed = Revised – Duration – Allowed Delayed
=13 months – 6 months – 6 months
Fig 2.1 : Picture description here
= 1 month
** If activity G were revised to 13 months instead of 6
months, the project will be delayed by 1 month.
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 FACULTY OF BUSINESS MANAGEMENT
Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

Assignment
• MARCH 2013, PART A, QUESTION 2

Fig 2.1 : Picture description here

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Chapter 06 : project Management MGT345: OPERATIONS MANAGEMENT

THE 6
EET
13
6 LET 16
Fig 2.1 : Picture description here

END...
2 5
H, 7
T D H

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FPP/Sabah