Lecture 8

PROJECT
MANAGEMENT

EMGT101
The discipline of planning, organizing, securing
and managing resources to bring about the
successful completion of specific project
goals and objectives. At times, may be referred
to as program management, a group of
related and somehow interdependent
engineering projects.
Project is a temporary endeavor, having a
defined beginning and end undertaken to meet
unique goals and objectives,usually to bring about
beneficial change or added value.
• The primary challenge of project management is
to achieve all of the project goals and objectives
while honoring the preconceived project
constraints such as scope, time, and budget.

• The secondary challenge is to optimize the

allocation and integration of inputs necessary to
meet pre-defined objectives.
 Typical development phases of an engineering project:

1. Project initiation stage

2. Project planning and design stage
3. Project execution and construction stage
4. Project monitoring and controlling systems
5. Project completion
1. Project Initiation - Determine the
nature and scope of the project. The key
project controls needed:
 Understanding of the business
environment and
 Making sure that all necessary controls
are incorporated into the project.
2. Project Planning - After the initiation stage, the
project is planned to an appropriate level of
detail.The main purpose is
- To adequately plan time, cost and resources
- To estimate the work needed and
- To effectively manage risk during project execution.
Project planning generally consists of:

a. Determining how to plan (e.g. by level of detail or rolling wave);

b. Developing the scope statement;
c. Selecting the planning team;
d. Identifying deliverables and creating the work breakdown
structure;
e. Identifying the activities needed to complete those deliverables
and networking the activities in their logical sequence;
f. Estimating the resource requirements for the activities;
g. Estimating time and cost for activities;
h. Developing the schedule;
i. Developing the budget;
j. Risk planning;
k. Gaining formal approval to begin work.
3. Project Execution - Consists of the processes
used to complete the work defined in the project
management plan to accomplish the project's
requirements. In accordance with the project
management plan, execution process involves:
 Coordinating people and resources,
 Integrating and performing the activities of the
project
4. Project Monitoring and Controlling -
Consists of those processes performed to
observe project execution so that potential
problems can be identified in a timely manner
and corrective action can be taken, when
necessary.
 The key benefit is that project performance is observed
and measured regularly to identify variances from the
project management plan.
 • Project Monitoring and
Controlling includes:

a. Measuring the ongoing project activities (‘Where we are');

b. Monitoring the project variables (Cost, Effort, Scope, etc.)
against the project management plan and the project
performance baseline (‘Where we should be’);
c. Identify corrective actions to address issues and risks
properly (‘How can we get on track again’);
d. Influencing the factors that could circumvent integrated
change control so only approved changes are implemented
5. Project Completion - Includes the formal
acceptance of the project and ending or closing the
project thereof.This phase consists of:
 Project Close: Finalize all activities across all of
the process groups to formally close the project
or a project phase
 Contract Closure: Complete and settle each
contract (including the resolution of any open
items) and close each contract applicable to the
project or project phase
• Refers to the Constraints or factors
considered in any project undertakings

a. Time Constraint refers to the amount of time available to

complete a project.
b. Cost Constraint refers to the budgeted amount available
for the project.
c. Scope Constraint refers to what must be done to produce
the project's end result.
NOTE: Further refinements of these constraints separates product
quality or performance from scope.
Project Control is that element of a project that
keeps it on-track, on-time and within budget.
 Project control begins early in the project with
planning and ends late in the project with post-
implementation review, having a thorough
involvement of each step in the process.
 Each project should be assessed for the
appropriate level of control needed: too much
control is too time consuming, too little control
is very risky.
1. Fishbone Diagrams are also called ‘Cause and
Effect Diagrams' and Ishikawa diagrams, (Kaoru
Ishikawa, a Japanese professor in the 1960s).
a. Are useful for early planning, notably when
gathering and organizing factors, for example
during brainstorming.
b. Are not good for scheduling or showing
interdependent time-critical factors.
2. Work Breakdown Structure - Can
be developed by starting with the end
objective and successively subdividing it
into manageable components in terms
of size, duration, and responsibility (e.g.,
systems, subsystems, components, tasks,
subtasks, and work packages).
3. Gantt Chart - Horizontal bar charts depicting a snapshot
of the status of all project activities at any given time.
Named after US engineer Henry Gantt (who devised the
technique in the 1910s), known as the ‘Father of planning
and control techniques’.

 Gantt charts are excellent models for scheduling and for

budgeting, and for reporting and presenting and
communicating project plans and progress easily and
quickly.
4. Critical Path Analysis or Critical Path Method -
normally shown as a flow diagram, whose format is linear
(organized in a line), and specifically a time-line.

 Critical Path Analysis flow diagrams are very good for

showing interdependent factors whose timings overlap
or coincide.
 CPM is a logical and effective method for planning and
managing complex projects
 Critical Path Analysis flow diagrams also enable
costing and budgeting
5. Project Evaluation and Review Technique (PERT) - a model
for project management designed to analyze and represent
the tasks involved in completing a given project. It is
commonly used in conjunction with the critical path method
or CPM.
 PERT is a method to analyze the involved tasks in
completing a given project, especially the time needed to
complete each task, and identifying the minimum time
needed to complete the total project.
 PERT / CPM
PERT CPM
• Can be used if the duration • Used if the duration of each
of the project is not known activity is known
with certainty • Can be used to determine
• Can be utilized to estimate the length of time required
the probability that the to complete a project.
project will be completed • Can be used to control both
within a given deadline time and project cost
• Basically a tool for planning
and control of time
1. Activity – an effort that requires resources and takes a
certain amount of time for completion
2. Critical Activity – activity that, even slightly delayed, will hold
up the scheduled completion date of the project
3. Path – a sequence of adjacent activities that form a
continuous path between 2 events
4. Critical Path – sequence of critical activities that forms a
continuous path between the start of a project and its
completion; the longest path in the network that with the
minimum time in which the project can be completed
6. Event – specific accomplishment at a point in time; a
milestone, checkpoint. No time duration. To reach an
event, all activities preceding it must be completed
7. Network – a logical and chronological set of activities and
events, graphically illustrating relationships among activities
and events
8. Slack Time – the amount of time an activity can be delayed
without delaying the project.
9. Dummy – two or more activities in the network that
shows a precedence relationship that that represents no
passage of time.
Basic Steps in PERT/CPM Process

1. Identify all the tasks or activities associated with the

project.
2. Identify the immediate predecessor relationship for all
activities.
3. Construct the basic PERT Network for the project,
showing all predecessors relationship.
4. Estimate the Expected Time (ET) for each activity
ET = t0 + 4tm + tp
6
Basic Steps in PERT/CPM Process

5. Using a forward pass through the network, compute the

earliest start time (ES) and the earliest finish time (EF) for
each activity. EF = ES + ET
6. Using the expected project completion time, employ the
backward pass procedure to compute the latest start (LS)
time and the latest finish (LF) time for each activity.
LS = LF - ET
7. Compute the slack time associated with each activity.
SLACK = LS – ES or LF - EF

8. Identify the critical path for the network. Critical

activities are those with 0 slack time.
Project Crashing – a method for shortening the
project duration by reducing the time of one (or
more) of the critical activities to less than its
normal time.
Crashing is achieved by devoting more resources,
usually measured in monetary values, to the
activities to be crashed
 Crash cost – normal cost
Crash cost per time period =
normal time – crash time

Where: Normal time – PERT/CPM expected time

Normal cost – an estimate how much it will take to
complete an activity in normal time
Crash time – shortest possible activity time
Crash cost – price of completing the activity on a crash
or a deadline basis
Sample Problem
Immediate Expected Time
Activity Description
Predecessor to complete

A Build internal components None 2

B Modify roof and floor None 3
C Construct collection stack A 2

D Pour concrete and install frame B 4

E Build high temperature burner C 4

F Install Control system C 3
G Install Air pollution device D,E 5
H Inspect and Test F,G 2
SAMPLE: ESTIMATING
THE EXPECTED TIME
MOST
IMMEDIATE OPTIMISTIC PESSIMISTIC
ACTIVITY PROBABLE
PREDECESSOR TIME (o) TIME (p)
TIME (m)
A - 4 5 6
B - 6 8 10
C A 6 6 6
D B 3 4 5
E B 2 3 4
F C,D 8 10 12
G E 6 7 8
H C,D 12 13 20
I F,G 10 12 14