ACM C A03

Project Management Systems

and Techniques

Prof. Abhishek
Shrivas

by NICMAR
 ACM C A03 : Session Plan
• Sessions 1 & 2: Project management basic Concepts- What is
Project Management? What Constitutes a project, Purpose of a project,
Project as a business, Project management triangle, Project Planning,
WBS, OBS.

• Sessions 3 & 4: Bar Charts and CPM -Estimating duration, Drawing a

Bar Chart, features, Activity on Arrow, Time computations, critical path,
floats, Solve examples.

• Sessions 5 & 6: Network Analysis - Network Development, Dummies,

Three Time estimate, difference between CPM & PERT, Probability of
completing the projects, Solve examples

• Sessions 7 & 8: Precedence Network Diagram - Activity on Nodes,

Links, Lags, Comparative study of CPM & PND, Convert network to a Bar
Chart & vice versa, Solve examples

• Sessions 9 & 10: Work on a on-going construction site - and develop a

network with its complete analysis, Put different constraints and logical
sequence of the activities. Suspend and resume few activities.
by NICMAR
 ACM C A03 : Session Plan contd..

• Sessions 11 & 12 : Presentation of the above assignment with discussion

• Sessions 13 & 14: Work Breakdown Structure - Detailed Analysis of

WBS, also Organisation Breakdown Structure, Merger of WBS & OBS,
Notation, codification system leading to ease of computation and data
collection for project management, Allocation of responsibilitiesSolve
examples

• Sessions 15 & 16: Crashing Projects and Time Control - The necessity
of crashing, ways and means of crashing, methodology of crashing using
least cost slopes, cost of crashing, Time Monitoring, What-if
AnalysisSolve examples

• Sessions 17 & 18: Resource Planning, scheduling, Leveling - Types of

Resources, Productivity control, identifying time waster of a project
team and taking corrective action, use of bar charts to use a manual
method to solve problems.

• Sessions 19 & 20: Computer Applications , benefits and limitations.

Communications, “S” curves, Earned Value, Cost Control - Drawing “S”
curve from WBS, Calculations of earned value
by NICMAR
 Reference Books
Text Book:
1. Kerzner Harold, Project Management : A Systems Approch to Planning,
scheduling and Controlling, 8th edition, John Wiley and Sons.
2. Jha Neeraj, Construction Project Management, Theory and Practice,
2nd edition
Reference Books:
1. Patrick Charles, Construction Project Planning and Scheduling, 1st
edition, Pearson
2. David Pierce, Project Scheduling and Management for Construction, 4th
Edition, Wiley
3. Nicholas and Steyn,Project Management for Business, Engineering, and
Technology, 3rd edition, Elsevier.
4. Nagarajan K., Project Management,5th edition, New Age International
5. Punamia and Khandelwal,Project Planning and Control with PERT and CPM,
4th edition, Laxmi Publications
by NICMAR
 Definitions - Project

• Project is a PROCESS of carrying out work to achieve

a RESULT (Facility, product or services)
It has several characteristics :
• Well defined objectives
• Complex, unique effort
• Defined timescale / cost / resource
• Multi disciplinary team
• Quality and safety

by NICMAR
 New Definition of Projects
• Project is an endeavor in which human, material and financial resources
are organized in a novel way to undertake a unique scope of work of
given specification, within constraints of cost, and time, so as to achieve
unitary, beneficial change, through the delivery of quantitative and
qualitative objectives.

Scope Purpose

Orgzn

Time Qlty
Cost
by NICMAR
by NICMAR
 Definitions – Project management
•ISO10006:1997E—The Planning, Organizing, monitoring and
controlling of all aspects of the project in a continuous process to
achieve its objective.

•PMI –The application of knowledge, skills, tools and techniques to

project activities in order to meet or exceed stakeholder needs
and expectations from a project.

PROJECT MANAGEMENT
by NICMAR TRIANGLE
 Construction Projects

Money
Materials Manpower
Land Equipment

Management

The Project
by NICMAR
Pitfalls Commonly Encountered during
Projects
 Incorrect Assumptions
 Incorrect Estimation
 Work More Difficult than Anticipated
 Non-availability of Equipment
 Changes in Designs, Budget, Dead line
 Land Acquisition
 Human Error
 Approvals
 Conflicts
 Project Life Cycle
• Conceptual Stage
• Preliminary Stage
• Design Stage
• Construction Stage
• Operation & Maintenance
• Handing over or close out

by NICMAR
PHASES OF PROJECT NETWORK

• Planning
• Analyzing and Scheduling
• Resource Allocation
• Controlling
 Planning

• Defining the objectives

• Developing WBS
• Determining the Quanta of
individual work elements
Analysis and Scheduling

• Determining the precedence

relationship
• Determining the extend of inter
dependency
• Scheduling the flow path of
activities
 Resource Allocation
• Identifying the types of resources
• Quantity of resources
• Duration of Activity
 Controlling
• Evaluating Progress
• Degree of fulfilment of the objectives
• Analyzing the status of the project
• Remedial measures/re plan
Project Management Software
• PRISM
• Success Planned
• Construction Manager
• Yojana
• Microsoft Project MSP 2016
• Primavera P6 R 8.2

by NICMAR
 What do they do?
 Scheduling for Resources.
 Plan Work Breakdown Structure
 Monitoring the Project Progress
 Controlling Time and Cost Estimates
 Documentation

by NICMAR
 Data for Software

Activity Details
– List, Duration, Links, Type, Constraints.
Calendars.
WBS.
Resources and cost.

by NICMAR
• It is in the implementation phase that ONE has to play a
major role of planning. Planning is the core element for the
success of any project. The more meticulous the planning,
the more are the chances of the project getting completed.
It is here that the planning tools and techniques come into
picture. Planning techniques are scales and graphs by which,
time, cost, resources, and performance are scheduled,
interrelated, measured and controlled. But the notion that
scientific planning will automatically ensure good project
management is wrong. For this understanding the techniques
is equally an important aspect. The main planning techniques
used in engineering projects are:
• Bar Charts
• Flow Chart or Network Analysis
– Critical Path Method or Critical Path Analysis
(CPM)
– Performance (also called ’project’ or ‘programme’)
evaluation and review technique. (PERT)
– Precedence Network Analysis or Precedence
Diagram Method (PDM)
– Line of Balance by NICMAR
 Basics of network analysis

A network shows the sequence and interdependence of the activities in a

project in a diagrammatic form using standard symbols. A network is the
graphical representation of the project activities arranged in a logical
sequence and depicting all the interrelationships among them. A network
consists of activities and events.
 Suitability of various techniques
• CPM is best suited for developing the sub network of sub groups
and tasks having activities with deterministic single time duration.
Having deterministic approach. The CPM (critical path method)
system of networking is used, when the activity time estimates are
deterministic in nature. For each activity, a single value of time,
required for its execution, is estimated. Time estimates can easily
be converted into cost data in this technique. CPM is an activity
oriented technique.

• PERT is used for projects involving uncertainties. It is having

probabilistic approach.

• PNA is commonly used for time planning of construction project.

• GERT or graphical evaluation and review technique is probabilistic

conditional branching and looping path.

by NICMAR
 Work Breakdown Structure
• A Work Breakdown Structure (WBS) is an organized, hierarchical
representation of all work — broken out in sufficient detail — to
support a project’s planning, assignment of roles and
responsibilities, and ongoing monitoring and control.

The different WBS levels have had many different names. The very top
element is typically a project and the lowest level of detail is typically a
work package. However, the levels in between have been called phases,
subprojects, work assignments, tasks, subtasks, deliverables, and sub
deliverables, the top-level box is a project, the lowest level of detail is a
work package, and all other levels are Level 1, Level 2 and so forth.
by NICMAR
 • Scope of the project work is broken down into manageable parts
arranged in a hierarchical order.
• Each descending level signifies an increasingly detailed description
of the elements in the preceding project level.
• An activity is the lowest level, which is usually a part of work
package.
• In WBS deliverables are tangible measurable parts of the project.
• Non deliverables are financing, pre contract development,
designing, reworking, testing, handing over and close-up.
• Classification of WBS
Level Description Main criteria
1 Sub project level An independent deliverable end product requiring
process of multitasks having large volume of work.

2 Task level An identifiable and deliverable major work

containing one or more work package.

3 Work package level A sizeable, identifiable, measure and cost able work
item.

4 Activity level Identifiable lower level job, operation, or process,

which consumes time and possibly resources.
by NICMAR

5 Operation level A lowest level day to day operation (Part of an

activity).
 WBS example.

Sub project level

Task level

Work package level

Activity level

by NICMAR
 Ask three questions and do numbering
• Can you accurately estimate the resources you’ll need?
(Resources include personnel, equipment, raw materials, money, facilities,
information, and so on.)

• Can you accurately estimate how long the activity will take?

• If you have to assign the activity to someone else, are you confident that he’ll
understand exactly what to do?

• The first number refers to a level 1 category.

• The number after the first period refers to a level 2 category under that level 1
category.
• The number after the second period refers to a level 3 category under that level
2 category.
• The number after the third period refers to a work package under that level 3
category.
by NICMAR
 WBS Cont.…
• Construction projects are best organized by tasks, best
controlled by work package, and best programmed for day work
by using operational level and best planned and monitored by
activity.
• Activity duration forms the basis of time planning and scheduling.
• Detailed information of the resources needed for execution of
each activity enables the preparation of resource forecast.
• The activity contract value is used to determine income and cash
flow forecast.
• The activity actual cost is used to determine Earned value
analysis for monitoring.

by NICMAR
 Historical evolution (CPM/ PERT)
• Before 1957 there was no generally accepted procedure to aid the
management of a Project.

• In 1958 PERT was developed by team of engineers working on a

Polaris Missile programme of the navy. This was a large project
involved 250 prime contractors and about 9000 job contractors.

• It had about 19 million components. In such projects it is possible

that a delay in the delivery of a small component might hold the
progress of entire project. PERT was used successfully and the
total time of completion was reduced from 7 years to 5 years.

• In 1958 Du Pont Company used a technique called Critical Path

Method (CPM) to Schedule and control a very large project like
overhauling of a chemical plant, there by reducing the shutdown
period from 130hrs to 90 hrs. saving the company 1 million dollar.
• Both of these techniques are referred to as project
scheduling techniques.
 Network Techniques
The forerunner to network techniques, the Gantt chart
was developed, during world war I, by Henry L Gantt, for
the purpose of production scheduling. An example of
Gantt chart is shown below. The Gantt chart was later
modified to bar chart, which was used as an important
tool in both the project and production scheduling. The
bar charts, then developed into milestone charts and next
into network techniques (such as CPM and PERT).

by NICMAR
 Activities Time (Weeks) Relationships

Digging of foundation 3

Pouring foundation 1
concrete

Construction of walls 10 Succeeds pouring

foundation concrete

Construction of roof slabs 3 Succeeds construction of

walls
Fixing doors and windows 1 Succeeds construction of
roof slab

Digging of well 1

Plastering and finishing of 2 Succeeds fixing of doors

wall and windows

by NICMAR
by NICMAR
Activities Preceeding activities Time (Days)

A _ 40

B _ 20

C A&B 15

D A 25

E C 15

F A&B 25

G F 10

H G 15

I G 10

J I 15
by NICMAR
by NICMAR
by NICMAR
 Network
Fundamentals
 Consist of nodes and arrows
 Graphical representation of activities showing a
logical dependence

Activity
i A j
Laying of
concrete floor
Representing network of
activities
 Network Elements
89

Nodes
(Even
ts)
Linkages/Arro
ws
(Activities)
Node
1
Node
2
Netwo
rk
 Definitions and concepts
• An activity is defined in terms of its supporting core
databse which consist of quantity, duration, resources, Cost
and earned value associated with accomplishment of the
activity.

• In CPM an arrow represents an activity the description of an

activity is written above the arrow and its duration in the
middle underneath
Excavation
2

• The function between activities are called events. An event is a point in time, a
milestone representing the beginning or completion of one or group of activities.
It is represented by a circle with number in it.
Excavation
1 2
2
by NICMAR
 Eg: Project - Laying of foundation
92

Identify the events and activities.

Sequential order of activities.
 Continued…
• The first event of a project is called start event and the
last is end event.
• An event at which the activity starts is termed preceding
event. The event at which it terminates is called succeeding
event.
• An event of significance such as building ready for
occupation is termed as a MILESTONE.
• Dummy activities: It is a superimposed activity which does
not represent any process it has a zero duration and
consumes no resources. Its purpose is two fold:
1. To provide a logical link to maintain the correct relationship
of activity.
2.To simplify the description of concurrent activities in terms
of event number.
• Its drawn like any other activity but with a dotted line.
by NICMAR
by NICMAR
 Development of a network
• First tabulate the network logic and then drawing the arrow
diagram step by step.
• The logic of activity can be made by questioning each
activity as follow
A.Which activity/ies precede this activity
B.Which activity/ies succeed or follow this activity?
C.Are there any logical constraints?
D.Is it the final activity?

by NICMAR
 Rules for drawing network diagram
Rule 1: Each activity is represented by one and only one arrow in the network.
Rule 2: No two activities can be identified by the same end events.

Rule 3: Precedence relationships among all activities must always be maintained.

Rule 4: Dummy activities can be used to maintain precedence relationships only

when actually required. Their use should be minimized in the network diagram.

Rule 5: Looping among the activities must be avoided.

by NICMAR
 Cont..
• An activity (succeeding) cannot start unless all its preceding activities
have been completed. (not applicable on dummy activity)

• Network diagram cannot have more than one starting node

or end node.
• The activities emerging from event 1 should have no
predecessor activities & event having highest number in
diagram should have no successor
by NICMAR
activity.
Rule for Numbering events:-
Each events should have a distinct number. Usually number at the head of
the arrow is greater than that at its tail. (Fulkerson’s Rule) i.e.., numbers
should not be duplicated.
Fulkerson’s Rule
•The starting event (having no predecessor activity is
numbered as 1 ) other events are numbered in increasing order
i.e. from 1 to rightwards
•if there are more then 1 initial event found in a diagram ,
anywhere they are to be numbered from top to bottom in
increase order.
•No two events can have the same number in any case .

by NICMAR
Use of dummy activity:
• To establish correct precedence relationships, dummy activities are used.
• A dummy activity, which is normally depicted by a dashed arc, consumes
no time or resources.
• For example, if two activities that can start concurrently and have the
same duration can be represented using a dummy activity as:
• A dummy activity is an imaginary activity which can be accomplished in
zero time and which does not consume resources.
• It may also be used to represent a constraint.{ It Indicates only
precedence relationships . Does not require any time of effort}

by NICMAR
110
 Types of Networks
Two kinds of networks: AOA & AON

1. AOA – Activity on Arrow technique

Activities are shown as arrows leading from one node
to another and the nodes represent the start or end
of an activity (Events)
 1. AOA Network
94
 Eg: Activities on Arrow
95
Network
2. AON Network - Activities denoted
on nodes
96
Eg: Activity On Node Network

Also, known as Event oriented Network

 Activity Relationships
Activity Relationship

AOA AON
 Activity Relationships
Activity Relationship

S precedes T, which precedes U.

AOA AON

S T U
1 2 3 4 S T U
 Activity Relationships
Activity Relationship

S and T must be completed before U can be started.

AOA AON

1 S S
U
T 3 4 U

2 T
 Activity Relationships
Activity Relationship

T and U cannot begin until S has been completed.

AOA AON

T 3 T
S
1 2 U S

4 U
 Activity Relationships
Activity Relationship

U and V cannot begin until both S and T have been

completed.

AOA AON

1 S U 4 S U

T 3 V

2 5 T V
 Activity Relationships
Activity Relationship

U cannot begin until both S and T have been completed; V

cannot begin until T has been completed.

AOA AON

S U
1 3 5 S U

Dummy
T V
2 4 6 T V
 Activity Relationships
Activity Relationship

T and U cannot begin until S has been completed; V

cannot begin until both T and U have been completed.

AOA AON

S T V
1 2 4 5 S T V

Dummy
U
3 U
Sequencing - Precedence diagram

 Parallel activity (Concurrent) - Serial activity (Consequent)

 Predecessor – Successor activity
 Exerci
101 se

1. Find out the predecessor and successor of each activity

2. Which is the tail event and which is the head event?
Example 1
112

Draw the network of a project having seven activities.

Activity predecessor relationship are as follows:

ACTIVI PREDECESSOR
TY
D A

E B

F C
Activities A, B and C run concurrently. Activity G is the last
operation of the project and is also the successor to activity D,
E and F.
 Initial networks
113

Final network
 Exercise 2
Draw a precedence diagram for the project having 9
activities, with the following inter-relationships:

 C follows D but precedes F

 C follows B but precedes H
 G follows F but precedes I
 E follows A but precedes I
 D follows A
 H and I terminate at the same time
 A and B start at the same time
A C F I
D G

B
H

by NICMAR
Summary - Network Scheduling –
Rules/Guidelines
116

 Single start and end

 Activity sequence – left to right

 Progressive and unique numbering

 No loop formation

 Minimum dummies in A-O-A networks

 No dummies in A-O-N networks

 Avoid cur ved arrows

 Legends/notations
 Practice Problem 1
117
 A-O-N Network
118
 Exercise 2: A-O-A
119
Network
 A-O-A Network
120
Exercise 3 - AOA Network
A project has 14 activities A through M with the following relationships.
Construct the Network Diagram.
A is the first operation
 121

 B and C can be performed in parallel and are immediate successor to A

 D, E and F follow B

 G follows E

 H follows D, but it cannot start until E is complete

 I and J succeed G

 F and J precede K

 H and I precede L

 M succeeds L and K

 The last operation N succeeds M and C

 Exercise 4 - AON Network
123

A project plan consisting of ten events have predecessor

relationships as given. Draw the network
Even Predecessor
t1 ---
2 1
3 2
4 2
5 2
6 3,5
7 3,4
8 3,7
9 7
10 3,6,8,
124
Exercise 5 - AOA network
A project consists of 16 activities having their
predecessor relationship as follows:
125

 A is the first activity of the project

 B,C,D follow A and can be done concurrently
 E and G cannot begin until C is completed and can be
performed
simultaneously
 F succeeds B and E

 H and K run in parallel and both succeed G

 L succeed F and H
 M andJ N
I and succeed
succeed I and K.
activity D However M and N can be
performed concurrently
 Activities O and P are the last activities. Activity O
succeeds N and L. Activity P is the immediate
successor to M and J. Draw the network and number
the events.
 Solution - 3
126

F
B
E L
H
A C
G K N
O
D I
M END

J P
Thank you

by NICMAR