DEPARTMENT OF COMMERCE & BUSINESS MANAGEMENT

INTEGRAL UNIVERSITY, LUCKNOW

Session 2023-24
BBA Fifth Sem / Third Year
PROJECT MANAGEMENT (BM -319)
Unit 2 Part A
Unit 2: Time Scheduling a Project: Gantt Carts and LOB. Network Techniques: Concept of
project network, Critical path method, Slack and free float, PERT and its advantage over
CPM, Software used in solving CPM, Estimation of Project Cost.

GANTT CHART
A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry
L. Gantt, an American engineer and social scientist. Frequently used in project management, a
Gantt chart provides a graphical illustration of a schedule that helps to plan, coordinate, and
track specific tasks in a project.

Gantt charts may be simple versions created on graph paper or more complex automated
versions created using Microsoft Excel.
A Gantt chart is constructed with a horizontal axis representing the total time span of the
project, broken down into increments (for example, days, weeks, or months) and a vertical
axis representing the tasks that make up the project.
Horizontal bars of varying lengths represent the sequences, timing, and time span for each
task.
Gantt charts give a clear illustration of project status, but one problem with them is that they
don't indicate task dependencies - you cannot tell how one task falling behind schedule
affects other tasks. The PERT chart, another popular project management charting method, is
designed to do this.

LOB Technique
Line of Balance (LOB) is a management control process for collecting, measuring and presenting
facts relating to time, cost and accomplishment – all measured against a specific plan. It shows
the process, status, background, timing and phasing of the project activities, thus providing
management with measuring tools that help:

 Comparing actual progress with a formal objective plan.

 Examining only the deviations from established plans, and gauging their degree of severity
with respect to the remainder of the project.
 Receiving timely information concerning trouble areas and indicating areas where
appropriate corrective action is required.
 Forecasting future performance.
The LOB itself is a graphic device that enables a manager to see at a single glance which
activities of an operation are “in balance” – i.e., whether those which should have been
completed at the time of the review actually are completed and whether any activities scheduled
for future completion are lagging behind schedule. The LOB chart comprises only one feature of
the whole philosophy which includes numerous danger signal controls for all the various levels
of management concerned.

To do LOB, the following is needed:

 A contract schedule, or objective chart;

 A production plan or lead-time chart for the production process itself;
 Control points cumulative inventories; and
 A program status chart on which to plot LOB and the cumulative quantities of units that
have passed through the control points of the assembly/production process.
Critical Path Method Analysis Software
1. nTask
2. Zoho Projects
3. Wrike
4. LiquidPlanner
5. Lucidchart

1. nTask
nTask is our best due to its functionalities and no secret plus the ease-of-use. With its advanced
features, the project management software has managed to sign up 250,000+ teams from all
across the globe. nTask community continues to grow with the latest upgrades in the tool, geared
for a smoother experience.
Moreover, nTask is not just a project management tool, it is a one-stop-shop addressing all your
needs. From task management to financial summaries, time tracking, and much more, you name
it, nTask has got it.

Key Features:
 Full visibility on workflows with Gantt charts and Kanban boards
 Link issues or meetings with projects
 Set planned and actual dates
 Real-time notifications, and alerts
 Prioritize tasks with custom statuses

2. Zoho Projects
Zoho Projects is one of the most renowned tools when it comes to project management. The
platform offers a host of different solutions for business management. Zoho Projects is a cloud-
based management software that can easily take over most of your manual tasks and make
management a piece of cake for you.

Key Features:
 Create a baseline to track progress
 Color code details to keep everything organized
 Visualize task dependencies
 Reminders and notifications

3. Wrike
Wrike is our second pick for the list of the best software for critical path analysis. Wrike offers a
suite of advanced features with high usability. Along with mainstream features, the management
platform offers customizations so that you can personalize your workflow for the business.
Furthermore, real-time communication with Wrike makes coordination much simpler and easier.

Key Features:
 Helps identify bottlenecks with critical path analysis
  Gantt chart offers visualization into the workflow
 Control multiple projects from a single platform
 Create tasks, add dependencies, and track progress
 Adjust dates and deadlines accordingly

4. LiquidPlanner
LiquidPlanner is another great tool that can change the way you manage your projects. The tool
is an excellent critical path analysis software since it allows you to build efficient plans using
predictive scheduling.

Key Features:
 Smart schedule bars help identify the time a task will finish at
 Move tasks from one status to another while keeping the priority status intact
 Automatic resource leveling
 Make accurate predictions with estimate calculation

5. Lucidchart
Lucidchart is our fifth and last pick for this list. The tool offers efficient solutions to help teams
accomplish their goals without any delays in the process. The software is not only good for
project management but also functions as a brainstorming and mind mapping platform wherein
team members can communicate and collaborate without any gaps in the process.

Key Features:
 Visualize complex structures with intelligent diagramming
 Shared space for collaboration
 Connect with a variety of apps and tools
 Improve visibility by integrating with Lucidspark
 Trustworthy security
Estimation of Project Cost
Cost estimation in project management is the process of forecasting the financial and other
resources needed to complete a project within a defined scope. Cost estimation accounts for each
element required for the project — from materials to labor — and calculates a total amount that
determines a project’s budget. Once the project is in motion, the cost estimate is used to manage
all of its affiliated costs in order to keep the project on budget.

Elements of cost estimation in project management

There are two key types of costs addressed by the cost estimation process:

1. Direct costs: Costs associated with a single area, such as a department or the project
itself. Examples of direct costs include fixed labor, materials, and equipment.

2. Indirect costs: Costs incurred by the organization at large, such as utilities and quality
control.
Within these two categories, here are some typical elements that a cost estimation will take into
account:

 Labor: The cost of team members working on the project, both in terms of wages and
time

 Materials and equipment: The cost of resources required for the project, from physical
tools to software to legal permits

 Facilities: The cost of using any working spaces not owned by the organization.

 Vendors: The cost of hiring third-party vendors or contractors.

 Risk: The cost of any contingency plans implemented to reduce risk.

NETWORK TECHNIQUE
Consider the following example having following list of activities & their precedence
relationship which is shown below in the table:

Activity Description Duration Immediate

predecessor(s)
(week)

A Obtain the budget approval 2 _

B Obtain the machine 5 A

C Hire the operator 1 A

D Install the machine 1 B

E Train the operator 6 C

F Produce the goods 1 D, E

The example one above explain a project related with production by a human. Different activities
involve in the process are shown in the figure.

NETWORK TECHNIQUE: -
Network Technique plays an important role in PM. Network is a graphic description of activities
& events. By analyzing a network, planning (scheduling) & controlling of a project becomes
much easier.
PERT & CPM represent the two well-known network analysis technique. These techniques are
used to assist the manager in planning & controlling the large-scale construction project, research
& development project, oil refinery project etc. These projects are very large & complex
involving multiple tasks by several departments.
Following are the example of such projects
1. Installation of a pipe line project
2. Ships & Aircrafts repair project
3. Development of a new Drug
4. Construction of a residential complex shopping mall
5. Designing & laying of new manufacturing plan
The application of PERT & CPM technique is made in
a) Planning
b) Scheduling
c) Allocation of resources
d) Controlling
These projects require high amount of money, manpower, & other equipment. PERT/CPM help
the manager to determine
1. The expected project completion date.
2. The schedule starts.
3. The completion time for the different activity.
4. The key activities of the project, it must be completed at the schedule time
5. The time period by which non key activities may be delay without causing a delay in the
completion time of the whole project.
Both techniques use similar technology & serve the same general purpose. PERT was developed
during the designing of the Polaris submarine system by defense department of US. CPM was
developed by Dupont & Univac division of Remington Rand Cooperation as a device to control
the maintains of chemical plant.

PERT advantages over CPM

PERT vs. CPM (Program Evaluation and Review Technique) are most commonly used methods
for project management. There are some similarities and differences between PERT and CPM.
PERT can be applied to any field requiring planned, controlled and integrated work efforts to
accomplish defined objectives. On the other hand, CPM (Critical Path Method) is the method of
project planning consisting of a number of well-defined and clearly recognizable activities.
PERT vs. CPM
1. CPM -uses activity-oriented network. PERT uses event-oriented Network.
2. CPM- Durations of activity may be estimated with a fair degree of accuracy. PERT- Estimate
of time for activities are not so accurate and definite.
3. CPM-It is used extensively in construction projects. PERT- It is used mostly in research and
development projects, particularly projects of non-repetitive nature.
4. CPM-Deterministic concept is used. PERT-Probabilistic model concept is used.
5. CPM- can control both time and cost when planning. PERT is basically a tool for planning.
6. In CPM, cost optimization is given prime importance. The time for the completion of the
project depends upon cost optimization. The cost is not directly proportioned to time. Thus, cost
is the controlling factor. In PERT, it is assumed that cost varies directly with time. Attention is
therefore given to minimize the time so that minimum cost results. Thus, in PERT, time is the
controlling factor.

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