PROJECT PLANNING

AND SCHEDULING
ISHWAR ADHIKARI
 CONCEPT OF PROJECT
Every product or services what we are acquiring today is the
outcome of our necessity.
For fulfilling the desire or necessity, an idea is generated in a
human mind.
To translate the idea into reality, a single person is not
capable of doing it alone.
A person utilizes the different resources including the human
and non human resources for translating the idea into the
physical form.
The process of converting the idea into reality by utilizing
the different resources is said to be a project.
 DEFINITION OF PROJECT
“A project can be defined as an unique task (however large or
small) with defined goal, limited in cost and time and giving
some benefits to the users after its completion”.
“A project is defined as a temporary endeavor undertaken to
create a unique products or services”.
“A project is a collection of limited activities, carried out in an
organized manner with a clearly defined start and finish points,
to achieve some specific results that satisfy the needs of an
organization as derived from the current business plans.”
 RESOURCES OF A PROJECT
Generally Denoted by 5 ‘M’
Money
Manpower
Material
Machine
Minute/ Management

Management of the above listed 5 ‘M’s relies on core

function of project management
 A good project is that which is:

 Technically feasible
 Economically viable
Because projects are
 Socially acceptable considered as cutting edge of
 Politically suitable & any development
 Environmentally friendly
 CHARACTERISTICS OF A PROJECT
Any task or job or work can be said as a project if it meets the certain
characteristics.
1. A Defined Goal/ Objective
2. Unique
3. Specific task not routinely performed
4. Temporary (Life Span)
5. Team Work
6. Resource being consumed
7. Risk and Uncertainties
8. Planning and Control
9. Constraints
10. Contracting and subcontracting
11. Progressive Elaboration
12. Life cycle
13. Defined Deliverables
 CLASSIFICATION OF PROJECT
(Cont’d…)
Customer sponsorship
• Sponsorship by an individual or a party

Organization
• By firm, company
According to Sponsorship
(Who Sponsors??) Contractor
• To sub contractor

Government Organizations
• Department, office

International Non-Government organizations

• Non-governmental Organizations
 CLASSIFICATION OF PROJECT
(Cont’d…)
According to Nature
(assigned to whom???)

Individual Staff Special Complex

1. Individual
This sub class of project is one in which one individual (may be
from within the organization or an independent person) is
assigned with the responsibilities to complete it. [2]
An INGO may identify individual from its organizational setup
or independent person.
 CLASSIFICATION OF PROJECT
(Cont’d…)
2. Staff
This sub class of project refers to assigning the project activities
to a particular department.
The research and development or engineering department
within a company may be assigned to develop a project on new
product development.
3. Special
This sub class is one in which an independent researcher is
identified and entrusted with the responsibilities to conduct a
research.
This is similar to the individual project but will address a special
issue. Example: national expert on security issue.
 CLASSIFICATION OF PROJECT
(Cont’d…)
According to Source of
Funding

Indigenous Bilateral Multilateral Joint Venture

1. Indigenous Project
 It is based on local thinking, technology, and environment and
carried mostly by local people.
It is mostly the blend of indigenous materials, technology and
resources.
It helps to preserve and protect tradition and culture and help to
expand people friendly market for local products. [3]
 CLASSIFICATION OF PROJECT
(Cont’d…)

2. Bilateral Project
All the projects which are carried on under the agreement
of two countries are called bilateral projects.
It involves both technology as well as capital. These projects
are mostly funded through the financial resources of the
donor. They could be in the form of grants. [4]
These projects are governed by an agreement and
memorandum of understanding between two governments.
[2]
 Example: JICA, USAID, GTZ, KOICA etc.
 CLASSIFICATION OF PROJECT
(Cont’d…)
3. Multilateral Project
All the projects which involves the funding of projects through
the resources directed by the donors through multilateral
agencies are called multilateral projects.[4]
 The financial resources are mobilized from the international
financial institutions by way of credit or loans.
Multilateral agencies might be European union (EU), World
bank, Asian Development Bank (ADB), International Finance
Corporation (IFC), World Bank etc.
 CLASSIFICATION OF PROJECT
(Cont’d…)
4. Joint Venture Project
 Any project undertaken to produce goods and services
through collaboration of foreign and local investors is joint
venture project.
The ownership is proportionally shared in an agreed ratio.
It is associated with transfers of technology, capital, or
managerial skills.
Due to globalization and advancement in information
technology, joint venture business is becoming very popular.
Examples: Maruti-Suzuki in India,
 CLASSIFICATION OF PROJECT
(Cont’d…)
According to the Orientation

Product Process
Oriented Oriented

1. Product oriented
The focus is on the technical content of the project. The outcome
of the project is a product which fulfills consumer needs.
Examples – building, road, bridge etc.
2. Process oriented
• No consideration is given to technical context. Examples- person
focused training, repair of cement plant etc.
 CLASSIFICATION OF PROJECT
(Cont’d…)
According to the Scale and Size

Mega Major Medium Micro

1. Mega Project
It is a big size complex project for 10 to 20 years involving huge
investment and high technology, includes multiple public and
private stakeholders and impact millions of people.
These projects required environmental screening like EIA
(Environmental Impact Assessment).
 CLASSIFICATION OF PROJECT
(Cont’d…)
2. Major Project
It is smaller in size than mega project. The project requires
relatively large amount of fund, large number of people and more
activities to be performed is known as major project. [5]
3. Medium Project
It is small in size than major project. These project requires IEE
(Initial Environment Examination).
4. Micro Project
It refers to a very small project for short duration. The financial
resources involved is also very small.
 CLASSIFICATION OF PROJECT
(Cont’d…)
According to the Time and
Speed
Normal Crash

1. Normal Project
In this category of projects, adequate time is allowed for
Implementation of the project.
All the phases in a project are allowed to take the time they
should normally take. This type of project will require minimum
capital cost and no sacrifice in terms of quality. [6]
 CLASSIFICATION OF PROJECT
(Cont’d…)
2. Crash Project
Crashing is the process of shortening the project duration.
When the project duration exceeds the normal completion
time, crashing is encouraged.
Saving in time is achieved by spending extra resources in
terms of money, materials and manpower with
compromising quality. Overlapping or shortening of project
phases is encouraged.
 PROJECT LIFE CYCLE AND PHASES
Project is a temporary job. It cannot continue endlessly. The
life span of the project is divided into phases.

A project depending upon its nature, size and type, undergoes

through different well defined phases right from its inception
to successful completion.

Collectively, the project phases are known as project life cycle

phases. The breakdown and terminology of these phases differs
depending upon the nature of the project or organization.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)

 Project life cycle defines what technical work should be done in

each phase and who should be involved in each phase. [7]

The project life cycle refers to a logical sequence of activities to

accomplish the project goal or objective.

A lucid understanding of these phases permits project manager

to better control the resources in the achievement of desired
goals. [3]
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
Generally for engineering project (infrastructure related
project) , five basic phases contribute to develop an idea into
reality.
Initiation
Phase
Planning
Termination Phase
Phase
PROJECT
LIFE
CYCLE
Design
Implementa
Phase
tion Phase
Fig: Project life cycle phases [11]
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
1. Initiation Phase
 The project need is identified in this phase and it signals the
commencement of the project.
This phase includes:
(a) Conceptual study:
• Projects are born with creative ideas. It includes preliminary
evaluation of ideas, such as project identification and project
formulation.
• Creation of the project charter.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
(b) Feasibility study:
• The objective of the feasibility study is to have more detailed
information about the location, nature, dimensions, raw
material needed, equipment, cost-benefit analysis, and the detail
about the users who will be benefitted from the project.
(c) Market study:
• It includes the study of the marketing prospects and demand of
the product, considering (a) potential size and composition of the
market (b) present and projected demand of the
product/services.
After the completion of this phase, a go/no-go decision is made.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
2. Planning Phase
Planning is deciding in advance the future course of actions
which is the primary function of management. [8]
 Major activities carried out in this phase are:
(a) Work breakdown structure:
• The project is broken down into small elements so that all
the activities to be performed in the project are included.
• Allocation of roles and responsibilities to the different
stakeholders.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
(b) Cost and Schedule Planning:
• After breaking down the project, the time and cost of each
activity is determined and overall time and cost of the project
is determined.
(c) Contract terms and condition:
Procurement related works are also carried out in this phase
which involves two major type of activities: [9]
(i) Contracting and sub contracting for services of general and
speciality construction contractors.
(ii) Obtaining materials and equipment required to construct
the project.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
3. Engineering and Design Phase
 This Phase includes:
(a) Preliminary Engineering and Design:
• It stresses architectural concepts, evaluation of technological
process alternatives, size and capacity decisions, and
comparative economic studies. [9]
• For example: In designing dam, hydropower, irrigation
channel preliminary design requires analysis of hydrological
characteristics, geological condition, precise location of dam
etc.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)

(b) Detailed Engineering and Design

• It involves the process of successively breaking down,
analyzing and designing the structure and its elements.
• It gives the information to the constructors exactly how to
build the structure in the field considering the standard of
safety. [9]
• This detailed phase include architects, interior designers,
landscape architects, and several engineering disciplines
including chemical, civil, electrical, mechanical etc.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
4. Implementation and Controlling Phase
This phase is also known as the execution or construction
phase. Relatively this is the longest phase in a project life cycle.

This phase involves about 80% of the total project work and
the resources are also extensively used.

It is the mark or signal that something starts growing in the

project site and stakeholders can see the project visibly. [3]
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
This Phase includes :
• Application of the paper work physically in the real field.
• Mobilization of human and non human resources in
accomplishing the activities defined in earlier phases.
• Manufacturing, installation of machines and testing and civil
works.
• Controlling is performed to check project performance at any
point of time during implementation.
• Risk management
• Resolves issues if any
• The facility is substantially completed at this phase.
 PROJECT LIFE CYCLE AND PHASES
(Cont’d…)
5. Divestment/ Phase out/ Termination
• This phase is the end of project and project is brought to its
completion.
• The final testing and maintenance of the project is done and
handed over to the customer and resources are released to
other projects.
• The basic tasks in this phase are evaluation and handover of
the project output to the beneficiaries.
PROJECT LIFE CYCLE AND PHASES
(Cont’d…) Full
Installation Operation
Substantially
100% Completed

Major
Percent Complete

Contracts
Let

Project
“GO”
Decision

Start End
Stage I Stage II Stage III Stage IV
Fig: LIFE CYCLE STAGES [7]
 Project life cycle in terms of
resources/risk and time
Resources /Risk
Resources

Risk

Start End
Initiation Planning Engineering and Implementati Termination
design on
PROJECT CASH FLOW (Cont’d…)

Revenue

Appraisal Implementation Operation

Time

Commission

Cost Sanction

Investment Return
Fig: Project Cash Flow
 CONCEPT OF PROJECT PLANNING
Meaning of General Planning
 In the simple sense, planning means thinking ahead of an
operation to be performed.
It is the function of selecting the enterprise objectives and
establishing the policies, procedures, and programs necessary for
achieving them. [7]
Planning includes both assessment of future opportunities and
challenges for an organization and developing strategies to achieve
the organizational goals.
Planning is the intellectual capability of manager who decides
whether or not the act or take up to a particular event or not. [6]
 CONCEPT OF PROJECT PLANNING
Meaning of Project Planning
It is concerned with development a project for investment.
 It identifies and addresses the tasks required for accomplishment
of project objectives.
It acts as a roadmap for managing the project. It determines how
the project objectives will be accomplished.
It involves detailed design, budgeting, scheduling and allocation of
resources.
It is the process of thinking through and making explicit the
project’s objectives, goals and strategies necessary to bring the
project through its lifecycle to successful termination. [8]
 Meaning of Project Planning (Cont’d…)
 Steps of project planning: [9]
1. DEFINE : The objective of the project in definite words.
2. ESTABLISH : Goals and stages intermediate to attain the final
target.
3. DEVELOP : Forecast and means of achieving goal, i.e.,
activities.
4. EVALUATE : Organization’s resources – financial, managerial,
and operational to carry out activities and to determine what is
feasible and what is not.
5. DETERMINE : Alternatives – individual courses of action that
will allow to accomplish goal.
Meaning of Project Planning (Cont’d…)
6. TEST : For consistency with company’s policy.
7. CHOOSE : An alternative which is not only consistent with its
goals and concept but also one that can be accomplished with
the evaluated resources.
8. DECIDE : on a plan

 Planning is important because it provides direction, unifying

framework and performance standards.
 FEATURES OF PROJECT PLANNING
1. Process: It is a systematic mental process of doing things and
involves creative thinking and imagination.
2. Future/goal oriented: Planning is essentially thinking ahead
and preparing for future. It provides direction to the
organization.
3. Intellectual Process: Planning is a mental exercise involving
creative thinking and imagination. A manager can prepare
sound plans only when he has sound judgment, foresight and
vision.
 FEATURES OF PROJECT PLANNING
(Cont’d…)
4. Primary Function: Planning serves as basis for other
functions of management. It precedes all other functions of
management such as organizing, staffing, leading/directing
and controlling.
5. Aims at efficiency: Sound planning leads to accomplishment
of desired objectives at minimum possible cost. It helps in
optimization of resources.
6. Continuous: Planning is an ongoing process. Plans are
prepared for specific time period. At the end of each plan
period new plans are period.
 FUNCTIONS OF PROJECT PLANNING
1. Stating the objectives of the project to be undertaken.
2. Definition of work requirement.
3. Definition of resource needed such as funds, materials,
machines, human resources, facilities etc.
4. Determining the time frame of the overall project and also
scheduling its various stages.
5. To eliminate or minimize the risk and uncertainty.
6. It provides a basis for organizing the work on the project
and allocating responsibilities to individuals.
IMPORTANCE OF PROJECT PLANNING

1. Making Objective clear.

2. Helps in coordination.
3. Economy and efficiency in operation of resources.
4. Reduce risk and uncertainty.
5. Provide the basis of control.
6. Facilitates decision making.
7. Helps the organization at right path.
 PROJECT SCHEDULING
Projects are growing increasingly complex and costly;
therefore attention must be paid to the control of both time and
cost.
Improved management and scheduling of projects are
imperative to the success of any project, particularly large
scales ones.
Therefore it is necessary to schedule a project by using proper
techniques.
A schedule is defined as “time phased” plan for performing the
work necessary to complete the project.
 PROJECT SCHEDULING (Cont’d..)

A schedule is graphical representation which shows the starting

and completion dates of each activity and the sequential
relationship among the various activities.
Project scheduling refers to the process of laying out all the
actual activities of the project in the time order in which they
are to be performed. [2]
The schedule development process must often be inter-related
along with cost estimating prior to determination of the project
schedule. [4]
 PROJECT SCHEDULING (Cont’d…)
Scheduling is done in the following steps [7]
1. CALCULATE : Detailed control information
2. ASSIGN : Timings to events and activities.
3. GIVE: Consideration to the resources. The manager is generally
concerned with those resources whose availability is limited and
may impose a constraint on the project.
4. ALLOCATE: The resources
Therefore scheduling also can be said as allocation of resources
needed at each stages of production, along with the expected
completion time of each activity.
 WHY PROJECT SCHEDULE?

To predict project completion time and activity completion time.

To control financing and payment.

To serve as a record.

To support delay claim.

To manage changes and uncertainties

 METHODS OF PROJECT SCHEDULING
1. Bar chart / Gantt chart
• Linked Bar Chart
• Milestone Chart
2. Network Analysis
• Critical Path Method (CPM)
• Program Evaluation Review Technique (PERT)
• Precedence Diagramming Method (PDM)
3. Line of Balance Technique.
 BAR CHART/GANTT CHART
The oldest formal planning tool is the bar chart.
It is developed as a production control tool in 1917 by Henry
L. Gantt, an American mechanical engineer, hence also called
Gantt chart in his respect.
It is a graphical or pictorial representation showing the
various activities involved in a project.
The job/ activities are listed vertically as per their sequence
and each of them is allotted a horizontal strip, denoting the
estimated time to complete that particular activity as per
calendar days/months. [6]
Used as scheduling tool for small and medium size project.
 BAR CHART/GANTT CHART (Cont’d….)
Steps in Preparing Bar Chart
Breakdown the whole project into various activities or
into sub activities.
Develop a logical sequence of the activities and also find
out the activities that can be executed concurrently.
Decide the time duration for each activity for its
completion.
Finally by using a number of bars, as required, the
different activity to be performed are indicated on a
chart.
BAR CHART/GANTT CHART (Cont’d….)
S.N. Job/ Activity Calendar month
Jan Feb Mar Apr May June

1 Foundation
work
2 R.C.C. work

3 Door and
No defined relationship
windows work
4 Interior Finish

5 Sanitary works

6 Electrical works

7 Exterior finish

Fig: Bar Chart for a typical building project [6]

 BAR CHART/GANTT CHART (Cont’d….)
Advantages
The simple graphical form of bar chart results in relatively easy
general comprehension. [8]
It gives the pictorial representation of the status of a project at
any point of time, which is easily understood by the laymen.
The overall performance of the activity can be judged from chart
without going through the status or detailed report. [6]
 It is useful for reporting who are not involved in day to day
management.
Bar chart is used as the preliminary planning tool.
 BAR CHART/GANTT CHART (Cont’d….)
Limitation /Disadvantages
If too many activities are shown separately in a bar chart, then it
becomes messed up. Hence it is not suitable for large and
complicated project.
Lack of interrelationship and interdependencies among the
activities.
It cannot be used as control tool for large projects.
Each activity receives the consideration with no indication where
management attraction should be focused.
Critical activities are difficult to be identified and floats are
unknown.
 LINKED BAR CHART
One of the major limitation of bar chart is it does not show the
inter relationship and inter dependencies among the activities.
So a linked bar chart is introduced which is a modified form to
overcome some of the limitation of bar chart.
It shows the link between an activity and the preceding activities
which have to be completed before this activity can start and the
succeeding activities which are dependent on this activity.
Linked bar chart uses the links (arrow) to show the relationship
between activities.
 LINKED BAR CHART (Cont’d…)
Four Types of Link:
Type 1 Finish to Start (FS)
(Activity B cannot start until Activity A is finished)
A

B
Type 2 Start to Start (SS)
(Activity B should start when Activity A starts )
A

B
 LINKED BAR CHART (Cont’d…)
Type 3 Finish to Finish (FF)
(Activity B should be finished when Activity A finishes)
A

Type 4 Start to Finish (SF)

(Activity B should be finished when Activity A starts)
A

B
 MILESTONE CHART
It is a modification over the original bar chart.
When a particular activity represented by a bar on a bar chart is
very long, the details lack.
A Chart that graphically depicts key events along a timescale,
usually with triangles representing each event, is called milestone
chart.
Milestones provide a sense of accomplishment and show project
team how the work they’re doing contributes to the overarching
project objective.
It only identify the scheduled start or completion of major
deliverables and key external interfaces. [4]
MILESTONE CHART (Cont’d…)

Fig Source: [9]

 NETWORK ANALYSIS (Cont’d..)
For proper planning, scheduling and control of the activities
of a project, given their inter-relationships and constraints on
the availability of resources, network analysis have been
found quiet useful. [3]
A network is the combination of different activities of the
project. These activities are so connected that it defines the
whole project. [4]
Most commonly used network analysis techniques are:
Critical Path Method (CPM) and Program Evaluation and
Review Technique (PERT).
 NETWORK ANALYSIS (Cont’d..)
Steps for Network analysis;
Whole Project is divided or broken down into a series of
activities or work packages.
Activities are linked together according to their
technological sequence of operation or logical relationship
(preceding, succeeding and concurrent)
The time of completion or duration of each activity is
estimated
The network diagram is drawn and from diagram the
completion time of whole project is determined.
 CRITICAL PATH METHOD (CPM)
The technique of network based scheduling by critical path
method(CPM) is used for planning and scheduling projects
involving sequential operation. [5]
It is a deterministic approach and an activity oriented
network diagram showing the interdependencies and
relationship between the various activities.
CPM developed in the year 1957 by Morgan R. Walker of
DU Pont and James E. Kelly of Remington Rand for
preparing shutdown schedule of a chemical plant.
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
1. Activity(s):
An activity is a task or closely related group of tasks whose
performance contributes to the completion of the overall project.
[6]
Arrow in a network diagram represents activity and consume
resources like manpower, material, money, time etc.
 Examples: Excavation of foundation, construction of wall,
electrical wiring etc. A
Activity (i-j) 1
i j
B

A B C A and B are Concurrent Activity

1 2 3 4
A is the predecessor of B C is the Successor of B
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
2. Event/Node:
It is the point in time denoting completion of an activity and start
of an activity. It does not consume resources.

A B
i j k

Event Event Event

Tail/ Burst event Head/ Merge event Dual role event

 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
3. Duration (t)
Estimated time to perform a definite activity/task.
It is mentioned alongside with activity name.
The time unit for the project can be minutes, hours, work days,
calendar days, weeks or months.
Activity Duration = Work Quantity/ Production rate
Excavation (5)
1 2
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
4. Dummy Activity
A dummy activity is an imaginary (hypothetical) activity included
in a network.
Since it is not a real activity, it does not consume time, manpower,
material and other resources.
 It is included in a network to maintain the relationship between
activities appropriately. It is represented by dotted arrow.
Excavation Soling Brick Work
1 2 3 5

4 Dummy activity
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
Grammatical purpose:
It is used to prevent two arrows having common beginning and
end nodes for two or more activities.
 For example, consider the arrows of activities A and B; both
starts from node 1 and end at node 2.
Due to this an inconvenience results when the network is used for
computation, i.e., uniqueness in the identification is lost. This
inconvenience frequently leads to mistake. [7]
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
Logical purpose
 Dummies are also used to give logical clear representation in a
network having an activity common to two sets of operations
running parallel to each other.
Here, Activity D cannot be
started until Activity A is
completed. The inter
dependency or logical
relation between two
activities are clearly
known.
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
Graphical Representation of activities and events
1. Activity on Arrow (AOA) system
In this system, an activity is represented by an arrow with circles
at both ends drawn from left hand side to the right hand side.
The tail end of the arrow represents the start of an activity and
head of arrow represents completion of activity.

Excavation
1 2
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
2. Activity on Node (AON) system
In this system, activities are represented by nodes or circles.
Arrow only shows the dependence of activities on each other.
No dummy activity is required to represent the inter dependency
between succeeding and preceding activity.
It is also called precedence diagramming method (PDM)
ES EF ES EF

ACTIVITY A ACTIVITY B

LS LF LS LF
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
5. Earliest start time (EST)
 It is the earliest possible time that the activity can start.
6. Earliest finish time (EFT)
It is the earliest possible time for completion of an activity or
operation without delaying the project completion time.
It can be computed by adding activity duration by EST.

EFT (i-j) = EST (i-j) + ti-j

 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
7. Latest finish time (LFT)
It is the latest possible time that an activity can be finished based
on the logic and duration identified on the network without
extending the project duration. [8]
8. Latest start time (LST)
It is the latest possible time; an activity can be started without
delaying the project.

LST (i-j) = LFT (i-j) - ti-j

 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
9. Float / Slack
 The free time available to the activity is called float or slack.
(a) Total float (TF)
• It is the extra time available when the start or finish of an activity
can be delayed, without delaying the completion of the project. [5]
t(i-j)
EFT (i-j) = EST (i-j) + t (i-j)
TF TF
LFT (i-j) = LST (i-j) + t(i-j)
i j LFT (i-j) – EFT (i-j) = LST (i-j) – EST (i-j)
TF = LFT (i-j) – EFT (i-j) OR LST (i-j) – EST (i-j)
EST(i-j) LST(i-j) EFT(i-j) LFT(i-j)
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
(b) Free float (FF)
• It is the delay that can be permitted in an activity so that
succeeding activities in the path are not affected. [2]
• In other words, It is the extra time available when the activity is
delayed without delaying the early start time of succeeding
activity. FF
i j k

EST(i-j) EFT(i-j) EST(j-k)

FF = EST (j-k) – EFT (i-j)

 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
(c) Independent float (IF1)
• It is the spare time available for the activity, if preceding activity is
started as late as possible and succeeding activities are finished as
early as possible.
IF1= EST (j-k) – EFT (h-i)-ti-j
Also IF= FF (i-j)-Tail event slack
EFT (h-i) EST (j-k)

(d) Interfering Float (IF2)

• It is the name given to head event slack. It is the difference
between total float and free float.
IF2 = TF (i-j)- FF(i-j)
 CRITICAL PATH METHOD (CPM)
TERMINOLOGIES (Cont’d…)
10. Critical Path
In a network diagram, the activities are represented by arrows
and arrows flow from left to right.
In a network, there may be many paths starting from the initial
event and leading to the last event.
If the duration of all the activities that lie on particular paths is
added, it gives the duration of the path.
Each path in a network will have a different duration.
 Critical Path (Cont’d….)
The path that has the longest duration is called the critical path
and the activities lying on the critical path are critical activities.

In a network diagram, the path along which the project takes the
maximum time from start to finish is called critical path.

It is the longest path of the network and gives the total time
taken to complete the project. Any delay along this path delays
the project.
 Critical Path (Cont’d….)

Path Description Duration Remarks

1 1–2–3–5–6 4+2+3+4 =13 days
2 1–2–4–5–6 4+5+6+4 =19 days Longest/Critical
path
3 1–2–4–6 4+5+1 =10 days
 CHARACTERISTICS OF CRITICAL PATH
[2]
Critical path is the longest path (time wise) connecting the initial
and final events.
Critical activity may run through dummy activity/activities also.
The number of activities lying on critical path may be less than
the number of activities in other non critical activities.
It is possible that a network may have more than one critical path
i.e. if two or more paths have the same time duration which is
maximum, then all such paths will be critical paths.
 CHARACTERISTICS OF CRITICAL PATH
(Cont’d…..)
Super critical activity
When the total float of the activity is negative, then this activity is
called the super critical activity and demand very special attention
and action. [1]
Critical activity
When the total float of the activity is zero, then this activity is called
critical activity. Such activity permit no freedom of action and
demand normal action.
Sub critical activity
When the total float is positive, then the activity is known as sub
critical activity and permit freedom and demand normal attention.
 CALCULATION PROCEDURE OF CPM
Forward pass calculation
In the forward pass calculation, all activities in the
network are assumed to start as early as possible.
The calculation begins from the left to the right side of
the network.
When two or more activities merge into a event, the
largest value is taken as an earliest occurrence time of
that event.
Forward pass calculation gives the EST and EFT of each
activity.
 CALCULATION PROCEDURE OF CPM
(Cont’d….)
Backward pass calculation
In the backward pass calculation, all activities in the network are
assumed to start as late as possible.
The calculation begins from the right to the left side of the
network.
When two or more activity merges at a node, the smallest value is
taken as a latest occurrence time of that event.
Backward pass calculation gives the LST and LFT of each
activity.
 ADVANTAGES AND DISADVANTAGES
OF CPM
Advantages
1. Makes dependencies visible between the project activities.
2. Organizes large and complex projects, hence allowing a more
systematic approach to project planning and scheduling.
3. Enables the calculation of float or slack of each activity.
4. Enables the Project Manager to optimize efficiency
5. Provides opportunities to respond to the negative risk going over
schedule.
6. Encourages the Project Manager to reduce the project duration
by optimizing the critical path
 ADVANTAGES AND DISADVANTAGES
OF CPM (Cont’d..)
Disadvantages
CPM is not suitable for the project involving some uncertainties
like research and development project.
Reduced Attention to High-Float Tasks: When using the critical
path method, project managers focus on critical path tasks. For
large and complex projects, there’ll be thousands of activities and
dependency relationships. [9]
For large projects with thousands of activities, it may be difficult
to print the project network diagram.
The Critical Path Method does not account for resource and
resource allocation.
 PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) (Cont’d..)
It is a probabilistic approach for estimating the duration of an
activity and event oriented network diagram.
 PERT is used in the completely newly developed project such as
Research and design, space and aerospace industry where there
may not be record of past experiences in the particular field.
PERT system is preferred for those projects in which correct time
determination for various activities cannot be made.
PERT is a technique that statistically presents knowledge about
the activities and the uncertainty related with activities. [4]
 PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) (Cont’d..)
In research and development project, where there is some extent
of uncertainty, the exact estimation of time of completion of
various activity is difficult.
Therefore, PERT uses three time estimates for each activity with a
view to overcome uncertainty in time estimates.
(a) The most optimistic time (to)
(b) The most pessimistic time (tp)
(c) The most likely time (tm)
 PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) (Cont’d..)
(a) The most optimistic time (to)
 It is the shortest possible time in which an activity can be
completed under ideal conditions. [5]
This time assumes that everything will go according to plan and
with a minimal amount of difficulties. [3]
(b) The most pessimistic time (tp)
 It is the maximum possible time it would take to complete an
activity under worst conditions.
In arriving at the pessimistic time, it is assumed that everything is
unfavorable for completing the activity in time and every possible
delay and difficult situation is encountered. E.g. Force Majeure
 PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) (Cont’d..)
(c) The most likely time (tm)
 It is also called the most reliable time or the most probable time.
The most optimistic and pessimistic times are two ends of a
spectrum denoting the range of variation in the activity duration.
[1]
Somewhere in between the optimistic and pessimistic time, there
lies the most probable time.
It is the time in which an activity can be completed under
normal conditions which is neither favorable nor non favorable.
PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) (Cont’d..)

Fig Source: [2]

 PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) (Cont’d..)
𝒕𝒐 + 𝟒𝒕𝒎 + 𝒕𝒑
The formula, 𝒕 =
𝒆
𝟔 is a linear approximation of Beta
distribution whose accuracy is considered reasonably sufficient. [2]
After having arrived at the expected time (te) for each activity, the
critical path is found out by making forward pass computation and
backward pass computation as in CPM.
 The variability of each activity’s time duration is then measured by
calculating the standard deviation (σ) and variance (σ2) of each activity:
𝒕𝒑 −𝒕𝟎 𝟐
Variance (σ2) =
𝟔
𝒕𝒑 −𝒕𝟎
Standard deviation (σ) =
𝟔
DIFFERENCE BETWEEN CPM AND PERT
CPM PERT
1. Activity oriented network 1. Event oriented network
diagram diagram
2. Useful of cost evaluation 2. Useful for time evaluation
3. Uses Only a single time 3. Uses 3-time estimates for
estimates for activities. activities.
4. Includes relationship 4. PERT analysis doesn’t include
between activities time and cost. costs.
5. Doesn’t uses statistical tools 5. It uses statistical tools.
6. Used for repetitive work 6. Used for completely new
such as construction, repair, project involved with factor
maintenance etc. of uncertainty such as R&D
project.
 PROJECT SCHEDULING WITH LIMITED
RESOURCES
A resource is a physical variable, such as men, materials,
machines, space and money that is required for completing
various activities of a project.
The network analysis (CPM and PERT) is valid only if the
availability of resources is liberal or unlimited.
In a real life project, it is a very common experience that the
resources are frequently in a limited supply causing delay in
completion of project. [1]
PROJECT SCHEDULING WITH LIMITED
RESOURCES (Cont’d…)
In some cases, particular material or some machinery may not be
available in the middle of the project due to some reasons beyond
the control of project manager.
Availability of skilled and unskilled labor and the equipment may
be restricted as well as availability of fund may be restricted.
Usually activities of project are scheduled in such a way that the
demand of various resources is more or less uniform all along the
project duration. [4]
This is not always the case and the project has to be rescheduled
considering the constraints of resources which is project
scheduling with limited resources.
 PROJECT SCHEDULING WITH LIMITED
RESOURCES (Cont’d…)
Following constraints are imposed due to the limited resources:
Starting of an activity is delayed.
Non critical job may be critical due to delay in starting.
More than one type of resource may be scarce at a time.
Resource may be scarce in the middle of performance of a
particular job etc.
These above mentioned constraints can be overcome by the
proper allocation of the resources.
 RESOURCE ALLOCATION
Resource allocation in project
management involves identifying and assigning the
best available best-fit resources to every project for a
specific period of time.[6]
It also monitors the resource’s workload throughout the project
life cycle and reassigns them if necessary.
Resource aggregation, or resource loading, is simply the
summation, on a period-by-period basis, of the resources required
to complete all activities based on the resource allocation carried
out in the previous stage.
 RESOURCE ALLOCATION (Cont’d…)
The requirements of various resources for a given network of
the project are determined using the early start and late start
schedule of each activity.
The resource usage profile are usually shown graphically as a
histogram.
Such aggregation may be done on an hourly, daily, or weekly
basis, depending on the time unit used to allocate resources.
Two methods are commonly used for the resource allocation:
(a) Resource Levelling
(b) Resource Smoothing
 RESOURCE ALLOCATION (Cont’d…)
(a) Resource Levelling
It is an attempt to reduce peak resources requirement and
smooth out period to period assignments within the
constraints of project duration.
A project manager often comes across mismatch between the
availability of resources and the requirement of resources.
This means that there are surplus resources available on
someday and there is deficit of resource on some other days.
[2]
Resource leveling is the process that ensures resource demand
does not exceed resource availability.
 RESOURCE ALLOCATION (Cont’d…)
(b) Resource Smoothing
There is no constraint on project completion time. There is only
constraint of resource availability.
However it doesn’t mean that the project duration can be
stretched too far. Increase in project duration will lead to indirect
expenses (overheads).
Hence the project duration can be extended to satisfy resource
constraint.
 It shall be done in such a way that the project duration is
extended to the minimum possible extent and at the same time
satisfying the resource constraints. [2]
Recalling the Project Life Cycle

Implement Termination
Initiation Planning Design
ation

Need Feasibility Detailed Monitoring Handover

Assessment Study Design and
Report Controlling

Finally The PROJECT BEGINS!!!!

 PROJECT MONITORING AND CONROLLING
(Cont’d….)
Monitoring
Monitoring simply means to maintain a constant check on the
progress of the project activities systematically.
It involves gathering information on the progress of the
project to review and analyse the project implementation.
Monitoring means to make sure sufficient intelligence is
gained on the status of the project so that an accurate an
timely evaluation can be conducted. [2]
It aims to ensure that project inputs, schedules, outputs and
other actions are proceeding according to the plan.
 PROJECT MONITORING AND CONROLLING
(Cont’d….)
Evaluation
Evaluation simply means to appraise or set value. It is the
appraisal of how the project work is going on.
Evaluation is an objective and systematic judgmental process
for determining relevance, efficiency effectiveness and impact of
project performance. [3]
It is done to improve project implementation and to improve
future project planning and decision making.
Monitoring is usually an ongoing activity throughout the life of
the project whereas evaluation is periodic.
 PROJECT MONITORING AND CONROLLING
(Cont’d….)
Types of Evaluation
a) On-going: It is conducted during the implementation phase
and its purpose is to correct deficiencies as they occur to
improve project performance.
b) Mid-term: It is carried out mid way during implementation
and its purpose is to improve implementation.
c) Terminal: It is conducted after project completion and it
provides lessons for future project planning.
d) Ex post: It is conducted some years after project completion
to evaluate the impact of the project.
 PROJECT MONITORING AND CONROLLING
(Cont’d….)
Controlling
Controlling is the management function of comparing the
actual achievements with the planned ones at every stage and
taking necessary action, if required, to ensure the attainment
of the planned goals.
Controlling ensures that right things are done in right manner
at right time. [4]
The main purpose of controlling is to regulate results by
changing activities and to conserve the project’s resources. [5]
 PROJECT MONITORING AND CONROLLING
(Cont’d….)
Controlling includes three step processes – measuring, evaluating
and correcting. [6] Measuring: Determining through formal and
informal reports the degree to which the
progress towards objective is being made
Evaluating: Determining cause of and possible
ways to act upon significant deviations from
planned performances
Correcting: Taking control action to correct an
unfavorable trends or to take advantage of
an unusually favorable trend
Fig: Project Controlling
 PROJECT MONITORING AND CONROLLING
(Cont’d….)
Areas of control
While managing a project three important resource
parameters - quality (performances), cost, and progress (time)
- need control. So the areas of control are:
Progress (time) control (according to schedule)
Cost control, (according to allocated budget) and
Quality (performance) control (according to specification)
Management must control these three resource parameters –
progress (time) cost, and quality (performances),) – in an
integrated manner, not in isolation.
 Earned Value Analysis
Earned Value Analysis (EVA) is a method that allows the project
manager to measure the amount of work actually performed on
a project beyond the basic review of cost and schedule reports.
[4]
“EVA is a standard method of measuring a project’s progress
(performance) at any given point in time, forecasting its
completion date and final cost and analyzing variances in the
schedule and budget as the project proceeds”.
It compares the planned amount of work with what has actually
been completed, to determine if the cost, schedule and work
accomplished are progressing in accordance with the plan.
 Earned Value Analysis (Cont’d….)
EVA compares three pieces of Information
1. Budgeted Cost of Work Scheduled (BCWS) / Planned Value
 It is the budgeted amount of cost of the work scheduled to be
accomplished in a given time period (including support and
allocated overhead)
2. Actual cost of work performed (ACWP) /Actual Value
 It is the amount actually expended in completing the particular
work accomplished within a given time period.
3. Budgeted cost of work performed (BCWP)/Earned value
 The value, in terms of your baseline budget, of the work
accomplished by now (in dollars or hours), called the Earned
Value.
Earned Value Analysis (Cont’d….)

Source: [5]
 Earned Value Analysis (Cont’d….)
Some Derived Metrics in EVA (parameters in EVA)
1. Variances Formula Interpretation
Cost CV =  If CV is +ve, cost under run (actual budget expense is
Variance BCWP - ACWP less than planned)
 If CV is -ve, cost overrun (actual budget expense is
greater than planned)
 If CV is 0 No cost variance (actual expense is equal to
planned)
Schedule SV =  If SV is +ve, Schedule under run (actual schedule is
Variance BCWP - BCWS ahead of planned)
 If SV is -ve, Schedule overrun (actual schedule is
behind of planned)
 If SV is 0 No Schedule variance (actual Schedule is
equal to planned)
 Earned Value Analysis (Cont’d….)
2. Variances expressed in percentage
CV % Over budget or under budget expresses in % , by what %
does the cost under run or over run

SV % Behind or Ahead Schedule expressed in % , by what %

does the Schedule under run or over run

3. Indices
Cost CPI =  If CPI ≥ 1, Better Performance for Cost, less
performance BCWP / ACWP budget
index  If CPI < 1, Poor Performance for Cost,
more budget
Schedule SPI =  If SPI ≥ 1, Better Performance in Schedule,
Performance BCWP / BCWS ahead of schedule
Index  If SPI < 1, Poor Performance in Schedule,
behind of schedule
 Earned Value Analysis (Cont’d….)

4. Trends & Fore Cast

Estimate at EAC = Total project Cost / CPI
Completion

Schedule at SAC = Original project duration / SPI

Completion
 OBJECTIVE QUESTIONS
1. Which from the following represents the correct project cycle?
(a) Planning→Initiating→Executing→Closing
(b) Planning→Executing→Initiating→Closing
(c) Initiating→Planning→Executing→Closing
(d) Initiating→Executing→Planning→Closing
2. Five dimensions that must be managed on a project
a) Constraint, Quality, Cost, Schedule, Staff
b) Features, Quality, Cost, Schedule, Staff
c) Features, priority, Cost, Schedule, Staff
d) Features, Quality, Cost, Schedule, customer
3. Which one of the following is not the characteristics of a project?
(a) unique (b) repetitive
(c) specific task not routinely performed (d) Temporary.

4. Which of the following activity is not carried out in the initiation

phase of the project?
(a) Conceptual study (b) feasibility study (c) market study (d) contract
study.
5. Select the correct statement
(a) PERT is applicable to construction projects only
(b) PERT is useful for deterministic activities
(c) PERT is applicable to large projects only
(d) PERT is useful for R/D projects.
6. A dummy activity
(a) Has neither head even or tail event
(b) Doesn’t consume neither time nor resources
(c) Reduces computation work in network analysis
(d) Can be inserted anywhere in a network.
7. CPM network is
(a) Resource oriented (b) Event oriented (c) Slack oriented (d) Activity
oriented
8. In PERT analysis the probability of completion by a due date follows
(a) Binomial distribution (b) Beta distribution (c) Normal distribution (d)
Poissons distribution
9. Standard deviation is equal to
(a) (Variance)1/2 (b) (Variance)2 (c) (Variance)6 (d) (Variance)1/6
10. The time by which the start or finish of an activity can be
delayed without delaying the EST of the succeeding activity is called
(a) Total Float (b) Free Float (c) Independent Float (d) Interfering
Float

11. When two or more activities merge into a node than the smallest
value should be taken as the latest occurrence time of that
particular node in
a) Forward pass calculation
b) Backward pass calculation
c) Middle pass calculation
d) Both (a) and (b)
12. If the duration and the earliest finish time of preceding activity is 2 days
and 5 days respectively and the earliest start time of the succeeding activity
is 7 days then the free float of preceding activity is
(a) -2 (b) 2 (c) -3 (d) 3

13. If the planned value, actual value and the earned value of an activity is Rs
7,000, Rs. 8000 and Rs. 6000 respectively, then the cost variance will be
a) - 2000 b) 2000 c) -1000 d) 1000

14. If the optimistic time is 2 days, pessimistic time is 10 days and the most
likely time is 3 days, then the most expected time of an activity will be
a) 2 days
b) 3 days
c) 4 days
d) 5 days