GURU GOVIND SINGH
INDRAPRASTHA
UNIVERSITY, DELHI
BBA SEM VI – 302 PROJECT MANAGEMENT
B.COM SEM VI – 302 PROJECT MANAGEMENT
UNIT I
INTRODUCTION PROJECT LIFE CYCLE PROJECT ORGANISATIONAL
STRUCTURE
Projects Phases of Project Life Cycle Forms of organizational
Project Management Classification of Project structure – Functional
Objectives and importance of Organization, Project
PM Organization, Matrix
Tools and Techniques for PM Organization
Project Team
Roles and Responsibilities
Project Manager
Determinants of Project Success
TOOLS AND ETCHNIQUES OF PM
• https://www.proofhub.com/articles/project-management-tools-and-
techniques
CLASSIFICATION OF PROJECTS
• https://www.sinnaps.com/en/project-management-blog/types-of-pro
ject
• 17 Types of Projects: Classification in Project Management | Sinnaps
UNIT II
Technical Analysis Market Analysis Network Technique
Factors considered in technical Conduct of Market Survey Network Analysis
Analysis Characterization of Market PERT – Project Evaluation and
Factors Affecting selection of Market Planning (Introductory Review Technique
location Aspects Only) CPM – Critical Path Method
Need for Considering Identifying Critical Path
Alternatives Probability of completing
Technology Selection project within give time,
Sources of Technology Project Cost and Analysis
Appropriate Technology Project Crashing (Simple
Problems Only)
Technical Analysis
• BBA-Sem. VI-Project Management-Unit 2-Technical analysis.pdf (dspm
uranchi.ac.in)
• Market Analysis | Project Management | Business, Management | Tex
tbook | Book (icmrindia.org)
• https://www.icmrindia.org/courseware/Project%20Management/Mar
ket%20Analysis.htm
• Project Planning, Controlling and Scheduling
• Planning : 1. Setting goals.2. Defining the project.3. Tying needs into timed project activities.4.
Organizing the team.
• Project Scheduling:1. Tying resources to specific activities.2. Relating activities to each other.3.
Updating and revising on regular basis.
• Before Project
• Project Controlling:1. Monitoring resources, costs, quality and budgets.2. Revising and changing
plans.3. Shifting resources to meet demands.
• During Project
• Project Management Models
PERT
• PERT/Cost
• Critical Path Method (CPM)
PERT & CPM
PERT & CPM.docx
https://www.projectmanager.com/pert-chart
Six Steps of PERT/CPM
• Define the project and all of its significant activities or tasks
• Develop the relationships among the activities and decide which activities must precede others
• Draw the network connecting all of the activities
• Assign time and/or cost estimates to each activity
• Compute the longest time path through the network; this is called the critical path
• Use the network to help plan, schedule, monitor, and control the project
• The critical path is important since any delay in these activities can delay the completion of the
project
Drawing the PERT/CPM Network
There are two common techniques for drawing PERT networks
• Activity-on-node (AON) where the nodes represent activities
• Activity-on-arc (AOA) where the arcs are used to represent the activities
• The AON approach is easier and more commonly found in software packages
• One node represents the start of the project, one node for the end of the project, and nodes for each of
the activities
• The arcs are used to show the predecessors for each activity
Activity Times The time estimates in PERT are
Optimistic time (a) = time an activity will take if everything goes as well as possible.
There should be only a small probability (say, 1/100) of this occurring.
Pessimistic time (b) = time an activity would take assuming very unfavorable conditions.
There should also be only a small probability that the activity will really take this long.
Most likely time (m) = most realistic time estimate to complete the activity
Video
• https://www.youtube.com/watch?v=1bmaDMSQe04
Terms Related to PERT Charts
• These concepts will allow you to understand the Program Evaluation and Review Technique and the anatomy of a PERT chart:
• Nodes: These are the symbols used to visualize milestones and project tasks. They can be represented by circles or triangles.
• Arrows: Visual representation of the sequence of a task, diverging arrows indicate tasks that can be completed at the same time. They
can be solid or dotted, depending on the nature of the sequence.
• PERT Event: The start or end of a task.
• Slack: The amount of time a task can be delayed without causing an overall delay to the project or other tasks, also known as float.
• Critical Path: The critical path is the longest task sequence of a project. PERT charts are used to determine the critical path of a project to
estimate its duration.
• Critical Path Activity: An activity with no slack.
• Critical Path Method: The critical path method (CPM) is a project planning and scheduling technique used to visualize task dependencies
and estimate the duration of projects.
• Lead Time: How much time you should complete a task or activity without impacting the following ones.
• Lag Time: The earliest time in which a task can follow another.
• Fast Tracking: Fast tracking is a schedule compression technique that consists in executing tasks or activities at the same time.
• Crashing Critical Path: Shortening the time of a task. This is the longest path from the starting milestone to the finish. If you experience a
delay on the critical path, it will impact the entire project.
• Network Diagram: A type of diagram used for project management charts. The PERT chart network diagram is known as an activity on
arrow (AoA) network diagram.
• Predecessor: An activity that precedes another, and must finish before its successor can start.
IDENTIFYING CRITICAL PATH
• Critical Path – the sequential activities from start to the end of a project
• Projects can have one or more critical paths
• Delay in one pf the activity delays the project deliverable – leading to project acceleration or re
sequencing to achieve dealine
• Mathematical calculations
• 1950s – JV betwn Remington Rand Corporation & DuPont Corporation
• Useful in managing plant maintenance projects, in projects where there are interdependent activities
• In this method critical activities of a program/ project are identified which have direct impact on the
completion date of the project.
• Identify all possible paths through the diagram, and add up all tasks' duration to calculate the time to
complete each path. The path that has the longest total duration is your critical path.
• You may be able to shorten the overall project timeline by compressing a task on the critical path. For
example, task number four, installing the plumbing, is on the critical path. You can shorten that task by
hiring another plumber or by having the scheduled plumber work overtime if you have the budget for it.
• PERT is that technique of project management which is used to manage uncertain (i.e., time is not known)
activities of any project. CPM is that technique of project management which is used to manage only
certain (i.e., time is known) activities of any project.
• The formula for calculating the total float for a task is: LFT at end of task – duration of task – EST at start
of task.
• (EST)Early start Time is the earliest time the activity can begin. • (LST)Late start Time is the latest time
the activity can begin and still allow the project to be completed on time. • (EFT) Early finish Time is the
earliest time the activity can end.
• The slack of an activity can be calculated as the difference between its latest start and earliest start
time, or alternatively, as the difference between its latest and earliest finishing time.
• Event slack is defined as the difference between the latest event and earliest event times. Slack time is
the amount of time a task can be delayed before the project finish date is delayed. Thus, the slack is the
difference between event times denoting the range within which an event time can vary. Slack = TL - TE.
“Critical Path (CP) is defined as the longest estimated sequence of interdependent activities that should be
accomplished on time to ensure completion of the project on due-date. The critical path activities are
performed under the “predecessor-successor” relationship, so that any next activity cannot be started until
its predecessor is complete.”
In this critical path Excel spreadsheet, we have three possible sequences that carry
out the project from start to completion. As a project manager, first you need to
calculate the overall duration of each sequence and then compare the durations
against each other. The activities that define the longest overall duration will compose
the critical path (in our example, it is path “C1-C2-C3” with duration “30 days”).
Your next step in analyzing critical path method is to create Gantt Chart to visualizes CP
on calendar. Gantt Chart will help you design a project schedule and agree on activity
durations and float time. Both MS Project and MS Excel can help you with designing
Gantt Chart.
KEY STPES IN CPM
• To find the critical path, need to determine the following quantities for each activity in the
network
• Earliest start time (ES): the earliest time an activity can begin without violation of immediate
predecessor requirements
• Earliest finish time (EF): the earliest time at which an activity can end
• Latest start time (LS): the latest time an activity can begin without delaying the entire project
• Latest finish time (LF): the latest time an activity can end without delaying the entire project
PROBABILITY OF COMPLETING PROJECT WITHIN
THE TIME
• https://testbook.com/objective-questions/mcq-on-probability-of-com
pletion-of-project-within-a-sche-
• Expected project completion date = 10 + 20 + 10 + 15 + 7 +
6.67 = 68.67 days. It means that, there is a 50% chance that
the entire project will be completed in less than the expected
68.67 days and a 50% chance that it will exceed 68.67 days.
From the standard normal table, we find the probability 0.6480.
• Probability of Completion of Project Within a Scheduled Time MCQ Question 6 Detailed
Solution. Note: Probability of project completion in critical time is always 50%.
• Probability of Project Completion
The standard deviation is just the square root of the variance, so We assume activity times are
independent and total project completion time is normally distributed
• Probability of Project Completion
The project’s expected completion date is 15 weeks.Assume that the total project completion
time follows a normal probability distribution
• There is a 50% chance of completing the entire project in less than 15 weeks and a 50% chance it
will exceed 15 weeks
• Standard Deviation = 1.76 Weeks15 Weeks(Expected Completion Time)
Project Crashing
• Projects will sometimes have deadlines that are impossible to meet using normal procedures
• By using exceptional methods it may be possible to finish the project in less time than normally
required. However, this usually increases the cost of the project
• Reducing a project’s completion time is called crashing
• Crashing a project starts with using the normal time to create the critical path
• The normal cost is the cost for completing the activity using normal procedures
• If the project will not meet the required deadline, extraordinary measures must be taken
• The crash time is the shortest possible activity time and will require additional resources
• The crash cost is the price of completing the activity in the earlier-than-normal time
Steps to Project Crashing
1: Analyze the critical path.
1. Step 2: Identify all tasks that can be
shortened with additional
resources.
2. Step 3: Calculate for each task:
trade-off, gain, time reduction.
3. Step 4: Choose the least costly
approach.
4. Step 5: Provide a crashing budget
and updated project baselines to the
sponsor.
• Crash with confidence.docx
PROJECT COST ANALYSIS
• Using project cost analysis can help you decide whether to pursue a project based on
profitability and generated revenue. Learning how to calculate a project cost analysis can help
you determine if a project is worth pursuing financially.
What is a project cost analysis?
• A project cost analysis is a process that professionals can use to determine the value of a
project's costs and benefits, which highlights if a project is feasible. It begins with a company
determining a set price of revenue they want to generate from the project, then creating a list of
all the project expenses, combined with the benefits that a company receives from the project
once it's finished.
• After the list, the company adds together the total value of their costs and benefits, then
subtracts the total cost from the benefits, which shows if a project is profitable and meets their
set price. For example, if a project cost analysis shows that a project's materials cost is higher
than the profit that a company makes off the project, then they may decide against pursuing the
project.
A list of professionals who may use project cost analysis:
• Project managers
• Finance managers
• Accountants
• Project developers
• Project assistant
Benefits of project cost analysis
• Minimizes financial risk: Project cost analysis shows if there's a possibility of the project
exceeding the budget and having low profitability.
• Determines project feasibility: Using project cost analysis shows if a project is feasible according
to your budget and the project's profitability.
• Helps prioritize projects: If you do a project cost analysis for several projects, you can determine
which projects to pursue based on which projects show the highest profitability and lowest
financial risk.
• Get support from stakeholders: If a project cost analysis shows that a project is feasible and
profitable, it may help you to earn support from stakeholders.
• Project Cost Analysis.docx
