Chapter 1 #

What is a Project?
• A project is “a unique aim to produce a set of deliverables within clearly specified time, cost and quality constraints”.

• Projects are different from standard business operational activities as they:

▪ Are unique in nature. They do not involve repetitive processes. Every project undertaken is different from the last, whereas operational activities

often involve undertaking repetitive (identical) processes.

▪ Have a defined timescale. Projects have a clearly specified start and end date within which the deliverables must be produced to meet a specified

customer requirement.

▪ Have an approved budget. Projects are allocated a level of financial expenditure within which the deliverables must be produced to meet a

specified customer requirement.

▪ Have limited resources. At the start of a project an agreed amount of labor, equipment and materials is allocated to the project.

▪ Involve an element of risk. Projects entail a level of uncertainty and therefore carry business risk

▪ Achieve beneficial change. The purpose of a project, typically, is to improve an organization through the implementation of business change.
• PMI (Project Management Institute) defines a project as “a temporary aim undertaken
to produce a unique product, service, or result” (PMBOK ® Guide, Project Management
Institute, 2008, p. 5).

• This means that a project is done only one time. If it is repetitive, it’s not a project. A
project should have definite starting and ending points (time), a budget (cost), a clearly
defined scope—or magnitude—of work to be done, and specific performance
requirements that must be met. “Should” because seldom does a project conform to
the desired definition. These constraints on a project, are referred to as the PCTS
targets.
The relationship among the PCTS constraints can be written as follows:
C = f(P, T, S)
In words, this says, “Cost is a function of Performance, Time, and
Scope.” Graphically, it can be represented as a triangle, in which P, C,
and T are the sides and S is the area.

P
P C
C
S S

T
T
• Dr. J. M. Juran, the quality guru, also defines a project as a problem scheduled
for solution. This definition reminds us that every project is conducted to solve
some kind of problem for a company.

However, It must be caution that the word “problem” typically has a negative
meaning, and projects deal with both positive and negative kinds of problems.

For example, developing a new product is a problem, but a positive one, while
an environmental cleanup project deals with a negative kind of problem.
What is Project Management?

• The PMBOK® Guide definition of project management is “application of knowledge,

skills, tools, and techniques to project activities to meet the project requirements”.

• Project management is accomplished through the application and integration of

logically grouped project management processes composed of the 5 Process
Groups: initiating, planning, executing, monitoring and controlling, and closing”.

• “Project Management is the skills, tools and management processes required to

undertake a project successfully”.
Project Management comprises:
▪ A set of skills. Specialist knowledge, skills and experience are required to reduce the level of
risk within a project and thereby enhance its likelihood of success.
▪ A suite of tools. Various types of tools are used by project managers to improve their chances
of success.
Examples include document templates, registers, planning software, modeling software, audit
checklists and review forms
▪ A series of processes. Various management techniques and processes are required to monitor
and control time, cost, quality and scope on projects.
Examples include time management, cost management, quality management, change
management, risk management and issue management.
The Project Lifecycle consists of four
phases
• Project Initiation
• Project Planning
• Project Execution
• Project Closure
Project Initiation
• The Initiation Phase is the first phase in the project. In this phase a business problem (or
opportunity) is identified and a business case which provides various solution options is
defined.
• A feasibility study is then conducted to investigate the likelihood of each solution option
addressing the business problem and a final recommended solution is put forward. Once
the recommended solution is approved, a project is initiated to deliver the approved
solution.
• A ‘Project Charter’ is completed, which outlines the objectives, scope and structure of the
new project, and a Project Manager is appointed. The Project Manager begins recruiting a
project team and establishes a Project Office environment.
• Approval is then sought to move into the detailed planning phase.
Project Planning
• WHAT IS PLANNING?

• Planning is the systematic process of establishing a need and then working out the best
way to meet the need, within a strategic framework that enables you to identify
priorities and determines your operational principles.

• Planning means thinking about the future so that you can do something about it now.
This doesn’t necessarily mean that everything will go according to plan. It probably
won’t. But if you have planned properly, your ability to adjust, without compromising
your overall purpose, will be that much greater.
 DIFFERENT KINDS OF PLANNING
• “Planning” is a big term that includes a number of different kinds of activities. It is possible to plan at the
strategic level, at the activity or operation level, to plan for an organisation, or for a programme or for a
project. The two main kinds of planning are:
• Strategic planning and business/action/operational planning
Strategic planning/strategic framework
• Strategic planning, or developing a strategic framework, is about the bigger picture.
• Organisations often get so caught up in everyday problems that they do not think about the big picture. They
are too busy planning “to do things”, something that falls under business/action/operational planning.
• It is through strategic planning that an organisation develops a strategic framework. This framework helps the
organisation determine its priorities and the strategies that are likely to help it achieve its vision of the future.
• A strategy is an overall approach, based on an understanding of the broader context in which you function,
your own strengths and weaknesses, and the problem you are attempting to address.
• A strategy gives you a framework within which to work, it clarifies what you are trying to achieve and the
approach you intend to use. It does not spell out specific activities.
Where do you go with strategic planning?
• Strategic planning enables a development organisation to:

• Analyze the situation or context in which it is operating (social, political and economic) so
that it understands the context and is able to formulate a vision.
• Identify the problem or problems within the situation that the organisation believes it is well-
placed to address.
• Reflect on its value system in order to create parameters (a frame) for its activities. To set
goals for itself.
• Formulate a vision and mission statement based on its problem analysis and identification.
• Analyze its strengths and weaknesses in addressing the identified problem (a SWOT analysis
for a method).
• Identify opportunities and threats in the environment that may affect its work (both a SWOT
Analysis and a PEST Analysis)
• Priorities what it needs to do.
• Review strategic options for achieving its goals and select the most appropriate.
Project Execution
• This phase involves the execution of each activity and task listed in
the Project Plan. While the activities and tasks are being executed, a
series of management processes are undertaken to monitor and
control the deliverables being output by the project.
• This includes the identification of changes, risks and issues, there
view of deliverable quality and the measurement of each deliverable
being produced against the acceptance criteria.
• Once all of the deliverables have been produced and the customer
has accepted the final solution, the project is ready for closure.
Project Closure
• Project Closure involves releasing the final deliverables to the
customer, handing over project documentation, terminating supplier
contracts, releasing project resources and communicating the closure
of the project to all stakeholders. The last remaining step is to
undertake a Post Implementation Review to quantify the overall
success of the project and list any lessons learnt for future projects.
Chapter 2 #
Project Leadership
• Vance Packard, in his book The Pyramid Climbers. He define
leadership as, “the art of getting others to want to do something that
you believe should be done”.
• Leading a project is not the same as leading a department. A project
by definition is unique; it has never been done before. As a result, the
end product and the process for producing it are never fully specified
in advance. Therefore, the project leader lives in an environment of
constant uncertainty.
Planning
• Planning is quite simply answering questions shown in the Figure.
They may be called the “who, what, when, why, how much, how
long?”.

• Strategy, Tactics, and Logistics

Items that make up the project plan:
• Problem statement.
• Project mission statement.
• Project objectives.
• Project work requirements, including a list of all deliverables, such as
reports, hardware, software, and so on. It is a good idea to have a
deliverable at each major project milestone so that progress can be
measured more easily.
• Exit criteria. Each milestone should have criteria established that will be
used to determine whether the preceding phase of work is actually
finished. If no deliverable is provided at a milestone, exit criteria become
very important.
• End-item specifications to be met. This means engineering specifications,
architectural specs, building codes, government regulations, and so on
• Work breakdown structure (WBS). This is an identification of all of the
tasks that must be performed in order to achieve project objectives. A
WBS is also a good graphic portrayal of project scope.
• Schedules (both milestone and working schedules should be
provided).
• Required resources (people, equipment, materials, and facilities).
These must be specified in conjunction with the schedule.
• Control system.
• Major contributors. Use a linear responsibility chart.
• Risk areas with contingencies when possible.
Project Planning Steps
• The basic planning steps are as follows.
Define the problem to be solved by the project.
Develop a mission statement, followed by statements of major objectives.
Develop a project strategy that will meet all project objectives.
Write a scope statement to define project boundaries (what will and will not be done).
Develop a Work Breakdown Structure (WBS).
Using the WBS, estimate activity durations, resource requirements, and costs (as
appropriate for your environment).
Prepare the project master schedule and budget.
Decide on the project organization structure—whether matrix or hierarchical (if you are
free to choose).
Create the project plan.
Get the plan signed off by all project stakeholders.
Developing a Mission, Vision, Goals, and
Objectives for the Project
• Before a project team does any work, it should spend time ensuring
that it has a shared understanding of where it is going. The terms
used to define that destination are “mission,” “vision,” “goals,” and
“objectives.” And it is at this very early stage that projects tend to fail,
because everyone takes for granted that “we all know what the
mission is.”
• It is always said that the mission is to achieve the vision.
The mission of the project can be written by answering two questions:
1. What are we going to do?
2. For whom are we going to do it?
Developing Project Objectives
Objectives are much more specific than the mission statement itself and define
results that must be achieved in order for the overall mission to be
accomplished.
Also, an objective defines the desired end result.
An objective must be SMART, each letter standing for a condition as follows:
Specific
Measurable
Attainable
Realistic
Time limited
• In setting objectives and in monitoring progress toward those
objectives:
1. What is our desired outcome? This is called the outcome frame. It
helps keep you focused on the result you are trying to achieve,
rather than on the effort being expended to get there.
2. How will we know when we achieve it? I call this the evidence
question. This question is very useful for establishing exit criteria for
objectives that cannot be quantified.
Chapter 3 #
Knowledge Areas

• The PMBOK® Guide identifies nine knowledge areas that project

managers should be familiar with in order to be considered professionals.
Project Integration Management
Project integration management ensures that the project is properly
planned, executed, and controlled, including the exercise of formal
project change control. As the term implies, every activity must be
coordinated or integrated with every other one in order to achieve
the desired project outcomes.
Project Scope Management
 Changes to project scope are often the factors that kill a project.
Project scope management includes authorizing the job, developing a
scope statement that will define the boundaries of the project,
subdividing the work into manageable components with deliverables,
verifying that the amount of work planned has been achieved, and
specifying scope change control procedures.
Project Time Management
 Project time management specifically refers to developing a schedule
that can be met, then controlling work to ensure that this happens!
It’s that simple. Because everyone refers to this as scheduling.
Project Cost Management
Project cost management involves estimating the cost of resources,
including people, equipment, materials, and such things as travel and
other support details. After this is done, costs are budgeted and
tracked to keep the project within that budget.
Project Quality Management
It is not very helpful to complete a project on time, only to discover
that the thing delivered won’t work properly! Project quality
management includes both quality assurance (planning to meet
quality requirements) and quality control (steps taken to monitor
results to see if they conform to requirements).
Project Human Resources
It is often overlooked in projects, it involves identifying the people
needed to do the job; defining their roles, responsibilities, and
reporting relationships; acquiring those people; and then managing
them as the project is executed.
Project Communications Management
As the title implies, project communications management involves
planning, executing, and controlling the acquisition and dissemination
of all information relevant to the needs of all project stakeholders.
This information might include project status, accomplishments, and
events that may affect other stakeholders or projects.
Project Risk Management
Is the systematic process of identifying, quantifying, analyzing, and
responding to project risk. It includes maximizing the probability and
consequences of positive events and minimizing the probability and
consequences of adverse events to project objectives.
Project Procurement Management
Procurement (collecting) of necessary goods and services for the
project is the logistics aspect of managing a job. Project procurement
management involves deciding what must be acquired, issuing
requests for offers or quotations, selecting vendors, administering
contracts, and closing them when the job is finished.
Chapter 4 #
Organizational structure
• Organizational structure is the framework of the relations on jobs,
systems, operating process, people and groups making efforts to
achieve the goals.
• Organizational structure is a set of methods dividing the task to
determined duties and coordinates them (Monavarian, Asgari, &
Ashna, 2007).
In planning organizational structure
• Organizational structure determines formal relations and reporting in
organization and it shows the number of levels in the hierarchy and it
defines the span of the control of managers.
• Organizational structure determines the position of people as working
in group in a unit and it divides the units in the entire organization.
• Organizational structure includes the design of systems by which all
units are coordinated and effective relation in organization is
guaranteed.
Chain of Command
• One of the most basic elements of an organizational structure, chain
of command is exactly what it sounds like: an unbroken line of
authority that extends from the top of the organization (e.g. a CEO) all
the way down to the bottom.
• Chain of command clarifies who reports to whom within the
organization.
Span of Control
• Span of control refers to the number of subordinates a superior can
effectively manage.
• The higher the ratio of subordinates to superiors, the wider the span
of control.

Centralization
• Who makes the decisions in an organization? If decision-making
power is concentrated at a single point, the organizational structure is
centralized. If decision-making power is spread out, the structure is
decentralized.
Specialization
• Also known as division of labor, specialization is the degree to which
activities or tasks in an organization are broken down and divided into
individual jobs. High specialization can be beneficial for an
organization, as it allows employees to become “masters” in specific
areas, increasing their productivity as a result. However, low
specialization allows for more flexibility, as employees can more easily
tackle a broader array of tasks (as opposed to being specialized for a
single task).
Formalization
• Similar to specialization, formalization deals with how jobs are structured
within an organization. The key differentiator here is that formalization
also takes into account the degree to which an employee’s tasks and
activities are governed by rules, procedures, and other mechanisms.
• A formal organizational structure seeks to separate the individual from
the role or position, as the role or position stays the same regardless of
who’s holding it.
• An informal organization, on the other hand, places more value on the
individual. It allows for the evolution of a role or position based on an
individual’s preferences, skill set, etc., and places less importance on what
team or department that individual is part of.
Chapter 5 #
Organisational chart
• Is a diagram showing the organisational structure of the organisation.
• An Organisational Chart is a diagram which sets out the job titles of
the various people that work in the company and who they are
responsible to.
• This usually involves the CEO (Chief Executive Officer) or Directors
sitting at the top of the diagram, the most junior staff at the bottom
and the other staff in between depending on their seniority.
Organizational structure – Line
• The traditional line structure is organized in
such a way that a president or CEO (Chief
Executive Officer) is at the top. Then there are
the directors or VPs (Vice-Presidents) of specific
areas, followed by managers, and so on, until
the operational personnel.
• It’s a very rigid structure, with little information
exchange, typical of bureaucratic companies in
which there is little collaboration.
• Nowadays it’s unusual, but in the past it was
practiced in military, religious, and even
academic organizations. In this way, one area
doesn’t interfere with the work of another, and
the staff only obeys the ‘orders’ of the
immediate superior.
Organizational structure – Functional
• The functional organizational structure derives from the
line structure; the difference is that employees in an area
need to report to all the directors.
• For instance, an employee from the finance department
may be called upon by the HR (Human Resource)
manager to handle a matter related to this area. The IT
(Information Technology) manager may do the same, and
so forth.
• It’s a way to avoid centralization and excessive
specialization in tasks in your area.
• Today this is the most used structure in many companies
and organizations, but this doesn’t mean it’s the best one.
• Everything will depend on the relationship between
managers and, especially, on the appropriate use of IT to
aid in internal communication.
• This organizational structure example is suitable for small
companies, such as manufacturing, hotels, medium-sized
car repair shops, medical clinics, or other types of
business where informal structures allow functional
control over employees without generating conflicts
between managers.
Organizational structure – Line-and-staff
• It’s similar to the line structure,
except that in this case the staff
advises, gives opinion, makes reports,
authorizes and supports the
organization.
• Organizational structure of this type
include insurance companies,
engineering firms, law firms,
regulatory agencies, etc.
• In other words, organizations that
need isolated technical advice to
assist employees who handle or
manage the day-to-day operations on
the front line.
Project-based structure
• Highly dynamic and creative
companies – such as software
developers, architecture firms, special
industrial equipment installation
projects and event organization
companies – typically use this
structure. It’s characterized by a series
of specialized employees, ready to
compose a work team as needed.
• In each project, these collaborators
report to a different leader. Once they
complete the project, a manager
assigns them a new project and leader.
Matrix structures
• This structure is widely used both by
companies that are constantly launching
new products and marketing campaigns,
for example, and by companies that have
project-based structures, but also believe
that functional supervision is necessary
and important.
• Each project must occur independently.
However, it’s important to have a senior
manager of each department (finance,
operations, HR, marketing, etc.) to check
if everything is in accordance with the
company’s policies and level of services.
Chapter 6 #
Creating the Project Risk Plan

• Uncertainty defined as an absence of information, knowledge, or

understanding regarding the outcome of an action, decision, or
event.
Project managers constantly suffer from an absence of information,

knowledge, or understanding.
 Risk is actually a measure of the amount of uncertainty that exists. It’s directly tied
to information.
In the world of project management, risk relates primarily to the extent of your
ability to predict a particular outcome with certainty.

No information

Some information

Amount of risk Complete information

Total certainty

Relative uncertainty
Total uncertainty
• Threat The effects of risk can be positive or negative. Positive effects
of risk are often referred to as opportunities.
• Threats are the negative—or “downside”— effects of risk. Threats are
specific events that drive your project in the direction of outcomes
viewed as unfavorable (e.g., schedule delays, cost overruns, and
inferior product performance).

Managing Risk
• Project risk management is “the process of conducting risk
management planning, identification, analysis, response planning,
and monitoring and control on a project.”
The Six-Step Process
• Step 1: Make a List
Brainstorm. Making a list of potential risks to the project should not be an analysis
but a formal brainstorming session, when all ideas are captured.
• Steps 2 & 3: Determine the Probability of Risk Occurrence and Negative
Impact.
These two steps allow to prioritize all identified threats to the project and helps
determine how much time, effort, staff, and money should be devoted to preventing
or qualifying each.
 How probable is it that each risk will become a reality?
 Use a High-Medium-Low (HML) scale and apply it to the list of risks.
 If the risk becomes a reality, how badly will it damage the project.
Risk Probability Impact
A M L
B M M
C L L
D H H
• Step 4: Prevent or Mitigate the Risk
Some risks can be prevented; others can only be mitigated.
• Step 5: Consider Contingencies
Contingencies represent the specifications that will be taken if the risk occurs.
Here, the question “If the risk becomes reality, what will we do”?
• Step 6: Establish the Trigger Point
The trigger point is often the most important element of the project risk plan.
There is a direct relationship between the trigger point and the contingencies.
It is a judgment call meant to maximize the value of the predetermined
contingency by implementing it at the optimal time.
Establishing Reserves

• Contingency reserves are designated amounts of time and/or budget

to account for risks to the project that have been identified and
actively accepted. Created to cover known risks to the project.

• Management reserves are designated amounts of time and/ or

budget included in your plan to account for risks to the project that
cannot be predicted.
Chapter 7 #
• Project scheduling is one of the critical management tasks as it
dictates the time frames in which the project will be completed, the
budgets/costs in terms of resource requirements and the sequence of
tasks to be completed.
• Project scheduling is defined as the process of determining when
project activities will take place depending upon defined durations
and standard activities.
• Schedule constraints specify when an activity should start or end,
based on duration, predecessors, external predecessor relationships,
resource availability, target dates or other time constraints.
Project scheduling is a complex and iterative task which typically
involves:
 Assigning resources to project tasks;
Balancing completion dates against the availability of the appropriate
resources to complete all tasks within the available time;
Identifying dependencies between tasks so that they are scheduled in
the correct sequence;
Identifying realistic start and end points (elapsed time) to
accommodate the number of man-days work for each given task; and
Critical path analysis to identify those tasks which are critical to the
success and timely completion of the project.
 Scheduling Project Work

• CPM (Critical Path Method) is used to assist the project

manager in scheduling the activities (i.e., when should each

activity start).

• PERT (Program Evaluation and Review Technique) is used to

assist in project scheduling similar to CPM. However, PERT

assumes that activity durations are random variables (i.e.,

probabilistic).
• The primary reason for scheduling a project is to ensure that the deadline

can be met.

• A project is defined by a set of activities.

• Each activity is defined by its duration (time to complete the activity) and

its predecessors (activities that must be completed before the activity can

start).

• CPA (Critical Path Analysis) is used to assist the project manager in

scheduling the activities (i.e., when should each activity start).

• It assumes that activity durations are known with certainty.

The working methodology of critical path analysis (CPA) which includes
both CPM and PERT, consists of following five steps:

• Analyze and break down the project in terms of specific activities and/ or
events.
• Determine the interdependence and sequence of specific activities and
prepare a network.
• Assign estimates of time, cost or both to all the activities of the network.
• Identify the longest or critical path through the network.
• Monitor, evaluate and control the progress of the project by re-planning,
rescheduling and reassignment of resources.
• The central task in the control aspect of these models is to identify
the longest path through the network. The longest path is the critical
path because it equals to the minimum time required to complete the
project.
• All other paths other than the critical path (i.e. non-critical or slack
paths) offer flexibility in scheduling and transferring resources,
because they take less time to complete than the critical path.
 ADVANTAGES OF CRITICAL PATH ANALYSIS
There are a number of advantages in using critical path analysis.
• It allows for a comprehensive view of the entire project. Because of the sequential and
concurrent relationships, time scheduling becomes very effective.
• Identifying the critical activities keeps the executive alert and in a state of awareness, with
alternative plans ready in case these are needed.
• Breaking down the project into smaller components permits better and closer control.
• Critical path analysis offers economical and effective system of control based on the
principle of management by exclusion i.e. need for corrective action arises only in
exceptional situations and in most of other cases, performance is in conformity with the
plans.
• It is a dynamic tool of management which calls for constant review, a reformulation of the
network, and finding the current path of relevance and optimum resources allocation.
Definitions of Network Terms
• ACTIVITY An activity always consumes time and may also consume resources.
Examples include paperwork, labor, negotiations, machinery operations, and lead
times for purchased parts or equipment.
• CRITICAL A critical activity or event is one that must be achieved by a certain
time, having no latitude (slack or float) whatsoever.
• CRITICAL PATH The critical path is the longest path through a network and
determines the earliest completion of project work.
• EVENTS Beginning and ending points of activities are known as events. An event
is a specific point in time. Events are commonly denoted graphically by a circle
and may carry identity nomenclature (e.g., words, numbers, alphanumeric codes).
• MILESTONE Milestones are events that represent a point in a project of special
significance. Usually, it is the completion of a major phase of the work. Project
reviews are often conducted at milestones.
• NETWORK Networks are called “arrow diagrams.” They provide a graphical
representation of a project plan showing the relationships of the activities.
• Network Diagrams is a sequence in which work is performed, task A is
done before B, while Task C is done in parallel with them.

A B C

D
The first step in CPM/PERT is to construct a project
network.

In the project network each activity is represented by an

arc connected by two nodes. A B

C
The first node represents the start of the activity and the
second node represents the end of it.

The network should reflect activities precedence

relations.

Given a list of activities and predecessors, the following

rules should be followed to construct a project network:
The first step in CPM/PERT is to construct a project network.

In the project network each activity is represented by an arc connected by two nodes.

The first node represents the start of the activity and the second node represents the end of it.

The network should reflect activities precedence relations.

Given a list of activities and predecessors, the following rules
should be followed to construct a project network: A B
(1) Node 1 represents the start of the project. An arc should 1 C
lead from it to represent activities with no predecessors.
(2) Number the nodes in such a way that the node representing
completion of an activity always has a larger number than
the node representing beginning of the activity.
A B
(3) An activity should not be represented by more than one arc. 1 2
(4) Two nodes could be connected by at most one arc.
(5) Each node should have at least one entering arc and at least
one leaving arc.
C 3 D
(6) Use the least possible number of nodes (optional). 4
(7) To avoid violation of rules (4)-(6) a dummy activity with zero
duration (represented by a doted arc) may be introduced.
• Example 1. A project to manufacture a product is composed of the following activities:
Activity Predecessors
A = train workers --
B = purchase row material --
C = manufacture product 1 A, B
D = manufacture product 2 A, B
E = test product 2 D
F = Assemble products 1 and 2 C, E

E
Consider the activity in the table, drew the network and find the critical
path.
Activity Immediate
predecessor
s
A -
B -
E 5 J
C - 5 8
2 5
D B N
A K
E A F
1 L
F A B 3 G 66 9
G B D
H
C
H C,D 4 7 M
I C,D 44 I
J E
K F,G,H
L F,G,H
M I
N J,K
 Consider the activity in the table, drew the network and find the
critical path and the completion time .

Activity Immediate Duration(da E (7) 55 J (5)

predecessor ys) 8
2 5
s A (2) N (8)
F(3)
A - 2
B - 5 1 B(5) L(3)
3 G(3) 66 9
C - 4
C(4) D(5) H (6) K (4)
D B 5 4 7 M (12)
E A 7 44 I (2)
F A 3
G B 3
H C,D 6 1-2, 2-5, 5-8, 8-9 =2+7+5+8 = 22
I C,D 2 1-2, 2-6, 6-9, = 2+3+3 = 8
1-2,2-6,6-8,8-9 = 2+3+4+8 = 17
J E 5
1-3, 3-6, 6-9 = 5+3+3 = 11
K F,G,H 4 1-3, 3-6, 6-8, 8-9 =5+3+4+8 = 20
L F,G,H 3 1-3, 3-4, 4-6, 6-9 = 5+5+6+3 = 19
M I 12 1-4, 4-6, 6-9 = 4+6+3 = 13
N J,K 8 1-4, 4-7, 7-9 = 4+2+12 = 18
Consider the activity in the table, drew the network and find the critical
path and the completion time .

E (7) 5 J (5)
5 8
Activity Immediate Duration(da 2 5
predecessor ys) A (2) N (8)
s F(3)
K (4)
A - 2 ES
1 B(5) L(3)
B - 5 3 G(3) 66 9
C - 4 C(4) D(5) H (6)
D B 5 4 7 M (12)
E A 7 44 I (2)
F A 3
G B 3
H C,D 6 1-2, 2-5, 5-8, 8-9 =2+7+5+8 = 22
1-2, 2-6, 6-9, = 2+3+3 = 8 Determine earliest
I C,D 2
1-2,2-6,6-8,8-9 = 2+3+4+8 = 17 start time Es of all
J E 5 1-3, 3-6, 6-9 = 5+3+3 = 11 the nodes forward
K F,G,H 4 1-3, 3-6, 6-8, 8-9 =5+3+4+8 = 20 pass v
L F,G,H 3 1-3, 3-4, 4-6, 6-9 = 5+5+6+3 = 19 Determine latest
M I 12 1-3, 3-4, 4-6, 6-8,8-9 = 5+5+6+4+8 =28 completion time Ec
N J,K 8 1-4, 4-6, 6-9 = 4+6+3 = 13 backward pass
1-4, 4-7, 7-9 = 4+2+12 = 18
 8 Esj = Maxi(Esi + Dij)
15
Lc 2 J (5) 20 I for starting activity
E (7) 9
55 8 J for ending activity
2 20
Es 2 5 N (8)
0 A (2) F(3) For node 1 Esj =0
0 28 For node 2 Esj = 0 + 2 = 2
K (4)
28 For node 3 Esj= 0+5=5
1 B(5)
5 33 L(3) For node 4 we have 2
G(3) 6 16 9
5 6 options
16
C(4) Esj= 0+4=4 or 5+5 =10
D(5) H (6)
We chose Max. 10 ….
4 7 M (12)
4
4 I (2)
10
16 Lci = Minj(Lcj-Dij)
10
12 For node 8 Lci=28-8=20
For critical path we need this conditions
1- Esi = Eci
2- Esj=Ecj
3- Esj – Esi = Ecj – Eci = Dij
• Calculate the total float time and the free float time for the non critical path.
• Total float is the amount of time that a completion time of an activity can be delayed with out affecting
the project completion time.
• Tfij = Lcj - Esi – Dij
• Free float is the amount of time that the activity completion can be delayed with out affecting the
earliest start time of immediate successor activity in the network
• Ffij = Esj – Esi -Dij
• Any critical activity will have zero total float and zero free float

Activity Duration(days) Total float Free float

A(1-2) 2 8-0-2=6 0-2-2=0
B(1-3) 5 5-0-5=0 5-0-5=0
C(1-4) 4 10-0-4=6 10-0-4=6
D(3-4) 5 10-5-5=0 10-5-5=0
E(2-5) 7 15-2-7=6 9-2-7=0
F(2-6) 3 16-2-3=11 16-2-3=11
G(3-6) 3 16-5-3=8 16-5-3=8
• Example 1. A project to manufacture a product is composed of the following activities:
Activity Predecessors Duration (days)
A = train workers -- 6
B = purchase row material -- 9
C = manufacture product 1 A, B 8
D = manufacture product 2 A, B 7
E = test product 2 D 10
F = Assemble products 1 and 2 C, E 12

E
SWOT analysis
• SWOT analysis is a framework used to evaluate a company's
competitive position by identifying its strengths, weaknesses,
opportunities and threats.
• It is a foundational assessment model that measures what an
organization can and cannot do, and its potential opportunities and
threats.
• SWOT analysis is a basic, analytical framework that assesses what an
entity — usually a business, although it can be a place, industry or
product — can and cannot do, for factors both internal and external.
• Using environmental data to evaluate the position of a company, a
SWOT analysis determines what assists the firm in accomplishing its
objectives, and what obstacles it must overcome or minimize to
achieve desired results:
where the organization is today, and where it may go
• For example, back in 2015, The Coca-Cola Company noted strengths
like its well-known brand name, vast distribution network and
opportunities like emerging markets, but it also noted weaknesses
and threats such as foreign currency fluctuations, a growing taste for
"healthy" beverages and the subsequent competition from providers
of such beverages. Coca-Cola took steps to address these concerns,
ramping up its marketing, advertising and promotional activities, and
expanding into other beverage categories. As a result, within a year,
its dividend-per-share rose from 33 to 35 cents, and its stock, which
was hovering around $39 per share, climbed to $46. It's fallen since,
but remains up about 13 percent over the past three-year period.
• Strengths describe what an organization
bests at and separates it from the
competition: a strong brand, loyal customer
base, a strong balance sheet, unique
technology and so on. For example, a privet
fund may have developed a exclusive trading
strategy that returns market-beating results.
It must then decide how to use those results
to attract new investors.
• Weaknesses stop an organization from Strength Weaknesses
performing at its optimum level. They are Internal
areas where the business needs to improve
to remain competitive: higher-than-industry-
average turnover, high levels of debt, an
inadequate supply chain or lack of capital.
• Opportunities refer to favorable external
factors that an organization can use to give it External
a competitive advantage. For example, a car Opportunity Threats
manufacturer can export its cars into a new
market, increasing sales and market share, if
a country cuts tariffs.
• Threats refer to factors that have the
potential to harm an organization. For
Al’s Ice Cream: The Case for Expansion
• Al’s Ice Cream is a exclusively owned ice cream shop that its founder
Al’s creates handcrafted ice cream with local ingredients. Al’s
company is profitable with strong margins on its premium-priced
cones, but Al is wondering if the single store approach isn’t limiting
his growth.
Strengths  Weaknesses
Superior product with unique flavors difficult to
duplicate Limited market penetration due to a single location

Loyal customer base supplying word of mouth

marketing Time and labor-intensive production process

Strong sales and generous profit margin Limited capital for expansion

  Have trouble finding capable ice cream artisans.

Opportunities Threats
Increase the number of stores to access more
customers Big ice cream brands are experimenting with
artisanal ice cream
Focus on production and sell into retail food
service
Buy new equipment to lower production time Consumers are increasingly health conscious 
and labor 
Start an artisanal ice cream class to train and Local ingredients may become more expensive as
recruit employees restaurants and other big buyers focus on local
Partner up to access more capital, raise it from food 
private investors, or apply for government
grants. Competitors have more marketing dollars 
 
• The purpose of a SWOT analysis is to present routes for a company. A
company can create potential strategies by combining and
recombining different factors. For example, Al’s could apply for
government grants to install new equipment, reducing labor needs,
and then raise capital to open an additional concept store staffed with
the artisanal ice cream class' graduates. This an ambitious plan – and
it will probably change in implementation, but it provides Al’s Ice
Cream with a potential path forward.