Project Management

Learning Objectives
When you complete this chapter you
should be able to:
1. Create a work breakdown structure
and Gantt chart
2. Draw AOA and AON networks
3. Determine a critical path
4. Calculate the slack time for the
project and for each activity

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 Projects
JAN FEB MAR APR MAY JUN
Build A

A Done

Build B

B Done

Build C

C Done
On time!
Build D

Ship

Unique, one-time operations designed to

accomplish a specific set of objectives in a
limited time frame. Involve Planning,
Scheduling and Control.

Projects
• Has a set of pre-defined objectives usually
related to time, cost and performance
(quality).
• Conflicting – if cost min, quality deteriorate, if
quality increase, cost will increase
time

cost quality

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 Project Life Cycle

Gantt
PERT
Resource
WBS
Loading

Project Manager
Responsible for:

Work Quality
Human Resources Time
Communications Costs

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 What are the tools?

– Work breakdown structure (WBS)

– Gantt charts
– PERT, CPM or Network diagram
– Risk Management

Work Breakdown Structure

Project X

Level 1

Level 2

Level 3

Level 4

Composing detailed definition – into activities

A hierarchical listing of what must be done
during a project
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 Work Breakdown Structure (WBS)
A hierarchical listing of what must be done during a
project
• Establishes a logical framework for identifying the
required activities for the project
1. Identify the major elements of the project
2. Identify the major supporting activities for each of
the major elements
3. Break down each major supporting activity into a
list of the activities that will be needed to
accomplish it

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 Gantt Chart
• To monitor progress over time by comparing
planned to actual.
– Identify activities
– Estimate time
– Determine sequence
• Disadvantage: fail to reveal certain
relationship among activities can be crucial
(can’t see critical path)

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Planning and Scheduling

Gantt Chart MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Locate new
facilities

Interview staff

Hire and train staff

Select and order

furniture

Remodel and install

phones

Move in/startup

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 PERT, CPM, Network Diagram
PERT: Program Evaluation and
Review Technique
CPM: Critical Path Method

• Graphically displays project activities

• Estimates how long the project will take
• Indicates most critical activities
• Show where delays will not affect project

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Network Diagram
• Path
– Sequence of activities that leads from the starting node to
the finishing node
• Critical path
– The longest path; determines expected project duration
• Critical activities
– Activities on the critical path
• Slack
– Allowable slippage for path; the difference the length of
path and the length of critical path

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 Advantages
 Forces managers to organize
 Provides graphic display of activities
 Identifies
– Critical activities
– Slack activities
– Expected length of project
– Length of each path

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Limitations
• Important activities may be omitted
• Precedence relationships may not be correct
• May focus solely on critical path

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 Project Network: Activity on Arrow

Order
AOA furniture 4
Furniture
Locate
2 setup
facilities
Remodel
1 5 6
Move
in
Interview
Hire and
train
3

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Project Network: Activity on Node

Order
furniture
Furniture
Locate 2 setup
facilities
AON
1 6 Move
in
Remodel

S 5 7

Hire and
Interview train

3 4
17-18

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 Critical path and slack time

Critical path
The critical path is the path with longest duration

Slack time (path)

= duration of critical path – path duration

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Example 1
Deterministic 4
time estimates
6 weeks
2
8 weeks

1 5 6
4 weeks 11 weeks 1 week

3
4 weeks

Path Length Slack

(weeks)
1-2-4-5-6 30 0
1-2-5-6 24 6
1-3-5-6 20 10

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Example of Network Diagram (AON)

Task Duration Preceding
(days) Task
A 2 -
B 3 A
C 3 A
D 4 B
E 8 C
F 4 C
G 1 D
H 8 E
I 4 F,G,H

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 Slack time for activity
Earliest start (ES) =earliest time at which an activity can
start, assuming all predecessors have
been completed
Earliest finish (EF) = earliest time at which an activity
can be finished
Latest start (LS) =latest time at which an activity can
start so as to not delay the completion
time of the entire project
Latest finish (LF) =latest time by which an activity has to
be finished so as to not delay the
completion time of the entire project

Table 3.2

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Slack time for activity

Perform a Critical Path Analysis

Activity Name or
Symbol

Earliest
A Earliest
ES EF Finish
Start

Latest LS LF Latest
Start Finish
2

Figure 3.10 Activity Duration

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 • Assign tasks into network diagram and determine:
– The EST, EFT, LST, LFT for each tack
– The critical path
– Project duration
– Draw a Gantt Chart

EST A EFT
LST 2 LFT

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Example of Network Diagram (AON)

Task Duration Preceding
(days) Task
A 2 -
B 3 A
C 3 A
D 4 B
E 8 C
F 4 C
G 1 D
H 8 E
I 4 F,G,H

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 Sketch First

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Slack (bottom-top)
Critical Path (slack = 0)
start

G
B D 1
3 4
A
2
E H I
C 4
8 8
3

F
End
4

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 Gantt Chart

DAY

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Find activity that can be delayed most of the time without affecting
project? (Valid Slack)

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Tutorial
Activity Duration Preceding
(weeks) Activity
A 1 -
B 4 A
C 3 A
D 7 A,B
E 6 B
F 2 C,D
G 7 E
H 9 E,F

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 a) Construct network diagram for the project
b) Determine the Earliest and Latest times for all
activities
c) Determine the critical path and duration of the
project
d) Which activity could be delayed taking the most
time without affecting the project completion time
(based on Gantt Chart & network diagram)

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Assignment Project Management

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 Assignment Project Management

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