Unit 2

Management of Conversion System

Chapter 9: Project Scheduling
Lesson 26 - PROJECT MANAGEMENT

Learning Objectives

After reading this lesson you will be able to understand

Identify the three major activities associated with successful project processes
Diagram the network of interrelated activities in a project

Good Morning students, today we are going to introduce the concept of what is
known as PROJECT MANAGEMENT. We would learn to appreciate the
importance of the concept as applicable in Production and operations systems.

What is project?
An interrelated set of activities that have a definite starting and ending point and that
result in a unique outcome for a specific allocation of resources.

Let us consider an example to make it clear.

In the production department of college book division of a big printing press the products
are books, complicated books, books headed for the college market. Each book is a
"project" that appears on the production editor's desk as a large pile of manuscript pages:
a combination of typed copy, "tear sheet" copy of art and text from previous - editions,
figures drafted by the author, and other illustrations. These disparate elements are sent off
in different directions for various treatments and must appear bound within covers and
ready for sale approximately ten months later.

Successful projects begin with a clear definition of scope, objectives, and tasks.

Planning for the production of a college text involves decisions about the book's
specifications (size, color, paper, covers); design (typefaces, art); permissions (where
and in what languages the book will sell); composition (setting the type); printing, and
binding. Scheduling-involves overlapping time frames so that some tasks can be done
at the same time (editing and establishing costs, for example), while other tasks that
depend on prior events occur later (paging and indexing, for example); and the
schedule must end at a time advantageous to sales. Planning and scheduling for a
specific book take place at a launch meeting, where activities are identified, the
sequencing is established, and a time is set for each activity within the overall ten-
month limit. The book's advance through the schedule is recorded and adjustments
made as necessary. The production editor of a press is able to carry a considerable
number of books at the same time, very efficiently, thanks to the production schedule.

There are three important activities in the initial phase of managing projects –
selecting the project manager and team, defining scope and objectives, and planning
the format for meetings and communication.

Selecting the project manager and team

Project managers should be good motivators, teachers, and communicators. They
should be able to organize a set of disparate activities and work with personnel from a
variety of disciplines. These qualities are important because project managers have the
responsibility to see that their projects are completed successfully.

Defining the scope and objectives

A thorough statement of project scope, time frame, and allocated resources is essential
to managing the project process. The scope captures the essence of the desired project
outcomes in the form of major deliverables, which are concrete outcomes of the
project process. These deliverables become the focus of management attention during
the life of the project.

Planning the project format

A key activity for any project process is making decisions. The managers of
successful project processes specify the format for how the team will make decisions
and who will make them. Such a format sets down guidelines for meetings, for
resolving issues, and for communication among team members.

.
Now that we have understood the meaning of a project, we shall turn our attention
to what is known as:-

PROJECT PLANNING AND SCHEDULING

Project planning
Once the project has been defined and the project process organized, the team must
formulate a plan that identifies the specific tasks to be accomplished and a schedule for
their completion. Planning projects involves five steps:
1. defining the work breakdown structure
2. diagramming the network
3. developing the schedule
4. analyzing cost-time trade-offs, and
5. assessing risks.

The work breakdown structure (WBS) is a statement of all work that has to be completed.
The project manager must work closely with the team to identify all work tasks. An
activity is the smallest unit of wok effort consuming both time and resources that the
project manager can schedule and control.

Project scheduling
In contrast to project planning, project scheduling is more specific. Scheduling
establishes times and sequences of the various phases of the project. In project
scheduling, the manager considers the many activities of an overall project and the tasks
that must be accomplished and relates them coherently to one another and to the
calendar.

Now we shall we go into the details of project scheduling models.

PROJECT SCHEDULING MODELS

There are various methods for scheduling projects. In this section we look at two simple
project scheduling models-Gantt charting and the Program Evaluation and Review
Technique (PERT). Both are schematic models, but PERT also has some mathematical
model adaptations.
Let’s start with:-

GANTT CHARTS

A Gantt chart is a bar chart shows the relationship of activities over time. Following table
gives the symbols often used in a Gantt chart. An open bracket indicates the scheduled
start of the activity, and a closing bracket indicates the scheduled completion. A heavy
line indicates the currently completed portion of the activity. A caret at the top of the
chart indicates current time.

Gantt chart symbols

Symbol Meaning
( Start of an activity
] End of an activity

H Actual progress of the activity

v Point in time where the project is

now

NETWORK MODELING

It allows us to address project scheduling a little more formally than we can with the
Gantt chart. Although network models are based on rigorous theory and precise
definitions, we discuss only a few terms and concepts here.

The following figure illustrates the essential features of network modeling. Each activity
is symbolized by an arc, an arrowed line segment (or, simply, an arrow). Both the
beginning and the ending of each activity are symbolized by a node, a circle at the
beginning or ending of the arrow. Joint nodes represent the precedence relationships of
the activities: An arc whose ending node is the beginning node of a second arc represents
an activity that must precede the second activity.

In the following figure there are six nodes, numbered 1-6. The arcs are named by their
beginning and ending nodes:-

arc 1-2,
1-3,
2-4,
2-5,
4-6, and
5-6.

The lengths of the arcs are of no significance. Nodes may be lettered, rather than
numbered, or arcs as well as nodes may be numbered or lettered. Since arc 1-3 in the
figure ends at the node that begins arc 3-6, arc 1-3 represents an activity that must
precede activity 3-6. In talking about networks, we may refer to arc 1-2, for example,
interchangeably with activity 1-2.

Well my friends, all of you must have a fair bit of an idea of PROGRAM
EVALUATION AND REVIEW TECHNIQUE (PERT), that you might have covered
under quantitative techniques or operations research papers during the earlier semesters.
However I would be failing in my duty if I do not take it up again during the current
discussion. Indeed such is importance of this technique that universally almost all
projects are evaluated on the basis of this method.
Here we go.

NETWORK MODELING
Network modeling allows us to address project scheduling a little more formally than we
can with the Gantt chart. Although network models are based on rigorous theory and
precise definitions, we discuss only a few terms and concepts here.

PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)

Development of PERT In 1958 the U.S. Navy developed Program Evaluation and Review
Technique (PERT) for planning and control of the Polaris nuclear submarine project. The
results of using PERT in that application, in which some 3,000 contractors were involved,
is generally reported to have reduced by two years the project completion time for the
Polaris project. In both government and industry today, PERT is still widely used.
 2 4

5
6
1

Figure 26.1 Network of nodes and arcs

The Figure 26.1 illustrates the essential features of network modeling. Each activity
is symbolized by an arc, an arrowed line segment (or, simply, an arrow). Both the
beginning and the ending of each activity are symbolized by a node, a circle at the
beginning or ending of the arrow. Joint nodes represent the precedence relationships of
the activities: An arc whose ending node is the beginning node of a second arc represents
an activity that must precede the second activity.

In the Figure 26.1 there are six nodes, numbered 1-6. The arcs are named by their
beginning and ending nodes: arc 1-2, 1-3,2-4,2-5,4-6, and 5-6. The lengths of the arcs are
of no significance. Nodes may be lettered, rather than numbered, or arcs as well as nodes
may be numbered or lettered. Since arc 1-3 in the figure ends at the node that begins arc
3-6, arc 1-3 represents an activity that must precede activity 3-6. In talking about
networks, we may refer to arc 1-2, for example, interchangeably with activity 1-2.
A similar modeling approach called the Critical Path Method (CPM) is also used by
business and government, Since CPM and PERT are nearly equivalent, we will
concentrate only on PERT.

Application of PERT

First we should clarify the conditions under which PERT may be appropriately used. If
your situation lacks the following features, PERT wiII yield little benefit. First the project
must be one whose activities clearly are distinct and separable. Second, the project and
activities must all have clear starting and ending dates. Third, the project must not- be
complicated by too many interrelated tasks. Fourth, the project must be one whose
activities afford alternative sequencing and timing.

Language of PERT
 The PERT language comprises simple symbols and terms. Key symbols are given
for activity, dummy activity, event, and critical path of the network. Since the critical path
requires the longest time through the network, management should watch it most closely
to avoid unnecessary project delays.

Logic of PERT
A logical question to ask at this point in our discussions would be:-

How does PERT work?

Well friends,

It works by following these steps:

1. Clearly identify all activities in the project.

2. Identify the precedence requirements of the activities.

3. Diagram the precedence requirements as a sequence of activities.

4. Estimate the time each activity will take.

5. Calculate the critical path and other project performance criteria, creating the
schedule and plan for subsequent control.

6. Reevaluate and revise as experience dictates.

Time estimates are obtained from either past data or from people experienced in a
particular activity. Optimistic to, pessimistic tp, and most likely tm times must be estimated
so that the expected (average) time te can be calculated from the following equation.

(to + 4tm + tp)

te =
6
let me provide you with a (PERT) glossary.

Program Evaluation and Review Technique (PERT) glossary

Symbol Name Meaning

 Activity A task within the project that has a definite beginning and
ending date or point in time. The activity consumes time.
The length of the arrow is of no significance. Designated as
an arc.
Dummy A fictitious activity consuming no time;
Activity necessary to preserve the unique
identification of activities.

Event The beginning or ending of an activity. A point

in time. Each project has a distinct project
beginning and project ending. Designated as
a node.

Network The sequence of all project activities. The

sequence obeys precedence requirements.
Nodes connected by arcs.
Path Anyone unique portion of the project sequence,
beginning with the first activity and ending with
the last activity, for which each activity has a
single immediate successor. Each node pair
has a single arc, an activity.

Critical path The path whose activities are expected to

consume the most time.

Time Interpretation Calculation

Notation

to Optimistic time: The least Assigned according to

amount of time an activity experience or past data.
is expected to consume,
possible only under extremely
favorable conditions. Very little
chance, say 1 in 100.

tp Pessimistic time: The greatest Assigned according

amount of time an activity is to experience or past
expected to consume, possible data.
only under extremely unfavorable
conditions. Very little chance, say 1
in 100.

tm Most likely time: The single best Assigned according

guess for activity completion time. to experience or past
The mode activity time. data.
te Expected time: The amount o (to + 4tm + tp)
time an activity is expected to t e=
consume, as likely to be exceeded 6
as beaten. The mean activity time.

Tp Path time: The amount of time T p= Σ t e for all activities on a path

expected to be consumed by
activities on a path.
TB Expected beginning time: The T B= t e for all activities on a path
amount of time expected to be
consumed before an activity
can begin. The sum of expected
times for activities preceding a
node on a path.
TE Earliest beginning time: The T E= max T B
minimum amount of time that
must be consumed before an
activity can begin. The maximum
expected beginning time.

TC Expected completion time: The T C= Σ t e for all succeeding activities

amount of time expected to be
consumed once an activity begins.
The sum of expected times for
activities succeeding a node on a path.

TL Latest beginning time: The maximum T L =time allowed – max T C

Amount of time that can be consumed
before an activity begins, if the project is
to be completed on time. The difference
of the total time allowed for the project
and the maximum expected completion time.
TS Slack time: The amount of leeway time an T S=T L– T E
activity can consume and still allow the
project to be completed on time. The
difference of the latest beginning time and
the expected beginning time.
 Sample PERT network

Net Work Meaning

A C D
Represents activities AC, BC, and CD. CD may not
begin until both AC and BC are completed. AC and
activities.
B
B
A C
BD may not begin until AB is completed. CD 3 may not
begin until AC is completed.
D
B
AB-BD and AC-CD are parallel pat/IS. However, AC
A D does not have to begin at the same instant that AB
begins, although it may. Similarly, BD does not have
to be completed at the same instant that CD is
completed, although it may. Similarly, BD may be
C completed before AC is completed.

B BC is a dummy activity, used when necessary to

A preserve the required sequence of the network. It
D may be symbolized in two ways, as shown. A dummy
o activity consumes no time. Using a dummy allows all
activities to be identified by a unique pair of nodes.
C Activity CD cannot begin until activities AB and AC
are completed. This network has two paths: AB-BC-
CD and AC-CD.

Diagramming the project as a network requires establishing the precedence relationships

between activities. A precedence relationship determines a sequence for undertaking
activities; it specifies that one activity cannot start until a preceding activity has been
completed.
Two different approaches may be used to create a network diagram. The first approach,
the activity-on-arc (AOA) network, uses arcs to represent activities and nodes to
represent events. An event is the point at which one or more activities are to be
completed and one or more other activities are to begin. An event consumes neither time
nor resources. Because the AOA approach emphasizes activity connection points, we say
that it is event oriented.
The second approach is the activity-on-node (AON) network, in which nodes represent
activities and arcs the precedence relationships between them. This approach is activity
oriented. Here, precedence relationships require that an activity not begin until all
preceding activities have been completed. In AON networks, when there are multiple
activities with no predecessors, it is usual to show them emanating from a common node
called Start. When there are multiple activities with no successors, it is usual to show
them connected to a node called Finish.
Time for an example, friends.
Example – Network diagramming a Hospital Project
In the interest of better serving the public, Metro Apollo Hospital has decided to relocate
from Saritabihar to Badarpur, a large suburb that has no primary medical facility. The
move to Badarpur will involve constructing a new hospital and making it operational.
The work break down structure of it consists of 11 major project activities. The
immediate predecessors for each activity are identified and shown in the following table.
Activity Description Immediate Predecessors
A Select administrative and medical staff -
B Select site and do site survey -
C Select equipment A
D Prepare final construction plans and layout B
E Bring utilities to the site B
F Interview applicants and fill positions in A
nursing, support staff, maintenance, and
security
G Purchase an take delivery of equipment C
H Construct the hospital D
I Develop an information system A
J Install the equipment E, G, H
K Train nurses and support staff F, I, J

The AON and AOA diagrams are shown below

A K
F

Finish
Start C G

B D H J

Figure 26.2 AON Network for the Metro Hospital Project

 F
2 8
I
Dummy K
C
A
3 7
G J

Finish
9
Start
1
H
5 6
B
D E

Figure 26.3 AOA Network for the Metro Apollo Hospital project

Both the AON and the AOA methods can accurately represent all the activities and
precedence relationship in a project. Regardless of the method used, modeling a large
project as a network forces the project team to identify the necessary activities and
recognize the precedence relationship. If this preplanning is skipped, unexpected delays
often occur.

Activity 1
Irfan Bearings (P) Ltd is considering the replacement of the old machines in their factory
by new advanced machines. The production manager has identified the activities given in
the following table for this project. Draw the network diagram of the project and find the
critical path with its duration.
Activity Description Predecessors
A Analysis of costing with respect to purchase of new -
machines and sale of old machines as scrap
B Approval of budget for purchase of new machines A
C Invite quotation of prices for new machines and choose B
the supplier with best prices
D Invite tenders for sale of old machines B
E Advertise for additional new workers required for B
operating the new machines
F Place the order for new machines C
G Select and train the new workers hired E
H Sell old machines to the selected buyer D
I Install the new machines H, F
J Start production G, I
Activity 2
Systems Software (P) Ltd is planning to develop a new software. It has identified the
activities for the project as listed in the following table. The three estimates for all
activities are also estimated and listed in the table. Find the expected time required for all
the activities
Activity Description Predecessors a m b
A Plan the objectives of the - 1 2 3
project
B Choose the appropriate A 3 5 7
operating system
C Generate algorithm A 6 10 14
D Choose a suitable A 4 6 8
programming language
E Write the program B, C, D 8 9 10
F Test the software E 2 4 6
G Get the approval for F 1 3 5
commercialization

Points to Ponder