Operations

Management
Chapter 8 Project
Management
UiTM Shah Alam
Lecturer: Dr. Noor Azlina Mohd. Salleh
T1-A14-8C

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 LEARNING OBJECTIVES

8.1 Understand Characteristics of a project

and Project Life Cycle
8.2 Apply and analyze techniques in project
planning and control; Gantt Chart, CPM, and
Resource Loading
8.3 Aware on Project Management Information
Systems

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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.
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 Projects Objectives

• Usually relate to time, cost and performance/quality

• If min cost, quality can be deteriorated.
• If min time, cost may increase
• If max quality, cost may increase.

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 Examples of Projects

 Building Construction

 Research Project
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 Project Management Activities
 Planning
 Scheduling
 Objectives
 Project activities
 Resources
 Start & end times
 Work break-down
schedule  Network
 Organization

 Controlling
 Monitor, compare, revise, action
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 Project Planning, Scheduling,
Time/cost
Budgets
estimates

and Controlling
Engineering diagrams
Cash flow charts
Material availability details

Budgets
Delayed activities report
Slack activities report

CPM/PERT
Gantt charts
Milestone charts
Cash flow schedules

Figure 3.1

Before Start of project During

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project Timeline project
 Ethical Issues
Temptation to understate costs
Withhold information
Misleading status reports
Falsifying records
Compromising workers’ safety
Approving substandard work

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 Key Decisions
Deciding which projects to implement
Selecting a project manager
Selecting a project team
Planning and designing the project
Managing and controlling project
resources
Deciding if and when a project should be
terminated

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 Project Management
Techniques
 Gantt chart
 Critical Path Method
(CPM) – Network
Diagram
 Program Evaluation
and Review Technique
(PERT)- Network
Diagram
 Resource Histogram
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 Work Breakdown Structure
Level ID
Level Number Activity
1 1.0 Develop/launch Windows Vista OS
2 1.1 Develop of GUIs
2 1.2 Ensure compatibility with earlier
Windows versions
3 1.21 Compatibility with Windows ME
3 1.22 Compatibility with Windows XP
3 1.23 Compatibility with Windows 2000
4 1.231 Ensure ability to import files

Figure 3.3
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 Work Breakdown Structure
Project X

Level 1

Level 2

Level 3

Level 4

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 Work Breakdown Structure
 To break down the project to visible items that can
be controlled & small enough for accurate cost
estimates
 To specify work packages for high security,
accountability & can be assigned to specific
personnel
 To ensure the progress of the work packages can
be measured
 Can determine who responsible, how much the
cost, when it completes and what formal methods
to monitor the progress of the work.
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 A Simple Gantt Chart
Gantt Chart MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Locate new Time

facilities J F M A M J J A S
Interview staff
Design
Hire and train staff
Prototype
Select and order
Test
furniture

Reviseand install
Remodel
phones
Production
Move in/startup

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 Examples Gantt Chart

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 Examples Gantt Chart

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 Service For A Delta Jet
Deplaning
Passengers
Baggage claim
Baggage Container offload
Pumping
Fueling
Engine injection water
Cargo and mail Container offload
Main cabin door
Galley servicing
Aft cabin door
Lavatory servicing Aft, center, forward
Drinking water Loading
First-class section
Cabin cleaning
Economy section
Cargo and mail Container/bulk loading
Galley/cabin check
Flight services
Receive passengers
Operating crew Aircraft check
Baggage Loading
Passengers Boarding
0 10 20 30 40
Figure 3.4 Time, Minutes
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 Gantt Chart
 Scheduling technique – shows the
relationship among the project tasks or
activities within time constraint
 Takes place after WBS is drawn up and
work package are identified
 Give clear pictorial model
 Simple to construct and easy to interpret

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PERT and CPM- Network Diagram
 Network techniques
 Developed in 1950’s
 CPM by DuPont for chemical plants
(1957)
 PERT by Booz, Allen & Hamilton with
the U.S. Navy, for Polaris missile (1958)
 Consider precedence relationships and
interdependencies
 Each uses a different estimate of activity
times
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 Six Steps PERT & CPM

1. Define the project and prepare the

work breakdown structure
2. Develop relationships among the
activities - decide which activities
must precede and which must follow
others
3. Draw the network connecting all of
the activities
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 Six Steps PERT & CPM
4. Assign time and/or cost estimates to
each activity
5. Compute the longest time path
through the network – this is called
the critical path
6. Use the network to help plan,
schedule, monitor, and control the
project
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PERT and CPM- 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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Project Network – Activity on Node
Order
furniture
Locate Furniture
2
AON facilities setup

1 6
Move
Remodel
in

S 5 7

Hire and
Interview
train

3 4
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 Project Network – Activity on Arrow

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

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 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
(a) A B C B, which comes
before C A B C
A A
A and B must both
(b) C be completed
before C can start C
B B
B
B and C cannot
(c) A begin until A is B
completed A
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 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D

C cannot begin
until both A and B
A C are completed; D A C
(e) cannot begin until Dummy activity
B is completed. A
B D dummy activity is
introduced in AOA B D
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Figure 3.5
 A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

B and C cannot
begin until A is
completed. D
A B D cannot begin A B D
until both B and
(f) C are completed. Dummy
A dummy activity
C
C
activity is again
introduced in
AOA.
Figure 3.5

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 Determining the Project Schedule
Perform a Critical Path Analysis
Earliest start (ES) = earliest time at which an activity can
Activity Descriptionstart, assuming all predecessors Time (weeks)
have
A Build internal components
been completed 2
EarliestBfinish (EF)
Modify roof and
= earliest floor
time at which an activity can3
C be finished
Construct collection stack 2
LatestD start (LS)
Pour=concrete
latest timeandat install
which frame
an activity can4
E start so as to not delay
Build high-temperature burnerthe completion
4
F Install time of thecontrol
pollution entire project
system 3
LatestGfinish (LF) = latest
Install time bydevice
air pollution which an activity has 5 to
be finished so as to not delay the
H Inspect and test 2
completion time of the entire project
Total Time (weeks) 25
6/11/2019 NY - KJP 585 2009 Table 3.2
28
 Determining the Project Schedule
Perform a Critical Path Analysis
Activity Name
or Symbol
A
Earliest
Earliest ES EF Finish
Start

Latest LS LF Latest
2 Finish
Start

Activity Duration
6/11/2019 Figure 3.10 NY - KJP 585 2009 29
 Forward Pass
Begin at starting event and work forward

Earliest Start Time Rule:

 If an activity has only a single immediate

predecessor, its ES equals the EF of the
predecessor
 If an activity has multiple immediate
predecessors, its ES is the maximum of
all the EF values of its predecessors

ES = Max {EF of all immediate predecessors}

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 Forward Pass

Begin at starting event and work forward

Earliest Finish Time Rule:

 The earliest finish time (EF) of an activity

is the sum of its earliest start time (ES)
and its activity time

EF = ES + Activity time

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 AON Example
Milwaukee Paper Manufacturing's
Activities and Predecessors
Immediate
Activity Description Predecessors
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G
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Table 3.1
 AON Network for Milwaukee
Paper

F
A C

E
Start H

B D G
Figure 3.8
Arrows Show Precedence
Relationships
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 Determining the Project Schedule

Perform a Critical Path Analysis

Activity Description Time (weeks)
A Build internal components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
Total Time (weeks) 25
Table 3.2

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 ES/EF Network for Milwaukee
Paper
ES EF = ES + Activity time
Start
0 0

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 ES/EF Network for Milwaukee
Paper
EF of A =
ES ES of A + 2
of A
A
Start 0 2
0 0

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 ES/EF Network for Milwaukee
Paper
A
0 2

2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3

3
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 ES/EF Network for Milwaukee
Paper
A C
0 2 2 4

2 2

Start
0 0

B
0 3

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 ES/EF Network for Milwaukee
Paper
A C
0 2 2 4

2 2

Start
0 0
= Max (2, 3) D
0
3 7
B
0 3

3
4
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 ES/EF Network for Milwaukee
Paper
A C
0 2 2 4

2 2

Start
0 0

B D
0 3 3 7

3 4

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 ES/EF Network for Milwaukee
Paper
A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15

0 4 2

B D G
0 3 3 7 8 13

3 4 5
Figure 3.11
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 Backward Pass
Begin with the last event and work backwards

Latest Finish Time Rule:

 If an activity is an immediate predecessor

for just a single activity, its LF equals the
LS of the activity that immediately follows it
 If an activity is an immediate predecessor
to more than one activity, its LF is the
minimum of all LS values of all activities
that immediately follow it

LF = Min {LS of all immediate following activities}

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 Backward Pass
Begin with the last event and work backwards

Latest Start Time Rule:

 The latest start time (LS) of an activity is

the difference of its latest finish time (LF)
and its activity time

LS = LF – Activity time

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 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15
13 15
0 4 2

B D – Activity time
LS = LF G
0 3 3 7 8 13

3 4 5 LF = EF
of Project
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 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

10 13
2 2 3

Start E H
0 0
LF =4 Min(LS
8 of 13 15
following activity) 13 15
0 4 2

B D G
0 3 3 7 8 13

3 4 5

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 LS/LF Times for
LF = Min(4, 10)
Milwaukee Paper
A C F
0 2 2 4 4 7

2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
8 13
3 4 5

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 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5

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 Computing Slack Time

After computing the ES, EF, LS, and LF times

for all activities, compute the slack or free
time for each activity

 Slack is the length of time an activity can

be delayed without delaying the entire
project

Slack = LS – ES or Slack = LF – EF

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 Computing Slack Time

Earliest Earliest Latest Latest On

Start Finish Start Finish Slack Critical
Activity ES EF LS LF LS – ES Path

A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes

Table 3.3
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 Critical Path for Milwaukee Paper
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5

What is the project completion time?

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 Critical Path And Slack Times
For Milwaukee Paper
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start Slack = 0 Slack = 0 E Slack = 6 H

0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5

Slack = 1 Slack = 1 Slack = 0

6/11/2019 NY - KJP 585 2009 Figure 3.17
51
 ES – EF Gantt Chart
for Milwaukee Paper
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
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 LS – LF Gantt Chart
for Milwaukee Paper
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
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 Advantages of PERT/CPM
1. Especially useful when scheduling and
controlling large projects
2. Straightforward concept and not
mathematically complex
3. Graphical networks help highlight
relationships among project activities
4. Critical path and slack time analyses help
pinpoint activities that need to be closely
watched
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 Advantages of PERT/CPM

5. Project documentation and graphics

point out who is responsible for various
activities
6. Applicable to a wide variety of projects
7. Useful in monitoring not only schedules
but costs as well

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 Limitations of PERT/CPM
1. Project activities have to be clearly
defined, independent, and stable in their
relationships
2. Precedence relationships must be
specified and networked together
3. Time estimates tend to be subjective and
are subject to fudging by managers
4. There is an inherent danger of too much
emphasis being placed on the longest, or
critical, path

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 Resource Histogram
1. Effectively visual technique for deriving a
plan for manpower or machine based
requirement in a project
2. Availability to determine whether the
project can be completed within time and
budget

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 Resource Histogram
Resource Histogram
10
9
8
No. of Resources

7
6
5
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Resources Week

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 CPM Example-1
• Hijjaz Management is developing a program in leadership training for
middle- level managers. Hijjaz has listed several activities that must
be completed before a training program of this nature could be
conducted. The activities, immediate predecessors, and times appear
in the accompanying table
Activity Immediate Predecessor (s) Time (Days)
A - 2
B - 5
C - 1
D B 10
E A,D 3
F C 6
G E,F 8

a) Develop an AON network for this problem

b) What is the critical path?
c) What is the total completion time?
d) What is the slack time for each individual activity?
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 CPM Example
Solution: AON network diagram

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 CPM Example
Activity Time ES EF LS LF Slack Critical
A 2 0 2 13 15 13 No
B 5 0 5 0 5 0 Yes
C 1 0 1 11 12 11 No
D 10 5 15 5 15 0 Yes
E 3 15 18 15 18 0 Yes
F 6 1 7 12 18 11 No
G 8 18 26 18 26 0 Yes

(b) Critical path is B–D–E–G

(c) Total project takes 26 days
(d) Slack time: please refer to the above table.

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 CPM Example - 2
• The activities described by the following table are given for the
Standard Task Corp.
Activity Immediate Predecessor (s) Time (Days)
A - 9
B A 7
C A 3
D B 6
E B 9
F C 4
G E,F 6
H D 5
I G,H 3

a) Draw an appropriate AON CPM Diagram for Standard Task Corp’s Management
b) Find the Critical Path
c) What is the project completion time? How can you shorten the project
completion time.
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 CPM Example
Solution: AON network diagram

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 CPM Example
Task Time ES EF LS LF Slack
A 9 0 9 0 9 0
B 7 9 16 9 16 0
C 3 9 12 18 21 9
D 6 16 22 20 26 4
E 9 16 25 16 25 0
F 4 12 16 21 25 9
G 6 25 31 25 31 0
H 5 22 27 26 31 4
I 3 31 34 31 34 0

Activities on the critical path: A, B, E, G, I

Project completion time  34
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 Let’s Recap
• 8.1 Understand Characteristics of a project and
Project Life Cycle
• 8.2 Apply and analyze techniques in project
planning and control; Gantt Chart, CPM, and
Resource Loading
• 8.3 Aware on Project Management Information
Systems

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