Colonel Dr Zulfiquer Ahmed Amin

M Phil, MPH, PGD (Health Economics), MBBS

Armed Forces Medical Institute (AFMI)

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 Project Management?

Project management is the application of the ‘functions of

management’ to get a project done.

A key factor that distinguishes ‘project management’ from just

'management' is that it has ‘final deliverable’ and a ‘finite timespan’,
unlike management which is usually an ongoing process.

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 Project Management?

Project management is the practice of planning, initiating,

executing, controlling, and closing the work of a team to achieve
specific goals at the specified time.

A project is a temporary endeavor designed to produce a unique

product, service or result with a defined beginning and end,
undertaken to meet unique goals and objectives.

The ‘temporary nature of projects’ stands in contrast with business

as usual (or operations), which are repetitive, permanent, or semi-
permanent functional activities to produce products or services.

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A project is unique in that it is not a routine operation, but a specific
set of operations designed to accomplish a singular goal.

So a project team often includes people who don’t usually work

together – sometimes from different organizations and across
multiple geographies and disciplines.

And all must be expertly managed to deliver the right quality, on-
time, on-budget results.

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Scope of a Project

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 Project vs Program

A project is a singular effort of defined duration, whereas a program

is comprised of a collection of projects.

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Personal Computer Development Program 8
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 Project Management Tools

-Project management is a challenging task with many complex

responsibilities.
-Fortunately, there are many tools available to assist with
accomplishing the tasks and executing the responsibilities.
-Project managers should choose a project management tool that
best suits their management style. No one tool addresses all project
management needs.
-Project management tools and techniques include PERT, CPM,
KANBAN, SWOT Analysis and the Gantt-chat etc.

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Network diagrams are one of the project management tools a project
manager uses for project planning. It is also sometimes referred to as
an “Arrow” diagram, because it uses arrows to connect activities and
represent precedence and interdependencies between activities of a
project.

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 PERT
The Project Evaluation and Review Technique, commonly
abbreviated PERT, is a statistical tool, used in project management. It
was developed for the U.S. Navy Special Projects Office in 1957 to
support the U.S. Navy's Polaris nuclear submarine project. An early
example was, it was used for the 1968 Winter Olympics in Grenoble,
France.

The PERT, is a form of the ‘Network Diagram’ project management

tools. PERT is used for identifying the critical path for the project. This
technique was developed to simplify planning and scheduling large
and complex projects and creating more realistic estimates towards
the duration of each activity.

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Probabilistic ‘Time-Estimate’ in PERT

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PERT Chart Software is available 15
It is used more in projects where time is the major factor rather than
cost. It is applied to very large-scale, one-time, complex, non-routine
infrastructure and Research and Development projects. PERT and
CPM are complementary tools, because

-CPM employs one time estimate and one cost estimate for each
activity;
- PERT utilize three time estimates (optimistic, expected (Most Likely),
and pessimistic) and no costs for each activity.

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A PERT network chart for
- a seven-month project
- with five milestones (Nodes: 10 through 50)
- and six activities (Arrows: A through F)

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Steps in PERT
6. Update the PERT chart as the project progresses. 20
1. Identify the specific activities and milestones.
The activities are the tasks required to complete a project. The
milestones are the events marking the beginning and the end of the
activities.

2. Determine the proper sequence of the activities.

It may require more analysis to determine the exact order in which
the activities must be performed.

3. Construct a network diagram.

Using the activity sequence information, a network diagram can be
drawn showing the sequence of the serial and parallel activities.

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 Time estimates Expected
Activity Predecessor
Opt (o) Expected (m) Pess (p) time
te = (o + 4m + p) ÷ 6

A — 2 4 6 4.00
B — 3 5 9 5.33
C A 4 5 7 5.17
D A 4 6 10 6.33
E B, C 4 5 7 5.17
F D 3 4 8 4.50
G E 3 5 8 5.17

Example
In the above example there are seven tasks, labeled A through G. Some
tasks can be done concurrently (A and B), while others cannot be done until
their predecessor task is complete (C cannot begin until A is complete).
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Additionally, each task has three time estimates: the optimistic time
estimate (o), the most likely or expected time estimate (m), and the
pessimistic time estimate (p). The expected time (te) is computed
using the formula (o + 4xm + p) ÷ 6.

The time estimates provide managers for the various activities

comprising a project involve different degrees of certainty. When
time estimates can be made with a high degree of certainty, they
are called deterministic estimates. When they are subject to
variation, they are called probabilistic estimates.
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4. Estimate the time required for each activity.
Weeks are a commonly used unit of time for activity completion. A
distinguishing feature of PERT is its ability to deal with uncertainty in
activity completion time.

5. Determine the critical path.

The critical path is determined by adding the times for the activities in
each sequence and determining the longest path in the project. If
activities outside the critical path speed up or slow down (within
limits), the total project time does not change.

6. Update the PERT chart as the project progresses.

Make adjustments in the PERT chart as the project progresses. In cases
where there are delays, additional resources may be needed to stay on
schedule.
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 Important Nomenclature
‘Slack’ and ‘Float’
In project management, the terms ‘slack’ and ‘float’ describe the
length of time that an activity can be delayed without delaying the
finish date of a subsequent activity, or the finish date of the entire
project. Float or slack is a measure of the excess time and resources
available to complete a task.

Positive slack would indicate ahead of schedule; negative slack would

indicate behind schedule; and zero slack would indicate on schedule.

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Slack versus Float
The difference between the length of a given path and the length of
the critical path is known as slack. Knowing where slack is located
helps managers to prioritize allocation of scarce resources and
direct their efforts to control activities.

The terms "slack" and "float" are often used interchangeably.

However, the essential difference between the terms is that slack is
typically associated with inactivity, while float is associated with
activity. Slack time allows an activity to start later than originally
planned, while float time allows an activity to take longer than
originally planned.
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Critical path: The longest possible continuous pathway taken from
the initial event to the terminal event. Any time delays along the
critical path will delay the reaching of the terminal event.

The project has two critical paths:

activities B and C, or A, D, and F – giving a
project time of 7 months. Activity E is sub-
critical, and has a float of 1 month

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Fast tracking:
A schedule compression technique in which activities normally done
in sequence are performed in parallel for at least a portion of their
duration. To do more things in the same time in order to finish a job
earlier than normal or planned.

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Crashing: A technique used to shorten the schedule duration by
adding resources. Shortening the durations of critical path activities
by adding resources.

Additional resources include:

- Additional manpower
- Overtime work
- Paying extra
- Adding more resources

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Lead Time
When the first activity is still running and second activity starts, this
is called Lead. Lead Time is the overlap between the first and
second activity.

For example, let us say that the time duration for the first activity is
20 days, and for the second activity it is 15 days. As the first activity
completes its first 15 days, you start working on the second activity.
(Thus, we have 5 days lead time).

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Lag Time
When the first activity completes, if there is then a delay or wait
period before the second activity starts, this is called lag and the
delay is known as the Lag Time.

For example, the time duration for the first activity is 3 days, and for
the second activity it is 2 days. After completing the first activity you
wait for 1 day, and then you start the second activity.
In this case, we say that Lag Time is one day, or Finish to Start activity
with one day delay or lag.

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 Disadvantages of PERT

-Because of its emphasis on “activity-time” to its operation, PERT is

not useful when no reasonable estimates of time schedule can be
made.
-Another disadvantage has been its emphasis on time only but not
on costs.

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Critical Path Method
Critical Path method, or CPM, is an important project planning tool to
monitor the progress of the project to ensure that the project is on
schedule.

The Critical Path for a project is the longest sequence of activities on

the network diagram and is characterized by zero Slack for all
activities on the sequence. This means that a smallest delay in any of
the activities on the critical path will cause a delay in the overall
timeline of the project.

If needed, the project manager can divert resources from other

activities that are not on the critical path to activities on the critical
path to ensure that the project is not delayed.

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History
The critical path method (CPM) is a project modeling technique
developed in the late 1950s by DuPont, and was first used in missile-
defense construction projects of US Navy.
Critical Path Analysis is commonly used with all forms of projects,
including construction, aerospace and defense, software
development, research projects, product development, engineering,
and plant maintenance, among others. Any project with
interdependent activities can apply this method.

The first time CPM was used for major skyscraper development was
in 1966 while constructing the former World Trade Center Twin
Towers in New York City.

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Components
The essential technique for using CPM: is to construct a model of
the project that includes the following:
1.A list of all activities required to complete the project (typically
categorized within a work breakdown structure),
2. The time (duration) that each activity will take to complete,
3. The dependencies between the activities and,
4. Logical end points such as milestones or deliverable items.

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Critical Path and Float Analysis
The critical path is the sequence of activities with the longest
duration. A delay in any of these activities will result in a delay for
the whole project.

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 To Determine Float

Activities 2, 3, and 4 are on the critical path so they have a float of zero.
The next longest path is Activities 1, 3, and 4. Since Activities 3 and 4 are
also on the critical path, their float will remain as zero. For any remaining
activities, in this case Activity 1, the float will be the duration of the
critical path minus the duration of this path. 14 - 12 = 2. So Activity 1 has
a float of 2. 40
The next longest path is Activities 2 and 5. Activity 2 is on the critical
path so it will have a float of zero. Activity 5 has a float of 14 - 9,
which is 5.
So as long as Activity 5 doesn't slip more than 5 days, it won't cause a
delay to the project.
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 Calculate Early Start (ES) and Early Finish (EF)

To calculate the ‘Early Start’ and ‘Early Finish’ dates, we use ‘forward
pass’ (Start from the beginning and proceed to the end).

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The formula used for calculating Early Start and Early Finish dates:
● Early Start of the activity = (Early Finish of predecessor activity + 1).

(The start point for any activity or step along the path is the end point
of the predecessor activity on the path plus one).

●Early Finish of the activity = (Early Start of activity + Activity

duration – 1)

Easy to Remember: Start= (+1). Finish= (-1)

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 Early Start and Early Finish Dates for the path Start -> A -> B -> C -> End

Early Start of activity A = 1 (Since this is the first activity of the path)
Early Finish of activity A = ES of activity A + activity duration – 1
= 1 + 10 – 1 = 10
Early Start of activity B = EF of predecessor activity + 1
= 10 +1 = 11
Early Finish of activity B = ES of activity B + activity duration – 1
= 11 + 12 – 1 = 22
Early Start of activity C = EF of predecessor activity + 1
= 22 +1 = 23
Early Finish of activity C = ES of activity C + activity duration – 1
= 23 + 9 – 1 = 31 44
Early Start and Early Finish Dates for the path Start -> D -> E -> F -> End

Early Start = (ES)

Early Finish = (EF)

ES of activity D = 1 (Since this is the first activity of the path)

EF of activity D = 1 + 5 – 1 = 5
ES of activity E = EF of predecessor activity + 1
Since the Activity E has two predecessor activities, which one will you select? You will select
the activity with the greater Early Finish date. Early Finish of activity D is 5, and Early Finish of
activity G is 3.
Therefore, we will select the Early Finish of activity D (Greater Value).
ES of activity E = EF of predecessor activity + 1 = 5 + 1 = 6
EF of activity E = 6 + 7 – 1 = 12
ES of activity F = 12 + 1 = 13
EF of activity F = 13 + 6 -1 = 18
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Early Start and Early Finish Dates for the path Start -> G -> H -> I -> End

Early Start of activity G = 1 (Since this is the first activity of the path)
Early Finish of activity G = 1 + 3 – 1 = 3
Early Start of activity H = 3 + 1 = 4
Early Finish of activity H = 4 + 4 – 1 = 7
Early Start of activity I = 7 +1 = 8
Early Finish of activity I = 8 + 6 – 1 = 13
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 Calculating Late Start (LS) and Late Finish (LF)

To calculate the Late Start and Late Finish, we use ‘backward pass’
(start from the last activity and move back towards the first activity).

The formula used for Late Start and Late Finish dates:
● Late Start of Activity = Late Finish of activity – activity duration + 1
● Late Finish of Activity = Late Start of successor activity – 1

Late Finish of the last activity in any path will be the same as the Late
Finish of the last activity on the critical path, because we cannot
continue any activity once the project is completed.

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Late Start and Late Finish Dates for the path Start -> A -> B -> C -> End

● Late Start of Activity = Late Finish of activity – activity duration + 1

● Late Finish of Activity = Late Start of successor activity – 1

On a critical path, Early Start, and Early Finish dates will be the same
as Late Start and Late Finish dates.
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Late Start and Late Finish Dates for the path Start -> D -> E -> F -> End

Late Finish of activity F = 31 (because you cannot allow any activity to cross the
project completion date)
Late Start of activity F = LF of activity F – activity duration + 1
= 31 – 6 +1 = 26
Late Finish of activity E = LS of successor activity – 1
= LS of activity F – 1
= 26 – 1 = 25
Late Start of Activity E = LF of activity E – activity duration + 1
= 25 – 7 + 1 = 19
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At this network diagram, you will notice that activity D has two
successor activities, B and E. So, which activity will you select?
We will select the activity with the Least Late Start time. Here, Late
Start of activity B is 11, and Late Start of activity E is 19. Therefore,
you will select activity B which has the Least Late Start date.
Hence, Late Finish of activity D = LS of activity B – 1 = 11 – 1 = 10
Late Start of Activity D = LF of activity D – activity duration + 1 = 10 –
5+1=6
(With 2 successor activities - Easy to remember: Least will be for Late
start and Late Finish)
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Late Start and Late Finish Dates for the path Start -> G -> H -> I -> End

Late Finish of activity I = 31 (because you cannot allow any activity to cross the project
completion date)
Late Start of activity I = 31 – 6 + 1 = 26
Late Finish of activity H = 26 – 1 = 25
Late Start of activity H = 25 – 4 + 1 = 22
Late Finish of Activity G = 19 – 1= 18 (we will choose the late start of activity E, not activity
H, because the Late Start of activity E is smaller than the Late Start of activity H)
Late Start of activity G = 18 – 3 + 1 = 16
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Data Entry Window

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Output of the Package

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 Benefits of the Critical Path Method

- It shows the graphical view of the project.

- It discovers and makes dependencies visible.
- It helps in contingency planning.
-It shows the critical path, and identifies critical activities requiring
special attention.
- It helps assign the float to activities.
- It shows where you to take action to bring project back on track.
- To shorten the planned critical path of a project by:
● ‘Pruning’ (Trimming and cutting) critical path activities
†● “Fast tracking" (To do more things in the same time in order to
finish a job earlier than normal or planned.)
†●“Crashing the critical path" (Shortening the durations of critical path
activities by adding resources).

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 Limitations and drawbacks of the CPM

-Because the critical path method is an optimal planning tool, it

always assumes that all resources are available for the project at all
times.
- There are chances of misusing float or slack.
-Less attention on non-critical activities, though sometimes they may
also become critical activities.
- Projects based on the critical path often fail to be completed within
the approved time duration.

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 Comparison Chart

Basis for
PERT CPM
Comparison
CPM is a statistical
PERT is a project management technique of project
Meaning technique, used to manage management that
uncertain activities of a project. manages well defined
activities of a project.
A technique of planning and A method to control
What is it?
control of time. cost and time.
Orientation Event-oriented Activity-oriented
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off

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Basis for Comparison PERT CPM
Estimates Three time estimates One time estimate
High precision time Reasonable time
Appropriate for
estimate estimate
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non-critical
No differentiation Differentiated
activities
Non-research projects
Research and
Suitable for like civil construction,
Development Project
ship building etc.

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