Project Management Using Network Analysis

1. Project Management Using Network Analysis By Prof. Nadpurohit

2. Project Planning & Scheduling • CPM & PERT Techniques • WBS • Network drawing • Network Analysis • Updating of Network • Project Cost v/s Project Completion time • Time Cost Trade off • Crashing of Project Completion time • Resource Management • Types of resources • Resource Smoothening & Resource Leveling • Project Control • Earned Value Management System Project Management Using Network Analysis, By Prof. Nadpurohit

3. References: • PMBOK • Project Management by K Nagarajan, New age International Publications • Projects by Dr. Prasanna Chandra Project Management Using Network Analysis, By Prof. Nadpurohit

4. “A Project” Temporary endeavor undertaken to create a unique Product, Service or Result Project Management Using Network Analysis, By Prof. Nadpurohit

5. Project Characteristics Temporary: means every Project has a finite duration (a definite beginning and a definite end). Projects are not ongoing efforts. Temporary characteristics of a Project applies to Opportunity Project team working as a unit Temporary characteristics of a Project does not apply to: Product, Service or result generated by the Project. Project Management Using Network Analysis, By Prof. Nadpurohit

6. Project Characteristics (continued) The driving forces that create stimuli for a Project are typically referred to as Problems, Opportunities or Business requirements. End of Project is reached when Projects objectives have been achieved. When it becomes clear that the Project objectives will not or cannot be met and the Project is terminated. The need for the Project no longer exists and the Project is terminated. Project Management Using Network Analysis, By Prof. Nadpurohit

7. Project Characteristics (continued) Uniqueness an important characteristic of Product, Service or Result Project can create A Product or artifact which is quantifiable, and which is either an end item itself or a component item. A capability to perform a service, such as business functions supporting production or distribution. A result such as outcomes or documents Project Management Using Network Analysis, By Prof. Nadpurohit

8. Relation between Product and Project Life Cycle Upgrade Product Life Cycle Business Plan Operations Divestment IDEA Product Project Life Cycle Initial Intermediate Final Project Management Using Network Analysis, By Prof. Nadpurohit

9. Project v/s Operational work Organization Performs Work to achieve objectives Projects . Temporary and Unique . Purpose to achieve objective And then terminate Operations . Ongoing & repetitive . Objective is to sustain business Both Projects & Operations are performed by people, constrained by resources & are planned, executed and controlled Project Management Using Network Analysis, By Prof. Nadpurohit

10. Some examples of Projects Developing a new Product or Service Effecting a change in organization structure Designing a new transportation vehicle Developing a new or modified Information system Constructing a building Building a water system for a community Running a campaign for a Political Party Implementing a new business Process Responding to a contract solicitation Project Management Using Network Analysis, By Prof. Nadpurohit

11. Projects and Strategic Planning Projects are a means of organizing activities that cannot be addressed with the organizational normal operational limits Projects are often utilized as a means of achieving an organizations strategic plans Project Management Using Network Analysis, By Prof. Nadpurohit

12. Projects and Strategic Planning Strategic considerations that lead to Project authorization . Market demand . Organizational need . Customer request . Technological advance . Legal Requirement Project Management Using Network Analysis, By Prof. Nadpurohit

13. Industrial / Commercial projects are complex in nature. • Handling of these projects calls for a systematic approach which takes into account • Identification of numerous activities • Required time and other resources • Availability of these resources • Coordination and control Project Management Using Network Analysis, By Prof. Nadpurohit

14. Program Evaluation and Review Technique - PERT • Developed by US Department of Navy for their “Polaris missile” program in 1958. • Is a form of network analysis technique consisting of • Translating the proposed job into a model by drawing a network of activities involved. • Evaluating the network and manipulating it to the extent possible so as to ensure that there will be a reasonable chance of achieving the objective (viz. completing the job) with in the constraints of time and other resources. • Using the network to monitor and control the job. Project Management Using Network Analysis, By Prof. Nadpurohit

15. PERT • Is of special relevance to • One-time tasks such as construction of dams, factories, bridges etc. • Manufacture of ships, missiles and such other activities which though repetitive are of huge proportion • R&D projects • Major repairs and overhaul of plant / machinery • Organization of large events / conferences. Project Management Using Network Analysis, By Prof. Nadpurohit

16. Critical Path Method (CPM) • CPM originated in Du Pont de Nemours company almost at the same time in 1958. • CPM is also a Network analysis method and differs from PERT only in the approach to the network analysis. Project Management Using Network Analysis, By Prof. Nadpurohit

17. Gantt Chart • A planning and control tool used for scheduling jobs and depicting the progress made from time to time. • In a Gantt chart, a division of space represents both an amount of time and an amount of work to be done in that time Project Management Using Network Analysis, By Prof. Nadpurohit

18. Project Management Using Network Analysis, By Prof. Nadpurohit

19. Gantt Chart • Merits • Remarkably compact for the amount of information it provides for planning and controlling jobs. • Easy to draw and read • Its pictorial representation of time serves as an aid to minimize idleness and loss of time. • Demerits • Does not depict the interdependencies of jobs • Does not aid getting information on the probability of completion of a job. Project Management Using Network Analysis, By Prof. Nadpurohit

20. Stages in application of PERT/CPM • Drawing the network • The purpose of this is to identify all the events / activities that are essential for completion of a Project and to bring out their interrelationship to satisfy the technological / logical sequencing requirements. • Network Analysis • By incorporating the time required for completing each of the activities in the network, the project duration as well as the criticality of the activity can be found out. At this stage it is also possible to compute the probability of completing the Project or part of the project in a given specified time Project Management Using Network Analysis, By Prof. Nadpurohit

21. Stages in application of PERT/CPM • Resource Allocation and Scheduling • Based on the network calculation and assessment of resources required for each of the activities, the plan is translated into a time schedule. If it is possible to expedite the activities by incurring additional cost, the economics of doing so are also examined before finalizing the schedule. Project Management Using Network Analysis, By Prof. Nadpurohit

22. Stages in application of PERT/CPM • Project control • This stage calls for periodic updating of the network amongst other things to monitor the progress of the Project, and making necessary changes in the schedules to ensure completion of the Project as close to the target time as possible. Project Management Using Network Analysis, By Prof. Nadpurohit

23. Concepts / Definitions • Project Temporary endeavor undertaken to create a unique Product, Service or Result. • Workbreakdown structure (WBS) A work breakdown structure is a deliverable oriented grouping of project elements that organizes and defines the total scope of the project. Work not in the WBS is outside the scope of the project. As with the scope statement, the WBS is often used to develop or confirm a common understanding of project scope. Each descending level represents an increasingly detailed description of the project elements. Project Management Using Network Analysis, By Prof. Nadpurohit

24. Concepts / Definitions • Activity Is a task or item of work to be done, that consumes time, effort, money or other resources. Project Management Using Network Analysis, By Prof. Nadpurohit

25. Concepts / Definitions • Event • Events do not consume resources. • Events are represented by circle • An Event is realized only when all activities terminating at it are completed. Project Management Using Network Analysis, By Prof. Nadpurohit

26. Concepts / Definitions • Network diagram • Shows how the tasks will flow from beginning to end Project Management Using Network Analysis, By Prof. Nadpurohit

27. Steps involved in drawing a Network • Identify the End objective and define the events which are precedent to the End objective • List out the activities required to accomplish these events • Draw the events and activities and connect them according to the defined logic. • Now for every activity answer the following questions • What should precede it • What needs to follow it • What can be done concurrently • Modify redraw the diagram to suit answers for above. • Check for errors • Number the events as per convention. Project Management Using Network Analysis, By Prof. Nadpurohit

28. Activity sequencing: tools and techniques • Network diagram • Shows how the tasks will flow from beginning to end • Types • Precedence diagramming method (PDM) • Arrow diagramming method (ADM) Project Management Using Network Analysis, By Prof. Nadpurohit

29. A C finish start D B Activity sequencing: tools and techniques • Precedence diagramming method (PDM) : method of constructing a project network diagram to represent the activities using nodes and to represent dependencies using arrows • Also called activity on node Project Management Using Network Analysis, By Prof. Nadpurohit

30. Activity sequencing: tools and techniques • PDM could have four types of dependencies • Finish-to-start • Finish-to-finish • Start-to-start • Start-to-finish Project Management Using Network Analysis, By Prof. Nadpurohit

31. Activity sequencing: tools and techniques • Arrow diagramming method (ADM) : method of constructing project network diagram using arrows to represent activities and connecting them at nodes to show their dependencies. The nodes are Events Project Management Using Network Analysis, By Prof. Nadpurohit

32. 5 The number 5 over the arrow indicates the Time required for completion of the activity Concepts / Definitions • Activity Is a task or item of work to be done, that consumes time, effort, money or other resources. It is represented by an arrow with its head indicating direction of the progress in the project. i.e. The tail of the arrow marks the commencement of the activity and the Head of the arrow marks the completion of the activity. Project Management Using Network Analysis, By Prof. Nadpurohit

33. Tail Event 1 Head Event 2 A Activity 5 Activity A or 1-2 requiring 5 units of time, Event 1 Event 2 Concepts / Definitions • Event • An activity is bound by 2 events referred to as Tail event and Head event. • Events do not consume resources. • Events are represented by circle • An Event is realized only when all activities terminating at it are completed. Project Management Using Network Analysis, By Prof. Nadpurohit

34. 2 D A E B 1 4 5 C F G 3 Concepts / Definitions • Network • A network is a graphic representation of a Project’s operation and is composed of activities and events Event 1 is Start of Project and does not have any activity before it Event 5 is End of Project and does not have any activity after it F is a Dummy activity It does not consume any resource It is introduce in Network to preserve logic Project Management Using Network Analysis, By Prof. Nadpurohit

35. Rules for drawing a Network • Only 1 activity may connect any 2 Events • Except for the Start and the End event, every event must have at least 1 activity entering it and at least 1 activity leaving it. • Every activity must have a Tail event and a Head event. • There must be no loops in the Network, i.e. no continuous path must go through one Event 2 times. Project Management Using Network Analysis, By Prof. Nadpurohit

36. 1 2 3 NetworkErrors in drawing Network - Looping How to determine Looping in a Network Head event must always have number higher than Tail event Project Management Using Network Analysis, By Prof. Nadpurohit

37. 1 2 3 Event 1 is Start of Project Event 3 is end of Project 4 NetworkErrors in drawing Network - Dangling Ways to avoid Dangling a) All Activities must start and finish with an Event b) Except for the Start and End Event, each event must have at least 1 activity entering and 1 activity leaving it. Project Management Using Network Analysis, By Prof. Nadpurohit

38. C D E F G I B B A A F F G H E C F 4 G 2 A I E H 1 5 6 C B D 3 Project Management Using Network Analysis, By Prof. Nadpurohit

39. G H H D C B G A E G B F I F D • A Project consists of a series of activities labeled A, B, C, D, E, F, G, H, and I. The interdependency of activities is as follows A<D,E; B,D<F; C<G; B<H; F,G<I and G<H. 2 E A D 5 F 1 9 B D1 4 D2 H 7 I C G 8 D3 D4 3 6 Project Management Using Network Analysis, By Prof. Nadpurohit

40. G(19) H(4) D1 C(20) D2 B(8) F(18) I(10) E 0 E E E E E A(23) 5 1 6 3 4 7 2 D(16) L 0 L L L L L E(24) Earliest Event Time Latest Event Time Project Management Using Network Analysis, By Prof. Nadpurohit

41. G(19) H(4) D1 C(20) D2 B(8) F(18) I(10) E E 0 E E E E A(23) 7 4 6 1 3 2 5 D(16) L L L L L 0 L E(24) Determination of Earliest Event Time of Event Start from the 1st Event i.e. Start of the Project. The Earliest Event time for it = 0 Consider the next event 2. Consider all activities terminating at that event i.e. C. C starts at event 1 and requires 20 days. For event 2 occur activity C has to be completed. Hence event 2 can occur only after the time event 1 has occurred and after C is completed i.e after 0 + 20 days = 20 days Similarly event 3 will occur after event 1 has occurred and activity A is completed i.e. after 0 +23 days = 23 days For event 4 to occur we need to complete activities B and D. The earliest that event 4 can occur is after the completion of activity B and D. i.e. Maximum of (0 + 8), (23 + 16) = 39 days Project Management Using Network Analysis, By Prof. Nadpurohit

42. 20 39, 39 8,39 43, 67, 47 39, 57 G(19) H(4) D1 C(20) D2 B(8) F(18) I(10) 23 67 39 0 23 57 39 20 A(23) 7 4 1 6 3 2 5 D(16) L L L L L L 0 E(24) Hence earliest completion of Project time is 67 days Project Management Using Network Analysis, By Prof. Nadpurohit

43. G(19) H(4) C(20) D1 D2 B(8) F(18) I(10) A(23) D(16) E(24) 67 39 0 20 23 39 57 4 7 1 6 2 3 5 L L 0 L L L L Determination of Latest Event Time of Event Start from the last Event i.e. End of the Project. The Latest Event time for it = Project completion time = 67 days Consider the next earlier event 6. Consider all activities starting from that event i.e. I. I requires 10 days. Latest time that event 6 can occur With out delaying the Project completion time is 67 – 10 = 57 days Similarly Latest Time for event 5 = Minimum of (57 – 0) or 67 – 4 = 57 days. For event 4 Latest time is Minimum of (57 – 0) or (57 – 18) = 39 days For event 3 the latest event time = Minimum of (39 – 16) or (67 – 24) = 23 days For event 2 the latest event time = 57 -19 = 38 days For event 1 Latest time is Minimum of (38 – 20), (39 – 8), (23 – 23) = 0 Project Management Using Network Analysis, By Prof. Nadpurohit

44. 57, 63 38 G(19) H(4) C(20) 39, 57 57 D1 0, 31, 18 D2 B(8) F(18) I(10) 23, 43 A(23) D(16) E(24) 67 39 0 57 23 39 20 4 7 5 6 1 2 3 39 67 0 38 57 23 57 Project Management Using Network Analysis, By Prof. Nadpurohit

45. G(19) H(4) C(20) D1 D2 B(8) F(18) I(10) A(23) D(16) E(24) 67 39 0 20 39 23 57 4 7 6 2 5 3 1 67 39 0 38 23 57 57 Activities that have Total float = 0 or No Slack available are the activities on the critical path. Hence Critical path is A-D-F-I Project Management Using Network Analysis, By Prof. Nadpurohit

46. F (5) A (7) B (6) E (3) I (10) 8 28 17 12 7 0 8 6 3 2 1 5 4 7 C (8) 8 13 15 0 28 12 18 K (3) D H (5) J (16) G (4) Free Float, Interference Float, Independent Float Activity I: Total Float = 28 – 17 - 10 = 1 day Activity F: Total Float = 18-7-5 =6 days If F absorbs all its float then I has no float, but if F absorbs only 5 days of its float then I still has its 1 day float The float in an activity which can be used with out affecting float of any succeeding activity is called as Free Float Interference Float = Difference between Total float and Free float Consider activity K: If the tail event of this K activity is reached as late as possible and the Head event of the activity starts as early as possible then the float for K is 17-8-3 = 6 days. This float of 6 days whose absorption does not affect neither preceding activity nor the subsequent activity is called Independent Float Total Float = Free float + Interference Float Total Float = Lj – Ei – t, Free Float = Ej – Ei – t,. Interference Float = Lj – Ej,, Independent Float = Ej – Li - t Project Management Using Network Analysis, By Prof. Nadpurohit

47. UPDATING PROJECT • Can be done in 2 ways • Use the revised time estimate of incomplete activities and calculate from initial event the earliest completion time and the latest completion time of each event in the usual manner to know the Project completion time. • Change the complete work to zero duration and represent all the activities already finished by an arrow called the Elapsed time arrow. Events in the revised network are renumbered. Project Management Using Network Analysis, By Prof. Nadpurohit

48. 3 7 12 3 8 10 6 4 9 2 3 0 13 7 16 14 24 34 19 7 8 5 3 2 9 1 7 4 6 8 16 3 15 26 7 34 13 0 24 5 • The network for a project is shown below. A review of the project after 15 days reveals that • Activities 1-2, 1-3, 2-3, 2-4 and 3-4 are completed. • Activities 3-5 and 4-6 are in progress and need 2 and 4 days more resp. • The revised estimate shows that activity 8-9 will take only 8 days but activity 7-9 will need 10 days. • Draw the new network after updating the Project and determine the Critical path. Network at the start of the Project Project Management Using Network Analysis, By Prof. Nadpurohit

49. 3 7 12 3 8 10 6 4 9 2 35 16 27 3 13 22 15 0 14 19 7 19 17 13 24 7 34 3 0 15 7 8 4 3 9 6 2 1 5 8 14 7 16 2 3 17 13 18 1 15 19 4 19 16 0 34 3 24 26 13 18 7 15 25 15 7 0 27 13 3 35 15 5 Network at the start of the Project Updated Network after day 15 of the Project (Finished 4-6) 2 New critical path 1-2-3-4-14-16-18-19 Project duration increased by 1 day to 35 days 4 7 12 3 8 8 6 4 9 2 10 (Finished 3-5) 8 2 5 Project Management Using Network Analysis, By Prof. Nadpurohit

50. 3 7 12 3 8 12 10 6 4 4 8 9 8 2 15 7 3 13 24 16 34 14 19 0 15 27 22 17 19 35 0 7 8 4 8 7 6 5 3 2 1 9 1 10 18 16 17 19 15 9 5 0 34 24 7 3 15 26 13 16 35 18 25 19 15 0 27 10 2 5 Network at the start of the Project 2nd Method Updated Network after day 15 of the Project New critical path 1-10-16-18-19 Project duration increased by 1 day to 35 days Project Management Using Network Analysis, By Prof. Nadpurohit