Project & Operations Management
Project & Operations Management
Project & Operations Management
Project
&
Operations Management
Project Planning and Control
Project & Operations Management
Block
II
PROJECT PLANNING AND CONTROL
UNIT 6
Management of Project Scope 1-29
UNIT 7
Identifying Project Activities 30-50
UNIT 8
Activities: Sequencing, Estimating Duration,
and Scheduling 51-108
UNIT 9
Project Review 109-130
UNIT 10
Project Control 131-174
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BLOCK II: PROJECT PLANNING AND CONTROL
The second block of the course on Project & Operations Management deals with
project planning and control. The block contains five units. The first unit focuses
on the management of the project scope. The second unit examines the
identification of the project activities. The third unit discusses activity
sequencing, duration estimation and activity scheduling. The fourth and fifth
units of the block explain project review and project control, respectively.
The first unit, Management of Project Scope, discusses the project initiation
process and defines project deliverables. The unit focuses on scope planning and
approval of the project overview statement. It also deals with the project
definition statement. The unit also provides an idea about scope verification and
scope change control.
The second unit, Identifying Project Activities, deals with the definition of an
activity. The unit explains work breakdown structure (WBS) and its
development. It also discusses the various tests for completeness of
decomposition of activities. Finally, the unit provides an idea about the various
approaches to defining deliverables in the WBS and about representing the
WBS.
The fourth unit, Project Review, explains the importance of project review. The
unit discusses the various types of project reviews and the different stages
involved in project review. The unit also deals with project status review
meetings and the advantages of conducting them. Finally, the unit explains the
various types of project status meetings.
The fifth unit, Project Control, explains the fundamentals of project control. The
unit explains the objectives of control, control as a function of management and
differentiates between control and risk. The unit also discusses the reasons for
measuring duration and cost deviations. It deals with ways to balance the control
system and control change. The unit also defines progress reporting system and
describes the various types of project status reports. It provides information on
the graphical reporting tools and project status review meetings. Finally, the unit
explains the different ways to manage risk and quality.
Unit 6
Management of Project Scope
Structure
6.1 Introduction
6.2 Objectives
6.3 Project Initiation
6.4 Defining Project Deliverables
6.5 Scope Planning
6.6 Approval of POS
6.7 Project Definition Statement
6.8 Scope Verification
6.9 Scope Change Control
6.10 Summary
6.11 Glossary
6.12 Self-Assessment Exercises
6.13 Suggested Reading/Reference Material
6.14 Answers to Check Your Progress Questions
6.1 Introduction
In the last unit of the previous block, we have discussed about project selection.
In this unit, we will discuss the management of project scope. Scope is a brief
and accurate description of the end-products or deliverables to be expected from
a project. It describes all the activities that have to be performed and identifies
the resources that will be utilized for the successful completion of the project.
Scope is also concerned with target outcomes, prospective customers, outputs
and the financial and human resources required for completing the project.
The project manager and the client have to jointly discuss the objectives of the
project. Exchanging views and information will enable them to determine the
purpose of the project. This exchange of information will also help the project
manager understand the client’s expectations of the project and make the client
aware of the project manager’s method for executing the project. On the basis of
this discussion, the client and the project manager prepare a project goal. They
also identify a number of objectives that will help them reach that goal. The
project goals, together with the objectives, determine the scope of the project.
This unit will discuss project initiation process and define project deliverables. It
will then discuss scope planning and approval of the project overview statement.
Then it will explain about the project definition statement. Finally, it would be
discussing about scope verification and scope change control.
Project Planning and Control
6.2 Objectives
By the end of this unit, students should be able to:
6.4.1 Request
In the first step, the client requests the project manager to undertake a project as
per his/her requirements.
6.4.2 Clarification
In the second step, the project manager explains what he/she has understood by
the request made by the client. This step is over only when the client feels that
the project manager has understood the request made by him/her.
6.4.3 Response
In the third step, the project manager explains what he/she can do to fulfill the
client’s request. He/she informs the client of his/her capabilities, his/her
schedule, and fees for undertaking the project.
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Management of Project Scope
6.4.4 Agreement
Based on the project manager’s response, both parties continue their discussions. If
both parties are still willing to ahead with the project, they establish the project norms
in this step.
Finally, both parties examine each other’s requests closely to determine how the
project should be executed. The final agreement is documented in the “Project
Overview Statement”.
Answer:
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Project Planning and Control
8. The final agreement between the project manager and the client regarding
the project is documented in the
a. project plan.
b. aggregate project plan.
c. project progress report.
d. project overview statement.
9. In which of the following steps in developing the list of deliverables does
the project manager explain what he/she has understood by the request made
by the client?
a. Request
b. Clarification
c. Response
d. Agreement
The ‘scope’ of a project can be divided into ‘product scope’ and ‘project scope’.
Product scope details all the functions and features that are to be included in a
product or service of a project. Project scope, however, details the work to be
done to deliver a required product with specific features. The tools and
techniques for managing product scope vary with the nature of the project.
the project and describe how that goal can be achieved. It should be expressed in
a clear and precise manner so that all the project stakeholders understand what
the project is all about. POS should describe what the project is, why it is being
taken up, and what value it brings to the firm. All future decisions regarding the
execution of the project and allocation of necessary resources will be based on
the POS.
A Project Overview Statement is not a static document. As the project
progresses, it has to be revised or redefined. This is because over time the
situation may change and the POS should be documented accordingly.
Depending on the circumstances, it can be modified or rewritten, taking into
consideration the opinions of all the project stakeholders. The scope statements
of large, technological projects often have to be modified because of the high
rate of technological change. The POS should be able to resolve any conflicts
and misunderstandings that may arise among the project members.
6.5.3 Parts of POS
In general, the Project Overview Statement consists of five parts – project
problem/ opportunity; project goal; project objectives; success criteria; and
assumptions, risks, and obstacles.
The POS first identifies the reasons for undertaking the project and then
proceeds to identify the project’s goal. The ‘project goal’ is further broken down
into a number of project objectives. The POS also mentions the criteria for the
success of the project and the various risks, obstacles involved in the execution
of the project.
State the Project Problem/Opportunity
The first part of a Project Overview Statement (POS) states the problem or
opportunities that the project is going to address. This statement need not be
defined rigidly. It should be written in such a way that all project stakeholders
are able to understand it.
The gravity of the problem or the business value of the opportunity stated in this
part will play a major role in getting the attention of the top management. Some
of the situations that give rise to the problems or opportunities that form the
basis of POS are discussed below.
Existing problem/opportunity areas: The POS can address any of the problems
that the firm faces and offer a full or partial solution to the problems. If there are
any opportunities in the market, the POS should explain how the firm can take
advantage of the situation.
Customer request: Any of the requests made by the firm’s internal or external
customers can be mentioned in the ‘list of deliverables’ of a POS. The POS is
thus a useful tool for forwarding customer requests to top management.
Corporate initiative: Employees are encouraged to submit their project ideas in a
POS format. Senior management can then prioritize these proposals and identify
the best proposal or idea for further consideration.
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Management of Project Scope
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Project Planning and Control
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Management of Project Scope
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Success Criteria
The fourth part of the POS explains why the project is being taken up. It
describes the business value of the project to the project firm and indicates when
the project can be said to have successfully achieved its objectives. While
preparing this part, the project manager should ensure that the success criteria
are quantifiable and measurable. The success criteria of a project can be:
increase in revenue, increase in market capitalization, etc. The success criteria
should identify the exact benefits that the project can bring to the firm. Success
criteria can also be presented in terms of quantifiable statements like reduced
turnaround time to service a customer, decreased error rates, etc.
On the basis of the success criteria, the top management determines the business
value of the project and allocates resources accordingly. For example, the
success criteria can be written as follows: launching this innovative product in
place of the present product will increase the firm’s sales by 5 percent. If the top
management of the firm is satisfied with the success criteria mentioned in the
POS, it may ask the project manager to explain, in detail, how he plans to
achieve the business value identified in the POS (i.e. an increase in the firm’s
sales). If top management is not satisfied with the success criteria mentioned in
the POS, it might reject the project.
Assumptions, Risks and Obstacles
The fifth section of the POS mentions all the organizational or environmental
factors that may affect the outcome of the project. The project manager uses this
section of the POS to alert senior management about the risks or obstacles that
may influence the project’s activities. This part of the POS also mentions the
contingency plans to be prepared to reduce the impact of the above risks on the
project.
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Management of Project Scope
Some aspects of projects that are risk prone are discussed below.
Technological aspects: If the project firm does not have any experience in
handling new technology, then the project manager should not choose
technology-related projects. Since it is difficult to manage technical projects,
non-technical firms do not encourage such projects.
Environmental aspects: To design a good POS, the project manager should
understand the environment in which the project operates. Suppose the project
sponsor suddenly leaves the project, the POS should solve this problem by
recommending an alternative sponsor. It should also discuss how the right
people can be acquired to work in crucial areas of the project.
Interpersonal aspects: Good interpersonal relationships among project team
members are essential for the success of any project. All interpersonal problems
should be brought to the attention of top management.
Cultural aspects: The POS should mention how the proposed project is suitable
for the firm. If the project deliverables are completely different from what the
firm is producing, then the project may not be accepted by top management.
Causal relationships: The solutions provided for correcting project problems
depend on several assumptions. So, the project manager should mention the
variables that are likely to affect the assumptions made in the project.
Usually, project managers submit a POS that is only one page long. But top
managers often request a more detailed POS that provides additional information
about the business value of the project. Apart from the POS, the top management
usually requests the project manager to submit risk analysis and financial
analysis reports. These reports help managers assess the economic value of the
project.
Risk Analysis
This report describes the various risks associated with proposed project
activities, their probability of occurrence and their severity. Particularly, in
highly technical projects, the project manager should explain all the possible
risks and their likely impact on project results. Formal procedures should also be
mentioned to effectively deal with these risks in the POS.
This analysis also describes risk identification techniques, risk quantification,
and other risk control measures. The project manager also prepares a
contingency plan for dealing with risks. The top management of the firm
analyzes all these risks before accepting the project.
Financial Analysis
The project manager also submits a financial analysis of the proposed project as
an attachment to the POS. The following financial aspects of a project are
analyzed:
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Project Planning and Control
Answer:
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Management of Project Scope
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24. Arrange the following options based on the sequence in which the project
manager conducts a feasibility analysis of the project.
i. Rank the alternative solutions
ii. Define the scope of the project, what it includes and what it does not
iii. Define the problem/opportunity clearly
iv. State the expected time and costs required
v. List the recommendations
vi. Project the profits from the project
vii. Identify alternative solutions for the problems
a. iii-i-vii-ii-v-iv-vi
b. iii-ii-vii-i-iv-vi-v
c. iii-v-ii-iv-vi-i-vii
d. iii-iv-vi-v-i-vii-ii
25. Which among the following analyses is/are used to assess the economic
value of the project?
a. Risk analysis
b. Financial analysis
c. Critical path method
d. Both (a) and (b)
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Management of Project Scope
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Project Planning and Control
Unlike the POS, the PDS is circulated only among the members of the project
team. As a result, technical jargon is used in the document. Since the POS does
not the provide project teams the level of detail required, PDS works as a more
useful tool in project execution.
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Management of Project Scope
i. The project manager should draft the POS in such a way that the top
management can easily understand it.
ii. The project manager persuades the management to approve the project.
iii. The project manager directs the entire project team.
iv. The project manager closes the project by satisfying the client.
a. Only i, ii, and iii
b. Only i, iii, and iv
c. Only ii, iii, and iv
d. i, ii, iii, and iv
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Project Planning and Control
(by the courts) are some of the external events that can change the scope of a
project. Errors made in defining a project’s product (functions, characteristics,
etc.) and errors made in defining the project’s scope (using a list of deliverables
in place of WBS) constitute internal reasons that lead to changes in project
scope.
Scope change also occurs when a new process that adds value to the project
become available. For example, some new technology that could improve the
execution of the project may become available after the project has been
initiated. Naturally, the project manager would like to take advantage of the
technological change to add value to the project.
The project manager uses a ‘Scope change control system’ to control changes to
the scope of a project. The scope change control system defines the procedures
by which the scope of a project can be changed. The scope change control
system includes paper work, tracking systems, and levels of approval necessary
for authorizing the changes.
Performance techniques like variance analysis, trend analysis, and earned value
analysis help the project manager assess the magnitude of the variations that
occur. The project manager then notes down all the causes of the variations and
takes corrective action.
The scope changes made to the already approved plans (technical plans, financial
plans etc.) are also updated. Then all project stakeholders are informed of the
changes. The causes of variances and the corrective actions taken are
documented for future reference.
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Management of Project Scope
Alternatives: If there are any alternatives, note them here, along with their
impact on cost, effort and duration.
Final Resolution: Briefly describe how the scope change was resolved.
Approval from Sponsor for Final Resolution: Signifies that the Project
Sponsor agrees to the resolution, including any budget, effort and / or
duration implications.
Adapted from http://www.tenstep.com.
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Project Planning and Control
a. contract files.
b. change requests.
c. performance reports.
d. outputs from work breakdown structure.
34. __________ is the process of controlling the changes in the project scope
that occur at various stage of the project life cycle.
a. Quality control
b. Schedule control
c. Scope change control
d. Risk response control
35. Identify the techniques that help the project manager in assessing the
magnitude of the variations that occur.
i. Simulation analysis
ii. Trend analysis
iii. Variance analysis
iv. Earned value analysis
a. Only i, ii, and iii
b. Only i, iii, and iv
c. Only ii, iii, and iv
d. i, ii, iii, and iv
36. Identify the reports that organize and summarize the information gathered
and provide information on scope performances.
a. Change requests
b. Performance reports
c. Work breakdown structure
d. None of the above
6.10 Summary
Projects are initiated only when an opportunity is recognized, when some need
arises, or because of specific requirements.
A project deliverable is any measurable, tangible, verifiable outcome, result, or
item that must be produced to complete a project or a part of a project.
A list of project deliverables, known as the conditions of satisfaction, is jointly
prepared by the project manager and the client. The list is developed in four
steps: request, clarification, response, agreement.
Scope planning involves development of the scope statement. The project
manager uses tools like product analysis, cost/benefit analysis, and expert
judgment to develop the scope of a project.
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Management of Project Scope
6.11 Glossary
Conditions of satisfaction: A list of project deliverables, which is jointly
prepared by the project manager and the client.
Cost Benefit Analysis: The economic and social justification for the proposed
project.
Project Definition Statement: It is similar to a project overview statement, and
it provides more detailed information about the project as it is used as a
reference point by the project team for executing the project.
Project deliverable: Any measurable, tangible, verifiable outcome, result, or
item that must be produced to complete a project or a part of a project.
Project Overview Statement: A document that describes the scope of a project.
Scope Change Control: The process of controlling the changes in the project
scope that occur at various stages of the project life cycle.
Scope Planning: The process of developing a scope statement as a basis for all
future decisions to be taken on the project.
Scope Verification: A process that formalizes the acceptance of the project
scope by the project stakeholders.
Scope: A brief and accurate description of the end products or deliverables to be
expected from a project. It describes all the activities that have to be performed
and identifies the resources that will be utilized for the successful completion of
the project.
Work Breakdown Structure: A deliverable-oriented grouping of project
activities that organizes and defines the total scope of the project.
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Project Planning and Control
1. (d) Agreement
The list of project deliverables is developed in four stages, namely request,
clarification, response, and agreement. In the agreement stage, based on the
project manager’s response, both the parties (the client and the project
manager) continue their discussions and arrive at an agreement. If both are
still ready to go ahead with the project, they establish the project norms in
this stage. Finally, both the parties examine each other’s requests closely in
order to determine how the project should be executed.
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Management of Project Scope
2. (d) Only the project goals determine the scope of the project.
Project scope is a brief and accurate description of the end products or
deliverables to be expected from a project. It describes all the activities that
have to be performed and identifies the resources that will be utilized for the
successful completion of the project. It is concerned with target outcomes,
prospective customers, outputs, and the financial and human resources
required for completing the project. The client and the project manager
prepare a project goal. They also identify a number of objectives that will
help them reach that goal. The project goals, together with the objectives,
determine the scope of the project.
3. (d) i, ii, and iii
Exchange of views between the project manager and the client regarding the
objectives of the project will enable them to determine the purpose of the
project. It will help the project manager understand the client’s expectations
and make the client aware of the project manager’s method of executing the
project.
4. (c) Request – Clarification – Response – Agreement
The list of project deliverables is developed in four stages, namely request,
clarification, response, and agreement. In the request stage, the client
requests the project manager to undertake a project as per his/her
requirements. In the clarification stage, the project manager explains what
he/she has understood by the request made by the client. In the response
stage, the project manager explains what he/she can do to fulfill the client’s
request. In the agreement stage, based on the project manager’s response,
both the parties continue their discussions and arrive at an agreement.
5. (b) Project scope
Project scope describes all the activities that have to be performed for the
successful completion of the project and identifies the resources that will be
utilized for the purpose. A project phase is a collection of related project
activities, which results in the production of one or more major project
deliverables. Project control is the process of collecting information related
to the performance of the project system, comparing it with the desired level
of performance, and taking corrective action to decrease the gap between the
actual and the desired performance levels. A project deliverable refers to
any measurable, tangible, verifiable outcome or result that must be produced
to complete a project.
6. (c) Response
The list of project deliverables is developed in four stages, namely request,
clarification, response, and agreement. In the response stage, the project
manager explains what he/she can do to fulfill the client’s request. He/she
informs the client of his/her capabilities, his/her schedule, and fees for
undertaking the project.
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Project Planning and Control
10. (c) The project goal statement should mention specific dates for starting
or completing the project.
The project goal forms the purpose of the project and provides guidance to
the entire project team. The project goal statement should be specific,
measurable, assignable, realistic, and time-related. It should not mention
specific dates for starting or completing the project. Time-related
information about the project is mentioned in the project objectives of the
project overview statement.
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Management of Project Scope
12. (c) A POS is a static document that need not be changed, revised, or
redefined.
The scope of a project is documented in the project overview statement
(POS). A POS is not a static document. As the project progresses, it has to
be revised or redefined. The reason behind this is that over time, the
scenario may change, and the POS should be documented accordingly.
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Project Planning and Control
value it brings to the firm. All future decisions pertaining to the execution
of the project and allocation of necessary resources will be based on the
POS.
17. (b) defining the project goal.
The project goal is defined on the basis of the problems/opportunities stated
in the first part of the project overview statement. The other options are
defined or carried out before drafting a project overview statement.
18. (a) Only i, ii, and iii
The scope of a project can be divided into ‘product scope’ and ‘project
scope.’ Product scope details all the functions and features that are to be
included in a product or service of a project. Project scope details the work
to be done to deliver a required product with specific features. The tools
and techniques for managing product scope vary with the nature of the
project.
23. (c) the revenue likely to be generated over the life period of the project
against the investments made in it.
The return on investment is the revenue likely to be generated over the life
period of the project against the investments made in it. The return on
investment is numerically expressed, which makes it easy for the top
management to identify the most profitable project. Actual cost of work
performance is the total costs incurred (direct and indirect) in
accomplishing work during a given time period. Budgeted cost of work
performance is the sum of the approved cost estimates (including any
overhead allocation) for activities completed during a given period. Any
measurable, tangible, and verifiable outcome or result that must be
produced to complete a project is called a project deliverable.
26. (d) The top management wants the estimates of time and cost to be
provided by the project manager in the POS.
After preparing the POS, the project manager sends it to the top
management for approval. The top management examines the proposed
project to see if it adds any business value to the firm. Approval of the POS
indicates that the top management is interested in undertaking the project,
that the client feels that the project has been understood and a satisfactory
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Project Planning and Control
solution offered, and that the top management feels that the project is well
defined. Estimates of time and cost are provided later by the project
manager during the detailed planning stage.
27. (b) While preparing the PDS, the project manager holds discussions
with the project client.
The PDS is similar to the POS, but the people who are involved in the
preparation of the statement are different. While preparing the PDS, the
project manager holds discussions with the project team members and not
the project client. The PDS provides more detailed information about the
project as it is used as a reference point by the project team for executing
the project.
28. (d) i, ii, iii, and iv
The role of the project manager is crucial. He/she should draft the POS in
such a way that the top management can easily understand it. He/she should
persuade the management to approve the project. He/she should direct the
entire project team and close the project by satisfying the client.
30. (b) a process that formalizes the acceptance of the project scope by the
project stakeholders.
The Project Management Body of Knowledge (PMBOK) has defined scope
verification as a process that formalizes the acceptance of the project scope
by the project stakeholders. Scope change control is the process of
controlling the changes in the project scope that occur at various stages in
the project life cycle. Scope planning is the process of developing a scope
statement as a basis for all future decisions to be taken on the project.
Scope definition involves decomposing the major deliverables into smaller,
more manageable components to provide better control.
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Management of Project Scope
32. (b) Scope change control controls the changes to the project schedule.
Scope change control is the process of controlling the changes in the
project scope that occur at various stages of the project life cycle. Scope
change control involves managing the factors that cause scope changes to
see that the changes are advantageous to the project and identifying the
changes in the scope. Scope change control must be integrated with other
control processes like time control, cost control, quality control, etc.
Schedule control controls the changes to the project schedule.
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Unit 7
Identifying Project Activities
Structure
7.1 Introduction
7.2 Objectives
7.3 Activity Definition
7.4 Work Breakdown Structure
7.5 Developing a WBS
7.6 Test for Completeness of Decomposition of Activities
7.7 Approaches to Defining Deliverables in the WBS
7.8 Representing the WBS
7.9 Summary
7.10 Glossary
7.11 Self-Assessment Exercises
7.12 Suggested Reading/Reference Material
7.13 Answers to Check Your Progress Questions
7.1 Introduction
In the previous unit, we have discussed the management of project scope. In this
unit, we will discuss the identification of the project activities. Identifying
project activities is an important step in the project planning phase after the
project scope statement has been defined. The Work Breakdown Structure
(WBS) is a useful tool for the project manager in identifying the project
activities. It illustrates how each activity of the project contributes to the whole
project in terms of budget, schedule and performance. It also lists the
vendors/subcontractors associated with specific activities of the project.
Software packages like Microsoft’s Project 2000 can generate the WBS
automatically.
A WBS is initially developed with the limited data available and subsequently
revised when additional information is received. This gives the project manager
a clear idea of what the end product of the project will be, and the overall
process by which it will be created. Firms follow different approaches to
developing work breakdown structures. The decomposition of the activities is
continued till the lower activities satisfy some specified criteria. The planned
WBS is then communicated to other project members and further modifications
are done as and when required.
This unit will deal with the definition of an activity. We will discuss the WBS
and its development. We shall then move on to discuss the various tests for
completeness of decomposition of activities. Finally, we would be discussing the
various approaches to defining deliverables in the WBS, and about representing
the WBS.
Identifying Project Activities
7.2 Objectives
By the end of this unit, students should be able to:
define an activity.
explain a work breakdown structure (WBS), and .
developing a WBS.
test for completeness of decomposition of activities.
approaches to defining deliverables in the WBS.
representing the WBS.
7.3 Activity Definition
An activity is an element of work performed during the course of a project. A
project involves a number of interrelated activities. In general, activities share
the following characteristics – each activity is of a definite duration; each
activity uses resources such as people, materials or facilities; and each activity
has a cost associated with it.
A project consists of a series of activities. Every activity of the project has an
activity that goes before it, or one that goes after it, and sometimes both. An
activity that must be completed immediately before the start of another activity
is called a predecessor activity. An activity that immediately succeeds another
activity and which cannot be started until the earlier one has been completed, is
called a successor activity. Two activities which are taken up at the same time
are called concurrent activities. Activity definition involves identification of
specific activities that must be performed in order to produce project
deliverables.
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Identifying Project Activities
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Project Planning and Control
In this approach, the project goal level is decomposed to lower levels until the
project manager and his team are satisfied that the work has been sufficiently
well defined. The decomposition is continued till the activities of lower level
satisfy the test of completeness.
Once all the activities are identified, the project manager ensures that each
project activity is described in detail, with the time, cost, material, and labor
requirements for each activity being estimated. This is because allocation of
resources is easier at the activity level rather than at the project level. The sum of
all resources allocated for all project activities provides the total resource
requirements for the project.
After the activities are described, the project manager puts them in sequence, so
that a schedule can be drawn up for the entire project. The project manager
analyzes the dependencies among the various project activities to see how many
of the activities can be taken up simultaneously. If some of the activities can be
carried out simultaneously, it reduces the total project duration. There are two
variations in the top-down approach. These are the team approach and subteam
approach.
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Project Planning and Control
Team approach: In this approach, the entire project team works on all parts of
the WBS. A suitably qualified person is given the responsibility of decomposing
each Level 1 activity. As the entire team is involved in developing the WBS,
members can take note of discrepancies as and when they occur and take
corrective measures.
Subteam approach: In this approach, the planning team is divided into as many
subteams as there are Level 1 activities. Each team is led by an expert who
decomposes the Level 1 activity assigned to his team, taking into consideration
the suggestions made by his team members. The process is continued till each
lower level activity of WBS meets the test for completeness of decomposition.
Here, as in top-down approach, the entire planning team prepares the first level
breakdown. Then the team is divided into as many groups as there are Level 1
activities. Each group makes a list of all the activities that must be completed to
complete one Level 1 activity. This is done by getting group members to identify
different activities and present these to the group. Every activity that the group
thinks is appropriate, is put down on a slip of paper. Once all the ideas are
exhausted, related activities are grouped together and the final list is submitted to
the planning team. The planning team prepares the final work breakdown
structure by removing redundant activities and adding missing activities. The
drawback in this approach is that the activities are not defined properly.
Answer:
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Identifying Project Activities
7.6.1 Measurable
The project manager can ask for the current status of an activity anytime during
the project. So, the status of the activity should be easy to measure. Let us
assume the transportation activity in a building construction project takes 15
days, if 5 trucks are engaged. Assuming that the trucks are at equal capacity, the
extent of completion of the activity can be measured at any point of time. The
measure of the activity’s completion is the proportion of the work completed for
a given time period.
7.6.2 Bounded
Each activity should have clearly distinguishable start and end events. Once the
start event has occurred, the project manager assumes that the activity has begun.
The deliverable should result once the last event occurs. For example, the
printing activity of a book starts when papers are loaded into the printing
machine and it is completed once all the printed papers are collected. If the
activity is not properly bounded, then the activity has to be further decomposed.
7.6.3 Deliverable
Every activity, on completion, should produce a result or outcome. The
deliverable is a visible proof of the completion of an activity. The outcome could
be a document, or a physical product. The next activity can be started only when
the predecessor activity produces the desired outcome.
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Identifying Project Activities
The WBS is decomposed to such a level that the lower level activities should
allow for the effective planning, control, and performance measurement. In order
to plan for adequate resources, the project manager examines the following
details:
Is all the work planned for an activity capable of producing the required
deliverable?
Is it practically feasible to manage the individual work assignments with the
WBS structure?
What kind of an approach is to be adopted for identifying project activities: a
top-down approach or a bottom-up approach?
How will work be assigned to an individual and controlled to receive the
required deliverables?
How will the budgets be allocated for each project activity? How are the
budgets proposed for the increments of work?
How will the status of the project work activity be determined?
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Project Planning and Control
Physical Decomposition
In this approach, the deliverables of the project work are defined in terms of
physical components that make up the deliverable. For example, in a project for
manufacturing a lathe machine, the project will involve the manufacture of
physical components like gears, gear belts, motor, machine base, fixtures,
supporting blocks, shafts, cutting tools and dimension scales. All these
components are to be produced to make the end product and the WBS will
represent the manufacture of all the above physical components. The project
manager can use Gantt charts that depict the duration of each activity as
rectangular bars. The length of the rectangular bar represents the duration of
each project activity and these are arranged in proper sequence.
Functional Decomposition
In the functional noun-type approach, the same cutting machine project is built
on the functional requirements of the machine like manufacturing of gear
system, conveyor system, motor system, work piece rotating system and
dimension checking system. The WBS lists the functions to be performed to
produce the end product.
Design-Build-Test-Implement Approach
Assume a project that has to produce an innovative cutting machine. Here, all the
features that are to be added to the current cutting machine are designed, built,
tested and then implemented. Gantt charts are drawn that have lengths
corresponding to the duration of each design, build, test and implement stage of
the project.
Objectives Approach
The project manager reports completion of project activity on the basis of
attainment of some project objectives. The objective approach is similar to the
design-build-test-implementation approach and is used when progress reports are
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Identifying Project Activities
to be prepared at various stages of the project. Clear-cut objectives are set for
each activity and the progress in meeting these objectives is measured. But
setting objectives and measuring their completion levels is difficult.
Geographical Approach
If the project is dispersed geographically, then the project work is partitioned
geographically. For example, a National Highway construction project requires
construction activity at different locations simultaneously. So, the project is
divided according to locations and any of the noun or verb- type approaches is
used at each location.
Departmental Approach
In the departmental approach, the project work is first divided department wise.
Any other approach can be used later in each department. Complex projects
undertaken by a single firm usually follow the departmental approach at the
earlier stages. Resource allocation becomes simpler this way, as each
department will take care of the work assigned to it.
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Project Planning and Control
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Identifying Project Activities
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Identifying Project Activities
7.9 Summary
An activity is an element of work performed during the course of a project. A
project involves a number of interrelated activities.
Activities generally, share the following characteristics – each activity is of a
definite duration; each activity uses resources such as people, materials or
facilities; and each activity has a cost associated with it.
The Project Management Body of Knowledge defines work breakdown
structure (WBS) as a deliverable-oriented grouping of project activities that
organizes and defines the total scope of the project.
A deliverable is any measurable, tangible, verifiable outcome or result that must
be produced to complete a project or part of a project.
The WBS helps the project manager to ensure that the project includes all the
activities needed, and that the project includes no unnecessary activity. The
process of developing a WBS can be top-down or bottom-up approach.
The criteria for completeness of decomposition of activities are that an activity
should be measurable, bounded, deliverable, simple in estimating cost and time,
should have an acceptable duration limit, and be independent.
There are several approaches to defining the deliverables and building the WBS
for a project. The three main types of approaches are: noun-type approaches,
verb-type approaches, and organizational approaches.
WBSs can be represented in different ways. Whatever the type of
representation, the main issue in representing the WBS is to know whether the
work required to achieve the desired outcome and meet the project objectives
has been captured in enough detail to identify the resources, assign the
responsibilities, and set the activities in sequence.
7.10 Glossary
Activity Definition: Identifying the specific activities that must be performed in
order to produce the various project deliverables.
Deliverable: Any measurable, tangible, verifiable outcome, or result that must
be produced to complete a project.
Work Breakdown Structure: A deliverable-oriented grouping of project
activities that organizes and defines the total scope of the project.
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Project Planning and Control
2. (b) Decomposition
The breaking down of work into a hierarchy of activities and tasks is called
decomposition. Crashing refers to decreasing the total project duration after
analyzing a number of alternatives to determine how to get the maximum
duration compression for the least cost. In fast tracking, the project
manager attempts to reduce the project duration by doing project activities
in parallel. Solicitation is the process of gathering information in the form
of bids, quotations, and proposals from qualified vendors to satisfy the
project needs.
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Identifying Project Activities
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Project Planning and Control
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Identifying Project Activities
16. (d) In the top-down approach, the project goal level is decomposed to
lower levels until the project manager and his/her team are satisfied
that the work has been sufficiently well defined.
In the top-down approach of developing a WBS, the project goal level is
decomposed to lower levels until the project manager and his/her team are
satisfied that the work has been sufficiently well defined. The
decomposition is continued till the activities of the lower level satisfy the
test of completeness. Activities are not properly defined in the bottom-up
approach. The team approach and sub-team approach are variations in the
bottom-up approach.
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Project Planning and Control
50
Unit 8
Activities: Sequencing, Estimating Duration, and Scheduling
Structure
8.1 Introduction
8.2 Objectives
8.3 Fundamentals of Project Network Diagrams
8.4 Activity Sequencing
8.5 Activity Duration
8.6 Schedule Development
8.7 Techniques for Schedule Development
8.8 Schedule Control
8.9 Summary
8.10 Glossary
8.11 Self-Assessment Exercises
8.12 Suggested Reading/Reference Material
8.13 Answers to Check Your Progress Questions
8.14 Answers to Exercises
8.1 Introduction
In the previous unit, we have discussed how to identify the project activities. In
this unit, we will discuss how to sequence activities, estimate their duration, and
schedule them. After the project activities are identified, they are represented in a
project network diagram. The project manager sequences the project activities,
estimates the duration and then schedules the activities. The project manager
sequences the project activities by understanding the dependencies among them.
He prepares the duration estimates of each project activity with the help of
duration estimates from other projects, historical information, expert advice, etc.
The project manager schedules the project activities to estimate the start and
finish dates of each project activity, to arrive at the duration of the project. He
can take help from two important techniques: Program Evaluation and Review
Technique (PERT) and Critical Path Method (CPM) to schedule the project.
Schedule control deals with the study of factors that influence and change the
project schedules. It aims at managing changes to complete the project within the
estimated schedule.
This unit will deal with the fundamentals of the project network diagram. We
will discuss activity sequencing and activity duration. We shall then move on to
discuss schedule development and the various techniques for schedule
development. Finally, we would be discussing schedule control.
Project Planning and Control
8.2 Objectives
By the end of this unit, students should be able to:
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Activities: Sequencing, Estimating Duration, and Scheduling
Finish to Start
Finish to start dependency states that activity A must be completed before
activity B can begin. If activity A is obtaining raw material and activity B is
inspecting the raw material, then activity B can be performed only after the
completion of activity A. Therefore, the dependency is finish to start.
Start to Start
Start to start dependency states that activity B can be started only if activity A
has begun. This can be explained with the help of the previous example – that is
the inspection activity can be started and continued once the raw materials start
coming. Subsequently, both activities go on in parallel.
Start to Finish
Start to finish dependency states that activity B must start before activity A can
finish. For example, if a firm wants to develop a new information system to
replace the existing one, the firm has to confirm that the new system is well
operating. When the new system starts to work (activity B), the existing system
can be discontinued (activity A).
Finish to Finish
Finish to finish dependency states that activity A must finish before activity B
finishes. For example, data feed operation (activity B) cannot be finished until
the collection of data (activity A) is completed.
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
c. The project network diagram represents all the project activities, the
sequence in which they have to be performed, the duration of each
activity, the interdependencies among various activities, and the
criticality of each activity.
d. The project network diagram helps to determine the start and end dates
of each activity during scheduling, but does not provide insights into the
possible trade-offs while controlling the project.
15. In a project, activity A should be completed before activity B can begin.
This is called
a. finish to start dependency.
b. start to finish dependency.
c. finish to finish dependency.
d. start to start.
16. In a project network diagram, a node is also called a/an _________.
a. activity
b. event
c. slack
d. None of the above
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Project Planning and Control
The project manager also has to analyze the dependencies among project
activities with external activities. For example, voter identity cards should be
distributed before the elections. Therefore, the activity of holding elections is
dependent on the distribution activity. The sequencing of activities is also
affected by several other constraints and assumptions made by the project
manager regarding the project.
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Activities: Sequencing, Estimating Duration, and Scheduling
and again) or conditional branches (e.g. a design update is required only when
errors are found in the inspection). PDM and ADM cannot represent loops and
conditional branches.
a.
b.
c.
d.
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
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Project Planning and Control
The activity duration is not synonymous with work effort. Suppose an activity
takes 30 days to complete, we cannot assume that the effort is made for 30 days,
even though the activity duration is 30 days. For example, if the activity is to
consult an external expert for the given problem, the actual consultation time is
only about 3 hours, but the duration assigned for the activity will be about 30
days considering the time required to find the expert, discuss the matter and
solve the problem.
Activity duration could also be influenced by the amount of resources allocated.
Generally speaking, more the resources, the shorter the duration of the activity.
For example, if more number of people are included to work on a project, then
the project can be completed on or before time. However, it cannot be assumed
that the relationship between activity duration and resources allocated is
completely proportional. Thus, the project manager has to allocate more
resources till the crash point is arrived at. Beyond this point, it is not possible to
reduce the duration of an activity.
The actual duration of activities may vary from the estimates. Therefore, the
project manager has to see to it that there is as little deviation as possible. The
different skill levels of manpower employed, unexpected events like acts of
nature, vendor delays, power failures, or misunderstanding the nature of work
are some of the causes for variations of actual activity durations from the
estimates.
Historical Data
The actual durations of successful projects in the past can be used to estimate the
duration of the activity. Larger firms maintain an extensive database of activity
duration history that records the estimated time, actual time, reasons for time
overrun (if there was one), characteristics of the activity, the skill levels of the
people, etc. Whenever firms wish to assign duration estimations, they refer to
historical data and find the duration estimate and actual time.
Expert Advice
In case of highly technical activities, the project manager can consult a technical
expert to estimate the activity duration. He can also consider the advice of
vendors and other non-competing firms to assign the duration estimates.
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Activities: Sequencing, Estimating Duration, and Scheduling
Delphi Method
In this method, the project manager forms a group of people and asks them to
estimate the duration of an activity, after describing the nature and characteristics
of the activity. The estimates of each participant are then collected. Those
participants whose estimations are very high or very low are asked to explain the
reasons for their estimates.
The project manager then discusses with all the group members to know why
their estimates are higher or lower than estimates of the other participants. He
then asks the participants to write down new estimates of duration after the
discussion. This process continues until the entire group arrives at a particular
estimate. In general, this method is followed when expert advice is not available.
Three- Point Method
The duration of an activity may vary even when the same activity is repeated in
similar conditions. Therefore the project manager considers three types of
estimates in this method.
They are:
1. Optimistic time
2. Pessimistic time
3. Most Likely time
Optimistic time (t0)
Optimistic time is the minimum amount of time within which an activity can be
completed. It is possible to complete an activity within the optimistic time only
when the external environment is extremely favorable.
Pessimistic time (tp)
Pessimistic time is the maximum amount of time required to complete an
activity. This happens when the external environment is unfavorable.
Most Likely time(tm)
It is the time that is the best guess for an activity completion – neither optimistic
nor pessimistic.
Expected time (te)
The project manager arrives at the ‘expected time’ based on the above estimates.
The project manager calculates the estimate of duration of an activity as,
t o 4t m t p
te
6
The expected time of an activity cannot be more than the pessimistic time of that
activity. However, it can be more than the optimistic time. The expected time of
an activity is more than, less than, or equal to the most likely time of that
activity.
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Project Planning and Control
c a 2
then the variance of the activity is calculated as
a.
a c 2
36
b.
b c 2
36
c.
b a 2
36
d.
36
29. The duration of a project activity can be estimated by:
i. taking estimates of duration of similar activities in other projects.
ii. taking the actual durations of successful projects in the past.
iii. consulting a technical expert to estimate activity duration.
iv. forming a group of people and asking them to estimate the duration of
the activity after describing the nature and characteristics of the activity.
a. Only i, ii, and iii
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Activities: Sequencing, Estimating Duration, and Scheduling
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Project Planning and Control
Exercise
A. The optimistic, pessimistic, and most likely times of an activity are 5 days,
12 days, and 7 days, respectively. Calculate the expected time of an activity.
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Activities: Sequencing, Estimating Duration, and Scheduling
Numbering Nodes
Step 1: Assign the starting event as ‘0’.
Step 2: Assign the next number to any unnumbered event whose predecessor
events are already numbered.
Repeat Step 2 until all events are numbered.
The basic scheduling computations of a project can be grouped under three
heads: Forward pass, backward pass, and calculation of floats.
Forward Pass
The forward pass computation finds the earliest start and earliest finish times for
each activity; or the earliest expected occurrence time for each node. The
computation starts with an assumed earliest occurrence time of zero for the
initial project event.
The earliest starting time for activity (i,j) is the earliest event time of the tail
event. i.e. ESij = Ei.
The earliest finish time for activity (i,j) is the earliest starting time plus the
activity duration, t ij
Event is just a time oriented reference point. Events will have only the earliest
time and latest time. The earliest time is obtained in the forward pass, and the
latest time is obtained in the backward pass. But every activity will have earliest
start time, earliest completion time in forward pass and latest start time and latest
finish time in backward pass.
Suppose an activity A is connected between two events i and j, and duration of
the activity is 5 units of time. Then the earliest start time of activity A is 0 and
the earliest completion time is 5. Also, the earliest time of event i is 0, and the
earliest time of event j is 5.
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Project Planning and Control
Earliest event time for event j is the maximum of earliest finish time of all
activities leading into that activity.
Ej= Maximum {Ei + t ij}.
Consider the network diagram, where three activities are leading into event ‘m.’
Here, the earliest event time at ‘m’, is the maximum of the earliest finish times
of all the activities ending into that activity.
Thus, Em is the maximum of
{(ESim + tim ), (ESjm + tjm ), and (ESkm + tkm)}
Backward Pass
The backward computation finds the latest start and completion times of each
activity without affecting the total project duration. Here the calculation starts at
the ‘end’ node and ends with the ‘first’ node. The total project duration is taken
as the latest time of the end node.
Latest finish time for activity (i,j) is the latest event time of event j. i.e., LFij = Lj
Latest starting time for activity (i,j) is the difference between the latest
completion time of (i,j) and the activity duration. i.e., LS ij = LFij – t ij
Latest event time for event i is the minimum of the latest start time of all
activities starting from that the event i.
Li = Minimum {LFij – t ij}.
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Activities: Sequencing, Estimating Duration, and Scheduling
Consider the network diagram, where three activities are beginning at the event i.
The latest event time of event i is calculated as:
Minimum of {(LFij – tij), (LFim – t im ), (LFil – til)}
Calculation of Floats
There are three types of floats. They are:
1. Total float
2. Free float
3. Independent float
Total Float
This is the amount of time by which the completion of an activity can be delayed
beyond its expected earliest completion time without affecting the overall project
duration. It is calculated as the difference between the latest start time and the
earliest start time of a project activity.
Total float= LSij – ESij
= (Lj – t ij) – ESij
= (Lj – Ei ) – t ij
Free Float
This is the amount of time by which the completion of an activity can be delayed
beyond the earliest finish time without affecting the earliest start of a subsequent
activity.
Free float= Earliest event time of event j – Earliest event time for event i –
activity time (i,j)
= (Ej – Ei ) – tij
Independent Float
This is the amount of time by which the start of an activity can be delayed
without affecting the earliest start of any activities following immediately.
Independent float= (Ej – Li ) – tij
Event Slacks
For an event, slack is the difference between the latest event time and earliest
event time. For an event i, slack = Li – Ei
For an activity (i, j), the slack of event j is called head slack, and the slack of
event i is called tail slack.
Head slack = Lj – Ej
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Project Planning and Control
Tail slack = Li – Ei
The values of free float and independent float can be expressed in terms of head
and tail slacks.
Free float = Ej – Ei – tij
= Ej – Ei – tij – ( Li –Ei )
Example 8.1
Suppose a project has seven activities A, B, C, D, E, F, and G. The predecessor
activity (ies) of a particular activity and duration estimates of all project
activities are given in Table 8.1.
Table 8.1: Project Activities and Duration Estimates
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Activities: Sequencing, Estimating Duration, and Scheduling
The network diagram for the given project activities is shown in Figure 8.2 (a).
Here, activity X is a dummy activity. Each node is assigned a certain number
that is written on the top half of the circle. The earliest completion time is
represented on the bottom left and the latest completion time on the bottom right
of the circle.
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Project Planning and Control
Backward Pass Computation: To determine the Latest Time (Li) of each event
(node) from 0 to 6. Here, Node 6 represents project completion. The backward
pass is done, “without affecting the total project duration.” That is, the earliest
occurrence of the last node in the network is also taken as the latest occurrence
of that node. Therefore,
L6 = E6 = 32 days.
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Activities: Sequencing, Estimating Duration, and Scheduling
Now, we work backwards from Event 6, following the two rules given below:
When a node is the starting point (tail) for only one activity (e.g., nodes 1, 3, 4,
5), the latest time for the node is the latest start time of the activity starting from
that event. This is computed as the difference between the latest event time of
the head node and the activity duration.
That is,
L5 = L6 – tG = 32 – 3 = 29
L4 = L5 – tF = 29 – 12 = 17
L3 = L4 – tE = 17 – 9 = 8
When an event (node) is the starting point of two (or more) activities, as in node
0 or node 2; the latest time for the node is the minimum of the latest start times
of the activities starting from the event. This is mathematically represented
below.
L2 = Min [(L3 – tX), (L4 - tD)] = Min [(8 - 0), (17 - 5)] = 8 days.
L1 = L3 – tB = 8 – 1 = 7 days.
L0 = Min [(L1 – tA), (L – tC)] = Min [(7 - 6), (8 - 8)] = 0 days.
Calculation of Floats:
Total float:
For activity A, the total float is,
(Li – Ej) – tij = (7 – 0) – 6 = 1.
For activity B, the total float is = (8– 6) – 1= 1.
For activity C, the total float is = (8– 0) – 8 = 0.
Similarly, total float values can be determined for all the activities.
Free float:
For activity A, the free float is,
Total float – Head slack = 1 – (7 – 6) = 0.
For activity B, the free float is, 1 – (8 – 7) = 0.
For activity C, the free float is, 0 – (8 – 8) = 0.
Similarly, free float values can be determined for all the activities.
Independent float:
For activity A, the independent float is,
Free float – Tail slack = 0 – (0 – 0) = 0.
For activity B, the free float is, 1 – (7 – 6) = 0.
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Project Planning and Control
The critical path of the project is the longest path through the network. The
length of the critical path gives the shortest allowable time for the completion of
the project. This helps the project manager to concentrate and prioritize critical
activities while allocating project resources.
From Figure 8.2 (b) and Table 8.2 (b), the critical path is C – X – E – F – G
(indicated in the figure by thick arrows). Therefore, the project takes at least 32
time units (8+0+9+12+3=32) for completion.
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Activities: Sequencing, Estimating Duration, and Scheduling
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
Exercises
B. A project network diagram has three activities – A, B, and C. All these
activities lead into event ‘x’.
The earliest start times of activities A, B and C are 3 days, 5 days, and 7
days, respectively. The duration estimates of these activities are 5 days, 7
days, and 11 days, respectively. What would be the earliest event time at X?
C. The earliest start, earliest finish, latest start and latest finish times of an
activity P are given below: The duration of activity P is 7 units. What is the
total float, free float and independent float of activity P?
D. The earliest start, earliest finish, latest start and latest finish times of an
activity A are given below: The duration of activity A is 8 units. What is the
total float of activity A?
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Project Planning and Control
The critical path of the project is the longest path through the network. The
length of the critical path gives the shortest allowable time for the completion of
the project. This helps the project manager to concentrate and prioritize critical
activities while allocating project resources.
t o 4t m t p
te ,
6
Where, to, tp , and tm are the optimistic, pessimistic and most likely completion
times of a project activity.
The methodology of PERT is explained below:
Step 1: Develop a list of project activities, and identify all their immediate
predecessors.
t o 4t m t p
Step 2: Calculate time estimates for each activity as t e
6
Step 3: Calculate the earliest start time and earliest finish time for each activity,
based on the expected time.
Step 4: Identify the critical path of the network taking into consideration those
activities whose total float value is ‘0’ and determine the expected project
duration.
Step 5: Calculate the standard deviation of the project. The standard deviation is
a square root value of project variance. The variance of a project activity is
calculated as (tp – to )2 / 36, and the project variance is the sum of variances of all
project activities.
Step 6: The square root value of project variance gives the standard deviation of
the project. Calculate the value of z as,
z = (Due date – Expected date of completion) / (Standard deviation of the
project).
Where, ‘z’ is the number of standard deviations the due date lies from the mean
or expected date.
Step 7: Using the standardized normal distribution table, determine the
probability of meeting a specific completion date for the obtained z value.
Step 8: Crash or compress the project to the extent possible.
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Activities: Sequencing, Estimating Duration, and Scheduling
Example 8.2
The pessimistic, most likely, and optimistic times (in number of days) of the
activities in a particular project are given below, along with the predecessor
activities. Find the probability of completing the project in 26 days.
Figure 8.3 (a) is the network diagram for the given project. The critical path of
the project is A-C-E and the expected project completion time is 24 days.
Activity Predecessor(s) to tm tp
A - 6 8 10
B A 2 3 10
C A 10 11 18
D A, B 3 4 11
E A, C 4 4 4
The expected completion time of an activity is calculated as:
t o 4t m t p
te
t p t o 2
6
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Project Planning and Control
As the critical path is A-C-E, the expected project completion time (expected
time) for A-C-E = 8 + 12 + 4 = 24 days.
26 24
P(x < 26) P z
2.4
P(z < 0.83)
P( α z 0) P(0 z 0.83)
(From the standardized normal distribution function, F(z) table, the area under
the normal curve corresponding to z = 0.83 is 0.2967.) Refer to Figure 8.3 (b).
0.5 + 0.2967
0.7967
Hence, the probability of completing the project in 26 days is 0.7967.
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Activities: Sequencing, Estimating Duration, and Scheduling
Exercises
(Questions E-G)
Nishant International has taken up an overseas project. The optimistic, most
likely, and pessimistic times of the activities in the project are given here.
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
8.7.6 Constraints
The maximum extent of crashing of an activity is given as part of the problem
statement. (For instance, in Example 8.3, activity 1—2 can be crashed by a
maximum of 2 weeks, from 8 to 6 weeks).
Activities of the critical path(s) are to be crashed, in order to reduce the total
project time.
8.7.7 Steps
1. Identify the sequence of activities and prepare a network diagram. Each
activity should list the details of normal cost, normal time, crash cost and
crash time.
2. Compute the critical path of the project network.
4. The most effective way of crashing, is to start with the activity in the
critical path having minimum crash slope, that is, minimum additional cost
per unit of reduction in time. If possible, the other critical path activities
can also be crashed in the ascending order (lowest to highest) of the crash
slope. At each step of crashing, an activity can be crashed to the extent
possible, such that the relevant path continues to be a critical path.
5. While crashing a project, if we get new critical paths in addition to the
original critical path, subsequent crashing should be done in such a way
that there is reduction of time along all these parallel critical paths so that
the total project duration decreases.
6. The crashing process is continued till further crashing is not possible, or it
does not result in the reduction of project duration.
7. For different project durations, the total cost of the project is calculated,
including both critical and non-critical activities, and including both direct
(normal, crashing) and indirect costs.
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Project Planning and Control
For each activity, the crash slope and the maximum possible reduction in time
are tabulated as shown below.
1-2 250 2
1-4 333.3 3
2-3 200 2
2-5 200 3
4-6 25 4
5-6 300 1
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Activities: Sequencing, Estimating Duration, and Scheduling
From network diagram 12.4 (a) we can identify three paths ( activity 3-4 is a
dummy activity and does not consume any resource).
Path A: 1-2-3-4-6 = 8+6+12 = 26 weeks
Path B: 1-4-6 = 10+12 = 22 weeks
Path C: 1-2-5-6 = 8+8+5 = 21 weeks
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Project Planning and Control
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Project Planning and Control
Project Indirect
Direct Costs Total Costs
Duration Costs
Before crashing Crashing costs
26 6300 - 1040 7340
22 6300 100 880 7280
21 6300 300 840 7440
19 6300 800 760 7860
18 6300 1200 720 8220
Therefore, optimum project duration is 22 weeks, when the total cost incurred is
minimum, i.e., Rs. 7280.
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Activities: Sequencing, Estimating Duration, and Scheduling
Fast Tracking
In this technique, the project manager attempts to reduce the project duration by
doing project activities in parallel. Suppose activity B can be started only after
the completion of activity A in normal conditions. But the project manager can
start both activities at the same time, but makes modifications to activity B as per
the changes in activity A. This ultimately reduces the duration of the entire
project.
For example, the software code is normally written only after the design is
approved. But both the activities are started at the same time and the final code
is written only after the software design is approved by the top management.
However, this technique requires modifications, reworking, etc.
45. Identify the correct formula to calculate the crash slope in project crashing.
Normal cost Crash cost
Normal time Crash time
a.
46. Which of the following statements is not true regarding the graphical
evaluation and review technique?
a. It is similar to the program evaluation and review technique.
b. It allows multiple project activities by the way of looping and branching
project activities.
c. It does not show alternative plans in a single network diagram.
d. Both (a) and (b
47. Identify the activities that should not be considered for crashing.
a. Activities that are labor intensive.
b. Activities that are of longer duration
c. Activities that have a high per unit crash cost
d. Activities that do not cause any quality problems, when crashed
Exercise
K. If the normal cost and crash cost of an activity A are Rs. 2,500 and Rs.
3,000 and the normal time and crash time are 9 and 7 days respectively, then
what is the crash slope of activity A?
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Activities: Sequencing, Estimating Duration, and Scheduling
provides a basis for the project manager to measure the schedule performance.
Performance reports provide information about schedule performance and point
out whether the activities are proceeding as per the planned schedule or not. The
project manager initiates controls to complete all the activities within the desired
time. He considers the change requests made by the project stakeholders, which
may be verbal or written. These change requests may be for extension or
acceleration of project schedules.
The project manager uses techniques like schedule change control system, and
performance measurement in controlling the project schedule. The schedule
change control system describes the procedures by which project schedules can
be modified. The methods include redrawing the project network diagrams, and
understanding the proposed changes. Performance measurement systems assess
the effective completion of the project activity in the normal duration. They
calculate the magnitude of variation that may occur for each project activity.
Software packages like Project 2000 also help the project manager in controlling
the project schedules by continuously studying the planned and actual time
periods of each project activity. Sometimes additional planning is required when
the project manager thinks that it is important to incorporate certain changes in
the project. The project manager then revises the duration estimates, modifies the
sequence of activities and analyzes alternative schedules.
8.9 Summary
According to the Project Management Body of Knowledge, a project network
diagram is a schematic representation of the project activities and the logical
relationships (dependencies) among them.
The project network diagram helps the project manager in sequencing,
scheduling, and controlling the project. It represents all the project activities, the
sequence in which they have to be performed, the duration of each activity, the
interdependencies among various activities and the criticality (significance) of
each activity.
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Project Planning and Control
Once the project activities are identified using the work breakdown structure, the
project manager prepares an activity list of the project. He puts all the activities
down in a logical sequence to arrive at the project end-product. This is known as
activity sequencing.
The project manager sequences all the project activities in an appropriate
manner and represents them in the project network diagram. Some of the
methods of activity sequencing are arrow diagram method, precedence diagram
method, and conditional diagramming method.
After activity sequencing, the project manager estimates the duration of each
activity to calculate the duration of the entire project. The duration of an activity
is the time period required to complete the activity.
Schedule development is concerned with determining a realistic start and finish
time for project activities. It aims to match project resources like machinery,
materials, and labor with project activities over time.
Some of the methods used by project managers for schedule development are:
Critical Path Method (CPM), Program Evaluation and Review Technique
(PERT), and Graphical Evaluation and Review Technique.
Through schedule control, the project manager ensures that all the project
activities are being carried out as per schedule. It determines the schedule
changes and manages to complete them within the desired duration.
8.10 Glossary
Activity Sequencing: It is the process of identifying and documenting
interdependency relationships.
Activity: An activity is an element of work performed during the course of a
project.
Arrow Diagram Method: A network diagram constructed using arrows to
represent the activities and connecting them at nodes to show the dependencies.
This method is also called as activity-on-arrow (AOA) method.
Crashing: It refers to decreasing the total project duration after analyzing a
number of alternatives to determine how to get the maximum duration
compression for the least cost.
Critical Path Method: It is a network analysis technique used to predict the
project duration by finding out which sequence of activities (the critical path)
has the least amount of scheduling flexibility.
Dummy Activity: An activity of zero duration that is used to represent the
logical relationship in the network diagram is called a dummy activity.
Fast Tracking: Compressing the project schedule by overlapping activities that
would normally be done in sequence.
Finish to Finish: Finish to finish dependency states that activity A must finish
before activity B finishes.
Finish to Start: Finish to start dependency states that activity A must be
completed before activity B can begin.
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Activities: Sequencing, Estimating Duration, and Scheduling
Free Float: This is the amount of time by which the completion of an activity
can be delayed beyond the earliest finish time without affecting the earliest start
of a subsequent activity.
Independent Float: This is the amount of time by which the start of an activity
can be delayed without affecting the earliest start of any activities following
immediately.
Most Likely Time: It is the time that is the best guess for an activity completion
– either optimistic or pessimistic.
Node: It is a time-oriented reference point that signifies the start or end of an
activity. It is represented by a circle.
Optimistic Time: Optimistic time is the minimum amount of time within which
an activity can be completed. It is possible to complete an activity within the
optimistic time only when the external environment is extremely favorable.
Pessimistic Time: Pessimistic time is the maximum amount of time required to
complete an activity. This happens when the external environment is
unfavorable.
Precedence Diagram Method (PDM): In this method, the network diagram is
constructed using nodes to represent the activities and connecting them with
arrows to represent the dependencies. This method is also called as activity-on-
node (AON) method.
Project Network Diagram: It is a schematic representation of the project
activities and the logical relationships (dependencies) among them.
Schedule Development: Evaluating activity sequences, activity durations, and
resource requirements to develop a project schedule.
Slack: Slack is the difference between the latest event time and earliest event
time.
Start to Finish: Start to finish dependency states that activity B must start
before activity A can finish.
Start to Start: Start to start dependency states that activity B can be started only
if activity A has begun.
Total Float: This is the amount of time by which the completion of an activity
can be delayed beyond its expected earliest completion time without affecting
the overall project duration.
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Project Planning and Control
3. After the project activities are sequenced, the project manager estimates the
duration of each activity to calculate the entire project duration. Explain in
detail the methods involved in the estimation of the activity duration.
4. Scheduling eliminate production problems, facilitates timely procurement of
raw materials, and ensures project completion on time. How is a schedule
developed? Explain briefly the techniques involved in schedule
development. How can the schedule be controlled?
3. (c) iii-ii-i
After the project activities have been identified, they are represented in a
project network diagram. The project manager sequences the project
activities, estimates the duration, and then schedules the activities. The
project manager sequences the project activities by understanding the
dependencies among them. He/she then prepares the duration estimates of
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Activities: Sequencing, Estimating Duration, and Scheduling
each project activity with the help of duration estimates from other projects,
historical information, expert advice, etc. Finally, the project manager
schedules the project activities in order to estimate the start and the finish
dates of each project activity. This scheduling helps him/her in arriving at
the duration of the project.
4. (b) Project network diagram
A project network diagram is a schematic representation of the project
activities and the logical relationships (dependencies) among them. The
diagram helps the project manager in sequencing, scheduling, and
controlling the project. It represents all the project activities, the sequence in
which they have to be performed, the duration of each activity, the
interdependencies among various activities, and the criticality (significance)
of each activity. A control chart is a graphical representation of the results of
a process over a period of time. A work breakdown structure is a
deliverable-oriented grouping of project activities that organizes and defines
the total scope of the project.
5. (d) Activity
An activity is an element of work performed during the course of a project. It
is depicted by an arrow. An event is a time-oriented reference point that
signifies the start or end of an activity. It is also called a node and is
represented by a circle. Slack is the difference between the latest event time
and earliest event time.
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Project Planning and Control
9. (a) a time-oriented reference point that signifies the start and end of an
activity.
A node, also known as an event, is a time-oriented reference point that
signifies the start or end of an activity. It is represented by a circle. An
activity is a specific task or operation required to do a project.
10. (b) An activity represents the passage of time while the nodes are points
in time that denote the starting or ending of a specific activity.
An activity is an element of work performed during the course of a project
while a node is a time-oriented reference point that signifies the start and
end of an activity. An activity represents the passage of time and the nodes
are points in time that denote the starting or ending of a specific activity. An
activity is depicted by an arrow while a node is represented by a circle.
11. (c) activity B can be started only if activity A has begun.
Start to start dependency states that activity B can be started only if activity
A has begun. This can be explained with the help of the previous example –
that is, the inspection activity can be started and continued once the raw
materials start coming. Subsequently, both activities go on in parallel.
12. (b) start to finish dependency
Start to finish dependency states that activity B must start before activity A
can finish. For instance, if a firm wants to develop a new information system
to replace the existing one, the firm has to confirm that the new system is
operating well. When the new system starts working (activity B), the
existing system can be discontinued (activity A).
13. (a) Only i, ii, and iii
An activity of zero duration that is used to represent the logical relationship
in the network diagram is called a dummy activity. Dummy activities do not
consume any resources, but are used to maintain the proper precedence
relationship between the activities that are not connected by the nodes. They
are represented by a dashed line headed by an arrow.
14. (d) The project network diagram helps to determine the start and end
dates of each activity during scheduling, but does not provide insights
into the possible trade-offs while controlling the project.
A project network diagram is a schematic representation of the project
activities and the logical relationships (dependencies) among them. The
diagram helps the project manager in sequencing, scheduling, and
controlling the project. It represents all the project activities, the sequence in
which they have to be performed, the duration of each activity, the
interdependencies among various activities, and the criticality (significance)
of each activity. It helps to determine the start and end dates of each activity
during scheduling. It also provides insights into the possible trade-offs while
controlling the project.
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Activities: Sequencing, Estimating Duration, and Scheduling
17. (b)
In the given project, activities B and C cannot begin until activity A has
been completed. Option (b) correctly represents this activity relationship if
the arrow diagram or activity-on-arrow method is used. Option (d) is also
correct if the activity relationship is represented using the precedence
diagram or activity-on-node method.
While sequencing the activities, the project manager analyzes the mandatory
and discretionary dependencies among the various project activities.
Mandatory dependencies are those that are inherent in the nature of project.
In these, the dependency between the activities is certain or mandatory.
Discretionary dependencies are those dependencies of the project that are
defined by the project team. Using certain best practices or standard
procedures in the project are examples of discretionary dependencies. This
dependency is also called as soft logic or preferred logic.
While analyzing the product description, the project manager has to consider
the physical characteristics of the product and the logical sequencing of the
activities to achieve the end product. The product description is generally
less detailed in the early phases of the project and is progressively
elaborated on later.
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
t p t o 2
required to complete the activity. The variance of an activity is calculated as
,
36
where, tp = pessimistic time and to = optimistic time. Most likely time (tm) is
the time that is the best guess for the completion of an activity (neither
optimistic nor pessimistic). It is not included in the calculation of the
variance.
28. (d)
b a 2
tp to
36
2
The variance of an activity is calculated as
36
b a 2 .
36
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Project Planning and Control
t 0 4t m t p
t= .
6
a 4b c
32. (b)
6
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Activities: Sequencing, Estimating Duration, and Scheduling
t 0 4t m t p
t= . In the given question, t0 = a, tm = b, and tp = c.
6
a 4b c
Therefore, expected time, t = .
6
33. (c) It can be more than the pessimistic time of that activity.
Optimistic time (t0) is the minimum amount of time within which an activity
can be completed. Pessimistic time (tp) is the maximum amount of time
required to complete an activity. Most likely time (tm) is the time that is the
best guess for the completion of an activity (neither optimistic nor
pessimistic).
t 0 4t m t p
Expected time, t = .
6
The expected time of an activity cannot be more than the pessimistic time of
that activity. However, it can be more than the optimistic time. The expected
time of an activity is more than, less than, or equal to the most likely time of
that activity.
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Project Planning and Control
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Activities: Sequencing, Estimating Duration, and Scheduling
path through the network. The length of the critical path gives the shortest
allowable time for the completion of the project. This helps the project
manager to concentrate and prioritize critical activities while allocating
project resources.
Crash slope is the per unit crash cost for each activity involved in a project.
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Project Planning and Control
46. (c) It does not show alternative plans in a single network diagram.
The graphical evaluation and review technique is similar to the project
evaluation and review technique. It allows multiple project activities by the
way of looping and branching project activities. The program evaluation and
review technique cannot show alternative plans in a single network diagram.
This problem is overcome in the graphical evaluation and review technique
as it shows alternative ways to continue the project.
47. (c) Activities that have a high per unit crash cost
Crashing refers to decreasing the total project duration after analyzing a
number of alternatives to determine how to get the maximum duration
compression for the least cost. Following are the type of activities that are
considered for crashing: activities that are of longer duration; activities that
are labor intensive; activities that are critical; activities that have a low per
unit crash cost; and activities that do not cause any quality problems, if
crashed.
48. (c) Schedule control
Schedule control studies all the factors that affect project schedules. It
determines the schedule changes and manages to complete them within the
desired time. Based on the changes, the project manager updates the project
schedules. Crashing refers to decreasing the total project duration after
analyzing a number of alternatives to determine how to get the maximum
duration compression for the least cost. In this technique, the project
manager attempts to reduce the project duration by carrying out project
activities in parallel. Schedule development is concerned with determining a
realistic start and finish time for project activities.
t 0 4t m t p
t=
6
Where,
t = expected time
to = optimistic time = 5 days
tm = most likely time = 7 days
tp = pessimistic time = 12 days
5 4 7 12
t= = 7.5 days.
6
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Activities: Sequencing, Estimating Duration, and Scheduling
B. 18 days
Earliest start times:
Activity A to X, EiX = 3 days
Activity B to X, EjX = 5 days
Activity C to X, EkX = 7 days
Duration estimates:
Activity A to X, tiX = 5 days
Activity B to X, tjX = 7 days
Activity C to X, tkX = 11 days
Earliest event time at X, EX = Maximum [(EiX + tiX), (EjX + tjX), (EkX + tkX)]
= [(3 + 5), (5 + 7), (7 + 11)] = (8, 12, 18) = 18 days.
C. 2, 0, -2
Total float = (L2 – E2 ) – t 12 = (20 – 11) – 7 = 9 – 7 = 2.
Free float = (E2 – E1 ) – t12 = (18 – 11) – 7 = 7 – 7 = 0.
D. 1
Total float = (L2 – E2 ) – t 12 = (18 – 9) – 8 = 9 – 8 = 1.
E. 25.34
t 0 4 t m t p t p t o 2
Activity Optimistic Most Pessimistic Expected time Variance
Time (to) Likely Time (tp)
Time (tm)
6 36
A 2 8 12 7.67 2.78
B 3 5 10 5.5 1.36
C 4 7 18 8.33 5.44
D 3 9 16 9.17 4.69
E 5 8 14 8.5 2.25
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Project Planning and Control
D = 9.17
E = 8.5
F. 16.52
Refer table above
Total variance of the project = Sum of variances of all the activities in the
project = 2.78 + 1.36 + 5.44 + 4.69 + 2.25 = 16.52.
G. 0.6554
Refer table above
z is the probability of completing the project in 27 days. It is calculated as:
x -µ 27 - 25.34
z= = = 0.4085.
σ 4.064
P(x≤27) P Z ≤
27 - 25.34
P (-α ≤ z ≤ 0) + P (0 ≤ z ≤ 0.4085)
(From the standardized normal distribution table or F(z) table, the area
under the normal curve corresponding to z = 0.4085 is 0.1554.)
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Activities: Sequencing, Estimating Duration, and Scheduling
H. 0.7823
Assume z is the probability of completing the project in 30 days. It is
calculated as:
30 28
P(x < 30) P z
2.56
tp to
J. 1.36
2
Variance =
36
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Project Planning and Control
Variance =
10 32 = 1.36.
36
K. 250
Given,
Normal cost = Rs. 2,500
Crash cost = Rs. 3,000
Normal time = 9 days
Crash time = 7 days
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Unit 9
Project Review
Structure
9.1 Introduction
9.2 Objectives
9.3 Importance of Project Review
9.4 Types of Project Reviews
9.5 Project Review Stages
9.6 Project Status Review Meetings
9.7 Advantages of a Project Status Review Meeting
9.8 Types of Project Status Meetings
9.9 Summary
9.10 Glossary
9.11 Self-Assessment Exercises
9.12 Suggested Reading/Reference Material
9.13 Answers to Check Your Progress Questions
9.1 Introduction
In the previous unit, we have discussed activity sequencing, estimation of
duration and scheduling. In this unit, we will discuss project review. Once a
project is organized, in terms of building the project team and drawing up the
operating rules, it is time for the project manager to design and develop an
effective tool to check whether the activities are proceeding as per the plan. This
task requires a mechanism to review the performance of various project aspects
such as project status, product design and process.
This unit will explain the importance of the project review process. We will
discuss the various types of project reviews and the different stages involved in
the project review. We shall then move on to discuss project status review
meetings and the advantages of conducting them. Finally, we would be
explaining the various types of project status meetings.
9.2 Objectives
By the end of this unit, the students should be able to:
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Project Review
2. In which of the following ways does the review help the project manager?
i. To remember the purpose of carrying out the project.
ii. To verify the completion of the project.
iii. To evaluate the cost of the project.
iv. To understand the project requirements.
a. Only i
b. Only ii and iii
c. Only iii and iv
d. i, ii, iii, and iv
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Project Planning and Control
responsible for the problem. A problem-solving project review has three steps: (i)
Identification of existing problems, (ii) Identification of factors that cause
problems, and (iii) Exploring solutions that can solve the problem. An effective
problem-solving approach is one that can get to the root cause of the problem,
rather than trying to tackle the symptoms.
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Project Planning and Control
Answer:
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Project Review
a. Status reviews
b. Cursory reviews
c. Process reviews
d. Comprehensive reviews
7. Project reviews must be conducted with the aim of solving the problem
rather than punishing those who are responsible for the problem. Which of
the following is the correct sequence of steps in problem solving?
i. Exploring the solutions that can solve problems.
ii. Identifying the factors that cause problems.
iii. Identifying the existing problems.
a. i-ii-iii
b. iii-ii-i
c. ii-iii-i
d. ii-i-iii
8. The review that is done on a weekly basis as part of the status review of the
projects is called
a. comprehensive review.
b. cursory review.
c. design review.
d. process review
9. Which of the following are the two objectives of process reviews?
i. To review the financial performance of the project.
ii. To preserve the performance of project processes that are going well.
iii. To improve the processes that are below standard.
iv. To ensure the safety of operators and maintenance personnel and take
precautions to minimize damage.
a. Only i and ii
b. Only i and iv
c. Only ii and iii
d. Only iii and iv
10. Which of the following aspects is not covered by design review?
a. Conditions of manufacturability
b. Serviceability
c. Control of costs in project implementation
d. Safety of operators and maintenance and personnel
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Project Planning and Control
In the initial stages of the project life cycle, i.e., after the project proposal has
been submitted.
At the stage when an in-depth evaluation is conducted i.e., after the primary
business case has been accepted.
During the implementation of the project, i.e., while the activities of the project
are being carried out, particularly at the following points – before entering into
major contracts; when the major output of the project is to be delivered; at points
where the risk is substantially high; and at points where major problems occur.
When the project is completed.
When auditing has to be conducted.
Evaluate the project efficiency by comparing the delivered output with the
planned one, in terms of time, cost and performance standards.
Ensure that the benefits are well documented for use in future projects.
Document the lessons learnt as these may be helpful in the management of
future projects.
Evaluate the benefits of the project and compare them with the benefits
envisaged in the initial plan
Judge the effectiveness and efficiency of the delivered output of the project
when it is put to use in real-life situations
Suggest corrective measures, if necessary
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Project Review
Document the lessons, as these may prove helpful in managing future projects
Be conducted keeping in mind the information requirements of the various
stakeholders, like the sponsor of the project, the functional departments, the end-
users and the clients.
Post project reviews have a special significance in project management.
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Project Planning and Control
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Project Review
Is the room big enough to accommodate all the participants? The room should
neither be too small nor too large.
The convenience of the place.
Are the seating arrangements comfortable? Can additional seats be provided if
required?
Does the room have proper light and ventilation?
Are the visual aids working properly?
Is additional stationery available?
Are name plates required?
Handling of messages.
Once these aspects have been taken care of, the preparation for the meeting are
over. Let us now see how a review meeting should be conducted.
Before starting a review meeting it is the responsibility of the project manager to
respect the protocol. The following measures/precautions have to be taken to
avoid the problems arising out of breach of protocol.
Participants must be given enough notice and the agenda given to them must
contain background information about the topics that are to be discussed
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Project Planning and Control
The heads of the relevant departments must be informed about the requirement
of expert subordinates
New comers must be introduced to the other members before the meeting starts
Participants must be listed in alphabetical order
Significant contributions made by persons inside and outside the group must be
acknowledged
Participants must be informed well in advance if the meeting is being postponed
or being canceled.
Once the meeting gets underway, it is the responsibility of the project manager
to encourage discussion, seek the opinions of all the participants and before
concluding the meeting, to summarize what was discussed at the meeting. The
project manager must ensure;
That all the participants have a clear understanding of the objectives of the
meeting.
That a time limit for the entire meeting has been set in the agenda and that this
time limit is made known before the meeting begins.
The meeting will be a success if all the participants agree upon the objectives
from the same point of view. The leadership skills of the project manager and
cooperation among the participants determine the success of the review
meetings. The project manager and the participants should;
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Project Review
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Project Planning and Control
18. Which of the following aspects have to be decided upon before a review
meeting is held?
v. Quorum for the meeting
vi. Frequency of the meeting
vii. Location of the meeting
viii. Recording and distributing minutes
a. Only i and iii
b. Only i, ii and iv
c. Only ii and iv
d. i, ii, iii and iv
19. Which of the following involves the recording of the proceedings of the
project status review meetings and forms an important part of the project
documentation?
a. Preparing agenda
b. Recording and distributing minutes
c. Status reviews
d. Design reviews
20. Reviewing the __________ is the purpose of holding the project review
meeting.
a. project budget
b. project status
c. project design
d. project duration
21. The _________ lists the issues that are to be discussed at the meeting.
a. minutes
b. agenda
c. duration of the meeting
d. time
22. Which of the following aspects need not be considered by the meeting
coordinator when deciding on the time and arrangements for the meeting?
a. The convenience of the place.
b. Whether the seating arrangements are comfortable.
c. Whether the visual aids are working properly.
d. The proximity of the meeting place to the project site.
identify potential problems; make sure the team has a clear idea of where the
project is going; and ensure that the entire team is willing to put in their efforts
to meet the project objectives.
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Project Planning and Control
9.9 Summary
Once the project enters the implementation phase, the project manager should
review the status of the project in a timely and phased manner. Project reviews
conducted at various stages of project implementation play a major role in the
success of a project.
Reviews are conducted to find out if the project can accomplish the business
goals; whether the rules of the organization are understood properly and
implemented; if it is worthwhile to take up the project at all before entering into
major contracts; and whether the project is managed effectively, and the team
members are sure of completing the project by following the guidelines.
A project manager has to conduct various reviews throughout the life of a
project to ensure that it is progressing towards achieving the planned objectives.
Generally, a project manager conducts three types of reviews – status reviews,
design reviews, and process reviews.
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Project Review
A review should always be conducted before taking any major decisions that
can affect the future of the project. Reviews can be conducted during the various
stages of the project life cycle such as initial stage, implementation stage, and
closing stage.
Meetings are an effective and essential means of conducting project reviews in
an organization. Project status review meetings are aimed at reviewing the
project status and have a specific agenda. At these meetings, decisions are made,
different aspects of the project are discussed, and the work is planned and
scheduled.
Project status meetings keep the participants informed about the project’s
progress. These meetings are usually attended by the representatives of senior
management, the project manager, the client and the key members of the project
team.
Project status meetings could either be long distance status meetings, which
allow two-way communication or meetings conducted through a “visibility
web-site” which allows only one-way communication.
9.10 Glossary
Agenda: Lists the issues that are to be discussed at the meeting and process
reviews are used to determine whether the processes are going as planned.
Comprehensive reviews: These are conducted monthly basis as part of the
status reviews. Status reviews and process reviews are not done at any fixed
milestones, but are conducted frequently to know the status and process of the
project.
Cursory reviews: These are conducted as a part of the status review on a
weekly basis.
Design review: The review conducted at the major milestones of project
implementation to ensure the performance quality of the project deliverable.
Long distance status meetings: Enable/s two-way communication between the
parties involved in the project through audio and video conferencing.
Open job report: A structure prepared to ensure that all the topics on the
agenda are discussed at these meetings and to keep track of all the parties
involved.
Visibility websites: One-way tools that help the project manager communicate
with parties situated at distant places.
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3. A project review should be conducted before taking any major decisions that
can affect the future of the project. What are the different stages in the
project life cycle at which a project manager can conduct project reviews?
4. Meetings are an effective and essential means of conducting project reviews in
an organization. What are these meetings? Describe the advantages of
conducting these meetings. What are the various ways in which these meetings
can be conducted?
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5. (d)Design review
Design review refers to the review conducted at the major milestones of
project implementation to ensure the performance quality of the project
deliverable. Design review is the tool to review the performance factor of
the project. Comprehensive review is done on a monthly basis as part of the
status reviews. Status reviews and process reviews are not done at any fixed
milestones, but are conducted frequently to know the status and process of
the project.
6. (c) Process reviews
Process reviews are sometimes conducted by external facilitators rather than
the project manager himself/herself. This is because the team members may
not feel free to be critical about the leadership skills of their project
manager, leadership being one of the processes crucial for the success of the
project. Cursory reviews and comprehensive reviews, which are part of
status reviews, are generally conducted by the manager himself/herself.
7. (b) iii-ii-i
The steps in the problem-solving process are: Identifying the existing
problems, identifying the factors that cause problems, and exploring
solutions that can solve the problems.
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meeting explore new problem areas and assign responsibility for solving
these problems, the project leader, the client, or the project manager makes
closing comments and the project manager closes the meeting after
announcing the venue, date, and time of the next review meeting. The
activity manager presents the progress since the last status meeting to the
members present at the meeting exploring new problem areas and assigning
responsibility for solving these problems.
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22. (d) The proximity of the meeting place to the project site.
The coordinator must consider the following while deciding on the place
and time of the meeting: Whether the room is big enough to accommodate
all the participants of the meeting, the convenience of the place, whether the
seating arrangements are comfortable, whether the room in which the
meeting is to be held has proper light and ventilation, whether the visual
aids are working properly, whether additional stationery and name plates are
required, and how messages are to be handled in the meeting.
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Unit 10
Project Control
Structure
10.1 Introduction
10.2 Objectives
10.3 The Fundamentals of Project Control
10.4 The Objectives of Control
10.5 Reasons for Measuring Duration and Cost Deviations
10.6 Control as a Function of Management
10.7 Control vs. Risk
10.8 Balancing the Control System
10.9 Control of Change and Scope Creep
10.10 Progress Reporting System
10.11 Types of Project Status Reports
10.12 Graphical Reporting Tools
10.13 Project Status Review Meetings
10.14 Managing Risk
10.15 Managing Quality
10.16 Summary
10.17 Glossary
10.18 Self-Assessment Exercises
10.19 Suggested Reading/Reference Material
10.20 Answers to Check Your Progress Questions
10.1 Introduction
In the previous unit, we have discussed about project review. In this unit, we will
discuss about project control. Project control is the process of collecting
information related to the performance of the project system, comparing it with
the desired level of performance and taking corrective action to decrease the gap
between the actual and the desired performance levels. The basic purpose of
project control is to control and manage change. Project control is not a separate
phase in itself but it goes hand in hand with the project implementation phase.
As the project progresses, the project manager gathers all the information
pertaining to project status from its team members and the clients. The
information gathered has to contain the progress made, percentage of work
completed and predictions indicating the possible date of completion. This is the
Project Planning and Control
right period for getting inputs on changes in activity dependencies and to decide
on the inclusion or exclusion of activities from the plan. The information
gathered can be analyzed to find out variances, to examine the total performance
of the project and to prepare monthly sales reports. The significant areas to look
out for variances are scope of the project, project schedule and resource
utilization.
This unit will deal with the fundamentals of project control. We will discuss the
objectives of control, control as a function of management, and the difference
between control and risk. We will also discuss the reasons for measuring
duration and cost deviations, and understand the ways to balance the control
system, and control change and scope creep. We shall then move on to discuss
progress reporting system and describe the various types of project status
reports. We will also discuss about the graphical reporting tools and project
status review meetings. Finally, we would be discussing the different ways to
manage risk and quality.
10.2 Objectives
By the end of this unit, students should be able to:
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a. Only i
b. Only i, iii and iv
c. i, ii, iii, and iv
d. Only ii, iii, and iv
5. Which of the following characteristics of project control means that the
system is open to extensions and alterations and is easy to operate?
a. Comprehensiveness
b. Flexibility
c. Simplicity
d. Moral soundness
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A report comprising the plan, schedule and budget made during the planning
phase.
Data consisting of the comparison between the resources spent in order to
achieve the delivered output and the scheduled output. This report should also
include an estimation of the remaining work.
An estimate of the resources required for the completion of the project.
These reports that are submitted to the project managers and team members are
useful in the following manner:
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Controlling Time
Some of the reasons that necessitate time control are – solving a technical snag
may require more time than estimated; time estimations that were done initially
were very optimistic; tasks were inappropriately sequenced; shortage of material,
personnel or equipment when required; incomplete preliminary tasks that were
necessary to complete a series of activities; and changing government
regulations.
When the project manager plots the actual performance or cost curve against the
planned performance or cost curve, he may observe some deviation between the
curves. This deviation between the curves cautions the project manager about
cost and performance overruns. This enables the project manager to initiate
timely corrective measures to minimize the deviations.
Weekly reports on the work in progress have to be made, to give the project
manager enough time to take corrective measures before the situation gets out of
control.
The variance between the planned/scheduled effort and the delivered effort has a
direct impact on the planned cumulative cost and schedule. A lower delivered
effort than the scheduled effort indicates that the potential has not been
optimized i.e., a person failing to enhance his/her effort in the following phases
of the project. However, if the delivered effort is more than the scheduled effort,
where progress is not in proportion with the effort put in, may result in a cost
over run. It is very important to detect the out of control situations early. The
longer one takes to detect a problem, the harder it will be to put the project back
on track.
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9. Among the following options, what is the type of variance in which the
delivered output is behind the project schedule or the cost incurred is more
than the scheduled cost?
a. Coefficient of variation
b. Positive variance
c. Negative variance
d. None of the above
10. ___________ is the deviation from the actual project plan.
a. Range
b. Variance
c. Coefficient of variation
d. None of the above
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Cybernetic Control
Cybernetic controls, also known as steering controls, are very common control
systems. Automatic operation is its chief characteristic. A cybernetic control is
like a steering in an automobile that enables the controller to keep the project on
track. Cybernetic controls are generally used to monitor and control tasks that
are carried out more or less continuously, for example, software projects. The
designing of cybernetic controls requires identifying mechanical tasks, based on
the Work Breakdown Structure (WBS).
The operation begins with an input that gets processed into an output. The
sensing unit that monitors the output of the process (that we wish to control)
sends the input to the comparison unit which then compares it with the standards
that are already set. The comparison unit after measuring the variation between
the input and the standard set, sends the output to the decision maker to decide
on the requirement of a corrective action depending on the size of variation. If
the variation is large enough to implement a corrective measure, the decision
maker acts on the processing unit or the input to get it in close congruence with
the set standards.
A cybernetic control system that minimizes the variation from the set standards
is known as a negative feedback loop. The control mechanism in a cybernetic
control system acts in a direction that is opposite to the one in which the
variation moves away from the standard. Also the speed of action of a control is
directly proportionate to the size of variation from the standard.
Cybernetic controls can be classified into three types, depending on the
sophistication of the standards set. A first order control system is a goal-seeking
device. It is a rigid system that seldom allows altering the set standards. The
standards once set can be altered only by an external intervention. For example,
once a standard temperature is set in a thermostat, the air-conditioning systems
operate to maintain it. A second order control system can alter the standards that
are set only in accordance with predetermined rules and regulations. A third
order control system is a flexible goal seeking device. These systems are flexible
enough to alter their standards from time to time, based on the evaluation of the
past performances. These systems can deal with contingencies better than the
rest.
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12. In the negative feedback loop cybernetic control system, the speed of action
of control is ________ proportionate to the size of variation from the
standard.
a. inversely
b. directly
c. conversely
d. None of the above
13. Cybernetic controls can be classified into various types depending upon the
sophistication of the standards set. Which of the following control system is
a flexible goal-seeking device?
a. First order controls
b. Second order controls
c. Third order controls
d. Fourth order controls
14. Individuals can respond to the goal directedness of control systems in
various ways. Which among the following is/are the ways through which
individuals respond to goal directedness of the control system?
i. Through active and passive participation and goal-oriented behaviour.
ii. Through passive involvement to minimize loss.
iii. Through active but negative involvement and resistance.
a. Only i
b. Only ii and iii
c. i, ii, and iii
d. Only i and ii
15. The setting up of the cybernetic controls requires various types of
information. Of the following, which type of information is not needed for
setting up the cybernetic controls?
a. Setting the standards for the defined characteristics.
b. Defining the characteristics of the output that is to be controlled.
c. Milestones achieved in project implementation.
d. Transforming the measurements into signals that are to be compared
with the set standards.
16. A cybernetic control system that minimizes the variation from the set
standards is known as a __________.
a. negative feedback loop
b. go/no-go controls
c. post controls
d. None of the above
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As cost and time overruns may require the organization to pay penalties to the
customer, Go/No-go controls are instituted to check whether the output meets the
preset cost and time standards. These control systems are flexible and apply to all
the aspects of project management. The project plan, budget and schedule are the
control documents that contain preset milestones that act as verification points.
Controls are usually done at the level of detail as mentioned in the project plan,
budget and schedule. The periodicities with which Go/no-go controls are
operated are regular and preset. Preset intervals are decided upon with the help
of calendars or the operating cycles. Because project milestones do not happen
as planned in the calendar, it is advantageous to link these controls to the actual
plans and the happening of real events. But a judicious use of these controls is
advisable. While some parameters of output have to meet a particular standard
range, others may or may not meet the standards precisely.
The major difference between the cybernetic and the Go/No -go control system
is that a cybernetic system functions automatically and continuously, while a
go/no-go system functions only when it is put into application by the controller,
and is periodic.
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Milestones: These are the key parameters that highlight the control activity.
Milestones, which are in the form of output, are delivered by the project. If the
project is able to meet the milestones on time and budget and at a desired quality
level, the project manager can be sure that the project is proceeding smoothly.
10.6.5 Post Controls
These are the control systems that are applied after the completion of the project.
These are also called post project controls or reviews. As George Santayana said
“Those who cannot remember the past are condemned to repeat it”. Thus, while
cybernetic and go/no-go controls help a firm to accomplish the goals of current
projects, post control tries to enhance the firm’s chances of meeting future project
goals, on the basis of lessons learnt in the past projects. A post control report has
the following sections:
The Objectives of the Project
The post control report explains the objectives of the project. It also includes the
effect of change requisitions and their approvals on the project scope. Though the
actual output of the project depends partially on uncontrollable external factors such
as strikes, vendor delays, climatic conditions etc., the assumptions made while
planning the budget and schedule should also be mentioned. Enough care has to be
taken while giving assumptions so that they do not seem to be excuses to cover
failures in the later projects.
Milestones, Checkpoints, and Budgets
This part of the post control report compares the actual project performance with
the plans and points out deviations. This section includes the different status
reports prepared during the project life cycle.
The Final Project Result Report
In this final project result report no distinction is made between positive or
negative deviations while reporting the deviation of actual performance from the
planned performance. The report is focused on the “How” aspect of the deviation
rather than the “What” aspect. This part of the post control report describes the
techniques that were used to plan and direct the project, review the
communication networks and monitoring and control systems used during the
project life cycle and examines the interactions between different work groups.
Recommendations for Performance and Process Improvement
This final section of the post control report contains recommendations for future
projects. Though most of the reasons for deviation are one time events, some of
the reasons are likely to recur and these are the areas that need attention. The
predictability of such events can be improved by psroviding a slot for them in
the project plan. Organizational systems and management techniques that proved
effective in the current project can be used for future projects. Thus post control
has a significant impact on the way future projects are handled. The control
mechanisms are aimed at minimizing the amount of risk involved in managing
projects. However, risk cannot be eliminated totally.
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a. project proposal.
b. project plan.
c. project budgets.
d. project specifications.
23. Out of the following control mechanisms, identify the ones applied
periodically.
a. Cybernetic controls
b. Go/No-go controls
c. Post controls
d. None of the above
work. Controls do not come without a cost. Exercising greater control pushes up
the cost of the project and leads to micromanaging events. The project manager
has to decide as to what extent the project has to be controlled. Excessive control
induces rigidity and tends to block creativity. The project manager should
encourage creativity. The cost of control should be measured against its effect on
the team members. Figure 10.1 gives the total cost of control and risk. It depicts
the relationship between risk and control. Conceptually, the balance point
reduces the overall cost liability for choosing a specific degree of control.
The fact that investment in control and returns are inversely proportional to each
other is to be kept in mind before designing a balanced control system. A linear
increment in the degree of control results in an exponential hike in the cost.
A balanced control system acknowledges that exerting control beyond a point
would dampen creativity.
A balanced control system focuses on correcting errors, rather than
punishments.
A balanced control system exercises only the minimum control that is required
to achieve the project goals.
On the whole, a balanced control system is one that is cost effective and well
equipped to seek the end results. For example treating everyone equally appeals
to a sense of equity, but treating everyone individually would achieve better
results.
Focusing on easy to measure factors, while ignoring intangible factors that are
difficult to measure.
Laying greater emphasis on short-term results rather than on long-range
objectives.
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Project Control
Ignoring the organizational goals and structural changes brought about by time
and the circumstances in which the firm operates.
Exercising too much control.
When organizations adopt management by objectives employees may ignore
activities that are not considered for measurement.
Implementing a balanced control system is difficult. An important principle that
is often overlooked is the need to relate the controls directly to the project goals.
Also controls should be related to particular performance outputs. The process of
relating controls to the project goals starts by describing the desired outputs as
precisely as possible. Then the potential reasons for deviations are examined,
after which proper controls are developed for these reasons starting with the one
that can cause the highest intensity of deviation.
Striking a balance between the long-term and short-term controls is a difficult
task because project managers are often more concerned with achieving the
short-term objectives rather than long-term goals.
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c. Post controls
d. None of the above
Examining the changes that are requested by the stakeholders of the project
Determining the impact of these changes on the cost, schedule and performance
of the project
Exploring alternate changes that could yield the same or better output
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Project Control
All project agreements should include a detailed report on how requests for a
change in the plan, budget, schedule or the output of a project should be
introduced and processed.
A “change order” that describes every change in the project should be prepared.
This must include a description of the changes that are agreed upon, along with
corresponding changes in the plan, budget, schedule and output.
An approval letter must be obtained, both from the client’s agent and senior
management’s representative, on the changes to be implemented. The project
manager should be consulted before the change order is finalized. However, the
approval of the project manager is not mandatory.
Once the “change order” is approved, a master plan of the project should be
made reflecting the changes and the change order is now a part of the master
plan.
An effective change management process contains two documents:
Accommodating the change within the allocated resources and time schedule of
the project.
Accommodating the change with an extension in the delivery schedule of the
project.
Accommodating the change with additional resources and/or extension in
delivery schedule.
Implementing the change in a phased manner by the way of prioritizing the
output needed.
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Answer:
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Recording the number of hours spent per day to finish the task: The man hours
already spent on a task and also an estimate of the man hours required to
accomplish the remainder of the task.
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Standalone tools
Mid Range tools
High end Enterprise Management tools
Software as a Service (SaaS) model and
Open Source Project Management tools
For example, GanttProject is a simple project management tool to track tasks and
resources. The tool enables identification of hierarchical task dependencies,
define milestones, create work breakdown structure, create resource load chart,
view critical path in network, create PERT chart and generation of project status
reports.
Thus the use of IT in project monitoring, an integral part of project management
is increasingly dependent upon IT for on line information and speedy corrective
actions.
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there have been some problems in the execution of the project, a plan is in place
to deal with these problems. An additional sheet attached to the report, describes
the problems in a detailed manner along with the measures that have been taken
to correct these problems and gives an estimate of the time needed to complete
this rectification. A red sticker is placed on the top right hand corner of the first
page of the project status report, to indicate that there is a serious problem in the
project for which no corrective measures have been developed. The conditions
in the red sticker reports are beyond the control of the project manager.
Answer:
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32. The project reports are classified into various categories depending upon the
degree of detail and frequency of reporting. Identify the kind of report that
describes the project activities that have recently been completed.
a. Cumulative reports
b. Current period reports
c. Exception reports
d. None of the above
33. Which of the following are the alterations that are used to attract the
attention of the senior management to the status of the project?
a. Variance reports
b. Spotlight reports
c. Exception reports
d. None of the above
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unrealistic time estimates at the planning stage or due to some data error
occurring while preparing the trend chart. Hence a project manager has to
conduct further enquiry to find out the reasons for such changes.
A cost schedule control measures the budgeted cost of work scheduled, the
budgeted cost of work performed, and the actual cost of work performed.
Schedule variance and cost variance are the two-variance values resulting from
the above measurements.
A cost schedule control tool can be used not only to measure the health of a
project and report its history but also to predict the future status of the project.
Measuring the budgeted cost of work scheduled, budgeted cost of work
performed and the actual cost of work performed results in knowing the two
variance values that are schedule and cost variances. Apart from measuring and
reporting history, cost schedule control can also be used to predict the future
status of the project.
Inspite of designing and implementing various tools for reporting the progress of
the project there are some unanswered queries and doubts that can be solved
only by conducting project status review meetings that add a personal touch to
the mechanical processes involved.
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Project status review meetings are used to review the status of projects. They are
not general discussions or meetings trying to solve a generic problem, but focus
on a single project with specifically timed agendas. Various kinds of reviews are
conducted throughout the project life cycle. For a project to be called a
successful one, the timing of reviews is important. A project undergoes the
following reviews during its life-cycle – status review (reviews the status of cost,
performance, schedule and scope), design review (reviews the design of the
product or service to ensure that it meets client requirements), and process
review (reviews the processes and checks for the possibility of any
improvements).
The most frequently conducted review is the status review. A status review can be
comprehensive or cursory. Generally, a cursory review is conducted on a weekly
basis while a comprehensive review is conducted on a monthly basis. Generally,
for a project of one-year duration, a weekly cursory review and a monthly
comprehensive review will suffice. When the project runs into difficulties, the
frequency of reviews increases until the problem is solved. To avoid
micromanagement, the frequency of status reviews should be limited. A status
review should, ideally solve problems, not punish people. It is always
advantageous to know the kinds of problems existing in a system, the factors
causing these problems and the corrective measures required to solve them.
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Participants in the
Specific Task Common Task
Review Meeting
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38. Which of the following types of project review assesses the design of the
product or service to ensure that it meets the requirements of the clients?
a. Design review
b. Status review
c. Process review
d. None of the above
39. Which of the following project review meetings are conducted to measure
the position of cost, performance, schedule, and scope of the project?
a. Process review
b. Design review
c. Status review
d. None of the above
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41. Which of the following are the characteristics of an effective quality control
system?
i.Capability in identifying what to control
ii.Developing quality measurement tools
iii.Detailed documentation of the process
iv.Monitoring and calibrating the devices used to measure quality
a. Only ii
b. Only i and iv
c. i, ii, iii, and iv
d. Only iii and iv
42. The probability of not meeting a pre-defined project goal is called
__________.
a. quality
b. risk
c. control
d. None of the above
10.16 Summary
Project controls are tools developed to diagnose the system for deviations from
the actual plan and reset them back with the actual plans/schedule.
Project controls are required to check whether the project is progressing in
accordance with the plans and standards set during the planning phase.
For a control system to be effective and efficient, it should have the following
characteristics – comprehensiveness, communicability, authenticity, timeliness,
simplicity, flexibility, and morally sound.
The primary objective of control is regulation, while the secondary objective of
control is conservation of resources.
It is important to measure duration and cost deviations because they play a
significant role in the project management life cycle. Though all the parameters
of project management have their own levels of significance, time and cost
share a special place.
Project control is generally implemented through people. Any form of control
has a significant impact on human behavior. Because of this, it becomes
necessary to study project control with special reference to people and their
behavior.
The process of controlling a project is a highly complex task. Project control is
used to check the four key parameters time, cost, scope and performance.
There are three basic control mechanisms – cybernetic control, go/no-go control,
and post control.
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Project Planning and Control
The project plan may go out of balance any time and hence as a precautionary
measure, we require a corrective plan that can bring the system back to
equilibrium. Control systems are designed in such a way that they enable early
detection of problems and a faster implementation of corrective measures.
The greater the control exercised over a project, the less likelihood there is of
project getting into trouble. The project manager has to decide as to what extent
the project has to be controlled as controls are costly. The balance point reduces
the overall cost liability for choosing a specific degree of control.
Controlling the scope of a project involves attempts to include changes in the
project scope when they occur and manage these changes simultaneously.
Once the project enters the implementation phase, the project manager has to be
kept informed about how the project is progressing. This can be done through an
effective reporting system.
Depending on the degree of detail and the frequency of reporting, project status
reports can be classified into five categories -- current period reports, cumulative
reports, exception reports, spotlight reports, and variance reports.
Gantt charts, milestone trend charts, and cost schedule control are the various
techniques that use graphs as their reporting tools.
Project status review meetings are used to review the status of projects. They
focus on a single project with specifically timed agendas.
Various kinds of reviews are conducted throughout the project life cycle. A
project undergoes the following reviews during its life-cycle – status review,
design review, and process review.
Control and risk are indirectly related to each other. The higher the level of
control, the lower the risk of project failure.
Quality can be defined as the totality of features and characteristics of a product
or service which bear on its ability to satisfy a stated or implied need.
Developing and managing a control system to test the quality of the final
product or service is high priority in project management.
10.17 Glossary
Cybernetic Controls (or steering controls): These are used to monitor and
control tasks that are carried out more or less continuously, for example,
software projects.
Progress Reporting System: A mechanism that keeps the project organization
updated on the performance of the vendor, i.e., the way in which he is achieving
the objectives of the contract.
Project Control: The process of collecting information related to the
performance of the project system, comparing it with the desired level of
performance and taking corrective action to decrease the gap between the actual
and the desired performance levels.
Project Plan: A formal, approved document used to manage and control project
execution.
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10. Control and risk are indirectly related to each other. Also, a proper control
system should be in place. How can the project manager manage the risk
involved and the quality of a project? Explain the characteristics of an effective
quality control system.
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5. (b) Flexibility
Flexibility refers to the system being open to extensions and alternations and
being easy to maintain. Comprehensiveness refers to the detailed overview
of the work performed. Simplicity and being morally sound refer to the
system being simple to operate and conforming to all the ethical standards.
Variance is the deviation from the actual project plan. Based on the
parameters of time and cost, the variances may either be positive variances
(when the resulting output exceeds the expectations) and negative variances
(when the resulting output falls below the expectations).
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Post controls are the control mechanisms that are applied after the
completion of the project. The cybernetic and Go/No-go controls are applied
at the time of project implementation itself. The negative feedback loop is a
part of the cybernetic controls.
The post control report has the following sections: objectives of the project,
milestones, checkpoints, and budgets, final project report, and
recommendations for performance and process improvement.
Project specifications are the set of rules and regulations under which the
objectives of the project are met. The other given options in the question are
wrong because the project proposal specifies the expected business value
along with the cost and time estimates of the project. The project plan gives
the ends and means of a particular action or objective. Project budgets are
the documents with estimation of the costs required to complete the project.
The Go/No-go control system functions only when it is put into application
by the controller. It is applied periodically. Cybernetic control functions
continuously and automatically. Post controls are applied only after the
completion of the project.
In the control process, the project manager has to strike a balance between
risk and control. The available options in the control process are high risk
with low control and high control with low risk as risk and control have an
inverse relationship with each other.
25. (b) Laying too much emphasis on long-range objectives rather than
short-term results.
Laying too much emphasis on the short-term results rather than the long-
term objectives is one of the causes for imbalances in the control system.
The other options given in the question are the causes for imbalance in the
control system.
171
Project Planning and Control
172
Project Control
173
Project Planning and Control
174
Project & Operations Management
Course Components
BLOCK I Project Management – An Overview
Unit 1 Introduction to Project Management
Unit 2 Project Idea Generation and Screening
Unit 3 Market and Technical Analysis of Projects
Unit 4 Financial Analysis of Projects
Unit 5 Project Selection
BLOCK II Project Planning and Control
Unit 6 Management of Project Scope
Unit 7 Identifying Project Activities
Unit 8 Activities: Sequencing, Estimating Duration, and Scheduling
Unit 9 Project Review
Unit 10 Project Control
BLOCK III Project Implementation and Closing
Unit 11 Project Cost Management
Unit 12 Project Risk Management
Unit 13 Project Quality Management
Unit 14 Project Auditing
Unit 15 Project Closing
BLOCK IV Introduction to Operations Management
Unit 16 Operations Management and Operations Strategy
Unit 17 Forecasting Demand
Unit 18 Allocating Resources to Strategic Alternatives
Unit 19 Design of Production Processes
BLOCK V Design of Facilities and Operations Planning
Unit 20 Facility Location and Layout
Unit 21 Aggregate Planning and Capacity Planning
Unit 22 Fundamentals of Inventory Control
Unit 23 Purchase Management
Unit 24 Materials Management
BLOCK VI Operations Control
Unit 25 Operations Scheduling
Unit 26 Enterprise Resource Planning
Unit 27 Supply Chain Management
Unit 28 Just-In-Time (JIT) Manufacturing System
Unit 29 Productivity and Quality Management
Unit 30 Facilities and Maintenance Management
BLOCK VII Current Trends in Operations Management
Unit 31 Trends in Operations Technology
Unit 32 Globalization and Operations Management
Unit 33 Sustainability and Operations Management