INDUSTRIAL MANAGEMENT

UNIT-5

PRESENTED BY:
RITU JAIN(A.P)
CSE,NIET
 PROJECT

• A project is defined as a series of tasks that must be

completed in order to reach a desired outcome.
 PROJECT MANAGEMENT

• Project management, is the application of knowledge,

skills, tools, and techniques to project activities to
meet the project requirements.
• Project management processes fall into five
groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
5 PHASES OF PROJECT MANAGEMENT
 PERT
• In project management, Project Evaluation Review Technique
or PERT is used to identify the time it takes to finish a
particular task or activity. It is a system that helps in
proper scheduling and coordination, of all tasks throughout the
project.
• It also helps in keeping track of the progress, or lack thereof,
of the project. In the 1950s, Project Evaluation Review
Technique was developed by the US NAVY to manage the
Polaris submarine missile program of their Special Projects
Office.
 Creating a PERT Chart

• There are four definitions of time needed to finish an

activity.
1. Optimistic time – The least amount of time to complete a
task
2. Pessimistic time – The maximum amount of time to
complete a task
3. Most likely time – Assuming there are no problems, it
is the best estimate of how long it would take to
complete a task.
4. Expected time – Assuming there are problems, it is the best
estimate of how long it would take to complete a task.
 Advantages of PERT

• It helps maximize the use of resources.

• It makes project planning more manageable.
• It’s useful even if there is little or no previous
schedule data.
• It enables project managers to determine a
more definite completion date.
 Disadvantages of PERT

• In complex projects, many find PERT hard to

interpret, so they also use a Gantt Chart,
another popular method for project
management.
• It can be tedious to update, modify and
maintain the PERT diagram.
• It entails a subjective time analysis of activities,
and for those who are less experienced or
biased, it may affect the project’s schedule.
 CPM
• The critical path method (CPM) is a step-by-
step project management technique for process
planning that defines critical and non-critical
tasks with the goal of preventing time-frame
problems and process bottlenecks. The CPM is
ideally suited to projects consisting of
numerous activities that interact in a complex
manner.
 In applying the CPM, there are several steps
that can be summarized as follows:
• Define the required tasks and put them down in an
ordered (sequenced) list.
• Create a flowchart or other diagram showing each
task in relation to the others.
• Identify the critical and non-critical relationships
(paths) among tasks.
• Determine the expected completion or execution
time for each task.
• Locate or devise alternatives (backups) for the
most critical paths.
 Key Steps in Critical Path Method

• Step 1: Activity specification

• You can use the Work Breakdown Structure
(WBS) to identify the activities involved in the
project. This is the main input for the critical path
method.
• In activity specification, only the higher-level
activities are selected for critical path method.
• When detailed activities are used, the critical path
method may become too complex to manage and
maintain.
Step 2: Activity sequence establishment

• In this step, the correct activity sequence is

established. For that, you need to ask three questions
for each task of your list.
• Which tasks should take place before this task
happens.
• Which tasks should be completed at the same time as
this task.
• Which tasks should happen immediately after this
task.
Step 3: Network diagram

• Once the activity sequence is correctly

identified, the network diagram can be drawn
(refer to the sample diagram above).
• Although the early diagrams were drawn on
paper, there are a number of computer
software's, such as Primavera, for this purpose
nowadays.
Step 4: Estimates for each activity

• This could be a direct input from the WBS based

estimation sheet. Most of the companies use 3-point
estimation method or COCOMO based (function
points based) estimation methods for tasks estimation.
• You can use such estimation information for this step
of the process.
Step 5: Identification of the critical path

• For this, you need to determine four parameters of

each activity of the network.
• Earliest start time (ES) - The earliest time an
activity can start once the previous dependent
activities are over.
• Earliest finish time (EF) - ES + activity duration.
• Latest finish time (LF) - The latest time an
activity can finish without delaying the project.
• Latest start time (LS) - LF - activity duration.
• The float time for an activity is the time between
the earliest (ES) and the latest (LS) start time or
between the earliest (EF) and latest (LF) finish
times.
• During the float time, an activity can be delayed
without delaying the project finish date.
• The critical path is the longest path of the network
diagram. The activities in the critical path have an
effect on the deadline of the project. If an activity
of this path is delayed, the project will be delayed.
• In case if the project management needs to
accelerate the project, the times for critical path
activities should be reduced.
 Step 6: Critical path diagram to show project
progresses

• Critical path diagram is a live artifact.

Therefore, this diagram should be updated
with actual values once the task is completed.
• This gives more realistic figure for the
deadline and the project management can
know whether they are on track regarding the
deliverables.
 Advantages of Critical Path Method

• Offers a visual representation of the project

activities.
• Presents the time to complete the tasks and the
overall project.
• Tracking of critical activities.
 PERT vs CPM
BASIS FOR COMPARISON PERT CPM
Meaning PERT is a project CPM is a statistical
management technique, technique of project
used to manage uncertain management that manages
activities of a project. well defined activities of a
project.
What is it? A technique of planning A method to control cost
and control of time. and time.
Orientation Event-oriented Activity-oriented
Model Probabilistic Model Deterministic Model
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non-critical No differentiation Differentiated
activities

Suitable for Research and Development Non-research projects like

Project civil construction, ship
building etc.

Crashing concept Not Applicable Applicable

Evolution Evolved as Research & Evolved as Construction

Development project project

Focuses on Time Time-cost trade-off

Estimates Three time estimates One time estimate

 PROJECT CRASHING AND RESOURCE
LEVELING

• Resource leveling is a technique in project

management that overlooks resource allocation
and resolves possible conflict arising from over-
allocation. When project managers undertake a
project, they need to plan their resources
accordingly.
• This will benefit the organization without having
to face conflicts and not being able to deliver on
time. Resource leveling is considered one of the
key elements to resource management in the
organization.
• An organization starts to face problems if
resources are not allocated properly i.e., some
resource may be over-allocated whilst others
will be under-allocated. Both will bring about
a financial risk to the organization.
 The Two Key Elements of Resource
leveling
• As the main aim of resource leveling is to
allocate resource efficiently, so that the project
can be completed in the given time period.
Hence, resource leveling can be broken down
into two main areas; projects that can be
completed by using up all resources, which are
available and projects that can be completed
with limited resources.
• Projects, which use limited resources can be
extended for over a period of time until the
resources required are available. If then again,
the number of projects that an organization
undertakes exceeds the resources available,
then it's wiser to postpone the project for a
later date.
 Structure of Resource leveling

• Stage
• Phase
• Task/Deliverable
 The Process of Assigning Resources

• For resource leveling to take place, resources

are delegated with tasks (deliverables), which
needs execution. During the starting phase of a
project, idealistically the roles are assigned to
resources (human resources) at which point the
resources are not identified.
• Later, these roles are assigned to specific tasks,
which require specialization.
 Resource leveling Techniques

• Fast tracking - This performs critical path tasks. This

buys time. The prominent feature of this technique is
that although the work is completed for the moment,
possibility of rework is higher.
• Crashing - This refers to assigning resources in
addition to existing resources to get work done faster,
associated with additional cost such as labor,
equipment, etc.
• Crashing a project is an advanced project
management technique, which means to add
the appropriate amount of skilled project
resources to critical path task(s).

• A skilled project resource is commonly used

to compress the project schedule.
• Crashing your project will directly impact two out
of three of your project triple constraints, which
are schedule and cost.
• Crashing your project will accelerate your project
delivery schedule and increase your project
budget; however, it will have no effect to your
project scope.
• Typically, when project sponsors want you to
crash your project, it means they're not concerned
about the project costs. Either they have
unrestricted budgets, or they just want you to get
the project done as fast as possible.
• Consequently, since crashing your project will
increase your project cost, you must identify all
critical path tasks that have the potential to
compress your project schedule.
• If you are unable to add resources to critical path
tasks resulting in shortening your project
schedule, don't attempt to implement project
crashing.
• Also, don't select non-critical path tasks to crash
because adding additional resources to non-
critical path tasks will have no effect to your
project schedule.