2. Index
2
Definition & Meaning
Four Phases Of Project Management
A Framework For Project Mgt
Tools & Techniques For Project Mgt
Network Problem CPM & PERT
Components Of CPM/ PERT Network
1. Critical Path Analysis (CPM) & CPM
steps
2. Project Evaluation Review Technique
(PERT)
Difference Between CPM & PERT
* Project Management *

3. Definition & Meaning
3
Project management offers alternative tools
and techniques to address the planning and
control issues pertaining to large scale
activities performed in a non-repetitive
manner.
Project activities are likely to be unique and
may involve high levels of
subcontracting, breaking down the system
into several sub systems and managing
these and their interfaces.
* Project Management *

4. Four Phases Of Project
4
Management
• Conceptual design, scope, objectives, project
Conceptual phase
appraisal, budgeting
• Work breakdown structure, organization breakdown
structure, cost breakdown structure, network
Planning phase
representation, setting dead lines, milestones, resources
planning
• Resource mgt, performance
Implementation & appraisal/control, materials and contract
control phase mgt, managing risks in project
• Post project appraisal
feedback
* Project Management *

5. A Framework For Project Mgt
5
How well? Project What?
Monitoring & Work Breakdown
Control, post Structure
project
appraisal
WBS
OBS
CBS
Network Organization NRP
Representation Breakdown PMC
& Planning Structure
When? Cost Breakdown Who?
Structure
How much? * Project Management *

6. contd….
6
 Work Breakdown Structure - is an organised
methodology to split an overall project into non-
overlapping components and identifying deliverables
for each component.
 Organization Breakdown Structure – identifies an
appropriate organisational structure to execute the
tasks listed under each work package.
 Cost Breakdown Structure – is a methodology to
link the individual elements in a WBS to a dimension
of cost.
 Network Representation & Planning
 Project Monitoring & Control, post project
appraisal
* Project Management *

7. Tools & Techniques For Project Mgt
7
B) Analysis of project networks
A) Developing a network 1. Project completion time &
representation of a project critical path
1. Activity precedence 2. Early start & late start
2. Constructing the network schedules
3. Slack for an activity
C) Addressing time and
resource constraints in
projects D) Handling uncertainty in
project completion
1. Resource leveling
1. Use of PERT
2. Developing alternative
schedule 2. Probability of completion
3. Time-cost trade offs in projects
* Project Management *

8. Network Problem CPM & PERT
8
Any project involves planning, scheduling and
controlling a number of interrelated activities with
use of limited resources namely
men, machines, materials, money & time.
The projects may be extremely large and complex
such as construction of a housing, a highway, a
shopping complex, introduction of new products and
research and development projects etc.
* Project Management *

9. Contd…..
9
It is required that managers must have a dynamic planning and
scheduling system to produce the best possible results and
also to react immediately to the changing conditions and make
necessary changes in the plan and schedule.
A convenient analytical and visual technique of PERT and CPM
prove extremely valuable in assisting the managers in
managing the projects.
PERT stands for Project Evaluation and Review Technique
developed during 1950’s.
CPM stands for Critical Path Method which was developed by
DuPont Company.
* Project Management *

10. Components Of CPM/PERT Network
10
CPM / PERT networks contain two major components -
1. Activities : An activity represents an action and
consumption of resources (time, money, energy) required to
complete a portion of a project. Activity is represented by
an arrow .
Activities performed before given events are known as
preceding activities, & activities performed after a given
event are known as succeeding activities
2. Events : An event (or node) will always occur at the
beginning and end of an activity. The event has no
resources and is represented by a circle .
* Project Management *

11. 1. Critical Path Analysis
11
The critical path for any network is the longest path
through the entire network. Since all activities must be
completed to complete the entire project, the length of the
critical path is also the shortest time allowable for
completion of the project. Thus if the project is to be
completed in that shortest time, all activities on the critical
path must be started as soon as possible. These activities
are called critical activities.
If the project has to be completed ahead of the
schedule, then the time required for at least one of the
critical activity must be reduced. Further, any delay in
completing the critical activities will increase the project
duration. * Project Management *

12. CPM undergoes following steps
Breakdown the projects into various activities & arrange them in logical sequence by constructing arrow
diagrams.
Number all the events & activities. Note the time for each activity and indicate on arrow
diagram.
Calculate the earliest start time, earliest finish time, latest start time & latest finish
time .
Identify the critical activities.
Calculate the total project duration.
To reduce the duration crash the critical activities of the
network.
Optimise the cost.
Update the network & smoothen the resources.
* Project Management *

13. 2. Project Evaluation Review
Technique, (PERT)
13
In the critical path method, the time estimates are
assumed to be known with certainty. In certain
projects like research and development, new product
introductions, it is difficult to estimate the time of
various activities. Hence PERT is used in such
projects with a probabilistic method using three time
estimates for an activity, rather than a single estimate.
They are –
 Optimistic Time (TO)
 Most Likely Time (TM)
 Pessimistic Time (TP)
* Project Management *

14. Difference Between CPM & PERT
14
CPM PERT
1. CPM has single time 1. PERT has three time estimates for
estimate. activities and uses probability theory to
2. Useful for repetitive find the chance of reaching the
and non-complex scheduled time.
projects where time 2. Useful for non-repetitive and complex
estimates can be projects with uncertain time estimates.
made. 3. Probabilistic in nature.
3. Deterministic in nature. 4. Used often in R&D projects.
4. Used often in 5. PERT is used for analysis of project
construction projects. scheduling problems.
* Project Management *

16. Bibliography & Webliography
16
Tilak
maharashtra
http://www.aut vidyapeeth
horstream.com study
/Presentation/s material
anulal-189545-
network-
B. Mahadevan problem-pert-
cpm-
entertainment-
ppt-
powerpoint/
* Project Management *