Chapter 7

Project
Management

Part one
Contents

 Project , project management

 How to construct project network
 developing project schedule
 analyze crashing networks
 PERT
 monitoring and controlling projects
What is a Project?
Project
• An interrelated set of activities with a definite starting
and ending point, which results in a unique outcome
for a specific allocation of resources.

Examples.

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Three main goals for any project:

• 1. complete the project on time or earlier

• 2. do not exceed the budget

• 3. meet the specifications to the satisfaction of the

customer

• Constraints: time, cost, quality

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What is Project Management?
Project Management
• A systemized, phased approach to defining, organizing,
planning, monitoring, and controlling projects.

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Defining and Organizing Projects

• Defining the Scope and Objectives of a Project

• Selecting the Project Manager and Team
• Recognizing Organizational Structure

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Constructing Project Networks
• 1-Defining the Work Breakdown Structure (WBS)
• 2- Diagramming the Network
• Developing the Project Schedule
• Analyzing Cost-Time Trade-offs
• Assessing and Analyzing Risks

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• Work Breakdown Structure
– A statement of all work that has to be completed.
• Activity
– The smallest unit of work effort consuming both time and
resources that the project manager can schedule and
control.

– EXAMPLES?

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Work Breakdown Structure
Figure 7.1 Work Breakdown Structure for the St. John’s Hospital Project

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Diagramming the Network (1 of 2)

• Network Diagram : A network planning method

designed to depict the relationships between activities,
that consist of nodes (circles) and arcs (arrows)

– Program Evaluation and Review Technique (PERT)

– Critical Path Method (CPM)

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Diagramming the Network (2 of 2)
• Precedence relationship:
– A relationship that determines a sequence for
undertaking activities; it specifies that one activity
cannot start until a preceding activity has been
completed.

• Estimating Activity Times

– Statistical methods
– Learning curve models
– Managerial opinions

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Example 7.1 (1 of 2)
Immediate Activity
Activity Predecessors Times (wks) Responsibility
B. Select site and survey Start 9 Taylor

C. Select medical equipment A 10 Adams

D. Prepare final construction plans B 10 Taylor

E. Bring utilities to site B 24 Burton

F. Interview applicants for nursing and support staff A 10 Johnson

Physical Facilities and Infrastructure blank blank Walker

G. Purchase and deliver equipment C 35 Sampson

H. Construct hospital D 40 Casey

I. Develop information system A 15 Murphy

J. Install medical equipment E, G, H 4 Pike

K. Train nurses and support staff F, I, J 6 Ashton

Finish K 0 blank

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Example 7.1 (2 of 2)
Figure 7.2 network:
Immediate Predecessor

A —
B —
C A
D B
E B
F A
G C
H D
I A
J E,G,H
K F,I,J
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Application 7.1 (1 of 2)
The following information is known about a project

Immediate
Activity Activity Time (days) Predecessor(s)
A 7 —
B 2 A
C 4 A
D 4 B, C
E 4 D
F 3 E
G 5 E

Draw the network diagram for this project

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Application 7.1 (2 of 2)
Immediate
Activity Activity Time (days) Predecessor(s)
A 7 —
B 2 A
C 4 A
D 4 B, C
E 4 D
F 3 E
G 5 E

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Developing the Project Schedule

• Path
– The sequence of activities between a project’s start
and finish.

• Critical Path –
– The sequence of activities between a project’s start and
finish that takes the longest time to complete.

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 Issue to consider:

• Estimate the project completion time by finding the

critical path.

• Identify the start and finish times for each activity for a
project schedule.

• Calculate the amount of slack time for each activity

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Example 7.2 (1 of 5)
Paths are the sequence of activities between a
project’s start and finish.

Path Time (wks)

A-I-K 33
A-F-K 28
A-C-G-J-K 67
B-D-H-J-K 69
B-E-J-K 43

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