Project Management Unit 4

Project An undertaking or venture to accomplish some objective or Goal. A set of interrelated jobs whose accomplishment leads to completion of the Project. Jobs and activities consume Time and resources and are governed by precedence relation.

Types of Projects Personal Projects Local or Neighborhood Project – Village level, society level Projects such as Construction of Community hall, school etc. Organizational Projects – Producing new Product. National Projects Global Projects – Petroleum Pipe line between two counties.

Personal Projects Planning a wedding Taking admission in college

Organizational Projects Construction of Building Planning and Launching a new Product

National Project Launching a new satellite. Literacy Campaign Poverty Removal Program Preparation of Annual Budget

Global Projects Organising Peace Mission Space Exploration Environment Protection

Features of a Project Well defined collection of jobs. Generally non repetitive, one time effort. Jobs interrelated through precedence. Jobs consume time and resources. A Project has limited resources.

Project Appraisal Assessment of the Project. Determining its acceptability. Final step before the Project is agreed for financing. Six major appraisals of a Project.

Six Major Appraisals Technical Appraisal Financial Appraisal Economical Appraisal Social Appraisal Market Appraisal Ecological Appraisal

Lifecycle of Project Selection of Project. Project Planning Scope and work of Network development. Basic scheduling (when should what start and end) Time Cost Trade-offs. Project implementation Project completion and audit. From Current State to Desired State

Critical Path Method (CPM). Probabilistic Evaluation & Review Technique (PERT).

CPM Activity duration is Deterministic in CPM. Previous experience yields fairly accurate estimates of activity duration. Example – Construction activity Market Survey.

PERT There is uncertainty in Activity duration. Example – R&D activities, new activities being carried out for first time.

Critical Path The Longest path in the network. Minimum time required to complete the Project.

Floats Float indicates the extent of flexibility with regard to starting an activity without affecting the Project completion time.

Critical Path Method Numerical

Example Question

Solution

Critical Path

Floats

All Floats if this question

Program Evaluation and Review Technique PERT Program Evaluation and Review Technique

For solution of this question, refer to the class notes.