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1. Define a project and classify it? Explain the characteristics of project.

What do you mean by temporary team/organization of a project?
Ans: Project is a combination of human and non-human resources pulled together
into a temporary organization to achieve a specific purpose.
A project is unique group of tasks designed to attain a specific objective within the
constraints of time, cost, quality based on planning and control through the use of
variety of resources in a dynamic environment. Project involves single purpose,
end item or results usually specified in terms of costs, time and performance
requirements. It is a process of working together to achieve a goal; during the
process, projects pass through several distinct phases called project life cycle.
Classification of project
Projects are classified on following basis:
a) Source of investment
i. Private sector project
ii. Government sector project
iii. Grant project
iv. Loan project
b) Size and scale
i. Mega project
ii. Major project
iii. Medium project
iv. Small project
c) Use of technology
i. Labour intensive project
ii. Capital intensive project
d) Nature
i. Simple
ii. Complex
iii. Innovative
iv. Emergency
e) Time frame
i. Normal project
ii. Crash project
f) Source of funding
i. Joint venture project
ii. Bilateral project
iii. Multilateral project
g) Functions
i. Disaster prevention project
ii. Development project
iii. Service sector project
iv. Environment friendly project
h) Orientation
i. Product oriented project
ii. Process oriented project

Characteristics of the project are discussed below.

a) Specific goal or objectives
A project has specific goal or objectives. It is focused on the achievement of an end
result. It ceases to exist when the objectives have been fulfilled. For e.g. the goal of
writing project is to write a new book or something.

b) Temporary
Project doesnt continue endlessly, project ceases to exist when declared objectives
are attained. Thus project has a definite beginning and ending but temporarily doesnt
mean short in duration.

c) Constraints
A project operates within the constraints of time, cost and quality performance. It has
the time schedule for various activities, own budget to control costs and clearly laid
down quality specifications.

d) Unique
No two projects are absolutely similar to each other i.e. project involves doing
something which has not been done before. For eg, thousands of book have been
written but each is unique- different writer, different language, different subject etc.

e) Specific task not routinely performed

The project doesnt involve doing same work repeatedly i.e. in different phases of
project life cycle separate task is performed.

f) Rapid expenditure
The project involves the rapid expenditure of resources within a short duration of
project life cycle in comparison to a permanent programme.
g) Resource consumption
Project consumes tremendous quantities of resources. 5M- Money, Material,
Manpower, Machine, Minute are examples of project resources all of which are paid
by owner.

h) Risk and uncertainties

Risk and uncertainties go hand in hand with the project. A risk-free project cannot be
thought of. Proper risk management is necessary to ensure achievement of the goal.

i) Team work
Projects work through team work. A project consists of a multi-functional team.
Different team and workers are assigned for the different task.

j) Planning and control

A project requires effective planning and control to ascertain achievement of specified
goal and objectives. Standards set are compared with actual performance to measure
deviation and corrective actions are taken.

k) Contracting and subcontracting

The project work is characterized by high level of contracting and subcontracting.
Complexity increases the need for subcontracting. Proper contract planning is
required for effective project management.

l) Progressive elabouration
Progressive means proceeding in step and elabouration means worked out with care
and detail thoroughly developed.

Temporary team/organization of project are those team which teams loose their
importance, once the task is accomplished. Such teams are usually formed for a
shorter duration either to assist the permanent team or work when the members of
the permanent team are busy in some other project. When organizations have
excess of work, they generally form temporary teams which work in association with
the members of the permanent team for the accomplishment of the task within the
stipulated time.
2. Explain project life cycle & explain how you set goals in a project by
giving one example of goal and verifying the same with the criteria of
goal setting.
Ans: The project cannot continue endlessly, it is a temporary job. A project depending
upon its nature, size, type, and complexity passes through different well-defined
phases from its inception to successful completion. Collectively project phases are
known as project life cycle phases.
Following five phases contribute to developing a project from an idea to
reality. i. Initiation Phase
ii. Planning phase
iii. Engineering and Design Phase
iv. Implementation Phase
v. Termination/Divestment Phase

The goal of any project should clearly state what the project will deliver at the end.
Goals are purpose and mission for the initiating project which is set at the start of the
project. Goal setting takes time, energy, and dialogue.
The objective and goal of any project will be
To complete the project within the allotted fund
To complete the project within scheduled time
To execute the project in such a way that the projects meets the quality
To ensure that the project is completed to the satisfaction of end users.

I set goals in a project via SMART Goals criteria. SMART is

an acronym that stands for:
Specific meaning that your goal should clearly define what youre aiming to achieve.
Measurable your goal also needs to include an indicator of progress youll measure
the goals success by.
Attainable you must have the appropriate knowledge, skill and expertise to achieve
Results-focused it should focus on results not actions.
Time-bound and you need to specify the timeframe for reaching the goal.

Heres an example of a SMART goal:

To increase organic traffic to the site from 35000 visits per month to 100000 visits per
month by the end of December 2016.
SMART goals work because they are easy to set and also reach. They provide
motivation your team might require to complete the project. And because they are so
specific, they also help clarify the end vision, give focus and practically oblige you to
take action.

3. Discuss the external environment in which a project is operated.

Ans: The external environment is the set of broad forces in projects surrounding that
are relevant to its operation. It includes all the factors outside the project which
affects climate in which project operates and beyond the control of project
management team.
The component of external environment are:
a) Political-legal environment
Political environment includes political institutions, political parties, political stability,
political philosophy and legal environments such as laws, regulations, and court
decisions. These components either restrain or facilitate the functioning of the

b) Economic environment
It includes economic policies, economic system, and national income, distribution of
income, market factors, product market, inflation, fiscal policies, and economic
conditions. The economic environment is a major factor that influences the
investment climate in the country.

c) Socio-cultural environment
Social environment includes social structure, demography, social values, lifestyle,
belief, and expectation in a particular society. The Cultural environment includes
values, norms, belief, and behavior of people. It can have the major influence on the
project as projects are operated in a society for the benefit of the society.

d) Technological environment
It consists of skill, methods, system, equipment, and rate of change of technology. It
influences on the project by bringing changes in skills required, job prospects, and
production process. Components of the technological environment are the level of
technology, the pace of technology change, technology transfer etc.

4. Define project management. Explain SMART objective with example.

Ans: Project management is the discipline of planning, organizing, securing, managing,
leading, and controlling resources to achieve specific goals i.e. project objectives. In
other words, project management is the application of knowledge, skill, tool, and
techniques to a range of activities in order to meet the requirements of a particular

Goal and objectives of a project should be SMART, we called this as SMART criteria of
goal setting.

S (Specific) :clear and well defined

The more specific the goal clearer target you set for yourself. So goal always needs to
as specific and clearly defined as the possible i.e. goal should be detailed and describe
exactly what project will deliver. For example, if you want to write a book, dont just
say I want to write a book be more specific about its title of the book, how many page
it will contain and by what time you will finish.

M (Measurable)
Second, the goal should be measurable so that project outcome can be measured and
compared. If we can measure progress it will help us to see fruits of our labour and
motivate us to keep moving forward.

A (Achievable/Attainable )
We must set the goal that can be achieved within current restrictions, such as
schedule, workload, knowledge, and technology. Setting an unrealistic goal will lead
you to failure even before the start. And also goal must be agreed by all the members
of the team.
R realistic )
The goal must be attainable or realistic i.e. possible under the limited set of resources
available. So set the goal that has realistic chance of achieving. For example, if your
exam is about to start in two days and you havent started reading yet, it is pretty
unrealistic to set the goal of scoring distinction marks.

T (Time-framed)
Last and most important, all smart goal must be time bound. The project should have
deadline by which plan to have the goal completed, setting deadline reinforces the
seriousness of goal and motivates us to take action. If there is no internal pressure to
the complete project will never get completed.

5. Differentiate between labour intensive and capital intensive

projects with examples?
Ans: Capital intensive and labour intensive refer to types of production methods
used in the production of goods and services in any project. Whether an industry
or project is capital or labour intensive depends on the ratio of capital vs. labour
required in the production of goods and services in project. While capital intensive
is more expensive and requires a higher capital investment, labour intensive
production requires more labour input and requires higher investment in training
and education of employees.

Capital intensive project requires more equipment and machinery to produce

goods; therefore, require a larger financial investment but Labour intensive
project requires a higher labour input to carry out activities in comparison to
the amount of capital required.
Capital intensive project pose higher barriers to entry as they require more
investment in equipment and machinery to produce goods and services but
Labour intensive project depend mostly on the workers and employees of their
firms, and require higher investment and time to train and coach workers to
produce goods and services according to specified standards.
Capital intensive projects are applied for the long run but Labour intensive
cannot be applied for the long run.
Example of capital intensive projects are use of sophisticated machinery, more
automated machines, the latest equipment and new technology etc.
Example pf Labour intensive projects are agriculture, restaurants, hotel industry,
mining and other type of projects etc.

6. Define WBS. Write its importance and use. Draw a simple bar chart
of a project, which include at least 10 activities.
A work breakdown structure (WBS), in project management and systems
engineering, is a deliverable-oriented breakdown of a project into smaller
components. A work breakdown structure is a key project deliverable that
organizes the team's work into manageable sections.
Systematic and logical breakdown the project into its components and
subcomponents in hierarchical order is called work breakdown structure. It is
constructed by dividing a project into major components, each of which is further
sub-divided into smaller components.
A work breakdown structure element may be a product, data, service, or any
combination thereof. A WBS also provides the necessary framework for detailed
cost estimating and control along with providing guidance for schedule
development and control.
The work breakdown structure provides a common framework for the natural
development of the overall planning and control of a contract and is the basis for
dividing work into definable increments from which the statement of work can be
developed and technical, schedule, cost, and labour hour reporting can be
A work breakdown structure permits summing of subordinate costs for tasks,
materials, etc., into their successively higher level "parent" tasks, materials, etc.
For each element of the work breakdown structure, a description of the task to be
performed is generated. This technique (sometimes called a system breakdown
structure) is used to define and organize the total scope of a project.

Fig: Work breakdown structure of building construction

Importance of WBS
a) Produce a WBS that is complete and accurate. This reduces risk by decreasing the
likelihood that important work is missed.

b) Accurately subdivide the project into smaller work packages. This has dual benefits
of making tasks easier for project members to manage and allowing key milestones
to be identified.

c) Engage project members in the development of the WBS. Involving project teams
and expert resources in creating the detailed steps of the WBS encourages
discussions that:
Clarify uncertainties and ambiguities
Identify assumptions-both correct and incorrect
Narrow and define the project scope
Raise important issues at an early stage
d) Seeking high levels of participation to prepare the WBS produces well-defined
tasks, allows resources to be assigned to specific tasks, and creates accountability
and commitment among the project team.

e) The WBS is an essential tool to define the project scope. It clearly defines what is
included, and what is not included, in your project scope and deliverables.
Establishing this early on is very helpful in client interactions. It prevents a lot of
misunderstandings and results in much happier clients.

f) The WBS lays the ground work for accurate project costing. A detailed WBS helps
carry out bottom-up project costing and estimating. And bottom-up estimating is
the most accurate estimating method. Inaccurate estimating, particularly if it leads
to cost overruns, causes conflict with clients. A well-defined WBS, which
contributes to accurate estimating, again leads to satisfied clients.

g) An accurate Project Schedule can only be developed after a comprehensive WBS,

which includes all tasks, is generated. Accurate scheduling increases the
probability that your project will be completed on time and meet client delivery

h) A well-defined WBS reduces the risk of projects failing to meet goals and
objectives. Because it identifies all tasks required to complete the project, the WBS
reduces the potential for conflict on what is and is not included in the project,
reduces the likelihood that key work will be omitted, and allows forward planning
to ensure adequate resources will be on hand to complete project tasks.

i) The WBS can be used to manage outsourced service providers as well as internal
project team members.

j) An effective WBS means project tasks can be delegated and managed. Because the
work is properly defined, it can be scheduled, costed, implemented, monitored
and controlled. This allows you to measure progress and ensures that your projects
will be delivered on time, on budget and on scope.

WBS has following uses in project management:

Cost estimate
Schedules for different activities and the overall project can be established.
Responsibility can be assigned to each activity.
Can be used to analyze the risk of each activity and project.
Can be used in network analysis.
When summed up, the total program can be described.

7. define PERT and discuss its importance and use. Differentiate

between CPM and PERT.
Ans: PERT is a project management tool used to schedule, organize, and
coordinate tasks within a project. It is basically a method to analyse the tasks
involved in completing a given project, especially the time needed to complete the
each task, and to identify the minimum time needed to complete the total project.

Importance of PERT
PERT is important because of following advantages:
It compels managers to plan their projects critically and analyse all factors
affecting the progress of the plan. The process of the network analysis requires
that the project planning be conducted on considerable detail from the start
to the finish.
It provides the management a tool for forecasting the impact of schedule
changes and be prepared to correct such situations. The likely trouble spots
are located early enough so as to apply some preventive measures or
corrective actions.
a lot of data can be presented in a highly ordered fashion. The task
relationships are graphically represented for easier evaluation and individuals
in different locations can easily determine their role in the total task
The PERT time (Te) is based upon 3-way estimate and hence is the most
objective time in the light of uncertainties and results in greater degree of
accuracy in time forecasting.
It results in improved communication; the network provides a common ground
for various parties such as designers, contractors, project managers etc. and
they must all understand each others role and contributions.

Limitation of PERT
Uncertainly about the estimate of time and resources. These must be assumed
and the results can only be as good as the assumptions.
The costs may be higher than the conventional methods of planning and
control. Because of the nature of networking and network analysis, it needs a
high degree of planning skill and greater amount of details which would
increase the cost in time and manpower resources,
It is not suitable for relatively simple and repetitive processes such as assembly
line work which are fixed-sequence jobs.
Hospital planning for such issues as costs and social security
Educational planning and development
Various accounting functions
Real estate development
PERT and Computer project-scheduling software Example when PERT
technique is used:
A company decide to increase its production capacity by building a new
production unit. The project consists of separate tasks, some of which
cannot be started before other are completed. Thus PERT help in listing
the activities along with the time expected for each activity.
A company decides to lunch a new product in the market. It requires
several steps. Some of these steps cannot begin until the other are
completed. Thus PERT helps in estimation of completion time and how
much delay is possible in project completion.
Differentiate between CPM and PERT
Basis for
comparison PERT CPM
Meaning PERT is a project management CPM is a statistical technique
technique, used to manage of project management that
uncertain activities of a manages well defined
project. activities of a project.
What is it? A technique of planning and A method to control cost and
control of time. time.
Orientation Event-oriented Activity-oriented
Evolution Evolved as Research & Evolved as Construction
Development project project
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
Management Unpredictable Activities Predictable activities
Suitable for Research and Development Non-research projects like
Project civil construction, ship
building etc.
Nature of Non-repetitive nature Repetitive nature

8. Explain linked bar chart in detail.

Ans: Linked Bar Chart is a modified version of Gantt bar chart. It was developed to
overcome some of the inherent limitations of the bar chart. It shows the links between
an activity and the preceding or succeeding activities. The linking bars are very
complicated, difficult and sometimes impossible to show graphically. There are mainly
four types of relationship between activities.
Finish to Start
Start to Start
Start to Finish
Finish to finish
The linked bar chart has an advantage of exhibiting the effect of delay on succeeding
activities and also it can provide some information of the extra time available (if there
is) with an activity for its completion. The extra time available for an activity for its
completion is called float. Similarly, the activities, which do not have extra time for
completion, are called critical activities.

Fig: Linked Bar chart

9. Define project appraisal. Write procedure for developing a project
proposal. Discuss on techniques of project formulation.
Ans: Appraisal is the evaluation of the overall ability of the feasible project to succeed.
It is done after the feasibility study of the project has been completed. In other words,
project appraisal is an overall assessment of the relevancy, feasibility, and
sustainability of a project prior to making the decision whether to undertake it or not.
Also, it is a technique of evaluating, analysing the investments and effort of calculating
the projects viability.
Project appraisal is done two answers following two basic questions:
Will the project as designed meet the objectives and needs of country and
How does the project compete and compares with other feasible projects in
terms of funds and other resources?
Thus the primary function of project appraisal is to determine a feasible projects
ability to achieve its objectives. The objective of the different project differs, for a
private project, the objective is profitability but for a public project objectives are
socioeconomic growth, employment, poverty reduction etc.
Procedure for developing a project proposal

Step 1: Project brief (Statement of Work)

Project brief is the wish list of the project customers or client which describes the need
and requirements. It is prepared at the time of project formulation phase.
It is provided by the customers in the form of terms of reference (TOR). It covers all
the relevant facts about the project. The major contents covered in SOW are:
The need of the project.
Scope of the project.
Objectives and output of the project.
Estimated budget/cost.
Specifications, quality assurance and acceptance criteria.
Estimated time tables and deadlines.
Reporting system.
Monitoring, evaluation and controlling mechanism etc.
It serves as starting point of development of project proposal. It provides need,
description and all details about the project.

Step 2: Pre/Feasibility study

It is the preliminary study of implement ability of proposed project. Different aspects
like technical analysis, economic analysis, financial analysis, marketing analysis,
management analysis and environmental analysis are covered in the pre-feasibility
study. Technical feasibility is the main focus aspect in this study.
It does not deal with detail study but gives information about viability of project.
Step 3: Preliminary/detailed design
It is the elaboration of the project idea and is based on the requirements shown by
the feasibility study. This phase is also known as conceptual design or architectural
design. This phase provides a design that will correctly and completely implements the
needs and requirements shown by study.
Designs are prepared on the basis of different technical aspects like survey,
engineering drawings, project schedule, WBS, estimated project cost etc.
Step 4: Proposal Development
Finally a project proposal is prepared. Project proposal provides the different details
about the project. It contains:
Title of the project.
Executive summary: It describes on brief information and objectives of the
Project description: Provides general description of project.
Problem statement.
Objectives and outputs.
Project implementation.
Project budget.
Project schedule.
Project monitoring and evaluation.

Techniques of project formulation

Different techniques and methods are available for project formulation. They are:
Feasibility analysis
Cost-benefit analysis
Input-output analysis
Environmental analysis

A brief description of every stage of project formulation is provided here.
a) Feasibility analysis

Feasibility analysis helps us to screen out non-feasible projects and select the project
which is viable from technical, economical and also all other aspects.
Feasibility answers which project to undertake. In the feasibility analysis detailed study
is carried out on following aspects.

2. Cost benefit analysis

In simple term it is known as economic analysis of the investment proposal
from the larger social point of view. Therefore it is regarded as social cost-
benefit analysis (SCBA) in general.
Cost-benefit analysis is the comparison of different projects competing for the
same resource budgets.
It is an analytical tool in decision making which enables a systematic
comparison to be made between the estimated cost of undertaking a project
and the estimated value and benefits which may arise from the operation of
such a project. It is used in both sectors public and private.
For private sectors, CBA examines the profitability but for the public sector in
examines the social profitability. Social profitability is determined in terms of
economic growth, income redistribution, employment generation, social
development and poverty reduction.
3. Input-output analysis
Project requires various inputs for i.e. resources. It deals with the analysis of human
and non-human resources that serves as inputs for the project. Inputs or resources
includes following:

4. Environmental analysis
No matter how big or small is a project its impact on different aspect of environment
needs to be analysed and reviewed? For small project IEE- Initial environmental
examination is carried out where as for big projects EIA- Environmental Impact
Assessment is carried out before project implementation. The area of focus of
environmental analysis are environmental suitability and environmental impact.
Environmental Suitability: A Resource management aspect of the project is
given prime consideration to examine the project as environmental suitability.
Environmental Impact: Environmental Impact Assessment is carried out to
identify the impact of the project on the environment. The mitigation
measures for the probable impact are justified in EIA.

10. Why scheduling is important in planning phase of project?

Ans: Scheduling is laying out of the actual jobs of the project in the time order in which
they have to be performed. Manpower and material requirements needed at each
stage of construction are calculated, along with the expected completion time of each
of the jobs. A schedule shows the starting and completion dates of each activity and
the sequential relationship among the various activities.

Necessity of scheduling
To predict project completion time.
To control cost and resources.
To serve as record.
To manages changes and uncertainties.

Scheduling us important in planning phase of project because of following reason.

It describes guidance and pathway for a project to run.
It defines certain milestones and deliverables which need to be achieved on a
timely basis for successful completion of a project.
It provides the standards to monitor performance in terms of output, time and
money and take corrective actions if necessary after evaluating performance.
It helps to predict the future event and prepare to face the unexpected events.
Thus scheduling is helpful in analysing sources of risk and reducing the
probability of risk occurrence in future.
Monitoring the schedule provides an idea of the impact the current problems
are having on the project, and provides opportunities to enhance or reduce the
scope of a milestone/phase in the project.
It also provides a medium for continuous feedback on how the project is
progressing and if there are issues that need to be dealt with or if the client
needs to be told about a delay in delivery.

11. Elaborate the statement Technical appraisal is important in project.

Explain about contents of technical and financial proposal.
Ans: Technical appraisal is important in project because it contain location, size,
process, machines, raw materials, waste disposal, proper layout of plant and building
etc. which are important to fulfil objectives of the project. Technical appraisal is an in-
depth study to ensure that a project is soundly designed, appropriately engineered
and follows accepted standards. These considerations differ from project to project.
But, in any case, the emphasis is on the inputs needed for the project and the resulting
outputs of goods & services.
Put another way, such an appraisal determines whether the pre-requisites of a
successful project have been covered and good choices have been made in regard to
location, plant capacity, raw materials requirements and other such factors as
availability of required professional, technicians and workers. In addition, project
costs are estimated and subsequently manufacturing costs are worked out. Adverse
environmental impact, if any, is also visualized and efforts are made to reduce it
through a better project design incorporating treatment of effluents and noise
abatement. Technical appraisal determines that objectives of the project will be
fulfilled or not. Thats why, Technical appraisal is important in project.

Project proposal
The set of documents submitted for evaluation of project is called project
proposal. Project satisfies customer needs. So, Project proposal shows how
project will fulfil customer needs.
A project proposal is the blue print of project activities. It is a response to terms
of reference (TOR) provided by the customers. Its basic purpose is to convince
the customer that the proposal is worthy of support.
A proposal is basic document containing the explanation of all activities to be
performed while undertaking an investment venture.
The project proposal portrays the organizations capability to carryout technical
part of project work to the client. It also indicates the cost of project to the
It is a set of documents needed to evaluate project, which is under
Generally project proposal should satisfactorily answer the following questions:
What are you preparing to do?
Why you are proposing to do?
What specific results you are expecting from it?
What is the proposed schedule?
What is the cost of resources?
What are significant and limitations?
How the outputs are measured?
While preparing project proposal following considerations are of prime importance:
Project problem
Organization and staffing for implementation
Cost of proposal

Contents of project proposal

Since every project is unique and different to each other, it is not possible to get a
standard format for developing a project proposal equally applicable for all types and
natures of projects. However, content of content of project proposal is classified into
two parts: technical and financial. Sometimes management part is also considered as
separate one.

Technical part of project proposal

Technical part of the proposal gives the technical details and descriptions of the
The contents of technical part are:
Problem statement: description of the project problem
Special requirements: any special requirements as specified in TOR by client is
Test and inspection: procedures related to testing, quality assurance, reliability
and compliance along with specifications are prepared
Logistics: details of equipment, facilities, skills and administrative aspects are
Reporting: formats, timing, and nature of reporting should be highlighted
CV: CV of key persons for the execution of the proposed project is listed along
with details
Capability statement: organizational capability and past similar work
experience are focused in this part
Financial part of project proposal
It deals with the financial details of the project. The financial part of proposal covers
the aspects like:
Cost of basic materials
Statement of work
Cost summary
Supporting schedules
Profit statement
Elements of cost
Cost break down and work break down structures
Cost estimating techniques
In this part, generally format of BOQ (provided along with TOR or bid document) is
prepared and the rate is quoted for the proposed work.

Management part of project proposal

It incorporates the administrative and management capability of the proposing
organization in terms of:
Organizational structure
The financial stability
Financial litigation history
Accounting system
Employee safety, health & Labour related aspects
Cost and schedules
Past work experiences

12. Define terms resource histogram, resource leveling, limited resource

allocation and advantages and disadvantages of Gantt chart.
a) Resource histogram
Resource histogram is specifically a bar chart that is used for the purposes of displaying
the specific amounts of time that a particular resource is scheduled to be worked on
over a predetermined and specific time period. Resource histograms may also contain
the comparative feature of resource availability, used for comparison on for purposes
of contrast. Resource histograms are indeed handy tools to utilize for the project
management team and or the project management team leader because they allow a
quick and easy single page view of exactly what resources are available, what
resources are being utilized at the present time (or at whatever time the project
management team and of project management team leader is seeking information
on), and how long those resources are expected to be tied up.
b) Resource levelling
It is the method of scheduling activities within their available float so as to minimize
fluctuations in a day- to- day resource requirements. It is done by moving project
activities. By resource leveling, we try to optimize the use of resources required to
complete a project. Resource leveling helps in obtaining uniformity (as far as possible)
in resource requirement throughout the life of a project. The benefit of resource
leveling is to ease resource management so that cost involved in managing resources
can be minimized.
If resource is manpower, its leveling is called Manpower Leveling
Usually, activities and their logical sequence are determined, then time
duration of each activity is determined. After that only, resources are allocated
by Resource Aggregation, Resource Allocation, and Resource Leveling.
Like manpower, Materials schedule is also done based on CPM/PERT analysis.
It helps to deliver materials at the site well in advance but avoids delivery far
in advance, as a result of which deterioration, damages etc. are avoided.
Resource levelling is necessary to:
Implement the project effectively
To reduce the cost of a project
c) Limited resources allocation
Resource allocation is the scheduling of activities and the resources
required by those activities while taking into consideration both the
resource availability and the project time.
Over allocation is most likely to occur when there are multiple projects in
a company or when software is used to allocate tasks to resources. Over
allocation occurs is when projects managers have been encouraged to
meet unreasonable expectations. Project managers then push their
resource allocation beyond obtainable limits in order to meet constrained
schedules and budgets. Over allocation puts unreasonable pressure on
resources and can be costly not only in overtime monies but in resource
d) Gantt chart
It is a graphical representation of project activities shown in a time scaled bar
line with no links shown between activities. A Gantt chart is a scheduling
technique in which activity duration is drawn to scale on a time base. A Gantt
chart is also called a bar chart.
It is one of the most popular and widely used techniques for planning and
scheduling activities because the graphical representation of a Gantt chart
makes it easy to read and understand.
Fig: Sample Gantt chart

Advantages of Gantt chart:

It is simple to understand.
Easy to prepare, consume less resources.
Easy to develop and implement, no training is required.
It can be used to show progress.
Appropriate for small projects.
Can be used for resources schedule.
It gives the clear pictorial model of the project.
Disadvantages of Gantt chart
Difficult to construct Bar chart for the large and complex project due to
limitations of the size of paper.
The relationship between activities cannot be shown easily.
Difficult to find critical path, critical activities, and floats etc.
Difficulties in seeing immediately and exactly overall project duration if
changes occur in any particular activity.
It cannot be used as control device
Long duration project may seem to be most important which may not be
Difficult to manipulate and make corrections i.e. updating means to redraw the
entire chart again.