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Project management is the discipline of planning, organizing, securing and managing

resources to bring about the successful completion of specific engineering project goals
and objectives. It is sometimes conflated with program management, however technically
that is actually a higher level construction: a group of related and somehow
interdependent engineering projects.

A project is a temporary endeavor, having a defined beginning and end (usually


constrained by date, but can be by funding or deliverables),[1] undertaken to meet unique
goals and objectives,[2] usually to bring about beneficial change or added value. The
temporary nature of projects stands in contrast to business as usual (or operations),[3]
which are repetitive, permanent or semi-permanent functional work to produce products
or services. In practice, the management of these two systems is often found to be quite
different, and as such requires the development of distinct technical skills and the
adoption of separate management.

The primary challenge of project management is to achieve all of the engineering project
goals[4] and objectives while honoring the preconceived project constraints.[5] Typical
constraints are scope, time, and budget.[1] The secondary—and more ambitious—
challenge is to optimize the allocation and integration of inputs necessary to meet pre-
defined objectives

Approaches
There are a number of approaches to managing project activities including agile,
interactive, incremental, and phased approaches.

Regardless of the methodology employed, careful consideration must be given to the


overall project objectives, timeline, and cost, as well as the roles and responsibilities of
all participants and stakeholders.

[edit] The traditional approach

A traditional phased approach identifies a sequence of steps to be completed. In the


"traditional approach", we can distinguish 5 components of a project (4 stages plus
control) in the development of a project:

Typical development phases of an engineering project

• Project initiation stage;


• Project planning and design stage;
• Project execution and construction stage;
• Project monitoring and controlling systems;
• Project completion.
Not all the projects will visit every stage as projects can be terminated before they reach
completion. Some projects do not follow a structured planning and/or monitoring stages.
Some projects will go through steps 2, 3 and 4 multiple times.

Many industries use variations on these project stages. For example, when working on a
brick and mortar design and construction, projects will typically progress through stages
like Pre-Planning, Conceptual Design, Schematic Design, Design Development,
Construction Drawings (or Contract Documents), and Construction Administration. In
software development, this approach is often known as the waterfall model,[16] i.e., one
series of tasks after another in linear sequence. In software development many
organizations have adapted the Rational Unified Process (RUP) to fit this methodology,
although RUP does not require or explicitly recommend this practice. Waterfall
development works well for small, well defined projects, but often fails in larger projects
of undefined and ambiguous nature. The Cone of Uncertainty explains some of this as the
planning made on the initial phase of the project suffers from a high degree of
uncertainty. This becomes especially true as software development is often the realization
of a new or novel product. In projects where requirements have not been finalized and
can change, requirements management is used to develop an accurate and complete
definition of the behavior of software that can serve as the basis for software
development.[17] While the terms may differ from industry to industry, the actual stages
typically follow common steps to problem solving — "defining the problem, weighing
options, choosing a path, implementation and evaluation."

[edit] Critical Chain Project Management

Critical Chain Project Management (CCPM) is a method of planning and managing


projects that puts more emphasis on the resources (physical and human) needed in order
to execute project tasks. The most complex part involves engineering professionals of
different fields (Civil, Electrical, Mechanical etc) working together. It is an application of
the Theory of Constraints (TOC) to projects. The goal is to increase the rate of
throughput (or completion rates) of projects in an organization. Applying the first three of
the five focusing steps of TOC, the system constraint for all projects is identified as are
the resources. To exploit the constraint, tasks on the critical chain are given priority over
all other activities. Finally, projects are planned and managed to ensure that the resources
are ready when the critical chain tasks must start, subordinating all other resources to the
critical chain.

Regardless of project type, the project plan should undergo Resource Leveling, and the
longest sequence of resource-constrained tasks should be identified as the critical chain.
In multi-project environments, resource leveling should be performed across projects.
However, it is often enough to identify (or simply select) a single "drum" resource—a
resource that acts as a constraint across projects—and stagger projects based on the
availability of that single resource.
Planning and feedback loops in Extreme Programming (XP) with the time frames of the
multiple loops.

[edit] Extreme Project Management

In critical studies of Project Management, it has been noted that several of these
fundamentally PERT-based models are not well suited for the multi-project company
environment of today.[citation needed] Most of them are aimed at very large-scale, one-time,
non-routine projects, and nowadays all kinds of management are expressed in terms of
projects.

Using complex models for "projects" (or rather "tasks") spanning a few weeks has been
proven to cause unnecessary costs and low maneuverability in several cases[citation needed].
Instead, project management experts try to identify different "lightweight" models, such
as Agile Project Management methods including Extreme Programming for software
development and Scrum techniques.

The generalization of Extreme Programming to other kinds of projects is extreme project


management, which may be used in combination with the process modeling and
management principles of human interaction management.

[edit] Event chain methodology

Event chain methodology is another method that complements critical path method and
critical chain project management methodologies.

Event chain methodology is an uncertainty modeling and schedule network analysis


technique that is focused on identifying and managing events and event chains that affect
project schedules. Event chain methodology helps to mitigate the negative impact of
psychological heuristics and biases, as well as to allow for easy modeling of uncertainties
in the project schedules. Event chain methodology is based on the following principles.

• Probabilistic moment of risk: An activity (task) in most real life processes is not
a continuous uniform process. Tasks are affected by external events, which can
occur at some point in the middle of the task.
• Event chains: Events can cause other events, which will create event chains.
These event chains can significantly affect the course of the project. Quantitative
analysis is used to determine a cumulative effect of these event chains on the
project schedule.
• Critical events or event chains: The single events or the event chains that have
the most potential to affect the projects are the “critical events” or “critical chains
of events.” They can be determined by the analysis.
• Project tracking with events: Even if a project is partially completed and data
about the project duration, cost, and events occurred is available, it is still possible
to refine information about future potential events and helps to forecast future
project performance.
• Event chain visualization: Events and event chains can be visualized using event
chain diagrams on a Gantt chart.

[edit] PRINCE2

The PRINCE2 process model

PRINCE2 is a structured approach to project management, released in 1996 as a generic


project management method.[18] It combined the original PROMPT methodology (which
evolved into the PRINCE methodology) with IBM's MITP (managing the
implementation of the total project) methodology. PRINCE2 provides a method for
managing projects within a clearly defined framework. PRINCE2 describes procedures to
coordinate people and activities in a project, how to design and supervise the project, and
what to do if the project has to be adjusted if it does not develop as planned.

In the method, each process is specified with its key inputs and outputs and with specific
goals and activities to be carried out. This allows for automatic control of any deviations
from the plan. Divided into manageable stages, the method enables an efficient control of
resources. On the basis of close monitoring, the project can be carried out in a controlled
and organized way.

PRINCE2 provides a common language for all participants in the project. The various
management roles and responsibilities involved in a project are fully described and are
adaptable to suit the complexity of the project and skills of the organization.

[edit] Process-based management


Capability Maturity Model, predecessor of the CMMI Model

Also furthering the concept of project control is the incorporation of process-based


management. This area has been driven by the use of Maturity models such as the CMMI
(Capability Maturity Model Integration) and ISO/IEC15504 (SPICE - Software Process
Improvement and Capability Estimation).

Agile Project Management approaches based on the principles of human interaction


management are founded on a process view of human collaboration. This contrasts
sharply with the traditional approach. In the agile software development or flexible
product development approach, the project is seen as a series of relatively small tasks
conceived and executed as the situation demands in an adaptive manner, rather than as a
completely pre-planned process.

[edit] Processes
This section relies largely or entirely upon a single source. Please help improve this
article by introducing appropriate citations to additional sources. (August 2010)

Traditionally, project management includes a number of elements: four to five process


groups, and a control system. Regardless of the methodology or terminology used, the
same basic project management processes will be used.

The project development stages[19]

Major process groups generally include[20]:

• Initiation
• Planning or development
• Production or execution
• Monitoring and controlling
• Closing

In project environments with a significant exploratory element (e.g., Research and


development), these stages may be supplemented with decision points (go/no go
decisions) at which the project's continuation is debated and decided. An example is the
Stage-Gate model.

[edit] Initiation

Initiating Process Group Processes[19]

The initiation processes determine the nature and scope of the project. If this stage is not
performed well, it is unlikely that the project will be successful in meeting the business’
needs. The key project controls needed here are an understanding of the business
environment and making sure that all necessary controls are incorporated into the project.
Any deficiencies should be reported and a recommendation should be made to fix them.

The initiation stage should include a plan that encompasses the following areas:

• Analyzing the business needs/requirements in measurable goals


• Reviewing of the current operations
• Financial analysis of the costs and benefits including a budget
• Stakeholder analysis, including users, and support personnel for the project
• Project charter including costs, tasks, deliverables, and schedule

[edit] Planning and design

Planning Process Group Activities[19]

After the initiation stage, the project is planned to an appropriate level of detail. The main
purpose is to plan time, cost and resources adequately to estimate the work needed and to
effectively manage risk during project execution. As with the Initiation process group, a
failure to adequately plan greatly reduces the project's chances of successfully
accomplishing its goals.
Project planning generally consists of

• determining how to plan (e.g. by level of detail or rolling wave);


• developing the scope statement;
• selecting the planning team;
• identifying deliverables and creating the work breakdown structure;
• identifying the activities needed to complete those deliverables and networking
the activities in their logical sequence;
• estimating the resource requirements for the activities;
• estimating time and cost for activities;
• developing the schedule;
• developing the budget;
• risk planning;
• gaining formal approval to begin work.

Additional processes, such as planning for communications and for scope management,
identifying roles and responsibilities, determining what to purchase for the project and
holding a kick-off meeting are also generally advisable.

For new product development projects, conceptual design of the operation of the final
product may be performed concurrent with the project planning activities, and may help
to inform the planning team when identifying deliverables and planning activities.

[edit] Executing

Executing Process Group Processes[19]

Executing consists of the processes used to complete the work defined in the project
management plan to accomplish the project's requirements. Execution process involves
coordinating people and resources, as well as integrating and performing the activities of
the project in accordance with the project management plan. The deliverables are
produced as outputs from the processes performed as defined in the project management
plan.

[edit] Monitoring and controlling

Monitoring and controlling consists of those processes performed to observe project


execution so that potential problems can be identified in a timely manner and corrective
action can be taken, when necessary, to control the execution of the project. The key
benefit is that project performance is observed and measured regularly to identify
variances from the project management plan.

Monitoring and Controlling Process Group Processes[19]

Monitoring and Controlling includes:

• Measuring the ongoing project activities ('where we are');


• Monitoring the project variables (cost, effort, scope, etc.) against the project
management plan and the project performance baseline (where we should be);
• Identify corrective actions to address issues and risks properly (How can we get
on track again);
• Influencing the factors that could circumvent integrated change control so only
approved changes are implemented

In multi-phase projects, the monitoring and controlling process also provides feedback
between project phases, in order to implement corrective or preventive actions to bring
the project into compliance with the project management plan.

Project Maintenance is an ongoing process, and it includes:

• Continuing support of end users


• Correction of errors
• Updates of the software over time

Monitoring and Controlling cycle

In this stage, auditors should pay attention to how effectively and quickly user problems
are resolved.

Over the course of any construction project, the work scope may change. Change is a
normal and expected part of the construction process. Changes can be the result of
necessary design modifications, differing site conditions, material availability, contractor-
requested changes, value engineering and impacts from third parties, to name a few.
Beyond executing the change in the field, the change normally needs to be documented to
show what was actually constructed. This is referred to as Change Management. Hence,
the owner usually requires a final record to show all changes or, more specifically, any
change that modifies the tangible portions of the finished work. The record is made on
the contract documents – usually, but not necessarily limited to, the design drawings. The
end product of this effort is what the industry terms as-built drawings, or more simply,
“as built.” The requirement for providing them is a norm in construction contracts.

When changes are introduced to the project, the viability of the project has to be re-
assessed. It is important not to lose sight of the initial goals and targets of the projects.
When the changes accumulate, the forecasted result may not justify the original proposed
investment in the project.

[edit] Closing

Closing Process Group Processes.[19]

Closing includes the formal acceptance of the project and the ending thereof.
Administrative activities include the archiving of the files and documenting lessons
learned.

This phase consists of:

• Project close: Finalize all activities across all of the process groups to formally
close the project or a project phase
• Contract closure: Complete and settle each contract (including the resolution of
any open items) and close each contract applicable to the project or project phase.

[edit] Project control systems

Project control is that element of a project that keeps it on-track, on-time and within
budget. Project control begins early in the project with planning and ends late in the
project with post-implementation review, having a thorough involvement of each step in
the process. Each project should be assessed for the appropriate level of control needed:
too much control is too time consuming, too little control is very risky. If project control
is not implemented correctly, the cost to the business should be clarified in terms of
errors, fixes, and additional audit fees.

Control systems are needed for cost, risk, quality, communication, time, change,
procurement, and human resources. In addition, auditors should consider how important
the projects are to the financial statements, how reliant the stakeholders are on controls,
and how many controls exist. Auditors should review the development process and
procedures for how they are implemented. The process of development and the quality of
the final product may also be assessed if needed or requested. A business may want the
auditing firm to be involved throughout the process to catch problems earlier on so that
they can be fixed more easily. An auditor can serve as a controls consultant as part of the
development team or as an independent auditor as part of an audit.

Businesses sometimes use formal systems development processes. These help assure that
systems are developed successfully. A formal process is more effective in creating strong
controls, and auditors should review this process to confirm that it is well designed and is
followed in practice. A good formal systems development plan outlines:

• A strategy to align development with the organization’s broader objectives


• Standards for new systems
• Project management policies for timing and budgeting
• Procedures describing the process
• Evaluation of quality of change

[edit] Topics
[edit] Project managers

A project manager is a professional in the field of project management. Project managers


can have the responsibility of the planning, execution, and closing of any project,
typically relating to construction industry, engineering, architecture, computing, or
telecommunications. Many other fields in the production engineering and design
engineering and heavy industrial also have project managers.

A project manager is the person accountable for accomplishing the stated project
objectives. Key project management responsibilities include creating clear and attainable
project objectives, building the project requirements, and managing the triple constraint
for projects, which is cost, time, and scope.

A project manager is often a client representative and has to determine and implement the
exact needs of the client, based on knowledge of the firm they are representing. The
ability to adapt to the various internal procedures of the contracting party, and to form
close links with the nominated representatives, is essential in ensuring that the key issues
of cost, time, quality and above all, client satisfaction, can be realized.

[edit] Project Management Triangle


The Project Management Triangle.

Like any human undertaking, projects need to be performed and delivered under certain
constraints. Traditionally, these constraints have been listed as "scope," "time," and
"cost".[1] These are also referred to as the "Project Management Triangle", where each
side represents a constraint. One side of the triangle cannot be changed without affecting
the others. A further refinement of the constraints separates product "quality" or
"performance" from scope, and turns quality into a fourth constraint.

The time constraint refers to the amount of time available to complete a project. The cost
constraint refers to the budgeted amount available for the project. The scope constraint
refers to what must be done to produce the project's end result. These three constraints are
often competing constraints: increased scope typically means increased time and
increased cost, a tight time constraint could mean increased costs and reduced scope, and
a tight budget could mean increased time and reduced scope.

The discipline of Project Management is about providing the tools and techniques that
enable the project team (not just the project manager) to organize their work to meet
these constraints.

[edit] Work Breakdown Structure

Example of a Work breakdown structure applied in a NASA reporting structure.[21]

The Work Breakdown Structure (WBS) is a tree structure, which shows a subdivision of
effort required to achieve an objective; for example a program, project, and contract. The
WBS may be hardware, product, service, or process oriented.
A WBS can be developed by starting with the end objective and successively subdividing
it into manageable components in terms of size, duration, and responsibility (e.g.,
systems, subsystems, components, tasks, subtasks, and work packages), which include all
steps necessary to achieve the objective.[17]

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 labor hour reporting can be established.[21]

[edit] Project Management Framework

Example of an IT Project Management Framework.[19]

The Program (Investment) Life Cycle integrates the project management and system
development life cycles with the activities directly associated with system deployment
and operation. By design, system operation management and related activities occur after
the project is complete and are not documented within this guide.[19]

For example, see figure, in the US United States Department of Veterans Affairs (VA)
the program management life cycle is depicted and describe in the overall VA IT Project
Management Framework to address the integration of OMB Exhibit 300 project
(investment) management activities and the overall project budgeting process. The VA IT
Project Management Framework diagram illustrates Milestone 4 which occurs following
the deployment of a system and the closing of the project. The project closing phase
activities at the VA continues through system deployment and into system operation for
the purpose of illustrating and describing the system activities the VA considers part of
the project. The figure illustrates the actions and associated artifacts of the VA IT Project
and Program Management process.[19]

[edit] International standards


There have been several attempts to develop Project Management standards, such as:

• Capability Maturity Model from the Software Engineering Institute.


• GAPPS, Global Alliance for Project Performance Standards- an open source
standard describing COMPETENCIES for project and program managers.
• A Guide to the Project Management Body of Knowledge
• HERMES method, Swiss general project management method, selected for use in
Luxembourg and international organizations.
• The ISO standards ISO 9000, a family of standards for quality management
systems, and the ISO 10006:2003, for Quality management systems and
guidelines for quality management in projects.
• PRINCE2, PRojects IN Controlled Environments.
• Team Software Process (TSP) from the Software Engineering Institute.
• Total Cost Management Framework, AACE International's Methodology for
Integrated Portfolio, Program and Project Management)
• V-Model, an original systems development method.
• The Logical framework approach, which is popular in international development
organizations.
• IAPPM, The International Association of Project & Program Management, guide
to Project Auditing and Rescuing Troubled Projects.

[edit] Project portfolio management

An increasing number of organizations are using, what is referred to as, project portfolio
management (PPM) as a means of selecting the right projects and then using project
management techniques[22] as the means for delivering the outcomes in the form of
benefits to the performing private or not-for-profit organization.

Project management methods are used 'to do projects right' and the methods used in PPM
are used 'to do the right projects'. In effect PPM is becoming the method of choice for
selection and prioritising among resource inter-related projects in many industries and
sectors.[citation needed]

[edit] See also


Project management is a carefully planned and organized effort to accomplish a
specific (and usually) one-time objective, for example, construct a building or
implement a major new computer system. Project management includes developing
a project plan, which includes defining and confirming the project goals and
objectives, identifying tasks and how goals will be achieved, quantifying the
resources needed, and determining budgets and timelines for completion. It also
includes managing the implementation of the project plan, along with operating
regular 'controls' to ensure that there is accurate and objective information on
'performance' relative to the plan, and the mechanisms to implement recovery
actions where necessary. Projects usually follow major phases or stages (with
various titles for these), including feasibility, definition, project planning,
implementation, evaluation and support/maintenance. (Program planning is usually
of a broader scope than project planning, but not always - note: the terms program
and programme have significant variations in their meaning in different geographical
areas, e.g. Europe and USA

Critical path method


From Wikipedia, the free encyclopedia
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PERT chart for a project with five milestones (10 through 50) and six
activities (A through F). The project has two critical paths: activities B
and C, or A, D, and F – giving a minimum project time of 7 months with
fast tracking. Activity E is sub-critical, and has a float of 2 months.
The critical path method (CPM) is a mathematically based algorithm for
scheduling a set of project activities.[1] It is an important tool for
effective project management.
Contents
[hide]
1 History
2 Basic
technique
2.1
Expansion
2.2
Flexibility
3 See also
4 References
5 Further
reading
6 External
links
[edit] History
The Critical Path Method (CPM) is a project modeling technique
developed in the late 1950s by Morgan R. Walker of DuPont and James
E. Kelley, Jr. of Remington Rand.[2] Kelley and Walker related their
memories of the development of CPM in 1989.[3] Kelley attributed the
term "critical path" to the developers of the Program Evaluation and
Review Technique which was developed at about the same time by
Booz Allen Hamilton and the US Navy.[4] The precursors of what came
to be known as Critical Path were developed and put into practice by
DuPont between 1940 and 1943 and contributed to the success of the
Manhattan Project.[5]
CPM is commonly used with all forms of projects, including
construction, aerospace and defense, software development, research
projects, product development, engineering, and plant maintenance,
among others. Any project with interdependent activities can apply this
method of mathematical analysis. Although the original CPM program
and approach is no longer used, the term is generally applied to any
approach used to analyze a project network logic diagram.
[edit] Basic technique
The essential technique for using CPM [6] is to construct a model of the
project that includes the following:
A list of all activities required to complete the project (typically
categorized within a work breakdown structure),
The time (duration) that each activity will take to completion, and
The dependencies between the activities
Using these values, CPM calculates the longest path of planned
activities to the end of the project, and the earliest and latest that each
activity can start and finish without making the project longer. This
process determines which activities are "critical" (i.e., on the longest
path) and which have "total float" (i.e., can be delayed without making
the project longer). In project management, a critical path is the
sequence of project network activities which add up to the longest
overall duration. This determines the shortest time possible to
complete the project. Any delay of an activity on the critical path
directly impacts the planned project completion date (i.e. there is no
float on the critical path). A project can have several, parallel, near
critical paths. An additional parallel path through the network with the
total durations shorter than the critical path is called a sub-critical or
non-critical path.
These results allow managers to prioritize activities for the effective
management of project completion, and to shorten the planned critical
path of a project by pruning critical path activities, by "fast tracking"
(i.e., performing more activities in parallel), and/or by "crashing the
critical path" (i.e., shortening the durations of critical path activities by
adding resources).
[edit] Expansion
Originally, the critical path method considered only logical
dependencies between terminal elements. Since then, it has been
expanded to allow for the inclusion of resources related to each
activity, through processes called activity-based resource assignments
and resource leveling. A resource-leveled schedule may include delays
due to resource bottlenecks (i.e., unavailability of a resource at the
required time), and may cause a previously shorter path to become the
longest or most "resource critical" path. A related concept is called the
critical chain, which attempts to protect activity and project durations
from unforeseen delays due to resource constraints.
Since project schedules change on a regular basis, CPM allows
continuous monitoring of the schedule, allows the project manager to
track the critical activities, and alerts the project manager to the
possibility that non-critical activities may be delayed beyond their total
float, thus creating a new critical path and delaying project completion.
In addition, the method can easily incorporate the concepts of
stochastic predictions, using the Program Evaluation and Review
Technique (PERT) and event chain methodology.
Currently, there are several software solutions available in industry
that use the CPM method of scheduling, see list of project
management software. Ironically, the method currently used by most
project management software is actually based on a manual
calculation approach developed by Fondahl of Stanford University.
[edit] Flexibility
A schedule generated using critical path techniques often is not
realised precisely, as estimations are used to calculate times: if one
mistake is made, the results of the analysis may change. This could
cause an upset in the implementation of a project if the estimates are
blindly believed, and if changes are not addressed promptly. However,
the structure of critical path analysis is such that the variance from the
original schedule caused by any change can be measured, and its
impact either ameliorated or adjusted for. Indeed, an important
element of project postmortem analysis is the As Built Critical Path
(ABCP), which analyzes the specific causes and impacts of changes
between the planned schedule and eventual schedule as actually
implemented.
[edit] See also
Gantt chart
List of project management software
List of project management topics
Program Evaluation and Review Technique (PERT)
Project
Project management
Project planning
Work breakdown structure
[edit] References
^ Kelley, James. Critical Path Planning and Scheduling: Mathematical
Basis. Operations Research, Vol. 9, No. 3, May-June, 1961.
^ Kelley, James; Walker, Morgan. Critical-Path Planning and
Scheduling. 1959 Proceedings of the Eastern Joint Computer
Conference.
^ Kelley, James; Walker, Morgan. The Origins of CPM: A Personal
History. PMNETwork 3(2):7-22..
^ Newell, M; Grashina, M (2003). The Project Management Question
and Answer Book. American Management Association. p. 98.
^ Thayer, Harry (1996). Management of the Hanford Engineer Works in
World War II, How the Corps, DuPont and the Metallurgical Laboratory
fast tracked the original plutonium works. ASCE Press, pp. 66-67.
^ Samuel L. Baker, Ph.D. "Critical Path Method (CPM)" University of
South Carolina, Health Services Policy and Management Courses
This article needs additional citations for verification.
Please help improve this article by adding reliable references.
Unsourced material may be challenged and removed. (May 2009)
[edit] Further reading
Project Management Institute (2003). A Guide To The Project
Management Body Of Knowledge (3rd ed.). Project Management
Institute. ISBN 1-930699-45-X.
Klastorin, Ted (2003). Project Management: Tools and Trade-offs (3rd
ed.). Wiley. ISBN 978-0471413844.
Heerkens, Gary (2001). Project Management (The Briefcase Book
Series). McGraw–Hill. ISBN 0-07-137952-5.
Kerzner, Harold (2003). Project Management: A Systems Approach to
Planning, Scheduling, and Controlling (8th ed.). ISBN 0-471-22577-0.
Lewis, James (2002). Fundamentals of Project Management (2nd ed.).
American Management Association. ISBN 0-8144-7132-3.
Milosevic, Dragan Z. (2003). Project Management ToolBox: Tools and
Techniques for the Practicing Project Manager. Wiley. ISBN 978-
0471208228.
O'Brien, James J.; Plotnick, Fredric L. (2010). CPM in Construction
Management, Seventh Edition. McGraw Hill. ISBN 978-0-07-163664-3.
Woolf, Murray B. (2007). Faster Construction Projects with CPM
Scheduling. McGraw Hill. ISBN 978-0071486606.
[edit] External links
Critical path web calculator
A Few Critical Path Articles
A slide show explaining critical path concepts
Critical Path Java Applet
[1]
Retrieved from "http://en.wikipedia.org/wiki/Critical_path_method"
Categories: Network theory | Project management | Management |
Business terms | Production and manufacturing | Operations research |
Scheduling algorithms | Software development process
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The key to a successful project is in the planning. Creating a project plan is the first thing
you should do when undertaking any kind of project.

Often project planning is ignored in favour of getting on with the work. However, many
people fail to realise the value of a project plan in saving time, money and many
problems.

This article looks at a simple, practical approach to project planning. On completion of


this guide, you should have a sound project planning approach that you can use for future
projects.

Step 1: Project Goals


A project is successful when the needs of the stakeholders have been met. A stakeholder
is anybody directly, or indirectly impacted by the project.

As a first step, it is important to identify the stakeholders in your project. It is not always
easy to identify the stakeholders of a project, particularly those impacted indirectly.
Examples of stakeholders are:

• The project sponsor.


• The customer who receives the deliverables.
• The users of the project outputs.
• The project manager and project team.

Once you understand who the stakeholders are, the next step is to find out their needs.
The best way to do this is by conducting stakeholder interviews. Take time during the
interviews to draw out the true needs that create real benefits. Often stakeholders will talk
about needs that aren't relevant and don't deliver benefits. These can be recorded and set
as a low priority.

The next step, once you have conducted all the interviews, and have a comprehensive list
of needs is to prioritise them. From the prioritised list, create a set of goals that can be
easily measured. A technique for doing this is to review them against the SMART
principle. This way it will be easy to know when a goal has been achieved.

Once you have established a clear set of goals, they should be recorded in the project
plan. It can be useful to also include the needs and expectations of your stakeholders.
This is the most difficult part of the planning process completed. It's time to move on and
look at the project deliverables.

Step 2: Project Deliverables


Using the goals you have defined in step 1, create a list of things the project needs to
deliver in order to meet those goals. Specify when and how each item must be delivered.

Add the deliverables to the project plan with an estimated delivery date. More accurate
delivery dates will be established during the scheduling phase, which is next.

Step 3: Project Schedule


Create a list of tasks that need to be carried out for each deliverable identified in step 2.
For each task identify the following:

• The amount of effort (hours or days) required to complete the task.


• The resource who will carryout the task.

Once you have established the amount of effort for each task, you can workout the effort
required for each deliverable, and an accurate delivery date. Update your deliverables
section with the more accurate delivery dates.

At this point in the planning, you could choose to use a software package such as
Microsoft Project to create your project schedule. Alternatively, use one of the many free
templates available. Input all of the deliverables, tasks, durations and the resources who
will complete each task.

A common problem discovered at this point, is when a project has an imposed delivery
deadline from the sponsor that is not realistic based on your estimates. If you discover
that this is the case, you must contact the sponsor immediately. The options you have in
this situation are:

• Renegotiate the deadline (project delay).


• Employ additional resources (increased cost).
• Reduce the scope of the project (less delivered).

Use the project schedule to justify pursuing one of these options.

Step 4: Supporting Plans


This section deals with plans you should create as part of the planning process. These can
be included directly in the plan.

Human Resource Plan


Identify by name, the individuals and organisations with a leading role in the project. For
each, describe their roles and responsibilities on the project.

Next, describe the number and type of people needed to carryout the project. For each
resource detail start dates, estimated duration and the method you will use for obtaining
them.

Create a single sheet containing this information.

Communications Plan

Create a document showing who needs to be kept informed about the project and how
they will receive the information. The most common mechanism is a weekly or monthly
progress report, describing how the project is performing, milestones achieved and work
planned for the next period.

Risk Management Plan

Risk management is an important part of project management. Although often


overlooked, it is important to identify as many risks to your project as possible, and be
prepared if something bad happens.

Here are some examples of common project risks:

• Time and cost estimates too optimistic.


• Customer review and feedback cycle too slow.
• Unexpected budget cuts.
• Unclear roles and responsibilities.
• Stakeholder input is not sought, or their needs are not properly understood.
• Stakeholders changing requirements after the project has started.
• Stakeholders adding new requirements after the project has started.
• Poor communication resulting in misunderstandings, quality problems and
rework.
• Lack of resource commitment.

Risks can be tracked using a simple risk log. Add each risk you have identified to your
risk log; write down what you will do in the event it occurs, and what you will do to
prevent it from occurring. Review your risk log on a regular basis, adding new risks as
they occur during the life of the project. Remember, when risks are ignored they don't go
away.

Congratulations. Having followed all the steps above, you should have a good project
plan. Remember to update your plan as the project progresses, and measure progress
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The sequence of activities that must be


completed on schedule for an entire project to be completed on
schedule.

Each task on the critical path is called a critical task. If a critical


task is delayed, then the entire project will be delayed by the same
amount (unless another activity on the critical path can be
accelerated).

The critical path may change from time to time as activities are
completed ahead of or behind schedule. There may be more than
one critical path depending on durations and work flow logic.

The term critical path refers to an input/output mechanism that is of


fundamental and critical importance to the life of prosperity of a
particular project. The critical path specifically refers to the sequence
or order of schedule activities that will make up the entire duration of a project.
Typically, the critical path represents the longest path through the entirety of the project
and typically this path consists of every single activity that must be concluded from the
kickoff to the ultimate conclusion of the project. However, in some cases a critical path
can terminate on a particular schedule milestone that does not come at the conclusion of
the project. However, in these cases, typically, the schedule milestone in question will
have a finish that comes at a time no later than that of the imposed date schedule restraint
in question. That said, in more cases than not the critical path does indeed run the entire
life of a project. For more information, please see critical path method.

This term is defined in the 3rd and the 4th edition of the PMBOK

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Host: Toni Bowers


view

Contact

Why critical path is critical to project


management
• Date: September 10th, 2009
• Author: Andrew Makar
• Category: Project Management
• Tags: Task, Project, Path, Path Methodology, Task 5, Figure B,
Microsoft Project, Networking, Microsoft Office, Office Suites

12 comment(s)

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• 12

If the PMBK definition of critical path has you puzzled, read Dr. Andrew Makar’s
explanation of this project methodology in real-world terms.

——————————————————————————————–

When I was a business analyst working on a human resource talent acquisition


implementation, six weeks out from the launch date the project manager rushed us into a
room and asked us to figure out the critical path. I had heard the term critical path before,
but I didn’t really understand what it meant. I knew the project was critical to the HR
organization and thought everything on the project was on a critical path.

Project managers will be amused that we were trying to figure out the critical path with
six weeks before launch rather than prior to project execution. In hindsight, the project
manager should’ve known the critical path earlier and been monitoring the schedule’s
progress. I still find it puzzling that the project manager asked a bunch of business and
system analysts to determine the project’s critical path.

It wasn’t until I shifted my career into project management that I gained a better
understanding of the critical path and its impact to a project. The Project Management
Body of Knowledge (PMBOK) defines the critical path as “the sequence of schedule
activities that determines the duration of the project.” Project managers can also apply the
critical path methodology technique to “determine the amount of float on various logical
network paths in the project schedule network to determine the minimum total project
duration.”

Critical path explained


If you’re just as confused by the PMBOK speak as I was, let me restate it in a way that’s
easier to understand.

The critical path is simply all the tasks that determine the end date in your project
schedule. If one of those tasks is late by one day, then your project end date will be
extended by one day. Oftentimes, there will be tasks that are not on the critical path; this
is due to the slack in the project schedule. If you refer to your current schedule, you can
examine the Gantt chart and quickly identify the tasks that have some float compared to
the tasks that have no slack.

Slack is the amount of time a task can be delayed without impacting the start date of a
subsequent task. The critical path methodology is simply a technique to identify all the
tasks that will directly impact the project end date. Figure A depicts a Gantt chart with a
set of tasks on the critical path.

Figure A

Critical path in Microsoft Project

In Figure A, there are five tasks in the project schedule and Task 4 is not on the project’s
critical path. If Task 1, 2, 3, or 5 is delayed, then the entire project will be delayed. If
Task 4 is delayed, it has seven days of free slack before it will start having an impact on
the schedule. Since Task 5 is three days in duration, Task 4 could have an actual duration
of 10 days before it becomes part of the project’s critical path. If it exceeds 11 days, Task
4 will create a new critical path.

I’ll admit I’m reluctant to create a network diagram and start the forward and backward
pass mechanics. Tools are invented for a reason and, fortunately, Microsoft Project can
support forecasting, what-if analysis, and detailed scheduling metrics along the critical
path. By switching to different views and formatting the Gantt charts, you can quickly
identify and monitor the tasks on the project’s critical path.

Figure B depicts the free slack in Microsoft Project. All the tasks on the critical path
have zero slack in their schedule and that’s why these tasks drive the end date. Task 5 has
7 days of slack and is not included on the critical path. By increasing or decreasing
duration on specific tasks, you can see the adjustments in the critical path.

Figure B

Critical path free slack


In my next column, I’ll show you how to identify the critical path in Microsoft Project
and use the different views to monitor and track the critical path.

Critical path and network sensitivity


If you want to learn about the critical path and network sensitivity, read my article on
Network Sensitivity and the Critical Path. The article features the sample Microsoft
Project file if you want to experiment with adjusting the critical path.

Additional TechRepublic resources about critical path


• Your schedule is complete. Do you know what your critical path
is?
• Understand the critical path to proactively manage your project
workplan
• Not all critical-path activities are critical
• Understand the critical path to put your project on the road to
success
• Critical Path Analysis: The path to project enlightenment

Get weekly PM tips in your inbox


TechRepublic’s IT Project Management newsletter, delivered on Wednesday, offers tips
to help keep project managers and their teams on track. Automatically sign up today!

Get IT tips, news, and reviews delivered directly to your inbox by subscribing to
TechRepublic's free newsletters.

Dr. Andrew Makar is an IT program manager and the author of several Microsoft
Project Training tutorials, including Microsoft Project Tutorial #1 Schedule
Development and the 60 second Project Status Report analyzer. Additional project
management tips can be found at http://www.tacticalprojectmanagement.com..

• « Previous Post
• Next Post »

People who read this, also read...


• View the critical path in Microsoft Project
• Build a customized Gantt chart view in Microsoft Project
• Build a customized Gantt chart view in Microsoft Project
• Having Problems with MS Project Calendar
• Create a traffic light Gantt chart in Microsoft Project 2007
Print/View all Posts Comments on this blog
But surely the critical path in project management is obvious? My-
PM-Expert.com | 09/12/09
To be honest I thought it was fundamental as well Tony
Hopkinson | 09/12/09
Re: To be honest I thought it was fundamental as well
amakar | 09/13/09
Well our place is a bit strange Tony Hopkinson | 09/13/09

Boom ...... PMP'sicle | 09/16/09

It was a good response Tony Hopkinson | 09/17/09

But is it obvious? amakar | 09/13/09

Critical path is the fundemental reason you plan a project


bcgumbert | 09/14/09
Not to be critical but ... PMP'sicle | 09/14/09

Re: Not to be critical amakar | 09/14/09

You know it's getting bad .... PMP'sicle | 09/16/09

MS Project caveats for critical path donstrayer@... | 09/17/09

What do you think?

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phrase critical chain method refers to a specific project management technique in which a
schedule network analysis is used for the purposes of modifying an already determined
and set project schedule to account for more limited than expected project financial
resources. The critical chain method takes into a count a number of factors when being
used in analysis. These factors primarily include those of deterministic probabilities as
well as probabilistic approaches to schedule network analysis. The critical chain method
should not be confused with other project management terms that involve the use and
modification of the critical path, such as the critical path, the critical path method, and/or
a critical activity. Also, the use of the word “critical” inn this instance does not
necessarily carry the weight or significance as the word according to a standard
dictionary definition. Critical carries a meaning more in line with ‘primary” than
“essential” or “vital” as you may find with other uses of the term outside of the area of
project management.

This term is defined in the 3rd and the 4th edition

Project management aims to bridge the gap between delivering a project quickly and delivering a project
with the functionality promised. Regardless of the project, the aim should be to achieve timely and reliable
delivery while adjusting to risks and unforeseen problems.

Barring any pre-existing corporate standards and procedures, I employ a work breakdown structure (WBS)
as the over-arching framework for identifying deliverables, scheduling tasks, and managing resources. As
part of my standard project management consulting, I will continuously monitor schedules, costs, and
resources to ensure that deliverables are consistent with your time, budget, and quality objectives. I have
available to me tried-and-true project management methodologies as well as a solid grounding in the project
management fundamentals all of which are standardized across the industry and can scale to suit your
particular needs.

Regardless of the methodology used, documentation for the projects I work on will include:

o Problem definition

o Project Objective Statement

o Scope and deliverables identification

o Time-sequenced task scheduling and critical path identification

o Quality reviews for milestone/deliverable completion and acceptance


1. A plan or proposal; a scheme. See Synonyms at plan.
2. An undertaking requiring concerted effort: a community cleanup project; a government-funded
irrigation project.
3. An extensive task undertaken by a student or group of students to apply, illustrate, or
supplement classroom lessons.
4. A housing project.
v. pro·ject (pr -j kt ) pro·ject·ed, pro·ject·ing, pro·jects
v.tr.
1. To thrust outward or forward: project one's jaw in defiance.
2. To throw forward; hurl: project an arrow.
3. To send out into space; cast: project a light beam.
4. To cause (an image) to appear on a surface: projected the slide onto a screen.
5. Mathematics To produce (a projection).
6. To direct (one's voice) so as to be heard clearly at a distance.
7. Psychology To externalize and attribute (an emotion or motive, for example) unconsciously to
someone or something else in order to avoid anxiety.
8. To convey an impression of to an audience or to others: a posture that projects defeat.
9. To form a plan or intention for: project a new business enterprise.
10. To calculate, estimate, or predict (something in the future), based on present data or trends:
projecting next year's expenses.
v.intr.
1. To extend forward or out; jut out: beams that project beyond the eaves. See Synonyms at
bulge.
2. To direct one's voice so as to be heard clearly at a distance.

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