PROJECT MANAGEMENT

SYSTEMS & TECHNIQUES

Prof. Sanjay Bhoyar NICMAR,Pune

Project: Meaning

A non-routine non-repetitive work undertaken

to create an unique product/ service/
structure, within stipulated cost and time.

A project is temporary, yet unique

Definite Objective
Definite Timeframe

Has time, cost & other resources constraints

NICMAR, PUNE

SANJAY BHOYAR

Project Life-Cycle:
Concept &
feasibility

Operating &
Maintenance

Engg &
Design

Procurement

Commissioning
Construction
& Start-up
NICMAR, PUNE

SANJAY BHOYAR

Project Life-Cycle:

NICMAR, PUNE

SANJAY BHOYAR

Need for Project Management:

Complexity in projects
Timely completion of projects
Resources limitations
Cost of capital
Price escalation
Increased outlay
Longer spans
Risks have increased
Financers require workable plan
Setting targets against which performance can be
measured

NICMAR, PUNE

SANJAY BHOYAR

Project Management:

Application of knowledge, skills, tools & techniques

of management to project activities, to achieve the
project objectives with the available resources

Major functions:

Planning
Organizing
Controlling

Cost

Time
Quality &
Performance
Project scope

NICMAR, PUNE

SANJAY BHOYAR

Project Planning:

Defining the scope of the project

Identifying major project activities

Design
Procurement
Construction

Integration of project activities

Project team
Project schedules
Estimating project costs
Financial planning
Site planning

NICMAR, PUNE

SANJAY BHOYAR

Project Management Systems:

The systems around which the managerial functions

like planning, organizing & control are structured

a WBS
an OBS, & Responsibility matrix
Project Schedules
Cost accounts for cost aggregation & control
Budgets
PMIS

NICMAR, PUNE

SANJAY BHOYAR

Work Breakdown Structure (WBS):

Detailing out the scope of a project

A systematic division of a project into

Project deliverables
Sub-division of deliverables
work packages,
sub-work packages &
Activities

Project

Deliverables

Work packages

Sub Work packages

Activities:

Discrete work steps

Activities

NICMAR, PUNE

SANJAY BHOYAR

Construction & development of

a Residential complex

Preliminary
works

Bldg A

Buildings

Bldg B

Sub-structure
-Setting out
-Excavation
-PCC
-RCC footing
-RCC for PB
-Plinth filling

Amenities

Club house

Service facilities

Swimming pool

Drainage

Super-structure
-RCC column
-RCC slab & beams
-Brickwork
-Plastering
-Plumbing
-Flooring
-Doors & windows
-Electrification
-Painting

SANJAY BHOYAR
NICMAR, PUNE

Road Project

Road

Earthwork

Sub-grade

Major Bridges

Minor Bridges/
c/d works

Subways/
Underpasses

Pavement

Drainage

Lighting

Base

Sub-base

Wearing surface

Metalling
Compacting
NICMAR, PUNE

SANJAY BHOYAR

Hydropower Project
1.
2.
3.
4.
5.
6.
7.
8.
9.

Dam
HRT (Transfer Tunnel)
U/S Surge Shaft
Penstock Shaft
Power House
TRT
Sub-station Workshop
Operations Building
Transmission Line

NICMAR, PUNE

SANJAY BHOYAR

Dam

1.

1.1 Diversions
1.2 Dam wall construction
1.3 Spillway section
1.4 Gates
1.5 D/s works
1.6 Delivery tunnel
2.

HRT
2.1 ADIT
2.2 Tunnel construction
2.2.1 Survey & profile marking
2.2.2 Drilling & blasting
2.2.3 Defuming & mucking
2.2.4 Bottom cleaning
2.2.5 Rock bolting
2.2.6 Rib erection, legging & backfill concrete
2.2.7 Shotcrete

3.
4.

U/S Surge Shaft

Penstock Shaft

NICMAR, PUNE

SANJAY BHOYAR

5. Power house
5.1 Civil Works
5.1.1ADIT
5.1.2 Underground cavern
5.1.3 Main access tunnel
5.1.4 Transformer chamber
5.1.5 Penstock valve chamber
5.1.6 Access tunnel
5.1.7 D/S surge chamber
5.2 Turbines & Valves
5.2.1 Turbines
5.2.2 Penstock guard valve
5.2.3 Turbine inlet valve
5.2.4 Bypass valve
5.3 Electrical Works
5.3.1 Generators
5.3.2 Switch gear
5.3.3 Power transformer
6. TRT
7. Sub-station Workshop
8. Operations Building
9. Transmission Line
NICMAR, PUNE

SANJAY BHOYAR

Project Scheduling:

Part of Planning

Determining the sequence & timings of activities of

a project

Time-frame for the project

Effective utilization of resources

Time-cost relationship

NICMAR, PUNE

SANJAY BHOYAR

Steps in Project
Scheduling:

Identifying the activities

Estimating the work content

Estimating durations of activities

Establishing the logic

Drawing the schedule

Analysis of schedule

Updating and revising the schedule

NICMAR, PUNE

SANJAY BHOYAR

Scheduling Techniques:

Non-Network techniques

Bar chart/ Gantt chart

Linear scheduling
Time-

chainage diagram
Line of balance (LOB) technique

Network scheduling techniques

CPM
PERT

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SANJAY BHOYAR

Network scheduling:

Series of nodes & arrows

Activity:

AOA / AD / ADM
AON / ND / PDM

A discrete work step required for project completion

Consumes time & resources

Event:

An instantaneous occurrence during the progress of work

Signifies specific occurrence/ substantial completion of
work
Does not require resources or time

NICMAR, PUNE

SANJAY BHOYAR

Activity-on-Arrow network (AOA):

Suitable for both, event oriented as well as

activity oriented network scheduling
techniques (PERT & CPM)
Activity
i

Project start
1

D
B

G
3

NICMAR, PUNE

duration

Project finish
6

5
SANJAY BHOYAR

Activity-on-Node network (AON):

Suitable for activity oriented scheduling

technique (CPM)

START

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FINISH

SANJAY BHOYAR

CPM Problem
Activity

Preceding activity

Succeeding
activity

Duration

H,F,G

K,L

C,D

E,H

F,G

L,N

NICMAR, PUNE

SANJAY BHOYAR

A-O-A Network
E
7

2
A
3
B

5
6

7
d2

D
4

H
4

5
9

d1

N
F
6

4
9

L
2

11

M
P
8

10
d3

G
7

NICMAR, PUNE

SANJAY BHOYAR

12

A-O-N Network

START

NICMAR, PUNE

SANJAY BHOYAR

FINISH

Critical Path Method (CPM):

Adequate knowledge & information about the work

Certainty about

The scope & nature of work,

Work content
Productivity of resources

Similar works carried out in the past

Time & cost estimates are fairly accurate
Deterministic & activity oriented scheduling

NICMAR, PUNE

SANJAY BHOYAR

Scheduling by CPM:

Both, A-O-A & A-O-N can be used

Determination of activity times & floats

Identification of critical activities & critical

path

NICMAR, PUNE

SANJAY BHOYAR

CPM analysis (using A-O-N):

Activity times:

EST = [EFTprec] max

EFT = EST + t

LFT = [LSTsucc] min

LST = LFT - t

NICMAR, PUNE

prec

Act

succ

SANJAY BHOYAR

CPM analysis

Float:

Excess time available for an activity

Indicates the criticality of an activity
Float = Time available time required

Total float:

prec

Act

succ

Excess time available without affecting project duration

TF = LST EST or LFT - EFT

Free float:

Excess time available without affecting early start of

succeeding activity

FF = [ESTsucc - EFT]min

NICMAR, PUNE

SANJAY BHOYAR

CPM analysis

Critical activity:

Lesser the float, more critical the activity

Normally, activities with zero total float

Critical path:

The longest path in the network

Determines the Project Duration
Comprises of critical activities only

NICMAR, PUNE

SANJAY BHOYAR

0 A 3
4 3 7
4
0

3 E 10
7 7 14
4
0

10 K 17
14 7 21
4
0

17 M 22
21 5 26
4
4

9 H 13
12 4 16
3
0

13 L 15
16 2 18
3
3

18 P 26
18 8 26
0
0

6 F 12
9 6 15
3
3

15 N 18
15 3 18
0
0

0
START
0

0 B 5
3 5 8
3
0

0 C 6
0 6 6
0
0

5 D 9
8 4 12
3
0

26
FINISH
26

Description
ES Act EF
CP: C-G-N-P
PD = 26
NICMAR, PUNE

6 G 15
6 9 15
0
0

LS
TF
SANJAY BHOYAR

LF
FF

A-O-N PDM

Precedence
Relationships:

Finish to start (FS)

Start to start (SS)

-3

B
+5
B
+3

Start to finish (SF)

Finish to finish (FF)

+4
A

PDM problem:

Activity

Duration

Predecessor

10

SS + 2

FS

FS

FS - 2

SS + 5

FS

12

FS

SF + 5

10

FS

FS

FS

FS

FS

FF +2

Relationship with
lead/ lag time

Determine the critical path & project duration

SANJAY BHOYAR

NICMAR, PUNE

10 M 19
11 9 20
1

0 K 10
0 10 10
0

START

15 Q 22
16 7 23
1

5
2 2
5
3

L 8
6 11

Description

-2

10 N 15
10 5 15
0

6
9
3

P 14
8 17

15 R 19
19 4 23
4

34

22 U 31
23 9 32
1

FINISH

34
2

15 S 27
15 12 27
0
5

27 V 34
27 7 34
0

ES Act EF
LS

LF

TF
NICMAR, PUNE

14 T 24
17 10 27
3

CP: K-N-S-V
PD = 34
SANJAY BHOYAR

Program Evaluation & Review Technique

(PERT):

Lack of knowledge & information about the work

Uncertainty about

The scope & nature of work

Work content
Working conditions
Productivity of resources

No accurate estimates of time & cost

Suitable for non-repetitive type of projects
Probabilistic & event oriented scheduling technique

NICMAR, PUNE

SANJAY BHOYAR

Scheduling by PERT:

Only A-O-A network can be used

Determination of event times & slack

Identification of critical events & critical path

Determination of probability of project

completion (an event) by given date

NICMAR, PUNE

SANJAY BHOYAR

PERT analysis:
Activity time estimates

Three time estimates

Optimistic time (to)

Pessimistic time (tp)

Most likely time (tm)

Beta distribution

Expected/ mean
duration of an activity
Variance of an activity

NICMAR, PUNE

te

to 4.t m t p
6

t p to
2

SANJAY BHOYAR

PERT analysis
Project completion (event) time:

Governed by Longest (Critical) path

Normal probability distribution
Average Expected project duration

Te = EOT of the last event

Variance & standard deviation of project duration

Var proj = var along Longest (Critical) Path

proj varproj
NICMAR, PUNE

SANJAY BHOYAR

PERT analysis
Probability calculations:

Normal value

z = (Ts Te)/ proj

Area under cumulative normal distribution

curve gives the probability of completing the
project on or before the target time Ts

NICMAR, PUNE

SANJAY BHOYAR

PERT Problem
Activit
y

Preceding
activity

to
tm
(weeks) (weeks)

10

13

B,G

B,G

E,F,K

M,N

10

NICMAR, PUNE

tp
(weeks)

SANJAY BHOYAR

Determine the critical path & the expected

project duration
What is the probability of completing the
project within 30 weeks?
What is the probability of completing the
project within 35 weeks?
What is the project duration for 90 % certainty
of on-time project completion?

NICMAR, PUNE

SANJAY BHOYAR

Activity

Preceding
activity

to

tm

tp

te

3.17

0.25

0.44

7.16

0.25

0.44

4.33

0.44

0.11

10

13

10

5.16

0.69

B,G

7.67

0.44

B,G

0.44

0.44

E,F,K

2.83

0.25

M,N

5.83

0.69

10

0.11

NICMAR, PUNE

SANJAY BHOYAR

PERT Network

A
3.17

30
17.16
7.16
40
7.16

24.83

C
7.16

15.33
70
21.67

H
5.16

E
4.33
F
2

B
5

10
0

3.17
20
9.50

10.17
50
16.50

G
10

17.16
60
17.16

80
24.83

M
6
N
2.83

27.67
100
27.67

7.67
L
4

P
5.83

21.16
90
24.50

33.50
110
33.50

Average expected project duration, Te = 33.50

CP: 10-40-60-80-100-110 (C-G-K-N-P)
Var proj = 2.63 ; proj = 1.62
NICMAR, PUNE

EOT
i
LOT

Act
te

SANJAY BHOYAR

EOT
j
LOT

Probability of completing project in 30 weeks

Te = 33.50 weeks; proj = 1.62; Ts=30 weeks

z = (Ts Te)/ proj

Z = (30-33.50)/1.62 = -2.16
Corresponding, p = 0.0154 = 1.54%

Probability of completing project in 35 weeks

Te = 33.50 weeks; proj = 1.62; Ts=35 weeks

z = (Ts Te)/ proj

Z = (35-33.50)/1.62 = 0.93
Corresponding, p = 0.8238 = 82.38%

Duration for 90% certainty

For, p = 0.90 => Z = 1.28

z = (Ts Te)/ proj
1.28 = (Ts 33.50)/ 1.62
Ts = 35.57 weeks

NICMAR, PUNE

SANJAY BHOYAR

Project costs:

Direct costs

Attributed to a particular activity

Indirect costs

Cannot be attributed to an activity

Project overheads

Penalties / incentives

Time-cost trade-off

Determining the minimum possible total cost for a

particular project duration.

NICMAR, PUNE

SANJAY BHOYAR

Time- cost trade-off:

Determining the minimum possible total cost for a

particular project duration.

Compression:

Reducing project duration

Compressing

critical activities

Increase in Direct cost

Reduction in Indirect cost

Crashing:

Ultimate stage of compression

NICMAR, PUNE

SANJAY BHOYAR

Time - Cost trade-off:

Total Cost
Cost
Minimum
Total Cost

Indirect Cost

Direct Cost
Project duration
Minimum PD

NICMAR, PUNE

Optimum PD

Normal PD

SANJAY BHOYAR

Steps in compression:

Determine activity compression potential &

cost slope
Draw network for normal durations
List all paths, with their durations
Identify CP
Compress activities along CP (s)
Continue till at least one CP is fully compressed
(crashed)

NICMAR, PUNE

SANJAY BHOYAR

Numerical problem:
Activity

Precedin
g activity

NT
(weeks)

CT
(weeks)

NC
(x Rs 1000)

CC
(x Rs 1000)

64

76

30

33

54

74

28

34

70

91

82

92

47

47

D,E

39

45

27

30

86

98

F,H

55

65

27

29

Indirect cost is Rs. 10000 per week

NICMAR, PUNE

SANJAY BHOYAR

Activity

NT

CT

NC

CC

Compression
potential

Cost
slope

64

76

30

33

54

74

28

34

70

91

82

92

10

47

47

39

45

27

30

86

98

55

65

27

29

NICMAR, PUNE

SANJAY BHOYAR

A(6)
START

C(9)

G(4)

L(9)

D(3)

H(6)

M(5)

K(3)

N(2)

B(4)

E(7)

A-O-N Network
(normal durations)

F(5)

Paths

Duration along path @ each stage

0

A-C-G-L

28*

A-D-H-M

20

B-E-H-M

22

B-F-M

14

B-F-K-N

14

NICMAR, PUNE

FINISH

SANJAY BHOYAR

A(6)
START

C(9)

G(4)

L(9)

D(3)

H(6)

M(5)

K(3)

N(2)

B(4)

E(7)

A-O-N Network
(normal durations)

F(5)

Paths

FINISH

Duration along path @ each stage

0

A-C-G-L

28*

25*

22*

21*

20*

19

A-D-H-M

20

20

20

20

18

16

B-E-H-M

22

22

22*

21*

20*

19

B-F-M

14

14

14

13

12

11

B-F-K-N

14

14

14

13

13

13

NICMAR, PUNE

SANJAY BHOYAR

Compression table:
Stage

Act

CS

Dur of
comp

PD

Increase
in DC

DC

IC

TC

28

609

280

889

25

12

621

250

871

22

15

636

220

856

5
1

21

08

644

210

854

20

11

655

200

855

19

11

666

190

856

M
NICMAR, PUNE

SANJAY BHOYAR

NPD

OPD

Min
PD

A(6)

START

B(3)
A-O-N Network
(Optimum PD)

START

B(3)

NICMAR, PUNE

G(4)

L(6)

D(3)

H(6)

M(5)

K(3)

N(2)

C(5)

G(4)

L(6)

D(3)

H(6)

M(3)

K(3)

N(2)

FINISH

E(7)
F(5)

A(4)

A-O-N Network
(Minimum PD)

C(5)

E(7)
F(5)

SANJAY BHOYAR

FINISH

Resources scheduling:

Scheduling the work for effective utilization

of resources

Resources allocation

Resources aggregation

Daily resource requirement

Resources smoothing

Assigning the resources for each activity

Time constrained scheduling

Resources leveling

Resource constrained scheduling

NICMAR, PUNE

SANJAY BHOYAR

Resource utilization factor (RUF)/ Effective

force ratio (EFR):
Total resource-days required

RUF or EFR =

Idle Force ratio (IFR) = 1- EFR

Peak resource requirement x project duration

Higher the RUF, more effective the resource

utilization

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SANJAY BHOYAR

Activities, their durations & resource requirements are given

below. Schedule the work for the most effective resource
utilization.
Activity

Preceding activity

Duration (days)

Resource rate

D,E

F,H

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SANJAY BHOYAR

ESS

G/6

C/6
A/5

L/5

D/5
E/4

B/4

H/3

M/7

F/2
K/2

Days

DRR (ESS)

9 11 11 17 17 17 12 12 11 15 15 9

NICMAR, PUNE

10

11

N/6

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

9 13 13 12 12 12 5

SANJAY BHOYAR

293

G/6

C/6
A/5
ESS

L/5

D/5
E/4

B/4

H/3

M/7

F/2
N/6

K/2

G/6

C/6
D/5

A/5

H/3

E/4

B/4

TRIAL1

L/5

M/7

F/2
K/2
Days

DRR (ESS)
DRR (Trial 1)

11 11 17 17 17 12 12 11 15 15

13 13 12 12 12

11 11 12 12 12 12 12 13 17 17

SANJAY BHOYAR

10

11

N/6
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

NICMAR, PUNE

293

8 12 12 12 12 12

293

G/6

C/6
A/5
ESS

L/5

D/5
E/4

B/4

H/3

M/7

F/2
N/6

K/2

G/6

C/6
D/5

A/5

H/3

E/4

B/4

TRIAL 2

L/5

M/7

F/2
N/6

K/2
Days

DRR (ESS)
DRR (Trial 2)

11 11 17 17 17 12 12 11 15 15

13 13 12 12 12

293

11 11 10 12 12 12 12 12 11 11

293

SANJAY BHOYAR

10

11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

9 12 12 12 12 12 11 11 11

NICMAR, PUNE

NICMAR, PUNE

SANJAY BHOYAR

Time chainage diagram/ Linear scheduling:

Suitable for repetitive type of projects

Same activities are sequentially repeated at

regular interval/ stage/ location

Resource work continuity

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SANJAY BHOYAR

Sample problem:

On a 12 km long road project, following four activities are

repeated, sequentially. Prepare time-chainage schedule.
Activity

Progress
rate
(km/day)

Duration
for 12 km

Buffer

Start
buffer

End
buffer

Start
time

Finish
time

Subgrade

1.0

12

12

Sub-base

0.5

24

26

Base

0.5

24

28

Wearing
course

1.5

22

30

NICMAR, PUNE

SANJAY BHOYAR

Time-chainage Diagram
12
11
10

Sub-base

Chainage (km)

Sub-grade

Wearing
Base

7
6
5
4
3
2
1

0 1 2 3 4 5 6 7 8 9 10 1112 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
NICMAR, PUNE

Time (days)

SANJAY BHOYAR

Project Monitoring & Control:

Monitoring:

Establishing progress of the project

Periodic Review of current status

Control:

Comparing the planned versus actual progress

Identifying deviations & reasons for such deviations
Analyzing the effect on time, cost & performance
parameters of the project
Corrective actions
Updating plans

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SANJAY BHOYAR

Project Control
Base Plan
-schedule
-budget
-scope

Raplace
Base plan

Revised Plan
-schedule
-budget
-scope
NICMAR, PUNE

Actual status
-schedule
-budget
-scope

Deviations
-schedule
-budget
-scope

Impact on Schedule, Budget & Scope

Corrective Actions

SANJAY BHOYAR

Project time-cost control:

S- curve

Project budget plan

Actual cost of work performed
Budgeted cost of work performed

Earned value

Planned cost allocated to the completed work

EV = BCWP
EV = [Budgeted cost of activity x % activity completion]

NICMAR, PUNE

SANJAY BHOYAR

Project performance status:

Cost variance
CV = BCWP - ACWP
Cost performance index
CPI = BCWP/ ACWP
Estimated cost at project completion
EAC = BAC/ CPI
Schedule variance
SV = BCWP - BCWS
Schedule performance index
SPI = BCWP/ BCWS
Estimated time for project completion
ETPC = STPC/ SPI
Project performance index (Critical ratio) = SPI x CPI

NICMAR, PUNE

SANJAY BHOYAR

Sample problem:
Task Duratio
n
(weeks)

Preceding Budgeted
task
cost
(Rs in
lacs)

Status by end of
5th week
% complete

Actual
expendi
ture
(Rs in
lacs)

100

20

40

30

33.33

12

24

50

16

50

16

D,E

B,F,G

18

NICMAR, PUNE

SANJAY BHOYAR

Task Duratio
n
(weeks)

Weightag
es

Budgeted
cost
(Rs in
lacs)

Status by end of
5th week
%
complete

Actual
expendi
% project ture
Progress (Rs in
lacs)

11.54

100

11.54

19.24

20

40

7.70

11.54

30

33.33

3.85

12

15.38

24

50

7.70

7.69

16

50

3.85

15.38

16

11.54

7.69

18

NICMAR, PUNE

100

34.64
SANJAY
BHOYAR

B/4
A/2

C/10

ESS

F/4

D/6

H/9
G/3

E/8

Weeks

Weekly progress (%)

% progress (ESS)
Weekly cost (ESS)
Cumulative cost (ESS)

NICMAR, PUNE

11

12

3.85

3.85

3.85

3.85

3.85

3.85

7.70

11.54 26.92 42.3 53.85 65.38 76.92 84.62 92.31 96.15

100

28

28

20

14

11

34

62

82

96

107

114

121

130

139

15.38 15.38 11.54

11.54

10

11.54 7.70 7.70

SANJAY BHOYAR

Status of progress: At end of 5th week

Tas
k

Dura Budgete
tion d cost
(BC)

Sched Sched
uled
uled
Start Finish

% completion Cost
Sched
uled
(WS)

Actual
(WP)

Schedul
ed
(BCWS
)

Actual
(ACWP
)

Earned
value
(BCWP
)

100

100

20

40

40

30

66.67

33.33

20

12

10

24

50

50

12

12

16

100

50

16

16

10

10

18

10

12

62

42

44

NICMAR, PUNE

SANJAY BHOYAR

Review date: 5 weeks from start

WS = 42.3 %
WP = 34.64 %
BCWS = 62
ACWP = 42
BCWP = 44 = EARNED VALUE
CV = BCWP ACWP = 44 42 = +2 (cost savings)
SV = BCWP BCWS = 44 62 = -18 (behind schedule)
CPI = BCWP/ACWP = 44/42 = 1.05
SPI = BCWP/BCWS = 44/62 = 0.71
Project performance index = SPI x CPI = 0.7455
EAC = BAC / CPI = 139/1.05 = 132.68 lacs
ETPC = STPC / SPI = 12/0.71 = 16.91 weeks
NICMAR, PUNE

SANJAY BHOYAR

Thank You

NICMAR, PUNE

SANJAY BHOYAR

Contact NICMAR:

www.nicmar.ac.in
020-27291342
Prof. Sanjay Bhoyar
sanbhoyar@nicmar.ac.in
9552546301; 020-66859116

NICMAR, PUNE

SANJAY BHOYAR