Project Management Report

Robert Gordon UniversityProject Management

Sushil Goswami BEng. Mechanical & Offshore Engineering Page 1

A REPORT

ON

PROJECTMANAGEMENT

PLANNINGTECHNIQUES

BY

SUSHIL GOSWAMI

0903143

3RD YEAR BEng MECHANICAL & OFFSHOREENGINEERING



CONTENTS

1. TERMS OF REFERENCE………………………………………………..page 32. SUMMARY………………………………………………………………….page43. INTRODUCTION………………………………………………………….page64. PROJECT PLANNING TECHNIQUES/METHODS…………….page75. COMPARISON OF GANTT, PERT & CPM………………………page156. OTHER METHODS OF PROJECT PLANNING…………………page217. CONCLUSION…………………………………………………………….page258. REFERENCES……………………………………………………………..page26



1.TERMS OF REFERENCE.

In the month of October 2009, Dr. C. MacLeod, lecturer for ProjectManagement (EN3800) instructed all third year undergraduate students ofstage 3 of BEng – Mechanical Engineering and BEng – ElectricalEngineering to prepare reports to compare the three main methods ofplanning projects and to research any new developments in the area.

The report will cover the following sections:

Outline the three planning techniques by taking a simple projectand producing a plan for it using the different methods.

Contrast and compare the advantages and disadvantages of thethree planning methods.

Outline any new methods of project planning developed in thisarea.

The due date for this report is 27th November, 2009.



2.SUMMARY

Project management has been practiced since early civilisation. In the mid of19th century, project management saw tremendous progress due to theprogress made in various fields. In its present state, project management is ahighly structured process. Planning is one of the key processes involved inproject management. Over the last few decades, many planning techniqueshave been developed. The three basic methods of project planning areGANTT, PERT and CPM charts.

GANTT charts were originally developed by Henry Grant during the years of1910-1915. GANTT charts continue to be popular and are now considered tobe a common charting technique. GANTT charts are similar to bar-charts.GANTT charts are normally used to represent the timing of tasks required tocomplete a process.

PERT chart was developed by US navy during 1950s. PERT charts are alsoknown as event labelled charts as the start and finish dates are shown in thediagram. At its core, PERT is a management of probabilities, which it doesquite elegantly using simple statistics. It uses two types of techniques ofrepresentation- activity on arc (AOA) and activity on node (AON). PERT chartshows a network of activities and their interdependencies. Before an activitycould start, all its predecessor activities must have been completed. PERTcharts are normally used as a tool for planning and control of time.

CPM charts quite similar to PERT charts but the main focus of them is toidentify critical activities or critical path involved in a project. These are thetasks or activities that a delay within will delay the whole project. At its core,CPM is a deterministic tool which allows an explicit estimate of costs inaddition to time.

Although GANTT charts provide for an easy graphical visualisation of aproject but they fail to provide enough information on interdependencies ofthe activities involved in a project. Besides, they suffer from other drawbacksas well. For example, they can’t explicitly identify critical paths and fail toshow other resources. Some of these shortcoming are overcome by



PERT/CPM charts. They provide for detailed planning, efficient monitoringand control over project and proper use of resources in a project plan. Theycan be easily understood and are adaptable to computers as well. PERTcharts recognise uncertainty in project time estimation as it is. While CPMcharts can easily identifies critical activities in a project. But as witheverything else in life, PERT/CPM too suffer from some drawbacks. PERTgives a rough estimation of the uncertainty in the final completion time of aproject. These network diagrams tend to be large and unwieldy sometime.There is always inherent danger of laying too much emphasis on criticalpaths. Although CPM/PERT charts tend to be more compact than the GANTTcharts, but they do it at the cost of a linear time scale.

In addition to the three basic planning methods/techniques, there are othermethods like PRINCE2, DSM and IDEF3 which are used in the industry forproject plans.

PRINCE2 is a process-based method for effective project management. Itprimarily covers management, control and organisation of a project.

DSM is a simple tool to perform both the analysis and the management ofcomplex systems. As a management tool, it provides a project representationthat allows for feedback and cyclic task dependencies.

IDEF3 is a business process modelling method. This method is designed tounderstand the knowledge about how a particular system works. It can bedivided into two categories:

1. PF- process flow diagrams.2. OSTN- object state transition network diagrams.



3. INTRODUCTION

Projects are one-off pieces of work in the form of related tasks, or activitieswhich when completed within a fixed timescale satisfy one or moreobjectives. Since early civilisation, project management has been practiced.By 1950s, project management saw a tremendous development as adiscipline due to the progress made in the fields of construction, engineering,telecommunications, and defence. Examples of projects which influenced thedevelopment of modern project management as we know it today include a)Polaris missile project, 1956; b) Apollo project, 1960; and c) E.I. du Pont deNemours chemical plant project, 1958. (1)

Project management in its present state is a highly structured process. It canbe broken down into following steps:

1. Initiation2. Planning3. Execution4. Monitoring5. Controlling6. Completing a plan/project as specified.



4. PROJECT PLANNING TOOLS/TECHNIQUES

According to ‘Project Management Body of Knowledge’, A project plan is aformal, approved document used to guide both project execution and projectcontrol. The primary uses of the project plan are to document planningassumptions and decisions, facilitate communication among stakeholders,and document approved scope, cost, and schedule baselines. A project planmay be summarized or detailed. (2)

There are three basic systems used to prepare the plan. There are few othersbut are normally mixtures of elements from two or more of the basicsystems.

The systems are:

GANT chart – A Bar Chart Technique

PERT – Program Evaluation and Review Technique

CPM – Critical Path Method (3)

We will be looking at these 3 techniques in more detail by using an example.Let’s just say a family is preparing to go a football game. Their house has 2showers. Mother insists that the entire family eats together at breakfasttime. Their morning preparations are shown below:



No. Task Duration Person Depends on1. Alarm goes off 5 minutes Father None2. Wake family 5 minutes Father 13. Mum shower 40 minutes Mother 24. Son shower 30 minutes Son 25. Walk dog 10 minutes Father 26. Father shower 15 minutes Father 57. Prepare breakfast 15 minutes Mother 38. Eat breakfast 15 minutes All 79. Load car 5 minutes All 810. Drive car 25 minutes all 9(The above example has been adapted fromhttp://www.mckinnonsc.vic.edu.au/vceit/ganttpert/buffalo/buffalo-pert.htm)

GANTT chart: The chart is commonly known after Henry Gantt who designedthis chart around the years 1910-1915. (4). In general, a GANTT chart is akind of bar chart which illustrates a project schedule. It represents the timingof tasks required to complete a project.

Now, let’s have a look at the GANTT chart on the next page made usingMicrosoft Project.

http://www.mckinnonsc.vic.edu.au/vceit/ganttpert/buffalo/buffalo-pert.htm






The above GANTT chart shows the different tasks involved in the project.Each task takes up one row. Time runs along the top in increment of minutes.The expected time for each task is marked by a horizontal bar whose left endmarks the expected beginning of the task and whose right end marks theexpected completion time. For example, the task ‘WAKE FAMILY’ is expectedto start at the end of the 5th minute and finish at the end of the 10th minute.It spans over duration of 5 minutes. (4, 5)

GANTT charts are simple to design and easy to construct. GANTT charts give aclear illustration of project status, but one problem with them is that theydon’t indicate task dependencies. We can’t tell how one task falling behindschedule affects other tasks. (4, 5)

Now, let’s have a look at PERT chart for the same project.

PERT chart: A PERT chart is a project management tool used to schedule,organise and coordinate tasks within a project. PERT stands for ProjectEvaluation Review Technique and this methodology were developed by U.S.Navy in the 1950s to manage the Polaris submarine missile program. (6, 7)

Complex projects require a series of activities. An activity is a task whichmust be performed and an event is a milestone marking the completion ofone or more activities. Before an activity can begin, all of its predecessoractivities must be completed.

PERT is known as event labelled because the start and finish are noted in thediagram.

preparebreakfast

finishbreakfast



A PERT is constructed from a series of start and end elements like the onesshown above.

PERT chart: Sample Project

In the above PERT chart, tasks- ‘mum shower’, ‘son shower’ and ‘walk dog’are concurrent or parallel tasks as they all start off at the completion of task-‘wake family’ and are completely independent of each other. Now, the task-‘eat breakfast’ can’t start unless tasks- ‘prepare breakfast’, ‘father shower’and ‘son shower’ have been completed. The event- ‘arrive at game’ is themilestone here and indicates the completion of the project. (4, 5). A

ALARM GOES OFF ID: 1

DUR: 5 MINS RES: DAD

WAKE FAMILY ID: 2


SON SHOWER ID: 4

DUR: 30 MINS RES: SON

WALK DOG ID: 5


FATHER SHOWER ID: 6


MUM SHOWER ID: 3

DUR: 40 MINS RES: MUM

PREPARE BREAKFAST ID: 7

DUR: 15 MINS RES: MOM

EAT BREAKFAST ID: 8

DUR: 15 MINS

RES: MOM, DAD, SON

LOAD CAR ID: 9

DUR: 5 MINS

RES: DAD, MUM, SON

DRIVE TO GAME ID: 10

DUR: 25 MINS

RES: DAD, MUM, SON

ARIVE AT GAME ID: 11

MILESTONE



milestone could be defined as an event of zero duration which marks asignificant point of progress in a project. Milestones are used to see whethera project is on time or not. A milestone may be “Design is finished”, “Signcontract”, “Project Ends” etc. (7)

CPM chart: The critical path method (CPM) is a step-by-step technique forprocess planning that defines critical and non-critical tasks with the goal ofpreventing time-frame problems and process bottlenecks. The CPM is ideallysuited to projects consisting of numerous activities that interact in a complexmanner. The CPM was developed in the 1950s by DuPont, and was first usedin missile-defence construction projects. Since that time, the CPM has beenadapted to other fields including hardware and software product researchand development. (8)

A CPM chart generally needs a list of activities for a project where eachactivity has a list of predecessor activities. Critical Path Method (CPM) chartsare similar to PERT charts and are sometimes known as PERT/CPM. In a CPMchart, the critical path is indicated. A critical path consists of set ofdependent tasks (each dependent on the preceding one) which together takethe longest time to complete. Although it is not normally done, a CPM chartcan define multiple, equally critical paths. Tasks which fall on the critical pathshould be noted in some way, so that they may be given special attention.The critical path for any given method may shift as the project progresses;this can happen when tasks are completed either behind or ahead ofschedule, causing other tasks which may still be on schedule to fall on thenew critical path. (8, 9)

We would be using the AOA (activity on arc) form of the CPM chart for theafore-mentioned project.



Figure: PERT chart

(The above diagram has been adapted fromhttp://www.mckinnonsc.vic.edu.au/vceit/ganttpert/buffalo/buffalo-

pert.htm)

In the example above, notice the dummy tasks leading from tasks 4 and 6 totask 8. They indicate that task 8- ‘eating breakfast’ cannot commence untiltasks 4- ‘son shower’ and 6- ‘father shower’ are completed. Also, task 8cannot start until it predecessor, task 7- ‘prepare breakfast’ is complete.Hence, a dependency must be shown for tasks 4 and 6 leading to task 8. Butif we draw normal task arrows from task 4 and 6, it means that something





needs to be done on those arrows, but there is no task, just the dependency.So, we use dummy (dotted) lines which show that a dependency exists eventhough there is no task between the two tasks. (5, 8)

Now, we can clearly see that critical path here in this example is Alarm, WakeAll, Mum Shower, Prepare Breakfast, Eat breakfast, Load car and Drive. If anyof these tasks get delayed, the whole plan will get delayed. (5, 8)

The minimum time the family would take before they could reach thefootball game after the alarm goes off is the total of the critical taskdurations= 5+5+40+15+15+5+25=110 minutes. (5)

In the above PERT chart, the critical path has been shown by darker arrows.



5. COMPARE GANTT, PERT & CPM.

In this section, we would be comparing the three techniques/methods viz.GANTT, PERT and CPM.Let’s have a look at the advantages disadvantages of the GANTT charttechnique.ADVANTAGES:

1. They provide an excellent presentation tool forillustrating groups of milestones and demonstratingindividual resources scheduled to time,

2. They can used in status reporting to show how much ofthe plan has been completed by displaying the progressof an activity in the same or parallel bar, or usingcolour,

3. Many executives prefer this presentation format due toits simplicity and ease of display on one single screen.

4. They also allow a quick identification of the critical pathin the process.

5. They allow tasks to overlap partially, which is often notallowed by other methodologies/techniques.

6. All tasks are visible in relationship to others.7. Deadlines are clearly shown. (4, 10, 11)

DISADVANTAGES:1. Estimates must be complete before the chart could be

drawn.2. A GANTT chart does not effectively address the

dependencies between jobs (although constraints canbe added as vertical lines).

3. Dependencies are hard to verify.4. It is difficult to show two sets of dates when using

techniques such as earliest start date and latest startdate.



5. It is difficult to show slack and critical path withoutadditional notation.

6. GANTT charts present a deterministic schedule of aprocess. There is no room for probabilistic distributionof tasks, each task is assumed to have a definiteduration whatever the circumstances, which may notbe a very realistic assumption.

7. Changes to the schedule require a redrawing of thechart.

8. Several scheduling possibilities cannot be shown in thesame chart.

9. Resource assignments are not easy to illustrate.10.The GANTT chart does not highlight WBS elements with

the highest risk of failure or delay. (10, 11, 4)

Advantages and disadvantages of PERT are as listed below:

ADVANTAGES:

1. PERT charts help defining explicit and visibledependencies between the WBS elements.

2. Critical path for a project could be easily identifiedusing PERT charts.

3. Elements like early start, late start and slack time foreach activity can be easily identified early using PERTcharts.

4. Similar to CPM charts, PERT provides for potentiallyreduced project duration due to better understandingof dependencies leading to improved overlapping ofactivities and tasks where feasible.

5. Unlike CPM, the probabilities of successfully meetingdeadlines, finishing early, or finishing late can be easilyassessed by the use of PERT.

6. One key advantage of PERT charts is that they can be assimple or as complicated as needed.



7. As PERT charts tend to be using probabilistic timeestimates, they can effectively used for non-repetitivejobs like research and development work, where timeand cost estimates tend to be quite uncertain. (10, 12,13, 4, 14, 15)

DISADVANTAGES:

1. The PERT charts tend to be large and unwieldyrequiring several pages to print and requiring specialsize paper.

2. Time estimates tends to be subjective and are subjectto fudging by managers.

3. There can be potentially hundreds or thousands ofactivities and individual dependency relationships.

4. It’s harder to show the status of a project because ofthe lack of the timeframe on most of the PERT charts.

5. In real-life, projects will hardly execute exactly as theywere planned due to uncertainty. In such a case, PERTcharts may provide inaccurate information about theproject completion time due to the reason ofuncertainty. Sometime, this inaccuracy is large enoughto render such estimates as not helpful. (10, 12, 13, 4,14, 15)

CPM shares most of the advantages and disadvantages of PERT charts. Bothof them being network diagrams have many common key advantages andbenefits and suffer from many similar limitations.

Let’s have a look at some of the advantages and disadvantages of CPM:

ADVANTAGES:

1. The use of CPM forces management to plan in detailand to define what must be done to accomplishobjectives/targets on time.

2. As management is forced to make commitmentsand plan for execution times and completion dates,



CPM provides for better communication among thevarious departments in an organisation andbetween suppliers and the client.

3. CPM also helps management to efficiently controland monitor a project by early identification ofcritical activities. Usually in a project, the number ofcritical activities is only a small portion of all theactivities. Identification of the critical activitiesenables the use of an efficient monitoring systemconcentrating only on the critical activities.

4. CPM helps in identifying potential problem areas.The critical activities are also more likely to becomeproblem areas. Once identified, contingency plansmay be devised.

5. CPM provides for wise allocation of resources todifferent activities by examination of the overallplan. For example, resources can be transferred tobottleneck or trouble areas from other activities, ifrequired. Also, it also identifies which can bedelayed for a while if resources need to bereallocated to catch up on missed tasks.

6. Likewise PERT charts, CPM are also easily adaptableto computer use. Diagramming of the networks andplanning large projects can be easily done bycomputers.

7. Unlike PERT, CPM enables management to evaluatetrade-offs between the cost of executing a job in anormal way or expediting activities (also known ascrashing) at a higher cost so as to finish earlier.

8. Likewise PERT charts, CPM charts can be easilyunderstood as they provide a method to visualise anentire project. Hence, they could be easily explainedto supervisors and employees in such a way thatchances of implementation are increased. (14, 15,16, 17, 4, 10, 13)



DISADVATAGES:

1. In CPM, there is only one estimate of durationunlike PERT where it uses three time estimates.Thus, CPM is a deterministic tool. It cannot beused as effectively as PERT charts to define theprobabilities of meeting deadlines, finishing early,or finishing late in a project.

2. CPM charts sometime lay too much emphasis oncritical path activities.

3. Precedence relationship must be specified andnetworked together.

4. Although CPM/PERT charts tend to be morecompact than the GANTT, but they do it at thecost of a linear time scale. The time resourcesrequired by a task are given numerically, ratherthan appearing graphically in a horizontaldimension. This may make it harder to see whichtasks/activities are using the most timeresources.

5. As in the PERT charts, there could be potentiallyhundreds or thousands of activities and individualdependency relationships.

6. One key assumption of CPM is that the keyconstraint to the accomplishment of a process istime. Yet, the goal of many processes may be theminimisation of required time, the limitingconstraint may often stem from other resources.When a resource other than time is the limitingfactor, then PERT diagrams can still be usefultools to visualise dependent sequence of steps.(14, 15, 16, 17, 4, 10, 13)



By now, we have seen the various aspects of GANTT, PERT and CPM charts.While GANTT charts provide an easy graphical representation of whenactivities (might) take place, they don’t clearly indicate details regarding theprogress of activities. Beside, they fail to show dependencies betweendifferent activities. Some of these shortcomings of GANTT charts are solvedto a large extent by network diagrams like CPM and PERT charts. Thesecharts show interdependence of various activities by means of connectingarrows called network techniques. GANTT charts fail at providing enoughinformation about critical activities which govern the success or failure of awhole project. CPM/PERT charts identify these critical activities. Further,these techniques can also tell us how close the remaining activities are tobecoming critical (this available delay is also called slack or float). (4, 17, 14)

PERT and CPM are very similar in their approach; however, two distinctionsare usually made. The first relates to a way in which activity duration areestimated. In PERT, three time estimates are used to form a weightedaverage of the expected completion time, based on a probability distributionof completion times. Therefore, PERT is a probabilistic tool. This makes PERTa better tool for non-repetitive jobs like research and development work,where time and cost tend to be quite uncertain. In CPM, there is only oneestimate of duration; that is, CPM is a deterministic tool. This makes CPM abetter tool for jobs of repetitive in nature where activity time estimates canbe predicted with considerable certainty due to the existence of pastexperience. The second difference is that allows CPM allows for an explicitestimate of costs in addition to time. Thus, while PERT is basically a tool forplanning and control of time, CPM can be used to control both the time andthe cost of the project. (14)

For complex, time-critical projects, the CPM/PERT charts might be useful inproviding a clear indication of the critical sequences of tasks necessary tokeep the project on schedule.

Over the time, CPM and PERT charts have merged together into one singletechnique. Extensions of both CPM and PERT allow the user to manage otherresources in addition to money and time, to trade-off resources, to analysedifferent types of schedules, and to balance the use of resources. (4, 14, 17)



6. OTHER METHODS OF PROJECT PLANNING

Some of the alternative methods/techniques used in the industry are asfollows:

IDEF3- Integrated Definition for Function Modelling 3: it is abusiness process modelling method. The IDEF3 method is ascenario-driven process flow description capture method designedto understand the knowledge about how a particular system works.IDEF3 captures the temporal information including precedence andcausality relationship between various processes and theirassociated tasks. IDEF3 process mapping comes in two forms,process flow (PF) and object state transition network (OSTN). Aprocess flow description captures the knowledge of how thingswork: for example, the description of what happens to a part as itpasses through a sequence of manufacturing processes. The secondform of IDEF3 process mapping is object state transition networkwhich summarises the allowable transitions an object may undergothroughout a particular process. In short, the PF describes theinternal workings of the processes, while the OSTN describes theinterfaces to the processes. These two views are used together tofully describe the system, organisation, or business process.(10, 18)



(The above two diagrams have been taken from:http://it.toolbox.com/blogs/enterprise-solutions/idef3-models-process-description-18705)

DSM- Design Structure Matrix: it is a simple tool to perform boththe analysis and the management of complex systems. It was firstintroduced by Don Steward in 1981. It helps capture the importantrelationships in a complex system. It enables a user to model,visualise and analyse the dependencies among the entities of anysystem. As a management tool, it provides a project representationthat allows for feedback and cyclic task dependencies. This isextremely important since most engineering applications exhibitsuch cyclic property. As such, this representation often results in animproved and more realistic execution schedule for thecorresponding design activities.The method consists in recording in a square matrix all theinteractions inside a system and in deducing a better organisationfrom these interactions. We will take a simple abstract example tounderstand this method. The left part of the figure below shows asystem of 6 elements. Let us suppose that the elements representthe tasks that need to be completed in a design process. The tasks

http://it.toolbox.com/blogs/enterprise-solutions/idef3-models-process-description-18705




are randomly numbered in the chart, and they influence each otherthrough the pattern of arrows. It’s quite difficult to understand andvisualise the structure of the example through the diagram in theleft part. On the right side of the figure is the corresponding DSMthat maps the interactions between the process tasks, listed in rowsand columns in same order. The matrix is filled with orientedinteractions from the elements in columns to the elements in rows.Thus, looking at the off-diagonal marks in a column, task 7 in theexample figure below will describe which other tasks on the outputof the task corresponding to the column. Similarly, the off-diagonalmarks within a row, 5 in the example, represent all of the taskswhose output is required to perform the task corresponding to thatrow, i.e. 1, 3 and 8 in the example. The diagonal cells are usuallymeaningless since they would represent a dependency of a task onitself. (10)



PRINCE2: Project in controlled environments is a process-basedmethod for effective project management. It was first developed bythe UK government in 1989 as the standard approach to IT projectmanagement for central government. It primarily coversmanagement, control and organisation of a project. PRINCE2 refersto the second major version of this method and is a trademark ofthe Office of Government Commerce (OGC), an independent officeof HM treasury of United Kingdom. The key features of the PRINCE2are: a) its focus on business justification, b) a defined organisationstructure for the project management team, c) its product-basedplanning approach, d) its emphasis on driving the project intomanageable and controllable stages, e) its flexibility to be applied ata level appropriate to the project. This method has mostly beenadopted in Western Europe and Australia. It almost has no presencein the rest of world including US, India and China. (19, 20)



7.CONCLUSION

Project management is a highly-structured process in its present state andthere are many methods/techniques which can be employed to prepare aplan. The three basic systems which are commonly used are GANTT, PERTand CPM. Each of them has its own place in a project plan. A GANTT chart isquite useful for easy graphical visualisation of a project but it suffers frommany drawbacks. For example, it fails to provide enough information aboutthe interdependencies of different activities involved in a project. On theother hand, PERT/CPM charts enable a user to identify critical activities in aproject. While PERT can be used for planning and control of time, CPM chartscan be used to control both time and cost of a project. CPM charts are quitesimilar to the PERT charts but include an explicit indication of the ‘criticalpath’. Otherwise, CPM shares same strengths and weaknesses as the PERT,and the two are often lumped together as one technique. (4, 14)

Extensions of both PERT and CPM allow user to manage resources inaddition to time and cost, to trade off resources, to analyse different types ofschedule, and to balance the use of resources. For complex and time-criticalprojects, the CPM/PERT charts might be useful in providing a clear indicationof the critical sequence of tasks necessary to keep the project on schedule.(4, 14)

There are other methods/techniques available as well in addition to thethree basic systems. Some of them are PRINCE2, DSM, and IDEF3 etc.Depending upon the types of projects involved, different planning techniquesfind their respective application in project plans.



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http://it.toolbox.com/blogs/enterprise-solutions/pros-cons-of-the-pertcpm-method-22221

http://www.netmba.com/operations/project/cpm/

http://pdf2me.com/view?pdf=http://www.pmipr.org/html/Presentaciones/The%20Critical%20Path%20Method.pdf

http://pdf2me.com/view?pdf=http://www.pmipr.org/html/Presentaciones/The%20Critical%20Path%20Method.pdf



http://www.ogc.gov.uk/methods_prince_2__benefits.asp

http://www.prince2.com/what-is-prince2.asp

http://www.prince2.com/what-is-prince2.asp



Project Management Report

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beng mechanical engineering

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