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PROJECT MANAGEMENT SYSTEMS & TECHNIQUESProf. Sanjay Bhoyar NICMAR,PuneProject: MeaningSANJAY BHOYARNICMAR, PUNEA non-routine non-repetitive work undertaken to create an unique product/ service/ structure, within stipulated cost and time.

A project is temporary, yet uniqueDefinite ObjectiveDefinite TimeframeHas time, cost & other resources constraintsProject Life-Cycle:SANJAY BHOYARNICMAR, PUNEProject Life-Cycle:SANJAY BHOYARNICMAR, PUNENeed for Project Management:SANJAY BHOYARNICMAR, PUNEComplexity in projectsTimely completion of projectsResources limitationsCost of capitalPrice escalationIncreased outlayLonger spansRisks have increasedFinancers require workable planSetting targets against which performance can be measuredProject Management:SANJAY BHOYARNICMAR, PUNEApplication of knowledge, skills, tools & techniques of management to project activities, to achieve the project objectives with the available resources

Major functions:PlanningOrganizingControllingQuality & PerformanceCost TimeProject scopeProject Planning:SANJAY BHOYARNICMAR, PUNEDefining the scope of the projectIdentifying major project activitiesDesignProcurementConstructionIntegration of project activitiesProject teamProject schedulesEstimating project costsFinancial planningSite planningProject Management Systems:SANJAY BHOYARNICMAR, PUNEThe systems around which the managerial functions like planning, organizing & control are structured

a WBSan OBS, & Responsibility matrixProject SchedulesCost accounts for cost aggregation & controlBudgetsPMISWork Breakdown Structure (WBS):SANJAY BHOYARNICMAR, PUNEDetailing out the scope of a project

A systematic division of a project into Project deliverablesSub-division of deliverableswork packages, sub-work packages & Activities

Activities:Discrete work stepsProjectWork packagesSub Work packagesActivities Deliverables9SANJAY BHOYARNICMAR, PUNEConstruction & development of a Residential complexPreliminary worksAmenities Service facilitiesDrainage Bldg BClub houseSwimming poolBldg ASub-structureSuper-structureBuildings -Setting out-Excavation-PCC-RCC footing-RCC for PB-Plinth filling-RCC column-RCC slab & beams-Brickwork-Plastering-Plumbing-Flooring-Doors & windows-Electrification-Painting SANJAY BHOYARNICMAR, PUNERoad ProjectSubways/UnderpassesMinor Bridges/c/d worksMajor BridgesRoad Earthwork Pavement Drainage Lighting Wearing surfaceSub-baseBase Sub-grade MetallingCompacting Hydropower ProjectSANJAY BHOYARNICMAR, PUNEDamHRT (Transfer Tunnel)U/S Surge ShaftPenstock ShaftPower HouseTRTSub-station WorkshopOperations BuildingTransmission LineSANJAY BHOYARNICMAR, PUNEDam1.1 Diversions1.2 Dam wall construction1.3 Spillway section1.4 Gates1.5 D/s works1.6 Delivery tunnelHRT 2.1 ADIT2.2 Tunnel construction2.2.1 Survey & profile marking2.2.2 Drilling & blasting2.2.3 Defuming & mucking2.2.4 Bottom cleaning2.2.5 Rock bolting2.2.6 Rib erection, legging & backfill concrete2.2.7 ShotcreteU/S Surge ShaftPenstock Shaft

SANJAY BHOYARNICMAR, PUNE5. Power house5.1 Civil Works5.1.1ADIT5.1.2 Underground cavern 5.1.3 Main access tunnel5.1.4 Transformer chamber5.1.5 Penstock valve chamber5.1.6 Access tunnel5.1.7 D/S surge chamber5.2 Turbines & Valves5.2.1 Turbines5.2.2 Penstock guard valve5.2.3 Turbine inlet valve5.2.4 Bypass valve5.3 Electrical Works5.3.1 Generators5.3.2 Switch gear5.3.3 Power transformer6. TRT7. Sub-station Workshop8. Operations Building9. Transmission LineProject Scheduling:SANJAY BHOYARNICMAR, PUNEPart of Planning

Determining the sequence & timings of activities of a project

Time-frame for the project

Effective utilization of resources

Time-cost relationshipSteps in Project Scheduling:SANJAY BHOYARNICMAR, PUNEIdentifying the activities

Estimating the work content

Estimating durations of activities

Establishing the logic

Drawing the schedule

Analysis of schedule

Updating and revising the scheduleScheduling Techniques:SANJAY BHOYARNICMAR, PUNENon-Network techniquesBar chart/ Gantt chartLinear schedulingTime- chainage diagramLine of balance (LOB) technique

Network scheduling techniquesCPM PERTNetwork scheduling:SANJAY BHOYARNICMAR, PUNESeries of nodes & arrowsAOA / AD / ADMAON / ND / PDM

Activity:A discrete work step required for project completionConsumes time & resourcesEvent:An instantaneous occurrence during the progress of workSignifies specific occurrence/ substantial completion of workDoes not require resources or timeActivity-on-Arrow network (AOA):SANJAY BHOYARNICMAR, PUNESuitable for both, event oriented as well as activity oriented network scheduling techniques (PERT & CPM)

jiActivityduration153246Project startProject finishABEGCDFActivity-on-Node network (AON):SANJAY BHOYARNICMAR, PUNESuitable for activity oriented scheduling technique (CPM)BACDEGFSTARTFINISHSANJAY BHOYARNICMAR, PUNEActivity Preceding activitySucceeding activityDuration A-E3B-D5C-H,F,G6DBH4EAK,L7FCN6GCN9HC,DL4KEM7LE,HP2MK-5NF,GP3PL,N-8CPM ProblemA-O-A NetworkSANJAY BHOYARNICMAR, PUNE471025136981112ABCDEFGHKLMNP3564769472538d1d2d3A-O-N NetworkSANJAY BHOYARNICMAR, PUNEABDCGFHENLKPMSTARTFINISHCritical Path Method (CPM):SANJAY BHOYARNICMAR, PUNEAdequate knowledge & information about the workCertainty about The scope & nature of work,Work contentProductivity of resourcesSimilar works carried out in the pastTime & cost estimates are fairly accurate

Deterministic & activity oriented schedulingScheduling by CPM:SANJAY BHOYARNICMAR, PUNEBoth, A-O-A & A-O-N can be used

Determination of activity times & floats

Identification of critical activities & critical path

CPM analysis (using A-O-N): Activity times:SANJAY BHOYARNICMAR, PUNEEST = [EFTprec] max

EFT = EST + t

LFT = [LSTsucc] min

LST = LFT - tActsuccprecSANJAY BHOYARNICMAR, PUNECPM analysisFloat:Excess time available for an activityIndicates the criticality of an activityFloat = Time available time required

Total float:Excess time available without affecting project durationTF = LST EST or LFT - EFTFree float:Excess time available without affecting early start of succeeding activityFF = [ESTsucc - EFT]minActsuccprecCPM analysisSANJAY BHOYARNICMAR, PUNECritical activity:Lesser the float, more critical the activityNormally, activities with zero total float

Critical path:The longest path in the networkDetermines the Project DurationComprises of critical activities only

SANJAY BHOYARNICMAR, PUNE730A4430850B3350660C00601295D384015156G069015126F396316139H3124014103E4770181815N01530181513L31623211710K41470262618P01880262217M42154STARTFINISH002626LFEFESActTFLStFFDescription CP: C-G-N-PPD = 26A-O-N PDMPrecedence Relationships:

Finish to start (FS)

Start to start (SS)

Start to finish (SF)

Finish to finish (FF)ABABABAB+5-3+3+4PDM problem:Determine the critical path & project durationActivityDurationPredecessorRelationship with lead/ lag timeK10--L6KSS + 2M9KFSN5KFSP8LFS - 2Q7MSS + 5R4NFSS12NFSTSF + 5T10PFSU9QFSRFSV7SFSTFSUFF +2SANJAY BHOYARNICMAR, PUNESANJAY BHOYARNICMAR, PUNELFEFESActTFLStDescription 343427V0277323122U1239272414T31710272715S01512231915R4194232215Q116717146P398151510N0105201910M11191182L35610100K0010START002-255FINISH34342CP: K-N-S-VPD = 34Program Evaluation & Review Technique (PERT):SANJAY BHOYARNICMAR, PUNELack of knowledge & information about the workUncertainty aboutThe scope & nature of workWork contentWorking conditionsProductivity of resourcesNo accurate estimates of time & cost Suitable for non-repetitive type of projects

Probabilistic & event oriented scheduling techniqueScheduling by PERT:SANJAY BHOYARNICMAR, PUNEOnly 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

PERT analysis: Activity time estimatesThree time estimatesOptimistic time (to)Pessimistic time (tp)Most likely time (tm)Beta distribution

Expected/ mean duration of an activity

Variance of an activity

SANJAY BHOYARNICMAR, PUNEPERT analysisProject completion (event) time:Governed by Longest (Critical) pathNormal probability distribution

Average Expected project durationTe = EOT of the last eventVariance & standard deviation of project durationVar proj = var along Longest (Critical) Path

SANJAY BHOYARNICMAR, PUNEPERT analysisProbability calculations:SANJAY BHOYARNICMAR, PUNENormal value z = (Ts Te)/ proj

Area under cumulative normal distribution curve gives the probability of completing the project on or before the target time TsSANJAY BHOYARNICMAR, PUNEActivityPreceding activityto(weeks)tm(weeks)tp(weeks)A-235B-357C-679DA579EA347FB123GC71013HD358KB,G589LB,G246MH468NE,F,K134PM,N368QL8910PERT ProblemSANJAY BHOYARNICMAR, PUNEDetermine the critical path & the expected project durationWhat 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?SANJAY BHOYARNICMAR, PUNEActivityPreceding activitytotmtpteA-2353.170.25B-35750.44C-6797.160.25DA57970.44EA3474.330.44FB12320.11GC71013101HD3585.160.69KB,G5897.670.44LB,G24640.44MH46860.44NE,F,K1342.830.25PM,N3685.830.69QL891090.11SANJAY BHOYARNICMAR, PUNE102030508040706010090110003.17A3.17B5C7.16G10D7H5.16E4.33F2L4Q9P5.83M6N2.8310.1715.3357.1617.1624.8327.6733.5021.1633.5024.5027.6724.8317.167.1621.6716.509.5017.16K7.67ijActteEOTEOTLOTLOTAverage expected project duration, Te = 33.50CP: 10-40-60-80-100-110 (C-G-K-N-P)Var proj = 2.63 ; proj = 1.62PERT NetworkSANJAY BHOYARNICMAR, PUNEProbability of completing project in 30 weeksTe = 33.50 weeks; proj = 1.62; Ts=30 weeksz = (Ts Te)/ projZ = (30-33.50)/1.62 = -2.16Corresponding, p = 0.0154 = 1.54%Probability of completing project in 35 weeksTe = 33.50 weeks; proj = 1.62; Ts=35 weeksz = (Ts Te)/ projZ = (35-33.50)/1.62 = 0.93Corresponding, p = 0.8238 = 82.38%Duration for 90% certaintyFor, p = 0.90 => Z = 1.28z = (Ts Te)/ proj1.28 = (Ts 33.50)/ 1.62Ts = 35.57 weeks

Project costs:SANJAY BHOYARNICMAR, PUNEDirect costsAttributed to a particular activityIndirect costsCannot be attributed to an activityProject overheadsPenalties / incentives

Time-cost trade-offDetermining the minimum possible total cost for a particular project duration. Time- cost trade-off:SANJAY BHOYARNICMAR, PUNEDetermining the minimum possible total cost for a particular project duration.

Compression:Reducing project durationCompressing critical activitiesIncrease in Direct costReduction in Indirect cost

Crashing:Ultimate stage of compressionTime - Cost trade-off:SANJAY BHOYARNICMAR, PUNEProject durationIndirect CostTotal CostMinimumTotal CostOptimum PDDirect CostCostNormal PDMinimum PDSteps in compression:SANJAY BHOYARNICMAR, PUNEDetermine activity compression potential & cost slopeDraw network for normal durationsList all paths, with their durationsIdentify CPCompress activities along CP (s)Continue till at least one CP is fully compressed (crashed)SANJAY BHOYARNICMAR, PUNEActivity Preceding activityNT(weeks)CT(weeks)NC(x Rs 1000)CC(x Rs 1000)A-646476B-433033CA955474DA322834EB747091FB548292GC444747HD,E653945KF322730LG968698MF,H535565NK212729Indirect cost is Rs. 10000 per weekNumerical problem: SANJAY BHOYARNICMAR, PUNEActivity NTCTNCCCCompression potentialCost slopeA64647626B43303313C95547445D32283416E74709137F548292110G44474700H65394516K32273013L96869834M53556525N21272912SANJAY BHOYARNICMAR, PUNEA(6)STARTFINISHE(7)D(3)C(9)K(3)H(6)G(4)N(2)M(5)L(9)B(4)F(5)Paths Duration along path @ each stage01234A-C-G-L28*A-D-H-M20B-E-H-M22B-F-M14B-F-K-N14A-O-N Network(normal durations)SANJAY BHOYARNICMAR, PUNEPaths Duration along path @ each stage012345A-C-G-L28*25*22*21*20*19A-D-H-M202020201816B-E-H-M222222*21*20*19B-F-M141414131211B-F-K-N141414131313A(6)STARTFINISHE(7)D(3)C(9)K(3)H(6)G(4)N(2)M(5)L(9)B(4)F(5)A-O-N Network(normal durations)Compression table:StageActCSDur of compPDIncrease in DCDCICTC0---28-6092808891L4325126212508712C5322156362208563C512108644210854B34A612011655200855M55A611911666190856M5SANJAY BHOYARNICMAR, PUNENPDMin PDOPDSANJAY BHOYARNICMAR, PUNEA(6)STARTFINISHE(7)D(3)C(5)K(3)H(6)G(4)N(2)M(5)L(6)B(3)F(5)A(4)STARTFINISHE(7)D(3)C(5)K(3)H(6)G(4)N(2)M(3)L(6)B(3)F(5)A-O-N Network(Optimum PD)A-O-N Network(Minimum PD)Resources scheduling:SANJAY BHOYARNICMAR, PUNEScheduling the work for effective utilization of resources

Resources allocationAssigning the resources for each activityResources aggregationDaily resource requirementResources smoothingTime constrained schedulingResources levelingResource constrained scheduling

SANJAY BHOYARNICMAR, PUNEResource utilization factor (RUF)/ Effective force ratio (EFR):

RUF or EFR =

Idle Force ratio (IFR) = 1- EFR

Higher the RUF, more effective the resource utilizationTotal resource-days requiredPeak resource requirement x project durationActivities, their durations & resource requirements are given below. Schedule the work for the most effective resource utilization.ActivityPreceding activityDuration (days)Resource rateA-65B-44CA96DA35EB74FB52GC46HD,E63KF32LG95MF,H57NK26SANJAY BHOYARNICMAR, PUNESANJAY BHOYARNICMAR, PUNEDays 12345678910111213141516171819202122232425262728DRR (ESS)9999111117171712121115159991313121212555555293A/5B/4C/6D/5E/4F/2G/6H/3K/2N/6M/7L/5ESSSANJAY BHOYARNICMAR, PUNEDays 12345678910111213141516171819202122232425262728DRR (ESS)9999111117171712121115159991313121212555555293DRR (Trial 1)9999111112121212121317179999981212121212555293ESSA/5B/4C/6D/5E/4F/2G/6H/3K/2N/6M/7L/5TRIAL1A/5B/4C/6D/5E/4F/2G/6H/3K/2N/6M/7L/5SANJAY BHOYARNICMAR, PUNEDays 12345678910111213141516171819202122232425262728DRR (ESS)9999111117171712121115159991313121212555555293DRR (Trial 2)9999991212121212111111999111110121212121211115293ESSA/5B/4C/6D/5E/4F/2G/6H/3K/2N/6M/7L/5TRIAL 2A/5B/4C/6D/5E/4F/2G/6H/3K/2N/6M/7L/5SANJAY BHOYARNICMAR, PUNE

Time chainage diagram/ Linear scheduling:SANJAY BHOYARNICMAR, PUNESuitable for repetitive type of projectsSame activities are sequentially repeated at regular interval/ stage/ location

Resource work continuitySample problem:On a 12 km long road project, following four activities are repeated, sequentially. Prepare time-chainage schedule. ActivityProgress rate (km/day)Duration for 12 kmBuffer Start bufferEnd bufferStart timeFinish timeSubgrade 1.0 12---012Sub-base0.52422-226Base 0.52422-428Wearing course1.582-22230SANJAY BHOYARNICMAR, PUNESANJAY BHOYARNICMAR, PUNE1211109876543210123456789101112131415161718192021222324252627282930Sub-gradeSub-baseBaseWearingTime-chainage DiagramTime (days)Chainage (km)Project Monitoring & Control:SANJAY BHOYARNICMAR, PUNEMonitoring:Establishing progress of the projectPeriodic Review of current statusControl:Comparing the planned versus actual progressIdentifying deviations & reasons for such deviationsAnalyzing the effect on time, cost & performance parameters of the projectCorrective actionsUpdating plans

SANJAY BHOYARNICMAR, PUNEBase Plan-schedule-budget -scope Deviations -schedule-budget -scope Actual status-schedule-budget -scope Impact on Schedule, Budget & ScopeCorrective ActionsRevised Plan-schedule-budget -scope Raplace Base planProject ControlProject time-cost control:SANJAY BHOYARNICMAR, PUNES- curveProject budget planActual cost of work performedBudgeted cost of work performedEarned value Planned cost allocated to the completed workEV = BCWPEV = [Budgeted cost of activity x % activity completion]

Project performance status:SANJAY BHOYARNICMAR, PUNECost varianceCV = BCWP - ACWPCost performance indexCPI = BCWP/ ACWPEstimated cost at project completionEAC = BAC/ CPISchedule varianceSV = BCWP - BCWSSchedule performance indexSPI = BCWP/ BCWSEstimated time for project completionETPC = STPC/ SPIProject performance index (Critical ratio) = SPI x CPI

Sample problem:SANJAY BHOYARNICMAR, PUNETaskDuration(weeks)Preceding taskBudgeted cost (Rs in lacs)Status by end of 5th weekActual expenditure (Rs in lacs)% completeA3-61008B5A20406C3A3033.3312D4A24509E2A16507F4C1600G3D,E900H2B,F,G1800SANJAY BHOYARNICMAR, PUNETaskDuration(weeks)WeightagesBudgeted cost (Rs in lacs)Status by end of 5th weekActual expenditure (Rs in lacs)% complete% project ProgressA311.54610011.548B519.2420407.706C311.543033.333.8512D415.3824507.709E27.6916503.857F415.3816000G311.549000H27.691800010034.64Weeks 123456789101112Weekly progress (%)3.853.853.8515.3815.3811.5411.5411.547.707.703.853.85% progress (ESS)3.857.7011.5426.9242.353.8565.3876.9284.6292.3196.15100Weekly cost (ESS)22228282014117799Cumulative cost (ESS)24634628296107114121130139ESSA/2B/4C/10D/6E/8F/4G/3H/9SANJAY BHOYARNICMAR, PUNEStatus of progress: At end of 5th weekSANJAY BHOYARNICMAR, PUNETaskDurationBudgeted cost(BC)Scheduled StartScheduled Finish% completionCostEarned value(BCWP)Scheduled(WS)Actual(WP)Scheduled(BCWS)Actual(ACWP)A3603100100686B520384040868C3303666.6733.33201210D42437505012912E21635100501678F41661000000G3971000000H218101200000624244SANJAY BHOYARNICMAR, PUNEReview date: 5 weeks from startWS = 42.3 %WP = 34.64 %BCWS = 62ACWP = 42BCWP = 44 = EARNED VALUECV = BCWP ACWP = 44 42 = +2 (cost savings)SV = BCWP BCWS = 44 62 = -18 (behind schedule)CPI = BCWP/ACWP = 44/42 = 1.05SPI = BCWP/BCWS = 44/62 = 0.71Project performance index = SPI x CPI = 0.7455EAC = BAC / CPI = 139/1.05 = 132.68 lacsETPC = STPC / SPI = 12/0.71 = 16.91 weeksSANJAY BHOYARNICMAR, PUNEThank YouContact NICMAR:SANJAY BHOYARNICMAR, PUNEwww.nicmar.ac.in020-27291342

Prof. Sanjay Bhoyarsanbhoyar@nicmar.ac.in9552546301; 020-66859116Chart19599959995999599115119115119171012121710121217101212121012121210121211101311151017111510171191599915999159913991113119111210810121012121210121251012125141212514121251451151851151855

TimeDRRResource Histograms

Sheet1ESSLSSTRIAL 1TRIAL 29599959995999599115119115119171012121710121217101212121012121210121211101311151017111510171191599915999159913991113119111210810121012121210121251012125141212514121251451151851151855293293293293

Sheet1

DaysDRRResource Histogram (LSS)

Sheet2

DaysDRRResource Histogram (ESS)

Sheet3

DaysDRRResource Histogram (Trial 1)

DaysDRRResource Histogram (Trial 2)

ESSLSSTRIAL 1981525981981525981981525981981525981111215259811112152598117289101001214417289101001214417289101001214412144101001214412144101001214411121101001112115225101001112115225101001112198115225981981152259819811522598113169981111211316911121111211214410100101001214410100121441214410100121445251010012144525141961214452514196121445251419611121525183241112152518324525293345529334632933141