1. Project Management Fundamental
What is a Project?
Projects are defined as a set of interrelated activities
that are directed at achieving a particular goal or
objective. In all cases, project have a definitive
objective
starting and ending point.
The out put of a project is not necessarily a physical
product, such as the launch of a new consumer
product, but also can be service related, such as a
television play.

2. Project Management Fundamental
What is Project Management?
Project management is defined as
the process of planning and
controlling the resources that make
up a project, with the objective of
completing the project within
specified time, cost, and other
cost
performance parameters like quality.
quality
Ultimately, the project manager must
establish a plan that identifies the
sequence of individual activities and
the assignment of resources.
resources

3. Project Management Techniques
In general, project management techniques are used by
managers to help them plan, control, direct and re-plan
resources for their projects. PERT (Program Evaluation and
Review Technique) and CPM (Critical Path Method) are the
Technique
Method
two most common project management techniques.
CPM was developed by J.E. Kelly of Remington-Rand and M.R.
Walker of DuPont, as a tool to assist with scheduling
maintenance shut-downs of chemical plants.
PERT was developed later on, for the U.S. Navy, to help manage
the Polaris Missile project.
Today, however, differences between the two are relatively
minor, and are often used interchangeably PERT/CPM
technique.
Continued…

4. Project Management Techniques
PERT/CPM techniques display project activities in a network
diagram to help managers focus their attention on the
sequence of events most crucial for project completion.
In order to create a network diagram, the project must include
activities that not only are clearly defined, but also must be
carried out in a specific order (precedence relationship).
In most situations, opportunities exist to re-order, compress or
extend the activities with the objectives of revising the program
budget or completion date.

5. The Project Management Process
The project management process using a network model can
be separated into four steps:
1. Define the project
2. Identify activities, precedence
relationship and time elements
3. Establish critical path
4. Make adjustments
i. The trade-offs between cost and
completion time
ii. Crashing of critical activities
iii. Re-ordering the precedence relationships

6. PERT/CPM Example; Mr. Bart’s Skiing Trip
Activity ID
Activity Name
Immediate
Predecessor
Estimated Time
(hours)
A
Drive to home
_
0.5
B
Washing cloths
A
4.0
C
Packing up
B
0.5
D
Going to bank
A
1.0
E
Packing up of car
C,D
0.5
F
Drive to airport
E
0.5
Total = 07 hours
{Pessimistic + (4*Most Likely) + Optimistic}/6

7. PERT Diagram; Skiing Trip
B
Washing cloths
4.0 h
A
Drive to home
C
Packing up
0.5 h
E
Packing up car
0.5 h
0.5 h
D
Going to bank
1.0 h
{Pessimistic + (4*Most Likely) + Optimistic}/6
F
Drive to airport
0.5 h

8. PERT Diagram; Skiing Trip
(Early Start and Early Finish Times)
0.5
4.5
B
Washing cloths
0
0.5
4.0 h
5.0
C
Packing up
0.5 h
A
Drive to home
0.5 h
4.5
5.0
5.5
E
Packing up car
0.5
1.5
0.5 h
5.5
6.0
F
Drive to airport
0.5 h
D
Going to bank
1.0 h
Earliest Finish Time = Earliest Start Time + Activity Duration

9. PERT Diagram; Skiing Trip
(latest Start and Latest Finish Times)
0.5/0.5
4.5/4.5
B
Washing cloths
0/0
0.5/0.5
4.5/4.5
C
Packing up
4.0 h
0.5 h
A
Drive to home
0.5 h
5.0/5.0
5.0/5.0
5.5/5.5
5.5/5.5
E
Packing up car
0.5/4.0
1.5/5.0
F
Drive to airport
0.5 h
D
Going to bank
1.0 h
Latest Start Time = Latest Finish Time - Activity Duration
Slack or Floating Activity = (LS – ES) = (LF – EF) > 0
Critical Activity = (LS – ES) = (LF – EF) = 0
6.0/6.0
0.5 h

10. PERT Diagram; Skiing Trip
(latest Start and Latest Finish Times)
0.5/0.5
4.5/4.5
B
Washing cloths
0/0
0.5/0.5
4.5/4.5
C
Packing up
4.0 h
0.5 h
A
Drive to home
0.5 h
5.0/5.0
5.0/5.0
5.5/5.5
5.5/5.5
E
Packing up car
0.5/4.0
1.5/5.0
F
Drive to airport
0.5 h
D
Going to bank
1.0 h
Latest Start Time = Latest Finish Time - Activity Duration
Slack or Floating Activity = (LS – ES) = (LF – EF) > 0
Critical Activity = (LS – ES) = (LF – EF) = 0
6.0/6.0
0.5 h