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Operations Research

MBA-024

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PROJECT MANAGEMENT

UNITIV

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Basic Concepts

Activity (arc): All projects are composed of

operations or tasks called activities.

Predecessor activity: Activity that must becompleted immediately prior to the start of

another activity.

Successor activity: Activity that cannot be

started until one or more of the other

activities are completed.

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Basic Concepts

Concurrent activities: activities which can be

accomplished concurrently.

Event (node): A specific accomplishment inthe project; takes place at a particular instant

of time; does not consume any time or

resource.

Merge event: The event at which more than

one activity end.

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Basic Concepts

Burst event: The event from where more than

one activity start.

Merge and Burst event: A combination of theabove two.

Dummy activity: A fictitious activity used to

fulfill some specific purpose in a network.

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Rules for Drawing Network

Diagram Each activity is represented by one and only

one arrow.

No two activities can be identified by thesame beginning and end events.

Before an activity is undertaken, all preceding

activities must be completed.

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Rules for Drawing Network

Diagram The arrows depicting various activities are

indicative of the logical precedence only. The

length and bearing of the arrows are of no

significance.

The flow of the diagram should be from left to

right.

Arrows should be kept straight.

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Rules for Drawing Network

Diagram Angles between the arrows should be as large

as possible.

Each activity must have a tail and a headevent.

Dangling must be avoided.

Fulkersons rule should be followed for

numbering the nodes. The interdependence of activities must not be

violated.

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Common Errors

Dangling.

Looping.

Redundancy.

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Critical Path Method (CPM)

Developed by M. R. Walker.

Uses single time estimate, unlike PERT.

The amount of time required for completingvarious activities is assumed to be known with

certainty.

Emphasizes the relationship between applying

more men and/or other resources to shorten

the duration of project; in the process, the

cost increases.

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Programme Evaluation and Review

Technique (PERT) Developed by a (American) Navy sponsored

research team in 1950s.

Helpful in planning and controlling projects. Designed for scheduling complex projects that

involve many inter-related tasks.

Uses three time estimates normal,

optimistic, pessimistic.

Identifies likely trouble spots in advance.

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Applications of PERT and CPM

To plan, schedule, monitor and control projects

such as:

Construction of buildings, bridges, factories,highways, stadiums, irrigation projects, etc.

Budget and auditing procedures.

Missile development programmes.

Installation of a complex new equipment such

as computers or large machinery.

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Applications of PERT and CPM

To plan, schedule, monitor and control projects

such as:

Advertising programmes and for developmentand launching of new products.

Planning of political campaigns.

Strategic and tactical military planning.

Research and development of new products.

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Applications of PERT and CPM

To plan, schedule, monitor and control projects

such as:

Finding the best traffic flow pattern in a largecity.

Maintenance and overhauling complicated

equipment in the chemical, power plants,

steel and petroleum industries.

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Applications of PERT and CPM

To plan, schedule, monitor and control projects

such as:

Long-range planning and developing staffingplans.

Organisation of big conferences, public works,

etc.

Shifting of manufacturing plant from one site

to another.

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Applications of PERT and CPM

To plan, schedule, monitor and control projects

such as:

Preparation of bids and proposals for projectsof large size.

Launching space programmes.

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Crashing

The project completion time can be reduced

by reducing (crashing) the normal completion

time of critical activities.

The reduction in normal time of completion

will increase the total budget of the project.

The decision-maker will have to look at the

time-cost trade-off for the various activities of

the project.