PROJECT MANAGEMENT

WHAT IS PROJECT MANAGEMENT

◆ Project management relates to the well-planned organization and
execution of action, processes and procedures towards the completion of a
project.

◆ “A project is a series of structured tasks, activities, and deliverables that are

carefully executed to achieve a desired outcome. They are temporary efforts
to create value through unique products, services and processes.”
(According to the Project Management Institute)

◆ Businesses can use a combination of project management tools to help with

the execution of projects, e.g., Gantt Chart, Network analysis (Critical Path
Analysis).
 The Nature of Projects
CPA may be used where the business faces problems that display the following
characteristics.

• Dependent Activities

• Deadlines

• Restricted Resources

ACTIVITY
Think of various ‘projects’ that display the
characteristics for Critical Path Analysis.
Write down the separate activities involved
and try to establish a logical order in which
the activities ought to be carried out.
 WHAT IS CRITICAL PATH ANALYSIS (CPA)?
Critical Path Analysis or Network Analysis is a technique which is used to
schedule and manage projects. More specifically, it is used to:

1. Estimate the earliest and latest start and end times for the various tasks
associated with a project.

2. Minimum/shortest time required to complete the whole project.

3. Identify tasks which can be delayed and those which cannot be delayed (those
critical to the project’s completion).

4. Identify where in the project resources are not used efficiently.

5. Continuously evaluate success or failure of the planning and implementation

process.

6. Assist decision making.

 Critical Path Analysis (CPA): The Process
1. The project must be broken down into specific activities.

2. Each activity is sequenced based on its importance, relevance and

the support it gives to other activities.

3. Each activity is assigned a duration from which the Earliest Start

Times and Latest Finish Times can be deduced.

4. The network is drawn.

5. The activities that must be completed to finish the project in the

shortest time is known as the CRITICAL PATH.
 CRITICAL PATH NETWORK DIAGRAM

Earliest Start Time of

following activity (EST)

Latest Finish Time of previous

activity (LFT)

Reference Number of
Node
Earliest Start Time of each activity: The earliest time an activity can begin. This
depends on the duration and order of previous activities.

Latest Finishing Time of each activity: The latest time an activity must finish so
that the entire project can finish within minimum duration time.

Minimum Duration of the project: The earliest time a project may finish, given
the order and duration of all activities.
 Constructing the Critical Path Analysis Network

Node: Denotes the start Arrow: Denotes an Denotes the critical path
and finish of each activity which has – activities which are
activity a duration important to the
completion of the project

When constructing the network diagram, always start with a node to

indicate the start of an activity, followed by an arrow to denote the activity
and its duration. Construction of the diagram starts from left to right.
Every network diagram must end with a node to show the completion of an
activity and the project.

A D
C
 Constructing the Critical Path Analysis Network

An example:
B
4
A D
C
5 8
3

The diagram above shows A begins on its own, then B and C can begin once
A is finished. D may start once C is completed.
The project will be completed once B and D are completed.
 Critical Path Analysis Network Diagram

D
A
E
B
C

A and B begin together, C follows B, D follows A and E follows C and D.

 Class Activity

From the following information construct a CPA Network

Activity Description Preceded by Duration

A Send out invitations - 7

and wait or replies
B Research and book A 2
suitable venue based
on numbers
C Book entertainment B 5
(music and awards
ceremony)
D Order wines and cake B 7
for delivery
E Set up hall and stage C,D 3
for the party
 Question
From the following information construct a CPA Network

Activity Description Preceded by Duration

A Order and deliver - 8

component A
B Order and deliver - 5
component B
C Record sales/purchase - 1
on spreadsheet
D Receive and check all A,B 2
components
E Manufacture stage 1 D 6

F Sub - assembly 1 D 8

G Manufacture stage 2 E 3

H Dispatch to customer F,G 1

Node 1: EST of first three activities is 0. Node 5: EST of F is 10 days, + duration of F
Node 2: EST of D = 8 days is 18, but EST of G is 16 days + duration of
ANSWER G (3) which means H cannot take place
until 19, that is, until the latest of both G
Node 3: EST of D + duration of D gives the and F.
EST of E and F as 10 days Node 6: H and C takes 1 day which means
that the earliest time the project can finish
is 20 days.
Node 4: EST of E is 10 days, + duration of
E means EST of G is 16 days.
16 G
E 4 3
16
6
A
19 20
8 D 10 H
8 3 5 6
2 F 19 1 20
2 10
8
8
0
1
0 B
5

C
1
The LFT on Node 5 = 19 days.
Node 4: 19 – duration of G (3) = 16 days.
ANSWER FINDING THE LFT
Node 3: LFT of E = 16 – 6 = 10 days. Then
there is 19 – duration of F (8) = 11 days, so the
lower of the two numbers is the LFT of D.
Node 2: 10 – 2 = 8.
Node 1: This must be zero, that is the lower of
8-8 = 0
16 G
E 4 3
16
6
A 19 20
8 D 10 H
8 3 5 6
2 F 19 1 20
2 10
8
8
0
1
0 B
5

C
1

Note: If the project is to finish within 20 days, activity H must finish

within 20 days, so activities F and G must finish by day 19
 The Use of Dummy Activity

Dummy Activity – is a logical dependence between two indirectly linked tasks. It

is used to prevent any illogical path from being followed. A dotted arrow to used
to represent a dummy activity.

For example, if a project is made up of four tasks – A,B, C and D. Assume C

cannot start until tasks A and B have been completed. The network diagram will
look like the one below:

C
A

D
B
 The Use of Dummy Activity

However, the diagram also shows that D is dependent on the completion of A &
B, yet it is not a requirement. D is dependent on Activity B.
To illustrate this dependency on only B a dummy activity is inserted to show that
D is only dependent on B.

A C

D
Dummy activities do not
use up any time – they
always have a time duration
of zero.
 CALCULATING THE FLOAT
The float identifies any activities which can be delayed without affecting the
deadline.

Calculating float allows managers to consider how best to use limited resources
and time.

The Total Float: the amount of spare time available without causing a delay
to the overall project.

Calculation of Total Float:

*Total Float = LFT (of the next activity) – Duration – EST (of this activity)
Calculating the Float Using the Diagrammatic Version

1 8
2 3
7
3 10

Total Float = LFT – Duration – EST

10 – 7 – 1 = 2

Interpretation: The amount of delay available on this activity

which does not delay the project’s duration is 2 days
 Question
From the CPA network below determine the Total Float of Each Activity

16 G
E 4 3
16
6
A 19 20
8 D 10 H
8 3 5 6
2 F 19 1 20
2 10
8
8
0
1
0 B
5

C
1
 Answers
Activity LFT - Duration - EST = Total Float

A 8 8 0 0
B 8 5 0 3
C 20 1 0 19
D 10 2 8 0
E 16 6 10 0
F 19 8 10 1
G 19 3 16 0
H 20 1 19 0

Note: A,D,E,G,H represents the Critical Path - This means there can be no delays between
completing the proceeding tasks and starting the next one on this path without prolonging the total
time of the project.
 Question
From the CPA network below map the Critical Path

16 G
E 4 3
16
6
A 19 20
8 D 10 H
8 3 5 6
2 F 19 1 20
10
8 2
8
0
1
0 B
5

C
1
 The Free Float
This represent the amount of delay available on each activity which does not
delay the EST of the next activity.

Calculation of the Free Float

Free Float = EST at the end – Duration – EST at the beginning

(of the next activity) (of this activity)

10
6
3
 Question
From the CPA network below determine the Free Float of Each Activity

16 G
E 4 3
16
6
A 19 20
8 D 10 H
8 3 5 6
2 F 19 1 20
2 10
8
8
00
1
0 B
5

C
1
 Answers
Activity EST (at end) - Duration - EST (at = Free Float
beginning)
A 8 8 0 0
B 8 5 0 3
C 20 1 0 19
D 10 2 8 0
E 16 6 10 0
F 19 8 10 1
G 19 3 16 0
H 20 1 19 0

Note: Free float tends to be more appropriate when the delivery of materials must be on
time or when labour is involved in other activities and cannot be moved on to another
job. For example, F can be delayed by 1 day and H will still be able to commence on time
EVALUATE THE VALUE OF NETWORKS IN THE
MANAGEMENT OF PROJECTS
 EVALUATE THE VALUE OF NETWORKS IN THE
MANAGEMENT OF PROJECTS

▪ Reduce time lost between ▪ The network diagram alone will

tasks not guarantee the smooth
completion of the project.
▪ Encourages forward
planning. ▪ Some projects are huge and the
network diagrams may become
▪ Improves efficiency in complex and unmanageable.
production.
▪ The diagram will only be correct
▪ Controls cash-flow and helpful if the data used is
accurate and reliable.