Project management

MUNTAHAMAQBOOL (0001)
NOOR-E-AMINA (0082)
AQSAKHALID(0085)
SHAHIRA SHAHZAD(0083)
GROUP MEMBERS

ACKNOWLEDGEMENT
the project is completed througha lot of effortsand hard-work. We are thankful
to ALLAHto gave us strengthand abilityto completethis project and We would
like to thank “UCP” and ourproject in charge “Prof.FAIZANWAJID”. Last but
not least, we would like to thankour parents for their unconditional support,
bothfinanciallyand emotionallythroughout our semester.

Introduction
Project management is a methodical approach
to planning and guiding project processes from start to finish.
According to the Project Management Institute,
the processes are guided through five stages: initiation, planning, executing,
controlling, and closing.
Project management can be applied to almost any type of project and is widely
used to control the complex processes of software development projects.

PERT
Six stepsof PERT:
• Define the project and all of its significant activities and tasks.
• Develop the relationships between the activities. Decide the predecessors.
• Draw the network.
• Assign time and/or cost estimates to each activity.
• Compute the longest time path through the network ( Critical path).
• Use the network to help plan, schedule, monitor and control the project.

LG-Electronics
The electronics company LG has manufactured industrial vacuum cleaning
systems for many years. Recently a member of the company s new product
research team submitted a report suggesting that the company consider
manufacturing a cordless vacuum cleaner. The new product referred to as Porta-
Vac could contribute to companies expansion into the household market. The time
required to complete the project is 20 weeks given by the management.

STEP1and2:ACTIVITYLISTandIMMEDIATE
PREDECESSORS
This involves identifying the activities that must be performed in the project. An
activity is the job or task that is the part of the project. The time, cost, resources,
requirements, predecessors and person(s) responsible are identified for each
activity.

Immediatepredecessors
Activity Description Immediate Predecessor
A Develop Product design -
B Plan Market research -
C Prepare routing (manufacturing engineering) A
D Build prototype model A
E Prepare marketing brochure A
F Prepare Cost estimates (industrial engineering) C
G Do preliminary product testing D
H Complete market survey B, E
I Prepare pricing and forecasting report H
J Prepare final report F, G, I

Step3:NetworkDiagram
F
Cost Estimates
C
Routing
D
Prototype
G
Testing
E
Marketing
H
Market Survey
I
Pricing and
Forecast
J
Final Report FinishA
Prepare Design
Start
B
Plan Market
Research

StepIV–Activitytimes
OPTIMISTICTIME (a): the minimum activity time if everything progresses ideally.
MOSTPROBABLE TIME(m): the most probable activity time under normal
conditions.
PESSIMISTICTIME(b): the maximum activity time if significant delays are
encountered.

Activity Optimistic (a) Most probable (m) Pessimistic (b)
A 4 5 12
B 1 1.5 5
C 2 3 4
D 3 4 11
E 2 3 4
F 1.5 2 2.5
G 1.5 3 4.5
H 2.5 3.5 7.5
I 1.5 2 2.5
J 1 2 3

Expectedtimesandvariances
Expectedtime(t) = a+4m+b/6
∑2 = (b-a/6)^2
Activity Expected Time (Weeks) Variance
A 6 1.78
B 2 0.44
C 3 0.11
D 5 1.78
E 3 0.11
F 2 0.03
G 3 0.25
H 4 0.69
I 2 0.03
J 2 0.11
Total 32

CriticalPath
The critical path is the longest path route through the network.
This network diagram represents the expected time, earliest start time, earliest
finish time, latest start time and latest finish time for each activity of the project.

Criticalpath
A 6
0 6
0 6
D 5
6 11
7 12
G 3
11 14
12 15
J 2
15 17
15 17
FINISH 0
17 17
17 17
C 3
6 9
10 13
F 2
9 11
13 15
START
0 0
0 0
E 3
6 9
6 9
H 4
9 13
9 13
I 2
13 15
13 15
B 2
0 2
7 9

CRITICALPATH
Activity
Earliest Start (EST) Latest Start (LST) Earliest Finish (EFT)
Latest Finish (LFT)
Slack (LST -
EST)
Critical Path?
A 0 0 6 6 0 Yes
B 0 7 2 9 7
C 6 10 9 13 4
D 6 7 11 12 1
E 6 6 9 9 0 Yes
F 9 13 11 15 4
G 11 12 14 15 1
H 9 9 13 13 0 Yes
I 13 13 15 15 0 Yes
J 15 15 17 17 0 Yes

Probabilityofprojectsompletition
Project variance = ∑
1.78+0.11+0.69+0.03+0.11
=2.72
Project standard deviation = √∑
√2.72
=1.65

Due to the independent activity times we also assume that the total completion time
follows a normal probability distribution. To calculate the z value we apply the following
formula:

Z = Due date – Expected date of completion / Standard deviation
= 20 – 17 /1.65
=1.82
Using Z = 1.82 and the table for the normal distribution , we find that the probability of the
project meeting the 20-weeks deadline = 0.9656 which is 96%. Thus, even though activity
time variability may cause the completion time to exceed 17-weeks calculations indicate an
excellent chance that the project will be completed before the 20-week deadline.

Budgeting
Activity predecesso
r
T EST LST Budget/Week(Rs
)
A - 6 0 0 3000/6=500
B - 2 0 7 1000/2=500
C A 3 6 10 3000/3=1000
D A 5 6 7 5500/5=1100
E A 3 6 6 1800/3=600
F C 2 9 13 2000/2=1000
G D 3 11 12 6000/3=2000
H B, E 4 9 9 5000/4=1250
I H 2 13 13 1000/2=500
J F, G, I 2 15 15 4000/2=2000

Monitoringandcontrollingbudgetcost
ACTIVITY TOTAL
BUDGETE
D COST
($)
PERCENTA
GE
COMPLETI
ON
VALUE OF
WORK
COMPLET
ED ($)
ACTUAL
COST ($)
ACTIVITY
DIFFEREN
CE ($)
A 3000 1000 3000 3300 -300
B 1000 100 1000 1600 600
C 3000 100 3000 3000 0
D 5500 100 5500 5700 200
E 1800 100 1800 1800 0
F 2000 10 200 400 200
G 6000 20 1200 1000 -200
H 5000 20 1000 800 -200
I 1000 0 0 0 0
J 4000 0 0 0 0
Total 32300 16700 17600 300

Value of work completed : (percentage of work completed)*(Total activity budget)
The activity difference is also of interest.
Activity difference = actual cost-value of work completed
If the activity difference is negative there is a cost underrun (i.e A,G,H) and if the
difference is positive there is a cost over run (B,D,F).
Monitoring and controlling budget cost

What this PERT analysis was able to provide?
The project’s expected completion time is 17 weeks.
We find the probability that the project meeting the 20 weeks deadline is 96%.
There are 5 critical paths (A,E,H,I,J).
A detailed schedule of activities starting and ending times has been made.
CONCLUSION

Project management

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