An

Introduction
to
Project Management
&
Microsoft Project & Primavera
Basic Concepts
 Basic Concepts

What is a Project ???

Unique, one-time event

Specific start and end dates
Work scope with definable tasks
Allocated resources
Projected budget or cost
Tangible set of deliverables
Challenges in Project Management
Challenges to project management in executing one off multi-
disciplinary projects are different from those encountered in
production planning.

Regular Production line Projects

Same environment Different environment

Same people Different people
Same product Different product
Same technique Different technique
Basic Terminologies
 Basic Terminologies

Activity:
Activities represent work to be done in order to
complete a project.

OD (Original Duration) and RD (Remaining

Duration):
The estimated time required to complete an activity is
called OD. The amount of time left to complete an
activity after it has started is known as RD (Remaining
Duration).
 Basic Terminologies
Predecessor:
The activity that effects start or finish dates of
other activities (successor activities).

Predecessor

Successor
 Basic Terminologies
Successor:
The activity for which start or finish dates are dependent
on other activities (predecessor activities).

Predecessor

Successor
 Basic Terminologies
Relationship:
Any sort of connection between two activities is
known as relationship.
Generally there are four types of relationships:
SS (Start to Start)
FS (Finish to Start)
FF (Finish to Finish)
SF (Start to Finish)
 Basic Terminologies

Lag :
Lag staggers or delays the relationship of one activity
(predecessor) to another (successor).
 Basic Terminologies
SS Relationship between activities in which the start
of a successor activity depends on the start of its
predecessor.
A
Predecessor
Start-to-start
B
Successor

A
Start-to-start with lag Predecessor

Lag B
Successor
 Basic Terminologies
FS Relationship in which the start of successor
activity depends on the completion of its predecessor
activity.

Finish-to-start A
Predecessor

B
Successor

Finish-to-start with lag A

Predecessor
B
Successor
 Basic Terminologies
FF Relationship in which the finish of successor
activity depends on the finish of its predecessor activity.

Finish-to-Finish A
Predecessor

B
Successor

Finish-to-Finish with lag A

Predecessor
Lag
B
Successor
 Basic Terminologies
SF Relationship in which the finish of successor
activity depends on the start of its predecessor activity.

Start-to-Finish A
Predecessor

B
Successor

A
Start-to-Finish with lag Predecessor

Lag
B
Successor
 Basic Terminologies

ES (Early Start) and EF (Early Finish) dates:

Earliest possible date by which an activity can be started /
finished.

LS (Late Start) and LF (Late Finish) dates:

Latest possible date by which an activity can be started /
finished.
 Basic Terminologies

AS (Actual Start) and AF (Actual Finish) dates:

Actual Start and Actual Finish dates are the dates on which
an activity has actually started and finished.
 Basic Terminologies
TF (Total Float):
Duration, measured in planning units, the activity can be delayed
without affecting the project finish date.

Negative or zero Total Float indicates that timely completion of

the activity is critical to the completion of the project. Such
activities are called Critical Activities.

FF (Free Float):
The amount of time, measured in planning units, the early start
of an activity can be delayed without delaying early start of a
successor activity. Such activities are called Non-critical
Activities.
 Basic Terminologies
Constraints:
Constraints are ground realities that over-rule the logical
start and finish time of the activity.

For example: A certain piece of equipment will be received on,

say, 25th of March. That equipments erection activity cannot be
started before 26th of March irrespective of the fact that the
foundation will be ready by 15th of March.

So we will simply put a constraint to this activity that it cannot

start before 26th of March. Similarly concreting work cannot be
easily done in winter months in regions where temperature goes
below freezing during winter.
 Basic Terminologies
Various types of constraints can be used but most
commonly used are as follows:
Start No Earlier Than - This type of constraint is applied
to restrict that activity to start before a certain date
Start No Later Than - This type of constraint is applied to
restrict that activity from starting beyond a certain date
Finish No Earlier Than - This type of constraint is applied to restrict
that activity to finish before a certain date.
Finish No Later Than - This type of constraint is applied to restrict
that activity to finish beyond a certain date.
Start On - To impose a compulsory start date to that activity.
Finish On - To impose a compulsory finish to that activity.
 Basic Terminologies
Critical Activity:
An activity that has potential of delaying a project is called a critical
activity. Such activities possess total float equal to zero or even less.

Critical Path:
Chain of critical activities that has potential of delaying a
project is called Critical Path.

Critical Path Method (CPM):

A network analysis technique used to predict project duration, by
analyzing which sequence of activities (which path) has the least
amount of scheduling flexibility (the least amount of float).
 Basic Terminologies
Critical Path
A
Predecessor
ES = 1 EF = 10
FS Lag=0
OD = 10 C

Successor

B FS Lag = 0 ES=15 OD=6 EF=20

Predecessor

ES=1 OD=14 EF=14

Activity B and C are on critical path because :

1. These are forming the longest chain (14 days + 6 days = 20 days)
2. Any delay in any of the activity on critical path will cause a delay of the whole project
 Basic Terminologies
Scheduling:
The process of calculating start and end dates of the activities.
This process is carried out in two passes i.e. Forward Pass &
Backward Pass.

Forward Pass:
The process of calculating start and finish dates of each activity
starting from the project start date.
This process generates early start and early finish
dates for each activity.
 Basic Terminologies
Backward Pass:
The process of calculating finish and start dates of each activity
starting from the project finish date.
This process generates Late Start and Late Finish
dates for each activity.

Data Date:
The point in time that separates actual (Historical) data
from future (Scheduled) data.
 Basic Terminologies
Man-Hours:
It is yardstick for measurement of effort. For example, 4
Man-Hour will mean any of the following:
1 man working for 4 hours
2 men working for 2 hours
4 men working for 1 hour

Standard Man-Hours:
Estimated effort per unit required to perform a job in terms
of man-hours.
 Basic Terminologies
Earned / Achieved Man-Hours:
It is amount of work executed in terms of standard man-
hours.

Project / Budgeted Man-Hours:

Total number of man-hours required to execute a project.

Actual Man-Hours:
It is the man-hours actually utilized to execute work.
 Basic Terminologies
Original (Target / Base Line) Plan:
A plan showing all activities as foreseen at start of the project.

Latest Forecast Plan:

Revised / Updated Plan showing expected dates for balance activities
at certain point in time during project life span.

Efficiency:
It is the ratio of earned man-hours to actual man-hours.

Productivity:
It is number of work units produced per man-hour spent.
 Basic Terminologies
Budgeted Cost:
Total estimated cost approved for execution of a project.

Cost at Completion:
The expected total cost at completion of an activity or a
project.
Cost at completion is estimated periodically during course
of project execution.
 Basic Terminologies
Program Evaluation and Review Technique (PERT):
An event oriented network analysis technique used to estimate
project duration when there is a higher degree of uncertainty with
the individual activity duration estimates. PERT applies the Critical
Path Method (CPM) to a weighted average duration estimates.

Gantt Chart:
A graphic display of schedule-related information listing project
elements on left side of the chart, dates across the top and activity
durations are shown as date-placed horizontal bars. It is also known
as Bar Chart.
PERT
GANTT
 Basic Terminologies
Cost Center:
Cost Center is the lowest identifiable/measurable activity against
which costs incurred can be booked.

Direct Cost:
Cost which can be clearly attributed to the activity performed is know
as Direct Cost. That cost is also called Variable Cost because it is
dependent on quantity of work performed.

Indirect Cost:
Cost which cannot be clearly attributed to specific activity is know as
indirect cost . It is also known as Fixed Cost because these are
incurred irrespective of the quantity of the work performed.
 Basic Terminologies

Resource:

Anything that is required to perform an activity is called a

resource

Resources can be Manpower, Equipment and Materials

Project Management
 Objectives of Project Management

Timely completion of the Project

Budgetary Control so as to complete the Project within the
budgetary provisions established by the Company.
Ensure quality of works as required under the Contract.
Maintain established standards of Health, Safety and
Environment at the work places.
 Dependency Cycle

Engineering Procurement Construction

Excellent communication between each phase is extremely important

Project Management Cycle
Plan Organize

Control Direct
Project Management Phases
Two Phases of Project Management:

Planning
Control
 Planning
Identify activities to be done
Identify milestones
Define WBS and OBS
Decide/calculate duration of activities
Decide sequence of activities
Decide resources
Prepare cost budget
 Work Breakdown Structure
Breaking down a long and complex project into work
packages of smaller duration and complexity.

A properly planned WBS delivers the following benefits:

The project can be planned systematically
Resources can be effectively scheduled
Work teams can be assigned responsibilities
Costs and budget elements can be compared
 Work Breakdown Structure

1. Project

1.1 Construction

1.1.1 Discipline

1.1.1.1 Zone/Area

1.1.1.1.1 Cost Center/Activity

Organization Breakdown Structure
Represents a project organization structure that matches
with WBS.

Facilitates better control through mini projects within large

and complicated projects.

Defines responsibility for each level of WBS.

 Organization Breakdown Structure

PROJECT/SITE MANAGER

AREA I/C #1 AREA I/C #2 AREA I/C

Const. Mngr. Engr. Civil Engr. Civil

Engr. Civil
- Civil (area #1)

Const. Mngr. Engr. Piping Engr. Piping

Engr. Piping
- Mech. (

Const. Mngr. Engr. Equip. Engr. Equip. Engr. Equip.

- Elec.
 LEVELS OF PLAN

LEVEL - 1 PLAN:
Sequence of major phases e.g., E, P & C inter-phase, or
Civil, Mechanical & Electrical sequences.
LEVEL-1 PLAN
 LEVELS OF PLAN

LEVEL 2 PLAN:
Breaks major phases into geographic distribution (Zone/Area)
and/or disciplines e.g., Piping, Structure, Foundation, etc.
LEVEL-2 PLAN
 LEVELS OF PLAN

LEVEL - 3 PLAN:
Breaks all discipline activities into Cost Centers
LEVEL-3 PLAN
 LEVELS OF PLAN

LEVEL - 4 PLAN:
Further breaks down work into smaller activities e.g.,
material withdrawals from stores, layout, tacking, welding,
Q.C checks, etc.
LEVEL-4 PLAN
Resource Allocation & Leveling

Resources required may include:

Manpower
Tools & Plants
Direct materials
Consumables
Special jigs & fixtures
Resource Allocation & Leveling

Resource requirement should be a smooth curve i.e. ;

gradual increase till it reaches its peak, maintains peak for
required period and then gradually decrease till project is
completed.

Resource Leveling is done in P3.

 Definition of Maintenance:
All actions which have the objective of retaining or
restoring an item in or to a state in which it can perform its
required function. These actions include combination of all
technical and corresponding administrative, managerial &
supervision activities

Types of Maintenance:
i. Corrective Maintenance
ii. Preventive Maintenance
Corrective Maintenance:
Type of maintenance where equipment is maintained after break
down. This maintenance is often expensive because worn equipment
can damage other parts & cause multi damages

Preventive Maintenance:
Where equipment is maintained before breakdown occurs.
This type has many variations & is subject of various researches to
determine best & most efficient way to maintain equipment. Recent
studies have shown that preventive maintenance is effective in
preventing age related failures of equipment