ASSIGNMENT 3

PROJECT MANAGEMENT

Yogvardhan Kothari 22BBAN329

Case Study Overview:

You are managing the construction of a small office building. The project involves several
key activities such as site preparation, foundation laying, structural framing, electrical
wiring, and finishing touches. You are tasked with developing a timeline using PERT and
CPM to ensure timely project completion.

Assignment Questions:

1. Understanding PERT & CPM: Based on the case study, explain the
key differences between PERT and CPM. Which technique would be
more suitable for a project where time estimates for activities are
uncertain, and why?
Ans. The Program Evaluation and Review Technique (PERT) and the Critical Path Method
(CPM) are both project management tools used for planning, scheduling, and controlling
complex projects. Here are the key differences between them:

1. Nature of Time Estimates:

o PERT: Uses probabilistic time estimates, which means it considers variability
in the time required for each task. PERT is often used when there is
uncertainty in activity durations. It uses three time estimates for each activity:
optimistic, pessimistic, and most likely, to calculate an expected duration.
o CPM: Uses deterministic time estimates, assuming that the time required for
each activity is known and constant. It typically involves a single estimated
duration for each task, which works well for projects where time estimates are
more predictable and less variable.
2. Focus:
o PERT: Primarily focuses on time management and is used in research and
development projects where timeframes are uncertain.
o CPM: Focuses on both time and cost management. CPM is commonly used in
construction projects where time and costs are critical factors.
3. Application:
o PERT: Suitable for projects with high uncertainty and risk, where activity
durations are not well defined (e.g., research and development).
o CPM: Better suited for projects where activity durations can be estimated with
confidence and where cost optimization is a priority (e.g., construction
projects).
Suitable Technique for Projects with Uncertain Time Estimates

For a project where time estimates for activities are uncertain, PERT would be more
suitable. This is because PERT allows for variability by using a range of estimates
(optimistic, pessimistic, and most likely), which helps project managers account for
uncertainty and make more informed scheduling decisions. PERT’s probabilistic approach is
specifically designed to handle projects where time estimates are not definitive, providing a
more realistic overview of potential project timelines.

2. Developing a Network Diagram: Using the case study activities (site

preparation, foundation laying, structural framing, electrical wiring, finishing
touches), create a basic network diagram to represent the project schedule.
Identify the dependencies between activities and explain why these
dependencies are important for scheduling.

Ans. To create a network diagram for this project, we’ll use the listed activities
and identify the dependencies between them. Each activity must be completed
in a particular order due to the nature of construction work. Here’s a
breakdown:

1. Site Preparation (Activity A): This is the initial stage of the project. It involves
clearing the land, leveling, and ensuring the ground is ready for construction. No other
activity can start until site preparation is complete.
2. Foundation Laying (Activity B): After the site is prepared, the foundation can be
laid. The foundation is essential for supporting the structural framing, so it must
follow the completion of site preparation.
3. Structural Framing (Activity C): Once the foundation is in place, the framework or
skeleton of the building can be erected. This activity depends on the foundation being
set and stable, as it forms the base for the entire structure.
4. Electrical Wiring (Activity D): Electrical wiring typically follows structural framing.
While it could start during or after the framing process in some projects, wiring is best
done once there’s a clear frame, so wires can be integrated without obstruction.
5. Finishing Touches (Activity E): This final stage involves painting, installation of
fixtures, and other last details. It can only begin after the structural framing and
electrical wiring are complete.

Network Diagram

Here’s a basic sequence of these activities in a network diagram, using the dependency
notation where each activity is represented by a node, and dependencies are shown with
arrows:

A --> B --> C --> D --> E

Each arrow indicates that the preceding activity must be completed before the next can begin.
Here’s how each dependency is outlined:
  Site Preparation (A) → Foundation Laying (B): Site preparation must be
completed for foundation laying to begin, as the land needs to be cleared and ready
for construction.
 Foundation Laying (B) → Structural Framing (C): The foundation provides
stability for framing, so structural framing depends on the foundation being complete.
 Structural Framing (C) → Electrical Wiring (D): Wiring is typically added once
the frame is in place, so there’s structure for the wiring to be installed correctly.
 Electrical Wiring (D) → Finishing Touches (E): Finishing touches can only start
once all prior activities, especially those affecting walls or fixtures, are complete.

Importance of Dependencies for Scheduling

These dependencies ensure that the project follows a logical order, reducing risks of rework,
safety hazards, or delays. For example:

 Safety: If structural framing starts before the foundation is properly laid, the entire
structure could be unstable.
 Efficiency: Dependencies prevent delays by ensuring that activities are sequenced for
optimal workflow. Finishing touches, for example, must wait until wiring is complete
to avoid potential rework.
 Resource Allocation: Scheduling activities with clear dependencies helps in planning
resources efficiently, minimizing idle time for teams working on each stage.

This structured order helps maintain control over the project timeline and ensures each step
builds logically on the previous one, aligning with project goals.

3. Critical Path Identification: Using CPM, identify the critical path in the
project from the case study. What is the significance of the critical path, and
how does it affect the total duration of the project?

Ans. To identify the critical path in this project using the Critical Path Method (CPM), we’ll
examine the sequence of activities from start to finish, determine the longest path through the
network, and see how this path dictates the total project duration.

Case Study Activities and Estimated Durations

Let’s assume estimated durations for each activity as follows:

 Site Preparation (Activity A): 5 days

 Foundation Laying (Activity B): 10 days
 Structural Framing (Activity C): 15 days
 Electrical Wiring (Activity D): 7 days
 Finishing Touches (Activity E): 3 days

Network Diagram with Durations

The sequence and dependencies remain as:

A (5) --> B (10) --> C (15) --> D (7) --> E (3)

Each activity’s duration is shown in parentheses. The path through all activities is sequential,
so there is only one path:

A→B→C→D→E

To calculate the total duration of this path, we add up each activity’s duration:

5+10+15+7+3= 40 days

Identifying the Critical Path

In this case, there’s only one path from start to finish (A → B → C → D → E). Since it’s the
only path, it’s also the critical path. The critical path is the longest path through the project
network, dictating the minimum time required to complete the entire project.

Significance of the Critical Path

1. Project Duration: The critical path represents the total time needed to complete the
project. Any delay in the critical path activities will directly impact the project’s
completion date. Here, the project duration is 40 days, as determined by the critical
path.
2. Focus for Project Management: Project managers need to prioritize and closely
monitor activities on the critical path. Since these activities have zero slack (no
flexibility in their start and end times), any delay in one of these activities will delay
the entire project.
3. Resource Allocation: Knowing the critical path helps allocate resources efficiently,
ensuring that critical tasks are well-supported to avoid bottlenecks.
4. Risk Management: Understanding the critical path highlights which activities are
most crucial for timely completion. This allows project managers to apply extra
safeguards, such as contingency planning, to prevent delays on these essential
activities.

In this case study, the critical path (A → B → C → D → E) establishes that the project will
take 40 days if all tasks proceed without delays. Any delay in activities on this path will
extend the project’s overall duration.

4. PERT Time Estimates: Assume that some of the activities in the case study
have uncertain durations. For one activity, calculate the expected time using
PERT (given optimistic, most likely, and pessimistic time estimates: 3 weeks, 5
weeks, and 8 weeks). How does this information help in better project planning
and risk management?

Ans. To calculate the expected time for an activity using the Program Evaluation and
Review Technique (PERT), we apply the PERT formula:
Given:

 Optimistic Time (O) = 3 weeks

 Most Likely Time (M) = 5 weeks
 Pessimistic Time (P) = 8 weeks

How This Information Helps in Project Planning and Risk Management

1. More Realistic Scheduling: By considering optimistic, most likely, and pessimistic

scenarios, PERT provides a more nuanced estimate. The expected time (5.17 weeks)
gives a probabilistic view of the activity duration, rather than a single deterministic
estimate. This enables project managers to create schedules that better reflect potential
fluctuations.
2. Risk Identification and Mitigation: PERT highlights the range of possible durations,
allowing project managers to identify high-risk activities with a significant difference
between optimistic and pessimistic estimates. Activities with a large variance might
require closer monitoring or contingency planning to prevent schedule overruns.
3. Resource Allocation: Understanding the variability in activity duration helps
managers allocate resources more effectively. For instance, if an activity has a high
chance of taking longer than the expected time, additional resources can be prepared
to avoid delays.
4. Contingency Planning: PERT provides a basis for calculating potential delays and
integrating buffer time into the project schedule. With a clearer view of the worst-case
duration (8 weeks), managers can decide whether additional time should be added to
the project timeline as a contingency.
By using PERT, project managers can make informed decisions about scheduling, resource
allocation, and risk management, resulting in a more flexible and resilient project plan.