Module 1: Project Management - Tools, Functions, and Activities

1. What is Project Management?

Project Management involves planning, organizing, and managing resources to achieve specific goals
within a defined timeline. It focuses on completing a project efficiently, meeting the quality
standards, staying within budget, and satisfying stakeholders.

2. Functions of Project Management

Function Description

Planning Defining project goals, scope, resources, timeline, and budget.

Organizing Structuring the team, assigning roles, responsibilities, and coordinating activities.

Leading Motivating and managing the project team to ensure goals are met.

Monitoring progress, managing changes, solving problems, and ensuring project stays on
Controlling
track.

Closing Finalizing all activities, delivering the product, and evaluating project performance.

3. Key Project Management Activities

Activity Description

Project Initiation Defining the project at a broad level and getting approval.

Clearly defining and managing all the work required for project
Scope Management
completion.

Time Management Scheduling activities to ensure timely completion.

Cost Management Planning and controlling the budget of the project.

Quality Management Ensuring the project meets required standards.

Human Resource
Organizing and managing the project team.
Management

Communication Management Sharing project information effectively with stakeholders.

Risk Management Identifying, analyzing, and responding to project risks.

Procurement Management Acquiring goods and services from external suppliers.

Managing the expectations and impact of stakeholders on the

Stakeholder Management
project.

4. Project Management Tools

Tool Purpose Examples

Visual timeline for project tasks and Microsoft Project,

Gantt Chart
deadlines. Smartsheet

PERT Chart (Program Evaluation

Analyzing tasks to complete a project. Lucidchart, SmartDraw
and Review Technique)

Identifying the longest path of planned

Critical Path Method (CPM) Primavera, MS Project
activities to the end of the project.

Breaking down project deliverables into WBS Schedule Pro,

Work Breakdown Structure (WBS)
manageable sections. MindView

Managing workflow and visualizing work

Kanban Boards Trello, Jira
stages.

Integrating multiple tools for project Asana, Monday.com,

Project Management Software
planning, scheduling, tracking. ClickUp

RiskWatch, Active Risk

Risk Management Tools Identifying and managing project risks.
Manager

Budgeting Tools Tracking project expenses and resources. SAP, Oracle Financials

Resource Allocation Tools Managing project team workload. Resource Guru, Float

5. Importance of Using Tools and Functions

 Improves Efficiency: Automates and simplifies complex tasks.

 Better Communication: Keeps all stakeholders informed.

 Enhanced Tracking: Helps monitor progress against goals.

 Effective Risk Management: Identifies problems early.

 Cost Control: Keeps the project within the allocated budget.

 Timely Delivery: Helps ensure deadlines are met.

 Quality Assurance: Maintains the standards expected by stakeholders.

6. Example: Project Management Process Flow

1. Initiation

o Create project charter

o Identify stakeholders

2. Planning

o Develop project management plan

 o Define scope, schedule, and budget

3. Execution

o Perform tasks

o Manage teams

o Communicate with stakeholders

4. Monitoring and Controlling

o Track progress

o Manage changes

o Ensure quality

5. Closing

o Obtain stakeholder approval

o Release resources

o Document lessons learned

Module 2: Project Selection Management

1. Project Selection Management

Project selection management involves choosing the best project to undertake among alternatives
based on strategic fit, feasibility, and resource availability.

Purpose:

 Ensure efficient use of resources

 Align projects with organizational goals

 Maximize value creation

 2. Feasibility Study
 Before selecting a project, a feasibility study evaluates if the project is technically
possible, financially viable, and legally permissible.
 Types of Feasibility:

Type Description
Technical Feasibility Can we build it? (Technology, equipment, skills)
Economic Feasibility Is it financially viable? (Cost-benefit analysis)
Operational Feasibility Will it work in the organization? (User acceptance)
Legal Feasibility Are there any legal issues? (Regulations, licenses)
Schedule Feasibility Can it be completed within the timeline?

3. Project Selection Checkpoints

Checkpoints are milestones where decisions are made whether to continue, modify, or terminate a
project.

Major Checkpoints:

 After feasibility study

 After prototype development

 After financial analysis

 After market testing

 Before final investment

Purpose:
To minimize risks by periodically reassessing the project’s viability.

4. Project Management Life Cycle

The Project Life Cycle consists of phases from project initiation to closure:

Phase Activities

Initiation Define the project at a high level, create project charter

Planning Detailed scope, budget, schedule, resource planning

Execution Perform the work, manage teams and stakeholders

Monitoring and Controlling Track progress, manage risks, control changes

Closing Finalize project, handover deliverables, lessons learned

Each phase has its own entry and exit criteria, often linked to selection checkpoints.

5. Financial Analysis Tools

Financial metrics are crucial for project evaluation and comparison:

5.1 Net Present Value (NPV)

 NPV = Present value of cash inflows - Present value of cash outflows

 Decision Rule:

o NPV > 0 → Accept the project

o NPV < 0 → Reject the project

NPV helps measure the profitability considering the time value of money.

5.2 Return on Investment (ROI)

  ROI = (Net Profit / Investment Cost) × 100

 Measures the percentage return on investment.

 Higher ROI indicates a more desirable project.

5.3 Internal Rate of Return (IRR)

 IRR is the discount rate that makes the NPV of a project zero.

 Decision Rule:

o IRR > required rate of return → Accept the project

o IRR < required rate of return → Reject the project

IRR shows the efficiency or quality of an investment.

6. Development Productivity Index (DPI)

Definition:
DPI is used to assess project value creation efficiency.

 DPI = (Net Present Value of Future Benefits) / (Present Value of Development Costs)

Interpretation:

 DPI > 1: Project is creating value.

 DPI < 1: Project is destroying value.

DPI is particularly important for R&D and technology projects where costs are upfront, and benefits
come later.

7. Screening Process

Screening is the preliminary filtering of projects before detailed evaluation.

Steps in Screening:

1. Identify Potential Projects: Gather ideas from various sources.

2. Define Screening Criteria: Example: alignment with strategy, financial viability, technical
feasibility.

3. Score and Rank Projects: Assign weights to criteria and calculate scores.

4. Shortlist: Choose top-ranked projects for detailed analysis.

Common Screening Techniques:

 Scoring Models

 Checklists
  Comparative Matrices

 SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

 Module 3: Project Management

Methodology
1. Project Management Methodology

A Project Management Methodology is a structured framework that guides how a project is

planned, executed, and completed.

Common Methodologies:

Methodology Description

Waterfall Sequential, step-by-step process. Suitable for well-defined projects.

Iterative and incremental. Ideal for projects needing flexibility (e.g., software
Agile
development).

PRINCE2 Process-driven method emphasizing organization and control.

PMBOK Standard set of best practices by PMI (Project Management Institute).

Scrum Agile-based framework for complex, adaptive projects.

Key Features of Methodologies:

 Defined roles and responsibilities

 Clear phases (initiation, planning, execution, monitoring, closing)

 Standardized documentation

 Risk and quality management processes

2. Project Appraisal

Project Appraisal is the evaluation of a project's viability before significant resources are committed.

Types of Appraisal:

Type Purpose

Technical Appraisal Evaluates whether the technology and methods are feasible and reliable.

Financial Appraisal Assesses the financial viability (costs, revenues, profitability).

Economic Appraisal Examines the broader economic impact, including societal benefits.

Market Appraisal Studies demand, competition, and marketing feasibility.

Environmental Appraisal Considers environmental regulations and sustainability impact.

Type Purpose

Objective:
Minimize risks and ensure successful project outcomes.

3. Feasibility Reporting

A Feasibility Report is the formal documentation of the feasibility study findings.

Structure of Feasibility Report:

1. Executive Summary: Quick overview of findings

2. Project Description: Objectives, scope, deliverables

3. Technical Feasibility: Technology, resources, and operational readiness

4. Financial Feasibility: Cost estimates, funding needs, revenue projections

5. Legal and Environmental Feasibility: Compliance with laws and environmental standards

6. Risk Analysis: Major project risks and mitigation plans

7. Recommendations: Go/No-Go decision

Importance:
Provides stakeholders with reliable information for decision-making.

4. Final Project Report (Including P&I Appraisal)

The Final Project Report documents the project's complete lifecycle and performance after
completion.

Contents of a Final Project Report:

Section Details

Project Summary Objectives, scope, and background

Execution Summary Timeline, milestones, achievements

Technical Performance Technology used, problems faced, innovations

Financial Performance Budget vs actual costs, profitability

Risk Management Risks encountered and how they were managed

Lessons Learned Successes and areas of improvement

Recommendations For future projects

P&I Appraisal (Production & Investment Appraisal)

  Production Appraisal:
Reviews the actual production performance compared to the planned output. Focuses on
capacity utilization, productivity, and efficiency.

 Investment Appraisal:
Evaluates whether the financial returns justify the investments made using metrics like NPV,
ROI, IRR.

5. Technical Analysis

Technical Analysis is a deep study of the technical feasibility and requirements of the project.

Focus Areas:

 Technology Selection: Best fit for the project goals

 Process Design: Efficient production or operational processes

 Capacity Planning: Optimal use of resources

 Location Analysis: Ideal site for operations

 Plant and Equipment: Selection, procurement, and installation

 Implementation Plan: Timeline and stages of technology deployment

Objective:
Ensure that the technical setup is sustainable, scalable, and cost-effective.

6. Financial Analysis

Financial Analysis helps determine if the project is financially viable and sustainable.

Key Techniques:

Technique Purpose

Cost Estimation Calculate project expenses accurately.

Revenue Forecasting Predict income streams.

Break-even Analysis Identify the point where revenues = costs.

NPV Analysis Determine project profitability by discounting cash flows.

IRR Analysis Find the project's expected rate of return.

ROI Calculation Measure return relative to investment cost.

Sensitivity Analysis See how changes in assumptions affect outcomes.

Payback Period Time it takes to recover initial investment.

Objective:
Provide a clear picture of risks, returns, and financial sustainability.

Module 4: Project Planning and Scheduling

1. Project Planning and Scheduling

Project Planning is the process of defining project scope, objectives, and steps necessary to deliver
results.

Project Scheduling involves creating a detailed timeline of tasks and activities to ensure the project
finishes on time.

Main Goals:

 Identify tasks

 Sequence tasks

 Allocate resources

 Estimate time and cost

 Monitor and control execution

2. Network Analysis

Network Analysis is a technique used for planning and managing projects by visualizing tasks and
their dependencies.

Key Components:

 Nodes: Represent activities/events

 Arrows: Show dependencies (order of activities)

Uses:

 Identify critical paths

 Optimize timelines

 Manage risks

3. Critical Path Method (CPM)

CPM is a step-by-step project management technique for scheduling project activities.

Key Features:

 Focuses on the longest sequence of dependent tasks (Critical Path).

 Determines minimum project duration.

 Highlights tasks that cannot be delayed without affecting the project end date.

Steps to Create a CPM Chart:

 1. List all activities

2. Identify dependencies

3. Estimate activity durations

4. Create the network diagram

5. Identify the critical path

6. Update CPM as project progresses

Critical Path = Path with the longest total duration.

4. Program Evaluation and Review Technique (PERT)

PERT is a statistical tool used for planning uncertain activities in a project.

Key Features:

 Useful for projects with unpredictable task durations.

 Estimates three types of time:

o Optimistic Time (O): Minimum time required

o Pessimistic Time (P): Maximum time required

o Most Likely Time (M): Best estimate

PERT Formula:

Expected Time (TE) = (O + 4M + P) / 6

Purpose:

 Find probable completion time

 Analyze risk and variability

5. Crashing and Resource Optimization

Crashing

 Definition:
Crashing involves reducing project duration by adding more resources to critical tasks.

 When to use:

o Tight deadlines

o Penalty costs for delays

 Approach:

o Identify activities on the critical path

 o Add resources or overtime

o Recalculate new critical path

Note: Crashing increases costs but saves time.

Resource Optimization

Goal:
Balance resources (manpower, equipment) across project activities to avoid overloads or idling.

Two Techniques:

Technique Description

Adjusting start and end dates to balance resource demand without affecting the
Resource Leveling
critical path.

Resource Adjusting activities within their float/slack to optimize resource usage without
Smoothing changing the project end date.

6. Project Work Breakdown Structure (WBS)

Work Breakdown Structure (WBS) is a hierarchical decomposition of the total scope of work into
manageable tasks.

Components of WBS:

Level Example

Functions Broad areas of work (e.g., Engineering, Procurement, Construction)

Activities Major work packages within functions (e.g., Design system architecture)

Tasks Smaller units of work (e.g., Create technical drawings)

Features:

 Each lower level represents an increasingly detailed definition of the project work.

 Helps with accurate time and cost estimation.

 Basis for scheduling, costing, and resource allocation.

7. Project Cost Estimation

Cost Estimation is predicting the financial resources required to complete the project.

Major Types:

Type Description

Analogous Estimating Based on similar past projects

Type Description

Parametric Estimating Using statistical models (e.g., cost per square foot)

Bottom-Up Estimating Estimating costs of individual tasks and summing them up

Three-Point Estimating Using optimistic, pessimistic, and most likely costs (similar to PERT for time)

Key Cost Components:

 Direct Costs: Salaries, materials, equipment

 Indirect Costs: Overheads, administration

 Contingency Costs: Reserves for unforeseen events

 Escalation Costs: Inflation-related increases

Purpose:

 Budget planning

 Financial risk management

 Decision-making

 Module 5: Project Roles, Team Types,

Team Building, and Organizational
Structure
1. Project Roles

In project management, different individuals take on specific roles to ensure smooth execution and
delivery.

Key Project Roles:

Role Responsibilities

Provides financial resources, champions the project at the executive

Project Sponsor
level, approves major decisions.

Plans, executes, and closes the project. Manages time, cost, quality, and
Project Manager
team.

Project Team Members Carry out tasks and deliverables. Bring technical expertise.

Individuals or groups impacted by the project (customers, suppliers,

Stakeholders
users).

Functional Managers Manage specific departments (e.g., HR, Finance) and provide
Role Responsibilities

resources/support.

Consultants/External
Provide specialized skills not available in-house.
Experts

2. Team Types in Projects

Depending on project size, complexity, and nature, different types of project teams are formed.

Types of Project Teams:

Team Type Characteristics

Team members belong to the same department. Project work is secondary to

Functional Team
regular duties.

Cross-Functional Members come from different departments (engineering, marketing, finance).

Team Promotes diversity of ideas.

Matrix Team Team members report both to a project manager and a functional manager.

Team members are external contractors or consultants brought in for specific

Contracted Team
tasks.

Members work remotely and collaborate using digital tools across geographic
Virtual Team
locations.

Self-Managed
No formal leader; team collectively manages tasks and decisions.
Team

3. Team Building in Project Management

Team Building refers to activities aimed at enhancing social relations, clarifying roles, and solving
interpersonal problems within a project team.

Stages of Team Development (Tuckman's Model):

Stage Description

Forming Team members meet, roles and rules are unclear.

Storming Conflicts emerge as personalities clash.

Norming Consensus develops, roles become clearer.

Performing Team works efficiently towards goals.

Adjourning Project ends; team disbands after delivering results.

Team Building Activities:

  Workshops: Skill development and training

 Team Outings: Bonding through informal events

 Brainstorming Sessions: Collaborative problem-solving

 Conflict Resolution Exercises: Handling disagreements constructively

 Regular Meetings: Progress updates and maintaining alignment

Importance of Team Building:

 Improves communication

 Enhances collaboration

 Boosts morale and motivation

 Reduces conflicts

4. Organization Structure for Effective Project Implementation

Organizational structure defines how project tasks are divided, coordinated, and supervised.

Types of Organizational Structures:

Structure Features Pros Cons

Slow project execution, poor

Functional Organized by departments (HR, Clear hierarchy,
cross-departmental
Organization Finance). Projects are secondary. specialization.
communication.

Full authority given to project

Projectized High focus, fast Resource inefficiency, less
manager. Dedicated team for
Organization decision-making. job security post-project.
each project.

Blend of functional and Confusing reporting

Matrix Efficient resource
projectized; dual reporting relationships, potential
Organization sharing, flexible.
relationships. conflicts.

Mix of different structures

Composite Tailored to specific
customized to Complex to manage.
Organization project types.
organization/project needs.

Key Elements for Effective Project Organization:

 Clear authority and reporting lines.

 Defined roles and responsibilities.

 Resource availability (people, equipment, budget).

 Effective communication channels.

 Supportive culture encouraging collaboration and innovation.

Module 6: Project Risk Management, Control, Measurement, Resource Allocation, and Purchasing

1. Project Risk Management and Mitigation Strategies

Project Risk Management involves identifying, analyzing, and responding to project risks to
minimize negative impacts.

Steps in Risk Management:

Step Description

Risk Identification List all possible risks (financial, technical, environmental, etc.).

Risk Assessment Analyze the probability and impact of each risk.

Risk Prioritization Rank risks based on severity (using Risk Matrix).

Risk Response Planning Create strategies to address risks (avoid, transfer, mitigate, accept).

Risk Monitoring and Track identified risks and watch for new risks throughout the project
Control lifecycle.

Risk Mitigation Strategies:

 Avoidance: Change plans to eliminate the risk.

 Transfer: Shift risk to a third party (e.g., insurance).

 Mitigation: Take steps to reduce the impact or likelihood.

 Acceptance: Acknowledge the risk but take no action unless it occurs (plan a contingency).

2. Social Cost Benefit Analysis (SCBA)

Social Cost Benefit Analysis (SCBA) evaluates the overall value of a project considering both
economic and social impacts.

Purpose:

 Determine if a project is socially worthwhile, not just financially profitable.

Components:

Category Examples

Social Benefits Employment generation, health improvements, education, public welfare.

Social Costs Pollution, displacement of people, environmental degradation.

Key Steps:

1. Identify all social costs and benefits.

2. Quantify them in monetary terms (if possible).

3. Discount future values to present value.

 4. Compare total benefits vs. total costs.

If Social Benefits > Social Costs → Project is recommended.

3. Project Control

Project Control ensures that project goals are achieved by monitoring progress and taking
corrective action as needed.

Project Control Cycle:

1. Set performance standards (scope, time, cost, quality).

2. Measure actual performance.

3. Compare actual vs. planned performance.

4. Take corrective actions if deviations are found.

Tools for Project Control:

 Gantt Charts (visualize schedule)

 Earned Value Management (EVM) (measure schedule and cost performance)

 Control Charts (monitor quality control)

4. Project Management Measuring, Monitoring, and Tracking Techniques

Measuring:

 Setting Key Performance Indicators (KPIs) (e.g., budget variance, schedule adherence).

 Use of metrics like Cost Performance Index (CPI) and Schedule Performance Index (SPI).

Monitoring:

 Ongoing observation and reporting on project performance.

 Regular status meetings, dashboards, and reports.

Tracking:

 Tracking progress against the baseline schedule and budget.

 Identifying early signs of deviation to prevent bigger problems later.

Popular Techniques:

Technique Description

Gantt Charts Bar chart showing task timelines.

Earned Value Analysis (EVA) Integrates scope, schedule, and cost for performance measurement.

Milestone Tracking Tracking the achievement of important checkpoints.

Technique Description

Variance Analysis Comparing planned vs actual values.

5. Resource Allocation and Scheduling

Resource Allocation: Assigning available resources (people, equipment, money) to project tasks.

Resource Allocation Steps:

1. Identify all project tasks.

2. List resource requirements for each task.

3. Assign resources based on skills, availability, and priority.

4. Adjust assignments to prevent overallocation.

Resource Scheduling: Timing the use of resources to avoid shortages or bottlenecks.

Techniques:

Technique Description

Resource Leveling Adjust the project schedule to resolve conflicts and overallocation.

Adjust within float/slack to maintain project deadline while balancing

Resource Smoothing
resource usage.

Critical Chain
Focus on managing resource constraints along the critical path.
Method

6. Purchasing in Project Management (Procurement Management)

Purchasing (or Procurement) refers to acquiring goods and services from external suppliers needed
to complete the project.

Procurement Process:

Step Description

Planning Procurement Decide what to purchase and when.

Soliciting Bids and Proposals Request bids or proposals from suppliers.

Selecting Sellers Evaluate proposals and choose suppliers.

Contract Administration Manage contracts, ensure supplier delivers as agreed.

Contract Closure Finalize contracts after successful delivery.

Common Procurement Documents:

 RFI (Request for Information): Gather information from suppliers.

  RFP (Request for Proposal): Invite detailed proposals.

 RFQ (Request for Quotation): Ask for price quotations.

Procurement Strategies:

 Single sourcing vs. multiple sourcing

 Fixed-price vs. cost-plus contracts

 Long-term supplier partnerships

Module 7: Project MIS – Principal Features

1. What is Project MIS?

MIS (Management Information System) in project management refers to a system that provides
relevant, timely, and accurate information to project managers and stakeholders to support
decision-making, control, coordination, analysis, and visualization of project data.

➡️In short:
Project MIS = Right information + Right time + Right people
to manage and control the project efficiently.

2. Principal Features of Project MIS

Feature Description

Gathers data from various project areas (costs, timelines, resources,

Information Integration
risks) into one platform.

Provides live updates on project progress, milestones, budgets,

Real-Time Monitoring
resource utilization.

Helps project managers analyze situations, compare alternatives, and

Decision Support
make informed decisions.

Generates standard and customized reports (status reports, variance

Custom Reporting
reports, risk reports).

Forecasting and Predictive Projects future trends based on current data (e.g., estimating
Analysis completion time or final cost).

Stores and manages project documents (plans, contracts, reports) for

Document Management
easy access and version control.

Risk Management Tracks identified risks and issues; provides alerts if thresholds are
Integration exceeded.

Scheduling and Planning Links directly with project schedules (Gantt charts, CPM/PERT charts).
Support Helps with re-scheduling when needed.

Resource Management Monitors usage and availability of people, equipment, and materials.
Feature Description

Security and Access Protects sensitive project data. Allows role-based access (different
Control access levels for different users).

Easy to use dashboards and visual tools (graphs, tables, charts) for
User-Friendly Interface
quick understanding.

Enhances team communication through notifications, messages,

Communication Support
shared calendars.

Budget and Cost Tracking Compares planned vs. actual costs and identifies overruns early.

Keeps logs of all actions for transparency and compliance with

Compliance and Audit Trail
regulations or company policies.

3. Importance of Project MIS

 Faster Decision-Making: Instant access to real-time information.

 Early Detection of Problems: Identifies issues before they become major.

 Better Coordination: Keeps the team informed and aligned.

 Improved Productivity: Reduces manual work; automates reports.

 Transparency: Clear view of project health for stakeholders.

 Accountability: Tracks who did what and when.

4. Typical Modules in a Project MIS

Module Function

Project Planning Scheduling, WBS creation

Cost Management Budgeting, expense tracking

Resource Management Allocation, tracking, optimization

Risk Management Risk identification, monitoring

Quality Management Tracking quality issues, inspections

Procurement Management Supplier information, contract management

Communication Management Reports, alerts, stakeholder communications

Practice Document: Solved CPM and PERT Numericals

Solved Example 1: Critical Path Method
(CPM)
Activities Table:

Activity Predecessor Duration (days)

A - 3
B A 5
C A 4
D B 6
E C 2
F D, E 3

Steps:

1. Draw the Network Diagram:

 A→B→D→F
 A→C→E→F

2. Forward Pass (Earliest Start and Finish):

 A: ES=0, EF=0+3=3
 B: ES=3, EF=3+5=8
 C: ES=3, EF=3+4=7
 D: ES=8, EF=8+6=14
 E: ES=7, EF=7+2=9
 F: ES=Max(14,9)=14, EF=14+3=17

3. Backward Pass (Latest Finish and Start):

 F: LF=17, LS=17-3=14
 D: LF=14, LS=14-6=8
 E: LF=14, LS=14-2=12
 B: LF=8, LS=8-5=3
 C: LF=12, LS=12-4=8
 A: LF=3, LS=3-3=0

4. Float Calculation:

 A: 0 float
 B: 0 float
 C: LS-ES=8-3=5 days float
 D: 0 float
 E: LS-ES=12-7=5 days float
  F: 0 float

5. Critical Path:

 A→B→D→F
 Project Duration = 17 days

Solved Example 2: PERT Method

Activities Table:

Activity Predecessor Optimistic (O) Most Likely (M) Pessimistic (P)

A - 2 5 8
B A 3 6 9
C A 4 6 10
D B, C 2 5 8

Steps:

1. Calculate Expected Times (TE):

 A: (2+4*5+8)/6 = (2+20+8)/6 = 30/6 = 5

 B: (3+4*6+9)/6 = (3+24+9)/6 = 36/6 = 6
 C: (4+4*6+10)/6 = (4+24+10)/6 = 38/6 ≈ 6.33
 D: (2+4*5+8)/6 = (2+20+8)/6 = 30/6 = 5

2. Calculate Variances:

 A: ((8-2)/6)² = (6/6)² = 1
 B: ((9-3)/6)² = (6/6)² = 1
 C: ((10-4)/6)² = (6/6)² = 1
 D: ((8-2)/6)² = (6/6)² = 1

3. Network Diagram:

 A→B→D
 A→C→D

4. Find Critical Path:

 Path 1: A (5) + B (6) + D (5) = 16

 Path 2: A (5) + C (6.33) + D (5) = 16.33
 Thus, Critical Path = A → C → D
 Project Duration = 16.33 weeks

5. Project Variance (only critical activities):

  A: 1
 C: 1
 D: 1

Project Variance = 1+1+1 = 3

6. Standard Deviation (σ):

 σ = √3 ≈ 1.732

7. Find Probability (optional): If target time (T) = 17 weeks:

Z = (T - TEproject) / σ

Z = (17-16.33)/1.732 = 0.67/1.732 ≈ 0.387

From Z-table, Z=0.387 corresponds to probability ≈ 65%.

Thus, 65% probability project will complete within 17 weeks.

Summary of Key Formulas

Concept Formula
Expected Time (TE) (O + 4M + P)/6
Variance ((P-O)/6)^2
Float (CPM) LS-ES or LF-EF
Z-score (T - TEproject)/σ