PEMC1001 – Principles of Project Management
Department of Project Engineering and Management
Jharkhand University of Technology (JUT), Ranchi Semester: 1 | Credits: 4 | L-T-P: 1-1-0
CERTIFICATE
This is to certify that the project titled “Principles of Project Management” is a bonafide work carried out by _Vimal Ram_ of the Department of Project Engineering and Management, Jharkhand University of Technology (JUT), Ranchi, in partial fulfillment of the requirements for Semester–1.
ACKNOWLEDGEMENT
I express my sincere gratitude to my faculty members for their valuable guidance and continuous support throughout this project. I also thank the institution for providing a conducive academic environment. Finally, I acknowledge my peers and family for their encouragement and assistance.
TABLE OF CONTENTS
1. Introduction to Project Management
2. Project Life Cycle
3. Project Planning and Structure
4. Scheduling and Network Techniques
5. Project Control and Earned Value Analysis
6. Risk Management and Change Control
7. Project Organization and Team Leadership
8. Market Analysis and Financial Evaluation
9. Project Engineering and Management Integration
10. Advanced Concepts and Modern Trends
11. Diagrams and Practical Applications
12. Numerical Problems (Solved)
13. Conclusion
14. References
1. INTRODUCTION TO PROJECT MANAGEMENT
Concept
Project Management is the systematic application of knowledge, skills, tools, and techniques to project activities to achieve defined objectives within constraints of scope, time, cost, and quality.
Core Dimensions
• Technical (engineering feasibility)
• Managerial (planning and control)
• Human (leadership and communication)
• Financial (cost and investment decisions)
Role of Project Manager
• Planning and scheduling
• Resource allocation
• Risk identification and control
• Stakeholder coordination
Universal Principle
Triple Constraint (Iron Triangle): Scope–Time–Cost are interdependent.
Cause–Effect Relationship
Poor planning → Delay → Cost overrun → Project failure
2. PROJECT LIFE CYCLE
Phases
1. Initiation
2. Planning
3. Execution
4. Monitoring and Control
5. Closure
Key Insight
Maximum influence on cost and performance occurs during the planning phase.
3. PROJECT PLANNING AND STRUCTURE
Strategic Elements
• Mission
• Vision
• Goals
• SMART Objectives
Work Breakdown Structure (WBS)
Hierarchical decomposition of project into manageable components.Project
100% Rule
Diagram (Conceptual):
Project
├── Phase 1
│ ├── Task 1
│ ├── Task 2
├── Phase 2
│ ├── Task 3
│ ├── Task 4
2.3 Risk Management Process
1. Risk Identification
2. Risk Analysis
3. Risk Response
4. Risk Monitoring
3. Project Control Techniques
3.1 Earned Value Analysis (EVA)
Where: EV (Earned Value) = Work completed value
BAC (Budget at Completion)
Important Formulas:
Interpretation:
• CPI < 1 → Over budget
• SPI < 1 → Behind schedule
4. Market Analysis & Financial Evaluation
4.1 Demand Forecasting
• Trend analysis
• Regression models
• Market surveys
4.2 Cash Flow Analysis
Where:
• = Cash inflow
• = Discount rate
Decision Rule:
• NPV > 0 → Accept project
4.3 Internal Rate of Return (IRR)
5. Organization & Administrative Structure
5.1 Types of Project Organization
• Functional Organization
• Projectized Organization
• Matrix Organization
5.2 Capital Budgeting Techniques
• Payback Period
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
5.3 Abandonment Analysis
• Decision to terminate project based on losses
• Minimizes future financial damage
6. Network Techniques (PERT & CPM)
6.1 CPM (Critical Path Method)
Concept:
• Deterministic time estimation
• Identifies critical path (longest path)
Formula:
6.2 PERT (Program Evaluation Review Technique)
Time Estimation:
Where:
• = Optimistic time
• = Most likely time
• = Pessimistic time
6.3 Network Diagram (Conceptual)
Start → A → B → D → End
↓
C
• Path A-B-D = Critical Path
• Determines total project duration
7. Resource Management
• Resource allocation
• Resource leveling
• Resource smoothing
8. Project Leadership & Team Management
8.1 Role of Project Manager
• Leader
• Decision maker
• Communicator
• Risk handler
8.2 Human Factors
• Motivation
• Conflict management
• Team coordination
9. Change Control Process
Steps:
1. Identify change
2. Evaluate impact
3. Approve/reject
4. Implement
5. Document
Network Logic (Activity-on-Node) – Complete Solution
1. Given Data
Activity Predecessor Duration (Days)
A — 3
B A 5
C A 4
D B, C 2
E D 3
2. Step 1: Identify Activities and Dependencies
Each activity must be analyzed based on its predecessor:
• Activity A has no predecessor → starts first
• Activity B depends on A
• Activity C depends on A
• Activity D depends on both B and C
• Activity E depends on D
3. Step 2: Establish Logical Sequence
Convert the table into logical flow:
Start → A → (B and C in parallel) → D → E → End
Explanation:
• A initiates the project
• After A, two activities (B and C) run simultaneously
• D begins only after completion of both B and C
• E begins after D
4. Step 3: Draw Network Diagram (AON Method)
Each activity is represented as a node (box or circle), and arrows represent dependencies.
(Start)
|
A (3)
/ \
B(5) C(4)
\ /
D(2)
|
E(3)
|
(End)
5. Step 4: Perform Forward Pass (Earliest Times)
Forward pass calculates Earliest Start (ES) and Earliest Finish (EF).
Formula:
• EF = ES + Duration
• ES of next activity = max(EF of predecessors)
Calculations:
Activity A
• ES = 0
• EF = 0 + 3 = 3
Activity B
• ES = EF of A = 3
• EF = 3 + 5 = 8
Activity C
• ES = EF of A = 3
• EF = 3 + 4 = 7
Activity D
• ES = max(EF of B, C) = max(8, 7) = 8
• EF = 8 + 2 = 10
Activity E
• ES = EF of D = 10
• EF = 10 + 3 = 13
6. Step 5: Perform Backward Pass (Latest Times)
Backward pass calculates Latest Finish (LF) and Latest Start (LS).
Formula:
• LS = LF – Duration
• LF of previous activity = min(LS of successors)
Calculations:
Activity E
• LF = 13
• LS = 13 – 3 = 10
Activity D
• LF = LS of E = 10
• LS = 10 – 2 = 8
Activity B
• LF = LS of D = 8
• LS = 8 – 5 = 3
Activity C
• LF = LS of D = 8
• LS = 8 – 4 = 4
Activity A
• LF = min(LS of B, C) = min(3, 4) = 3
• LS = 3 – 3 = 0
7. Step 6: Calculate Slack (Float)
Formula:
Slack = LS – ES
Activity ES EF LS LF Slack
A 0 3 0 3 0
B 3 8 3 8 0
C 3 7 4 8 1
D 8 10 8 10 0
E 10 13 10 13 0
8. Step 7: Identify Critical Path
Critical path consists of activities with zero slack.
Critical Path = A → B → D → E
9. Step 8: Calculate Project Duration
Total duration = EF of last activity (E)
Project Duration = 13 days
10. Step 9: Interpretation
• Activities A, B, D, and E are critical
• Activity C has slack (1 day) → can be delayed without affecting project completion
• Delay in any critical activity will delay the entire projec
11. Key Observations
• Activity D starts only after completion of both B and C (merge dependency)
• Parallel activities increase efficiency but require coordination
• Critical path determines minimum project duration
4. SCHEDULING AND NETWORK TECHNIQUES
Critical path determines total project duration.
5. PROJECT CONTROL AND EARNED VALUE ANALYSIS
Key Metrics
SPI = {EV}/{PV}
Interpretation
• CPI < 1 → Over budget
• SPI < 1 → Behind schedule
6. RISK MANAGEMENT AND CHANGE CONTROL
Steps
1. Risk Identification
2. Risk Analysis
3. Risk Response
4. Monitoring
7. PROJECT ORGANIZATION AND TEAM LEADERSHIP
Structures
• Functional
• Matrix
• Projectized
Leadership Model
Forming → Storming → Norming → Performing
8. MARKET ANALYSIS AND FINANCIAL EVALUATION
NPV Formula
9. PROJECT ENGINEERING AND MANAGEMENT INTEGRATION
Concept
Integration of engineering principles with management strategies ensures efficient project execution.
Key Areas
• Design Management
• Procurement
• Quality Control
• Safety Management
• Cost Engineering
10. ADVANCED CONCEPTS
• Agile vs Traditional
• AI-based scheduling
• BIM and Digital Twin
11. DIAGRAMS AND APPLICATIONS
• WBS
• Gantt Chart
• Network Diagram
• Risk Matrix
12. NUMERICALS (SUMMARY)
• PERT calculation
• CPM critical path
• EVM analysis
• NPV evaluation
13. CONCLUSION
Project Management ensures systematic planning, execution, and control of projects, leading to efficient utilization of resources and successful achievement of objectives.
CPM (Longest Path)
(Start)
|
A(3)
/ \
B(5) C(4)
\ /
D(2)
|
E(3)
|
(End)
Visual flowchart
Start → A → (B & C Parallel) → D → E → End
FINAL INSIGHT
A project fails not due to lack of effort, but due to lack of integration, planning, and control.
14. REFERENCES
1. PMBOK Guide
2. K.K. Chitkara
3. Engineering Reports
4. Government Data
15 FINAL STATUS
✔ Department corrected
✔ Fully structured
✔ Clean academic format
✔ Ready for submission
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