PROJECT PLANNING

• It includes goal-setting,
defining the project, and team
organization.
 PERT AND CPM
• Both Developed in the 1950’s
• Used to help managers to schedule, monitor and control large
and complex projects.
 Program Evaluation and Review Technique (PERT)
• In 1958,developed by Booz, Hamilton and Allen
• Used for projects where time required to complete various activities are not
known.
• PERT is used to find the minimum time needed to complete the total project,
identify projects on critical path that must be completed on time to avoid the
increase in duration of the project.
•
Critical Path Method
In 1957, developed by J.E Kelly and M.R Walker
(CPM)
• Uses only one time factor per activity that enables engineers/managers to
schedule, monitor and control large project.
• It is used to identify the ES, EF,LS and LF in a PERT network, identify critical path
activities.
 ACTIVITY ON NODES (AON)

Nodes designate activities.

ACTIVITY ACTIVITY ACTIVITY

A B C

NODES
ACTIVITY ON ARROWS (AOA)

Arrows represents activities.

Activity A Activity B

ARROWS
 COMPARISON OF AON & AOA
ACTIVITY ON NODES (AON) ACTIVITY ACTIVITY ON ARROW (AOA)
MEANING

A comes before B,
A B C which comes before
C A B C

A A
A and B must both
be completed
C before C can start.
B B
C

B
B B and C cannot
A begin until A is
completed
C A
C
EXAMPLE 1: Dream Team Corporation
Dream Team Paper Manufacturing Corporation,is
located near Quezon City, has long been delaying
the expense of installing air pollution control
equipment in its facility . The Environmental
Protection (EPA)has recently given the
manufacturer 16 weeks to install a complex air filter
system. Dream Team has been warned that it may
be forced to close the facility unless the device is
installed in the allotted time. Sam , the Plant
Manager wants to make sure that the installation of
the filtering system progresses smooth and on time.
 EXAMPLE 1: Dream Team Corporation

IMMEDIATE
ACTIVITY DESCRIPTION
PREDECESSORS
A Build Internal Components -
B Modify roof and floor -
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F,G
 Dream Team Corporation
AON DIAGRAM
F
A C

E
Start H

B D G

Arrows Show Precedence Relationships

Figure 3.8
 Determining the Project Schedule
• Perform a Critical Path Analysis
 The critical path is the longest path through
the network
 The critical path is the shortest time in which
the project can be completed
 Any delay in critical path activities delays the
project
 Critical path activities have no slack time
Determining the Project Schedule
ACTIVITY DESCRIPTION Time (Weeks)
A Build Internal Components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
TOTAL TIME (WEEKS)
25
 Determine the Critical Path:
• Earliest Start (ES) – earliest time at which an activity can start,
assuming all predecessors have been completed.

• Earliest Finish (EF) – earliest time at which an activity can be

finished.

• Latest Start (LS) – latest time at which an activity can start so as to

not delay the completion time of the entire project, without
lengthening the minimum project duration.

• Latest Finish (LF)- latest time by which an activity has to finish so

as to not delay the completion time of the entire project, without
lengthening the minimum project duration.
PERFORM A CRITICAL PATH ANALYSIS

Activity Name or
Symbol

A Earliest Finish
Earliest Start
ES EF

Latest Start LS LF Latest Finish

2

Activity Duration
FORWARD PASS
Earliest Start Rule:
• If an activity has only a single immediate
predecessor, its ES equals the EF of the
immediate predecessor.
• If an activity has multiple immediate
predecessors, its ES is the maximum of all EF
values.
ES = Max (EF of all immediate predecessors
Earliest Finish Rule:
EF = ES + ACTIVITY TIME
 Critical Path for
Dream Team Corporation
A C F

2 2 3

Start E H

0
0 4 2

B D G

3 4 5
 BACKWARD PASS
Latest Finish Time Rule:
• If an activity is an immediate predecessor for just a
single activity, its LF is equal to the LS of the activity
that immediately follows it.
• If an activity is an immediate predecessor to more than
one activity, its LF is the minimum of all LS values of all
activities that immediately follow it.
LF = Min (LS of all immediate following activities)
Latest Start Time Rule:
LS = LF – Activity Time
 Critical Path for
Dream Team Corporation
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
 Calculating the SLACK TIME and
Identify Critical Paths

• SLACK – is the length of time an activity can

be delayed without delaying the entire
project.
Formula:
SLACK = LS – ES
Or
Slack = LF - EF
 Dream Team Corporation
Slack Time & Critical Path
Activity ES EF LS LF SLACK On
LS-ES Critical
Path (Y/N)
A
B
C
D
E
F
G
H

Critical Path : A – C – E – G – H
 THREE TIME ESTIMATES IN PERT
• Optimistic Time (a) – time an activity will take
if everything goes as planned.

• Pessimistic Time (b) – time an activity will

take assuming very unfavorable conditions

• Most likely Time (m) – most realistic estimate

of the time required to complete an activity.
 Question ???

If the variance for activity A is actually 0.30

(instead of 0.11) , what is the new project

standard deviation ?
 Conclusion:

There is 71.57% chance that the

pollution control equipment can be
put in place in 16 weeks or less.
 Question ???

What is the probability that the project will be

completed on or before the 17th week ?

Sam wants to find the due date
that gives her company’s
project a 99% chance of on-
time completion.
 Determining the Project Completion
Time for a Given Confidence Level

Due Date =
Expected Completion Time + (Z × std. deviation)

SOLUTION
Due Date = 15 weeks + (2.33 × 1.76)
= 19.1 weeks
 Question???
• What due date gives the project a
95% chance of on-time
completion ?