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Lecture-7 - Programme Evaluaion and Review Technique (PERT) and Computer Applications in Project Management

This document provides an introduction to the Programme Evaluation and Review Technique (PERT). PERT was developed in 1958 to aid in planning and controlling research and development programs. It uses three time estimates (optimistic, most likely, pessimistic) for each activity to account for uncertainties. From these, it calculates an expected time and standard deviation to measure variability. PERT is useful for new product development, military projects, and situations where background information is limited. It differs from critical path method (CPM) in its use of probabilistic time estimates rather than fixed durations.

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Ayusmita Deka
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
116 views

Lecture-7 - Programme Evaluaion and Review Technique (PERT) and Computer Applications in Project Management

This document provides an introduction to the Programme Evaluation and Review Technique (PERT). PERT was developed in 1958 to aid in planning and controlling research and development programs. It uses three time estimates (optimistic, most likely, pessimistic) for each activity to account for uncertainties. From these, it calculates an expected time and standard deviation to measure variability. PERT is useful for new product development, military projects, and situations where background information is limited. It differs from critical path method (CPM) in its use of probabilistic time estimates rather than fixed durations.

Uploaded by

Ayusmita Deka
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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13‐02‐2019

INTRODUCTION
 PERT is a management technique that was developed in 1958
PROGRAMME EVALUATION AND as an aid to the planning and control of research and
REVIEW TECHNIQUE (PERT) development type of programmes.
 The PERT technique is most valuable in respect of projects
AR L2434 where there is insufficient background information or when
CONSTRUCTION MANAGEMENT many of its activities require considerable research and
development.
 Hence this technique is used in new product development
and marketing.
 It may be used by military authorities in the development of
new weapon systems.

PERT TIME ESTIMATES OPTIMISTIC TIME ESTIMATE


 In many situations, the duration of an activity cannot be  This is the estimate of the shortest possible time in which an
accurately determined because of various uncertainties. activity can be completed under ideal conditions, with
 To take the uncertainties into account, PERT allows the use exceptionally good luck.
of the following three kinds of time estimates for each  It is represented as tO
activity –
 The Optimistic Time Estimate
 The Pessimistic Time Estimate
 The Most Likely Time
 The three estimates, rather than only one estimate, express
the time to accomplish a task in terms of likelihood rather
than positive assurance.

PESSIMISTIC TIME ESTIMATE MOST LIKELY TIME


 This is the maximum possible time that an activity could be  This is the time estimate based on experience and judgement.
expected to consume, if extremely unfavourable conditions  This is the time required if the activity is repeated a number of
are experienced. times under essentially the same conditions.
 If everything went wrong, this would be the time estimate  It lies between the optimistic and pessimistic time estimates.
for the activity.  It
I assumes that
h things
hi go iin the
h normall way.
 It is represented as tP
 It is represented as tL

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EXPECTED OR AVERAGE TIME VARIABILITY


 From the three time estimates for an activity a single time  However, it is to be noted that this expected time for an
estimate representing the expected time for an activity can activity is not 100 % reliable.
be determined using the weighted average principle.  It is associated with a certain degree of uncertainty and
 In PERT, the expected time gives the average time taken for variability of the activity duration.
the completion of the activity.  The expected time is intended to be a time estimate having
 This time is the expected average duration of the activity, if approximately a 50 % chance that the actual duration will
the activity were to be repeated a large number of times. exceed it.
 The expected time, denoted by tE is given by the equation,  The expected time of an activity, in actual execution, is not
tO + 4 tL + tP completely reliable and is likely to vary.
Where, tO = the optimistic time,
tE = tL = the most likely time,  It is, therefore, necessary to measure the extent of variability
6 tP = the pessimistic time. of an activity’s time duration.

VARIABILITY STANDARD DEVIATION


 If the variability can be known, we can measure the reliability  Standard deviation is the statistical measure of uncertainty or
of the expected time as determined from the three time variability, being the spread of the distribution curve about its
estimates. mean value.
 One measure of variability of possible activity time is given by  In PERT analysis, the standard deviation of activity time,
the standard deviation of their probability distribution. denoted by σ, is given by the formula,
 Standard deviation and variance are commonly used in statistics tP - tO
as measures of variability. σ=
 A detailed discussion of standard deviation, variance and 6
probability distribution curve is beyond the scope of this  That is, one-sixth of the difference between the pessimistic
course and hence only their definitions are covered here. time and the optimistic time, the two extreme time estimates.
 A high standard deviation represents a high degree of
uncertainty regarding activity time.

VARIANCE EXPECTED LENGTH OF A PROJECT


 The expected length of a project is the expected time of completion
 Variance (υt) is defined as the square of the standard deviation
of the project which is equal to the length of critical path.
and is given by,
2  This is simply the sum of the expected time (tE) of all the activities
tP - tO in the longest path, i.e., the critical path.
υt =  This is denoted by Te. It is also given by the earliest expected time
6 TE of the end event of the network..
 Thus we see in PERT that each activity is associated with an  Since the expected project time (Te) is the sum of tE’s of all activities
expected time and its standard deviation or its variance which along the critical path, the variance of the expected project time
(Te) equals the sum of all the individual variance of these activities.
can be calculated from the three time estimates. This is denoted by υT.
 Similarly the standard deviation of the expected project length (Te)
is denoted by σ T and is given by the square root of the variance of
the project length υT.
 It is to be noted that σ T is NOT equal to the sum of the individual
standard deviation of Te of all the activities in the critical path.

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COMPARISON OF PERT AND CPM COMPARISON OF PERT AND CPM


 Similarities  Differences
 While CPM is activity oriented, PERT is predominantly event oriented.
 Both PERT and CPM are management techniques employed for
 PERT takes into account uncertainties in the duration of time for various
the planning, scheduling and controlling of projects.
activities of the project. PERT uses probabilistic approach. In CPM no
 Both are based on logic network approach. allowance is made for uncertainties. The duration is deterministic.
 The concept
p of event times,, slack or float and critical ppath is the  PERT permits the use of one or three time estimates for the activity
same in both PERT and CPM. duration while CPM uses only one time estimate for the activity
 The method of network calculations of event times (TE and TL), duration which is deterministic.
project time, etc. is similar in both CPM and PERT.  PERT’s main emphasis is the consideration of time, expediting the
 Both CPM and PERT are used for planning new projects and for
completion of projects and minimising delays, while CPM emphasises
the concept of cost. In CPM times are related to cost.
monitoring on-going projects.
 PERT is used more in research and development projects which involve
large amount of uncertainties. CPM is preferably used in construction
projects where there has been some experience and knowledge in
handling similar works.

INTRODUCTION
COMPUTER APPLICATIONS IN
 Information Technology or Software applications are available
PROJECT MANAGEMENT to support most aspects of a construction project.
 They have been largely designed as solutions to specific
problems and can be grouped into the following categories:
1 Computer aided Design and Visualisation
1.
2. Building Engineering applications
3. Computer aided Cost Estimation
4. Planning, Scheduling and Site Management
5. Computer aided Facilities Management
6. Business and Information Management

COMPUTER APPLICATIONS COMPUTER APPLICATIONS


Computer Aided Design and Visualisation: Building Engineering Applications:
 Computer Aided Design (CAD) software is widely used  The benefit of these applications is that they allow
by design professionals, and AutoCAD has the largest designers to evaluate alternate design solutions.
share of the CAD market.  Example: ATEAN from Carrier and CARGASW from
 Other popular CAD software include Microstation, Climasoft that offer comprehensive range of software
ArchiCAD, MiniCAD, FastCAD, etc. options for climatic energy design.
 These CAD programs have largely replaced the  CALCULUX for lighting design.
traditional drawing board at the production information
stage. Computer Aided Cost Estimation:
 Microsoft Excel, Esti-Mate, Manifest, FBS-Estimator, and
PRESTO, ITEC and ARQ from AM2.

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13‐02‐2019

COMPUTER APPLICATIONS COMPUTER APPLICATIONS


Planning, Scheduling and Site Management: Computer Aided Facilities Management:
 Besides the wide spread use of planning packages such as  Facilities Management is a relatively new discipline that
Microsoft Project, Primavera, Power Project, etc. emerged in the 1980s.
to plan and schedule detailed construction activities,  It is based on operation, maintenance, and impact of the
some applications
li ti lik
like JobMaster,
J bM t ICON, ICON GEST and d building operations on the life cycle costs.
Presto Control are designed to log, track internal  The available software for Facilities Management is a
processes during the construction phase. combination of CAD and database management systems.
 Site Operation simulation programs can emulate what  ITE (Inspección Técnica de Edificios) for example is a
happens in a real construction site by representing tool that makes possible to create a report of the state of
workers, machines and materials, and computing the the building.
cycle of each step.

PROJECT REPORTING IN VIRTUAL WORLD CLOUD / APPS


 Most of the software now are available on the cloud:
CLIENTS SERVERS DATABASE  Small to Large companies can enable their workforce to use these
applications via a shared ‘Public Cloud’ infrastructure.
Mobile Application Database of
 This means, they don’t need to buy expensive hardware like Servers,
Apps on Servers Project and
(Example: Resources Databases etc.
y )
myPrimavera)
 Services
S i lik like Amazon
A W
Webb SServices
i (AWS)
(AWS), Mi
Microsoft
f AAzure provide
id
(Example: Oracle
such infrastructure at a very low cost.
Web Server

Database for
Browser Server and myPrimavera)
Clients  Apps:
Job Services
(Example:  Many project management tools have introduced simple Mobile Apps
Timesheets etc.)
(like Oracle Primavera P6) to help users complete simple tasks on the
Desktop go (just like checking email!)
Clients  New age collaboration tools like Slack,Yammer (similar to chat apps)
are becoming popular as users/employees can collaborate more easily
with each other using them

POPULAR SOFTWARE FOR PROJECT


MANAGEMENT AND PROJECT REPORTING MICROSOFT PROJECT
 Desktop Software
 Microsoft Project (or MSP) is a project management
 Microsoft Excel software program.
 Microsoft Project
 It is designed to assist project managers in:
 Primavera
• developing plans
 Browser
B SSoftware
f • assigning resources to tasks
 Employee Portals • tracking progress
 Team Portals • managing budgets
 Client Portals • analysing workloads
 Productivity Improvement Software
 Yammer
 Slack

4
13‐02‐2019

INTERFACE OF MSP
FEATURE DESCRIPTION
 Resources can be shared
between projects using a
shared resource pool.
 Each resource can have its
own calendar
 Limitation - MS Project
presumes additional physical
raw materials are always
available without limit

Project planning and


Practical usage of CPM (MSP) : scheduling
FEATURE DESCRIPTION
 Microsoft Project’s capabilities were extended with the
introduction of:
 Microsoft Office Project Server
 Microsoft Project Web Access
 Also,
Also newer versions provide for cross
cross-functionality
functionality with
products like:
 PowerPoint
 Visio
 While Microsoft Project is a great tool for managing large
projects, for those of us working on smaller projects of 30
tasks or less, a well-designed Excel spreadsheet combined
with PowerPoint can be just as effective.

TASK DEPENDENCY RELATIONSHIPS PROS


 Finish-to-Start (FS)  Easy outlining of tasks including support for hierarchical
 B cannot start till A finishes Work breakdown Structure (WBS)
 A: Construct fence; B: Paint Fence  Resource management
 Start-to-Start (SS)  Accuracy: Baseline vs. Actual; various calculations
 B cannot start till A starts
 A: Pour foundation; B: Level concrete  Easy charting
h andd graphics
h
 Finish-to-Finish (FF)  Cost management
 B cannot finish till A finishes
 Capture historical data
 A: Add wiring; B: Inspect electrical
 Start-to-Finish (SF)
 B cannot finish till A starts (rare)

5
13‐02‐2019

CONS ABOUT PRIMAVERA


 Workgroup/sharing features okay  Primavera enables the organisations to manage time,
 Scaling-up of a project up to a limit only tasks, costs, resources, contracts, change and
 No estimation features risks to consistently execute profitable projects.
 Remember:  Primavera is the industry leading project and program
 Being a MS-Project expert does not make you an expert management solution for projects of any size.
size
project manager!  Organisations leverage Primavera to effectively
 No more so than knowing MS-Word makes you a good collaborate across the entire project team.
writer.
 Proactively manage projects to meet success
requirements.
 Standardise business processes and best practices.

ABOUT PRIMAVERA REFERENCES


 Construction Project Management by Prof. Harbhajan Singh
Move WBS into a Project outline (in Task Sheet)
 Construction Planning and Management by P. S. Gahlot and
Add resources (team members or roles) B. M. Dhir
Add costs for resources
Assign resources to tasks
Establish dependencies
Refine and optimise
Create baseline
Track progress (enter actuals, etc.)

MST--2
MST
 Date:-Thursday, 14/02/2019 @ 09:00 hrs.
 Venue:- Studios S1 (Section ‘A’), S2 (Section ‘B’) and S3
(Section ‘C’).

THANK YOU
 Syllabus:- All the topics covered after MST-1 and Float Table.
 Max.
M M Marks
k = 25

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