Project Management sheet 3

Network Scheduling Systems

CPM/PERT network

Project Time Management

includes the processes required to manage
timely completion of the project.
DEPARTMENT OF PETROLEUM ENGINEERING
13/05/2023 E .MOHAMED MAHFOUZ
 Project Scheduling

 Steps (sheet 3)  Techniques

◼ Define activities ◼ Gantt chart
◼ Sequence ◼ CPM *
activities ◼ PERT *
◼ Estimate time
◼ Develop schedule

1
 Introduction

 We have already seen that network techniques

is one of the most modern tools of project
management. It is always possible to break up
the entire project into a number of distinct, well
defined jobs or tasks ( called activities ).
 The beginning or end of each such activity
constitutes an event of the project

2
 The Project Network
Network consists of branches & nodes

arrow Node

1 2 3

Event Nodes: These are

These are completion or circles used to represent
arrows which beginning of an an event, i.e. the start or
links up events activity in a completion of a task at a
project point in time
3
 Project Network

Activity-on-arrow (AOA) (network) diagram

arrows represent activities and nodes are events for points in time

0 Activity A 1 Activity B 2
Start A Stop A Stop B
Start B
Activity-on-node (AON)
nodes represent activities and arrows show precedence
relationships

A B C
4
 CPM/PERT

Networks are of two types: CPM network and

PERT network. Fundamentally, both CPM and
PERT networks are techniques of project
management involving graphical and
diagrammatic representation, which management
can use as an aid in planning, scheduling, and
controlling of operations in a project.

5
 CPM/PERT

 Critical Path Method (CPM)

◼ Deterministic task times
◼ Activity-on-node network construction

 Project Evaluation and Review Technique

(PERT)
◼ Multiple task time estimates

6
 Critical Path Method CPM

Critical Path Method (CPM): Four Steps

1. Construct the network diagram.
2. Compute the earliest start and finish times of
each activity. Determine the earliest
completion time of the project.
3. Compute the latest finish and start times of
each activity. Determine the slacks.
4. Determine critical activities and critical paths.
7
 Critical Path Method

Example 1: Investment assignment

Activity Immediately Durations (days)

Predecessor
A Select a company - 1

B Obtain the company’s A 2

annual report and perform a
ratio analysis (B)
C Collect technical stock price A 1
data and construct charts (C)
D make a team decision on B,C 1
whether to buy the stock
8
Step 1: Construct the Network Diagram

B
(2)

A D(1)
(1)

C(1)

9
 Step 2: Compute ES and EF.

ES = The earliest start time of an activity

EF = The earliest finish time of an activity

An activity may start when all its predecessors

are finished:
ES(an activity) = Max(the EF’s of all its
predecessors)
EF = ES + activity duration
10
 Early Start/Finish
The earliest times that the activity can start and be finished

1 3
B
ES EF
(2) 3 4
0 1
D
A (1)
(1) 1 2

C 2 3 ignore
(1)
The Project takes 4 days.
11
 Step 3: Compute the latest finish and start time.

LF : latest time activity can finish & not delay project

LS : latest time activity can start & not delay project

LF (an activity) = Minimum(LS’s of all its

successors)

LS = LF – activity duration

12
 Late Start/Finish
The latest times the activities can start and finish.
1 3
B
ES EF (2) 3 4
0 1
1 3 D
A (1)
(1) 1 2
3 4
0 1 C
LS LF
LS LF (1)
2 3
13
 Slack Time and Critical Path

 Slack time of an activity(Total float ): the amount of

time by which the activity may be delayed without
delaying the project

 Critical path: a sequence of activities with zero

slack time. It is the longest path from “start” to
“finish”.

14
 Step 4: Compute the slack time.

Activity Slack Time = LF – EF = LS - ES

A 0
B 0
C 1
D 0

Slack time: 1 Critical path: A-B-D

15
Example 2

Activity Immediately Durations (days)

Predecessor
A - 7

B A 3
C - 6

D C 3
E B,D 2

How long does it take? Which activities are critical?

16
 Step 1: Construct the Network Diagram
Step 2: Compute ES and EF
0 7 7 10
A, B,
0 0 7 3 10 12
E,
Start 0 6 6 9 2
C, D,
6 3

The project can be completed in 12 days.

17
Step 3: Compute the latest finish and start time.

0 7 7 10
A, B,
7 3 10 12
0 0
0 7 7 10 E,
Start 0 6 2
6 9
C, D, 10 12
6 3

1 7 7 10

18
 Step 4: Compute the slack time..

Activity Slack Time = LF – EF = LS - ES

A 0
B 0
C 1
D 1
E 0

Slack time: 2 Critical path: A-B-E

19
 Example 3

Activity Immediately Durations

Predecessor (weeks)
A - 6

B - 11

C B 8
D A,C 9
E C 8
F C 7.5
G D,E,F 7
20
 Step 1: Construct the Network Diagram

D,9
A,6

Start C,8 E,8 G,7 Finish

B,11
F,7.5

21
 Step 2: Compute ES and EF
ES EF 19 28
0 6
A (6) D(9)
A(6)
0 0 11 19 19 27 28 35

Start E(8) G(7)

C(8)
0 11

B(11) 19 26.5

F(7.5)

The project can be completed in 35 weeks.

22
 Step 3: Compute LF and LS
ES EF
19 28
A,6 0 6
D,9
LS LF A,6
0 0 11 19 19 28
28 35
13 19 19 27
Start C,8 G,7
0 11 E,8
0 0 11 19 28 35
B,11 20 28
Critical path 19 26.5
0 11
F,7.5
20.5 28

23
 Step 4: Compute the slack time.

Activity Slack Time = LF – EF = LS - ES

A 13
B 0
C 0
D 0
E 1
F 1.5
G 0
Slack time: 15.5 Critical path: B-C- D- G
24
Exercise
15 minutes

Activities Activity Resources Original Predecessor

Code Description Needed Duration Logic

Start 0 -------------

A 2 Start

B 12 A

C 5 B&D
D 6 Start

E 7 D

F 3 E

Finish 0 C&F

How long does it take? Which activities are critical? 26

.
PERT
Project Evaluation and Review Technique

 Three-point estimates
PERT uses three estimates to define an approximate range
for an activity’s duration
Most likely: Most likely: the duration of the activity,
based on resources likely to be assigned for this activity.
Optimistic: the activity duration is based on analysis of
the best-case scenario for the activity.
Pessimistic: the activity duration is based on analysis of
the worst-case scenario for the activity

25
 PERT: 3 Steps

1. Determine the expected time

2. Construct the network diagram.
3. Compute the earliest start and finish times of
each activity. Determine the earliest completion
time of the project.

26
 PERT

 Probabilistic Time Estimates

o + 4m + p
Mean (expected time): t=
6

where
o = optimistic estimate
m = most likely time estimate
p = pessimistic time estimate

27
 PERT Formula and Example

 Example:
where optimistic time= 8 days,
most likely time = 10 days, and
pessimistic time = 24 days
PERT weighted average =
8 workdays + 4 X 10 workdays + 24 workdays = 12 days
6
Therefore, you’d use 12 days on the network diagram instead
of 10 when using PERT for the above example

28
 Example 1

Activity Predecessor Optimistic Most likely Pessimistic

A start 2 4 6

B A 3 5 7

C start 4 7 10

D B ,C 4 5 6

29
Step 1: Expected duration

Expected duration
Activity Predecessor (O+ 4*M +P)
6

A start 4

B A 5

C start 7

D B ,C 5

30
 Step 2: Construct the network diagram
Step 3: Determine the earliest completion time of the project.

B 4 9
0 4 5
A
0 0 4 9 14
0 7
start C D
Finish
7 5
Expected Project duration = 14

31
 Example 2

Immediate
Task Predecesors Optimistic Most Likely Pessimistic
A None 3 6 15
B None 2 4 14
C A 6 12 30
D A 2 5 8
E C 5 11 17
F D 3 6 15
G B 3 9 27
H E,F 1 4 7
I G,H 4 19 28
32
 Expected Time Calculations

Immediate Expected
Task Predecesors Time ET(A)=42/6=7
A None 7
B None 5.333 ET(A)= 3+4(6)+15
C A 14
D A 5 6
E C 11
F D 7
G B 11
H E,F 4
I G,H 18

Opt. Time + 4(Most Likely Time) + Pess. Time

Expected Time =
6
33
 7 21 21 32

C(14) E(11) 32 36
0 7

A(7) H(4)
D(5) F(7) 36 54

7 12 12 19 I(18)
0 5.3
5.3 16.3
B G(11)
(5.333)

Expected Project duration = 54 Days 34

 SCHEDULING PROBLEMS

Every scheduling technique has advantages and

disadvantages. Some scheduling problems are
the result of organizational indecisiveness,

However, there are some scheduling problems

that can impact all scheduling techniques .
These include:

9-37
 SCHEDULING PROBLEMS

●Using unrealistic estimates for effort and duration

● Inability to handle employee workload
imbalances
● Having to share critical resources across several
projects
● Overcommitted resources
● Continuous readjustments to the WBS primarily
from scope changes
● Unforeseen bottlenecks

9-38
 Assignment # 2 CPM
You are the project manager for project with the following
network diagram

 Draw the network diagram ? activity Original Predecessor

Code Duration Logic
 Determine the earliest
completion time of the Start 0 -------------
project?
A 2 Start
 What is the slack of activity C?
B 12 A
 What is the slack of activity F?
C 5 B&D
 What is the slack of activity E?
D 6 Start

E 7 D

F 3 E

Finish 0 C&F
35
 You are the project manager for project with
the following network diagram

2 Days 12 Days 5 Days

A B C

Finish
Start

6 Days 7 Days 3 Days

D E F

36
Critical Path Method (CPM), Backward Pass

Late Finish =
Lowest of successor’s Late Start Times

2 Days 12 Days 5 Days

0 2 2 14 14 19
A B C
0 2 2 14 14 19
0 0 19 19

Start Finish
6 Days 7 Days 3 Days 19 19
0 0
0 6 6 13 13 16
D E F
3 9 9 16 16 19
 Assignment # 3 PERT

Activity Optimistic Most likely Pessimistic

Based on the network
A 1 5 4
diagram in figure Q
B 7 9 6
(next slide)
How long will this C 4 7 10

project take? D 4 5 6

E 5 3 4

F 8 5 6

G 9 6 7

37
 Assignment # 3 PERT

figure Q
Lay foundations Build house

B D
Finish work
0 0
G
Start A

Design house F
and obtain
C
E
financing
Select carpet
Order and receive
materials Select paint

38
 Assignment # 4 Gantt Chart
sheet 2

Original
activity Predecessor
How long will this Duration
Code Logic
WEEK
project take?
Activity A 2 START O

B 12 A

C 5 B&D
D 6 START 0

E 7 D

F 3 E

Time
39
Good Luke