International Journal of Engineering and Advanced Technology (IJEAT)

ISSN: 2249-8958 (Online), Volume-9 Issue-6, August 2020

ABC Project Evaluation using CPM/PERT and

Crash Program Methods in PT PAC Engineering
Dion Jonadi, Hendri Kus Julius, Suwendy, Yuli Eni

 automation companies. Automation is an automatic and

Abstract: This study was made aiming to determine the optimal directed movement from one activity to the next. This field is
time needed in the implementation of the ABC project by using the experiencing rapid development with advances in technology
CPM / PERT method, to determine the time needed in the
that are increasingly sophisticated and can be proven by the
implementation of the ABC project using the Crashing Project
method and to find out the additional costs required in using the growth rate of industrial automation from year to year.
Crashing Project method. The analytical research method used is Estimates of the growth of the world electronics industry from
the CPM / PERT method and the Crashing Project. The results of 2016 - 2018 can be seen in every part of the region. Globally,
this study show that the ABC project has a critical path that must the industry is expected to experience an increase of around
be done, namely the A-B-C-D-E-H-I-J-K-M-N-O-R-S-T-U 4% between 2016 - 2017, and in Asia itself is expected to
activity within 99 days. The cost calculated through Crashing
Project is Rp. 219,300,000 and can save time to 83 days of project
experience the fastest increase among other regions. Whereas
execution. Consumer demand to complete the project within 90 in Europe, the industry is projected to grow by 3% every year
days. There fore the results of the Crashing Project get the amount [2] The researcher realizes that in this global competition, if a
of the cost of Rp. 6,200,000. The conclusion is the ABC project company cannot work effectively and efficiently then the
can be completed within 90 days using the CPM / PERT method company will be unable to compete with other companies. At
and the Crashing Project (DJ, HKJ and S)
present, the competition that occurs in the world of
information and communication technology (ICT) industries
Keywords: CPM/PERT, Crashing Project
becomes more stringent and competitive when compared to
I. INTRODUCTION past competition. This situation causes competition in terms
of cost, time, and quality of work offered by the company to
Along with the development of technology, based on data win the work rights of a project. This triggers a price war and
the time of project work that occurs during the project
from the Central Statistics Agency (BPS), the information and offering period carried out by the company. PT PAC
communication technology industry (ICT) in 2011-2015 grew Engineering is a company engaged in Industrial Automation
from 9.98 to 10.7% per year. This growth is almost double the and provides direct consultation with consumers, especially in
national economic growth of 4.79-6.56%. The high growth of the process and machine control. PT PAC Engineering which
ICTs in Indonesia is also reflected in the large allocation of is engaged in the Automation contracting industry is expected
capital expenditure (capital expenditure / capex) in the ICT to be able to manage and plan a project that they will work on
sector which continues to rise every year. The International carefully in order to achieve optimal results.The project to be
Data Corporation (IDC) research institute also predicted that investigated is the ABC project which runs from 6 March
the capex of the ICT sector in Indonesia in 2016 will reach US 2017 to 9 July 2017, because this project has a high
$ 15.3 billion (Rp 201.76 trillion), growing 8.5% from last complexity compared to other projects and researchers are
year's US $ 14.1 billion (Rp 183, 53 trillion) [1]. The given permission to evaluate the project from the company.
development of this technology has an impact on companies The problem contained in this project is the delay of 3 days
in Indonesia, especially in the field of technology and from the planned 96 days and cannot meet the wishes of
engineering. Companies that can cover both fields are consumers that is for 90 days. Researchers applied the CPM /
PERT and Crashing Project methods in the engineering field
with a case study at PT PAC Engineering in handling projects
Revised Manuscript Received on July 10, 2020. named ABC. By using the CPM / PERT and Crashing Project
* Correspondence Author method, this study aims to find out, predict, prepare, and
Dion Jonadi, Management Department, BINUS Business School maintain so that no activities are hampered or activities that
Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia.
Hendri Kus Julius, Management Department, BINUS Business School
should not need to be done so that the company can complete
Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia. each project both now and in the future ahead of time, which
Suwendy, ManagementDepartment, BINUS Business School are desired. So that things that are not desirable can be
Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia. avoided such as the delay of raw materials that can disrupt all
Yuli Eni*, Management Department, BINUS Business School
Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia. the plans that have been made and so on. In today's modern
E-mail: [email protected] competition, engineering companies such as PT PAC
Engineering must be able to work effectively and efficiently,
© The Authors. Published by Blue Eyes Intelligence Engineering and
Sciences Publication (BEIESP). This is an open access article under the CC
BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Published By:
Retrieval Number: B2881129219/2020©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijeat.B2881.089620 & Sciences Publication
Journal Website: www.ijeat.org 99 © Copyright: All rights reserved.
 ABC Project Evaluation using CPM/PERT and Crash Program Methods in PT PAC Engineering

as well as consistent project planning. This is because if Crashing Project method to reduce the duration of project
there are delays or things that are not desirable, it can be fatal work by adding additional resources in the form of money,
for both parties. For this reason, the researchers formulated labour, and others so that the project can run faster than
the following problems: planned.
1. How much time can be optimized in the ABC project by
using the CPM / PERT method? III. RESULT AND DISCUSSION
2. How long does it take to carry out the ABC project using
the Crashing Project method? A. Data Description
3. How much additional cost is needed in implementing the This study evaluates one project that has been carried out by a
ABC project using the Crashing Project method? company PT PAC Engineering as the object of research is the
The purpose of this research is to find out the fastest and ABC project with the following activity data:
ideal timeline for ABC projects. Therefore, the objectives that
can be designed in this study are to find out the optimal time Table- I: Project Activities
needed in ABC project implementation using CPM / PERT No Activities Pred Duration(d
method, to find out the time needed in ABC project ays)
implementation by using the Crashing Project method, and to A Survey Location 2
find out the additional costs needed in using the Crashing B Kick Off Meeting A 1
Project method
C Design document and wiring diagram B 14
development
II. RESEARCH METHOD D AB Part Delivery C 8

The research method used in this study is a quantitative E Bulk Material Delivery C 8
method. Sekaran (2016: 33) says that "quantitative is data F Check Device with existing drawing C, D 4
obtained in the form of frequency or average and standard
G Wiring Mainpanel Enclosure F 4
deviations such as satisfaction ratings, production figures,
sales figures, or demographic data." The type of research used H Mechanical Support D, E 30
is descriptive. Sekaran (2016: 33) says that "descriptive is a I Machine Install dan Main Panel G, H 3
method designed to collect data that describe the Install
characteristics of objects (such as people, organizations / J Install Incomming Cable to Main I 2
panel
companies, products or brands), events or situations." K CLX Programming J 20
Time Horizon used is Cross-Sectional. According to
Sekaran (2016: 95), "Cross-sectional is a research that can be L HMI Programming J 10
collected only once, maybe for several days or weeks or M Workshop Testing / FAT K, L 1
months, to answer research questions."
N Ship panel to Customer M 2
The research carried out aims to analyze the project
implementation carried out by the company so far and make O Site Install Enclosure and Wiring N 7
comparisons with the proposed Project Management method P Power Up IO Check N 1
at PT PAC Engineering. With this type of descriptive
Q Dryrun Pouch Systems N 1
research, the unit of analysis is the company PT PAC
Engineering, the project part is ABC, and the time horizon R Products Run O, P, 1
used is the Cross Section. Q
Data collection techniques in this research were carried out S Baby Sitting R 3

through field studies. Field studies are carried out through T Sign-Off and Hand-Over S 1
direct visits to the company from the first source, both U Proyek Documentation, send to T 1
individuals and individuals obtained from the results of field Customer
research, namely by conducting direct visits to the company. (Source: PT. PAC Engineering)
To get the data, the researcher conducted an interview by
B. Critical Path Method Analysis
asking questions and answers to Mr. Riberty Bouna as Project
Manager and conducted a small interview to workers in the After determining the activities and predecessors, the data
will be processed using QM for Windows software using
field. Data analysis techniques used are Work Breakdown
CPM / PERT. The results of data processing can be seen
Structure, CPM / PERT, and Crash Program. The researcher
below:
uses the Work Breakdown Structure to form a project activity
Table- II: CPM Calculation Results
design, so that the project has a better level. Then after using Early
WBS, the next thing that researchers do is determine the Activity Early Late Late Slac
Finis
Time(days) Start Start Finish k
critical path or activities that must be prioritized using CPM h
so that the project does not experience delays. After Projects 96
determining the critical path using CPM, the next thing the A 2 0 2 0 2 0
researcher does is determine the probability of project success
and also the standard deviation of the project using the PERT
method. And after determining the critical path and also the
probability of success of the project, the researcher uses the

Published By:
Retrieval Number: B2881129219/2020©BEIESP
Blue Eyes Intelligence Engineering
DOI: 10.35940/ijeat.B2881.089620
& Sciences Publication
Journal Website: www.ijeat.org
100 © Copyright: All rights reserved.
 International Journal of Engineering and Advanced Technology (IJEAT)
ISSN: 2249-8958 (Online), Volume-9 Issue-6, August 2020

B 1 2 3 2 3 0 24.6
F 4 28.67 46.2 50.2 21.5 0.67
7
C 14 3 17 3 17 0 28.6
G 4 32.67 50.2 54.2 21.5 0.67
7
D 8 17 25 17 25 0 24.6
H 29.5 54.17 24.7 54.2 0 1.17
E 8 17 25 17 25 0 7
54.1
I 3 57.17 54.2 57.2 0 0.33
F 4 25 29 47 51 22 7
57.1
G 4 29 33 51 55 22 J 2 59.17 57.2 59.2 0 0.33
7
H 30 25 55 25 55 0 59.1
K 20 79.17 59.2 79.2 0 0.67
7
I 3 55 58 55 58 0 59.1
L 9.83 69 86 95.8 26.8 0.5
7
J 2 58 60 58 60 0 79.1
M 1.17 80.33 79.2 80.3 0 0.17
7
K 20 60 80 60 80 0
80.3
N 2 82.33 80.3 82.3 0 0.33
L 10 60 70 86 96 26 3
82.3
M 1 80 81 80 81 0 O 7 89.33 82.3 89.3 0 0.33
3
82.3
N 2 81 83 81 83 0 P 1.17 83.5 88.2 89.3 5.83 0.17
3
O 7 83 90 83 90 0 82.3
Q 1.17 83.5 88.2 89.3 5.83 0.17
3
P 1 83 84 89 90 6 89.3
R 1.17 90.5 89.3 90.5 0 0.17
3
Q 1 83 84 89 90 6
S 3 90.5 93.5 90.5 93.5 0 0.33
R 1 90 91 90 91 0
T 1.17 93.5 94.67 93.5 94.7 0 0.17
S 3 91 94 91 94 0
94.6
U 1.17 95.83 94.7 95.8 0 0.17
T 1 94 95 94 95 0 7
(Source: Data processed by researchers)
U 1 95 96 95 96 0
From the data generated through the PERT method, the
(Source: Data processed by researchers) expected project completion time is 95.83 days with the
From the acquisition of known data results based on the critical path: A-B-C-D-E-H-I-J-K-M-N-O-R-S-T-U. For
calculation of the CPM method, the total project completion other activities such as F, G, L, P, Q will not hamper the
time is 96 days. With a note that project work must go through project completion process, because the activity is not
activities on the Critical Path which, if delayed, will cause through the critical path. The project has a standard deviation
delays to the entire project. Activities that pass through the of 1.94 obtained from the calculation of PERT through QM
critical path in this project are starting from the activities of for Windows.
A-B-C-D-E-H-I-J-K-M-N-O-R-S-T-U. Other activities such From these results entered into the formula Z = (χ-μ) / σ
as F, G, L, P, Q will not hamper the project completion Here it can be seen that the formula is translated into:
process, because these activities do not pass through the x as the project completion time
critical path. μ as a result of the amount of project time through CPM /
PERT calculations using QM for Windows.
C. Analysis of PERT method σ as a result of calculating the standard deviation through the
After analyzing with CPM, the next step is to analyze PERT calculation of PERT using QM for Windows.
by using QM Software for Windows because there are often Then the results are obtained: Z = (99-96) /1.94=1.54 and can
unexpected situations that can hinder project work and are be seen in the distribution table Z get the number 0.9382
often difficult to prevent. Therefore optimization is carried which means there is an opportunity of 93.82% so that the
out using probability where there are 3 different time project can be implemented within 96 days.
conditions through the PERT method. The processed data can
D. Network Image
be seen as follows:
Here is an AON network image from ABC project data:
Table- III: Results of PERT calculations through QM for
Windows
Early Late Late Standard
Activity Early Slac
Finis Star Finis Deviatio
Time Start k
h t h n
Project 95.83 1.94

A 2 0 2 0 2 0 0.33

B 1.17 2 3.17 2 3.17 0 0.17

Fig. 1. AON Network
C 13.83 3.17 17 3.17 17 0 0.5
Source: Researcher's Processed Data
D 7.67 17 24.67 17 24.7 0 0.67

E 7.67 17 24.67 17 24.7 0 0.67

Published By:
Retrieval Number: B2881129219/2020©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijeat.B2881.089620 & Sciences Publication
Journal Website: www.ijeat.org 101 © Copyright: All rights reserved.
 ABC Project Evaluation using CPM/PERT and Crash Program Methods in PT PAC Engineering

project activities. Activities that can be crashed based on the

following data:
1. Activity A
Is a project location survey activity with an
accommodation fee of Rp. 100,000
2. Activity B
Is a meeting with the client to discuss the project, with
Fig.2.AOA Network accommodation costs of Rp. 200,000
Source: Researcher's Processed Data 3. Activity C
The CPM / PERT method is used to determine the project Is a machine and cable design development activities
time schedule, but a project manager often faces problems in according to client requests, with employee salary costs
reducing the project completion time that has been scheduled of Rp. 24,000,000 for 3 people. For outsourcing costs are
so as not to cross deadlines. In other words, a project manager employee salary costs Rp. 8,000,000 for 2 people.
must complete the project sooner than the time determined by 4. Activity D
the CPM / PERT network. The Crashing Project method can It is an activity of delivering materials used for the
speed up the scheduling process by spending more. project. Delivery fee is Rp. 190,000 per kg and the total is
Rp. 6,460,000 from abroad as much as 34kg. If using
Table- IV: Crash Project express delivery, a Rp. 210,000 per kg and the total is Rp.
Cras 7,140,000.
Normal Normal
No Pred h Crash Time
Time
Time
Cost 5. Activity E
It is an activity of delivering materials used for the
A 2 1 Rp. 100.000 0
project. Delivery fee is Rp. 190,000 per kg and the total is
B A 1 1 Rp. 200.000 0 Rp. 4,940,000 from overseas as much as 26kg. If using
express delivery, a Rp. 210,000 per kg and the total is Rp.
Rp. Rp.
C B 14 10 5,460,000.
24.000.000 32.000.000
6. Activity H
Rp. Rp.
D C 8 6
6.460.000 7.140.000
Is the activity of making machines that are made for the
project. The costs used are employee salaries of 10
Rp. Rp. people with a salary of Rp. 5,000,000 per person and in
E C 8 6
4.940.000 5.460.000
total Rp.50,000,000. If adding outsourcing will incur
F C, D 4 3 0 0 employee salary costs Rp. 150,000 per day.
G F 4 3 0 0 7. Activity K
Is a software programming activity for project machines.
Rp. Rp.
H D, E 30 27
50.000.000 70.250.000 The fee used is the programmer's salary of Rp. 8,000,000
G,
per person and the total is Rp. 40,000,000 for 5 people. If
I 3 2 0 0 you add outsourcing, you will be charged an employee
H
J I 2 1 0 0
salary fee of Rp. 5,000,000 per person.
8. Activity L
Rp. Rp. Is a software programming activity for project machines.
K J 20 18
40.000.000 45.000.000
The fee used is the programmer's salary of Rp. 8,000,000
L J 10 8
Rp. Rp. per person and the total is Rp. 24,000,000 for 3 people. If
24.000.000 29.000.000 you add outsourcing, you will be charged an employee
M K, L 1 1 0 0 salary fee of Rp. 5,000,000 per person.
9. Activity N
N M 2 1 Rp. 150.000 0 Is the activity of delivering machines that have been
Rp. made to the client. Costs incurred are the use of inter-car
O N 7 6 0
35.000.000 costs of Rp. 150,000.
10. Activity O
P N 1 1 0 0
Is the activity of installing machines to the client. Costs
Q N 1 1 0 0 incurred are employee salaries of Rp. 35,000,000 for 7
O, people.
R 1 1 0 0
P, Q
E. Crashing Project Results
S R 3 2 0 0
Based on QM for Windows analysis, project activities that
T S 1 1 0 0 can be accelerated are only those that are traversed by the
critical path, namely C-D-E-H-K with a total reduction in
U T 1 1 0 0
activity of 13 days and requires an additional cost of Rp.
Rp. Rp.
TOTAL COST 184.850.00 188.850.00
34,450,000.
0 0

(Source: Data processed by researchers)

Reduction in project time will make the project cost increases
because of the addition of employees or resources for the
Published By:
Retrieval Number: B2881129219/2020©BEIESP
Blue Eyes Intelligence Engineering
DOI: 10.35940/ijeat.B2881.089620
& Sciences Publication
Journal Website: www.ijeat.org
102 © Copyright: All rights reserved.
 International Journal of Engineering and Advanced Technology (IJEAT)
ISSN: 2249-8958 (Online), Volume-9 Issue-6, August 2020

By doing a crash on the project can make the project take 2. The total time required in the ABC project can be
place in only 83 days with a total cost of Rp. 184,850,000 + optimized for 83 days, where the costs to be expended to
Rp. 34,450,000 = Rp. 219,300,000 accelerate the project work time are Rp. 219,300,000.
3. Consumer demand for the completion of the ABC project
F. Alternative Crashing Project
within 90 days can be done by following the critical path that
Customers want the project to be completed for 90 days, then can be crashed from activities D, E and K. Costs that need to
it can do crashes from C-D-E-H-K activities as follows: be allocated to accelerate are Rp. 6,200,000.
1. Doing crashing on activities C and D with an additional
cost of Rp. 8,680,000 B. Suggestion
2. Doing crashing on activities C and E with an additional cost 1. Based on the conclusions above, it is recommended to
of Rp. 8,520,000. schedule using the CPM / PERT method.
3. Doing a crash on C and K activities with an additional cost 2. The sequence of each activity must be well planned. If there
of Rp. 13,000,000 is work that can be started simultaneously with other work,
4. Doing crashing on activities D, E and K with an additional then the work should be paralleled.
cost of Rp. 6,200,000 3. Pay attention to critical paths and if possible do crashing on
So it will take alternative step number 4 because the cost is the critical paths to speed up project time. Although it incurs
smallest. additional costs for crashes, but crashing programs can
provide benefits for companies including:
G. Implications of Research Results
- Avoiding operational costs caused by the completion of
Based on the results of the research carried out, the project work that is not timely.
implications of the analysis that have been made can be - Reducing operational costs caused by the project being late
compared with the results of the company. In project from a predetermined time.
planning, companies can use the CPM / PERT method to - Improve the company's brand image
create a project scheduling depiction. The CPM method uses - Prevents companies from charging penalty fees or the
one time factor per activity, while the PERT method uses amount of fines in the contract
three types of time for each activity.
The results of research from ABC project data that has been REFERENCES
processed using the CPM method results in a faster time of 96
days. While using the PERT method produces a faster time 1. A. Kure, E., & Muslim, “Industri TIK melebihi Ekonomi (Online),”
2016. [Online]. Available:
that is 95.83 days. With notes, project implementation must http://www.beritasatu.com/digital-life/392306-industri-tik-tumbuh-m
go through activities that are included in the critical path elebihi-ekonomi.html. [Accessed: 01-Jul-2018].
(critical path), namely activities 2. Statista, “Estimated growth rates for the global electronics industry
A-B-C-D-E-H-I-J-K-M-N-O-R-S-T-U. If the activity is from 2016 to 2018, by region,” 2017. [Online]. Available:
https://www.statista.com/statistics/268396/estimated-growth-rates-for
delayed it will cause delays to all project activities. -the-electronics-industry-by-re. [Accessed: 01-Jul-2018].
Researchers also used the Crashing Program Method and the
results obtained were C-D-E-H-K-L activities. Crashes can be
done because these activities through a critical path. With the
result that the total duration of project work time from 99 days
to 83 days with an additional cost of Rp. 34,450,000.
Based on the results of these methods it can be concluded
that the CPM / PERT and Crashing Program methods give
better results than the company calculations. This is
evidenced by the results of the total duration of time spent by
the company running for 99 days, while the results of
researchers obtained 83 days. For costs that need to be
incurred using the Crashing Program method that is Rp.
34,450,000.

IV. CONCLUSION AND SUGGESTION

Based on the results of analysis and management of data
obtained through observation, company documents, and
interviews with PT. PAC Engineering, and analysis using
CPM / PERT and Crashing Program methods, the researcher
can conclude the following:
A. Conclusion
1. The total time required in the ABC project can be
optimized for 96 days, which has 93.82% of the project will
be completed in less than 96 days with a total cost of Rp.
184,850,000.

Published By:
Retrieval Number: B2881129219/2020©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijeat.B2881.089620 & Sciences Publication
Journal Website: www.ijeat.org 103 © Copyright: All rights reserved.