PERT / CPM

Module 8

ENGR. EVA B. BELGAR, RME

INSTRUCTOR
First Semester
A.Y. 2023-2024
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CONTENTS:
I. Introduction to Project Management
II. PERT
III. Key Concepts of PERT
IV. Advantages of PERT
V. Limitations of PERT
VI. CPM
VII. Key Concepts of CPM
VIII. Advantages of CPM
IX. Limitations of CPM
X. Comparison Between PERT and CPM
XII. Conclusion
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I. INTRODUCTION TO PROJECT MANAGEMENT

Project management is the discipline of managing all the different
resources and aspects of the project in such a way that the resources will deliver
all the output that is required to complete the project within the defined scope,
time, and cost constraints. These are agreed upon in the project initiation stage
and by the time the project begins all stakeholders and team members will have a
clear understanding and acceptance of the process, methodology and expected
outcomes.
Companies use project management to achieve results in a measured,
focused and predictable way. Project management processes can help project
managers and their teams organize complex plans, minimize potential risks and
produce high-quality results within budget and on schedule.
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II. PERT
Program Evaluation and Review Technique was developed in the late 1950 by
the US Navy submarine missile programme and was applied in 1958.
PERT is a statistical tool in project management that shows the time taken by
each component of project and the total time required for its completion.
PERT breaks down the project into events, activity, and lays down their proper
sequence relationship and duration in the form of network.
PERT is a technique representing project plan in network.
This is represented in a graphic form known as Network Diagram.
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III. KEY CONCEPTS OF PERT

1. TASKS / ACTIVITIES - In PERT, a project is broken down into
individual tasks or activities. Each task has a specific duration and must be
completed to move on to the next phase of the project.
2. DEPENDENCIES - Tasks in a project often depend on one another.
Some tasks can only start once others are completed, while some can happen
simultaneously. PERT helps in identifying these dependencies.
3. CRITICAL PATH - The critical path is the longest sequence of tasks
in a project that must be completed on time to ensure the project finishes on
schedule. Delaying any task on the critical path will directly delay the project
completion.
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III. KEY CONCEPTS OF PERT

4. OPTIMISTIC, MOST LIKELY, AND PESSIMISTIC ESTIMATES
- PERT uses three time estimates for each task: optimistic (O), most likely
(M), and pessimistic (P). These estimates are used to calculate the expected
duration of each task.
Optimistic Time - The least amount of time it can take to complete
a task
Most Likely Time - Assuming there are no problems, the best or
most reasonable estimate of how long it should take to complete a
task.
Pessimistic Time - The maximum amount of time it should take to
complete a task
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III. KEY CONCEPTS OF PERT

5. EXPECTED DURATION - The expected duration of a task is
calculated using the formula:
Expected Duration= [O+4(M)+P]/6
​ This formula gives more weight to the most likely estimate while
considering the optimistic and pessimistic estimates.
6. STANDARD DEVIATION - Standard deviation is a measure of the
variability or dispersion of a set of values. In PERT, it is calculated using the
formula:
Standard Deviation= (P-O) / 6
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III. KEY CONCEPTS OF PERT

7. PERT CHART - A PERT chart is a graphical representation of a
project's schedule. It shows the tasks, their dependencies, and the critical path.
PERT charts are helpful for visualizing the project timeline and understanding
the flow of tasks.
8. SLACK / FLOAT - Slack or float is the amount of time a task can be
delayed without delaying the project completion. Tasks on the critical path
have zero slack, while non-critical tasks have some slack.
9. PROBABILITY ANALYSIS - PERT can also be used to allocate
resources effectively by understanding the time constraints and dependencies
of tasks.
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III. KEY CONCEPTS OF PERT

To Implement PERT Chart:
Identify the different tasks needed to complete a project. Make sure
to add these in the right order and indicate the duration of each task.
Create a network diagram. Use arrows to represent the activities and
use nodes as milestones.
Determine the critical path and possible slack.
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IV. ADVANTAGES OF PERT

It helps maximize the use of resources.
It makes project planning more manageable.
It’s useful even if there is little or no previous schedule data.
It enables project managers to better estimate or determine a more
definite completion date.
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IV. LIMITATIONS OF PERT

In complex projects, many find PERT hard to interpret, so they may
also use a Gantt chart, another popular method for project
management.
PERT is not easily scalable for smaller projects.
It can be tedious to update, modify, and maintain the PERT diagram.
It entails a subjective time analysis of activities and, for those who
are less experienced or are biased, this may affect the project’s
schedule.
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EXAMPLE OF PERT
A Gantt chart using Microsoft Project

CRITICAL PATH SLACK CONNECTED TO NON-CRITICAL ACTIVITIES

Since Saturday and Sunday are not work days and are thus excluded from the
schedule, some bars on the Gantt chart are longer if they cut through a weekend.
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EXAMPLE OF PERT

In the following example there are seven tasks, labeled A through G. Some
tasks can be done concurrently (A and B) while others cannot be done until their
predecessor task is complete (C cannot begin until A is complete). Additionally,
each task has three time estimates: the optimistic time estimate (O), the most likely
or normal time estimate (M), and the pessimistic time estimate (P). The expected
time (TE) is computed using the formula (O + 4M + P) / 6.
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EXAMPLE OF PERT
Creating network diagram by hand or by using diagram software
2 Types of Network Diagram
1. Activity on Arrow (AOA) – The duration is denoted on arrow
connecting diagram nodes
2. Activity on Node (AON) – In such diagram, the information about the
task duration is denoted in the diagram node and each task is represented in the
form of rectangle with definite set of fields.
- Easier to create and interpret.
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EXAMPLE OF PERT
A Network Diagram using Microsoft Project
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VI. CPM
The critical path method (CPM) is a technique where you identify tasks
that are necessary for project completion and determine scheduling flexibilities. A
critical path in project management is the longest sequence of activities that must
be finished on time in order for the entire project to be complete. Any delays in
critical tasks will delay the rest of the project.
CPM revolves around discovering the most important tasks in the project
timeline, identifying task dependencies, and calculating task durations.
CPM was developed in the late 1950s by Morgan R. Walker and James E.
Kelley Jr. as a method to resolve the issue of increased costs due to inefficient
scheduling. Since then, CPM has become popular for planning projects and
prioritizing tasks. It helps you break down complex projects into individual tasks
and gain a better understanding of the project’s flexibility.
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
1. List Activities - Use a work breakdown structure to list all the project
activities or tasks required to produce the deliverables. The list of activities
in the work breakdown structure serves as the foundation for the rest of the
CPM.
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
2. Identify Dependencies - Based on your work breakdown structure,
determine the tasks that are dependent on one another. This will also help you
identify any work that can be done in parallel with other tasks.

Task B is dependent on A
Task C is dependent on B
Tasks C and D can run in parallel
Task E is dependent on D
Task F is dependent on C, D, and E
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
2. Identify Dependencies - Dependencies in CPM can be of four types:
Finish-to-Start (FS): The dependent task cannot start until the
preceding task is finished.
Start-to-Start (SS): The dependent task can start as soon as the
preceding task starts.
Finish-to-Finish (FF): The dependent task can finish only when the
preceding task finishes.
Start-to-Finish (SF): The dependent task can finish only when the
preceding task starts.
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
3. Create a Network Diagram - The next step is to turn the work
breakdown structure into a network diagram, which is a flowchart displaying the
chronology of activities. Create a box for each task and use arrows to depict task
dependencies.
You’ll add other time-bound components to the network diagram until you
have the general project schedule figured out.
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
4. Estimate Task Duration- Assign a duration to each activity. The
duration is the time it takes to complete the activity. It can be in days, weeks,
or any other time unit depending on the project requirements.
5. Calculate Early Start (ES) and Early Finish (EF): Start with the first
activity and calculate its Early Start (ES) as 0 since it starts at the beginning of
the project. The Early Finish (EF) of an activity is calculated as ES +
Duration - 1. For subsequent activities, ES is the maximum of EF of preceding
activities that are immediate predecessors.
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
6. Calculate Late Start (LS) and Late Finish (LF): Start from the last
activity and set its Late Finish (LF) equal to its Early Finish (EF). The Late
Start (LS) is then calculated as LS = LF - Duration + 1. For preceding
activities, LS is the minimum of LS of succeeding activities that are
immediate successors.
7. Calculate Float/Slack: Float or slack for an activity is calculated as
Float = LS - ES or Float = LF - EF. Activities on the critical path have zero
float, meaning they must start and finish on time for the project to stay on
schedule.
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VII. KEY CONCEPETS OF CPM

HOW TO FIND THE CRITICAL PATH
8. Identify the Critical Path: The critical path is the longest path through
the network diagram in terms of duration. It's the sequence of activities
with zero float. Activities on the critical path directly impact the project's
completion date.
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VIII. ADVANTAGES OF CPM

1. It figures out the activities which can run parallel to each other.
2. It helps the project manager in identifying the most critical elements of the project.
3. It gives a practical and disciplined base which helps in determining how to reach the objectives.
4. CPM is effective in new project management.
5. CPM can strengthen a team perception if it is applied properly.
6. CPM provides demonstration of dependencies which helps in the scheduling of individual
activities.
7. It shows the activities and their outcomes as a network diagram.
8. It gives a fair and concise procedure of documenting of project.
9. It helps in determining the slack time.
10. An explicit and clear approach of communicating project plans, schedules, time and cost
performance is developed.
11. It is extensively used in industry.
12. It helps in optimization by determining the project duration.
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IX. LIMITATIONS OF CPM

1. The scheduling of personnel is not handled by the CPM.
2. In CPM, it is difficult to estimate the completion time of an activity.
3. The critical path is not always clear in CPM.
4. For bigger projects, CPM networks can be complicated too.
5. It also does not handle the scheduling of the resource allocation.
6. In CPM, critical path needs to be calculated precisely.
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EXAMPLE OF CPM
An Electrical Engineering project has various tasks related to designing and implementing an
electrical system.
Here are the activities, durations, and dependencies:
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
1. Create a Network Diagram (4 Days)

TASK C
(3 Days)

TASK D
(6 Days)

TASK E TASK F
(7 Days) (8 Days)

TASK G
(5 Days)

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
2. Calculate Early Start (ES) and Early Finish (EF) (4 Days)

USING FORWARD PASS METHOD:

TASK C
TASK A : PROJECT PLANNNING (3 Days)
ES(A) = 0 (Start of the project)
TASK D
EF(A) = ES(A) + Duration(A) - 1 = 0 + 5 - 1 = 4 (6 Days)
TASK B: SITE SURVEY
ES(B) = EF(A) + 1 = 5 TASK E TASK F
(7 Days) (8 Days)
EF(B) = ES(B) + Duration(B) - 1 = 5 + 4 - 1 = 8
TASK C: LOAD CALCULATION TASK G
ES(C) = EF(B) + 1 = 9 (5 Days)

EF(C) = ES(C) + Duration(C) - 1 = 9 + 3 - 1 = 11

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
2. Calculate Early Start (ES) and Early Finish (EF) (4 Days)

USING FORWARD PASS METHOD:

TASK C
TASK D : CIRCUIT DESIGN (3 Days)
ES(D) = EF(C) + 1 = 12
TASK D
EF(D) = ES(D) + Duration(D) - 1 = 12 + 6 - 1 = 17 (6 Days)
TASK E : COMPONENT PROCUREMENT
ES(E) = EF(A) + 1 = 5 TASK E TASK F
(7 Days) (8 Days)
EF(E) = ES(E) + Duration(E) - 1 = 5 + 7 - 1 = 11
TASK F : INSTALLATION TASK G
ES(F) = max(EF(D), EF(E)) + 1 = 18 (5 Days)

EF(F) = ES(F) + Duration(F) - 1 = 18 + 8 - 1 = 25

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
2. Calculate Early Start (ES) and Early Finish (EF) (4 Days)

USING FORWARD PASS METHOD:

TASK C
TASK G: TESTING AND DEBUGGING (3 Days)
ES(G) = EF(F) + 1 = 26
TASK D
EF(G) = ES(G) + Duration(G) - 1 = 26 + 5 - 1 = 30 (6 Days)
TASK H: DOCUMENTATION
ES(H) = EF(G) + 1 = 31 TASK E TASK F
(7 Days) (8 Days)
EF(H) = ES(H) + Duration(H) - 1 = 31 + 4 - 1 = 34
TASK G
(5 Days)

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
3. Calculate Late Start (LS) and Late Finish (LF): (4 Days)

USING BACKWARD PASS METHOD:

TASK C
TASK H: DOCUMENTATION (3 Days)
LF(H) = EF(H) = 34
TASK D
LS(H) = LF(H) - Duration(H) + 1 = 34 - 4 + 1 = 31 (6 Days)
TASK G: TESTING AND DEBUGGING
LF(G) = min(LF(H)) = 31 TASK E TASK F
(7 Days) (8 Days)
LS(G) = LF(G) - Duration(G) + 1 = 31 - 5 + 1 = 27
TASK F: INSTALLATION TASK G
LF(F) = LS(G) - 1 = 26 (5 Days)

LS(F) = LF(F) - Duration(F) + 1 = 26 - 8 + 1 = 19

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
3. Calculate Late Start (LS) and Late Finish (LF): (4 Days)

USING BACKWARD PASS METHOD:

TASK C
TASK E: COMPONENT PROCUREMENT (3 Days)
LF(E) = LS(F) - 1 = 18
TASK D
LS(E) = LF(E) - Duration(E) + 1 = 18 - 7 + 1 = 12 (6 Days)
TASK D: CIRCUIT DESIGN
LF(D) = LS(F) - 1 = 18 TASK E TASK F
(7 Days) (8 Days)
LS(D) = LF(D) - Duration(D) + 1 = 18 - 6 + 1 = 13
TASK C: LOAD CALCULATION TASK G
LF(C) = LS(D) - 1 = 12 (5 Days)

LS(C) = LF(C) - Duration(C) + 1 = 12 - 3 + 1 = 10

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
3. Calculate Late Start (LS) and Late Finish (LF): (4 Days)

USING BACKWARD PASS METHOD:

TASK C
TASK B: SITE SURVEY (3 Days)
LF(B) = LS(C) - 1 = 9
TASK D
LS(B) = LF(B) - Duration(B) + 1 = 9 - 4 + 1 = 6 (6 Days)
TASK A: PROJECT PLANNING
LF(A) = LS(B) - 1 = 5 TASK E TASK F
(7 Days) (8 Days)
LS(A) = LF(A) - Duration(A) + 1 = 5 - 5 + 1 = 1
TASK G
(5 Days)

TASK H
(4 Days)
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TASK A

EXAMPLE OF CPM (5 Days)

TASK B
In this example, the critical path is (4 Days)

A - B -C - D - F- G - H with a duration of 34 days.

TASK C
Activities on the critical path must be closely monitored and (3 Days)

completed on time to ensure the project is finished within 34 TASK D

days. (6 Days)

TASK E TASK F
(7 Days) (8 Days)

TASK G
(5 Days)

TASK H
(4 Days)
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XI. CONCLUSION
In conclusion, both PERT and CPM are valuable tools in the project
manager's toolkit. The selection between them should be based on the specific
needs and uncertainties of the project at hand, with a focus on effective
communication, adaptation, and strategic decision-making throughout the project
lifecycle.
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X. COMPARISON BETWEEN PERT / CPM

The critical path method (CPM) and program evaluation and review technique
(PERT) are both project scheduling techniques. But they aren’t interchangeable. We’ve
been talking about CPM, but before we compare it to PERT let’s define the term.
PERT is used to get accurate time estimates for complicated projects. It uses an
algorithm to calculate the estimated duration for unpredictable activities. It focuses on
events and milestones on a PERT chart with nodes in the wireframe when developing
projects.
However, while these are two different techniques, PERT and CPM can be used
together for project planning and scheduling. The difference between them lies in that
PERT is about time planning and time management, while CPM is about time and
budgeting. PERT delivers a project quickly and CPM gets the project done on budget and
on time.
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REFERENCES:
1. Introduction to project management, “Project Smart”, (n.d.),
https://www.projectsmart.co.uk/lifecycle-and-methodology/introduction-
project-management.php
2. The importance of Project Management (with examples), (n.d.),
https://www.indeed.com/career-advice/career-development/importance-of-
project-management
3. What is Pert in project management?, “Versatile & Robust Project
Management Software”, (n.d.). https://www.wrike.com/project- management-
guide/faq/what-is-pert-in-project-management/
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REFERENCES:
4. Project Evaluation Review Technique (PERT), Corporate Finance
Institute, (2023, October 16),
https://corporatefinanceinstitute.com/resources/management/project-
evaluation-review-technique-pert/
• 5. Wikimedia Foundation, (2023, October 2), Program evaluation and
review technique, Wikipedia,
https://en.wikipedia.org/wiki/Program_evaluation_and_review_technique#
:~:text=The%20program%20evaluation%20and%20review,activities
%20( A%20through%20F)
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REFERENCES:
6. Asana, T., (2021, October 16), Use critical path method (CPM) for
Project Management [2023] • asana, https://asana.com/resources/critical- path-
method
7. GeeksforGeeks, (2020, March 2), Advantages and disadvantages of
critical path method (CPM), GeeksforGeeks.
https://www.geeksforgeeks.org/advantages-and-disadvantages-of-critical- path-
method-cpm/
THANK YOU!
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ASSIGNMENT:
Apply the PERT and Create a Network Diagram for the following tasks below.
Consider a project in electrical engineering where a team is tasked with designing and
implementing an electrical control system for a manufacturing plant. The project has several tasks,
and there is uncertainty regarding the duration of each task. Create a PERT analysis for this
project, including calculations and a network diagram.
1. Identifying the Tasks
Project Planning:
Task 1: Define project requirements
Task 2: Create system design specifications
Task 3: Plan resource allocation
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ASSIGNMENT:
Apply the PERT and Create a Network Diagram for the following tasks below.
Hardware Development
Task 4: Design electrical circuits
Task 5: Procure necessary components
Task 6: Assemble control panels
Software Development
Task 7: Develop control algorithms
Task 8: Program microcontrollers
Task 9: Test and debug software
Testing and Integration
Task 10: System integration and testing
Task 11: Client acceptance testing
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ASSIGNMENT:
Apply the PERT and Create a Network Diagram for the following tasks below.
2. Estimate Time
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ASSIGNMENT:
Apply the PERT and Create a Network Diagram for the following tasks below.
3. Dependency
Task Dependency Explanation
This task can start independently as it
Define Project Requirements None involves outlining the project's
requirements.
Design specifications depend on the
Create Design Specifications Define Project Requirements (Task 1)
finalized project requirements.
Resource allocation planning is based on
Plan Resource Allocation Define Project Requirements (Task 1)
project requirements.
Circuit design is guided by the system
Design Electrical Circuits Create Design Specifications (Task 2)
specifications.
Components procurement depends on the
Procure Necessary Components Design Electrical Circuits (Task 4)
finalized circuit designs.
Control panel assembly requires the
Assemble Control Panels Procure Necessary Components (Task 5)
components to be available.
Algorithm development is based on the
Develop Control Algorithms Create Design Specifications (Task 2)
system specifications.
Microcontroller programming is based on
Program Microcontrollers Develop Control Algorithms (Task 7)
the control algorithms.
Testing and debugging depend on the
Test and Debug Software Program Microcontrollers (Task 8)
programmed software.
Plan Resource Allocation (Task 3), Integration and testing require resources,
System Integration and Testing Assemble Control Panels (Task 6), assembled control panels, and tested
Test and Debug Software (Task 9) software.
Client acceptance testing is the final step
Client Acceptance Testing System Integration and Testing (Task 10) after system integration and testing are
completed.