PROJECT MANAGEMENT

CPM & PERT TECHNIQUES

Prof. Reena Patil

 FLOW OF PRESENTATION

 INTRODUCTION
 NETWORK PLANNING
 ESTIMATING TIME
 CPM
 PERT
 Project Management

Project
• A project is an interrelated set of activities that has a definite
starting and ending point and that results in a unique product
or service.

Project management
• Project management is a scientific way of planning, implementing,
monitoring & controlling the various aspects of a project such as time,
money, materials, manpower & other resources.
 Network Planning Methods

 Methods used for network planning are:

CPM
PERT

 Managing a project with network planning methods involves four steps:

1. Describing the Project.

2. Diagramming the Network.
3. Estimating time of completion.
4. Monitoring Project Progress.
 NETWORK
TECHNIQUES
• PERT • CPM
– Program Evaluation – Critical Path
and Review Method
– Developed by El
Technique
Dupont for
– developed by the US Chemical Plant
Navy with Booz Shutdown Project-
Hamilton Lockheed about same time
on the Polaris as PERT
Missile/Submarine
program 1958

• Both use same calculations, almost similar

• Main difference is probabilistic and deterministic in time
estimation
 Objective Of
Networking

1)Helpful in Planning.
2)Inter-Relationship of various activities.
3)Cost Control.
4)Minimization of Maintenance.
5)Reduction of time.
6)Control on Idle Resources.
7)Avoiding Delays , interruptions.
 Continue..
1)Helpful in planning : Network analysis is
powerful tool for planning , scheduling and
controlling.
2)Inter-Relationship of various activities:
Network analysis creates inter-relationship
and inter dependence of various activities of
project or a programme.
3)Cost Control : In certain cases we can measure
cost of delay in the completion of the project.
This cost can be compared to the cost of the
resources required to carry out various
activities at various speed.
4)Minimization of Maintenance: Network
analysis helps the management to minimize
the total maintenance time.
 Project
scheduling by
PERT - CPM

• Planning
• Scheduling
• Controlling
 Project Planning : In the project
planning phase, you need to
perform the following activities

• Identify Tasks
• Determine Resources Requirement
• Estimate Cost and Time
• Specify inter-relationship between Tasks
• Develop network Diagram
 Identify various tasks or work
elements to be performed in
the project

• Identify various tasks or work elements to be performed in the project.

• Determine requirement of resources , such as men , material, and
machines ,for carrying out activities listed above.
• Estimate costs and time for various activities.
• Specify the inter – relationship among various activities.
• Develop network diagram.
 Project Scheduling

• Once the planning phase , scheduling of the project is when each of the
activities requried to be performed , taken up.
• Estimate the durations of activities.
• To calculate the total project project duration by applying network analysis
techniques.
 Project Control

• Project control refers to comparing the actual progress against the

estimated schedule.
• If significant difference are observed then you need to re-schedule the
project to update or revise the uncompleted part of the project.
 NETWORKING

• Activity : any portions of project (tasks) which required by project, uses up

resource and consumes time – may involve labor, paper work, contractual
negotiations, machinery operations Activity on Arrow (AOA) showed as
arrow, AON – Activity on Node
• Event : beginning or ending points of one or more activities, instantaneous
point in time, also called ‘nodes’
• Network : Combination of all project activities and the events
 Network Diagram

Concepts
• Activity
• Precedence relationship
• Successor
• Event
 Guidelines for network diagram

1. Before an activity can begin, its preceding

activities must be completed.
2. Arrows indicate logical precedence.
3. Flow of the diagram is from left to right.
4. Arrows should not intersect.
5. Dangling should be avoided.
 APPRAOCHES FOR
NETWORK DIAGRAM

ACTIVITY ON ARC(AOA):
• Uses arcs to represent activities and nodes
to represent events.
• It is Event Oriented.
3

1 2 6 7 8

4 5
 DUMMY ACTIVITY

AOA approach requires the addition of a Dummy

Activity to clarify the precedence relationships between
the two activities. It is a zero time activity and
consumes no resources.

Dummy Activity is used in two situations:

1) When two or more activities start and end at the same
nodes
1 3

2
2) When two or more activities share the same
precedence activity but not all the precedence are
shared.
1 3 5

2 4 6
 ACTIVITY ON NODE(AON):

Uses nodes to represent activities and arcs indicate

precedence relationships between them.
It is Activity Oriented.
 ESTIMATING TIME
OF
COMPLETION

Planning the schedule of the project

Time estimates include:

1) Total time for completion.
2) ES- Earliest start time: the earliest time at which the activity
can start given that its precedent activities must be completed first.

3) EF-Earliest finish time: equals to the earliest start time for the activity
plus the time required to complete the activity.

4) LF- Latest finish time: the latest time in which the activity can be
completed without delaying the project.

5) LS- Latest start time: equal to the latest finish time minus the time
required to complete the activity.
6) FORWARD PASS:
The early start and early finish times are calculated by
moving forward through the network and considering the
predecessor activities Considers maximum

7) BACKWARD PASS:
The latest start and finish times are calculated by moving backward through the
network.
Considers minimum

8) SLACK TIME:
Slack time for an activity is the difference between its earliest and latest start
time or between the earliest and latest finish time.
Critical path is the path of activities having zero Slack time.
 A Simple Project

Activity Immediate Expected

Predecessor Time
A - 5
B - 6
C A 4
D A, B 2
Precedence Diagram
ES Earliest Starting (time)
EF Earliest Finishing
LS Latest Starting
LF Latest Finishing
Slack Difference Time
 CRITICAL PATH
METHODS(CPM)

HISTORY :
It was developed by J.E.KELLY of REMINGTON-RAND
and M.R.WALKER of DU PONT and the emphasis was
on the trade-off between the cost of project and its overall
completion time. The first test was made in 1958,when CPM
was applied to the construction of a new chemical plant.

DEFINITION:
Critical path is the sequence of activities between a project’s
start and finish that takes the longest time to complete.
 STEPS IN DETERMINING
CRITICAL PATH

• Specify the individual activities.

• Determine the sequence of the activities.
• Draw the network diagram.
• Estimate the activity completion time.
• Identify the critical path.
• Update the CPM diagram.
Activit Preceden Normal time Normal
y ce (week) Cost (Rs)

A - 3 300
B A 3 30
C A 7 420
D A 9 720
E D 5 250
F B,C,E 6 320
G F 4 400
H F 13 780
I G 10 1000
Total 4220
 4 7

1 2 5 6

3
8
Overhead cost as per the given data- Rs.50
Paths in the network diagram :
A-D-F-G-I = 32
A-D-F-H = 31
A-C-F-H = 29
A-C-F-G-I = 30
A-B-E-F-H = 30
A-B-E-F-G-I = 31
Critical path – A-D-F-G-I = 32
4 7

1 2 6
5

3
8
 TIME ESTIMATES

o Optimistic time (to) – It is the shortest time in which the

activity can be completed.
o Most likely time (tm) – It is the probable time
required to perform the activity.
o Pessimistic time (tp) – It is the longest estimated time
required to perform an activity.
o Expected time
te = to + 4tm + tp
6
 STEPS IN PERT

1. Identify the specific activities.

2. Determine proper sequence of the activities.
3. Construct the network diagram.
4. Estimate the time required for each activity.
5. Determine the critical path.
6. Update the PERT chart.
Activity Descrip Preced Optimis Most Pessimi Expecte
tion ence tic time Likely stic d time
time time

A Initial - 12 16 26 17
design

B Survey A 6 9 18 10
market

C Build A 8 10 18 11
prototype

D Test C 2 3 4 3
prototype

E Redesign B,D 3 4 11 5
ing

F Market E 6 8 10 8
testing

G Set up F 15 20 25 20
productio
n
1 2 4 5 6 7

A-B-E-F-G = 60
A-C-D-E-F-G = 64 (CRITICAL PATH)
 Advantages of PERT

• Expected project completion time.

• Probability of completion before a specified date.

• The critical path activities that directly impact the completion

time.

• The activities that have slack time and that can lend resources
to critical path activities.

• Activity start and end dates.

 LIMITATIONS

• The PERT Formula Requires Too Much Work.

• The network charts tend to be large and unwieldy.
• Calculating the time estimates is very complex for all the
activities.
• Updating of the project is time consuming and requires high
costs.
• Emphasis is laid only on time factors and cost factors are
neglected.
 Difference between
CPM & PERT

CPM PERT
• CPM works with fixed • PERT works with probabilistic
deterministic time time
• CPM is useful for repetitive and • PERT is useful for non repetitive
non complex projects with a and complex projects with
certain degree of time estimates. uncertain time estimates.

• CPM includes time-cost trade off. • PERT is restricted to time

variable.

• CPM- for construction projects. • PERT- used for R&D programs.

Thank You…