Activity Network Diagram

Brian McAluney
OISM 470W
PowerPoint Training Presentation
 Overview
• Definition of an Activity Network Diagram
• History
• Basic Terms
• How can it be used in your organization?
• How the diagram works
• Example
• Activity Network Diagram Exercise
• Summary
Definition of an
Activity Network Diagram
• Also known as the Program Evaluation
Review Technique (PERT) or Critical Path
Diagram
• Tool used to control the length of projects
• Takes into account many aspects of
projects: task times, slack times, critical
tasks, etc.
Definition of an
Activity Network Diagram (cont.)
• Designed for research and development-
type projects
• Determines a probability distribution for a
project
 History
• Developed by the U.S. Department of
Defense
• First used as a management tool for
military projects
• Adapted as an educational tool for
business managers
 Basic Terms
Basic Vocabulary of the PERT Diagram:
• Activity – part of the project represented by an
arrow or line
• Best Estimate(B) – earliest completion time
• Critical path(CP) – the most time consuming path
through the diagram with no slack time
• Earliest Start Time(EST) – earliest possible time
for an activity to begin
• Network – the project shown graphically
• Most likely estimate(M) – length of time probably
needed
 Basic Terms (cont.)
• Expected Time(ET) – the average duration time
• Event – represents the start or finish of one or
more events (shown as a circle, square, or other
symbol)
• Latest Start Time(LST) – latest time an activity can
begin and still be completed before the next
activity
• Slack Time – latest start time minus earliest start
time for an activity
• Worst estimate(W) – pessimistic time estimate
How can it be used in your
organization?

Brainstorm ideas of where activity

network diagrams could be utilized
in your business practices…
How can it be used in your
organization?
• Finding minimum • Assigning specified
completion times times for parts of the
• Determining project
maximum completion • Creates a realistic
times schedule for the
• Value of time for each company
step in the project
 How the diagram works
Basic Rules:

• All preceding activities must be

completed before the project can begin
• The arrows represent the logical
precedence of the project
 How the Diagram Works (Cont.)
Procedure for development:

3. Identify all activities and relationships among

them
4. Sketch the diagram
5. Estimate the times for each activity, or node, in
the diagram
6. Determine the critical path
7. Evaluate the diagram for milestones and target
dates in the overall project
 Example
Activity Network Diagram

A D
C F

B E
 Exercise
Given the following formula, data, and
diagram, determine the critical path and
the expected time of the project.
 Time is represented in days
ET = 4(M) + 1(B) + 1(W) / 6
A = 2, B = 3, C = 1, D = 4, E = 3, F = 2, G = 2, H = 1,
and I = 3
 Exercise (cont.)

A D G
C F I
B E H
 Begin the Analysis
 Remember your steps  Find the earliest start
for PERT diagrams: time
 Using the given  Find the latest start
diagram, list all the time
steps
 Determine task times
 Determine slack and
the critical path
 Determine
relationships between
the tasks
 Summary
 Review the exercise
 Advantages of PERT
 Disadvantages of PERT
 Odds and Ends
 Review the Exercise

Did you arrive at the correct

answer?
Do these answers make sense?
 Advantages of PERT Diagrams
• Projecting plans before they begin
• Helps to separate planning and scheduling
functions of a project
• Controls projects
• Clarifies maintenance of the plan
• Shows dependency of different aspects of
the project
 Advantages of PERT Diagrams
• Allows for concentration on the steps
themselves and not the time required for
each
• Represents a realistic schedule
• Focuses attention on critical aspects of the
plan
• Changes can be made easily in the project
Disadvantages of PERT Diagrams
• Cannot handle all specific problems that
arise in each step of the project
• Different graphical representations can be
made easier in other types of control
processes
 Odds and Ends
 Activity Network Diagrams have many more
advantages than disadvantages
 They are used in all types of businesses
 The topics that were covered should act as
the key in helping you lead your company
in their next business project
 Works Cited
Bedworth, David D. and James E. Bailey.
Integrated Production Control Systems. New
York: John Wiley & Sons, 1987.
“PERT”. Internet. http://www.uwf.edu/coehelp/
studentaccounts/rnew/perthome.html. 12
February 2001.
Stamatis, D.H. TQM Engineering Handbook. New
York: Marcel Decker, Inc. , 1997.