Professional Documents
Culture Documents
2. Scheduling
3. Allocation Of Resources
4. Controlling
Need of PERT/CPM
Prediction of deliverables
Planning resource requirements
Controlling resource allocation
Internal program review
External program review
Performance evaluation
Uniform wide acceptance
PERT
PERT
• U S Navy (1958) for the POLARIS
missile program
• Multiple task time estimates
(probabilistic nature)
Project Evaluation • Activity-on-arrow network
and Review construction
Technique (PERT) • Non-repetitive jobs (R & D work)
PERT
PERT is based on the assumption that an activity’s duration
follows a probability distribution instead of being a single value
Three time estimates are required to compute the parameters of
an activity’s duration distribution:
pessimistic time (a) - the time the activity would take if things
did not go well
most likely time (m ) - the consensus best estimate of the
activity’s duration
optimistic time (b) - the time the activity would take if things
did go well
Critical event : the slack of an event is the difference between the latest &
earliest events time. The events with zero slack time are called as critical
events.
Critical activities : The difference between latest start time & earliest start
time of an activity will indicate amount of time by which the activity can be
delayed without affecting the total project duration. The difference is
usually called total float. Activities with 0 total float are called as critical
activities
CPM
CPM
• E I Du Pont de Nemours & Co. (1957)
for construction of new chemical plant
and maintenance shut-down
• Deterministic task times
Critical Path • Activity-on-node network
construction
Method (CPM) • Repetitive nature of jobs
CPM calculation
Path
A connected sequence of activities leading from the starting
event to the ending event
Critical Path
The longest path (time); determines the project duration
Critical Activities
All of the activities that make up the critical path
Critical path
Those activities which contribute directly to the overall duration of the
project constitute critical activities, the critical activities form a chain
running through the network which is called critical path.
Critical event : the slack of an event is the difference between the latest &
earliest events time. The events with zero slack time are called as critical
events.
Critical activities : The difference between latest start time & earliest start
time of an activity will indicate amount of time by which the activity can be
delayed without affecting the total project duration. The difference is
usually called total float. Activities with 0 total float are called as critical
activities
Benefits of CPM/PERT
Useful at many stages of project management
Mathematically simple
Give critical path and slack time
Provide project documentation
Useful in monitoring costs
Limitations to CPM/PERT
Clearly defined, independent and stable activities
Specified precedence relationships
Over emphasis on critical paths
Deterministic CPM model
Activity time estimates are subjective and depend on judgment
PERT assumes a beta distribution for these time estimates, but
the actual distribution may be different
PERT consistently underestimates the expected project
completion time due to alternate paths becoming critical
Example
Predecessor
Activity C
activity
2 4
A none F
A
B none
D
1
C A 6
D A B
3 5 G
E B
E
F C
G D&E
Example
Predecessor
Activity
activity
A none
B A
C A
D B
E C
F D ,E
3 D
B
A F
5 6
1 2
C 4 E
Project Crashing
Crashing
reducing project time by expending additional resources
Crash time
an amount of time an activity is reduced
Crash cost
cost of reducing activity time
Goal
reduce project duration at minimum cost
Time-Cost Relationship
Crashing costs increase as project duration decreases
Indirect costs increase as project duration increases
Reduce project length as long as crashing costs are less than
indirect costs
Time-Cost Tradeoff
Total project cost
Indirect
cost
Direct cost
time
Crashing Example
Cost
Normal Crush
Activity Slope
(Wks) (Wks)
(K$)
Tn Cn Tc Cc
A 9 10 6 16 2
B 8 9 5 18 3
C 5 7 4 8 1
D 8 9 6 19 5
E 7 7 3 15 2
F 5 5 5 5 -
G 5 8 2 23 5
9 1
9 14
C 7
5 F
A
0 5
9 D
8 22
G
0 B 2
8 E 5
7 2
17 17
8
10
Materials
Equipment
Working Capital
GERT
GERT
A network analysis technique used in project management.
p
Contd..
It represents a probabilistic output where any of q
outputs are possible
Each branch has an assigned probability
When no probability is given, the probability is assumed
to be one for each branch.
q
Example