Engmgmt Me2 PDF

PERT and CPM
OPSRES1
Maria Elena Yabut-Timbang, PIE

Introduction
A project involves a large number of interrelated

activities (or tasks) that must be completed on or
before a specified time limit, in a specified
sequence (or order) with specified quality and
minimum cost of using resources such as
personnel, money, materials, facilities and/or
space (Sharma, 2016)

Introduction
Difficult problem - Managing large-scale,
complicated projects effectively
Impact: stakes are high.
The first step in planning and scheduling a project is
to develop the work breakdown structure.
Time, cost, resource requirements, predecessors,
and people required are identified for each
activity.
A schedule for the project then can be developed.

Introduction
The program evaluation and review technique
(PERT) and the critical path method (CPM) are
two popular project management techniques to
help plan, schedule, monitor, and control
projects.
Originally the approaches differed in how they
estimated activity times.
PERT used three time estimates to develop a
probabilistic estimate of completion time.
CPM was a more deterministic technique.
So similar they are commonly considered one
technique, PERT/CPM.
Six Steps of PERT/CPM
1. Define the project and all of its significant activities or
tasks.
2. Develop the relationships among the activities and
decide which activities must precede others.
3. Draw the network connecting all of the activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network;
this is called the critical path.
6. Use the network to help plan, schedule, monitor, and
control the project.
The critical path is important since any delay in

these activities can delay the completion of the
project.
PERT/CPM
Given the large number of tasks in a project,
these are the important areas that need to be
highlighted:
When will the entire project be completed?
What are the critical activities or tasks in the project,
that is, the ones that will delay the entire project if
they are late?
Which are the non-critical activities, that is, the ones
that can run late without delaying the entire
project’s completion?

PERT/CPM
If there are three time estimates, what is the probability
that the project will be completed by a specific date?
At any particular date, is the project on schedule,
behind schedule, or ahead of schedule?
On any given date, is the money spent equal to, less
than, or greater than the budgeted amount?
Are there enough resources available to finish the
project on time?

General Foundry Example of PERT/CPM
General Foundry, Inc., a metalworks plant in Milwaukee, has long been

trying to avoid the expense of installing air pollution control equipment.
The local environmental protection group has recently given the
foundry 16 weeks to install a complex air filter system on its main
smokestack. General Foundry was warned that it will be forced to close
unless the device is installed in the allotted period. Lester Harky, the
managing partner, wants to make sure that installation of the filtering
system progresses smoothly and on time. When the project begins, the
building of the internal components for the device (activity A) and the
modifications that are necessary for the floor and roof (activity B) can
be started. The construction of the collection stack (activity C) can
begin once the internal components are completed, and pouring of
the new concrete floor and installation of the frame (activity D) can be
completed as soon as the roof and floor have been modified.

After the collection stack has been constructed, the high-temperature

burner can be built (activity E), and the installation of the pollution
control system (activity F) can begin. The air pollution device can be
installed (activity G) after the high-temperature burner has been built,
the concrete floor has been poured, and the frame has been installed.
Finally, after the control system and pollution device have been
installed, the system can be inspected and tested (activity H). (Render,
et al., 2012)

Activities and immediate predecessors for General

Foundry
Table 1
IMMEDIATE
ACTIVITY DESCRIPTION
PREDECESSORS
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame B
E Build high-temperature burner C
F Install control system C
G Install air pollution device D, E
H Inspect and test F, G

There are two common techniques for
drawing PERT networks.
Activity-on-node (AON) where the nodes represent activities.

each node (or circle) represents a specific task while the arcs
represent the ordering between tasks.
place the activities within the nodes, and the arrows are used to
indicate sequencing requirements.
Generally, these diagrams have no particular starting and
ending nodes for the whole project. The lack of dummy activities
in these diagrams always make them easier to draw and to
interpret.

There are two common techniques for
drawing PERT networks.
Activity-on-arc (AOA) where the arcs are used to represent the

activities.
at each end of the activity arrow is a node (or circle)
These nodes represent points in time or instants, when an activity
is starting or ending.
The arrow itself represents the passage of time required for that
activity to be performed.
These diagrams have a single beginning node from which all
activities with no predecessors may start.

Network for General Foundry

Activity Times
In some situations, activity times are known with

certainty.
The CPM assigns just one time estimate to each activity
and this is used to find the critical path.
In many projects there is uncertainty about activity times.
PERT employs a probability distribution based on three
time estimates for each activity, and a weighted
average of these estimates is used for the time estimate
and this is used to determine the critical path.
PERT often assumes time estimates follow a beta probability
distribution.

Beta Probability Distribution
The Beta distribution is a continuous probability

distribution having two parameters. One of its most
common uses is to model one's uncertainty about the
probability of success of an experiment. (Taboga, n.d.)
This continuous distribution has been found to be
appropriate, in many cases, for determining an
expected value and variance for activity completion
times.

Activity Times
The time estimates in PERT are:
Optimistic time (a) = time an activity will take if everything
goes as well as possible. There should
be only a small probability (say, 1/100) of
this occurring.
Pessimistic time (b) = time an activity would take assuming
very unfavorable conditions. There
should also be only a small probability
that the activity will really take this long.
Most likely time (m) = most realistic time estimate to complete
the activity

Activity Times
Beta Probability Distribution with Three Time Estimates

Activity Times
To find the expected activity time (t), the beta
distribution weights the estimates as follows:
a 4m b
t
6
To compute the dispersion or variance of activity completion time, we use

the formula:
2
b a
Variance
6

Activity Times
Time estimates (weeks) for General Foundry
Table 2
MOST EXPECTED
OPTIMISTIC, PROBABLE, PESSIMISTIC, TIME, VARIANCE,
ACTIVITY a m b t = [(a + 4m + b)/6] [(b – a)/6]2
A 1 2 3 2 4/36
B 2 3 4 3 4/36
C 1 2 3 2 4/36
D 2 4 6 4 16/36
E 1 4 7 4 36/36
F 1 2 9 3 64/36
G 3 4 11 5 64/36
H 1 2 3 2 4/36
25

How to Find the Critical Path
We accept the expected completion time for each task

as the actual time for now.
The total of 25 weeks in Table 2 does not take into
account the obvious fact that some of the tasks could
be taking place at the same time.
To find out how long the project will take we perform the
critical path analysis for the network.
The critical path is the longest path through the network.

General Foundry’s Network With Expected Activity Times
Figure 12.3
To find the critical path, we need to determine the following

quantities for each activity in the network.
1. Earliest start time (ES): the earliest time an activity can begin
without violation of immediate predecessor requirements.
2. Earliest finish time (EF): the earliest time at which an activity
can end.
3. Latest start time (LS): the latest time an activity can begin
without delaying the entire project.
4. Latest finish time (LF): the latest time an activity can end
without delaying the entire project.

In the nodes, the activity time and the early and
late start and finish times are represented in the
following manner.
ACTIVITY t
ES EF
LS LF
Earliest times are computed as:

Earliest finish time = Earliest start time
+ Expected activity time
EF = ES + t
Earliest start = Largest of the earliest finish times of
immediate predecessors
ES = Largest EF of immediate predecessors
At the start of the project we set the time to zero.
Thus ES = 0 for both A and B.
A t=2
ES = 0 EF = 0 + 2 = 2
Start
B t=3
ES = 0 EF = 0 + 3 = 3

General Foundry’s Earliest Start (ES) and Earliest
Finish (EF) times

Latest times are computed as
Latest start time = Latest finish time
– Expected activity time
LS = LF – t
Latest finish time = Smallest of latest start times

for following activities
LF = Smallest LS of following activities
For activity H:
LS = LF – t = 15 – 2 = 13 weeks

General Foundry’s Latest Start (LS) and Latest Finish (LF)
times

Once ES, LS, EF, and LF have been determined, it is a
simple matter to find the amount of slack time that
each activity has:
Slack = LS – ES, or Slack = LF – EF
From Table 3, we see activities A, C, E, G, and H have

no slack time.
These are called critical activities and they are said
to be on the critical path.
The total project completion time is 15 weeks.
Industrial managers call this a boundary timetable.

General Foundry’s Schedule and Slack Times
Table 3
EARLIEST EARLIEST LATEST LATEST ON
START, FINISH, START, FINISH, SLACK, CRITICAL
ACTIVITY ES EF LS LF LS – ES PATH?
A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes

General Foundry’s Critical Path

Probability of Project Completion
The critical path analysis helped determine the

expected project completion time of 15 weeks.
But variation in activities on the critical path can
affect overall project completion, and this is a
major concern.
If the project is not complete in 16 weeks, the
foundry will have to close.
PERT uses the variance of critical path activities
to help determine the variance of the overall
project.
Project variance = ∑ variances of activities
on the critical path
From Table 2 we know that

ACTIVITY VARIANCE
A 4/36
C 4/36
E 36/36
G 64/36
H 4/36
Hence, the project variance is
Project variance = 4/36 + 4/36 + 36/36 + 64/36 + 4/36 = 112/36 = 3.111

We know the standard deviation is just the

square root of the variance, so:
Project standard deviation T Project variance
3.11 1.76 weeks
We assume activity times are independent and
that total project completion time is normally
distributed.

Probability Distribution for Project
Completion Times

The standard normal equation can be applied as

follows:
Due date Expected date of completion

Z
T
16 weeks 15 weeks
0.57
1.76 weeks
Using a Z-table (Areas under the standard normal
curve) we find the probability of 0.71566
associated with this Z value.
That means the probability this project can be
completed in 16 weeks or less is 0.716.
Probability of General Foundry Meeting
the 16-week Deadline

What PERT Was Able to Provide
PERT has been able to provide the project manager
with several valuable pieces of information.
The project’s expected completion date is 15 weeks.
There is a 71.6% chance that the equipment will be in
place within the 16-week deadline.
Five activities (A, C, E, G, H) are on the critical path.
Three activities (B, D, F) are not critical but have some
slack time built in.
A detailed schedule of activity starting and ending
dates has been made available.

Examples of Linear Programming Model Formulation
Production Mix Problems
A fertile field for the use of LP is in planning for the optimal mix of products to
manufacture. A company must meet a myriad of constraints, ranging from financial concerns to
sales demand to material contracts to union labor demands. Its primary goal is to generate the
largest profit
possible.
1. The Electrocomp Corporation manufactures two electrical products: air conditioners and
large fans. The assembly process for each is similar in that both require a certain amount of
wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each
fan must go through 2 hours of wiring and 1 hour of drilling. During the next production
period, 240 hours of wiring time are available and up to 140 hours of drilling time may be
used. Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a
$15 profit. Formulate this LP production mix situation to find the best combination of air
conditioners and fans that yields the highest profit.
Solution
Decision Variables
Let: X1 = number of air conditioners to be produced
X2 = number of fans to be produced
The LP Model
Objective Function
Maximize profit = 25X1 + 15X2
subject to the constraints
3X1 + 2X2 240 (wiring)
2X1 + 1X2 140 (drilling)
X1, X2 0
2. Hal has enough clay to make 24 small vases or 6 large vases. He only has enough of a special
glazing compound to glaze 16 of the small vases or 8 of the large vases. The smaller vases
sell for $3 each, while the larger vases would bring $9 each. Formulate the problem.
Solution
Decision Variables
Let X1 = the number of small vases
X2 = the number of large vases
The LP Model
Objective Function
Maximize income = $3X1 + $9X2
Subject to:
Clay constraint: 1X1 + 4X2 24
Glaze constraint: 1X1 + 2X2 16
X1, X2 0
3. A fabric firm has received an order for cloth specified to contain at least 45 pounds of cotton
and 25 pounds of silk. The cloth can be woven out on any suitable mix of two yarns, A and B.
Material A costs $3 per pound, and B costs $2 per pound. They contain the following
proportions of cotton and silk (by weight):
Yarn Cotton (%) Silk (%)
A 30 50
B 60 10
What quantities (pounds) of A and B yarns should be used to minimize the cost of this order?
Solution
Decision Variables
Let A = amount of yarn A to be used
B = amount of yarn B to be used
C = total costs
The LP Model
Objective Function
Min C = 3A + 2B
Subject to: (constraints)
0.30A + 0.60B 45 lb (cotton)
0.50A + 0.10B 25 lb (silk)
X1, X2 0
Linear Programming Models: Graphical Solution
• The easiest way to solve a small LP problem is graphically.
• The graphical method only works when there are just two decision variables.
• When there are more than two variables, a more complex approach is needed as it is not
possible to plot the solution on a two-dimensional graph.
• The graphical method provides valuable insight into how other approaches work.
Example 1:
Hal has enough clay to make 24 small vases or 6 large vases. He only has enough of a special
glazing compound to glaze 16 of the small vases or 8 of the large vases. Let X1 the number of
small vases and X2 the number of large vases. The smaller vases sell for $3 each, while the
larger vases would bring $9 each.
(a) Formulate the problem.
(b) Solve graphically.
SOLUTION:
(a) Formulation
OBJECTIVE FUNCTION:
Maximize $3X1 + $9X2
Subject to : Clay constraint: 1X1 + 4X2 24
Glaze constraint: 1X1 + 2X2 16
X1, X2 ≥ 0
(b) Graphical solution

Point X1 X2 Income
A 0 0 $0
B 0 6 54
C 8 4 60*
D 16 0 48
*Optimum income of $60 will occur by making and selling 8 small vases and 4 large
vases.
Draw an isoprofit line on the graph from (20, 0) to (0, 62/3) as the $60 isoprofit line.
Note: Feasible region can be determined by shading/covering the region that satisfies each
constraint. The feasible region is the portion that is covered by the two constraints.
Example 2:
A fabric firm has received an order for cloth specified to contain at least 45 pounds of cotton and
25 pounds of silk. The cloth can be woven out on any suitable mix of two yarns, A and B.
Material A costs $3 per pound, and B costs $2 per pound. They contain the following proportions
of cotton and silk (by weight):
Yarn Cotton (%) Silk (%)
A 30 50
B 60 10
What quantities (pounds) of A and B yarns should be used to minimize the cost of this order?
Objective function: min. C = 3A + 2B
Constraints: 0.30A + 0.60B 45 lb (cotton)
0.50A + 0.10B 25 lb (silk)
Simultaneous solution of the two constraint equations reveals that A 39 lb, B 55 lb.
The minimum cost is C $3A $2B 3(39) (2)(55) $227.
** The shaded part is the feasible region
Other solution method:

The two-variable problems can also be solved using Algebraic method (Elimination or Substitution).
ninth edition
STEPHEN P. ROBBINS MARY COULTER
Chapter
Organizational
10 Structure and Design
© 2007 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
Defining Organizational Structure
• Organizational Structure
The formal arrangement of jobs within an organization.
• Organizational Design
A process involving decisions about six key elements:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
© 2007 Prentice Hall, Inc. All rights reserved. 10–5

Exhibit 10–1 Purposes of Organizing
• Divides work to be done into specific jobs and

departments.
• Assigns tasks and responsibilities associated with
individual jobs.
• Coordinates diverse organizational tasks.
• Clusters jobs into units.
• Establishes relationships among individuals,
groups, and departments.
• Establishes formal lines of authority.
• Allocates and deploys organizational resources.

Organizational Structure
• Work Specialization
The degree to which tasks in the organization are
divided into separate jobs with each step completed
by a different person.
Overspecialization can result in human diseconomies
from boredom, fatigue, stress, poor quality, increased
absenteeism, and higher turnover.

Departmentalization by Type
• Functional • Process
Grouping jobs by Grouping jobs on the
functions performed basis of product or
• Product customer flow
Grouping jobs by product • Customer
line Grouping jobs by type of
• Geographical customer and needs
Grouping jobs on the
basis of territory or
geography

Exhibit 10–2 Functional Departmentalization
• Advantages
• Efficiencies from putting together similar specialties and
people with common skills, knowledge, and orientations
• Coordination within functional area
• In-depth specialization
• Disadvantages
• Poor communication across functional areas
• Limited view of organizational goals

Exhibit 10–2 (cont’d) Geographical Departmentalization
• Advantages
• More effective and efficient handling of specific
regional issues that arise
• Serve needs of unique geographic markets better
• Disadvantages
• Duplication of functions
• Can feel isolated from other organizational areas

Exhibit 10–2 (cont’d) Product Departmentalization
+ Allows specialization in particular products and services

+ Managers can become experts in their industry
+ Closer to customers
– Duplication of functions
– Limited view of organizational goals

Exhibit 10–2 (cont’d) Process Departmentalization
+ More efficient flow of work activities

– Can only be used with certain types of products

Exhibit 10–2 (cont’d) Customer Departmentalization
+ Customers’ needs and problems can be met by specialists

- Duplication of functions
- Limited view of organizational goals

Organization Structure (cont’d)
• Chain of Command
The continuous line of authority that extends from
upper levels of an organization to the lowest levels of
the organization and clarifies who reports to who.

• Authority
The rights inherent in a managerial position to tell
people what to do and to expect them to do it.
• Responsibility
The obligation or expectation to perform.
• Unity of Command
The concept that a person should have one boss and
should report only to that person.

• Span of Control
The number of employees who can be effectively and
efficiently supervised by a manager.
Width of span is affected by:
Skills and abilities of the manager
Employee characteristics
Characteristics of the work being done
Similarity of tasks
Complexity of tasks
Physical proximity of subordinates
Standardization of tasks

Exhibit 10–3 Contrasting Spans of Control

• Centralization
The degree to which decision-making is concentrated
at a single point in the organizations.
Organizations in which top managers make all the decisions
and lower-level employees simply carry out those orders.
• Decentralization
Organizations in which decision-making is pushed
down to the managers who are closest to the action.
• Employee Empowerment
Increasing the decision-making authority (power) of
employees.

Exhibit 10–4 Factors that Influence the Amount of Centralization
• More Centralization
Environment is stable.
Lower-level managers are not as capable or experienced at
making decisions as upper-level managers.
Lower-level managers do not want to have a say in decisions.
Decisions are relatively minor.
Organization is facing a crisis or the risk of company failure.
Company is large.
Effective implementation of company strategies depends on
managers retaining say over what happens.

Exhibit 10–4 (cont’d) Factors that Influence the Amount of Centralization
• More Decentralization
Environment is complex, uncertain.
Lower-level managers are capable and experienced at making
decisions.
Lower-level managers want a voice in decisions.
Decisions are significant.
Corporate culture is open to allowing managers to have a say in
what happens.
Company is geographically dispersed.
Effective implementation of company strategies depends on
managers having involvement and flexibility to make decisions.

• Formalization
The degree to which jobs within the organization are
standardized and the extent to which employee
behavior is guided by rules and procedures.
Highly formalized jobs offer little discretion over what is to be
done.
Low formalization means fewer constraints on how
employees do their work.

Organizational Design Decisions
• Mechanistic Organization • Organic Organization
A rigid and tightly controlled Highly flexible and
structure adaptable structure
High specialization Non-standardized jobs
Rigid departmentalization Fluid team-based structure
Narrow spans of control Little direct supervision
High formalization Minimal formal rules
Limited information network Open communication
(downward) network
Low decision participation Empowered employees

Exhibit 10–5 Mechanistic versus Organic Organization
• High specialization • Cross-functional teams

• Rigid departmentalization • Cross-hierarchical teams
• Clear chain of command • Free flow of information
• Narrow spans of control • Wide spans of control
• Centralization • Decentralization
• High formalization • Low formalization

Under what
circumstances is each
design favored?
It “depends” on
contingency variables.

Contingency Factors
• Structural decisions are influenced by:
Overall strategy of the organization (Alfred Chandler )
Organizational structure follows strategy.
Size of the organization
Firms change from organic to mechanistic organizations as
they grow in size.
Technology use by the organization
Firms adapt their structure to the technology they use.
Degree of environmental uncertainty
Dynamic environments require organic structures;
mechanistic structures need stable environments.

Contingency Factors (cont’d)
• Strategy Frameworks:
Innovation
Pursuing competitive advantage through meaningful and
unique innovations favors an organic structuring.
Cost minimization
Focusing on tightly controlling costs requires a mechanistic
structure for the organization.
Imitation
Minimizing risks and maximizing profitability by copying
market leaders requires both organic and mechanistic
elements in the organization’s structure.

• Strategy and Structure
Achievement of strategic goals is facilitated by
changes in organizational structure that
accommodate and support change.
• Size and Structure

As an organization grows larger, its structure tends to
change from organic to mechanistic with increased
specialization, departmentalization, centralization,
and rules and regulations.

• Technology and Structure (Joan Woodward’s )
Organizations adapt their structures to their
technology.
Woodward’s classification of firms based on the
complexity of the technology employed:
Unit production of single units or small batches
Mass production of large batches of output
Process production in continuous process of outputs
Routine technology = mechanistic organizations
Non-routine technology = organic organizations

Exhibit 10–6 Woodward’s Findings on Technology, Structure,
and Effectiveness

• Environmental Uncertainty and Structure
Mechanistic organizational structures tend to be most
effective in stable and simple environments.
The flexibility of organic organizational structures is
better suited for dynamic and complex environments.

Common Organizational Designs
• Traditional Designs
Simple structure
Low departmentalization, wide spans of control, centralized
authority, little formalization
Functional structure
Departmentalization by function
– Operations, finance, human resources, and product
research and development
Divisional structure
Composed of separate business units or divisions with limited
autonomy under the coordination and control the parent
corporation.

Exhibit 10–7 Strengths and Weaknesses of Traditional
Organizational Designs

Exhibit 10–8 Contemporary Organizational Designs
Team Structure
• What it is: A structure in which the entire organization is made up of
work groups or teams.
• Advantages: Employees are more involved and empowered. Reduced
barriers among functional areas.
• Disadvantages: No clear chain of command. Pressure on teams to perform.
Matrix-Project Structure
What it is: A structure that assigns specialists from different functional
areas to work on projects but who return to their areas when
the project is completed. Project is a structure in which
employees continuously work on projects. As one project is
completed, employees move on to the next project.
• Advantages: Fluid and flexible design that can respond to environmental
changes. Faster decision making.
• Disadvantages: Complexity of assigning people to projects. Task and
personality conflicts.

Exhibit 10–8 (cont’d) Contemporary Organizational Designs
Boundaryless Structure
What it is: A structure that is not defined by or limited to artificial
horizontal, vertical, or external boundaries; includes virtual
and network types of organizations.
• Advantages: Highly flexible and responsive. Draws on talent wherever it’s
found..
• Disadvantages: Lack of control. Communication difficulties..

Organizational Designs (cont’d)
• Contemporary Organizational Designs
Team structures
The entire organization is made up of work groups or self-
managed teams of empowered employees.
Matrix and project structures
Specialists from different functional departments are assigned
to work on projects led by project managers.
Matrix and project participants have two managers.
In project structures, employees work continuously on
projects; moving on to another project as each project is
completed.

Exhibit 10–9 An Example of a Matrix Organization

• Contemporary Organizational Designs (cont’d)
Boundaryless Organization
An flexible and unstructured organizational design that is
intended to break down external barriers between the
organization and its customers and suppliers.
Removes internal (horizontal) boundaries:
– Eliminates the chain of command
– Has limitless spans of control
– Uses empowered teams rather than departments
Eliminates external boundaries:
– Uses virtual, network, and modular organizational
structures to get closer to stakeholders.

Removing External Boundaries
• Virtual Organization
An organization that consists of a small core of full-time
employees and that temporarily hires specialists to work on
opportunities that arise.
• Network Organization
A small core organization that outsources its major
business functions (e.g., manufacturing) in order to
concentrate what it does best.
• Modular Organization
A manufacturing organization that uses outside suppliers to
provide product components for its final assembly
operations.

Today’s Organizational Design
Challenges
• Keeping Employees Connected
Widely dispersed and mobile employees
• Building a Learning Organization
• Managing Global Structural Issues
Cultural implications of design elements

• The Learning Organization
An organization that has developed the capacity to
continuously learn, adapt, and change through the
practice of knowledge management by employees.
Characteristics of a learning organization:
An open team-based organization design that empowers
employees
Extensive and open information sharing
Leadership that provides a shared vision of the organization’s
future, support and encouragement
A strong culture of shared values, trust, openness, and a
sense of community.

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PERT and CPM

Maria Elena Yabut-Timbang, PIE

A project involves a large number of interrelated

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

The critical path is important since any delay in

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

General Foundry, Inc., a metalworks plant in Milwaukee, has long been

Maria Elena Yabut-Timbang, PIE

After the collection stack has been constructed, the high-temperature

Maria Elena Yabut-Timbang, PIE

Activities and immediate predecessors for General

Maria Elena Yabut-Timbang, PIE

Activity-on-node (AON) where the nodes represent activities.

Maria Elena Yabut-Timbang, PIE

Activity-on-arc (AOA) where the arcs are used to represent the

Maria Elena Yabut-Timbang, PIE

Network for General Foundry

Maria Elena Yabut-Timbang, PIE

In some situations, activity times are known with

Maria Elena Yabut-Timbang, PIE

The Beta distribution is a continuous probability

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

To compute the dispersion or variance of activity completion time, we use

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

We accept the expected completion time for each task

Maria Elena Yabut-Timbang, PIE

To find the critical path, we need to determine the following

Maria Elena Yabut-Timbang, PIE

Earliest times are computed as:

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

Latest finish time = Smallest of latest start times

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

Slack = LS – ES, or Slack = LF – EF

From Table 3, we see activities A, C, E, G, and H have

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

The critical path analysis helped determine the

From Table 2 we know that

Hence, the project variance is

Project variance = 4/36 + 4/36 + 36/36 + 64/36 + 4/36 = 112/36 = 3.111

Maria Elena Yabut-Timbang, PIE

We know the standard deviation is just the

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

The standard normal equation can be applied as

Due date Expected date of completion

Maria Elena Yabut-Timbang, PIE

Maria Elena Yabut-Timbang, PIE

(b) Graphical solution

** The shaded part is the feasible region

Other solution method:

STEPHEN P. ROBBINS MARY COULTER

© 2007 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

© 2007 Prentice Hall, Inc. All rights reserved. 10–5

• Divides work to be done into specific jobs and