ManagementSci

ence Uni
t-
I
V

Uni
t–I
V
Pr
ojectManagement
Pr
ojectManagement(
Proj
ectSchedul
i
ng)-I
tist
hepr
act
iceofi
nit
iat
ing,pl
anni
ng,
execut
ing,cont
rol
l
ing,andcl
osi
ngt
he 
wor
k ofa 
team 
toachi
evespeci
fi
cgoal
sand
meetspeci
fi
csuccesscr
it
eri
aatt
hespeci
fi
edt
ime.Thepr
imar
ychal
l
engeofpr
oject
managementi
stoachi
eveal
loft
hepr
ojectgoal
swi
thi
nthegi
venconst
rai
nts.A
pr
ojecti
sdef
inedbyasetofact
ivi
ti
es.Eachact
ivi
tyi
sdef
inedbyi
tsdur
ati
on(
ti
me
t
ocompl
etet
heact
ivi
ty)andi
tspr
edecessor
s(act
ivi
ti
est
hatmustbecompl
eted
bef
oret
heact
ivi
tycanst
art
).CPM (
Cri
ti
calPat
hMet
hod)i
susedt
oassi
stt
he
pr
ojectmanageri
nschedul
i
ngt
heact
ivi
ti
es(
i.
e.,whenshoul
deachact
ivi
tyst
art
).I
t
assumest
hatact
ivi
tydur
ati
onsar
eknownwi
thcer
tai
nty(
Dev
elopedf
ori
ndust
ri
al
pr
oject
sforwhi
chact
ivi
tyt
imesar
eknown)
.PERT(
Progr
am Ev
aluat
ionandRev
iew
Techni
que)i
susedt
oassi
sti
npr
ojectschedul
i
ngsi
mil
art
oCPM.Howev
er,PERT
assumest
hatact
ivi
tydur
ati
onsar
erandom v
ari
abl
es(
i.
e.,
probabi
l
ist
ic)
.

Exampl
e:Bui
l
dingaNewHomeWhenbui
l
dingahomei
ndi
vi
dualsubcont
ract
orar
e
hi
redt
o:―Gr
adeandpr
epar
ethel
and―Bui
l
dthef
oundat
ion―Fr
ameupt
hehome.
―I
nsul
atet
hehome―Wi
re(
Elect
ri
cit
y,Cabl
e,Tel
ephonel
i
nes)t
hehome―Dr
ywal
l
― Pai
nt(
insi
de)― Putv
iny
lsi
dingonhome― I
nst
allCar
pet― Landscape― Lay
Concr
ete(
ident
if
yti
meest
imat
edf
ordi
ff
erentact
ivi
ti
es)

Pr
ojectNet
wor
k

Ev
ent
:Anev
enti
sspeci
fi
cinst
antoft
imewhi
chi
ndi
cat
est
hebegi
nni
ngorendoft
he
act
ivi
tyev
enti
sal
soknownasaj
unct
ionornode.I
tisr
epr
esent
edbya ci
rcl
eand
t
heev
entnumberi
swr
it
tenwi
thi
ntheci
rcl
e.

Ar
rows-Anar
rowl
eadsf
rom t
ail
toheaddi
rect
ional
l
y.

I
ndi
cat
esanACTI
VITY,
ati
me-
consumi
ngef
for
tthati
srequi
redt
oper
for
m apar
tof
t
hewor
k

NodesnAnodei
srepr
esent
edbyaci
rcl
e.

I
ndi
cat
eEVENT,
apoi
nti
nti
mewher
eoneormor
eact
ivi
ti
esst
artand/
orf
ini
sh.

Act
ivi
ty:Ev
erypr
ojectconsi
stsofnumberofj
oboper
ati
onsort
askswhi
char
ecal
l
ed

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ManagementSci
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act
ivi
ty.

Cl
assi
fi
cat
ionofact
ivi
ti
es:

1)Cr
it
ical
act
ivi
ty 2)Non-
Cri
ti
cal
act
ivi
ty 3)Dummyact
ivi
ty
Cr
it
icalact
ivi
ty:I
nanet
wor
kdi
agr
am cr
it
icalact
ivi
tyar
ethosewhi
chconsumemor
e
t
hant
hei
rest
imat
edt
ime,
thepr
ojectwi
l
lbedel
ayed.I
tshownwi
tht
hickar
row

Non-
cri
ti
calact
ivi
ty:Suchact
ivi
ti
eshav
eapr
ovi
si
onoff
loatorsl
acksot
hat
,ev
eni
f
t
heyconsumeaspeci
fi
edt
imeov
erandabov
etheest
imat
edt
ime.

Dummyact
ivi
ty:Whent
woact
ivi
ti
esst
artatt
hesamei
nst
antoft
imel
i
keAand B
t
heheadev
entar
ejoi
nedbydot
tedar
rowsandt
hisi
sknownasdummyact
ivi
ty

2
Dummy
1

3 4 5

CPM Basi
cter
minol
ogy
:

Cr
it
icalPat
h:Cr
it
icalpat
hist
hatpat
hwhi
chconsumest
hemaxi
mum amountof
t
imeorr
esour
ces.I
tist
hatpat
hwhi
chhaszer
osl
ackv
alue.
Sl
ack:Sl
ackmeanst
het
imet
akent
odel
ayapar
ti
cul
arev
entwi
thoutaf
fect
ingt
he
pr
ojectcompl
eti
ont
ime.I
fapat
hhaszer
osl
ackt
hatmeansi
tist
hecr
it
ical
pat
h.

Sl
ack=LFT–EFT

Ear
li
estSt
artTi
me(
EST)
:Iti
stheear
li
estpossi
blet
imeatwhi
chanact
ivi
tycanst
art
,
andi
scal
cul
atedbymov
ingf
rom f
ir
stt
olastev
enti
nthenet
wor
kdi
agr
am.

Ear
li
estFi
nishTi
me(
EFT)
:Iti
stheear
li
estpossi
blet
imeatwhi
chanact
ivi
tycan
f
ini
sh

EFT=EST+Dur
ati
onofact
ivi
ty
Lat
estSt
artTi
me(
LST)
:Iti
sthel
atestpossi
blet
imebywhi
chanact
ivi
tycanst
art
wi
thoutdel
ayi
ngt
hedat
eofcompl
eti
onoft
hepr
oject
.

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ManagementSci
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LST=LFT–Dur
ati
onoft
heact
ivi
ty
Lat
estFi
nishTi
me(
LFT)
:Iti
sthel
atestt
imebywhi
cht
heact
ivi
tymustbecompl
eted.
Sot
hatt
heschedul
eddat
efort
hecompl
eti
onoft
hepr
ojectmaynotbedel
ayed.I
t
i
scal
cul
atedbymov
ingbackwar
ds

Fl
oat
:Fl
oati
nthenet
wor
kanal
ysi
sthatr
epr
esent
sthedi
ff
erencebet
weent
he
maxi
mum t
imeav
ail
abl
etof
ini
sht
heact
ivi
tyandt
het
imer
equi
redt
ocompl
etei
t.
Thebasi
cdi
ff
erencebet
weensl
ackandf
loatt
imesi
sasl
acki
susedwi
thr
efer
ence
t
oev
ent
,fl
oati
susedwi
thr
efer
encet
oact
ivi
ty.
Fl
oat
sar
ethr
eet
ypes:

Tot
alf
loat
:Iti
stheaddi
ti
onalt
imewhi
chanon-
cri
ti
calact
ivi
tycanconsumewi
thout
i
ncr
easi
ngt
hepr
ojectdur
ati
on.Howev
ert
otalf
loatmayaf
fectt
hef
loat
sinpr
evi
ous
andsubsequentact
ivi
ti
es.
Tot
alf
loat=LST–ESTorLFT–EFT

Fr
eef
loat
:Fr
eef
loatr
efer
stot
het
imebywhi
chanact
ivi
tycanexpandwi
thout
af
fect
ingsucceedi
ngact
ivi
ti
es.
Fr
eef
loat=ESTofHeadEv
ent–ESTofTr
ail
Event–Act
ivi
tydur
ati
on

I
ndependentf
loat
:Thi
sthet
imebywhi
chact
ivi
tymaybedel
ayedorext
ended
wi
thoutaf
fect
ingt
hepr
ecedi
ngorsucceedi
ngact
ivi
ti
esi
nanyaway
.
I
ndependentf
loat=ESTofHeadev
ent–LFTofTr
ail
event–Act
ivi
tydur
ati
on

AGant
tchar
tisahor
izont
albarchar
tdev
elopedasapr
oduct
ioncont
rolt
ooli
n1917
byHenr
yL.Gant
t,anAmer
icanengi
neerandsoci
alsci
ent
ist
.Fr
equent
lyusedi
n
pr
ojectmanagement
,aGant
tchar
tpr
ovi
desagr
aphi
cali
l
lust
rat
ionofaschedul
e

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ManagementSci
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t
hathel
pst
opl
an,
coor
dinat
e,andt
rackspeci
fi
ctasksi
napr
oject
. 

AGant
tchar
tisconst
ruct
edwi
thahor
izont
alaxi
srepr
esent
ingt
het
otalt
imespan
oft
hepr
oject
,br
okendowni
ntoi
ncr
ement
s(f
orexampl
e,day
s,weeks,ormont
hs)
andav
ert
icalaxi
srepr
esent
ingt
het
askst
hatmakeupt
hepr
oject(
forexampl
e,i
f
t
hepr
ojecti
sout
fi
tt
ingy
ourcomput
erwi
thnew sof
twar
e,t
hemaj
ort
asksi
nvol
ved
mi
ghtbe:
conductr
esear
ch,
choosesof
twar
e,i
nst
all
sof
twar
e).

TheseGant
tchar
tscoul
dbequi
tel
argewhenpr
oject
scont
ainedov
eronehundr
ed
act
ivi
ti
es.I
twasnotpr
act
ical
fort
hepr
ojectmanagert
odupl
i
cat
etheGant
tchar
tfor
hermanager
,andi
fthesuper
visoroft
hepr
ojectmanager
shadsev
eralpr
oject
manager
s,i
twasnotpr
act
icalt
odi
spl
ayal
loft
hepr
oject
s'Gant
tchar
tsunl
esst
her
e
wasqui
teal
otofwal
lspace.

Li
mit
ati
ons-Donotcl
ear
lyi
ndi
cat
edet
ail
sregar
dingt
hepr
ogr
essofact
ivi
ti
es;do
notgi
veacl
eari
ndi
cat
ionofi
nter
rel
ati
onshi
pbet
weent
hesepar
ateact
ivi
ti
es

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ManagementSci
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WhatI
sPERT?

PERTi sanacronym forProgram (
proj
ect)Ev al
uati
on andRevi
ewTechniquewhereby
planning,schedul
ing,organizi
ng,coordi
natingandcont rol
l
ingareinvol
vedtomake
suret hattheproj
ectsar edonewi thi
nduet i
me.Theemphasi soft hi
stechni
queis
focusedonst ar
tandcompl eti
onofev entsr at
herthanonact i
vi
ti
es.Theactivi
ti
es
takingplacebetweenev entsarenotspecif
ied.

Inthistechni
que,thefi
rstt
hingi
sthat,t
heproj
ecti
sdividedi
ntoactivi
ti
esandev ents,
andt henapr opersequenceisascer
tai
nedandeventuall
yanet workisconstr
ucted.
Afterwhich,t
imeneededi neachacti
vit
yiscal
cul
atedandcri
ticalpathconnect
ingal l
eventsisdetermined.

PERTi sanimportantt
echni
queinthesensethatithel
psi
nident
if
yingcri
ti
calar
eas
whichmi ghtunderminefastercompl
eti
onoft heworkandmor ei mport
antl
y,i
t
provi
desaf rameworktodetermi
nehowr esour
cescanbetransf
err
edf r
om onejob
toanother.

PERTwasdev
elopedbyt
heUSNav
yfort
hepl
anni
ngandcont
roloft
hePol
ari
s
mi
ssi
l
epr
ogr
am andt
heemphasi
swasoncompl
eti
ngt
hepr
ogr
am i
ntheshor
test
possi
blet
ime.I
n addi
ti
on,PERT had t
heabi
l
ityt
o copewi
th uncer
tai
n act
ivi
ty
compl
eti
ont
imes(
e.g.f
orapar
ti
cul
aract
ivi
tyt
hemostl
i
kel
ycompl
eti
ont
imei
s4
weeksbuti
tcoul
dbeany
wher
ebet
ween3weeksand8weeks)
.

WhatI
sCPM?

CPM isanacronymforcrit
icalpathmet hod;itcanal
soberefer
redt
oascr
it
icalpath
anal
ysis.CPM isar esource-ut
il
izat
ional gori
thm f
orschedul
ingasetofpr oj
ect
acti
vi
ti
es.Thi
spr oj
ectmanagementt echniquewasdev el
opedin1957byJames
KeleyofRami
l ngt
onRandandMor ganWal kerofDupoint
.

Crit
icalpathmethodidenti
fi
esthesequenceofcr ucialandinter
dependentstepst
hat
compr i
seawor kplanfrom star
ttof i
nish.I
talsoi denti
fi
esnon-cri
ticalt
asks.The
conceptofcr it
icalpathmet hodrecognizesthatcompl etionofsomet asksina
proj
ecti sdependentonthecompl et
ionofothert asks.Someact i
vit
iescannotstar
t
unti
l ot
hersarefini
shed.

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ManagementSci
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A good crit
icalpath schedule can helpt oidentif
yt he acti
vit
ies t
hatmustbe
compl et
edont i
mei nordertocompl etethewhol eproj
ectont ime.Also,Itcantel
l
theear l
i
estandl atestdateseachact i
vi
tycanst artoninor dert omai nt
ainthe
scheduleandmor eimportant
ly,showt hetasksthatcanbedel ayedandf orhowlong
withoutimpacti
ngtheoverall
projectschedule.

CPM wasdev
elopedbyDuPontandt
heemphasi
swasont
het
rade-
offbet
weent
he
costoft
hepr
ojectandi
tsov
eral
lcompl
eti
ont
ime(
e.g.f
orcer
tai
nact
ivi
ti
esi
tmaybe
possi
blet
odecr
easet
hei
rcompl
eti
ont
imesbyspendi
ngmor
emoney-how does
t
hisaf
fectt
heov
eral
lcompl
eti
ont
imeoft
hepr
oject
?)

TheDi
ff
erenc
eBet
weenPERTAndCPMI
nTabul
arFor
m

BASI
SOF
PERT CPM
COMPARI
SON

PERT i s a pr obabi
l
isti
c The CPM i s a deter
mini
sti
c
Ty
peofTool
pr
ojectmanagementt
ool.  pr oj
ectmanagementt
ool.

PERT i s an ev ent-
ori
ented
CPM isanact i
vit
y-or
ient
edt ool
,
tool,wher eby the network
thenetwor kinter
estisfocused
i
nt er
est is f ocused upon
Focus upont hest artandcompl etion
startorcompletionofevents
of activ
iti
es and not ev ents
and not on act i
vit
ies
themselves.
themselves. 

PERTi susef ulforresear

ch
CPM i s usef ul for t he
anddev elopmentpr oj
ectas
constr
uctionproj
ectsbecauseit
Usef
ulness they compr ise of t he
comprises of the predict
able
unpredictable t asks and
tasksandactiv
iti
es.
acti
vit
ies. 

PERTtechniqueinv ol
vesuse CPM techni
queinvol
vesuseof
Ter
minol
ogy ofwordsli
keev ents,net
work ter
minol
ogylikear
row di
agr
am,
di
agram andslacks.  nodesandfl
oat.

PERT does notcat egor

ies CPM categorizesact
ivi
ti
esi nt
o
Groupi
ngof
acti
vit
iesint
ocrit
icalandnon cr i
ti
cal and non-cr
it
ical
Acti
vit
ies
-cr
it
icalacti
vi
ti
es. acti
vi
ti
es.

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 ManagementSci
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InPERT,dur
ati
onofact i
vi
ties
arenotesti
matedwi t
haf ai
rI n CPM,durat
ion ofact
ivi
tyi
s
Dur
ati
onof
degree of accuracy esti
mat edwi
thaf ai
rdegr
eeof
Act
ivi
ty
(act
ivi
ti
es ar e not so accur acy.
accurat
eanddefi
nit
e).

I
nPERT,al l
owancei smade I
nCPM,noal lowancei
smade
Room for
for uncert
aint
ies in the foruncert
aint
iesinthedur
ati
on
Uncer
taint
y
durat
ionoft
imei nv
olv
ed.  ofti
mei nvol
ved.

In CPM, t he object
ive is
Ti
me-Cost I
nPERT,ti
mei
snotr
elat
ed
devel
oping an opt
imum t i
me-
Rel
ati
onshi
p t
ocost
. 
costr
elati
onshi
p. 

PERTi ssuit
ableindef
ense CPM issuitabl
eforpr
obl
emsi n
projects and R&D wher e i
ndustri
al set
ti
ng, pl
ant
Appl
i
cat
ion
activi
ty time cannot be maintenance,ci
vi
lconst
ruct
ion
rel
iablypr
edicted.  pr
ojectsetc.

I
mpor
tanc
eofPERTAndCPMI
nPr
ojec
tManagement

1.Enhancesf
lexi
bil
it
yinhavingopt
imum ut
il
izat
ionofresour
ces.
2. 
Helpsmanagementt o payatt
enti
ontof ew acti
vit
iesthatarecrit
ical
,
i
nsteadofconcentr
ati
ngonallact
ivi
ti
esatall
timeswithequalemphasi
s.
3.PERTandCPM hel pprojectmanagerst
omaket i
melydecisi
onsandtake
di
scer
ningact
ionst
oreducet
hepr
obabi
l
ityofpr
ojectdel
ay.
4.Itiseasyt hroughPERT andCPM t oaccuratelydeterminet hecorr
ect
scheduleforcompletionofthepr
ojectbasedont heavail
ableresour
ces.
5.Throught hetechniques,itissi
mpl etodi v
idet heacti
v i
ti
esandev ents
rel
atedt oapr ojectandmakei tpossibletoco- ordi
natet heworksof
dif
ferentdepart
ment sinv
olvedi
nthecompl eti
onoft heproj
ect.

Fr
amewor
kforPERTandCPM
Essent
ial
l
y,t
her
ear
esi
xst
epswhi
char
ecommont
obot
hthet
echni
ques.The
pr
ocedur
eisl
i
stedbel
ow:

1.Def
inet
hePr
ojectandal
lofi
tssi
gni
fi
cantact
ivi
ti
esort
asks.ThePr
oject(
madeup
ofsev
eral
tasks)shoul
dhav
eonl
yasi
ngl
est
artact
ivi
tyandasi
ngl
efi
nishact
ivi
ty.

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 ManagementSci
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2.Dev
elopt
her
elat
ionshi
psamongt
heact
ivi
ti
es.Deci
dewhi
chact
ivi
ti
esmustpr
ecede
andwhi
chmustf
oll
owot
her
s.

3.Dr
aw t
he“
Net
wor
k”connect
ingal
ltheact
ivi
ti
es.EachAct
ivi
tyshoul
dhav
euni
que
ev
entnumber
s.Dummyar
rowsar
eusedwher
erequi
redt
oav
oidgi
vi
ngt
hesame
number
ingt
otwoact
ivi
ti
es.

4.Assi
gnt
imeand/
orcostest
imat
est
oeachact
ivi
ty

5.Comput
ethel
ongestt
imepat
hthr
ought
henet
wor
k.Thi
siscal
l
edt
hecr
it
ical
pat
h.

6.Uset
heNet
wor
ktohel
ppl
an,
schedul
e,moni
torandcont
rol
thepr
oject
.

TheKeyConceptusedbyCPM/
PERTi
sthatasmal
lsetofact
ivi
ti
es,
whi
chmakeup
t
hel
ongestpat
hthr
ought
heact
ivi
tynet
wor
kthatcont
rolt
heent
ir
epr
oject
.Ift
hese
“
cri
ti
cal
” act
ivi
ti
es coul
d be i
dent
if
ied and assi
gned t
oresponsi
ble per
sons,
managementr
esour
ces coul
d be opt
imal
l
yused byconcent
rat
ing on t
he f
ew
act
ivi
ti
eswhi
chdet
ermi
net
hef
ateoft
heent
ir
epr
oject
.

Si
gni
fi
canceofPERT/CPM

Ther
ear
emanyv
ari
ati
onsofCPM/
PERTwhi
chhav
ebeenusef
uli
npl
anni
ngcost
s,
schedul
i
ngmanpowerandmachi
net
ime.Themai
nsi
gni
fi
canceofusi
ngCPM/
PERT
i
sthat
,theyanswert
hef
oll
owi
ngi
mpor
tantquest
ionsofapr
oject
,

Howl
ongwi
l
ltheent
ir
epr
ojectt
aket
obecompl
eted?Whatar
ether
isksi
nvol
ved?

Whi
char
ethecr
it
icalact
ivi
ti
esort
asksi
nthepr
ojectwhi
chcoul
ddel
ayt
heent
ir
e
pr
ojecti
ftheywer
enotcompl
etedont
ime?

I
sthepr
ojectonschedul
e,behi
ndschedul
eoraheadofschedul
e?

I
fthepr
ojecthast
obef
ini
shedear
li
ert
hanpl
anned,whati
sthebestwayt
odot
his
att
hel
eastcost
?

Act
ivi
ty A B C D E F G H

I
mmedi
atePr
edecessor -
-- -
-- A A,
B A,
B C D,
F E,
G

Page|
8
ManagementSci
ence Uni
t-
I
V

Exampl
e-I
ll
ust
rat
ionofnet
wor
kanal
ysi
sofami
norr
edesi
gnofapr
oductandi
ts
associ
atedpackagi
ng.Howl
ongwi
l
litt
aket
ocompl
etet
hispr
oject
?

Whati
sthe mi
nimum possi
blet
ime i
n whi
ch we can compl
etet
his pr
oject
?

Forcl
ari
ty,
thi
sli
sti
skeptt
oami
nimum byspeci
fyi
ngonl
yimmedi
ater
elat
ionshi
ps

Page|
9
ManagementSci
ence Uni
t-
I
V

1-
3-5-
7-8-
9-11=24

Cr
it
ical
Pat
htakes24weeksf
ort
hecompl
eti
onoft
hepr
oject

AnExampl
e-Cal
cul
ati
onofTi
meEst
imat
esi
nPERT

I
nthenet
wor
koff
igur
ebel
ow,t
hePERTt
imeest
imat
esoft
heact
ivi
ti
esar
ewr
it
ten
al
ong t
heact
ivi
tyar
rowsi
ntheor
der
 t
o-t
m-t
p. 
Comput
etheexpect
ed t
imeand
v
ari
ance f
oreach act
ivi
ty.Al
so comput
ethe expect
ed dur
ati
on and st
andar
d
dev
iat
ionf
ort
hef
oll
owi
ngpat
hsoft
henet
wor
k.

 
  
  
  
  
  
(a)10-
20-
50-
80-
90(
20-70)

 
  
  
  
  
  
(b)10-
30-
50-
70-
90

 
  
  
  
  
  
(c)10-
40-
60-
80-
90(
40-
50)

Thecomput
ati
onofexpect
edt
imesandv
ari
ancesf
ordi
ff
erentact
ivi
ti
esar
ecar
ri
ed
i
nat
abl
egi
venbel
ow.

Expect
edTi
met
E=(
to+4t
m +t
p)/6

2=[(
Var
ianceσ tp-t
o)/6]
2

Act
ivi
ty Ti
meEst
imat
es Expect
ed Var
iance
Ti
me
i
  
  
  
  
  
  
 j t
o 
  
  
  
  
  
tm 
  
  
  
  
 t
p σ2

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10
ManagementSci
ence Uni
t-
I
V

t
E

10 
  
  
  
  
 206 
 
   
  
  
  
  
9  
  
  
  
  
 12 9.
00 1.
00

10 
  
  
  
  
 303 
 
   
  
  
  
  
5  
  
  
  
  
  
9 5.
33 1.
00

10 
  
  
  
  
 4010 
 
  
  
  
 14 
  
  
  
  
  
18 14.
00 1.
78

20 
  
  
  
  
 507 
 
   
  
  
  
10 
  
  
  
  
  
13 10.
00 1.
00

20 
  
  
  
  
 703 
 
   
  
  
  
  
4  
  
  
  
  
  
 8 4.
5 0.
69

30 
  
  
  
  
 50 
4  
  
  
  
  
 10 
  
  
  
  
  
129.
33 1.
78

40 
  
  
  
  
 50 
 8 
  
  
  
  
  
11 
  
  
  
  
  
1411.
00 1.
00

40 
  
  
  
  
 60 
5  
  
  
  
  
10 
  
  
  
  
  
15 10.
00 2.
78

50 
 
  
  
  
  
 703 
 
   
  
  
  
 4 
  
  
  
  
  
 5 4.
00 0.
11

50 
 
  
  
  
  
 8011 
 
  
  
  
  
 15 
  
  
  
  
 1714.
67 1.
00

60 
 
  
  
  
  
 807 
 
   
  
  
  
  
9  
  
  
  
  
 12 9.
17 0.
69

70 
 
  
  
  
  
 904 
 
   
  
  
  
  
8  
  
  
  
  
  
107.
67 1.
00

Page|
11
ManagementSci
ence Uni
t-
I
V

80 
 
  
  
  
  
 906 
 
   
  
  
  
  
7  
  
  
  
  
 9 7.
17 0.
25

Exampl
e-Cal
cul
ati
onofTi
meEst
imat
esi
nCPM

I
nthe pr
ojectnet
wor
kgi
ven i
nfi
gur
e bel
ow,act
ivi
ti
esand t
hei
rdur
ati
onsar
e
speci
fi
edatt
heact
ivi
ti
es.Fi
ndt
hecr
it
ical
pat
handt
hepr
ojectdur
ati
on

Cal
cul
ati
onsi
nNet
wor
kAnal
ysi
s

Thef
oll
owi
ngcal
cul
ati
onsar
erequi
redi
nnet
wor
kanal
ysi
sinor
dert
opr
epar
ea
schedul
eoft
hepr
oject
.

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12
ManagementSci
ence Uni
t-
I
V

a.Tot
alcompl
eti
ont
imeoft
hepr
oject
b.Ear
li
estt
imewheneachact
ivi
tycanst
art(
i.
e.ear
li
estst
artt
ime)
c.Ear
li
estt
imewheneachact
ivi
tycanf
ini
sh(
i.
e.ear
li
estf
ini
shedt
ime)
d.Lat
estt
imewheneachact
ivi
tycanbest
art
edwi
thoutdel
ayi
ngt
hepr
oject(
i.
e.
l
atestst
artt
ime)
e.Lat
estt
imewheneachact
ivi
tycanbef
ini
shedwi
thoutdel
ayi
ngt
hepr
oject(
i.
e.
l
atestf
ini
sht
ime)
f
. Fl
oatoneachact
ivi
ty(
i.
e.t
imebywhi
cht
hecompl
eti
onofanact
ivi
tycanbe
del
ayedwi
thoutdel
ayi
ngt
hepr
oject
)
g.Cr
it
ical
act
ivi
tyandcr
it
ical
pat
h

Thesy
mbol
susedi
nthecal
cul
ati
onsar
eshowni
ntabl
ebel
ow.

Sy
mbol
Descr
ipt
ion
Ei Ear
li
estoccur
rencet
imeofev
enti
Lat
estal
l
owabl
eoccur
rencet
ime
Lj
ofev
entj

i
-j
Est
imat
ed compl
eti
on t
ime of
t
E
act
ivi
ty(
i,j
)
Ear
li
estst
art
ingt
imeofact
ivi
ty(
i,
(
EST)
ij
j
)
Ear
li
estf
ini
shi
ngt
imeofact
ivi
ty(
i,
(
EFT)
ij
j
)
(
LST)
ijLat
estst
art
ingt
imeofact
ivi
ty(
i,j
)

(
LFT)
ij Lat
estf
ini
shi
ngt
imeofact
ivi
ty(
i,j
)

Thecomput
ati
onsar
emadei
nfol
l
owi
ngst
eps.

(
a)For
war
dPassComput
ati
ons:

Page|
13
ManagementSci
ence Uni
t-
I
V

(
b)Backwar
dPassComput
ati
ons:

(
c)Cal
cul
ati
onofSl
ack:

Ev
entsl
acki
sdef
inedast
hedi
ff
erencebet
weent
hel
atestev
entandear
li
estev
ent
t
imes.

Sl
ackf
orheadev
ent=Lj 
-Ej Sl
ackf
ort
ail
event=Li 
-Ei

Thecal
cul
ati
onsf
ort
heabov
etakenexampl
enet
wor
kar
esummar
isedbel
owi
nthe
t
abl
e.

S(
i)
Pr
edecessorSuccessor
  
  i-j
t
E (
EST)
ij (
EFT)
ij (
LST)
ij (
LFT)
ij
Ev
enti Eventj
Sl
ack

5 10 7 0 7 0 7 0

5 15 12 0 12 7 19 -

5 20 17 0 17 5 22 -

10 20 15 7 22 7 22 0
10 25 9 7 16 21 30 -
15 30 11 12 23 19 30 7
20 25 5 22 27 25 30 -
20 30 8 22 30 22 30 0
25 35 10 27 37 30 40 3
25 45 15 27 42 35 50 -

Page|
14
ManagementSci
ence Uni
t-
I
V

30 35 10 30 40 30 40 0
30 40 8 30 38 35 43 -
35 45 10 40 50 40 50 0
40 45 7 38 45 43 50 5

(
d)Det
ermi
nat
ionofCr
it
ical
Pat
h:

Thesequenceofcr
it
ical
act
ivi
ti
esi
nanet
wor
kiscal
l
edt
hecr
it
ical
pat
h.The
act
ivi
ti
eswi
thzer
osl
ackofheadev
entandzer
osl
ackf
ort
ail
event
,ar
ecal
l
edas
cr
it
ical
act
ivi
ti
es.I
nthet
akennet
wor
k,t
hef
oll
owi
ngact
ivi
ti
esar
ecr
it
ical
act
ivi
ti
es:
 
5
-10,
10-20,
20-30,
30-35,
35-45.
Thust
hecr
it
ical
pat
his 
A-E-G-K-M.
 
Cr
it
ical
pat
hdur
ati
oni
s 7+15+8+10+10=50.

Benef
it
sofPERT/CPM

Usef
ulatmanyst
agesofpr
ojectmanagement

Mat
hemat
ical
l
ysi
mpl
e

Gi
vecr
it
ical
pat
handsl
ackt
ime

Pr
ovi
depr
ojectdocument
ati
on

Usef
uli
nmoni
tor
ingcost
s

mi
nimum pr
ojectcompl
eti
ont
ime

Li
mit
ati
onst
oCPM/
PERT

Cl
ear
lydef
ined,
independentandst
abl
eact
ivi
ti
es

Speci
fi
edpr
ecedencer
elat
ionshi
ps

Ov
eremphasi
soncr
it
ical
pat
hs

Pr
ojectCr
ashi
ng

Cr
ashi
ng-Pr
ojectcr
ashi
ngi
sthemet
hodf
orshor
teni
ngt
hepr
ojectdur
ati
onby
r
educi
ngt
het
imeofoneormor
ecr
it
icalact
ivi
ti
est
olesst
hant
hei
rnor
malt
ime.

Page|
15
ManagementSci
ence Uni
t-
I
V

Cr
ashi
ngi
sachi
evedbydev
oti
ngmor
eresour
ces.Thus,
thecostassoci
atedwi
tht
he
pr
ojecti
sincr
eased.

Obj
ect
ive:
Tor
educepr
ojectdur
ati
on;
whi
l
emi
nimi
zi
ngcostofcr
ashi
ng.

Ti
me-
CostTr
adeof
f -I
nCr
ashi
ngi
fcosti
ncr
easest
hent
imedecr
eases.Ti
meand
costar
ethusi
nver
sel
yrel
ated.

CostSl
ope

Cr
ashi
ngofNet
wor
k:Af
teri
dent
if
yingt
hecr
it
icalpat
h,i
tisnecessar
ytoi
dent
if
ythe
pr
ior
it
ytocr
asht
heact
ivi
ti
esbycal
cul
ati
ngt
hecostsl
ope
Forr
educi
ngt
hedur
ati
onext
raexpendi
tur
etobei
ncur
red,butt
osav
eresour
ces,
or
gani
zat
ionskeept
hisext
raexpendi
tur
eatami
nimum.

CT=Cr
ashTi
me
Tot
alCost
O
OT=Opt
imum Ti
me

NT=Nor
mal
Time I
ndi
rectCost

Di
rectCost

Page|
16
ManagementSci
ence Uni
t-
I
V

Exampl
e-Gi
vent
hef
oll
owi
ngdat
a,wor
koutt
hemi
nimum dur
ati
onoft
hepr
oject
andcor
respondi
ngcost
Nor
mal Cr
ashi
ng Nor
mal Cr
ashi
ng
Act
ivi
ty Job
t
ime t
ime cost cost
A 1-
2 10 6 400 600
B 1-
3 4 2 100 140
C 2-
4 6 4 360 440
D 3-
4 8 4 600 900
E 2-
5 8 6 840 1100
F 4-
6 6 2 200 300
G 5-
6 10 8 1200 1400
Sol
uti
on:

Nor
mal Cr
ashi
n Nor
mal Cr
ashi
ng C N
Act
ivi
ty Job t
ime g cost cost Pr
ior
it
ies
CostSl
ope C
(
NT) t
ime (
NC) (
CC)
(
CT)
C

NT CT

A 1-
2 10 6 400 600 50 1
B 1-
3 4 2 100 140 20
C 2-
4 6 4 360 440 40
D 3-
4 8 4 600 900 75
E 2-
5 8 6 840 1100 130 2
F 4-
6 6 2 200 300 50
G 5-
6 10 8 1200 1400 100 3

Page|
17
ManagementSci
ence Uni
t-
I
V

8
2 5
1
6 0
1 6
0 6
1
8
4

Cr
it
ical
pat
his1-
2-5-
6andDur
ati
oni
s28day
s
Tot
alcosti
s=Di
rectcost+I
ndi
rectcost=(
10+4+6+8+8+6+10)+0=52/
-

1-
2act
ivi
tycr
ashi
ngby4day
s:

EST LFT
8
2 5
1
6 0
6 6 6
4
1
8
4

Cr
it
ical
pat
his1-
2-5-
6andDur
ati
oni
s24day
s

Tot
alcosti
s=Di
rectcost+I
ndi
rectcost=(
52+(
4x50)+0)=252/
-
5-
6act
ivi
tycr
ashi
ngby2day
s:

Page|
18
ManagementSci
ence Uni
t-
I
V

EST LFT
8
2 5
8
6
6 6 6
4
1
8
4

Cr
it
ical
pat
his1-
2-5-
6andDur
ati
oni
s22day
s

Tot
alcosti
s=Di
rectcost+I
ndi
rectcost=(
252+(
2x100)+0)=452/
-

2-
5act
ivi
tycr
ashi
ngby2day
s:

6
2 5
8
6
0 0 6 6 6
4
1
8 20 20
4 12 14
3

Cr
it
ical
pat
his1-
2-5-
6andPr
ojectDur
ati
oni
s20day
s
Tot
alcosti
s=Di
rectcost+I
ndi
rectcost=(
452+(
2x130)+0)=712/
-

Opt
imum cost
=712/
- Opt
imum Dur
ati
on=20day
s

Page|
19