CONSTRUCTION METHODS AND PROJECT MANAGEMENT

MODULE 3: CONSTRUCTION PROJECT PLANNING & SCHEDULING

LESSON 3: PERT & CPM

LEARNING OBJECTIVES
By the end of this module, you will be able to:
✓ Understand the definition of PERT.
✓ Understand the definition of CPM.
✓ Apply PERT and CPM in construction planning.
✓ Analyze how PERT and CPM works in construction planning,

INTORDUCTION

PERT is a Program Evaluation and Review Technique.

CPM is the Critical Path Method.

PERT and CPM were developed independently in the later part of 1950’s. These two are networks. A techniques used for planning and coordinating
large scale projects.

CPM was designed as a tool for planning, scheduling, and control of construction work. Its emphasis was on the work or activities to be managed.
The network diagram defined and focused attention on the job to be accomplished. The schedule derives the earliest and the latest times for their
start and finish.

PERT was developed as a result of looking for an improved method of planning and evaluating progress of a large scale research and development
program. It was designed to provide the management a periodic reporting of current status and an outlook for the future on meeting approved
plans and schedules. It answers the questions such as: “Is this a feasible schedule? And what are the probabilities of making it?”

PERT/CPM is a control tool for defining the parts of construction job and then putting them together in a network form. It serves as an aid to the
construction manager but it does not make decision for him nor does it guarantee good management. PERT/CPM only serves the project manager
to see the whole picture of the entire job. It encourages periodic re-evaluation and providing an accurate measure of progress. Thus, a person in-
charge of each work and the project manager know what is supposed to happen and when it is supposed to happen.

PERT/CPM Project Requirements

In all major projects of the government, PERT and CPM network is a mandatory requirements.

Under Presidential Decree (PD) 1594, Prescribing Policies, Guidelines, Rules and Regulations for government infrastructure contracts provides
that:

“The program of work shall include, among other things, estimates of the work items, quantities, costs and a PERT/CPM network of the project
activities in the preparation of the bidding documents, the government shall make and estimates of the actual number of working days required to
complete the project through PERT/CPM analysis of the project activities and corrected for holidays and weekends.”

On January 27, 1968, President Ferdinand E. Marcos issued Memorandum Circular No. 153 which provides that:

“In order that the performance discipline on the field could be controlled and easy reporting system could be made to facilitate the monitoring,
evaluation, inspection completion of infrastructure projects, all heads of departments and chief of bureaus and offices concerned are hereby
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required to change the old system of preparing the work programs of said projects from the Gantt Chart (Bar Type) to the PERT/CPM network.
Strict compliance herewith is enjoined.”

On June 19, 1968, the Executive Committee for Infrastructure Program implemented the Presidential Order in a letter to all implementing agencies
to wit:

“Your attention is invited to a Presidential Order requiring the preparation of a PERT/CPM diagram for every major project prior to their actual
construction.”

Section 6 of R.A. 5979 requires the application of PERT/CPM technique to all projects with an estimated cost of P100,000 or more. Thus,
PERT/CPM now has become an integral part as requirement of project construction management.

With the use of PERT/CPM, the project manager can easily obtain the following information:
1. The graphical display of project activities
2. An estimate of how long will the project last
3. Determine which activities are the most critical to timely project completion.
4. Determine how long any activity can be delayed without lengthening the project.

Three Phases of PERT/CPM

The three phases of PERT/CPM are:

1. Planning
2. Scheduling
3. Control-Monitor

Planning
Planning is defined as determining the relationship between the work operation and the sequence in which they are to be performed. Scheduling
or sequence involves distribution of work time to each worj operation and determining when to start and when to finish.
Each work operation can be performed in different ways at different costs and in different time duration. Most construction projects have specified
time of start and time of completion. When the contract time is less, in effect it requires higher indirect costs. Thus, in order to catch-up with the
allotted time, some of the operations must be speeded-up. Consequently, to speed up construction work requires higher direct cost because of
overtime, shift of work, additional manpower and equipment and various expensive methods which are not done on normal construction operations
with sufficient time duration.

However, there is a danger that shortening a single operation may only increase project cost but may not shortened construction time considering
that other operations have not been shortened. On the other hand, shortening all operations at the same time may only increase project cost more
than what is necessary to obtain the desired decrease of construction time.

The Critical Path Methods (CPM) offers the solution through systematic approach. The specific information provided by the CPM are enumerated
as follows:

1. PERT/CPM pinpoints the particular work operations whose completion times are responsible for controlling the complete date.
2. It provides a means of speeding up a project without excessive costs for overtime. Without the use of PERT/CPM when speeding up the
project overtime expenditures may be in total waste.
3. It gives a time leeway of float available for each of the non-critical work operations. The information on float time will give the project
manager that opportunity to maneuver in their planning and control of the operations.
4. It establishes time boundaries for operations with possibilities of shifting resources, equipment and manpower to meet time requirements.
5. PERT/CPM indicates the earliest starting date for each work operations and subcontractors for supply and delivery of materials.
6. It shows the most advantageous scheduling for all operations. This gives planning information as to time and cost in choosing methods,
equipment, crew and work hours.

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 7. It offers a means of assessing the effect on the overall project variations in one operation such as change orders.
8. In case of change order where the owner would not want to extend the contract time, PERT/CPM offers a means of re-scheduling the
operations but still to be completed at the least increase in cost.
9. With the critical path schedule as revised to reflect the change order, any claim if any, for additional payment will be understood both by
the owner and the contractor.
10. In case of serious delay due to weather, later material or equipment delivery, the network can be revised at that stage and new
computation is made to determine the new critical operation if any and revised float times determined for the non-critical operations.

In any project construction undertakings, planning is the most important consideration which includes:

1. Gathering of all the necessary input data to make the PERT/CPM works.
2. Planning phase is the main work of the contractor for being familiar and knowledgeable of his costing methods of doing business.
3. The contractor can seek assistance for the accomplishment of his work particularly the gathering of data, but his basic responsibility on
this matter cannot be delegated to any outsider group.
4. The contractor has the complete perception, experiences, resources, and interest in getting the project done in the best possible time
and cost.
5. The planning stages give the contractor a “dry run” on the construction of the project.
6. If the contractor wants an effective approach and use of the construction management, he must do it himself.
7. By performing the work personally, one obtains intimate fist hand knowledge of the job and gain insight and details of anticipated
problems.

Scheduling
In PERT/CPM, scheduling is defined as the process of translating the arrow diagram into time table of calendar days. This is done by the day date
table converting working days into calendar days which permits the inclusion of weekends, holidays, weather and other time lost.

The PERT/CPM schedule shows the relationships between the operations and the leeway limitations. All activities should be checked with the day
to day table. All crew and management restraints along the critical path should be verified and the restraints should be adjusted to give satisfactory
project completion. Non critical activities can be scheduled to more efficiently utilize manpower and available resources.

Job control though the use of PERT/CPM gives the management a reliable system identifying job problems within days instead of months. Progress
along the arrow diagram should be updated for immediate references. The diagram must show the statues of the project at any time and indicate
which activities can be started and to pinpoint the cause of the delay.

The PERT/CPM diagram should be updated periodically to account for:

1. Time discrepancies
2. Deliveries
3. Weather
4. Change Orders
5. Unexpected events or conditions

Updating of the diagram is based on the number of days the project is out of schedule.

Controlling and Monitoring

Flexibility and updated re-computations brought about by changing conditions is the key to a successful network programming. To keep the
schedule more up to date and meaningful, it can be done by hand but is more easier and less in cost if it is done with the assistance of computer
to have the following output.

1. The contactor is supplied with time status reports showing the overall status of the project in general and in particular.
2. The contractor is provided with revised schedules which reflect the actual work conditions and the project status.
3. The contractor is supplies with cost status reports showing how much money is being disbursed for what type of expenses.
4. The contractor should be supplied with those reports as frequently as desired or required to maintain control over the project.
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In the Planning Phase, there are five inputs that can be obtained:

1. A network diagram defining the activities in the project.

2. The duration of activities.
3. Cost estimates of the activities for monitoring of cost, cash flow requirements
4. Resources estimates
5. Trade indicators (responsibility) for activity grouping.

From the Schedule Phase, there are four output that can be obtained:

1. The schedule of activities in the network showing the following:

a. The Critical Activities.
b. The Earliest Start date for the activity
c. The Earliest Finish date for each activity
d. The Latest Start date for each activity
e. The Latest Finish date for each activity
f. The Float which refers to the amount of extra time available for an activity.

2. A Bar Chart or a Time Scaled Network (arrow diagram network for the project).
3. A Resource Analysis showing the number and kind of resources, manpower, equipment and others that are required for each day of the
project.
4. A Cash Requirement prediction indicating how much cash to be disbursed for the job and the amount of money that will be collected as
a result of work accomplishment.

The Control Monitor Phase uses actual data which includes:

1. Additions to the project – The refers to the new activities.

2. Deletion from the project
3. Changes as to duration, description, trade indicators, cost estimates or resource estimates.
4. Actual starting dates
5. Actual finishing dates.

The Output Phase consists of the following:

1. Time status report
2. Revised schedules
3. Revised Bar Charts/Arrow Diagram or Network
4. Revised resource analysis
5. Revised cash flow predictions
6. Cost status reports

There are three major reasons for construction failure:

1. Unbalanced organization due to lack of planning and scheduling.
2. Lack of financial planning
3. Poor cost control

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LESSON 3.1 THE NETWORK FUNDAMENTALS

LEARNING OBJECTIVES
By the end of this module, you will be able to:
✓ Learn what is network method.
✓ Understand the important terminologies involved in network.
✓ Rules for drawing up a network.
✓ Apply network in construction management.

NETWORK CONVENTIONS

The making and reading of a network diagram requires some familiarity of the network conventions. One of the main features of PERT and CPM
is their use of a network precedence diagram which is the key in solving typical problems. The precedence diagram, clearly indicate which of the
activities must be performed in the sequence and which can be performed independently with each other. The network diagram is composed of a
number of Arrow and Nodes.

There are two slightly different conventions for making a network diagram. They are:

1. Activity on Arrow (AOA) – that is using arrows to designate activities.

2. Activity on Node (AON) – using nodes to designate activities.

The nodes in the AOA approach represents the beginning and the end of activities, which are called event. Events are point in time. Unlike activities,
they do not consume either resources or time. Activities can be referred to in two ways.

One is by their end points such as activity 1-2 and the other is by a letter assigned to an arrow such as activity a, b, c, etc. The network describes
sequential relationships among different activities on a project. For instance, activity 2-3 cannot be started according to the network until activity 1-
2 has been completed.

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Principles in Network or Arrow Diagram

PRINCIPLE No. 1: That everything in the network or arrow diagram must have meaning. Thus;

a. Every arrow represents an item of work and is called activity.

b. An event is the starting point of an Activity represented by a circle, square or any geometrical form.
Excavation

c. An activity is dependent upon and cannot begin until after the completion of all preceding activities.

Formworks Fabrication Pouring of slab

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Delivery of Cement

d. All activities that start with the same event cannot begin until after the completion of all activities that enter that event.

Formworks Fabrication Pouring of slab

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Delivery of Cement Pedestal Pouring

In figure above, pouring of slab and pedestal depends upon the completion of the two activities that enter into their common
starting point 3. Hence, it is possible to pour concrete on slab or pedestal until after making both forms and delivery of cement have
been completed.

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PRINCIPLE No. 2: That an activity has a single definite starting point and a single definite ending point.

An arrow in the network must satisfy two basic questions:

1. What activities must be completed before this one can start?
2. What activities cannot be started if this one is not completed? Block laying
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Digging Forms Footing pouring
1 2 3
Wall footing

In the figure above, block laying cannot be started until after the pouring of concrete footing is finished. Similarly, pouring of footing cannot be done
unless the forms and digging have been completed. In short, the inter-relationships of the activities were; block laying precedes pouring of footing;
pouring of footing precedes forms assembling and forms assembling precedes digging.

PRINCIPLE No. 3: The network (arrow diagram) does not describe time relationships but rather dependency relationships.

The length and direction of an activity arrow has no relationship with the amount of time required to accomplish the work presented by it. Similarly,
two activities starting with the same eveb B
3
A
1 2

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C

The arrow diagram defines the activity dependency situations that exists. Activities B and C does nt mean that both activities must be conducted
at the same time. They might but probably will not. What is important to note here is that these two activities are independent.

PRINCIPLE No. 4: That the network (arrow diagram) is hardly ever done by a single person.

The accomplishment of the schedule made in the network diagram is influenced by several number of people who have something to do with the
project and should be consulted when making network.
Likewise, the subcontractors and suppliers should be asked to review the network to be sure that the activities affecting their participation is
accurately and realistically described.

Fundamental Elements of PERT/CPM Networking

The fundamental elements of PERT/CPM networking activity are: Activity, Event and Time.

Activity – Is the work operations required to complete a task or in some cases, a segment of that task. In short, it is the actual work between
events.
For example: each particular work such as clearing, excavation, foundation and concreting works are indicated by an arrow on the project network.
The arrows should always point to the right. And arrow which represent activity is identified by a numbered circle at its tail and another number
circle at its point. The description of the activity is written along the arrow.

Events – Is a point in time signifying the beginning or end of one or more activities. It denotes the completion of all preceding or predecessor
activities and the beginning of one or more succeeding activities.

The event is indicated on the network as a circle, square, ellipse or any form of geometrical symbols with a number written therein for identification.

1. Numbering the events follows the construction of the network.

2. No tow events shall have the same identification number in the network.
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 3. For this reason, one or more dummy activities may be used in a network.

Activities can either be:

1. By their points such as 1-2; 2-4; etc.
2. By letter assigned to an arrow such as; a, b, c, etc.

The network diagram indicate sequence of relationships among major activities on a project. For instance, activity 2-4 cannot be started according
to the network until after activity 1-2 is completed.

Dummy Activity – Is an arrow on a network showing the dependent relationship between two activities. However, dummy activity does not
represent actual work efforts, and do not consume time. Dummy activity may be used in the network to distinguish two or more parallel activities.

Duration of an Activity – Is the time takes an activity to be finished. In short, this is the normal time duration of a task. Duration activity is the span
of time from the Early Start to ist Early Finish or from its Late Start or its Late Finish.

Path – A path is a sequence of activities that leads from the starting node to the finishing node. Thus, the sequence 1-2-4-6 in the network on the
above figure is a path. There are two paths from the starting node to the finishing node. They are:
(a) Path 1-2-4-6
(b) Path 1-3-5-6

Additional Notes:
1. The length or time of any path can be determined by adding the expected time of the activities along that path.
2. The path with the longest time. Catches management interest because it governs the project completion time.
3. In short, the expected duration of a project is equal to the expected time of the longest path.
4. If there are delays along the longest path, naturally there is also a corresponding delay in project completion time.
5. Therefore, any attempt to shorten the project completion time must concentrate on the longest sequence of activities because of its
relation to the completion time.
6. The longest path is the critical path and its activities are called the critical activities.
7. Paths that are shorter than the critical path may experience some delay but may not affect the over all project completion time as long
as the ultimate path time does not exceed the length of the critical path.
8. The allowable slippage for any path is called the path slack or float time. It indicates the difference between the length of a given path
and the length of the critical path.
9. The critical path then has a zero slack or float.

Illustration 1
In the following figure, activity A must be completed first before activity B can be started. Likewise, activity B must be completed first before starting
activity C.

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Illustration 2
In the following diagram, both activity a and activity b has to be completed first before activity c can begin. But a and b could be worked on at the
same time. Performance of a is dependent of performance of b.

Illustration 3
If activity must precede b and c, the network will be as follows:

Illustration 4
When several activities enter a node, it means that all those activities must be completed first before any activities that will begin at that node can
start. Thus, in the following diagram, activity a and activity b must be finished first before either activity c or activity d can start.

Illustration 5
When two activities have the same start and ending nodes, a dummy node and activity is used to preserve the different identity of each activity. In
the following diagram, activity a and activity b must be completed first before activity c begins.

Illustration 6
Most computer program identity activities by their end points. Thus, separate identities are particularly important for computer analysis. Activities
with the same end points could not be distinguished from each other although they might have different expected time.
Dummy activities has several number of different uses and the following are commonly used.

The primary function of dummy is to clarify relationships. But as far as time is concerned, a dummy activity has an activity time equals to zero. For
clarity, nodes are numbered typically from left to right.
Illustration 7
From the following network, activities a and b both precede activity c. But d’s start dependent only on completion of activity b, and not on activity
a’s. Similarly, e is dependent on c.

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Illustration 8
Starting and ending arrows are sometimes used during development of a network diagram for more clarity.

Rules for Numbering Events in a Network Diagram

1. All events should be numbered starting from left to right.
2. No event number should be lower than the number of event preceding it (left to right direction).
3. Event number shall increase from left to right.
4. Events should be numbered from top to bottom. Similarly, increasing should be consistent from top to bottom or from bottom to top.

Example:
From the following table of information, (a) Draw a precedence diagram, (b) Find the Critical Path, (c) Determine the expected duration of the
project.

Activity Precedes Expected Time (days)

a c, b 4
c d 12
d i 2
b i 5
e f 3
f j 8
i j 12
j end 9
g h 1
h k 3
k end 15

Solution:
1. Use pencil in constructing precedence diagram.
2. Activities without predecessors are placed at the start of the network (left side).
3. Activities with multiple predecessors are located at path intersections.
4. Start with a single node and end with a single node.
5. Avoid having paths that cross with each other.
6. Number nodes from left to right.
7. Activities should go from left to right.
8. Use only one arrow between any pair of nodes.
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Examining the table of information; Letters a, e and g are absent in the precedes column.
Therefore, these are the activities without predecessors.
• a precedes c, d
• e precedes f
• g precedes h

The next question is to find the Critical Path.

Examining the above network diagram we have the following route or path.

Path:
• a, c, d, I, j = 4+12+2+12+9 = 39
• a, b, I, j = 4+5+12+9 = 30
• e, f, j = 3+8+9 = 20
• g, h, k = 1+3+15 = 19

From the above data, the highest number is 39, thus, path a, c, d, I, j is the Critical Path which means the longest route.
Similarly, the duration of the project is 39 which could be in terms of days, weeks or months.

References
https://www.youtube.com/watch?v=sGZi2Cw_FGE&list=PLI06XdlGahNpaiGzkCyoVe7XDm6HjQq6O&index=5
https://www.youtube.com/watch?v=s0KnRiwCi6M&list=PLI06XdlGahNpaiGzkCyoVe7XDm6HjQq6O&index=54&t=2151s
Fajardo M.B. (2002). Construction Management. 5138 Trading

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