Program Evaluation and Review Technique (PERT) 267

Table 11.1 Z Table: Cumulative Probability of the Standard Normal Distribution

Z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09

0.0 .5000 .5040 .5080 .5120 .5160 .5199 .5239 .5279 .5319 .5359
0.1 .5398 .5438 .5478 .5517 .5557 .5596 .5636 .5675 .5714 .5753
0.2 .5793 .5832 .5871 .5910 .5948 .5987 .6026 .6064 .6103 .6141
0.3 .6179 .6217 .6255 .6293 .6331 .6368 .6406 .6443 .6480 .6517
0.4 .6554 .6591 .6628 .6664 .6700 .6736 .6772 .6808 .6844 .6879
0.5 .6915 .6950 .6985 .7019 .7054 .7088 .7123 .7157 .7190 .7224
0.6 .7257 .7291 .7324 .7357 .7389 .7422 .7454 .7486 .7517 .7549
0.7 .7580 .7611 .7642 .7673 .7704 .7734 .7764 .7794 .7823 .7852
0.8 .7881 .7910 .7939 .7967 .7995 .8023 .8051 .8078 .8106 .8133
0.9 .8159 .8186 .8212 .8238 .8264 .8289 .8315 .8340 .8365 .8389
1.0 .8413 .8438 .8461 .8485 .8508 .8531 .8554 .8577 .8599 .8621
1.1 .8643 .8665 .8686 .8708 .8729 .8749 .8770 .8790 .8810 .8830
1.2 .8849 .8869 .8888 .8907 .8925 .8944 .8962 .8980 .8997 .9015
1.3 .9032 .9049 .9066 .9082 .9099 .9115 .9131 .9147 .9162 .9177
1.4 .9192 .9207 .9222 .9236 .9251 .9265 .9279 .9292 .9306 .9319
1.5 .9332 .9345 .9357 .9370 .9382 .9394 .9406 .9418 .9429 .9441
1.6 .9452 .9463 .9474 .9484 .9495 .9505 .9515 .9525 .9535 .9545
1.7 .9554 .9564 .9573 .9582 .9591 .9599 .9608 .9616 .9625 .9633
1.8 .9641 .9649 .9656 .9664 .9671 .9678 .9686 .9693 .9699 .9706
1.9 .9713 .9719 .9726 .9732 .9738 .9744 .9750 .9756 .9761 .9767
2.0 .9772 .9778 .9783 .9788 .9793 .9798 .9803 .9808 .9812 .9817
2.1 .9821 .9826 .9830 .9834 .9838 .9842 .9846 .9850 .9854 .9857
2.2 .9861 .9864 .9868 .9871 .9875 .9878 .9881 .9884 .9887 .9890
2.3 .9893 .9896 .9898 .9901 .9904 .9906 .9909 .9911 .9913 .9916
2.4 .9918 .9920 .9922 .9925 .9927 .9929 .9931 .9932 .9934 .9936
2.5 .9938 .9940 .9941 .9943 .9945 .9946 .9948 .9949 .9951 .9952
2.6 .9953 .9955 .9956 .9957 .9959 .9960 .9961 .9962 .9963 .9964
2.7 .9965 .9966 .9967 .9968 .9969 .9970 .9971 .9972 .9973 .9974
2.8 .9974 .9975 .9976 .9977 .9977 .9978 .9979 .9979 .9980 .9981
2.9 .9981 .9982 .9982 .9983 .9984 .9984 .9985 .9985 .9986 .9986
3.0 .9987 .9987 .9987 .9988 .9988 .9989 .9989 .9989 .9990 .9990

Graphic Explanation
The probability density function of a normal distribution is represented by a
bell-shaped curve. The area under the curve represents the probability universe,
where all possibilities are covered, which is 1.00, or 100%. The probability that an
event will occur by a certain date (i.e., on or before that date) is the area under the
curve to left of that date. See Figure 11.1.
268 Chapter 11 Other Scheduling Methods

Figure 11.1 Probability density function curve (shaded area indicates the probability that an
event will occur by a certain date)

Example 11.1

In a CPM network, the critical path includes five activities. Their durations
are tabulated next.

Duration (Days)
Activity Optimistic (To) Most Likely (Tm) Pessimistic (Tp)

A 2
B 5
C 4
D 2
E 7
4 7
8 14
6 8
2 2
10 21

Compute the following nine values:

1. The probability that the project will finish by the end of day 32
2. The probability that the project will finish by the end of day 34
3. The probability that the project will finish before day 30
4. The probability that the project will finish on the 32nd day
5. The probability that the project will finish no later than the
35th day
6. The probability that the project will finish at least 2 days early
7. The probability that the project will finish at least 2 days late
8. The probability that the project will finish on the 32nd day 1 day
9. The completion date with at least a 90% confidence level
 Program Evaluation and Review Technique (PERT) 269

Solution
Before computing any of the nine values, we need to calculate the expected
duration (TE) and the standard deviation (sE) of the path ABCDE. We start by
performing the calculations for the individual activities. For every activity, we
calculate the expected duration (Te) and standard deviation (se) by using
equations 11.1 and 11.2. After this, we calculate the variance (Ve) by using
equation 11.3. We tabulate the results as shown next.

Duration

Most Expected Standard

Optimistic Likely Pessimistic Duration Deviation Variance
Activity (To) (Tm) (Tp) (Te) (se) Ve ¼ s 2e

A 2 4 7 4.167 0.833 0.694

B 5 8 14 8.500 1.500 2.250
C 4 6 8 6.000 0.667 0.444
D 2 2 2 2.000 0 0
E 7 10 21 11.333 2.333 5.444
TE ¼ 32 VE ¼ 8.833

The next step is to do the calculations for the entire path. We simply add
the expected durations and variances, as explained in equations 11.4 and
11.5, to obtain TE and VE.
Next, take the square root of VE (use equation 11.6) to find the standard
deviation (sE) of the path:

T E ¼ 32 days

V E ¼ 8:833 days
and
pffiffiffiffiffiffiffiffiffiffiffiffiffi
sE ¼ 8:833 ¼ 2:972 days
P
n
Note that sE 6¼ ðsE Þi
i¼1

1. The probability that the project will finish by the end of day 32. Using
equation 11.7, we find that Z ¼ ð32  32Þ=2:972 ¼ 0 From the Z table
(Table 11.1), we find that

PrðT S  32Þ ¼ 0:5 ¼ 50%

See Figure 11.2.
270 Chapter 11 Other Scheduling Methods

Figure 11.2 Solution to example 11.1, part 1

2. The probability that the project will finish by the end of day 34.

Z ¼ ð34  32Þ=2:972 ¼ 0:67

From Table 11.1, we find that

PrðT S  34Þ ¼ 0:749 ¼ 74:9%

See Figure 11.3.

Figure 11.3 Solution to example 11.1, part 2

3. The probability that the project will finish before day 30. This probability is
the same as the probability of finishing by the end of day 29:

Z ¼ ð29  32Þ=2:972 ¼ 1:01

When Z < 0, take the probability that corresponds to the positive value of Z,
then subtract it from 1.0 (100%):

PrðT S  29Þ ¼ 1  0:844 ¼ 0:156 ¼ 15:6%

See Figure 11.4.
 Program Evaluation and Review Technique (PERT) 271

Figure 11.4 Solution to example 11.1, part 3

4. The probability that the project will finish on the 32nd day.

PrðT S ¼ 32Þ ¼ PrðT S  32Þ  PrðT S  31Þ

We already calculated PrðT S  32Þ ¼ 0:5 ¼ 50% (part 1). For PrðT S  31Þ,

Z ¼ ð31  32Þ=2:972 ¼ 0:34

PrðT S  31Þ ¼ 1  0:633 ¼ 0:367 ¼ 36:7%

and

PrðT S ¼ 32Þ ¼ PrðT S  32Þ  PrðT S  31Þ ¼ 50%  36:7% ¼ 13:3%

See Figure 11.5.

Figure 11.5 Solution to example 11.1, part 4

5. The probability the project will finish no later than the 35th day. This
probability is the same as the probability that the project will finish by the
272 Chapter 11 Other Scheduling Methods

end of day 35:

Z ¼ ð35  32Þ=2:972 ¼ 1:01

and

PrðT S  35Þ ¼ 0:844 ¼ 84:4%

See Figure 11.6.

Figure 11.6 Solution to example 11.1, part 5

6. The probability that the project will finish at least 2 days early. This
probability is the same as the probability of finishing on the 30th day or
earlier, or the same as the probability that the project will finish by the
end of day 30:

Z ¼ ð30  32Þ=2:972 ¼ 0:67

and
PrðT S  30Þ ¼ 1  0:749 ¼ 0:251 ¼ 25:1%

See Figure 11.7.

Figure 11.7 Solution to example 11.1, part 6

 Program Evaluation and Review Technique (PERT) 273

7. The probability that the project will finish at least 2 days late. This probability
is the same as the probability of finishing by the 34th day or later, or the
same as the probability that the project will finish after day 33:

PrðT S > 33Þ ¼ 1  PrðT S  33Þ

For PrðT S  33Þ;

Z ¼ ð33  32Þ=2:972 ¼ 0:34

and
PrðT S  33Þ ¼ 0:633 ¼ 63:3%
Thus,
PrðT S > 33Þ ¼ 1  0:633 ¼ 0:367 ¼ 36:7%

See Figure 11.8.

Figure 11.8 Solution to example 11.1, part 7

Note that if the instruction had said ‘‘the probability that the project
will finish more than [rather than at least] 2 days late,’’ it would have meant
Pr(TS > 34).
8. The probability that the project will finish on the 32nd day 1 day. This
means finishing on day 31, 32, or 33.

PrðT S ¼ 31; 32; 33Þ ¼ Prð30 < T S  33Þ  PrðT S  33Þ  PrðT S  30Þ
and

PrðT S ¼ 31; 32; 33Þ ¼ 0:633  0:251 ¼ 0:382 ¼ 38:2%

See Figure 11.9.
274 Chapter 11 Other Scheduling Methods

Figure 11.9 Solution to example 11.1, part 8

9. The completion date with at least a 90% confidence level. Go to Table 11.1
and pick a probability value close to (but not less than) 0.9. Read the
corresponding Z value. You should read 1.28. Apply equation 11.8:

T S ¼ s E  Z þ T E ¼ 2:972 1:28 þ 32 ¼ 35:8  36 days

Difference between ‘‘Most Likely’’ and ‘‘Expected’’ Durations

From a linguistic viewpoint, most likely and expected may be thought of as similar.
However, statistically they are different. The most likely duration is simply the duration
that we believe has more likelihood of happening than any other duration. In our case, it
is a user-defined amount; that is, we provide it along with other durations (optimistic
and pessimistic) in the equation so that we can calculate the expected duration and the
standard deviation. It does not represent the arithmetic mean or the median.
The expected duration is the amount of time we expect the project or path duration
to take, considering the different durations (optimistic and pessimistic), their values, and
their weights. It is a computed amount. For example, consider a case in which 6, 8, and 10
are the optimistic, most likely, and pessimistic durations, respectively. The expected
duration will be equal to 8. In this case, it is equal to the most likely duration because the
optimistic and pessimistic durations ‘‘deviate’’ by the same amount from the most likely
duration (6 to 8 and 10 to 8). Now, suppose that the pessimistic duration is 13 days,
whereas the optimistic and most likely durations are still the same. The expected duration
is calculated as 8.5 days, by using equation 11.1. The expected duration value increased as
a result of the increase in the skewness of the pessimistic duration. Even though the
probability of the occurrence of the pessimistic duration (or the weight) is still the same in
both examples (one-sixth), the consequences worsened in the second case.

Is the Longest Path Still the Most Critical?

A typical network project has tens or hundreds (perhaps thousands) of paths. Typically,
we define the critical path as the longest path from the start till the end of the network