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CPM and Pert Chapter 4
CPM and Pert Chapter 4
INTRODUCTION :
Network analysis involves scheduling and planning the best possible sequence of activities in the project.
A project may be as small as to arrange a ‘Birthday party’ or as big as to build up a ‘Shopping mall”. Every
project small/big involves various tasks to be completed. The tasks are termed s activities. These activities
can be performed independently or in a sequence i.e. linked with the completion of other activities.
Suppose we consider a small project of Birthday party. The activities may be listed down as to prepare a
logical sequence of the activities so that the project can be completed within a specified duration of time with
minimum wastage of time desired. The logical sequence of the activities is called a network diagram. The
network can be constructed through the use of a series of arrows and nodes conveniently expressing the
sequential nature of the project.
Network analysis is based on the following two assumptions:
a) Every activity may have a fixed or variable completion time.
b) The total duration of the project may be reduced to certain extent by allocating some extra amount
towards the completion.
There are two techniques to study the network analysis, viz. PERT & CPM.
The PERT (Program Evaluation & Review Technique) assumes that the activity duration is not fixed and
it follows a certain probability distribution.
The technique of PERT was developed by U.S. Navy (1958) for the ‘Polaris’ missile program.
On the other hand CPM (Critical Path Method) assumes that an activity can be completed within the
specified time. This technique was developed by E I Du Pont de Nemours & Co. (1957) for construction of
new chemical plant and maintenance shut-down.
PERT / CPM techniques can answer the following important questions:
1) How long will the entire project take to be completed? What are the risks involved?
2) Which are the critical activities or tasks in the project which could delay the entire project if they
were not completed on time?
3) Is the project on schedule, behind schedule or ahead of schedule?
4) If the project has to be finished earlier than planned, what is the best way to do this at the least cost?
Basic terms used in network analysis:
Activity : An activity is a task/job to be completed within fixed or variable time duration. It is
denoted by the alphabets A,B,C etc.
Node : It represents the start and end of the activity. Every activity in the network is
presented by an ordered pair (i) representing start and end node respectively as follow
To draw the network we first arrange the activities in the logical sequence and then number the node in the
ascending order as shown in the diagram.
E.g. 2Activity :1-2,2-3,2-4,2-5,3-4,4-6,5-6
E.g. 3 Nine activities in projects are represented with following relationships( A<B mean B follows A)
A < D, E ; B , D < F , C < G ; B < H ; F , G < I
Draw the project network
*Events are numbered in progressive direction of the arrow Time Calculations in Network Analysis and
Critical Path Analysis: The basic objective of the network analysis is to,
1) Obtain the total project duration
2) Find starting and completing time for each activity
3) Identify the critical and non-critical activities
4) Calculate the possible float (slack time) available on the critical activities.
In the network with each activity, there are different types of time durations attached as following.
Est : Earliest start time for the activity
Lst : Latest start time for the activity (Lft - Duration)
Eft : Earliest Finish time for the activity (Est + Duration)
Lft : Latest Finish time for the activity
From the network diagram we can identify the different completion paths and durations as follows:
Path Duration
1-4-5-6 16
1-3-5-6 9
1-3-6 10
1-2-3-5-6 18
1-2-3-6 19*
1-2-6 8
The critical path is 1-2-3-6 and project duration is 19 days.
Determination of scheduling time and floats
Activity Time Duration Earliest Latest Float
Duration (days) Start Finish Start Finish Total Interfering Free Independent
1-2 3 0 3 0 3 0 0 0 0
1-3 4 0 4 9 13 9 0 9 0
1-4 14 0 14 3 17 3 0 0 0
2-3 10 3 13 3 13 0 0 0 0
2-6 5 3 8 14 19 11 0 0 0
3-5 4 13 17 14 18 1 0 0 0
3-6 6 13 19 13 19 0 0 0 0
4-5 1 14 15 17 18 3 0 0 0
5-6 1 17 18 18 19 1 0 0 0
RESTIRICTED CRASHING
Problem No. 11
The table below provides cost and time estimates of seven activities of a project
Time estimates (Weeks) Direct cost estimates (Rs. In 000)
Activity
Normal Crash Normal Crash
1-2 2 1 10 15
1-3 8 5 15 21
2-4 4 3 20 24
3-4 1 1 7 7
3-5 2 1 8 15
4-6 5 3 10 16
5-6 6 2 12 36
a) Draw the project network corresponding to normal time.
b) Determine the critical path and the normal duration and normal cost of the project
c) Crash the activities so that the project completion time reduces to 9 weeks with minimum Additional cost.
Problem No. 12 (Oct. 2010)
The following table shows details of a project. Indirect cost is 200/- per day:
Normal Crash
Nodes
Time (days) Cost (Rs.) Time (days) Cost (Rs.)
1-2 4 600 3 800
1-3 2 400 2 400
1-4 5 750 4 900
2-3 7 400 5 600
2-5 6 800 6 1000
3-5 2 500 1 650
4-5 5 600 4 800
a) Construct the project network and identify the critical path. What is the normal duration and
corresponding total cost of the project?
b) Crash the project systematically and find out minimum cost for 7 optimal times. Also find out additional
costs required to reach the optimal time.
Problem No. 13 (April 2005)
The time and cost estimates and precedence relationship of the different activities constituting a project are
given below:
Time in(week) Cost (in Rs.)
Activity Predecessor
Normal Crash Normal Crash
A 3 2 80 190
B 8 6 6 10
C B 6 4 100 120
D B 5 2 40 100
E A 13 10 30 90
F A 4 4 150 150
G F 2 1 12 14
H C,E,G 6 4 35 45
I F 2 1 70 80
a) Draw a project network diagram and find the critical path.
b) If a dead line of 17 weeks is imposed for completion of the project which activities will be crashed, what
should be the additional cost and what would be the critical activities of the crashed network after
crashing?
Problem No. 14
Table below shows jobs, their normal time and cost, crash time and cost estimates for each job, Indirect cost
for the project is Rs. 300.
i) Draw the network of the project.
ii) What is the normal duration and cost of the project?
iii) If all activities are crashed, what will be the project duration and the corresponding cost?
iv) Find the optimum duration and minimum project cost.
Job Normal Crash
Time (days) Cost Time Cost
1-2 6 1400 4 1900
1-3 8 2000 5 2800
2-3 4 1100 2 1500
2-4 3 800 2 1400
3-4 0 0 0 0
3-5 6 900 3 1600
4-6 10 2500 6 3500
5-6 3 500 2 800
REVERSE PROBLEM
Problem No. 23 (Apr. 2002)
A project consists of eight activities with the following relevant information.
Time estimates (in weeks)
Activity Preceding Activity
Most Optimistic Most likely Most Pessimistic
A -- 2 2 8
B -- 2 5 8
C -- 3 3 9
D A 2 2 2
E B 3 6 15
F C 3 6 9
G D,E 4 7 16
H F,G 2 3 4
i) Draw the PERT network and find out the expected project completion time
ii) What duration will have 95% confidence for project completion?
(Given area under normal curve from z= 0 = 1.65 ( 0.45)
Problem No. 24 (Apr. 2008)
Activity Time estimates (in weeks)
Most Optimistic Most likely Most Pessimistic
1-2 2 5 14
1-6 2 5 8
2-3 5 11 29
2-4 1 4 7
3-5 5 11 17
4-5 2 5 14
6-7 3 0 27
5-8 2 2 9
7-8 7 13 31
a) Draw the network diagram and determine various paths and their durations.
b) Calculate the probability of completion of the project in 38 days
c) Calculate the project duration if the probability of project completion is to be 94.5%.
Problem No. 25
As the Project Manager of a construction company, you are involved in drawing PERT network for a new
project. The relevant 3 point time estimates for all activities of the project are given in the following table : -
Time estimates (in weeks)
Event
Optimistic Time Most Likely Time Pessimistic Time
1-2 4 6 8
2-5 8 10 12
2-3 6 10 14
3-4 0 0 0
2-4 4 8 12
4-5 2 4 6
5-6 2 6 10
a) Construct the PERT network for the project and determine the critical path and the expected project
completion time.
b) What duration will have 95% confidence for project completion?
c) If there is huge penalty for exceeding the project completion deadline of 27 weeks, what is the
probability of not being penalized?
Problem No. 26
A project consists of 8 activities with the following relevant information.
Activity A B C D E F G H
Immediate Predecessor - - - A B C D,E F,G
Time a 1 1 2 1 2 2 3 1
b 7 7 8 2 14 8 15 3
m 1 4 2 1 5 5 6 2
a) Draw a PERT network and find out the expected project completion time.
b) What duration will have 90% confidence for project completion?
(Oct 2009)
Activity Predecessors Optimistic Most Likely Pessimistic
A None 3 6 9
B None 2 5 8
C A 2 4 6
D B 2 3 10
E B 1 3 11
F C,D 4 6 8
G E 1 5 15
a) Draw the project network.
b) Find the critical path and expected completion time.
c) What is the probability that the project will be completed by 18 weeks?
d) What will be the project duration so that the project manager is confident
with 95% that the project will be completed on schedule?
CHANGE OF MATRIX
Problem No. 33
The data for PERT network is displayed in the table. Determine the critical path
and the expected durationof completion of the entire project. Give answers to the
following:
i) What is the probability that the project duration will exceed 60 days?
ii) What is the chance of completing the project between 45 days and 54 days?
iii) If it becomes known later that the duration of three time estimates for activity 4-6
has to be revised to 14-20-32. What impact does this have on project completion
time? What is the probability that the project can now be completed on or before
46 days?
Time Duration (Days)
Activity Nodes
Optimistic time Most likely time Pessimistic Time
1-2 2 4 6
1-3 6 6 6
1-4 6 12 24
2-3 2 5 8
2-5 11 14 23
3-4 15 24 45
3-6 3 6 9
4-6 9 15 27
5-6 4 10 16