CPM & PERT Analysis

Project Management
 NETWORK TECHNIQUES

PERT CPM
-Program Evaluation and Critical Path Method
Review Technique Developed by El Dupont
- developed by the US for Chemical Plant
Navy with Booz Shutdown Project- about
Hamilton Lockheed same time as PERT
- on the Polaris
Missile/Submarine
program 1958

Both use same calculations, almost similar

Main difference is probabilistic and deterministic in time
estimation
2 Gantt Chart also used Scheduling,
in scheduling
PERT, Critical Path Analysis Chapter 8
Project Scheduling: PERT/CPM
 Project Scheduling with Known Activity Times
 Project Scheduling with Uncertain Activity Times
 Considering Time-Cost Trade-Offs
 PERT/CPM
 PERT
 Program Evaluation and Review Technique
 Developed by U.S. Navy for Polaris missile project
 Developed to handle uncertain activity times
 CPM
 Critical Path Method
 Developed by Du Pont & Remington Rand
 Developed for industrial projects for which activity times
generally were known
 Today’s project management software packages have
combined the best features of both approaches.
PERT/CPM
 PERT and CPM have been used to plan, schedule, and
control a wide variety of projects:
 R&D of new products and processes
 Organizing Events
 Construction of buildings and highways
 Maintenance of large and complex equipment
 Design and installation of new systems
PERT/CPM
 PERT/CPM is used to plan the scheduling of individual
activities that make up a project.
 Projects may have as many as several thousand activities.
 A complicating factor in carrying out the activities is that
some activities depend on the completion of other
activities before they can be started.
PERT/CPM
 Project managers rely on PERT/CPM to help them answer
questions such as:
 What is the total time to complete the project?
 What are the scheduled start and finish dates for each specific
activity?
 Which activities are critical and must be completed exactly as
scheduled to keep the project on schedule?
 How long can noncritical activities be delayed before they
cause an increase in the project completion time?
Project Network
 A project network can be constructed to model the
precedence of the activities.
 The nodes of the network represent the activities.
 The arcs of the network reflect the precedence
relationships of the activities.
 A critical path for the network is a path consisting of
activities with zero slack.
Use of Lags

Finish-to-Finish
Relationship
FIGURE 6.18

Start-to-Finish
Relationship FIGURE 6.19

Combination
Relationship
FIGURE 6.20

6–9
Network Using Lag

FIGURE 6.21
6–10
PERT Planning Process - Steps

1. Identify specific activities and milestones

2. Determine the proper sequence of activities

3. Construct the Network Diagram

4. Estimate Activity Times

5. Determine the Critical Path

6. Determine the Probability of Project Completion

Uncertain Activity Times
 In the three-time estimate approach, the time to complete
an activity is assumed to follow a Beta distribution.
 An activity’s mean completion time is:

t = (a + 4m + b)/6
 An activity’s completion time variance is:

2 = ((b-a)/6)2
 a = the optimistic completion time estimate
 b = the pessimistic completion time estimate
 m = the most likely completion time estimate
PERT Example

Activity Predecessor optimistic Most likely Pessimistic Duration

A None 17 29 47 30

B A 6 12 24 13

C A 16 19 28 20

D B 13 16 19 16

E C 2 5 14 6

F D,E 2 5 8 5
PERT Example
PERT Example
Calculating the Probability at specific time
Probability of Project Completion