SCHEDULING

(Critical Path Method)

Course Teacher: Dr Maaz Akhtar

Professor,
MED, NED UET.

© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 3-1
 Outline
► The Importance of Project Management
► Project Planning
► Project Scheduling
► Project Controlling
► Project Management Techniques: PERT
► A Critique of PERT

© 2014 Pearson Education, Inc. 3-2

 MANAGEMENT OF PROJECTS

© 2014 Pearson Education, Inc. 3-3

Importance of Project Management
▶ Project: unique, one-time operations
designed to accomplish a set of objectives
in a limited time frame.

► Building Construction ► Research Project

© 2014 Pearson Education, Inc. 3-4
Importance of Project Management

1. Planning - goal setting, defining the project, team

organization
2. Scheduling - relate people, money, and supplies
to specific activities and activities to each other
3. Controlling - monitor resources, costs, quality, and
budgets; revise plans and shift resources to meet
time and cost demands

Planning Scheduling

© 2014 Pearson Education, Inc.

Controlling 3-5
 Project Planning

► Establishing objectives
► Defining project
► Creating work breakdown structure
► Determining resources
► Forming organization
© 2014 Pearson Education, Inc. 3-6
 Project Planning
 Project Organization
► Often temporary structure
► Uses specialists from entire company
► Headed by project manager
► Coordinates activities
► Monitors schedule
and costs
► Permanent structure called
‘matrix organization’
© 2014 Pearson Education, Inc. 3-7
 Project Planning
A Sample Project Organization
President

Human Quality
Resources Marketing Finance Design Production
Mgt

Project Project Mechanical Test

Technician
No. 1 Manager Engineer Engineer

Project Project Electrical Computer

Technician
No. 2 Manager Engineer Engineer
Figure 3.2

© 2014 Pearson Education, Inc. 3-8

 Project Planning
Matrix Organization
Marketing Operations Engineering Finance

Project 1

Project 2

Project 3

Project 4
© 2014 Pearson Education, Inc. 3-9
 Project Planning
The Role of Project Manager:
1. All necessary activities are finished in order
and on time
2. The project comes in within budget
3. The project meets quality goals
4. The people assigned to the project receive
motivation, direction, and information

© 2014 Pearson Education, Inc. 3 - 10

 Project Planning
The Role of Project Manager:
1. All necessary activities are finished in order
and on time
2. The project comes in within budget
3. The project meets quality goals
Project managers should be:
4. The people assigned to the project receive
► Good coaches
motivation, direction, and information
► Good communicators
► Able to organize activities
from a variety of disciplines
© 2014 Pearson Education, Inc. 3 - 11
 Project Planning
 Work Breakdown Structure
► Dividing a project into more and more
detailed tasks (or activities)
Level

1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or “work packages”)
to be completed
© 2014 Pearson Education, Inc. 3 - 12
 Work Breakdown Structure
Develop Windows 8
Level 1 1.0
Operating System

Software Cost Management System

Level 2 1.1 1.2 1.3
Design Plan Testing

Develop Design Cost Module

Level 3 1.1.1 1.2.1 1.3.1
GUIs Tracking Reports Testing

Ensure Compatibility Develop Defect

with Earlier Versions 1.1.2 Cost/Schedule 1.2.2 Testing 1.3.2
Interface

Compatible with
Level 4 1.1.2.1
Windows 7
(Work packages)
Compatible with
1.1.2.2
Windows Vista

Compatible with Figure 3.3

Windows XP 1.1.2.3

© 2014 Pearson Education, Inc. 3 - 13

 Project Scheduling

1. Shows the relationship of each activity to others and to

the whole project
2. Identifies the precedence relationships among activities
3. Encourages the setting of realistic time and cost
estimates for each activity
4. Helps make better use of people, money, and material
resources by identifying critical bottlenecks in the project
 Project Scheduling

► Techniques
► Gantt chart
► Critical Path Method
(CPM)
► Program Evaluation
and Review Technique
(PERT)

© 2014 Pearson Education, Inc. 3 - 15

 A Simple Gantt Chart
Project : establish a new department
Activity Time

Activity
Sequence

Project Duration

© 2014 Pearson Education, Inc. 3 - 16

 Project Controlling

► Close monitoring of resources, costs, quality,

budgets
► Feedback enables revising the project plan
and shift resources
► Computerized tools produce extensive reports
© 2014 Pearson Education, Inc. 3 - 17
 Project Management Software
► There are several popular
packages for managing projects
► Primavera
► MacProject
► MindView
► HP Project
► Fast Track
► Microsoft Project

© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 3 - 18
 Project Control Reports
► Detailed cost breakdowns for each task
► Total program labor curves
► Cost distribution tables
► Functional cost and hour summaries
► Raw materials and expenditure forecasts
► Variance reports
► Time analysis reports
► Work status reports

© 2014 Pearson Education, Inc. 3 - 19

 PROJECT MGMT TECHNIQUES:
PERT
© 2014 Pearson Education, Inc. 3 - 20
 PERT and CPM
► Network techniques
► Developed in 1950s
► CPM by DuPont for chemical plants (1957)
► PERT by Booz, Allen & Hamilton with the U.S.
Navy, for Polaris missile (1958)
► Consider precedence relationships and
interdependencies
► Each uses a different estimate of activity
times

© 2014 Pearson Education, Inc. 3 - 21

 Six Steps PERT
1. Define the project and prepare the
work breakdown structure
2. Develop relationships among the
activities - decide which activities must
precede and which must follow others
3. Draw the network connecting all of the
activities

© 2014 Pearson Education, Inc. 3 - 22

 Six Steps PERT
4. Assign time and/or cost estimates to
each activity
5. Compute the longest time path through
the network – this is called the critical
path
6. Use the network to help plan,
schedule, monitor, and control the
project

© 2014 Pearson Education, Inc. 3 - 23

 PERT: AON Convention
Activity on Activity
Node (AON) Meaning

3.0 2.5 2.0 A comes before B, which

(a) A B C comes before C

3.0
A 2.0 A and B must both be
(b) 2.5 C completed before C can start
B

© 2014 Pearson Education, Inc. 3 - 24

 PERT: AON Convention
Activity on Activity
Node (AON) Meaning

2.5
3.0 B
B and C cannot begin until A is
(c) A 2.0
completed

3.0 2.0
A C C and D cannot begin until A and
B have both been completed
(d) 2.5 3.5
B D
© 2014 Pearson Education, Inc. 3 - 25
 PERT: AON Convention
Activity on Activity
Node (AON) Meaning

3.0 2.0
A C C cannot begin until both A and B
are completed; D cannot begin until
(e) 2.5 3.5 B is completed.
B D

3.0 2.5 3.5

A B D B and C cannot begin until A is
completed. D cannot begin until both B
(f) 2.0 and C are completed.
C
© 2014 Pearson Education, Inc. 3 - 26
 AON Example
Example 3.1: Milwaukee has identified the eight activities that
need to be performed in order to install air pollution control
equipment in its facility.
Immediate Estimated
Activity Description Predecessors Time (weeks)
A Build internal components — 2
B Modify roof and floor — 3
C Construct collection stack A 2
D Pour concrete and install frame A, B 4

E Build high-temperature burner C 4

F Install pollution control system C 3
G Install air pollution device D, E 5
H Inspect and test F, G 2
© 2014 Pearson Education, Inc. 3 - 27
 Immediate Estimated
Activity Predecessors Time (weeks)
A — 2
B — 3
C A 2
D A, B 4
E C 4
F C 3
G D, E 5
H F, G 2

2 3

C F
2
4 2
A
E H
Start
3 4 5
B D G

© 2014 Pearson Education, Inc. 3 - 28

 EX1 in class
Estimated
Time Immediate
Task (weeks) predecessor Construct a PERT
network for this project by
A 8 — using AON convention
B 6 A
C 4 —
D 9 C
E 11 A
F 3 B, E
G 1 B, C, E
H 5 D, F, G

© 2014 Pearson Education, Inc. 3 - 29

 PERT
▶Important concepts
▶ Path: A sequence of activities leading from the beginning
node to the ending node of a PERT network.
▶ Path length: The sum of the time estimates of the activities
on a path.
▶ Critical path: The longest path in a PERT network.
▶ Critical activities: The activities on the critical path.
▶ Project duration (or completion time): The length of the
critical path.
▶ Path slack: The difference between the length of a path
and the project duration.

© 2014 Pearson Education, Inc. 3 - 30

 PERT Analysis
▶ Deterministic PERT Analysis
▶ Computational Algorithm

© 2014 Pearson Education, Inc. 3 - 31

 Deterministic PERT Analysis
▶ Enumeration method
▶ Calculate and compare the lengths of all
paths
▶ Determine the critical path, critical
activities, and the path slacks

© 2014 Pearson Education, Inc. 3 - 32

 Deterministic PERT Analysis
Example 3.2: Do deterministic PERT analysis.
Estimated
Time Immediate
Task (weeks) predecessor
A 8 —
B 6 A
C 4 —
D 9 C 3
6
E 11 A
B F
F 3 B 8
G 1 D, E, F A 11 1

Total 42 E G
Start
4 9
C D
© 2014 Pearson Education, Inc. 3 - 33
 Deterministic PERT Analysis
6 3
(1) What is the critical path?
B F
8 What are the critical activities?
A 11 1 (2) What is the duration of the
E G project?
Start (3) Are there any path slacks?
4 9 If so, how long is each of the
C D slacks?

Critical Path Path Length (weeks) Slack

Start – A – B – F – G 8+6+3+1=18 2
Start – A – E – G 8+11+1=20 0
Start – C – D – G 4+9+1=14 6

(1) The critical path is Start – A – E - G. The critical activities are A, E, G.

(2) The duration of the project is 20 weeks.
(3) Path Start – A – B – F – G has a slack of 2 weeks,
and path Start – C – D – G has a slack of 6 weeks.
 Deterministic PERT Analysis
▶ The critical path is the longest path through the
network
▶ The critical path is the shortest time in which
the project can be completed
▶ Any delay in critical path activities delays the
project
▶ Critical path activities have no slack time

© 2014 Pearson Education, Inc. 3 - 35

 Deterministic PERT Analysis
2
C
3
F
Example 3.3
2
4
(1) What is the critical path?
A 2
What are the critical activities?
E H (2) What is the duration of the
Start
3 4 5
(3) project?
Are there any path slacks?
B D G
If so, how long is each of the
slacks?
Path Length (weeks) Slack
Critical Path Start – A – C – F – H 9 6
Start – A – C – E – G – H 15 0
Start – A – D – G – H 13 2
Start – B – D – G – H 14 1

(1) The critical path is Start – A – C – E – G – H. The critical activities are A, C, E, G, H.

(2) The duration of the project is 15 weeks.
(3) Path Start – A – C – F – H has a slack of 6 weeks, path Start – A – D – G – H has a
slack of 2 weeks, and path Start – B – D – G – H has a slack of 1 week.
 EX2 in class
Activity Immediate Estimated
Predecessor(s) Time (weeks)
J -- 10
K -- 8
L J 6
M J 3
N K, M 5
O K, M 7
P L, N 8

Draw the diagram by using the information above,

and determine the project duration, critical activity
and path slacks
© 2014 Pearson Education, Inc. 3 - 37
© 2014 Pearson Education, Inc. 3 - 38
 PM Today – Necessary?
▶ Frustration with cost & schedule overruns
▶ Frustration with reliability of production estimates
▶ Management challenges exist today:

▶ Only 44% of projects are completed on time

▶ On average, projects are 189% over-budget
▶ 70% of completed projects do not perform as expected
▶ 30% of projects are canceled before completion
▶ On average, projects are 222% longer than expected

▶ PM has been shown to improve this performance

These statistics were compiled by an independent monitoring group, The Standish Group, and represent the
US national average for 1998

© 2014 Pearson Education, Inc. 39 3 - 39

PERT Computational Algorithm
Earliest start (ES) =earliest time at
which an activity can start, assuming
all predecessors have been
completed
Earliest finish (EF) =earliest time at
which an activity can be finished
Latest start (LS) =latest time at which
an activity can start so as to not
delay the completion time of the
entire project
Latest finish (LF) =latest time by
which an activity has to be finished
so as to not delay the completion
ES EF
time of the entire project

LS LF
© 2014 Pearson Education, Inc. 3 - 40
 PERT: Forward Pass
Begin at starting event and work forward
Earliest Start Time Rule:

 If an activity has only one immediate

predecessor, its ES equals the EF of the
predecessor
 If an activity has multiple immediate
predecessors, its ES is the maximum of
all the EF values of its predecessors

ES = Max (EF of all immediate predecessors)

© 2014 Pearson Education, Inc. 3 - 41

 PERT: Forward Pass
Begin at starting event and work forward
Earliest Finish Time Rule:

 The earliest finish time (EF) of an activity

is the sum of its earliest start time (ES)
and its activity time

EF = ES + Activity time

© 2014 Pearson Education, Inc. 3 - 42

 PERT: Forward Pass (Example 3.4)
Step 1: Use forward pass to calculate ES and EF
ES EF 2 4 4 7
LS LF
2 3
0 2
C F
2
0 0 A 4 4 8 2

E H
Start 13 15
3 4 5

B D G

0 3 3 7 8 13

© 2014 Pearson Education, Inc. 3 - 43

 PERT: Backward Pass
Begin with the last event and work backwards

Latest Finish Time Rule:

 If an activity is an immediate predecessor

for just a single activity, its LF equals the
LS of the activity that immediately follows
it
 If an activity is an immediate predecessor
to more than one activity, its LF is the
minimum of all LS values of all activities
that immediately follow it
LF = Min (LS of all immediate following activities)

© 2014 Pearson Education, Inc. 3 - 44

 PERT: Backward Pass
Begin with the last event and work backwards

Latest Start Time Rule:

 The latest start time (LS) of an activity is

the difference of its latest finish time (LF)
and its activity time

LS = LF – Activity time

© 2014 Pearson Education, Inc. 3 - 45

 PERT: Backward Pass (Example 3.4)
Step 2: Use backward pass to calculate LS and LF
ES EF 2 4 4 7
LS LF 2 4 10 13
0 2 2 3

0 2 C F
2
0 0 A 4 4 8 2
0 0 4 8
E H
Start 13 15
3 4 5 13 15

B D G

0 3 3 7 8 13
1 4 4 8 8 13
© 2014 Pearson Education, Inc. 3 - 46
 PERT: Slack time & Critical
activity
After computing the ES, EF, LS, and LF times
for all activities, compute the slack time for
each activity, and identify the critical activity.

 Slack is the length of time an activity can

be delayed without delaying the entire
project

Slack = LS – ES = LF – EF

 Critical activity is an activity with zero

slack
© 2014 Pearson Education, Inc. 3 - 47
 PERT: Critical activity &
Project duration
 Noncritical activity is an activity with a
positive slack

 Project duration is the time to finish the

whole project.

Project duration = LF of ending activity

= EF of ending activity

© 2014 Pearson Education, Inc. 3 - 48

 PERT: Critical Activity (Example 3.4)
Step 3: Calculate activity slack and decide critical activities
& project duration Slack = 0 Slack = 6
2 4 4 7
Slack = 0 2 4 10 13
2 3
0 2
C F
Slack = 0 0 2 2
0 0 A 4 4 8 2
0 0 4 8
E H
Start Slack = 0 13 15
3 4 5 13 15

B G Slack = 0
D
0 3 3 7 8 13
1 4 4 8 8 13
© 2014 Pearson Education, Slack
Inc. =1 Slack = 1 Slack = 0 3 - 49
 PERT: Critical Activity (Example 3.4)
Critical activities: A, C, E, G, H
Project duration is 15 weeks. Slack = 0 Slack = 6
2 4 4 7
Slack = 0 2 4 10 13
2 3
0 2
C F
Slack = 0 0 2 2
0 0 A 4 4 8 2
0 0 4 8
E H
Start Slack = 0 13 15
3 4 5 13 15

B D G Slack = 0

0 3 3 7 8 13
1 4 4 8 8 13
© 2014 Pearson Education,Slack
Inc. =1 Slack = 1 Slack = 0 3 - 50
 Note
▶ Activity slack time:
▶ PERT Algorithm
▶ Example 3.4
▶ Path slack time:
▶ Deterministic PERT Analysis
▶ Example 3.3, 3.2

© 2014 Pearson Education, Inc. 3 - 51

PERT: Computational Algorithm
(Example 3.5)
Activity
Immediate
Predecessors
Estimated Time
(weeks)
(1) Construct a PERT
A — 7 network for this project by
B — 3 using AON convention
C B 9
D A, C 5
E D 2
F C 5
Dummy Dummy
Starting Ending
7 5 2 Activity
Activity
A D E

Start
End
3 9 5
B C F
© 2014 Pearson Education, Inc. 3 - 52
 PERT: Example 3.5
Step 1: Use forward pass to calculate ES and EF
ES EF
LS LF
0 7 12 17 17 19

7 5 2
0 0 A D E
19 19

Start 3 9 5 End
B C F
0 3 3 12 12 17

© 2014 Pearson Education, Inc. 3 - 53

 PERT: Example 3.5
Step 2: Use backward pass to calculate LS and LF
ES EF
LS LF
0 7 12 17 17 19
5 12 12 17 5 17 19 2
7
0 0 A D E
19 19
0 0
19 19
Start 3 9 5 End
B C F
0 3 3 12 12 17
0 3 3 12 14 19

© 2014 Pearson Education, Inc. 3 - 54

 PERT: Example 3.5
Step 3: Calculate activity slack and decide critical activities & project
duration
Slack = 5 Slack = 0 Slack = 0
0 7 12 17 17 19
Slack = 0 5 12 12 17 5 17 19 2
7 Slack = 0
0 0 A D E
19 19
0 0
19 19
Start 3 9 5 End
B C F
0 3 3 12 12 17
0 3 3 12 14 19

Slack = 0 Slack = 0 Slack = 2

© 2014 Pearson Education, Inc. 3 - 55
 PERT: Example 3.5
Slack = 5 Slack = 0 Slack = 0
0 7 12 17 17 19
Slack = 0 5 12 12 17 5 17 19 2
7 Slack = 0
0 0 A D E
19 19
0 0
19 19
Start 3 9 5 End
B C F
0 3 3 12 12 17
0 3 3 12 14 19
Slack = 0 Slack = 0 Slack = 2

Critical activities are B, C, D, E.

Project duration is 19 weeks.
 EX3 in class
Use the computational algorithm to determine the critical
activities & project duration
10 6 8
J L P

3 5
M N End
Start
8 7
K O

© 2014 Pearson Education, Inc. 3 - 57

 Advantages of PERT/CPM
1. Especially useful when scheduling and
controlling large projects
2. Straightforward concept and not
mathematically complex
3. Graphical networks help highlight
relationships among project activities
4. Critical path and slack time analyses help
pinpoint activities that need to be closely
watched

© 2014 Pearson Education, Inc. 3 - 58

 Advantages of PERT/CPM
5. Project documentation and graphics point
out who is responsible for various activities
6. Applicable to a wide variety of projects
7. Useful in monitoring not only schedules but
costs as well

© 2014 Pearson Education, Inc. 3 - 59

 Limitations of PERT/CPM
1. Project activities have to be clearly defined,
independent, and stable in their
relationships
2. Precedence relationships must be specified
and networked together
3. Time estimates tend to be subjective and
are subject to fudging by managers
4. There is an inherent danger of too much
emphasis being placed on the longest, or
critical, path

© 2014 Pearson Education, Inc. 3 - 60