PROJECT

MANAGEMENT
BITS Pilani Dr. ARUN MAITY
Pilani Campus
 BITS Pilani
Pilani Campus

DEVELOPING PROJECT PLAN

CHAPTER NO 6 TEXTBOOK T1
CPM OR PERT ANALYSIS

• Project consists of a well-defined collection of jobs or

activities which when completed marks the end of the
project

• Job must be started and stopped independently of each

other within a given sequence

• Jobs must be performed in technological sequence :

foundation of the house must be constructed before the
walls are erected

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PROJECT NETWORK

• It is a tool for planning, scheduling and monitoring

project progress
• It is a graphic flow chart of the project job plan
• It depicts the project activities that must be completed,
logical sequences, the interdependencies of the activities
to be completed
• Uses the information from work breakdown structure
• Helps in taking decisions regarding project time, cost
and performance

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• It provides the basis for scheduling labor and equipment

• It enhances communication that melds all managers and

groups together in meeting time, cost and performance
objectives of the project

• Identifies critical and non-critical activities

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DEVELOP A NETWORK

• Activity: It is an element in the project that consumes

time: working or waiting

• Activities are placed in a sequence that provides orderly

completion of the project

• Networks are built using nodes and arrows

• Node depicts an activity and the arrow shows

dependency and project flow

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BITS Pilani, Pilani Campus
TERMINOLOGY

• Activity: An activity is an element of the project that

requires time, may or may not consume resources

• Merge activities: An activity that has more than one

activity immediately preceding it

• Parallel activities: Activities that can take place at the

same time

• Path: A sequence of connected, dependent activities

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• Event: Represents a point in time when an activity is
started or completed. It does not consume time

• Burst event: Activity that has more than one activity

immediately following it

• Dummy : It shows only relationships between two jobs

and does not consume time or resources

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TWO APPROACHES

AOA DIAGRAM: ACTIVITY ON ARROW DIAGRAM

AON DIAGRAM: ACTIVITY ON NODE DIAGRAM

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TWO APPROACHES
• AOA DIAGRAM: ACTIVITY ON ARROW
DIAGRAM
• AON DIAGRAM: ACTIVITY ON NODE
DIAGRAM
EST NODE NUMBER EFT
SLACK ACTIVITY DESCRIPTION
LST DURATION LFT
EST of start node is taken as 0

EFT = EST + DURATION

LFT OF END NODE is same as Ej OF FINAL NODE

LST = LFT – DURATION

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• EARLIEST ACHIEVEMENT TIME = MAXIMUM OF EFTs
OF ALL MERGED ACTIVITIES

– Maximum of EFTs of all merging arrow heads

• LATEST ACHIEVEMENT TIME = MINIMUM OF LSTs OF

ALL BURST ACTIVITIES

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FOR ACTIVITY I  J

Ei = Earliest Achievement Time of node I

Ej = Earliest Achievement Time of node J

Li = Latest Achievement Time of node I

Lj = Latest Achievement Time of node J

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BASIC RULES IN DEVELOPING
PROJECT NETWORKS

• Networks flow typically from left to right

• An activity cannot begin until all preceding connected

activities have been completed

• Arrows on networks indicate precedence and flow

• Arrow can cross over each other

• Each activity should have a unique identification number

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• An activity identification number should be larger than
that of any activities that precede it
• Looping is not allowed: recycling through a set of
activities cannot take place
• When there are multiple starts, a common node can be
used to indicate a clear project beginning on the
network.
• A network should have a single start node and a single
end node

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AON DIAGRAM

• Activity is represented by a node (boxes)

• Node represented as a rectangle (box)

• Dependencies among activities are depicted by arrows

between the rectangles (boxes)

• Predecessor activity: activity that must be completed

immediately before the activity

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• Successor activity: Activity that immediately follow the
said activity

• Concurrent or parallel activity: Activities that can occur

while the activity is taking place

• Dummy jobs are not needed

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NETWORK COMPUTATION
PROCESS
• Forward Pass Calculation:

– Earliest Start Time (EST)

– Earliest Finish Time (EFT)
– Earliest Achievement Time
– Expected Time To Complete The Project

• Backward Pass Calculation

– Latest Start Time (LST)

– Latest Finish Time (LFT)
– Latest Achievement Time

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BITS Pilani, Pilani Campus
• Critical path: Longest path in the network when delayed
will delay the project

• Slack or float time: Duration for which an activity can be

delayed without affecting the project duration
–

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SLACK OR FLOAT

• Total slack: It is the duration by which an activity can be

delayed without affecting the project duration

• TS = LST – EST OR LFT – EFT

• TS = Lj – (Ei + d ij)

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FREE SLACK

• It is the amount of time a job can be delayed without

affecting the early start time of succeeding activities.

• FS = Ej – (Ei + d ij)

• FS = TS – HEAD SLACK

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• INTERFERING SLACK

– It Is The Difference Between Its Total Slack And Free Slack

– INTERFERING SLACK = TOTAL SLACK – FREE SLACK

– INTERFERING SLACK = HEAD SLACK

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• INDEPENDENT SLACK
– It is the excess time between finishing and starting of
two successive activities if the preceding activity ends
as late as possible and the succeeding activity starts
as early as possible

– Independent slack = free slack – tail slack

– Independent slack = ( Ej – Li ) – d ij

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SUPER-CRITICAL
ACTIVITIES
• If the maximum available time for an activity is less than
the activity time then for this activity the total slack will
have negative value.

• Activity whose total slack is negative is known as

supercritical activity

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CRITICAL ACTIVITY

• If the maximum available time for an activity is equal to

the activity time then for this activity total slack is equal
to zero

• Activity for which the total slack is zero is called critical

activity

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SUB-CRITICAL ACTIVITY

• If the maximum available time for an activity is more than

the activity time then for this activity the total slack will
have positive value

• An activity for which total slack is positive is known as

sub-critical activity

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USE OF LAGS

• FINISH TO START (FS = n) : JOB B CANNOT START

UNTIL n DAYS AFTER JOB A IS FINISHED

• START TO START(SS = n): JOB B CANNOT START

UNTIL n DAYS AFTER JOB A IS STARTED

• FINISH TO FINISH (FF = n): JOB B CANNOT FINISH

UNTIL n DAYS AFTER JOB A IS FINISHED

• START TO FINISH (SF = n): JOB B CANNOT FINISH

UNTIL n DAYS AFTER JOB A IS STARTED

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PERT

• Programme Evaluation And Review Technique

– Used In Research & Development
– Technology Is Rapidly Changing
– Products Are Non-standard
• Use Of Aon Diagram
• Uses Three Time Estimate
– Optimistic Time (To)
– Most Likely Time (Tm)
– Pessimistic Time (Tp)
• Variability Of Activity Times

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CALCULATIONS

• Calculate the expected activity duration using three time

estimate
te = (to + 4tm + tp) / 6

1. Draw The Project Network Using Aon Diagram

2. Calculate the critical path and expected project duration (Te)

using forward pass and backward pass calculations

3. Find the variances of each of the activities in the critical path

VARIANCE OF ACTIVITY = { ( tp - to) / 6 }2

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4. FIND THE SUM OF ALL THE VARIANCES OF THE
ACTIVITIES IN THE CRITICAL PATH AND TAKE THE
SQUARE ROOT TO GIVE THE STANDARD DEVIATION (st)
FOR THE PROJECT DURATION WHICH FOLLOWS A
NORMAL PROBABILITY DISTRIBUTION

5. FIND Z = (D – Te) / St
WHERE D IS THE DUE TIME OF COMPLETION
Using Normal Distribution Table, Find The
Probability Of Completing The Project By Due
Date Using Z Values.

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PROBLEM

i j to tm tp
1 2 3 6 15
1 6 2 5 14
2 3 6 12 30
2 4 2 5 8
3 5 5 11 17
4 5 3 6 15
6 7 3 9 27
5 8 1 4 7
7 8 4 19 28

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CALCULATE

• Expected project length and variation of the critical path

• Probability that jobs on the critical path will be completed
by the due date of 41 days
• Probability that the jobs on the next critical path will be
completed by the due date
• Estimate the probability that the entire project will be
completed by due date

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 4
5 7
7 2 14
3 5
11
11 4
6
8
18
11
6 7
SOLUTION

• LENGTH = 36 DAYS VARIANCE = 25

• CRITICAL PATH = 1-2-3-5-8

• 0.84

• 0.84 PATH 1-6-7-8

• 0.84 X 0.84 = 0.71

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TIME SCALE NETWORK