PROJECT

MANAGEMENT
CPM , PERT AND MSP
CONSTRUCTION MANAGEMENT
AISHWARYA VASANT SANAP
ROLL NO 2
FIRST YEAR M.ARCH
DR. D. Y. PATIL COLLEGE OF ARCHITECTURE, AKURDI.
 What is a project ?
‘’ A project is a series of activities directed to
accomplishment of a desired objective.”

For example – major event like a wedding or

PROJECT any construction project.
AND
What is a project Network ?
PROJECT
NETWORK ‘’ A flow chart that graphically depicts the
sequence, interdependencies, and start and
finish times of the project through the
network.
 Provi des the basis for
s cheduling labor a nd
equipment.

Benefits of Identifies activities that a re critical

a nd ca n not be delayed.
Enha nces communication among project
pa rti cipants.

Project
Network : Provi des the basis for Provi des an estimate of the
budgeting cash flow. project’s duration.
 Network Diagrams

Activity – on – Arrow (AOA) Activity – on – Arrow (AOA)

• Uses nodes to represent the activities & • Uses arrows to represent the activities & nodes
arrows to precedence relationship. to represent events.

• It is event oriented. • It is event oriented.

• Dummy Activity is used to clearify the precedence
relationship between the two activities. It is a
zero time activity & consumes no resources.

B 3 D
A
1 2 DUMMY 6 7 8
G H
C 4 5 F
E
 GANTT CHART
Advantages Limitations
• Gantt chart are quite commonly used. • Do not clearly indicate details regarding the
process of activities.
• They provide as easy
graphical representation of when • Do not give clear indication
activities (might) take place. of interrelationship between the separate
activities.
 Network Planning Techniques

PERT CPM
Program Evaluation & Review Critical Path Method
Technique
• Project management technique that • step-by-step project
shows the time taken by each component management technique
of a project, and the total time required for process planning that defines —
for its completion. critical and non-critical tasks with the goal
of preventing time-frame problems.
• PERT breaks down the project
into events and activities, and lays down • Ideally suited to projects consisting of
their proper sequence, relationships, and numerous activities that interact in a
duration in the complex manner
form of a network.
CPM
• Critical path is the sequence of activities between a project’s start & finish that takes the longest
time to complete.
• CPM was developed by Duo Pont & the emphasis was on the trade – off between the cost of
project & its overall completion time.
• Steps In Determining Critical Path :

Specify Determine Estimate the Identify

the Draw the Update
the activity the critical the CPM
sequence network completion path.
individual of the diagram. Diagram.
time.
activities activities.
 CPM Benefits :

• Provide a graphical view of the project.

• Predicts the time required to complete the project.

• Shows which activities are critical to maintaining the schedule &

which are not.
Benefits &
Limitations of CPM :
Limitations of
• While CPM is easy to understand & use, it does not consider the time
CPM : variations that can have a great impact on the completion time of a
complex project.

• CPM was developed for complex but fairly routine projects with
minimum uncertainly in the project completion times.

• For less routine projects there is more uncertainly in the completion

times, and this uncertainly limits its usefulness..
 Time estimates include:

• Total time for completion.

• ES- Earliest Start time: the earliest time at which the activity can
Time start given that its precedent activities must be completed first..

Estimation
• EF-Earliest finish time: equals to the earliest start time for the
activity plus the time required to complete the activity. ( EF =
ES + time required to complete the activity)
in CPM • LF- Latest finish time: the latest time in which the activity can be
completed without delaying the project.
• LS- Latest Start time: equal to the latest finish time minus the
time required to
complete the activity. ( LS = LF — time required to complete the
activity)
• Forward Pass: The early start and early finish times are calculated
by moving forward through the network and considering the
predecessor activities.

• Backward Pass: The latest start and finish times are calculated by
moving backward through the network.

• Slack Time: Slack time for an activity is the difference between its
earliest and latest start time or between the earliest and latest finish
time. Critical path is the path of activities having zero Slack time.
 Immediate Immediate
Activity Predecessor Predecessor A C

A - 5
Start Finish
B - 6

C A 4 B D

D A, B 2

ES Earliest Starting
( Time )
Activity ES EF EF Earliest Finishing
Slack
Time LS Latest Starting
Exp time LS LF
LF Latest Finishing

Slack Difference Time

PERT
• In PERT activities are shown as a network of precedence relationships using activity-
on-arrow network construction.

• PERT was developed by the US Navy for the planning and control of the Polaris
missile program and the emphasis was on completing the program in the shortest
possible time.

• Steps In PERT:

Identify Determine Estimate Determine Update

the proper Draw the the time the the
specific sequence network required critical PERT
activities. of the diagram. for each path. chart .
activities. activity
.
 • PERT Benefits :
•
PERT is useful because it provides the following
information:

• 1.Expected project completion time.

Benefits • 2. probability of completion before a specified date.
•
& Limitations 3.The critical path activities that directly impact the
completion time.
of PERT : •
4.Activities Start and end dates.
•
Limitations of PERT :
•
1.The activity time estimates are somewhat subjective
and depend on judgment,
so there may be biasedness in the estimate.
 • Optimistic time (to) — It is the shortest time
in which the activity
can be completed.

• Most likely time (tm) — It is the probable

time required to perform
Time the activity.

Estimation • Pessimistic time (tp) — It is the longest

in PERT estimated time required to
perform an activity.

• Expected time, te = to + 4tm + t

6
 • PERT is often used along with the critical path method (CPM), which
is a network analysis that discerns which tasks and activities must be
completed to deliver a successful project. They’re used together
when planning costs, scheduling resources and controlling a project
to keep it on schedule. When combined, they result in a more
Using CPM & conservative view of the duration of tasks and activities.

• While the PERT asks for the most likely, the optimistic and pessimistic
PERT in durations of a task, the CPM asks similar questions—only phrased
slightly differently. CPM uses a single time estimate for each task and
Project focuses on the analysis of the duration task sequences to estimate
the total time required to complete a project.
Management • CPM allows project managers to identify the critical activities of a
project, which are those that can’t be delayed. Using them together
within a project management software results in a more complete
analysis of the project plan and a more accurate timeline.
 • PERT/CPM is used to plan the scheduling of individual activities that make
up a project.

• PERT/CPM can be used to determine the earliest/latest start and finish

times for each activity, the entire project completion time and the slack time
for each activity.

• PERT and CPM are similar in their basic approach, they do differ in the way
activity times are
estimated.

Both CPM • For each PERT activity three times (optimistic, pessimistic and most likely
times) are combined to determine the expected activity completion time and

and PERT
its variance. Thus, PERT is a probabilistic technique: it allows us to find the
probability of the entire project being completed by any given date.

• CPM, on the other hand, is called a deterministic approach. It uses two time
estimate, the normal time and the crash time, for each activity.

• PERT and CPM have been used to plan, schedule, and control a wide
variety of projects:
• R&D of new products and processes.
• Construction of buildings and highways.
• Maintenance of large and complex equipment.
• Design and installation of new systems.
 1. When will the entire project be completed?

2. What are the critical activities or tasks in the project, that is, the ones that
will
delay the entire project if they are late?

3. Which are the noncritical activities, that is, the ones that can run late
without

Questions
delaying the whole project's completion time?

4. What is the probability that the project will be completed by a specific

answered date?

5. At any particular date, is the project on schedule, behind schedule, or a

by PERT & head

of the schedule?

CPM 6. On any given date, is the money spent equal to, less than, or greater than
the
budgeted amount?

7. Are there enough resources available to finish the project on time?

8. If the project is to be finished in a shorter amount of time, what is the best

way
to accomplish this at the least cost? (crash analysis)
 • PERT and the Critical Path Method (CPM) both make
use of network diagrams to estimate the duration of
individual activities and projects,
but they’re different. For instance, the PERT diagram
What Is the represents activities as arrows and milestones as
Difference nodes. While, on the other hand, the CPM diagram
depicts activities as nodes.
Between • Also, PERT offers the possibility of including three
PERT and time estimates for activities (optimistic, most likely
and pessimistic) which is not possible with CPM.
CPM? This is because PERT was designed to plan
projects with uncertain activity times, while CPM is
used for projects where activity times are known.
 CPM PERT
• CPM uses activity oriented network. • PERT uses event oriented Network.
• Durations of activity may be estimated • Estimate of time for activities are not
with a fair degree of accuracy. so accurate and definite.
• It is used extensively in construction • It is used mostly in research and
projects. development projects, particularly
• Deterministic concept is used. projects of non-repetitive nature.
• CPM can control both time and cost • Probabilistic model concept is used.
when planning. • PERT is basically a tool for planning.
• In CPM, cost optimization is given • In PERT, it is assumed that cost varies
prime importance. directly with time.
• The time for the completion of the • Attention is therefore given to minimize
project depends upon cost optimization. the time so that minimum cost results.
The cost is not directly proportioned to Thus in PERT, time is the controlling
time. Thus, cost is the controlling factor. factor.
 • Managing Successful Programmes (MSP®) is a
methodology that comprises a set of principles
and processes for use when managing a programme.
A programme is made up of a specific set of projects
identified by an organisation that together will deliver
some defined objective, or set of objectives, for
the organisation. The objectives, or goals, of the
programme are typically at a strategic level so that
What is the organisation can achieve benefits and
improvements in its business operation.
MSP? • For any organisation or individual that needs to
manage and control related projects (portfolio
of projects), Managing Successful Programmes (MSP)
programme management is a management tool for
bringing together people, activities and information to
achieve the end goal.
 • A programme is made up of a number of projects identified by an
organization that will deliver a defined objective, or set of objectives,
for the organization. A programme can only succeed if the projects
within the programme are completed, therefore, without programme
management, the projects would be uncoordinated and not
integrated into a final goal.

• Programme management is becoming an increasingly important

aspect of managing changes within business - whether it internal,
such as increasing the range of products, or external, such as
What implementing new government policy. Programme management is a
structured way of handling change proactively and provides a
is Programme framework for handling complexity and risk.

Management? • MSP defines programme management as, the action of carrying out
the coordinated organization, direction, and implementation of a
dossier of projects and transformational activities (i.e. the
programme) to achieve outcomes and realize benefits of strategic
importance to the business.

• MSP programme management is designed for any organization or

individual that needs a controlled approach to managing
programmes, and is intended for senior managers, project managers,
programme office staff, and project and programme management
consultants.
Aims of MSP Programme Management:
• Provide a framework of best practice principles.
• Define and implement the governance requirements for the programme.
• Adapt theory to practice.
• Organise people to ensure responsibilities and lines of communication are clear.
• Plan the work in a way which achieves results.
• Ensure that the organisation benefits from undertaking the programme.
• Ensure that all interested parties (the stakeholders) are involved. To be available
for organisations and individuals
• Resolve issues which arise
• Identify and manage risks
• Ensure quality
• Keep up to date information which tracks the continually changing environment.
Improve decision making and implement beneficial change
• Audit a programme to ensure standards are being followed
MSP transformational flow processes
• Identifying a programme - This is triggered by the approval of a ‘Programme Mandate’, setting the stage to lay out the tangible
business benefits of a proposed change. The main output will be the ‘Programme Brief’.

• Defining a programme - Once the Programme Brief is approved, it can be used to help create the ‘Programme Definition
Document’. This will summarise the documentation created at this stage of the process, helping to fully define the upcoming
program.

• Managing the tranche - This process implements the governance for the program, while also acknowledging that it may need to
be changed over time. This ‘governance’ will be made up of the processes, procedures and functions which define how the
program is set up, managed and controlled.

• Delivering the capability - This is the process of coordinating and managing project delivery. It includes starting, monitoring and
concluding projects listed in the ‘Project Dossier’, in order to deliver outputs which will enable the capabilities described in the
Blueprint.

• Realizing the benefits - This process controls the benefits and ensures their successful realization. It provides the capabilities to
enable business change and, in turn, create successful outcomes and benefits.

• Closing the program - Part of managing a successful program is realizing when to conclude it