Project Management - CPM
Project Management - 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
Six Steps PERT & CPM
Define the project and prepare the work breakdown structure
Develop relationships among the activities - decide which
activities must precede and which must follow others
Draw the network connecting all of the activities
Assign time and/or cost estimates to each activity
Compute the longest time path through the network – this is
called the critical path
Use the network to help plan, schedule, monitor, and control
the project
Questions PERT & CPM Can Answer
When will the entire project be completed?
What are the critical activities or tasks in the project?
Which are the noncritical activities?
What is the probability the project will be completed by a specific date?
Is the project on schedule, behind schedule, or ahead of schedule?
Is the money spent equal to, less than, or greater than the budget?
Are there enough resources available to finish the project on time?
If the project must be finished in a shorter time, what is the way to
accomplish this at least cost?
Network, Activity, Event
2
A
C
1 3
B
Activities : A, B, C
Events : 1, 2, 3
Definition
1. Network - Pictorial representation
of the interrelationship of all
events & activities.
2. Event - instant of time when
certain activities have been
started or completed.
3. Activity - The work content
required to be achieved to
accomplish an event.
Errors in Network
1. Looping
2. Parallel activity
Looping
2
A
C
1 3
B
Parallel activity
A
1 2
2
A
dummy
1
B 3
An example of dummy activity
A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
(a) A B C B, which comes
before C A B C
A A
A and B must both
(b) C be completed
before C can start C
B B
B
B and C cannot
(c) A begin until A is B
completed A
C C
A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D
B and C cannot
begin until A is
completed
A B D D cannot begin A B D
until both B and C
(f) are completed Dummy
A dummy activity activity
C
C
is again
introduced in AOA
Critical Path Method (CPM)
Earliest start (ES) = earliest time at which an activity can start, assuming
all predecessors have been completed
Latest start (LS) = latest time at which an activity can start so as to not
delay the completion time of the entire project
• For Event : E, L,
A - J : Activities
1 - 8 Events
E=9 E=14
D 5
2
B 5 H
9 E=4 1 E=(15,13, 12) = 15
1 A 3
F 7
E=0
4 9 J
1 8 0 2
C G 8 8
4 3
E 6 I E=(17,20) = 20
E=1 E=(4, 12) = 12
E = Earliest Occurrence
time of Event
L=12 L=17
D
2 5
B 5 H
9 L=( 4,9 ) = 4 1 L=18
1 A 3
F 7
4 9 J
1
L= ( 3,0,8 ) G 8 0 2 8
C 3 8
=0 4 6 L=20
E I
L=9 L=( 12,18 ) = 12
L = Latest Occurrence
time of Event
E=9 E=14
L=12 L=17
2
D 5 E=(15,13, 12)=12
5
B E=4, L=(9,4)=4 H
9 1 L=18
1 A 3 F 7
4 9 J
E=0 C 1 E=(14,20)=20
G 8 0 8
2 8
L=0 4 3 L=20
E 6 I
E=1
E=(4, 12)=12
L=9
L=(18,12)=12
E=9 E=14
L=12 L=17
D
2 5
B 5 E=(15,13, 12)=12
H
9 E=4, L=(9,4)=4 1 L=18
A F
1 3 7
4 9 J E=(14,20)=20
E=0 C 1 2
G 8 0 8 L=20
3 8
L=0 4 6
E I
E=1 E=(4, 12)=12
L=9 L=(18,12)=12
For Events 1,3,6 and 8 E = L
Hence 1, 3, 6 and 8 are Critical Events
E=9 E=14
L=12 L=17
D
2 5 E=(15,13, 12)=12
B 5 H
9E=4, L=(9,4)=4 1 L=18
A F
1 3 7
4 9 J
E=0 C 1 E=(14,20)=20
G 8 0 2
8
L=0 4 3 8 L=20
E 6 I
E=1 E=(4, 12)=12
L=9 L=(18,12)=12