Course Title

Project Engineering

Chapter 3
PROJECT PLANNING AND
SCHEDULING

Lecture 7 (Week 7)
Program evaluation and review technique
(PERT), Difference between CPM and
PERT, Project scheduling with limited
resources and Multi project scheduling

Lecturer: Associate Prof Ishwar Adhikari

Learning Objective
The main objective of this lecture is to understand about:
 Concept of Program evaluation and review technique (PERT).
 Difference between CPM and PERT.
 Project scheduling with limited resources.
 Multiple project scheduling.

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
3.5.2.2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)
Critical path method (CPM) is a deterministic approach for determining the duration of an
activity in a project. CPM is readily applicable to the projects comprising of known straight
forward activities, stable technology using standard materials and known equipment. [1]
Although project manager tries to complete the project in minimum possible time, there are
many factors, both internal and external to the organizations which have influence on the
completion time of each activity in the project. [2]
There is an element of uncertainty in deciding upon the completion time of each activity and
consequently the estimated project completion time. Example: Research and Development
project. To evaluate such type of project where there is some level of uncertainty PERT method
is used for determining the duration of an activity as well as the project. The special project
office in the U.S. Navy, concerned with performance trends on large military development
programs introduced PERT on its Polaris weapon system in 1958. [3]
It is a probabilistic approach for estimating the duration of an activity and event oriented
network diagram. PERT is used in the completely newly developed project such as Research
and design, space and aerospace industry where there may not be record of past experiences in
the particular field. PERT system is preferred for those projects in which correct time
determination for various activities cannot be made. PERT is a technique that statistically
presents knowledge about the activities and the uncertainty related with activities. [4]
In research and development project, where there is some extent of uncertainty, the exact
estimation of time of completion of various activity is difficult. Therefore, PERT uses three
time estimates for each activity with a view to overcome uncertainty in time estimates.
(a) The most optimistic time (t o)
(b) The most pessimistic time (t p)
(c) The most likely time (t m)
(a) The most optimistic time (to)
It is the shortest possible time in which an activity can be completed under ideal conditions.
[5]This time assumes that everything will go according to plan and with a minimal amount of
difficulties. [3]
(b) The most pessimistic time (tp)
It is the maximum possible time it would take to complete an activity under worst conditions.
In arriving at the pessimistic time, it is assumed that everything is unfavorable for completing
the activity in time and every possible delay and difficult situation is encountered. E.g. Force
Majeure
(c) The most likely time (tm)
It is also called the most reliable time or the most probable time. The most optimistic and
pessimistic times are two ends of a spectrum denoting the range of variation in the activity
Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering
College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
duration. [1]Somewhere in between the optimistic and pessimistic time, there lies the most
probable time. It is the time in which an activity can be completed under normal conditions
which is neither favourable nor non favourable.
Once these three time estimates are made for all the activities, the most expected time (t e) is
then calculated.
The most expected time (te)
It is the average time required to complete an activity also known as the PERT weighted
average time. PERT assumes that the optimistic time (t o) and the pessimistic time (t p) are
equally likely to occur while the most likely time (tm) is four times more likely to occur than
the others.
𝒕𝒐 + 𝟒𝒕𝒎 + 𝒕𝒑
𝒕𝒆 =
𝟔

Fig Source: [2]

The formula is a linear approximation of Beta distribution whose accuracy is considered

reasonably sufficient. [2] After having arrived at the expected time (t e) for each activity, the
critical path is found out by making forward pass computation and backward pass computation
as in CPM. The variability of each activity’s time duration is then measured by calculating the
standard deviation (σ) and variance (σ2) of each activity:
𝒕 −𝒕 𝟐
Variance (σ2) =[ 𝒑 𝟔 𝟎 ]
𝒕𝒑−𝒕𝟎
Standard deviation (σ) = [ ]
𝟔

NUMERICAL EXAMPLE
Consider the following activities in a network.
• Determine expected completion time and critical path.
Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering
College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
 • Variance and standard deviation of the critical path

3
t= 1, 4, 7 t= 3.5, 4, 4.5

t=1, 2, 3

1 2 5 t= 2, 6.5, 8
6

t= 3,4,11 4 t= 5, 6, 13

PERT Average time / the most expected time (µ/te) = (to + 4tm + tp)/6
For Activity 1-2, te = (1+ 4*2+ 3) / 6 = 2
Standard deviation (σ) = t p-to/6 = 2/6 =1/3
Variance = σ2 = 1/9
Repeating the same process for all the activities.
S.N. Activity to tm tp te σ σ2 Remark
1 1-2 1 2 3 2 1/3 1/9 CP
2 2-3 1 4 7 4
3 2-4 3 4 11 5 4/3 16/9 CP
4 3-4 3.5 4 4.5 4
5 4-5 5 6 13 7 4/3 16/9 CP
6 5-6 2 6.5 8 6 1 1 CP
Expected Project Duration = Summation of expected time along critical path
= 2+5+7+6 = 20 days.
Variance of Project (σ2) = Summation of variance along CP
= 1/9 + 16/9 + 16/9 + 1 = 42/9
Standard Deviation (σ) = (42/9)1/2 = 2.16.

3.6 DIFFERENCE BETWEEN CPM AND PERT

SN CPM PERT
1 Time estimates are Time estimates are probabilistic
deterministic so use single with uncertainty in activity
time estimate for activity duration so use three time
duration. estimates
2 Activity oriented network Event oriented network diagram
diagram
3 Focused on time cost trade Focused on time only; no cost
off

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
 4 More suitable for simple More suitable for new and
and repetitive projects like complex projects like research
construction and development.
5 Easy to maintain. Costly to maintain

3.7 PROJECT SCHEDULING WITH LIMITED RESOURCES

A resource is a physical variable, such as men, materials, machines, space and money that is
required for completing various activities of a project. The network analysis (CPM and PERT)
is valid only if the availability of resources is liberal or unlimited. In a real life project, it is a
very common experience that the resources are frequently in a limited supply causing delay in
completion of project. [1] In some cases, particular material or some machinery may not be
available in the middle of the project due to some reasons beyond the control of project
manager. Availability of skilled and unskilled labor and the equipment may be restricted as
well as availability of fund may be restricted. Usually activities of project are scheduled in such
a way that the demand of various resources is more or less uniform all along the project
duration. [4]This is not always the case and the project has to be rescheduled considering the
constraints of resources which is project scheduling with limited resources.
Following constraints are imposed due to the limited resources:
 Starting of an activity is delayed.
 Non critical job may be critical due to delay in starting.
 More than one type of resource may be scarce at a time.
 Resource may be scarce in the middle of performance of a particular job etc.
These above mentioned constraints can be overcome by the proper allocation of the resources.
RESOURCE ALLOCATION
Resource allocation in project management involves identifying and assigning the
best available best-fit resources to every project for a specific period of time. [6]It
also monitors the resource’s workload throughout the project life cycle and reassigns them if
necessary. Resource aggregation, or resource loading, is simply the summation, on a period-
by-period basis, of the resources required to complete all activities based on the resource
allocation carried out in the previous stage.
The requirements of various resources for a given network of the project are determined using
the early start and late start schedule of each activity. The resource usage profile are usually
shown graphically as a histogram. Such aggregation may be done on an hourly, daily, or weekly
basis, depending on the time unit used to allocate resources. Two methods are commonly used
for the resource allocation:
(a) Resource Levelling
(b) Resource Smoothing

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
(a) Resource Levelling
It is an attempt to reduce peak resources requirement and smooth out period to period
assignments within the constraints of project duration. A project manager often comes across
mismatch between the availability of resources and the requirement of resources. This means
that there are surplus resources available on someday and there is deficit of resource on some
other days. [2] Resource levelling is the process that ensures resource demand does not exceed
resource availability.
(b) Resource Smoothing
There is no constraint on project completion time. There is only constraint of resource
availability. However it doesn’t mean that the project duration can be stretched too far. Increase
in project duration will lead to indirect expenses (overheads). Hence the project duration can
be extended to satisfy resource constraint. It shall be done in such a way that the project
duration is extended to the minimum possible extent and at the same time satisfying the
resource constraints. [2]

Steps of resource allocation

1. Draw the network diagram of the project from the provided data of activities and
resources required for each activity.
2. Calculate the earliest occurrence time and latest occurrence time of each node and slack
of each node.
3. Establish the critical path and float of each activity.
4. Again draw the time scaled network diagram assuming the early start schedule of each
activity. Represent the critical path by horizontal line.
5. Represent the float of the non-critical activity by a dotted line in a time scaled network.
6. Mark the requirements of resources for each of the activity above or below the arrow
of an activity.
7. Note down the total requirements of the resources for each day and show the resource
usage profile using the resource histogram.
8. Resource usage profile provides the fluctuation of the resources each day and check if
it exceeds the available resources.
9. By using the hit and trail, shift the starting date of the non-critical activity keeping in
view that the required resources shall not exceeds the available resources.
10. If resource levelling is used, time is constraint and if resource smoothing is used,
resource is constraint.
11. Again draw the network using late start schedule using the time scale.
12. Represent the resources usage profile graphically with the help of resource histogram.
Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering
College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
EXAMPLE [4]
Consider the following information of a project. Draw the network diagram. Allocate the
mason using early start schedule and late start schedule without extending the project duration
if the manpower is limited to 10 numbers per day
Activity Duration (days) Mason per day
1-2 2 1
2-3 3 2
2-4 4 3
2-5 2 1
3-10 4 2
4-6 2 3
4-7 4 3
5-9 4 5
6-8 2 1
7-9 5 1
8-9 3 1
9-11 2 1
10-11 3 1
11-12 2 1

Here the critical path is: 1-2-4-7-9-11-12, with the duration of 19 days.

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
 Using Early start

Resource Histogram

The graphical representation of the project resources with respect to time is called resource
histogram.
 Here the mason limitation per day is 10 numbers and we can see clearly in the above
figure that the mason exceeds the limited number in the day 7 and 8.
 To overcome this, we have to use the available float of the non-critical activity suitably.
We shift the activity 5-9 by seven days.

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
 Using Late start

3.8 MULTIPLE PROJECT SCHEDULING

Scheduling two or more projects simultaneously (i.e., starting at the same point in time and
each continuing thereafter), such that the sum of weighted project delays is minimized. [7]A
large project is generally broken down into convenient sub-projects and each sub-subproject
can be analyzed as an independent project. However, situations may occur where the beginning
or the end of a sub-project may depend on the beginning or the end of one or more different
sub-projects. As the resource allocation program involves allocation of resources to a number
of sub-projects at a time, this is commonly known as multiple project scheduling.
Two types of situations arise during the multiple project scheduling.
 A particular type of resource may be required at the same time for the execution of two
sub projects, or entirely different project. In such case, scheduling should be so done
that there is no time clash.
 When a project is divided into several sub-projects, there are events common to more
than one sub-project. Such common events are known as interface events because they
act as linking elements between the sub projects

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.
REFERENCES:
[1] Fundamentals of PERT/CPM and Project Management: S. K. Bhattacharjee, Second
Edition, Khanna Publishers, New Delhi, India, 2002.
[2] Project Management: K. Nagarajan, New Age International (P) Ltd. Publishers, New Delhi,
India, 2001.
[3] PROJECT MANAGEMENT: A System Approach to Planning, Scheduling and Controlling:
Harold Krezner, Second Edition, CBS publishers and distributors, New Delhi, India, 1987.
[4] Project Planning and Control with PERT and CPM: Dr. B.C. Punmia and K.K.Khandelwal,
Third Edition, Laxmi Publications (P) Ltd, New Delhi, Inida, 1987.
[5] Construction Management and Accounts: B.L.Gupta and Amit Gupta, Third Edition,
Standard Publishers Distributors, New Delhi, India, 2000.
[6] https://www.saviom.com/blog/resource-allocation-a-guide-on-how-to-apply-it-on-project-
management
[7] https://www.tandfonline.com/doi/abs/

Prepared By: Associate Prof. Ishwar Adhikari/Department of Civil Engineering/Kathmandu Engineering

College (Affiliated to Tribhuvan University), Kathmandu, Nepal.