Project Management

Engr. Arexcin Ray C. Timbal

Starting Soon
 Topic Outline:
1. Gantt Chart
2. Critical Path Method (CPM)
3. Program Evaluation and
Review Technique (PERT)
Gantt Charts
A Gantt chart is a bar chart that is often used to track the scheduling of activities in a
project. It can also be used to track budget, resources, and equipment usage. A Gantt
chart, when updated regularly, can give an accurate snapshot of the status (percent
completion) of activities, as well as incurred expenditures and equipment allocations.
Example
A construction project is broken down into seven
stages (A-G). The sequencing of these stages is A
represented by a Gantt chart, as shown. The time B
axis is marked in units of (5-day) weeks. The Gantt
chart shows current completion levels (shaded in C
gray) superimposed on the initially planned D
timeline. The current status of the project at 4
weeks 2 days is shown. Which of the following E
statements is true? F
A. All activities in stage E must be completed G
before the initiation of stage G. 0 1 2 3 4 5 6 7 8
B. The only stage that is on or ahead schedule is G.
C. Of ongoing or completed stages, those with the
lowest levels of completion are C and D.
D. Stages A and D are behind schedule.
Critical Path Method (CPM)
The Critical Path Method formally identifies tasks which must be completed on
time for the whole project to be completed on time, and also identifies which tasks
can be delayed for a while if resources need to be reallocated to catch up on missed
tasks. The following conventions and abbreviations are used in CPM:

D = Activity Duration
ES = Early Start
EF = Early Finish = ES + D ES TF EF
LF = Late Finish Activity
LS = Late Start = LF - D LS D LF
TF = Total Float = LF – EF or LS - ES
FFi = Free Float = min(ESi+1) - EFi
Past Board
The activities that constitute a project are listed. The project starts at t = 0.

Activity Predecessors Successors Duration

Start - A 0
A Start B, C, D 7
B A G 6
C A E, F 5
D A G 2
E C H 13
F C H, I 4
G D, B I 18
H E, F Finish 7
I F, G Finish 5
Finish H, I - 0
 0
Past Board Activity
Start

Activity Predecessors Successors Duration D

Start - A 0 A
A Start B, C, D 7 7
B A G 6
C A E, F 5
D A G 2
B C D
E C H 13 6 5 2
F C H, I 4
G D, B I 18
E F G
H E, F Finish 7
13 4 18
I F, G Finish 5
Finish H, I - 0

What is the earliest finish? H I

A. 32 B. 36 C. 34 D. 38 7 5

Finish
 0
Past Board ES EF
Activity
Start

Activity Predecessors Successors Duration D 0 7

Start - A 0 A
A Start B, C, D 7 7
B A G 6
C A E, F 5 7 13 7 12 7 9
D A G 2
B C D

Forward Pass
E C H 13 6 5 2
Larger EF
F C H, I 4 moves
12 25 12 16 13 31 forward
G D, B I 18
E F G
H E, F Finish 7
13 4 18
I F, G Finish 5
Finish H, I - 0 25 32 31 36
What is the earliest finish? H I
A. 32 B. 36 C. 34 D. 38 7 5

Finish
36
 0
Past Board ES EF
Activity
Start

Activity Predecessors Successors Duration D 0 7

Start - A 0 A
A Start B, C, D 7 7
B A G 6
C A E, F 5 7 13 7 12 7 9
D A G 2
B C D
E C H 13 6 5 2
F C H, I 4
12 25 12 16 13 31
G D, B I 18
E F G
H E, F Finish 7
13 4 18
I F, G Finish 5
Finish H, I - 0 25 32 31 36
CELE Nov 2023 What is the project’s critical path? H I
A. A-D-G-I B. A-C-F-I C. A-C-E-H D. A-B-G-I 7 5

The critical path is the longest sequence of Finish

tasks that must be finished on time in order for
36
the project to be completed.
 0
Past Board ES EF
Activity
Start

Activity Predecessors Successors Duration D 0 7

Start - A 0 A
A Start B, C, D 7 7
B A G 6
C A E, F 5 7 13 7 12 7 9
D A G 2
B C D
E C H 13 6 5 2
F C H, I 4
12 25 12 16 13 31
G D, B I 18
E F G
H E, F Finish 7
13 4 18
I F, G Finish 5
Finish H, I - 0 25 32 31 36
What is the latest finish? H I
A. 32 B. 36 C. 34 D. 38 7 5

Finish
Late finish of last activity on the critical
path is same as its early finish. 36
 0
Past Board ES TF EF
Activity
Start

Activity Predecessors Successors Duration LS D LF 0 0 7

Start - A 0 A
A Start B, C, D 7 0 7 7
B A G 6
C A E, F 5 7 0 13 7 4 12 7 4 9
D A G 2
B C D

Backward Pass
E C H 13 7 6 13 11 5 16 11 2 13
Smaller LS
F C H, I 4 moves
12 4 25 12 13 16 13 0 31 backward
G D, B I 18
E F G
H E, F Finish 7
16 13 29 25 4 29 13 18 31
I F, G Finish 5
Finish H, I - 0 25 4 32 31 0 36
What is the slack or float along the critical path? H I
A. 0 B. 4 C. 13 D. 7 29 7 36 31 5 36

Finish
The slack or float along the critical path
is zero. 36
 0
Past Board ES TF EF
Activity
Start

Activity Predecessors Successors Duration LS D LF 0 0 7

Start - A 0 A
A Start B, C, D 7 0 7 7
B A G 6
C A E, F 5 7 0 13 7 4 12 7 4 9
D A G 2
B C D
E C H 13 7 6 13 11 5 16 11 2 13
F C H, I 4
12 4 25 12 13 16 13 0 31
G D, B I 18
E F G
H E, F Finish 7
16 13 29 25 4 29 13 18 31
I F, G Finish 5
Finish H, I - 0 25 4 32 31 0 36
What is the early start for activity H? H I
A. 25 B. 32 C. 29 D. 36 29 7 36 31 5 36

Finish
36
 0
Past Board ES TF EF
Activity
Start

Activity Predecessors Successors Duration LS D LF 0 0 7

Start - A 0 A
A Start B, C, D 7 0 7 7
B A G 6
C A E, F 5 7 0 13 7 4 12 7 4 9
D A G 2
B C D
E C H 13 7 6 13 11 5 16 11 2 13
F C H, I 4
12 4 25 12 13 16 13 0 31
G D, B I 18
E F G
H E, F Finish 7
16 13 29 25 4 29 13 18 31
I F, G Finish 5
Finish H, I - 0 25 4 32 31 0 36
How many days can activity F be delayed without H I
changing the completion date of the project? 29 7 36 31 5 36
A. 0 B. 4 C. 13 D. 9
Total float is the amount of time a scheduled activity Finish
can be delayed without delaying the overall project 36
completion date. TF = EF – ES or TS = LF - LS
 0
Past Board ES TF EF
Activity
Start

Activity Predecessors Successors Duration LS D LF 0 0 7

Start - A 0 A
A Start B, C, D 7 0 7 7
B A G 6
C A E, F 5 7 0 13 7 4 12 7 4 9
D A G 2
B C D
E C H 13 7 6 13 11 5 16 11 2 13
F C H, I 4
12 4 25 12 13 16 13 0 31
G D, B I 18
E F G
H E, F Finish 7
16 13 29 25 4 29 13 18 31
I F, G Finish 5
Finish H, I - 0 25 4 32 31 0 36
How many days can activity F be delayed without H I
affecting the start date of its subsequent activities? 29 7 36 31 5 36
A. 0 B. 4 C. 13 D. 9
Free Float refers to the amount of time that an activity can Finish
be delayed without affecting the start date of its subsequent 36 FFF = 25 – 16 = 9
activities. FF = min ES of next activity – EF of current activity.
Example
A project consists of 10 activities as outlined in the table below. All relationships are finish-to-start
unless otherwise noted.

Duration
Activity Predecessors Successors
(months)
A 5 - C, D, E
B 3 - H
C 3 A F
D 4 A G
E 3 A H
F 5 C J
G 4 D (FF LAG = 5) J
H 3 B, E I
I 2 H J
J 2 F, G, I -
Example
Activity
Duration
Predecessors Successors The activity on arrow representation of the project
(months) is also shown below.
A 5 - C, D, E
B 3 - H D
2 5
C 3 A F 4
G
D 4 A G A C 5
E 3 A H
5 3
E 3 F J
F 5 C J 1 4 7 8
5 2
G 4 D (FF LAG = 5) J B
3 2
H 3 B, E I I
I 2 H J 3 H 6
3
J 2 F, G, I -

The critical path for the project is:

A. ACFJ B. ADGJ C. BHIJ D. AEHIJ
Example
Activity
Duration
Predecessors Successors The activity on arrow representation of the project
(months) is also shown below.
A 5 - C, D, E
B 3 - H D
2 5
C 3 A F 4
G
D 4 A G A C 5
E 3 A H
5 3
E 3 F J
F 5 C J 1 4 7 8
5 2
G 4 D (FF LAG = 5) J B
3 2
H 3 B, E I I
I 2 H J 3 H 6
3
J 2 F, G, I -

The critical path for the project is:

A. ACFJ B. ADGJ C. BHIJ D. AEHIJ
5+3+5+2
= 15
Example
Activity
Duration
Predecessors Successors The activity on arrow representation of the project
(months) is also shown below.
A 5 - C, D, E
B 3 - H D
2 5
C 3 A F 4
G
D 4 A G A C 5
E 3 A H
5 3
E 3 F J
F 5 C J 1 4 7 8
5 2
G 4 D (FF LAG = 5) J B
3 2
H 3 B, E I I
I 2 H J 3 H 6
3
J 2 F, G, I -

The critical path for the project is:

A. ACFJ B. ADGJ C. BHIJ D. AEHIJ
5+3+5+2 5+4+5+2
= 15 = 16
Example
Activity
Duration
Predecessors Successors The activity on arrow representation of the project
(months) is also shown below.
A 5 - C, D, E
B 3 - H D
2 5
C 3 A F 4
G
D 4 A G A C 5
E 3 A H
5 3
E 3 F J
F 5 C J 1 4 7 8
5 2
G 4 D (FF LAG = 5) J B
3 2
H 3 B, E I I
I 2 H J 3 H 6
3
J 2 F, G, I -

The critical path for the project is:

A. ACFJ B. ADGJ C. BHIJ D. AEHIJ
5+3+5+2 5+4+5+2 3+3+2+2
= 15 = 16 =1 0
Example
Activity
Duration
Predecessors Successors The activity on arrow representation of the project
(months) is also shown below.
A 5 - C, D, E
B 3 - H D
2 5
C 3 A F 4
G
D 4 A G A C 5
E 3 A H
5 3
E 3 F J
F 5 C J 1 4 7 8
5 2
G 4 D (FF LAG = 5) J B
3 2
H 3 B, E I I
I 2 H J 3 H 6
3
J 2 F, G, I -

The critical path for the project is:

A. ACFJ B. ADGJ C. BHIJ D. AEHIJ
5+3+5+2 5+4+5+2 3+3+2+2 5+3+3+2+2
= 15 = 16 =1 0 = 15
Example
An activity on arrow network for a project is shown below. Numbers adjacent to arrows are activity
durations (weeks). Assume project start date is week 0. The early start date (week) for activity G is:
A. 9 B. 10 C. 11 D. 12

D
21 31
A 7
E G
4 3
B 6
11 22 41
3
C H
5 4
F
23 32
6
Example
An activity on arrow network for a project is shown below. Numbers adjacent to arrows are activity
durations (weeks). Assume project start date is week 0. The early start date (week) for activity G is:
A. 9 B. 10 C. 11 D. 12

D Start of Activity G
21 31
A 7
E G
4 3
B 6
11 22 41
3
C H
5 4
F
23 32
6
Example
An activity on arrow network for a project is shown below. Numbers adjacent to arrows are activity
durations (weeks). Assume project start date is week 0. The early start date (week) for activity G is:
A. 9 B. 10 C. 11 D. 12

Paths to G:

D Start of Activity G
21 31
A 7
E G
4 3
B 6
11 22 41
3
C H
5 4
F
23 32
6
Example
An activity on arrow network for a project is shown below. Numbers adjacent to arrows are activity
durations (weeks). Assume project start date is week 0. The early start date (week) for activity G is:
A. 9 B. 10 C. 11 D. 12

Paths to G:
B-E = 3 + 6 = 9
D Start of Activity G
21 31
A 7
E G
4 3
B 6
11 22 41
3
C H
5 4
F
23 32
6
Example
An activity on arrow network for a project is shown below. Numbers adjacent to arrows are activity
durations (weeks). Assume project start date is week 0. The early start date (week) for activity G is:
A. 9 B. 10 C. 11 D. 12

Paths to G:
B-E = 3 + 6 = 9
A-D = 4 + 7 = 11 D Start of Activity G
21 31
A 7
E G
4 3
B 6
11 22 41
3
C H
5 4
F
23 32
6
Example
The activity on a node diagram for a project is shown below. All durations are in weeks. All relationships
are finish to start unless noted otherwise. The free float (weeks) of activity A is:
A. 0 B. 1 C. 2 D. 3
3 7
C F
4 5

0 3 6 11
A D G H
3 5 5 3
0 6
B E
6 4

Free Float refers to the amount of time that an activity can

be delayed without affecting the start date of its subsequent
activities. FF = ES of next activity – EF of current activity.

FFA = 3 – 3 = 0
Example 90 days remaining, + $18,000 per day shortened

A contract has 90 days remaining until completion. Early completion will be paid $18,000 bonus per day
that the duration is shortened. Activities on the critical path are targeted for “crashing.” Critical activities
can be accelerated by allocating additional crew units. Additional cost and schedule reduction are
shown in the table below. If crews must be added as a complete unit, the net bonus is maximized by the
addition of how many crews?
A. 1 additional crew unit B. 2 additional crew units
C. 3 additional crew units D. None of the crashing schemes are profitable
Crew Units Added Added Crew Cost per Day Schedule Days Reduced
1 $3,200 15
2 $6,000 21
3 $9,000 31

Project crashing is when you shorten the duration of a project by

reducing the time of one or more tasks. Crashing is done by
increasing the resources to the project, which helps make tasks
take less time than what they were planned for.
Example 90 days remaining, + $18,000 per day shortened

A. 1 additional crew unit B. 2 additional crew units

C. 3 additional crew units D. None of the crashing schemes are profitable
Crew Units Added Added Crew Cost per Day Schedule Days Reduced
1 $3,200 15
2 $6,000 21
3 $9,000 31
If 1 Crew Unit is added: Duration = 90 – 15 = 75 days
Early completion bonus = 15 days × $18,000 per day = $270,000
Added cost = 75 days × $3,200 per day = $240,000
Net bonus = $270,000 - $240,000 = $30,000
If 2 Crew Units is added: Duration = 90 – 21 = 69 days
Early completion bonus = 21 days × $18,000 per day = $378,000
Added cost = 69 days × $6,000 per day = $414,000
Net bonus = $378,000 - $414,000 = -$36,000
If 3 Crew Units is added: Duration = 90 – 31 = 59 days
Early completion bonus = 31 days × $18,000 per day = $558,000
Added cost = 59 days × $9,000 per day = $531,000
Net bonus = $558,000 - $531,000 = $27,000
Example
The tasks within a project, and their duration and cost data are shown below. Both normal completion
time and crashed completion time (by allocating additional resources) are shown in the table.
Normal Time Crash Time
Activity Normal Cost Crash Cost
(weeks) (weeks)
A 3 $3,000 2 $5,000
B 4 $4,000 2 $6,000
C 5 $5,000 3 $8,000
D 8 $5,000 6 $6,000
E 3 $3,000 2 $4,000
F 5 $4,000 3 $8,000
Example Bonus = $1,000 per week, Penalty = $800 per week, Target = 9 weeks

Normal Time Crash Time The activity on arrow representation of the

Activity Normal Cost Crash Cost project is also shown below.
(weeks) (weeks)

A 3 $3,000 2 $5,000 2
A D
B 4 $4,000 2 $6,000
Dummy
C 5 $5,000 3 $8,000 B E
1 3 5
D 8 $5,000 6 $6,000
C F
E 3 $3,000 2 $4,000
4
F 5 $4,000 3 $8,000

For every week of early completion, the bonus is $1,000, and for every week that the project is late, the
penalty is $800. If the revised target completion time is 9 weeks, the net cost for completing the project
is most nearly:
A. $22,000 B. $24,000 C. $25,000 D. $26,000
Example Bonus = $1,000 per week, Penalty = $800 per week, Target = 9 weeks

Normal Time Crash Time The activity on arrow representation of the

Activity Normal Cost Crash Cost project is also shown below.
(weeks) (weeks)

A 3 $3,000 2 $5,000 2
A D
B 4 $4,000 2 $6,000 8
3 2 Dummy 6
C 5 $5,000 3 $8,000 B E
1 3 5
42 32
D 8 $5,000 6 $6,000
C
5 F 3
E 3 $3,000 2 $4,000 3 5
4
F 5 $4,000 3 $8,000

Paths to completion: (normal time) Target completion: 9 weeks Original normal cost = $24,000
A-D = 3 + 8 = 11 weeks → needs to shorten by 2 weeks (Crash D for additional $1,000 cost)
A-E = 3 + 3 = 6 weeks → no need to shorten
B-E = 4 + 3 = 7 weeks → no need to shorten
C-F = 5 + 5 = 10 weeks → needs to shorten by 1 week (Crash C for additional $3,000 cost)
Net revised cost = original cost + extra cost – bonus = $24k + $1k + $3k -2($1k) = $26,000 → D
Program Evaluation and Review Technique (PERT)
PERT is similar to critical path method (CPM). However, whereas CPM uses a single
deterministic value for each activity duration, PERT uses a probabilistic approach
with a beta distribution that allows three-time estimates for the duration of each
activity since accurate estimates of task require good historical data.
Optimistic time, tmin: Time an activity will take if everything goes perfectly.
Most likely time, tlikely: Most realistic time estimate to complete the activity.
Pessimistic time, tmax: Time an activity takes if everything goes wrong.
From these we calculate the expected time t for the task.

tmin + 4tlikely + tmax

Expected time t =
6
t − t 2
max min
Variance = σ2 = Standard Deviation = σ = Variance
6
Example CP = ABCD

PERT activities constituting a short project are listed with their characteristic completion times. If the
project starts at t = 15, what is the probability that the project will be completed on or before t = 42?
A. 28.6% B. 34.5% C. 32.7% D. 22.8%
Activity Predecessors Successors tmin tlikely tmax
Start - A 0 0 0
A Start B, D 1 2 5
B A C 7 9 20
C B D 5 12 18
D A, C Finish 2 4 7
Finish D - 0 0 0

B C
Start A D Finish
By inspection, critical path = A-B-C-D
Example CP = ABCD Expected time t =
tmin + 4tlikely + tmax
6
2
Variance = σ =
tmax − tmin 2
6

PERT activities constituting a short project are listed with their characteristic completion times. If the
project starts at t = 15, what is the probability that the project will be completed on or before t = 42?
A. 28.6% B. 34.5% C. 32.7% D. 22.8%
Activity Predecessors Successors tmin tlikely tmax Expected time, t Variance, 𝝈2
Start - A 0 0 0 0 0
A Start B, D 1 2 5 7/3 4/9
B A C 7 9 20 21/2 169/36
C B D 5 12 18 71/6 169/36
D A, C Finish 2 4 7 25/6 25/36
Finish D - 0 0 0 0 0
Sum: 173/6 379/36
Since project starts at t = 15, total expected time = 15+173/6 = 43.833 P t ≤ 42 = P(z) = P −0.565
μ = 43.833 σ2 = 379/36 σ = 3.245 x = 42
Mode − 3 − 2
x − μ 42 − 43.833 CA − Apps − 7
z= = = −0.565
σ 3.245
Project Management
Engr. Arexcin Ray C. Timbal

The End