Chapter 2

Critical Path Method (CPM) and Programme Evaluation

Review Technique (PERT):
2.1 CPM & PERT-meaning, features, difference, applications. 2.2 Understand
different terms used in network diagram. Draw network diagram for a real life
project containing 10-15 activities, computation of LPO and EPO.(Take minimum
three examples). Determination of critical path on network. Floats, its types and
determination of floats. Crashing of network, updating and its applications.

Topic 1 - 2.1 CPM & PERT-meaning, features, difference, applications.

Critical Path Method (CPM) and Programme Evaluation and Review Technique
(PERT)

What Are CPM and PERT?

CPM and PERT are tools used in project management to help plan, schedule, and
control projects. They help us figure out how to complete a project efficiently by
organizing all the tasks and estimating the time needed.

• CPM (Critical Path Method):

CPM is like a roadmap for managing a project. It helps identify the most
important tasks (called the critical path) that must be done on time to complete
the project within the deadline. CPM works best when we already know how long
each task will take.

• PERT (Programme Evaluation and Review Technique):

PERT is used for projects where the time needed for each task is uncertain. It
helps us estimate the time by considering three scenarios:

o Optimistic Time (O): If everything goes smoothly.

o Most Likely Time (M): Under normal conditions.

o Pessimistic Time (P): If there are delays or issues.

Features of CPM

1. Focuses on time and cost for managing tasks.

 2. Uses a single time estimate for each task (e.g., "Task A takes 5 days").

3. Suitable for projects with predictable and repetitive tasks, like construction or
manufacturing.

4. Helps identify the critical path—the sequence of tasks that determine the
project’s total duration.

Features of PERT

1. Focuses on time uncertainty for managing tasks.

2. Uses three time estimates (O, M, P) to calculate an average time for each task.
Formula: Expected Time (TE) = (O + 4M + P) / 6

3. Ideal for research, development, or other unique projects where time predictions
are not exact.

4. Provides insights into the probability of completing the project by a certain

deadline.

Differences Between CPM and PERT

Feature CPM PERT

Nature Deterministic (fixed time) Probabilistic (uncertain time)

Time Estimates Single time estimate per task Three time estimates (O, M, P)

Focus Time and cost optimization Time planning and scheduling

Application Construction, manufacturing R&D, software development

Critical Path Fixed Flexible (based on probabilities)

Applications of CPM

• Construction Projects: Building a house, bridge, or road.

• Manufacturing: Planning production lines or factory operations.

• Event Planning: Scheduling tasks for weddings, conferences, or festivals.

Applications of PERT

• Research & Development (R&D): Designing a new product or experimenting

with new technologies.
 • Software Development: Writing and testing new software.

• Space Exploration: Planning space missions like satellite launches.

How Do CPM and PERT Help?

1. They organize the project into smaller tasks.

2. They identify which tasks are critical (must be done on time) and which tasks
have some flexibility.

3. They help project managers predict delays and manage resources effectively.

For beginners, remember this:

• Use CPM when you are confident about the time required for each task.

• Use PERT when there’s uncertainty, and you need to estimate task durations.

Topic 2 - 2.2 Understand different terms used in network diagram. Draw

network diagram for a real life project containing 10-15 activities, computation of LPO
and EPO.(Take minimum three examples). Determination of critical path on network.
Floats, its types and determination of floats.
CRITICAL PATH METHOD
Float (slack) of an activity and event
The float is the length of time to which a non-critical
activity and/or an event can be delayed or extendent
without delaying the total project completion time.
(i) Total Float : Total (loat is the maximum amount of
time by which completion of an activity can be delay
without affecting the over all duration of the project.
Mathematically.
Total float (TF,) =(L - E) -t
=LS, - ES, = LF,- EF,
 CRITICAL PATH METHOD

Float (slack) of an activity and event

The float is the length of time to which a non-critical
2
7activity and/or an event can be delayed or extendent
7Aavy
without delaying the total project completion time.
() Total Float : Total,float is the maximum amount of
time by which completion of an activity can be delay
4
without affecting the over all duration of the project.
Mathematically,
Total float (TF) =(L-E) -t
=LS, -ES,= LF,- EF,
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(i) Free Float : Free float is an activity is the amount
of time by which if an activity is delayed, it does not
affect the earliest start of the succeding activity.
Free float (FF,) = (E-E) -t
= min{ES,, for all immediate successor of activity (i, ) - EF
Example :A projectschedule has the following characteristic :
Activity1-21-32-43-42-5 4-5

Time 13 12 2 8 15 2

1. Construct a network diagram.

Compute the earliest event time and latest event time.
2. for
Compute total float, free float and independent float
3.
each activity.
Solution: 13
15
13

2
2

26
20

18
12
PERT & CPM| Total Float, Free
Latest time Total Free Float |Independent
Normal Earliest time Float (TF) (F) Float
Activity
times Finish L
Start Finish Start E
L L-E E-E-t E-L-t
E E+
0.))
3
(1-2 13
'o |2
1

13 15 26 6 -6=0D
18
3 13 Q<
4 22 6
15

BO
 Independent Float |Critical Path Method (CPM) by GP
E PERT&CPM | Total Float, Free Float, Total Free Float Independent
Latest time Float
Normal Earliest time Float (TF) (F)
Activity L
times Finish Start Finish E
Start
L-E E-E-4 E-L-t
E+L L
()) E

1-2 13
|2 6
13 12

244 13 15
8
26 6=0D
34
2-5 15
13
45) 2 22 6
15

18:16/39:45- Fg1 on PERT & CPMITotal Float. Free Flòát. Independent Float LCritical Path Method (CPA) by CD Sir y HD
PROJECT EVALUATION
AND
REVIEW TECHNIQUE
Probability ot Complelhg
EVALUATION AND REVIEW TECHNIQUE
PROJECT
Important notation :

1. Optimistic time estimate -t,

2. Most likely time estimate - t
t,
3. Pessimistic time estimate -
Expected time of the activity - t,
4.
Variance of the activity - o
5.
 WORKINGRULE FOR PERT
Step -1 : Draw the project network and expected
duration of each activity by using the formula
1
t,=(t,
6
+4tmtI,)
and variance a' of each activity using o= 6

Step -2:Find the critical path. Also identify the critical

activity.
Step - 3 : Calculate the variance of allcritical activities.
The project length wariance o is the sum of variance
of all critical activities.
Step - 4: Calculate Z, the standard normal variable

using formula z = T, -T where T, 0s scheduled time

to complete the project.

T, is normal expected projected length duration.
expected standard deviation of the project length.
G is
Example: Assuming that the expected times are normally
distributed, find the probability of meeting the schedule data
as given for network.
Estimated durations (days)
Activity Pessimistic
(i,j) Optimistic Most likely
t t,
14
(1, 2) 2 5

(1,3) 9 12 15

(2, 4) 5 14 17

(3, 4) 2 5 8

(3, 5) 8 17 20

(4, 5) 6 6 12

Schedule project completion date is 30 days. Also find the date

on which the project manager can complete the project with a
probability of 0.90.
Solution : The expected time and variance of each activity
can be calculated as follows :
Estimated durations (days) Variance
Expected time
Activity Pessimistic
(0, ) Optimistic Most likely
t

(1,2) 2 5 14 6
(1,3) 12 15 |2
(2, 4) 14 17
3
5 8
(3, 4)
17
(3.5)
6
(4, 5)
 of Activity | Probability of Completing the Project by GP Sir of each activity
E PERT&CPM | Variance Solution: The expected time and variance
can be calculated as follows

0 Activity
(.0) Optimistic
t
Estimated durations (days)
Most likely
t
Pessimistic
Expected time
Variance

5 14
(1,2) 2
|2
16 (1,3) 9 12
14
15
17
(2, 4) 5

I-3-5 (3, 4) 2
17
5 8
20 i
2 (3.5)
6 6 12
PERT &CPM | Variance of Activity |
Probability of Completing the Project by GP Sir
Solution : The expected time and variance of each
can be calculated as follows : activity
Estimated durations (days)
Activity Expected time Variance
((,) Optimistic Most likely Pessimistic
t

16 (1,2) 2 5 14
6

6
(1,3) 12 15 12
3-5 26 (2, 4) 5 14 17
13
(3, 4) 2 5
2 (3, 5) 8 17
8

20
6 6 12

12:227 26:34 - Eg1 on PERT &

ity | Probability of Completing the Project by GP Sir 0.07 0.08 0.09
0.00 0.01 0.02 0.03 0.04 0.05 0.06
0.0 0.0000 0.0040 0.0279 0.0319 0.0359
0.0080 0.0120 0.0160 0.0190 0.0239
0.1 0.0398 0.0438 0.04780.0517 0.0557 0.0596 0.0636 0.0675 0.0714 0.0753
0.2 0.0793 0.0832 0.0871 0.0910 0.0948 0.0987 0.1026 0.1064 0.1103 0.1141
0.3 0.1179 0.1217 0.1255 0.1293 0.1331 0.1368 0.1406 0.1443 0.1480 0.1517
0.1554 0.1591 0.1628 0.1664 0.1700 0.1736 0.1772 0.1808 0.1844 0.1879
0.4
0.2088 0.2123 0.2157 0.2190 0.2224
0.5 0.1915 0.1950 0.1985 0.2019 0.2054
0.2357 0.2389 0.2422 0.2454 0.2486 0.2517 0.2549
0.6 0.2257 0.2291 0.2324
0.2673 0.2704 0.2734 0.2764 0.2794 0.2823 0.2852
0.7 0.2580 0.2611 0.2642
0.2910 0.2939 0.2969 0.2995 0.3023 0.3051 0.3078 0.3106 0.3133
0.8 0.2881 0.3315 0.3340 0.3365 0.3389
0.3186 0.3212 0.3238 0.3264 0.3289
0.9 0.3159 0.3621
0.3461 0.3485 0.3508 0.3513 0.3554 0.3577 0.3529
1.0 0.3413 0.3438
0.3708 0.3729 0.3749 0.3770 0.3790 0.3810 0.3830
1.1 0.3643 0.3665 0.3686
0.3944 0.3962 0.3980 0.3997 0.4015
25 1.2 0.3849 0.3869 0.3888 0.3907l0.3925
0.4032 0.4049 0.4066 0.40820.4099 0.4115 0.4131 0.4147 0.4162 0.4177
1.3
28 1.4 0.4192
0.4332
0.4207
0.4345
0.4222
0.4357
0.4236 0.4251
0.4370 0.4382
0.4265
0.4394
0.4279
0.4406
0.4292
0.4418
0.4306
0.4429
0.4319
0.4441
1.5 0.4525 0.4535 0.4545
0.4484 0.4495 0.4505 0.4515
1.6 0.4452 0.4463 0.4474
0.4582 0.4591 0.4599 0.4608 0.4616 0.4625 0.4633
1.7 0.4554 0.4564 0.4573 0.4706
0.4664 0.4671 0.4678 0.4686 0.4693 0.4699
1.8 0,4641 0.4649 0.4656
0.4738 0.4744 0.4750 0.4756 0.4761 0.4767
1.9 0.4713 0.4719 0.4726 0.4732
0.4803 0.4808 0.4812 0.4817
0.4788 0.4793 0.4798
2.0 0.4772 0.4778 0,4783
 i
Completing the Project by GP Sir
Wariance of Activity | Probability of ofbach activity
Solution The expected time and variance
-ean be catulated as follows: 48544
Variance
Estimated durations (days) Expected tirhe
Activity Pessimistic
12 (0.) Optimistic
t
Most likely
t
6

2 5 14 6
(1, 2)

l6 (1, 3)
(2, 4) 5
12
14
15
17
8
|2
13
2 5
(3,4) 201
17
28 (3, 5) 8
6 6 12

P(<08T9-0s+flbao
t =O56313348|33
X-28
5

on PRT& CPM IVariance of Activity(

-121P(?<I23)o5
Probability of Completíng the Project by GP Sir
> tHD
Topic 3 - Crashing of network, updating and its applications.

1. Crashing of Network

What is Crashing in Project Management?

Crashing is a technique used to reduce the overall project duration (finish the project
faster) by adding extra resources (like more workers, equipment, or money) to critical
tasks. It focuses only on activities in the critical path because they directly impact the
project’s completion time.

Think of it like speeding up your work by hiring extra people to finish a job faster—like
painting a house. If one person takes 5 days to paint, hiring two people might get it done
in 3 days!

Steps for Crashing a Network

1. Identify the Critical Path:

First, find the critical path (the longest path in the network that determines the
project duration). Only tasks on the critical path can be crashed.

2. Analyze Tasks:
Look at the critical tasks and decide which ones can be sped up. Some tasks
might not be suitable for crashing due to high costs or resource limitations.

3. Add Resources:
Allocate extra workers, overtime hours, or better equipment to reduce task
durations.

4. Calculate Costs:
Crashing often increases costs (e.g., paying for overtime or hiring more workers).
Make sure the extra cost is worth the time saved.

5. Update the Schedule:

After crashing, recheck the network to ensure the project duration has reduced
and no new critical paths have formed.

When to Use Crashing?

• When the project deadline is strict, and delays are unacceptable.

• When there’s a penalty for late delivery.

 • When extra budget is available to speed things up.

Example of Crashing

Let’s say a construction project has a critical path with 3 tasks:

• Task A (5 days)

• Task B (10 days)

• Task C (7 days)

If we need to reduce the project duration from 22 days to 18 days, we might crash Task
B by hiring more workers and reducing its duration to 6 days. The new duration is:
Task A (5 days) + Task B (6 days) + Task C (7 days) = 18 days.

2. Updating the Network

What is Updating in Project Management?

Updating refers to making changes to the project’s network diagram and schedule as
the project progresses. This ensures that the plan stays accurate and reflects the
current situation.

Why Do We Need Updating?

1. Track Progress:
To compare the actual progress of the project with the planned schedule.

2. Handle Delays:
If some tasks are delayed, the network needs to be updated to reflect the new
timeline.

3. Adjust Resources:
If some tasks finish early or late, resources can be shifted to other tasks.

4. Predict Future Issues:

Updating helps identify potential problems before they occur, like a task that
might become critical.

Steps for Updating a Network

1. Record Actual Data:

Keep track of how long each task is taking and compare it with the original plan.
 2. Recalculate Start and End Times:
Update the early start (ES), early finish (EF), late start (LS), and late finish (LF)
times based on the actual progress.

3. Recheck the Critical Path:

Ensure the critical path is updated, as delays or changes might create a new
critical path.

4. Communicate Changes:
Share the updated schedule with all stakeholders (e.g., team members, clients).

Applications of Crashing and Updating

Applications of Crashing

• Construction Projects:
Finish a building or bridge before the rainy season starts.

• Event Planning:
Prepare a venue or decorations faster to meet the event date.

• Product Launch:
Speed up production or testing to launch a product before a competitor.

Applications of Updating

• Monitoring Progress:
Keep track of whether the project is ahead or behind schedule.

• Risk Management:
Identify delays early and take corrective actions.

• Budget Control:
Ensure that costs don’t exceed the budget by reallocating resources as needed.

Key Takeaway for Beginners

• Crashing helps you finish a project faster but increases costs. Use it when time
is more important than money.

• Updating keeps the project on track by reflecting real progress and adjusting the
schedule when needed.