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Project Management - PERT & CPM

This powerpoint describes Pert and CPM network diagrams through examples and relevant from Project management persepective.

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Shekhar Singh
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1K views51 pages

Project Management - PERT & CPM

This powerpoint describes Pert and CPM network diagrams through examples and relevant from Project management persepective.

Uploaded by

Shekhar Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Copyright 2009 John Wiley & Sons, Inc.

Chapter 7
Scheduling
Useful Abbreviations
CPM - Critical Path Method
GERT - Graphical Evaluation and
Review Technique
PERT - Program Evaluation and Review
Technique

Background
Schedule is the conversion of a project action
plan into an operating timetable
Basis for monitoring project
One of the major project management tools
Work changes daily so a detailed plan is
essential
Not all activities on a project need to be
scheduled to the same level of detail
Background Continued
Most scheduling is at the
WBS level, not the work
package level
Only the most critical work
packages may be shown
on schedule
Most scheduling is based
on network drawings
Network Scheduling Advantage
Consistent framework
Shows interdependences
Shows when resources are needed
Ensures proper communication
Determines expected completion date
Identifies critical activities
Network Scheduling Advantage
Continued
Shows which activities can be delayed
Determines start dates
Shows which tasks must be coordinated
Shows which tasks can run in parallel
Relieves some conflict
Allow probabilistic estimates
Network Scheduling Techniques
Developed 1958 1959 for Polaris
missile/submarine project
Initially, CPM and PERT were two different
approaches
CPM used deterministic time estimates and allowed
project crunching
PERT used probabilistic time estimates
Microsoft Project (and others) have blended
CPM and PERT into one approach
PERT vs CPM
CPM - Critical Path Method
Definition: In CPM activities are
shown as a network of precedence
relationships using activity-on-node
network construction
Single estimate of activity time
Deterministic activity times


USED IN : Production
management - for the jobs of
repetitive in nature where the
activity time estimates can be
predicted with considerable
certainty due to the existence
of past experience.
PERT - Project Evaluation & Review
Techniques
Definition: In PERT activities are
shown as a network of precedence
relationships using activity-on-arrow
network construction
Multiple time estimates
Probabilistic activity times

USED IN : Project management -
for non-repetitive jobs (research
and development work), where
the time and cost estimates tend
to be quite uncertain. This
technique uses probabilistic time
estimates.
Terminology
Activity - A specific task or set of tasks that
are required by the project, use up resources,
and take time to complete
Event - Signals the beginning or ending of an
activity and designates a point in time
Network - The combination of all activities and
events that define a project
Drawn left-to-right
Connections represent predecessors
Terminology Continued
Path - A series of connected activities
between any two events on network
Critical - An activity, event, or path which, if
delayed, will delay the completion of the
project
Critical Path - The path through the project
where, if any activity is delayed, the project is
delayed
There is always a critical path
There can be more than one critical path
Terminology Continued
Sequential Activities - One activity must be
completed before the next one can begin
Parallel Activities - The activities can take
place at the same time
Immediate Predecessor - That activity that
must be completed just before a particular
activity can begin
Terminology Continued
Activity on Arrow - Arrows represent
activities while nodes stand for events
Activity on Node - Nodes stand for
events and arrows show precedence
AON and AOA Format
Constructing the Network (AON
Version)
Begin with START activity
Add activities without precedences
There will always be one
May be more
Add activities that have those activities
as precedences
Continue
Example of Action Plan
Rules of Network Construction
(AOA)
Try to avoid arrows which cross each other
Use straight arrows
No event can occur until every activity preceding it
has been completed
An event cant occur twice i.e. there must be no
loops.
Use arrows from left to right. Avoid mixing
directions
Dummies should be introduced if it is extremely
necessary.
Only one START and END event in any network

Dummy Activity
A dummy activity has no duration and uses no resources. Its sole
purpose is to indicate a technological relationship.
Generic (AoA) Network
Diagrams
A
B
K
a.
A
B
K
L
b.
c.
A K
B L
d.
L
K
B
A
K depends on A, B

K, L depends on A, B

K depends on A, B and L depends
only on B


K depends on A but L depends on both A, B

e.
K A
C
B L
M
L B
C
K A
f.

K depends on A, C and L depends on B, C


K depends on A, C; L depends on B, C
and M depends on C


Question
Solution
Question
Construct a AON and AOA network with
following information:
Solving the Network
Table 8-1
The AON Network
Figure 8-14
Calculating Activity Times
( )
( )
2
2
2
6
6
4
o o
o
=
|
.
|

\
|

=
+ +
=
a b
b m a
TE
The Results
Table 8-2
Critical Path and Time
Figure 8-15
Critical Path and Time Continued
Figure 8-16
Slack Values
Total Float vs Free Float
Free Float: This is the time by which an activity
can be delayed without delaying the early start of
its successor activity.
Free Float = ES of next activity EF of that activity
Total Float: This is the time by which an activity
can be delayed without delaying the scheduled
end date of the project.
Total Float = (LF EF) or (LS ES) of that activity
Free float can only occur when two or more
activities share a common successor.
Total Float vs Free Float
Uncertainty of Project Completion Time
First calculate a standard normal
variable, Z


Then, use the Z value to find the
probability from the table
Example
( )
( ) 45 . 52 645 . 1 745 . 5 43
22 . 1
745 . 5
7
33
43 50 ) (
2
= + = + =
= =

=
Z D
D
Z
o
o

Network exercise with time


Construct a PERT/CPM network for a project with the following
activities and times:
a) Draw the AoA network diagram for this project.
b) Find the critical path for this project network.
c) Calculate expected activity times and slacks.
d) This project must be complete in 30 months; do you anticipate difficulty in meeting the
deadline? Explain.
e) Calculate the completion time corresponding to 95% probability.
Network exercise with time
Solution first construct the network and label activities
1
3
2 4
5
D

Network exercise with time
Solution add ES, LS, EF, LF
1
3
2 4
5
D
4
Network exercise with time
Solution
1
3
2 4
5
D [6,10]
4
Network exercise with time
Solution
1
3
2 4
5
a. Critical path: A-C-E-G; Time: 20 months
D [6,10]
4 [10,14]
Question
Draw the
network and
identify the
critical path.
Also calculate
the earliest
latest starting
and finishing
times for each
activity:
Gantt Charts
A GANTT chart is a type of bar chart that illustrates a
project schedule.
After the PERT/CPM analysis is completed, the following
phase is to construct the GANTT chart and then to re-
allocate resources and re-schedule if necessary.
GANTT charts have become a common technique for
representing the phases and activities of a project work
breakdown structure.
It was introduced by Henry Gantt around 1910 1915.
Shows planned and actual progress (tracking of project).
Easy-to-read method to show current status
GANTT CHART
Characteristics:
The bar in each row identifies the corresponding task
The horizontal position of the bar identifies start and end times of the
task
Bar length represents the duration of the task
Task durations can be compared easily
Good for allocating resources and re-scheduling
Precedence relationships can be represented using arrows
Critical activities are usually highlighted
Slack times are represented using bars with doted lines
The bar of each activity begins at the activity earliest start time (ES)
The bar of each activity ends at the activity latest finish time (LF).








41
Advantages and Disadvantages
Advantages
Simple
Good visual communication to others
Task durations can be compared easily
Good for scheduling resources

Disadvantages
Dependencies are more difficult to visualise
Minor changes in data can cause major changes in the chart
Microsoft Project Gantt Chart
Gantt Chart
CONSTRUCTING GANTT CHART
Example of an early GANTT chart construction:
CONSTRUCTING GANTT CHART
Step 1. Schedule critical tasks:
Software Project Management
CONSTRUCTING GANTT CHART
Step 2. Place time windows for non-critical tasks:
CONSTRUCTING GANTT CHART
Step 3. Schedule non-critical tasks
Step 4. Indicate precedence relationships:
Microsoft Projects
AON Network
Microsoft Project Calendar

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