Scribd
Upload
85 views14 pages

Project Management - PERT/CPM: What Is Project Management? Consider Building A House

Here are the key steps to solve this LP model: 1) Write the objective function and constraints 2) Input the data into the LP solver 3) Solve the LP to obtain the optimal solution 4) The critical path will be identified by the tasks where tij = lij

Uploaded by

sapalijo990
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
85 views14 pages

Project Management - PERT/CPM: What Is Project Management? Consider Building A House

Here are the key steps to solve this LP model: 1) Write the objective function and constraints 2) Input the data into the LP solver 3) Solve the LP to obtain the optimal solution 4) The critical path will be identified by the tasks where tij = lij

Uploaded by

sapalijo990
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
You are on page 1/ 14

Project Management - PERT/CPM

What is project management?

Consider building a house:

Step A: Prepare site. (5 days)


Step B: Build foundation. (8 days)
Step C: Frame walls and roof. (15 days)
Step D: Rough in Plumbing (12 days)
Step E: Rough in Electrical (10 days)
Step F: HVAC Venting (8 days)
Step G: Drywall (11 days)
Step H: Finish Electrical (5 days)
Step I: Finish Plumbing (4 days) Step M: Paint (5 days)
Step J: Finish HVAC (2 days) Step N: Landscape (5 days)
Step K: Install Kitchen (8 days)
Step L: Install Baths (14 days)
Project Management - PERT/CPM

Let each node represent a project event/milestone (node 1 is


start of project, node 11 is end of project).

Let each arc represent a project task/job.

D,12 H,5 7 J,2 M,5


K,8
A,5 B,8 C,15 G,11 0
E,10 11
1 2 3 4 5 6 9 10
0
L,14 N,5
F,8 I,4
8
 
Each arc is identified by a job letter and duration. Note the
dummy jobs indicating precedence that jobs H and I must
complete before K or L begins.
Project Management - PERT/CPM

What questions might project managers be interested in?

• How long will the project take?


• Can I add manpower or tools to reduce the overall project
length?
• To which tasks should I add manpower?
• What tasks are on the critical path?
• Is the project on schedule?
• When should materials and personnel be in place to begin a
task?
• Other?…
Project Management - Examples

• University Convocation Center


• Windsor Engine Plant
• Other major construction projects
• Large defense contracts
• NASA projects (space shuttle)
• Maintenance planning of oil refineries, power plants, etc…
• other…
Project Management – Minimum
Completion Time

A,3 C,4 E,5


1 2 4 5
0
B,1 D,2
3
LP Solution: Let ti be the time of event i.

Min Z = t5 – t1
s.t. t2 – t1 >= 3
t3 – t2 >= 0
t3 – t1 >= 1
t4 – t2 >= 4
t4 – t3 >= 2
t5 – t4 >= 5
Project Management – Critical Path

A,3 C,4 E,5


1 2 4 5
0
B,1 D,2
3

LP Solution: insert Lindo Solution here

How do you find the critical path from the Lindo solution?
Project Management – Minimum
Completion Time and Critical Path

A,3 C,4 E,5


1 2 4 5
0
B,1 D,2
3
Solution by Network Analysis:

Let earliest time of node j, Uj, be the earliest time at which event
j can occur.
Set U1 = 0
then U2 = U1 + t12 = 0 + 3 = 3
U3 = Max{U1 + t13 , U2 + t23} = Max{1,3} = 3
U4 = Max{U3 + t34 , U2 + t24} = Max{5,7} = 7
U5 = U4 + t45 = 12
Project Management – Minimum
Completion Time and Critical Path
A,3 C,4 E,5
1 2 4 5
0
B,1 D,2
3
Solution by Network Analysis:

Let latest time of node j, Vj, be the latest time at which event
j can occur while still completing project by minimum the
minimum completion time, Um .
Set V5 = U5 = 12
then V4 = V5 - t45 = 12 - 5 = 7
V3 = V4 - t34 = 7 – 2 = 5
V2 = Min{V4 - t24 ,V3 - 0 } = 3
V1 = Min{V2 - t12 ,V3 – t13} = 0
Project Management – Minimum
Completion Time and Critical Path
A,3 C,4 E,5
1 2 4 5
0
B,1 D,2
3
Solution by Network Analysis:

To find the critical path, solve for slack time = Vj - Uj. All events
with slack time equal to 0, and tasks connecting these events are
on the critical path.
V5 - U5 = 12 – 12 = 0
V4 - U4 = 7 – 7 = 0
V3 - U3 = 5 – 3 = 2
V2 - U2 = 3 – 3 = 0
V1 - U1 = 0 – 0 = 0
CPM – Critical Path Method
Can normal task times be reduced?

Is there an increase in direct costs?


• Additional manpower
• Additional machines
• Overtime, etc…

Can there be a reduction in indirect costs?


• Less overhead costs
• Less daily rental charges
• Bonus for early completion
• Avoid penalties for running late
• Avoid cost of late startup

CPM addresses these cost trade-offs.


CPM – Critical Path Method
Example:

Normal Time Crash Time Cost of Crashing


Job Predecessors (days) (days) per Day ($)
A - 10 7 4
B - 5 4 2
C B 3 2 2
D A,C 4 3 3
E A,C 5 3 3
F D 6 3 5
G E 5 2 1
H F,G 5 4 4

Overhead cost = $5/day


CPM – Critical Path Method
Enumerative Approach:

Reduce job H by 1 day: Total Cost improves by $5 - $4 = $1.

Reduce job A by 2 days: Total cost improves by $10 - $8 = $2.

Reduce job A by an additional day, and job B by a day? Total cost


improves by $5 - $4 - $2 = -$1. Therefore do not take this action.

Reduce job A by an additional day, and job C by a day? Total cost


improves by $5 - $4 - $2 = -$1. Therefore do not take this action.

Evaluate combinations of reducing path 3-4-6 and 3-5-6 by one day.


D & E = $5 - $3 - $3 = -$1 F & E = $5 - $5 - $3 = -$3
D & G = $5 - $3 - $1 = $1 F & G = $5 - $5 - $1 = -$1
Therefore, reduce job D & G by 1 day: TC improves by $5 - $3 -$1 = $1.

Overall improvement: $1 + $2 + $1 = $4.


CPM – Critical Path Method
LP Approach:

Let tij – decision variable for time to complete task connecting


events i and j.
kij – normal completion time of task connecting events i and j.
lij – minimum completion time of task connecting events i and j.
Cij – incremental cost of reducing task connecting events i and j.

Model I: Given project must be complete by some time T, which tasks


should be reduced to minimize the total cost?
Z   Cij (kij  tij )
Min i j

t j  ti  tij for all jobs (i,j)


s.t.
lij  tij  kij for all jobs (i,j)
t n  t1  T
ti  0 for all i
CPM – Critical Path Method
LP Approach:

Model II: Given an additional budget of $B for “crashing” tasks, what minimum
project completion time can be obtained while staying within your budget?

Min Z  t n  t1

s.t. t j  ti  tij for all jobs (i,j)


lij  tij  kij for all jobs (i,j)
 C
i j
ij (kij  tij )  B
for all i
ti  0

You might also like