BMGMT 3203 - Project Management: Faculty of Business Management & Globalization Tel: 603 8317 8833 (Ext 8407)
BMGMT 3203 - Project Management: Faculty of Business Management & Globalization Tel: 603 8317 8833 (Ext 8407)
BMGMT 3203 - Project Management: Faculty of Business Management & Globalization Tel: 603 8317 8833 (Ext 8407)
CHAPTER 5
• Late 1950s
– Program Evaluation and Review Technique
(PERT)
• U.S. Navy, Booz-Allen Hamilton, and Lockeheed
Aircraft
• Probabilistic activity durations
– Critical Path Method (CPM)
• Dupont De Nemours Inc.
• Deterministic activity durations
BMGMT 3203 Project Management 8
The Language of PERT/CPM
• Activity
– task or set of tasks
– use resources
• Event
– state resulting from completion of one or more
activities
– consume no resources or time
– predecessor activities must be completed
BMGMT 3203 Project Management 9
The Language of PERT/CPM
continued
• Milestones
– events that mark significant progress
• Network
– diagram of nodes and arcs
– used to illustrate technological relationships
• Path
– series of connected activities between two
events
BMGMT 3203 Project Management 10
The Language of PERT/CPM
continued
• Critical Path
– set of activities on a path that if delayed will
delay completion of project
• Critical Time
– time required to complete all activities on the
critical path
• Slack or Float
LST - EST = LFT - EFT = Slack
• pessimistic (a)
– This is the maximum time required to
complete an activity.
– In this case, it is assumed that many things go
wrong related to the activity.
– A lot of rework and resource unavailability are
assumed when this estimation is derived.
• optimistic (b)
– This is the fastest time an activity can be
completed.
– For this, the assumption is made that all the
necessary resources are available and all
predecessor activities are completed as
planned.
NORMINV(probability,,,TRUE)
CHAPTER 5
SIMULATION
• Similarities
– must enumerate alternate paths
• Differences
– simulation does not require assumption of
path independence
CHAPTER 5
EXTENSIONS TO PERT/CPM
• Finish-to-start linkage:
– Finish to Start Activity 2 must not start before
Activity 1 has been completed.
– This is the typical arrangement of an activity
and its predecessor.
• Start-to-start linkage
– Activity 5 cannot begin until Activity 4 has
been underway for at least two days.
– Setting electrical wires in place cannot begin
until two days after framing has begun.
• Finish-to-finish linkage
– Activity 7 must be complete at least one day
before Activity 8 is completed.
– If Activity 7 is priming the walls of a house,
Activity 8 might be the activities involved in
selecting, purchasing, and finally delivering the
wallpaper.
– It is important not to hang the paper until the
wall primer has dried for 24 hours.
BMGMT 3203 Project Management 61
Precedence Diagramming
• Start-to-finish linkage
– Activity 11 cannot be completed before 7 days
since the start of Activity 10.
– If Activities 10 and 11 are the two major
cruising activities in a prepaid weeklong ocean
cruise, the total time cannot be less than the
promised week.