Scribd
Upload
59 views32 pages

Project Evaluation

The document discusses the critical path method (CPM) for project scheduling including computing the project variance and standard deviation along the critical path. It provides an example project network for building new hotels and asks questions about estimating the critical path time, activity variance along the critical path, and probability of project completion. Finally, it presents information on crashing the duration of three activities and calculating their corresponding crash costs.

Uploaded by

Charisa Samson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
59 views32 pages

Project Evaluation

The document discusses the critical path method (CPM) for project scheduling including computing the project variance and standard deviation along the critical path. It provides an example project network for building new hotels and asks questions about estimating the critical path time, activity variance along the critical path, and probability of project completion. Finally, it presents information on crashing the duration of three activities and calculating their corresponding crash costs.

Uploaded by

Charisa Samson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 32

PERT and CPM

Example 1
CRITICAL PATH METHOD
Computing Project Variance and Standard Deviation

Critical Path is ACEGH


Project Variance (σ )=sum of the variances
along the critical path

0.11+0.11+1.00+1.78+0.11= 3.11
Standard Deviation = (σp)
σp = √3.11 =1.76
Find Z value
Normal Distribution Table
Normal Distribution Table
Exercise 1

Bill Fennema, prsident of Fennema Hospitality, has developed the


tasks, durations, and predecessors relationships in the table for
building new hotels. Draw the network and answer the following
questions.
a. What is the estimated time of the critical path?
b. What is the activity variance along the critical path?
c. What is the probability of completion of the project?
Time Estimates(in week)

Immediate Optimistic Most Likely Pessimistic


Activity Predecessor(s) (a) (m) (b)
A ----- 4 8 10
B A 2 8 24
C A 8 12 16
D A 4 6 10
E B 1 2 3
F E,C 6 8 20
G E,C 2 3 4
H F 2 2 2
I F 6 6 6
J D,G,H 4 6 12
K I,J 2 2 3
Exercise 2

Three activities are candidates for crashing on a project network


for a large computer installation
a. Compute for the crash cost of the three activities
Immediate
Predecessor NORMAL NORMAL CRASH CRASH
Activity (s) TIME COST TIME COST

A ----- 7 DAYS 6,000.00 6 DAYS 6,600.00

B A 4 DAYS 1,200.00 2 DAYS 3,000.00

C B 11 DAYS 4,000.00 9DAYS 6,000.00

You might also like