PERT and CPM

Submitted to:
Dr. Vineet Tiwari
Dept. of Management
Studies
IIIT, Allahabad
Submitted by:
Kuldeep Singh & Mohit Kumar
Research Scholars
Dept. of Management
Studies
IIIT, Allahabad
 Project Management
Project: Consist of interrelated activities
Executed in a certain order
Before entire task is completed

“Interrelated activities having logical sequence

Which is known as precedence relationship”.
Project Network
Representation of Project

In the form of a

Network diagram

Which helps to

Make analytical treatment

Which provide

Solution for scheduling and

controlling the activities
 Two basic Techniques of Project
Management

1. CPM (Critical Path Method)

2. PERT (Project Evaluation and Review Technique)

 Different Phases of Project Management

Planning:
• dividing the project in to distinct activities
• Estimating the time requirement for each activity
• Establishing precedence relationship among the activities
• Construction of the arrow diagram

Scheduling:
• Determine the start and end time for each and every activity

Controlling:
• Use the arrow diagram and time chart for continuous monitoring and process
reporting
Difference Between PERT and CPM
PERT CPM
• Used for non repetitive jobs. Exp. Research • Used for repetitive jobs. Exp. Building
activities Construction
• Probabilistic Model (Based on β • Deterministic Model
distribution)
• Three time we considered
• Timing always fixed and known
• Optimistic time • Which is shown by te
• Most likely time • It is activity oriented, which required
• Pessimistic time resources
• Mean expected time (te)
• te=
• Variance = σ2 =( )2
• it is event oriented, which does not
required resources
• And could be start of an activity, end of an
activity, non completion of an activity etc.

Both required Time

 Guidelines for Network Construction
• Starting Event - Tailed Event
• Ending Event - Head Event
b 2

1 a 2

c
3

• These 1 , 2, 3 are called Different Node. Node 1, Node 2, Node 3 etc.

• For exp. Node 1 called tailed event and Node while Node 2 called Head Event for activity a.
• The network had a unique starting node (Tail Event) for each and every activity.
• The network had a unique Ending node (Head Event) for each and every activity.
• No activity should be represented by more then one arc.
• No two activities should have the same starting and ending node.
 Total Float and Free Float
• Total Float: the amount of time that the completion time of an activity
can be delayed without affecting the project completion time.
• LF – ES –D Where L = Latest, E = Earliest, F= Final, S= Start, D= Duration
• Free Float: the amount of time that the activity completion time can be
delayed without affecting the earliest start time of immediate successor
activities in the network.
• EF – ES – D
• Independent Float: predecessor event occurs at its latest possible time
and the successor event at its earliest time
• EF – LS - D
8
15
2
9
2
d,7 4
𝐿 0 A,2

𝐸 0 1 b,5 5
3
5
c,4

10
4
Problem 1. Some Info is given regarding a project
Activity Immediate Precedence Duration (in months)
A - 2
B - 5
C - 4
D B 5
E A 7
F A 3
G B 3
H C,D 6
I C,D 2
J E 5
K F,G,H 4
L F,G,H 3
M I 12
N J,K 8
• On the basis of above problem
1. Construct the CPM network
2. Determine the Critical Path and Project Completion Time
3. Compute Total Floats and Free Floats for Non critical activities
 SOLUTION of Prob. 1

8 15 20
2 9 20
2 E,7 5 J,5
8

N,8
0 A,2
F,3
K,4
5
0
5
1 B,5
3 G,3 6 L,3 9
28
16
28
16
C,4 D,5 M,12
H,6

4 i,2 7
10 16 Fig.1 CPM Diagram of Problem 1
10 12 Critical Path Shown BY Dark Line
Nodes are shown by Circle
Critical Path = 1 – 3 – 4 – 6 – 8 – 9
And in Square Box =
B–D–H–K-N
Project Completion Time = 5+5+6+4+8 = 28 Days
Column
1
2 3 4 5 6 7 8 9 10 11
Activity Duration ES EF LS LF Total
Float
Head Event Slack
L - E @ Head Event
Free Float
7–8
Tail Event Slack
L - E @ Tail Event
Independent Float
9 – 10
5–3
(A) 1-2 2 0 2 6 8 6 6 0 0 0

(B) 1-3 5 0 5 0 5 0 0 0 0 0

(C) 1-4 4 0 4 6 10 6 0 6 0 6

(D) 3-4 5 5 10 5 10 0 0 0 0 0

(E) 2-5 7 2 9 8 15 6 6 0 6 -6

(F) 2-6 3 2 5 13 16 11 0 11 6 5

(G) 3-6 3 5 8 13 16 8 0 8 0 8

(H) 4-6 6 10 16 10 16 0 0 0 0 0

(I) 4-7 2 10 12 14 16 4 4 0 0 0

(J) 5-8 5 9 14 15 20 6 0 6 6 0

(K) 6-8 4 16 20 16 20 0 0 0 0 0

(L) 6-9 3 16 19 25 28 9 0 9 0 9

(M) 7-9 12 12 24 16 28 4 0 4 4 0

(N) 8-9 8 20 28 20 28 0 0 0 0 0
PERT and CPM
CPM: Deterministic
PERT: Probabilistic (have three time estimates)
1. Optimistic time
2. Most likely time
3. Pessimistic time
Problem 2. Some Info is given regarding a project

Activity Predecessor Optimistic time Most Likely Time Pessimistic time

A - 5 6 7
B - 1 3 5
C - 1 4 7
D A 1 2 3
E B 1 2 9
F C 1 5 9
G C 2 2 8
H E,F 4 4 10
I D 2 5 8
J H,G 2 2 8
• On the basis of above problem
1. Find the expected duration and variance of each activity
2. Find the critical path and expected project completion time
3. What is the probability of completing the project on or before 22 weeks.
 Solution of Prob. 2 :
A Predecessor Optimistic Most Likely Pessimistic time Te V
C time Time Estimated Time Variance
T ( )2
IVITY

A - 5 6 7 6 0.11

B - 1 3 5 3 0.44

C - 1 4 7 4 1.00

D A 1 2 3 2 0.11

E B 1 2 9 3 1.78

F C 1 5 9 5 1.00

G C 2 2 8 3 1.00

H E,F 4 4 10 5 1.00

I D 2 5 8 5 1.00

J H,G 2 2 8 3 1.00
 SOLUTION of Prob. 2 : Critical Path = 1 – 4 – 6 – 7 – 8
C–F–H–J
10 12 Project Completion Time = 4+5+5+3 = 17 Days
6 8
2 D,2 5

i, 5
0 A,6
0 6
0
3
1 B,3
3 E,3 6 8
17
9
17
9
C,4 J,3
F,5
H,5

4 G,3 7
4 14 Fig.2 PERT Diagram of Problem 2
4 14 Critical Path Shown BY Dark Line
Nodes are shown by Circle
And in Square Box =
 Solution of Problem 2 (iii) :

We have to check What is the

probability of completing the project on
ACTIVITY Te V or before 22 weeks .
of Critical Estimated Time Variance
Paths ( )2
It means : X = 22
μ = 17
C 4 1.00
Where z=
F 5 1.78
So z=
H 5 1.00
z = 2.28
J 3 1.00
The z value for 2.28 in Z table is .9887
Total 17 Days 4.78
It means the probability of completing
the project on or before 22 weeks is
98.87%.
SIR