CPM Pert
CPM Pert
Introduction
Developed in 1950s
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CPM / PERT
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What is a project
The project consists of a well-defined
collection of jobs, or activities, which when
completed marks the end of the project
The jobs may be started or stopped
independently of each other, within a given
sequence
The jobs are ordered, i.e. they must be
performed in technological sequence
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Network Diagram
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Draw Network Diagram … 1
Activity Start Node End Node Description Duration
(in Days)
B 2 4 Pricing sales 3
C 2 3 Preparing production 7
schedule
D 3 4 Costing the 4
production
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3 da ys 4
1 14 days 2 10
B da
A y
a ys
E s
7
4d
da
D
ys
C
5
3
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Draw Network Diagram … 2
Activity Immediate Duration
Predecessor (in Days)
A - 14
B - 3
C A 7
D A, B 3
E C 4
F D, E 10
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Dummy Activities
Every project preferably should have one
start node and one end node
We require dummy activities when a project
contains groups of two or more jobs which
have some, but not all, of their immediate
predecessors in common
These dummy activities have duration of 0
units of time
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Draw Network Diagram … 2
Activity Start Node End Node Immediate Duration
Predecessor (in Days)
A 1 3 - 14
B 1 2 - 3
C 1 4 - 7
F 2 3 B 0
G 2 4 B 0
D 3 5 A, B 4
E 4 5 B, C 10
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Critical Path … 1
Activity Immediate Duration
Predecessor (in Days)
A - 8
B A 2
C B 3
D - 5
E D 2
F E 3
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Critical Path … 1
Activity Start End Immediate Duration
Node Node Predecessor (in Days)
A 1 2 - 8
B 2 3 A 2
C 3 6 B 3
D 1 4 - 5
E 4 5 D 2
F 5 6 E 3
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How many different paths?
From start node to end node, we can have
more than one paths
Summing up durations of the activities on a
particular path gives the total duration of
that path, called as “Project Path”
A path is called a “Critical Path” if it is the
longest project path in a project network
Activities on the critical path are called as
“Critical Activities”
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Find Critical paths
Activity Start End Duration
Node Node (in Days)
A 1 2 2
B 1 3 4
C 2 5 3
D 3 4 2
E 3 5 5
F 3 6 5
G 4 6 2
H 4 7 3
I 5 8 4
J 6 7 6
K 7 8 1
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Different Critical paths are …
A: 1-2-5-8 (9 Days)
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What do we then?
For complex projects, we will have to find
all possible project paths
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Multiple Critical Paths
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Can Critical Path Change?
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14
1 3 3
2 3 0
2 4 7
3 5 3
4 5 4
5 6 10
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14
1 3 3 0 3
2 3 0 14 14
2 4 7 14 21
3 5 3 14 17
4 5 4 21 25
5 6 10 25 35
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14 0 14
1 3 3 0 3 19 22
2 3 0 14 14 22 22
2 4 7 14 21 14 21
3 5 3 14 17 22 25
4 5 4 21 25 21 25
5 6 10 25 35 25 35
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14 0 14 -
1 3 3 0 3 19 22 19
2 3 0 14 14 22 22 8
2 4 7 14 21 14 21 -
3 5 3 14 17 22 25 8
4 5 4 21 25 21 25 -
5 6 10 25 35 25 35 -
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14 0 14 -
1 3 3 0 3 19 22 19
2 3 0 14 14 22 22 8
2 4 7 14 21 14 21 -
3 5 3 14 17 22 25 8
4 5 4 21 25 21 25 -
5 6 10 25 35 25 35 -
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Example … 2
Job I J Duration Ei Ej Li Lj Slack
A 1 2 2
B 2 3 3
C 2 4 5
D 3 5 4
E 3 6 1
F 4 6 6
G 4 7 2
H 5 8 8
I 6 8 7
J 7 8 4
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Example … 2
Job I J Duration Ei Ej Li Lj Slack
A 1 2 2 0 2
B 2 3 3 2 5
C 2 4 5 2 7
D 3 5 4 5 9
E 3 6 1 5 6
F 4 6 6 7 13
G 4 7 2 7 9
H 5 8 8 9 17
I 6 8 7 13 20
J 7 8 4 9 13
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Example … 2
Job I J Duration Ei Ej Li Lj Slack
A 1 2 2 0 2 0 2
B 2 3 3 2 5 5 8
C 2 4 5 2 7 2 7
D 3 5 4 5 9 8 12
E 3 6 1 5 6 12 13
F 4 6 6 7 13 7 13
G 4 7 2 7 9 14 16
H 5 8 8 9 17 12 20
I 6 8 7 13 20 13 20
J 7 8 4 9 13 16 20
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Example … 2
Job I J Duration Ei Ej Li Lj Slack
A 1 2 2 0 2 0 2 -
B 2 3 3 2 5 5 8 3
C 2 4 5 2 7 2 7 -
D 3 5 4 5 9 8 12 3
E 3 6 1 5 6 12 13 7
F 4 6 6 7 13 7 13 -
G 4 7 2 7 9 14 16 7
H 5 8 8 9 17 12 20 3
I 6 8 7 13 20 13 20 -
J 7 8 4 9 13 16 20 7
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Example … 2
Job I J Duration Ei Ej Li Lj Slack
A 1 2 2 0 2 0 2 -
B 2 3 3 2 5 5 8 3
C 2 4 5 2 7 2 7 -
D 3 5 4 5 9 8 12 3
E 3 6 1 5 6 12 13 7
F 4 6 6 7 13 7 13 -
G 4 7 2 7 9 14 16 7
H 5 8 8 9 17 12 20 3
I 6 8 7 13 20 13 20 -
J 7 8 4 9 13 16 20 7
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PERT
Insome cases, instead of exact time
duration for each activity, 3 estimates are
available as follows
– to – Optimistic Time
– tm – Moderate Time
– tp – Pessimistic Time
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Wt. Average, Std. Dev. & Variance
Weighted average of these 3 time estimates
is calculated as follows
– te = (to + 4tm + tp) / 6
A 1 2 2 5 14
B 1 3 3 12 21
C 2 4 5 14 17
D 3 4 2 5 8
E 3 5 6 15 30
f 4 5 1 4 7
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PERT Example … 1
Activity I J To Tm Tp Te St Vt
A 1 2 2 5 14 6
B 1 3 3 12 21 12
C 2 4 5 14 17 13
D 3 4 2 5 8 5
E 3 5 6 15 30 4
f 4 5 1 4 7 16
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PERT Example … 1
Activity I J To Tm Tp Te St Vt
A 1 2 2 5 14 6 2
B 1 3 3 12 21 12 3
C 2 4 5 14 17 13 2
D 3 4 2 5 8 5 1
E 3 5 6 15 30 4 1
f 4 5 1 4 7 16 4
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PERT Example … 1
Activity I J To Tm Tp Te St Vt
A 1 2 2 5 14 6 2 4
B 1 3 3 12 21 12 3 9
C 2 4 5 14 17 13 2 4
D 3 4 2 5 8 5 1 1
E 3 5 6 15 30 4 1 1
f 4 5 1 4 7 16 4 16
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Variance and SD for the project
Variance of the project, VT is calculated as
the sum of Vt (Variance) for all the activities
which are on critical path
Standard Deviation of the project, ST is
calculated as square root of the VT
Standard Normal variable, Z is calculated as
follows
– Z = (D – Te) / ST
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Finding probability of completing
the project in given duration
Forthe given value of D in the formula, we
can find out the probability of completing
the project in given duration using
“Standard Normal Distribution” table
Z = (D – Te) / ST
– Where
– D is the duration in which we expect the
project to be completed
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Finding duration of the project
for the given probability
For the given probability, p of completing the
project, we can find out the duration, D as
follows
P(X = p) to be found out from “Standard
Normal Distribution” table
Z = (D – Te) / ST
– Where
– Z is the value extracted from “Standard
Normal Distribution” table for the given
probability
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Questions ???
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