CPM and Pert Analysis

PROJECT MANAGEM
CPM & PERT TECHNI

FLOW OF PRESENTATION
 INTRODUCTION
 NETWORK PLANNING
 ESTIMATING TIME
 CPM
 PERT
Project Management
Project
 A project is an interrelated set of activities that has a definite
starting and ending point and that results in a unique product
or service.
Project management
 Project management is a scientific way of planning, implementing,
monitoring & controlling the various aspects of a project such as time,
money, materials, manpower & other resources.
Network Planning Methods
 Methods used for network planning are:

CPM
PERT
 Managing a project with network planning methods involves four steps:
1. Describing the Project.

2. Diagramming the Network.
3. Estimating time of completion.
4. Monitoring Project Progress.
Network Diagram
Concepts
 Activity
 Precedence relationship
 Successor
 Event
Guidelines for network diagram
1. Before an activity can begin, its preceding

activities must be completed.
2. Arrows indicate logical precedence.
3. Flow of the diagram is from left to right.
4. Arrows should not intersect.
5. Dangling should be avoided.
APPRAOCHES FOR
NETWORK DIAGRAM
ACTIVITY ON ARC(AOA):
 Uses arcs to represent activities and nodes
to represent events.
 It is Event Oriented.
3
1 2 6 7 8
4 5
DUMMY ACTIVITY
AOA approach requires the addition of a

Dummy Activity to clarify the precedence
relationships between the two activities. It
is a zero time activity and consumes no
resources.
Dummy Activity is used in two situations:

1) When two or more activities
1 start and end
3 at the
same nodes
2
2) When two or more activities share the same
precedence activity but not all the precedence
are shared.
1 3 5
2 4 6
ACTIVITY ON NODE(AON):
Uses nodes to represent activities and arcs

indicate precedence relationships between
them.
It is Activity Oriented.
ESTIMATING TIME
OF
COMPLETION
Planning the schedule of the project
Time estimates include:

1) Total time for completion.
2) ES- Earliest start time: the earliest time at which the activity
can start given that its precedent activities must be completed
first.
3) EF-Earliest finish time: equals to the earliest start time for the activity
plus the time required to complete the activity.
4) LF- Latest finish time: the latest time in which the activity can be
completed without delaying the project.
5) LS- Latest start time: equal to the latest finish time minus the time
required to complete the activity.
6) FORWARD PASS:
The early start and early finish times are calculated by
moving forward through the network and considering the
predecessor activities Considers maximum
7) BACKWARD PASS:
The latest start and finish times are calculated by moving backward
through the network.
Considers minimum
8) SLACK TIME:
Slack time for an activity is the difference between its earliest and
latest start time or between the earliest and latest finish time.
Critical path is the path of activities having zero Slack time.
A Simple Project
Activity Immediate Expected

Predecessor Time
A - 5
B - 6
C A 4
D A, B 2
Precedence Diagram
ES Earliest Starting (time)
EF Earliest Finishing
LS Latest Starting
LF Latest Finishing
Slack Difference Time
CRITICAL PATH
METHODS(CPM)
HISTORY :
It was developed by J.E.KELLY of REMINGTON-RAND
and M.R.WALKER of DU PONT and the emphasis was
on the trade-off between the cost of project
and its overall completion time. The first test was
made in 1958,when CPM was applied to the
construction of a new chemical plant.
DEFINITION:
Critical path is the sequence of activities between a
project’s start and finish that takes the longest time to
complete.
STEPS IN DETERMINING
CRITICAL PATH
• Specify the individual activities.
• Determine the sequence of the activities.
• Draw the network diagram.
• Estimate the activity completion time.
• Identify the critical path.
• Update the CPM diagram.

Activit Preceden Normal time Normal
y ce (week) Cost (Rs)
A - 3 300
B A 3 30
C A 7 420
D A 9 720
E D 5 250
F B,C,E 6 320
G F 4 400
H F 13 780
I G 10 1000
Total 4220
4 7
1 2 5 6
3
8
Overhead cost as per the given data- Rs.50
Paths in the network diagram :
A-D-F-G-I = 32
A-D-F-H = 31
A-C-F-H = 29
A-C-F-G-I = 30
A-B-E-F-H = 30
A-B-E-F-G-I = 31
ical path – A-D-F-G-I = 32
4 7
1 2 5 6
3
8
TIME ESTIMATES
o Optimistic time (to) – It is the shortest time in

which the activity can be completed.
o Most likely time (tm) – It is the probable time
required to perform the activity.
o Pessimistic time (tp) – It is the longest estimated time
required to perform an activity.
o Expected time
te = to + 4tm + tp
6
STEPS IN PERT
1. Identify the specific activities.
2. Determine proper sequence of the activities.
3. Construct the network diagram.
4. Estimate the time required for each activity.
5. Determine the critical path.
6. Update the PERT chart.

Activity Descrip Preced Optimis Most Pessimi Expecte
tion ence tic time Likely stic d time
time time
A Initial - 12 16 26 17
design
B Survey A 6 9 18 10
market
C Build A 8 10 18 11
prototype
D Test C 2 3 4 3
prototype
E Redesign B,D 3 4 11 5
ing
F Market E 6 8 10 8
testing
G Set up F 15 20 25 20
productio
n
1 2 4 5 6 7
A-B-E-F-G = 60
A-C-D-E-F-G = 64 (CRITICAL PATH)
Advantages of PERT
• Expected project completion time.
• Probability of completion before a specified date.
• The critical path activities that directly impact the

completion time.
• The activities that have slack time and that can lend
resources to critical path activities.
• Activity start and end dates.

LIMITATIONS
• The PERT Formula Requires Too Much Work.

• The network charts tend to be large and unwieldy.
• Calculating the time estimates is very complex for all
the activities.
• Updating of the project is time consuming and
requires high costs.
• Emphasis is laid only on time factors and cost factors
are neglected.
Difference between
CPM & PERT
CPM PERT
• CPM works with fixed • PERT works with probabilistic
deterministic time time
• CPM is useful for repetitive • PERT is useful for non
and non complex projects with repetitive and complex
a certain degree of time projects with uncertain time
estimates. estimates.
• CPM includes time-cost trade • PERT is restricted to time
off. variable.
• CPM- for construction • PERT- used for R&D

projects. programs.
Thank You…

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PROJECT MANAGEM

CPM & PERT TECHNI

 Methods used for network planning are:

 Managing a project with network planning methods involves four steps:

1. Describing the Project.

1. Before an activity can begin, its preceding

AOA approach requires the addition of a

Dummy Activity is used in two situations:

Uses nodes to represent activities and arcs

Time estimates include:

Activity Immediate Expected

• Specify the individual activities.

• Determine the sequence of the activities.

• Draw the network diagram.

• Estimate the activity completion time.

• Identify the critical path.

• Update the CPM diagram.

o Optimistic time (to) – It is the shortest time in

1. Identify the specific activities.

2. Determine proper sequence of the activities.

3. Construct the network diagram.

4. Estimate the time required for each activity.

5. Determine the critical path.

6. Update the PERT chart.

• Expected project completion time.

• Probability of completion before a specified date.

• The critical path activities that directly impact the

• Activity start and end dates.

• The PERT Formula Requires Too Much Work.

• CPM- for construction • PERT- used for R&D

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