PERT and CPM

NETWORK TECHNIQUES
PERT CPM
Program Evaluation Critical Path
and Review Method
Technique Developed by El
developed by the US
Dupont for Chemical
Navy with Booz Plant Shutdown
Hamilton Lockheed on Project- about same
the Polaris time as PERT
Missile/Submarine
program 1958
• Both use same calculations, almost similar
• Main difference is probabilistic and deterministic
in time estimation
Objective Of Networking
1)Helpful in Planning.
2)Inter-Relationship of various activities.
3)Cost Control.
4)Minimization of Maintenance.
5)Reduction of time.
6)Control on Idle Resources.
7)Avoiding Delays , interruptions.
Continue..
1)Helpful in planning : Network analysis is
powerful tool for planning , scheduling
and controlling.
2)Inter-Relationship of various activities:
Network analysis creates inter-
relationship and inter dependence of
various activities of project or a
programme.
3)Cost Control : In certain cases we can
measure cost of delay in the completion
of the project. This cost can be
compared to the cost of the resources
Continue..
5)Reduction of time: Sometime we have to arrange
existing resources with a view to reducing the total
time for the project , rather than reducing cost.
6)Control on Idle Resources: Network analysis also
helps to control the idle resources. We should not
allow large fluctuation in the use of limited
resources .We adhere to our scheduled cost and
time.
7)Avoiding Delays , interruptions : Network analysis
develops discipline and systematic approach in
planning scheduling etc. this not the case in
traditional methods . It helps managers to avoid
delays.
Characteristics
It forms the basis for all planning and
predicting.
It provides management with the ability to
plan for the best possible.
It provides visibility and enables
management to controls “one-of a-kind”
programs as opposed to repetitive
situations.
It provides the basic structure for reporting
information.
Project scheduling by
PERT - CPM
Planning
Scheduling
Controlling
Project Planning : In the project
planning phase, you need to perform
the following activities
Identify Tasks
Determine Resources Requirement
Estimate Cost and Time
Specify inter-relationship between Tasks
Develop network Diagram
Identify various tasks or work elements
to be performed in the project
Identify various tasks or work elements to
be performed in the project.
Determine requirement of resources , such
as men , material, and machines ,for
carrying out activities listed above.
Estimate costs and time for various
activities.
Specify the inter – relationship among
various activities.
Develop network diagram.
Project Scheduling
Once the planning phase , scheduling of
the project is when each of the activities
requried to be performed , taken up.
Estimate the durations of activities.
To calculate the total project project
duration by applying network analysis
techniques.
Project Control
Project control refers to comparing the
actual progress against the estimated
schedule.
If significant difference are observed then
you need to re-schedule the project to
update or revise the uncompleted part of
the project.
NETWORKING
Activity : any portions of project (tasks)
which required by project, uses up resource
and consumes time – may involve labor,
paper work, contractual negotiations,
machinery operations Activity on Arrow
(AOA) showed as arrow, AON – Activity on
Node
Event : beginning or ending points of one
or more activities, instantaneous point in
time, also called ‘nodes’
Network : Combination of all project
activities and the events
CPM - Critical Path
Method
Definition: In CPM activities are shown as a network
of precedence relationships using activity-on-node
network construction Single estimate of activity
time
Deterministic activity times
USED IN : Production management - for the jobs of
repetitive in nature where the activity time
estimates can be predicted with considerable
certainty due to the existence of past experience.
CPM - Critical Path Method- A critical path is a
sequence of connected activities that lead from
beginning of the project to the end of the project.
The longest path in the network is called the
CRITICAL PATH.
Steps in CPM Project
Planning
1)Specify the Individual Activities
2)Determine the Sequence of the Activities.
3)Draw the Network Diagram.
4)Estimate Activity Completion Time.
5)Identify the Critical Path.
1)Specify the Individual Activities : From the work break
down structure , a listing can be made of all the
activities in the project. This listing can be used as the
basis for adding sequence and duration information in
later steps.
2)Determine the Sequence of the Activities: Some
activities are dependent on the completion of others.
3)Draw the Network Diagram: Once the activities and
their sequencing have been defined , the CPM diagram
can be drawn.
4)Estimate Activity Completion Time : The time required
to complete each activity can be estimated using past
experience or the estimates of knowledgeable persons.
5)Identify the Critical Path : The critical path is longest
duration path through the network.
 ES earliest start time.
 EF earliest finish time.
 LF earliest finish time.
Advantages of CPM
Helpful for scheduling ,monitoring and
controlling projects.
The activities and their outcomes can be
shown as a network.
Displays dependencies to help scheduling.
Evaluates which activities can run parallel
to each other.
Widely used in industry.
Can define multiple, equally critical paths.
Disadvantages of CPM
CPM’s can be complicated , and complexity
increases for larger projects.
Does not handle the scheduling of
personnel or the allocation of resources.
The critical path is not always clear and
needs to be calculated carefully.
Estimating activity completion times can be
difficult.
PERT - Project Evaluation &
Review Techniques
Definition: PERT is basically a method for
analyzing the task involved in completing a
given project. It is a network technique
which consist events.
PERT is useful in project planning and
control.
USED IN : Project management - for non-
repetitive jobs (research and development
work), where the time and cost estimates
tend to be quite uncertain.
This technique uses probabilistic time
estimates.
Steps in PERT Planning
Process.
Identify the specific activities and
milestones.
Determine the proper sequences of the
activities.
Construct a network diagram.
Estimate the time required for each activity.
Determine the critical path.
Updated the PERT chart as the project
progress.
1)Identify the specific activities and milestones: The activities
are the tasks required to complete the project . The milestone
era the events marking the beginning and end of one or more
activities.
2) Determine the proper sequences of the activities : This steps
may be combined with the activity identification step since the
activity sequence is evident for some tasks.
3)Construct a network diagram : Using the activity sequence
information , network diagram can be drawn showing the
sequence of the serial and parallel activities.
4)Estimate the time required for each activity: Weeks are a
commonly used unit of time for activity completion , but any
consistent unit of time can be used.
5)Determine the critical path: The critical path is determined by
adding the times for the activities in each sequence and
determining the longest path in project.
6)Updated the PERT chart as the project progress : Make
adjustments in the PERT chart as the project progresses . As
the project unfolds, the estimated times can be replaced with
actual times.
Merits of PERT Expected project
completion time
Probability of completion before a specified
date.
The critical path activities that directly
impact the completion time.
It permits more effective planning and
control.
It enables the use of statistical analysis.
Demerits of PERT
It does not lay any emphasis on the cost of
a project.
It lays emphasis only on time.
It does not help in routine planning of the
recurring events.
For effective control ,the PERT requires,
frequent up-to-date information.
It does not consider the matter of resources
required for various types of activities of a
project
Comparison Between CPM and
PERT
CPM PERT

1 It is a deterministic model. It is a probabilistic model

2 In CPM estimates of activity In PERT estimates are
duration are based on uncertain and we talk of
historical data. ranges of duration and the
probability that an activity
duration will fall into that
range.
3 It is used for repetitive jobs It is known for non- repetitive
like residential construction. jobs like research and
development programmes.
4 It deals with concept of It does not deal with concept
crashing. of crashing.

5 Example: construction Example: Involving new