CPM & PERT

Project Management

Group H:

Chanchal Maloo
Mohit Agarwal
Manas Singh
Nitin Garg
What is a project? Build A
JAN FEB MAR APR MAY JUN

A Done
Any unique endeavor with specific objectives Build B
With multiple activities
B Done
With defined precedent relationships
With a specific time period for completion Build C

C Done
On time!

Examples?
Build D

Ship
A major event like a wedding Unique, one-time operations designed to accomplish a
Any construction project specific set of objectives in a limited time frame.
Designing a political campaign

Plan your work first…..then work your plan

Project Management & Network Analysis

Introduction

One definition of a project: “A project is a temporary endeavor undertaken to

create a "unique" product or service”

■ 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 analysis is the general name given to certain specific techniques which
can be used for the planning, management and control of projects.
 ■ How is it different?

Project –
–
Limited time frame
Narrow focus, specific objectives

Management ■
– Less bureaucratic
Why is it used?
– Special needs
– Pressures for new or improves products or
services
■ What are the Key Metrics
– Time
– Cost
– Performance objectives
■ What are the Key Success Factors?
– Top-down commitment
– Having a capable project manager
– Having time to plan
– Careful tracking and control
– Good communications
Methods used for network planning are
■ CPM- Critical Path Method
■ PERT- Program Evaluation and Review Technique

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..
History
Developed in 1950’s
CPM by DuPont for chemical plants
PERT by U.S. Navy for Polaris missile
■ CPM was developed by Du Pont and the
emphasis was on the trade-off between
the cost of the project and its overall
completion time (e.g. for certain
activities it may be possible to decrease
their completion times by spending more
money - how does this affect the overall
completion time of the project?)
■ PERT was developed by the US Navy for
the planning and control of the Polaris
missile program and the emphasis was on
completing the program in the shortest
possible time. In addition PERT had the
ability to cope with uncertain activity
completion times (e.g. for a particular
activity the most likely completion time is
4 weeks but it could be anywhere
between 3 weeks and 8 weeks).
 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
■ Is that the sequence of activities and events where there is no “slack” i.e..
Zero slack
■ Longest path through a network
■ minimum project completion time

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.
Steps in CPM
■ 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.
Before starting any of the Techniques, the questions asked would be

•What activities must be finished before this activity can start

•could we complete this project in 30 weeks?
•could we complete this project in 2 weeks?

One answer could be, if we first do activity 1, then activity 2, then activity 3, ...., then
activity 10, then activity 11 and the project would then take the sum of the activity
completion times, 30 weeks.

“What is the minimum possible time in which we can complete this project ? “
Example Deterministic time estimates

6 weeks
4
3 weeks
8 weeks 2

11 weeks Move in
1 5 6
1 week

4 weeks
9 weeks

3
Example 1- CPM
Critical Path

Path Length Slack

(weeks)
1-2-3-4-5-6 18 2
1-2-5-6 20 0
1-3-5-6 14 6

CRITICAL PATH TAKES 20 WEEKS FOR THE COMPLETION OF THE PROJECT

17-11
The Network Diagram
■ Path
– Sequence of activities that leads from the starting
node to the finishing node
■ Critical path
– The longest path; determines expected project
duration
■ Critical activities
– Activities on the critical path
■ Slack
– Allowable slippage for path; the difference the
length of path and the length of critical path
PERT - Project Evaluation & Review Techniques

■ Definition: In PERT activities are shown as a network of precedence

relationships using activity-on-arrow network construction
– Multiple time estimates
– Probabilistic activity times

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.
Probabilistic Time Estimates

■ Optimistic time
– Time required under optimal conditions
■ Pessimistic time
– Time required under worst conditions
■ Most likely time
– Most probable length of time that will be required
Example - PERT

Optimistic Most likely Pessimistic

time time time

2-4-6
b

Expected Time
3-4-5 3-5-7 5-7-9
d e f
to + 4tm +tp
te =
6
4-6-8
h te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
CPM Vs PERT

Basis PERT CPM

Full Form PERT works with probabilistic CPM works with fixed
time deterministic time

Meaning PERT is a technique, used to manage the CPM is a statistical technique used to
uncertain task of a project. manage the activities of a project.

Method To control time To control cost and time

Progress Research and development project Construction project

Manage Unpredictable activities Predictable activities

Appropriate for Research & Development project Non-research project. Example-ship

building, civil construction
 Gantt chart

Originated by H.L.Gantt in 1918

Advantages
- Gantt charts are quite commonly used.
They provide an easy graphical
representation of when activities (might)
take place.
Limitations
- Do not clearly indicate details regarding
the progress of activities
- Do not give a clear indication of
interrelation ship between the separate
activities
CPM/PERT

These deficiencies can be eliminated to a large extent by showing the

interdependence of various activities by means of connecting
arrows called network technique.

■ Overtime CPM and PERT became one technique

■ ADVANTAGES:
– Precedence relationships
– large projects
– more efficient
Limitations to CPM/PERT

■ Clearly defined, independent and stable activities

■ Specified precedence relationships
■ Over emphasis on critical paths
Industry
• MS Project
• Primavera
Thank you
Questions Answered by CPM & PERT

■ Completion date?
■ On Schedule?
■ Within Budget?
■ Critical Activities?
■ How can the project be finished early at the least cost?
 example
Illustration of network analysis of a minor redesign of a product and
its associated packaging.

The key question is: How long will it take to complete this project ?
For clarity, this list is kept to a minimum by specifying only
immediate relationships, that is relationships involving activities
that "occur near to each other in time".
We shall see below how the network analysis diagram/picture we construct
helps us to answer this question.
CRITICAL PATH TAKES 24 WEEKS FOR THE COMPLETION OF THE PROJECT