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Presented By:

Pallavi Dhokne: M-09-14


Sarika Mankani M-09-29
Noopur Mer M-09-31
Malvika Saldanha M-09-44
Ikshita Sankhe M-09-45
A Project Manager in Cincinnat Equipment
Company is required to select an appropriate
scheduling technique for the project with
respect to the following guidelines:
 simple
 able to show durations of events
 the flow of work, and the relative sequence of
events
 able to indicate planning and actual flow

The methods for scheduling streamlined include


CPM, PERT and Gantt chart. We need to
point out which method would be most
suitable.
 Project management is the discipline
of planning, organizing, securing and
managing resources to bring about the
successful completion of specific project
goals and objectives
 It is sometimes conflated with program
management, however technically that is
actually a higher level construction
 Planning, Scheduling (or organizing) and
Control are considered to be basic Managerial
functions, and CPM/PERT has been rightfully
accorded due importance in the literature on
Operations Research and Quantitative
Analysis.
 There are many variations of CPM/PERT which
have been useful in planning costs, scheduling
manpower and machine time
 CPM /PERT is helpful in estimatimating time
required for project completion, risk involved,
critical activities, scheduling etc.
Critical Path Method
 History : CPM was the discovery of M.R.
Walker of E.I. Du Pont de Nemours & Co.
and J.E. Kelly of Remington Rand, circa
1957. The computation was designed for
the UNIVAC-I computer.

 Definition : The critical path method


(CPM) is an algorithm for scheduling a
set of project activities. It is an important
tool for effective project management.
Basic Requirements

 A list of all activities required to complete


the project (typically categorized within a work
breakdown structure),
 The time (duration) that each activity will
take to completion, and
 The dependencies between the activities
 Specify the individual activities.
 Determine the sequence of those activities.
 Draw a network diagram.
 Estimate the completion time for each activity.
 Identify the critical path (longest path through the
network)
 Update the CPM diagram as the project progresses.
2 weeks

2 weeks

1 week

2 weeks Metal and


other
foundry
inventory
procuremen
t

2 weeks

5 weeks
2 weeks
 Shows Expected project completion time
 Gives critical path and slack time
 Provides project documentation
 Useful in monitoring costs
 Helps determine flexibility
 CPM – for complex but fairly routine projects
with minimal uncertainty in the project completion times

 Over emphasis on “critical path”—that sequence of tasks


that defines the minimum amount of time for the project.

 Specified precedence relationships

 Alternative to CPM is the PERT project planning model, which


allows a range of durations to be specified for each activity.
Program Evaluation and Review
Technique
 The Program (or Project) Evaluation and
Review Technique, commonly abbreviated PERT,
is a model for project management designed to
analyze and represent the tasks involved in
completing a given project. It is commonly used in
conjunction with the critical path method or CPM.

HISTORY
 PERT was devised in 1958 for
the POLARIS missile program
by the Program Evaluation
Branch of the Special Projects
office of the U.S. Navy, helped
by the Lockheed Missile Systems
division and the Consultant firm
of Booz-Allen & Hamilton
Need of PERT
 Prediction of deliverables
 Planning resource requirements
 Controlling resource allocation
 Internal program review
 External program review
 Performance evaluation
 Uniform wide acceptance

Uses of PERT 
 In construction activities
 Transportation activities
 In oil refineries
 Computer systems
 For manufacturing electric generator machines
 Medical and surgical sector

 Shows Expected project completion time
 Shows the critical path activities that
directly impact the completion time
 Shows the activities that have slack time
and that can lend resources to critical
path activities
 Specifies activity start and end dates
 The activity time estimates are somewhat
subjective and depend on judgment and
experience
 Assumes subsequent task starts immediately
after prerequisite concluded
 Isn't Practical: too uncompromisingly harsh
 Difficult to display timing without making it too
confusing
 Developed as a production control tool
in 1917 by Henry L. Gantt, an
American engineer and social scientist

 A Gantt chart is a horizontal bar chart


that provides a graphical illustration of
a schedule, helps to plan, coordinate,
and track specific tasks in a project
• Planning and
scheduling projects;
• Assessing how long it
takes to complete a
project and its
component activities;
• Laying out the order
in which the activities
or tasks will be
carried out;
• Monitoring the
progress of each
activity;
 Dual advantage: the Big Picture as well as the
Specifics
 Role and Task Clarity: Specific
 Very easy to use and understand
 Acts as a Motivational tool
 Communication and Co-ordination
 Management: Time, Decision-Making
 Flexibility: improvisation, easy to modify and adjust
with changing scenarios
 Demands Efficiency: goodness of using WBS
 Acts as an Audit tool
 Fosters Accountability
 Interdependencies of tasks not defined
 Represents only part of the Project Triple Constraints
of Time, Cost, and Scope
 Unwieldy for projects with more than about 30
activities
 Does not reflect true project status because elements
behind schedule do not mean that the project is
behind schedule
 Does not show the uncertainty involved in performing
the activity, therefore questions concerning the
minimum or maximum duration of the activity are not
represented 
 Both follow the same steps and use
network diagram
 Both are used to plan the scheduling of
individual activities that make up the
project
 Can be used to determine the
earliest/latest start and finish times for
each activity
• PERT is probabilistic & CPM is
deterministic
• In CPM, estimates of activity duration are
based on historical data
• In PERT, estimates are uncertain and is in
the form of ranges of duration and the
probability that an activity duration will
fall into that range
• CPM concentrates on Time/Cost trade off
 Table below shows the activities of a
project and their optimistic , pessimistic
and most likely times. Develop a network
diagram for the project activities.
Calculate the critical path and probability
of finishing the project in 30 days.
2 4

1
6

3 5
Activity Start Time Duration End Date
1-2 01-03-2011 6 07-03-2011
1-3 01-03-2011 11 12-03-2011
2-4 07-03-2011 8 15-03-2011
3-5 12-03-2011 14 26-03-2011
4-5 15-03-2011 7 22-03-2011
4-6 14-03-2011 5 19-03-2011
5-6 22-03-2011 8 30-03-2011
 Calculation of expected time :

 Te = (To + 4Tm + Tp) / 6

 Calculation of variance :

 {(Tp – To) / 6 }2
8
2 4
5
6

1 7
6

11

3 8
5
14
 Critical Path
 1–3–5–6

 Duration of the project


 33 Days

 Probability of completion of project, Z

 Z= (desired project period – expected


project period)/ sqrt(standard deviation of
critical path activities)
 Therefore,
Z= (30 -33)/sqrt (12)
= (-3)/3.46
= 0.86
 So the probability of completing the
project is 30 days is 0.86 i.e 86 %
 GANTT is a graphical representation, diagramming
method, PERT is an estimation method and the critical
path is scheduling methodology
 GANTT the best way to describe the schedule in a
visual manner especially as the Task Network diagram
becomes more complex with interacting task chains.
This is because it intrinsically shows the interactions,
and relationships between the various task chains
 PERT helps in finding out probabilities related to the
completion of tasks
 Critical Path method is a scheduling and
monitoring methodology. It focuses on the tasks
which form the longest chain. By concentrating
on those tasks the project manager can reduce
their focus to a reasonable level rather than
attempting to focus on all tasks in the project
 Each of the methods have their own strengths
and weaknesses and therefore, there is no
particular preference for any one method of
scheduling as they each have a significant role to
play in Project Management.
 All three can be used in the same project -- they
are complimentary after all. To say that one is
better than the other is to ignore the basic
purpose of each