Network Analysis - PERT & CPM

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Network Analysis : Pert & CPM

Introduction
• Network analysis is one of the important tools for
project management.
• Whether major or minor a project has to be
completed in a definite time & at a definite cost.
• The necessary information of any particular data can
be represented as a project network.
• These techniques are very useful for planning,
scheduling and executing large-time bound projects
involving careful co-ordination of variety of complex
and interrelated activities
Objectives of network analysis
• Helpful in planning
• Inter-relationship of various activities
• Cost control
• Minimisation of maintenance time
• Reduction of time
• Control on idle resources
• Avoiding delays, interruptions
Applications of network analysis
• Planning, scheduling, monitoring and control of large
and complex projects.
• Construction of factories, highways, building,
bridges, cinemas etc.
• Helpful to army for its missile development.
• Assembly line scheduling
• Installation of computers and high tech machineries
• To make marketing strategies
Stages for project management
• Project planning stages : it is an important step during
which are set the plans and strategies for projects
execution. It has two important aspects – identification of
activities and estimation of resources.
Project planning involves following steps :
1. Setting the objectives of the project and the assumptions
to be made.
2. Developing the WBS.
3. Determination of time estimates of these activities
4. Estimation of resources
5. establishment of interdependence relationship between
activities i.e. The sequence of performing activities.
Scheduling stage : once all work packages have
been identified and given unique names or
identifiers, scheduling of the project started. It
consist of determining:
1. Start and finish times of each activity and the
earliest and latest times at which events can
occur.
2. Critical activity that requires special attention.
3. Allocation resources-men, machines, materials,
time, space, money etc.
4. Various constraints due to limitation of
resources.
• Project control stage : project control refers to evaluating
actual progress against the plan. If significant differences
are observed, then the scheduling and resources allocation
decisions are changed to update and revise the
uncompleted part of the project. It consists of following
steps:
1. Setting standard and targets with regard to time and cost
of the project.
2. Reviewing the progress by comparing the work
accomplished to the work scheduled at different stages
of time and finding deviations.
3. Evaluating the effects of deviations on the project plan.
4. Updating the project schedule.
5. Suggesting the corrective measures to rectify the
deviations from the plan.
Basic tools and techniques of project
management
• The various tools and techniques of project
management are grouped into the following
two heads:
1. Bar Charts, Milestone charts and velocity
diagrams
2. Network techniques.
Bar Chart
Gantt chart
Velocity Chart
The Velocity Chart shows the amount of value delivered in each sprint, enabling you
to predict the amount of work the team can get done in future sprints. It is useful
during your sprint planning meetings, to help you decide how much work you can
feasibly commit to.
You can estimate your team's velocity based on the total Estimate (for all completed
stories) for each recent sprint. This isn't an exact science — looking at several
sprints will help you to get a feel for the trend. For each sprint, the Velocity Chart
shows the sum of the Estimates for complete and incomplete stories. Estimates can
be based on story points, business value, hours, issue count, or any numeric field of
your choice.
Milestone chart
Network techniques
• A network also called as network diagram or network technique is a
symbolic representation of the essential characteristics of a project.
PERT and CPM are two most widely applied techniques.
1. Program evaluation and review technique(PERT):
• It uses event oriented network in which successive events are joined
by arrows.
• It is preferred for projects that are non repetitive and in which time
for various activities can not be precisely pre determined.
• There is no significant past experience to guide.
• Launching a new product in the market by company, research and
development of new war weapon, launching of satellite, sending
space craft to mars are PERT projects.
• Three time estimates – the optimistic time estimate, pessimistic
time estimate and the most likely time estimate are associated with
each and every activity to take into account the uncertainty in their
times.
Network techniques
2. Critical Path Method (CPM):
• It uses activity oriented network which consists of a
number of well recognized jobs, tasks or activities.
• Each activity is represented by arrow and activities are
joined together by events.
• CPM is generally used for simple, repetitive types of
projects for which the activity times and costs are
certainly and precisely known.
• Projects like construction of building, road, bridge,
physical verification of store, yearly closing of accounts
by a company can be handled by CPM.
• Thus it is deterministic rather than probabilistic model.
Difference between PERT & CPM
PERT CPM
A probability model with A deterministic model with well
uncertainty in activity known activity times based upon the
duration . The duration of past experience.
each activity is computed
from multiple time estimates
with a view to take into
account time uncertainty.

It is applied widely for


It is used for construction projects &
planning & scheduling
business problems.
research projects.

CPM deals with cost of project


PERT analysis does not
schedules & minimization.
usually consider costs.
Methodology Involved in Network
Analysis
Describing the Project

Diagramming the network

Estimating the time of completion

Deterministic
estimates

Probabilistic
estimates

Monitoring the project progress


Advantages
• Planning & controlling projects
• Flexibility
• Designation of responsibilities
• Achievement of objective with least cost
• Better managerial control
Limitations of PERT /CPM
• Network diagrams should have clear starting
& ending points, which are independent of
each other which may not be possible in real
life.
• Another limitation is that it assumes that
manager should focus on critical activities.
• Resources will be available when needed for
completion for an activity is again unreal.
Difficulties
• Difficulty in securing realistic time
estimates.
• The planning & implementation of
networks requires trained staff.
• Developing clear logical network is
troublesome.
Key terminology
• Activity : All projects may be viewed as composed of
activities. It is the smallest unit of work consuming both
time& resources that project manager should schedule &
control.
• An activity is represented by an arrow in network diagram

The head of the arrow shows


sequence of activities.

i j
activity
Event Event
start finish
Classification of activities
• Predecessor activity: Activities that must be completed
immediately prior to the start of another activity are
called predecessor activities.
• Successor activity : activities that cannot be started until
one or more of other activities are completed but
immediately succeed them are called successor activities.
• Concurrent activities: activities that can be accomplished
together are known as concurrent activities.
• Dummy activity: An activity which does not consume any
resource but merely depicts the dependence of one
activity on other is called dummy activity. It is introduced
in a network when two or more parallel activities have the
same start and finish nodes.
Event
• The beginning & end of an activities are called as
events .
• Events are represented by numbered circles called
nodes.

i j

Event Event
start finish
Types of Events
• Merge event

• Burst event

• Merge & Burst Event


Path & Network
• An unbroken chain of activity arrows
connecting the initial event to some other
event is called a path.
• A network is the graphical representation of
logically & sequentially connected arrows &
nodes representing activities & events of a
project . It is a diagram depicting precedence
relationships between different activities.
Guidelines for Network Construction
• A complete network diagram should have one start point & one
finish point.
• The flow of the diagram should be from left to right.
• Arrows should not be crossed unless it is completely
unavoidable.
• Arrows should be kept straight & not curved or bent.
• Angle between arrows should as large as possible.
• Each activity must have a tail or head event. No two or more
activities may have same tail & head events.
• Once the diagram is complete the nodes should be numbered
from left to right. It should then be possible to address each
activity uniquely by its tail & head event.
Dependency Relationship
Errors in network logic
• Looping : looping is
known as cycling error
and creates an impossible
situation and it appears
that none of the activities
could ever be completed.

• Dangling : sometimes a
project network includes
an activity which does
not fit into the end
objective of the project
and is carried out without
any result related with
completion of the project
. Such an error in network
is called dangling
Example 1- A simple network
Consider the list of four activities for making a simple product:

Activity Description Immediate


predecessors
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C

Immediate predecessors for a particular activity are the activities


that, when completed, enable the start of the activity in question.

Scheduling, PERT, Critical Path


Chapter 8 29
Analysis
Sequence of activities

• Can start work on activities A and B anytime, since


neither of these activities depends upon the
completion of prior activities.
• Activity C cannot be started until activity B has been
completed
• Activity D cannot be started until both activities A and
C have been completed.
• The graphical representation (next slide) is referred to
as the PERT/CPM network

Scheduling, PERT, Critical Path


Chapter 8 30
Analysis
Network of Four Activities

Arcs indicate project activities

A D
1 3 4

B C

Nodes correspond to the beginning


and ending of activities

Scheduling, PERT, Critical Path


Chapter 8 31
Analysis
Example 2

Activity Predecessor
activity
A none

B none

C A

D A

E B

F C

G D&E
Example 2

Activity Predecessor
activity C
A none 2 4 F
A
B none
D
C A 1
6
D A
B
3 G
E B 5
E
F C

G D&E
Example 3

Activity Predecessor
activity
A none

B A

C A

D B

E C

F D ,E
3 D
B
A F
5 6
1 2

C
4 E
Example 4
Develop the network for a project with following activities and
immediate predecessors:
Activity Immediate
predecessors
A -
B -
C B
D A, C
E C
F C
G D,E,F
Try to do for the first five (A,B,C,D,E) activities

Scheduling, PERT, Critical Path


Chapter 8 36
Analysis
Network of first five activities

A D
1 3 4

E
B

C 5

2
We need to introduce
a dummy activity

Scheduling, PERT, Critical Path


Chapter 8 37
Analysis
Network of Seven Activities
1 A 3 D 4 G
7
dummy E
B
C 5 F
2 6

•Note how the network correctly identifies D, E, and F as the


immediate predecessors for activity G.

•Dummy activities is used to identify precedence relationships


correctly and to eliminate possible confusion of two or more
activities having the same starting and ending nodes

•Dummy activities have no resources (time, labor, machinery, etc) –


purpose is to PRESERVE LOGIC of the network
Scheduling, PERT, Critical Path
Chapter 8 38
Analysis
EXAMPLES OF THE USE OF DUMMYACTIVITY
Network concurrent activities
a
a 2

1 2 1 Dummy

b 3
b
WRONG!!! RIGHT 

Activity c not WRONG !


required for e
a
a e
d
1
b 1 b
e
d
c
2
c
WRONG
RIGHT
!!!

RIGHT 

Scheduling, PERT, Critical Path


Chapter 8 39
Analysis
WRONG!!! RIGHT!!!

a d a d
1 1

b e b
2 2 4
e

c f c f
3 3

a precedes d.
a and b precede e,
b and c precede f (a does not precede f)

Scheduling, PERT, Critical Path


Chapter 8 40
Analysis
Float : There are many activities where the maximum
time available to finish the activity is more than the time
required to complete the activity. The difference between
the two times is known as float available for the activity.

There are three types of float:


Total float : It is the spare time available when all
preceding activities occur at earliest possible times & all
successding activities occur at latest possible times.
Total float = Ls – Es or Lf – Ef
• Free float : time available when all preceding
activities occur at the earliest possible time &all
succeeding activities also occur at the earliest possible
times.
• Free float = total float - head event slack
• Independent Float : it may be defined as the
amount of time by which the start of an activity can
be delayed without affecting the earliest start time
of any successor activity , assuming that preceding
activity has finished at its latest finish time.
• Independent Float = free float – tail event slack
Critical path
• Those activities which contribute directly to the overall duration of the
project constitute critical activities, the critical activities form a chain
running through the network which is called critical path.

• Critical event : the slack of an event is the difference between the latest &
earliest events time. The events with zero slack time are called as critical
events.

• Critical activities : The difference between latest start time & earliest start
time of an activity will indicate amount of time by which the activity can
be delayed without affecting the total project duration. The difference is
usually called total float. Activities with 0 total float are called as critical
activities
Critical path
• The critical path is the longest path in the network from the starting event
to ending event & defines the minimum time required to complete the
project.

• The critical path is denoted by darker or double lines.


Scheduling with activity time
Activity Immediate Completion
predecessors Time (week)
A - 5
B - 6
C A 4
D A 3
E A 1
F E 4
G D,F 14
H B,C 12
I G,H 2
Total …… 51

This information indicates that the total time required to complete


activities is 51 weeks. However, we can see from the network that several
of the activities can be conducted simultaneously (A and B, for example).

Scheduling, PERT, Critical Path


Chapter 8 45
Analysis
Earliest start & earliest finish time
• We are interested in the longest path through the
network, i.e., the critical path.

• Starting at the network’s origin (node 1) and using a


starting time of 0, we compute an earliest start (ES) and
earliest finish (EF) time for each activity in the network.

• The expression EF = ES + t can be used to find the earliest


finish time for a given activity.
For example, for activity A, ES = 0 and t = 5; thus the
earliest finish time for activity A is
EF = 0 + 5 = 5

Scheduling, PERT, Critical Path


Chapter 8 46
Analysis
Arc with ES & EF time
EF = earliest finish time

ES = earliest start time

Activity

1
t = expected activity
time

Scheduling, PERT, Critical Path


Chapter 8 47
Analysis
Network with ES & EF time
D[5,8] 5
2 3

7
4

1 6

Earliest start time rule:


The earliest start time for an activity leaving a particular node is equal to
the largest of the earliest finish times for all activities entering the node.

Scheduling, PERT, Critical Path


Chapter 8 48
Analysis
Activity, duration, ES, EF, LS, LF
EF = earliest finish time

ES = earliest start time

Activity

2
LF = latest finish time
LS = latest start time

Scheduling, PERT, Critical Path


Chapter 8 49
Analysis
Latest start & latest finish time
• To find the critical path we need a backward pass calculation.

• Starting at the completion point (node 7) and using a latest


finish time (LF) of 26 for activity I, we trace back through the
network computing a latest start (LS) and latest finish time
for each activity

• The expression LS = LF – t can be used to calculate latest start


time for each activity. For example, for activity I, LF = 26 and t
= 2, thus the latest start time for activity I is
LS = 26 – 2 = 24

Scheduling, PERT, Critical Path


Chapter 8 50
Analysis
Network with LS & LF time

D[5,8] 5
2 3[7,10]

7
4

1 6

Latest finish time rule:


The latest finish time for an activity entering a particular node is equal to
the smallest of the latest start times for all activities leaving the node.

Scheduling, PERT, Critical Path


Chapter 8 51
Analysis
Slack or Free Time or Float
Slack is the length of time an activity can be delayed without affecting the
completion date for the entire project.
For example, slack for C = 3 weeks, i.e Activity C can be delayed up to 3
weeks
3
(start anywhere between weeks 5 and 8).
2
ES LS EF LF
5 8 9 12

LF-EF = 12 –9 =3

LS-ES = 8 – 5 = 3

LF-ES-t = 12-5-4 = 3

Scheduling, PERT, Critical Path


Chapter 8 52
Analysis
Activity schedule for our example
Activity Duration Earliest Latest Earliest Latest Slack Critical
start (ES) start (LS) finish finish (LS-ES) path
(EF) (LF)

A 5 0 0 5 5 0 Yes
B 6 0 6 6 12 6
C 4 5 8 9 12 3
D 3 5 7 8 10 2
E 1 5 5 6 6 0 Yes
F 4 6 6 10 10 0 Yes
G 14 10 10 24 24 0 Yes
H 12 9 12 21 24 3
I 2 24 24 26
Scheduling, PERT, Critical Path
26 0 Yes
Chapter 8 53
Analysis
IMPORTANT QUESTIONS
• What is the total time to complete the project?
– 26 weeks if the individual activities are completed on schedule.

• What are the scheduled start and completion times for each activity?
– ES, EF, LS, LF are given for each activity.

• What activities are critical and must be completed as scheduled in order to


keep the project on time?
– Critical path activities: A, E, F, G, and I.

• How long can non-critical activities be delayed before they cause a delay in
the project’s completion time
– Slack time available for all activities are given.

Scheduling, PERT, Critical Path


Chapter 8 54
Analysis
Importance of Float (Slack) and Critical Path

1. Slack or Float shows how much allowance each


activity has, i.e how long it can be delayed without
affecting completion date of project
2. Critical path is a sequence of activities from start to
finish with zero slack. Critical activities are
activities on the critical path.
3. Critical path identifies the minimum time to
complete project
4. If any activity on the critical path is shortened or
extended, project time will be shortened or
extended accordingly
Importance of Float (Slack) and Critical Path (cont)

5. So, a lot of effort should be put in trying to control


activities along this path, so that project can meet
due date. If any activity is lengthened, be aware
that project will not meet deadline and some action
needs to be taken.
6. If can spend resources to speed up some activity, do
so only for critical activities.
7. Don’t waste resources on non-critical activity, it will
not shorten the project time.
8. If resources can be saved by lengthening some
activities, do so for non-critical activities, up to limit
of float.
9. Total Float belongs to the path
Problem 2
• For forward pass observe no. of incoming
E= EARLIEST START TIME arrows for the particular node
L= LATEST FINISH TIME • For backward pass observe no. of outgoing
arrows for the particular node.
Problem 3
• For forward pass observe no. of incoming
arrows for the particular node
• For backward pass observe no. of outgoing
arrows for the particular node.
Problem 4
Problem 5

Total Float= It is the difference between maximum time available to perform


the activity and the activity duration.

Free Float: It is the time by which completion of an activity can be delayed


without delaying its immediate successor activities.

Independent Float= It is the time by which an activity can be delayed for


start without affecting immediate preceding activities.

Interfering Float= it refers to that portion of an activity float which can not
be consumed without adversely affecting the floats of the subsequent
activities.
Free float = total float - head
event slack
Independent Float = free float –
tail event slack
Interfering Float= Total Float –
Free Float
Problem 6
Problem 7
PERT
PERT is designed for scheduling complex projects that involve
many inter-related tasks. it improves planning process
because:

1. It forms planner to define the projects various components


activities.
2. It provides a basis for normal time estimates & yet allows for
some measure of optimism or pessimism in estimating the
completion dates.
3. It shows the effects of changes to overall plans they
contemplated.
4. It provides built in means for ongoing evaluation of the plan.
ESTIMATING ACTIVITY TIMES
• Optimistic time ( t0 ) : is that time estimate of an activity
when everything is assumed to go as per plan. In other
words it is the estimate of minimum possible time which an
activity takes in completion under ideal conditions.

• Most likely time ( tm ) : the time which the activity will take
most frequently if repeated number of times.

• Pessimistic time ( tp) : the unlikely but possible


performance time if whatever could go wrong , goes wrong
in series. In other words it is the longest time the can take.
EXPECTED TIME
• The times are combined statically to develop the expected
time te .

te = to + 4tm + tp
6

Standard deviation of the time of the time required to


complete the project
= tp - to
6
STEPS INVOLVED IN PERT
• Develop list of activities.
• A rough network for PERT is drawn.
• Events are numbered from left to right.
• Time estimates for each activity are obtained.
• Expected time for each activity is calculated : to+4tm+tp / 6
• Using these expected times calculate earliest & latest finish &
start times of activities.
• Estimate the critical path.
• Using this estimate compute the probability of meeting a
specified completion date by using the standard normal equation
Z = Due date – expected date of completion
standard deviation of critical path
Problem 1
Activity Predeces Optimistic Most Pessimistic
(to) likely (tp)
sor (tm)
activity
A - 2 3 10
B - 2 3 4
C A 1 2 3
D A 4 6 14
E B 4 5 12
F C 3 4 5
G D,E 1 1 7
Network with LS & LF time

4
2

1 G 6
5 2

3
Expected time
Activity Te = to +4tm+tp
6

A(1-2) 4
B(1-3) 3
C(2-4) 2
D(2-5) 7
E(3-5) 6
F(4-6) 4
G(5-6) 2

CRITICAL PATH : 1-2-5-6 or A-D-G


activit te Es Ef = LS = Lf Total Free Indepe
y Es +te Lf -te float float ndent
float

1-2 4 0 4 0 4 0 0 0
1-3 3 0 3 2 5 2 0 0
2-4 2 4 6 7 9 3 0 0
2-5 7 4 11 4 11 0 0 0
3-5 6 3 9 5 11 2 2 0
4-6 4 6 10 9 13 3 3 0
5-6 2 11 13 11 13 0 0 0

Total float = Ls – Es or Lf – Ef

Free float = total float - head


event slack
Independent Float = free float – tail
event slack
Problem 2
JOB OPTIMISTIC MOST PESSIMISTIC
LIKELY

1-2 1 4 7
1-3 5 10 15
2-4 3 3 3
2-6 1 4 7
3-4 10 15 26
3-5 2 4 6
4-5 5 5 5
5-6 2 5 8
1. Draw the network &find expected project completion time.
2. What is the probability that it would be completed in 41 days.
Variance of critical path
Activity To Tp variance

1-3 5 15 2.77
3-4 10 26 7.11
4-5 5 5 0
5-6 2 8 1
Total=
10.88
So, standard deviation = 3.30
Probability for completing the job in 41 days.
Z = DUE DATE – EXPECTED DATE OF COMPLETION
S.D. OF CRITICAL PATH
= 41 – 36
3.30
= 1.51
The tabulated value of corresponding to calculated value
i.e. 1.51 is .4345
So probability is .5 + .4345 = .9345 i.e. 93.45% that
project will be completed on 41 day.
Problem 3
activity Preceding to tm tp
activity
A - 2 3 10
B - 2 3 4
C A 1 2 3
D A 4 6 14
E B 4 5 12
F C 3 4 5
G D,E 1 1 7
• Find the expected duration and
variance of each activity.
• What is the expected project
length?
• Calculate the variance &standard
deviation of the project length.
activity to Tm tp te variance

A 2 3 10 4 16/9
B 2 3 4 3 1/9
C 1 2 3 2 1/9
D 4 6 14 7 25/9
E 4 5 12 6 16/9
F 3 4 5 4 1/9
G 1 2 7 2 1
Various paths &expected project length
A-C-F = 4+2+4 = 10
A-D-G = 4+7+2 = 13 CRITICAL PATH
B-E-G = 3+6+2 = 11
Thus critical path is A-D-G with an expected length of 13
days. Hence the expected project length is 13 days.
Project variance = 16/9 + 25/9 + 1 = 50/9
PERT For Dealing With Uncertainty
• So far, times can be estimated with relative certainty, confidence

• For many situations this is not possible, e.g Research, development,


new products and projects etc.

• Use 3 time estimates


m= most likely time estimate, mode.
a = optimistic time estimate,
b = pessimistic time estimate, and

Expected Value (TE) = (a + 4m + b) /6


Variance (V) = ( ( b – a) / 6 ) 2
Std Deviation (δ) = SQRT (V)

Scheduling, PERT, Critical Path


Chapter 8 113
Analysis
Precedences And Project Activity Times
Immediate Optimistic Most Likely Pessimistic EXP Var S.Dev
Activity Predecessor Time Time Time TE V 

a - 10 22 22 20 4 2
b - 20 20 20 20 0 0
c - 4 10 16 10 4 2
d a 2 14 32 15 25 5
e b,c 8 8 20 10 4 2
f b,c 8 14 20 14 4 2
g b,c 4 4 4 4 0 0
h c 2 12 16 11 5.4 2.32
I g,h 6 16 38 18 28.4 5.33
j d,e 2 8 14 8 4 2

Scheduling, PERT, Critical Path


Chapter 8 114
Analysis
The complete network

d 6
2
(15,25)
j
a (8,4)
(20,4) e
(10,4)
1 f 7
3
b (14,4)
(20,0)
g
c
(4,0)
(10,4) i
(18,28.4)
h 5
4
(11,5.4)

Scheduling, PERT, Critical Path


Chapter 8 115
Analysis
Figure 8-13 The complete Network

EF=20 35
d 6
2
a (15,25) j
(20,4) (8,4)
b e
20 43
(20,0) (10,4)
f CRIT. TIME = 43
1 3 7
(14,4)
g
c (4,0)
(10,4) i
(18,28.4)
h 5
4
(11,5.4)
10 24

Scheduling, PERT, Critical Path


Chapter 8 116
Analysis
Critical Path Analysis (PERT)
Activity LS ES Slacks Critical ?
a 0 0 0 Yes

b 1 0 1

c 4 0 4

d 20 20 0 Yes

e 25 20 5

f 29 20 9

g 21 20 1

h 14 10 4

i 25 24 1

j 35 35 0 Yes

Scheduling, PERT, Critical Path


Chapter 8 117
Analysis
Assume, PM promised to complete the project in the fifty days.
What are the chances of meeting that deadline?
Calculate Z, where

Z = (D-S) / V
Example,
D = 50; S(Scheduled date) = 20+15+8 =43; V = (4+25+4) =33
Z = (50 – 43) / 5.745
= 1.22 standard deviations.

The probability value of Z = 1.22, is 0.888

1.22

Scheduling, PERT, Critical Path


Chapter 8 118
Analysis
What deadline are you 95% sure of meeting

Z value associated with 0.95 is 1.645

D = S + 5.745 (1.645)
= 43 + 9.45
= 52.45 days

Thus, there is a 95 percent chance of finishing the project by 52.45


days.

Scheduling, PERT, Critical Path


Chapter 8 119
Analysis
Comparison Between CPM and PERT
CPM PERT
1 Uses network, calculate float or slack,
identify critical path and activities, Same as CPM
guides to monitor and controlling
project
2 Uses one value of activity time Requires 3 estimates of activity time
Calculates mean and variance of time

3 Used where times can be estimated Used where times cannot be estimated
with confidence, familiar activities with confidence.
Unfamiliar or new activities

4 Minimizing cost is more important Meeting time target or estimating


percent completion is more important

5 Example: construction projects, Example: Involving new activities or


building one off machines, ships, etc products, research and development
etc

Scheduling, PERT, Critical Path


Chapter 8 120
Analysis
BENEFITS OFCPM / PERT NETWORK

Consistent framework for planning, scheduling, monitoring,


and controlling project.

• Shows interdependence of all tasks, work packages, and


work units.

• Helps proper communications between departments and


functions.

• Determines expected project completion date.

• Identifies so-called critical activities, which can delay the


project completion time.

Scheduling, PERT, Critical Path


Chapter 8 121
Analysis
BENEFITS OFCPM / PERT NETWORK (cont.)

• Identified activities with slacks that can be delayed for specified


periods without penalty, or from which resources may be
temporarily borrowed

• Determines the dates on which tasks may be started or must be


started if the project is to stay in schedule.

• Shows which tasks must be coordinated to avoid resource or


timing conflicts.

• Shows which tasks may run in parallel to meet project


completion date

Scheduling, PERT, Critical Path


Chapter 8 122
Analysis

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