Tutorial 3 – Project Network Model (CPM & PERT)

1. A company is in the process of preparing a budget for launching a new product. The following table
provides the associated activities and their durations.

Activity Predecessor(s) Duration (days)

A: Forecast sales volume - 10
B: Study competitive market - 7
C: Design item and facilities A 5
D: Prepare production schedule C 3
E: Estimate cost of production D 2
F: Set sales price B, E 1
G: Prepare budget E, F 14

a) Construct the project network.

b) Determine ES, EF, LS and LF and slack time for each activity.
c) Determine the critical path and the project completion time.

2. Indah Corp has undertaken a project that involves eleven main activities. For easy reference, the
activities are names A to L. The management team has identified the immediate predecessor
activity/activities and estimated times for each activity. The information summary is given in the
table below:

Time (weeks)
Activity Immediate Activity
Optimistic Most likely Pessimistic
A - 8 13 18
B - 6 8 10
C A 2 4 6
D B 8 11 14
E C 7 10 13
F E 4 6 8
G C 4 12 20
H D, F, G 4 6 8
I E 6 9 12
J H 3 4 5
K I, J 2 4 6

a) Draw a network diagram to represent the project.

b) Compute the expected times and variance for each activity time.
c) What is the expected completion time for project and the associated critical path?
d) Calculate the variance in the expected completion time for the project.
e) Find the probability that the project will be completed within 43 weeks.
f) What will happen to the project duration and the critical path if activity D is delayed by 2 weeks?