Module 2.

0: PERT CPM
PERT – CPM:
Project Evaluation Review Technique – Critical Path Method

PERT – Project Evaluation Review Technique

- Is a method of planning and controlling non – repetitive project - jobs that
have not been done before and will not be done again in the same manner.
- Purpose:
To minimize production delays, interruptions, and conflicts; of coordinating
and synchronizing the various part of overall job; and of expecting the
completion of the project.
Project managers rely on PERT/CPM to help them answer questions such as:
1. What is the total time to complete the project?
2. What are the scheduled start and finish dates for each specific activity?
3. Which activities are critical and must be completed exactly as scheduled to
keep the project on schedule?
4. How long can non – critical activities be delayed before they cause an
increase in the project completion time?
Note:
To be able to understand and elaborate more the concept of PERT – CPM, we must
understand the concept of “Project Network”.

Project Network
- A model that can be constructed to the precedence of the activities.
- “Precedence” – means the priority, importance, or significance.
- Is a network of numbered circles connected by arrows.
- A critical path for the network is a path consisting of activities with zero slack.
Parade Float
- Parade Float is the business of building elaborate parade floats. The company
have a new float to build and want to use PERT/CPM to help them manage
the project.

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM
Important Terms:
1. Earliest Start (ES) – earliest time at which an activity can start, assuming all
predecessors have been completed.
2. Earliest Finish (EF) – earliest time at which an activity can be finished.
3. Latest Start (LS) – latest time at which an activity can start so as not to delay
the completion time of the entire project.
4. Latest Finish (LF) – latest time by which an activity must finish so as not to
delay the completion time of the entire project.
5. Slack time – length of time activity can be delayed without delaying the entire
project. (LS - ES) or (LF - EF)

EXAMPLE 1
Building a Parade Float
ACTIVITY DESCRIPTION IMMEDIATE PREDECESSOR COMPLETION
TIME (In Days)
A Initial Paperwork None 3
B Build Body A 3
C Build Frame A 2
D Finish Body B 3
E Finish Frame C 7
F Finish Paperwork B, C 3
G Mount the body to frame D, E 6
H Install skirt on frame C 2

Step 1: Create a Project Network

Step 2: Make a Forward Pass
Step 3: Make a Backward Pass
Step 4: Calculate the slack time for each activity and determine the critical path

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM
Step 1: Create a Project Network

Step 2: Make a Forward Pass

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM

Step 3: Make a Backward Pass

Step 4: Calculate the slack time for each activity and determine the critical path
Slack Time = (Latest Start) - (Earliest Start) or
= (Latest Finish) - (Earliest Finish)

ACTIVITY SLACK TIME

ACTIVITY Late Early Late Early SLACK CRITICAL?

Start Start Finish Finish
(LS) (ES) (LF) (EF)
A 0 0 3 3 0 Yes
B 6 3 9 6 3 No
C 3 3 5 5 0 Yes
D 9 6 12 9 3 No
E 5 5 12 12 0 Yes
F 15 6 18 9 9 No
G 12 12 18 18 0 Yes
H 16 5 18 7 11 No

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM

Determining the Critical Path

• A critical path is a path of activities, from the Start node to the Finish node,
with zero (0) slack times.
• Critical Path: A – C – E – G
• The project completion time equals the maximum of the activities’ earliest
finish times.
• Project Completion Time: 18 DAYS

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM
EXAMPLE 2

ACTIVITIES IMMEDIATE COMPLETION TIME

PREDECESSOR (HOURS )
A NONE 1
B NONE 2
C NONE 3
D A, B 4
E A, B 5
F B, C 5
G B, C 6
H D, E, F 6
I D, E, F 7
J H, I 7
K G 8
L G 9
M K, L 5

REQUIRED:
Determine the Critical Path & Project Completion Time for this set of activities

SOLUTION:

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER
 Module 2.0: PERT CPM
QUIZZER 2
TT Company
Building a Parade Float
ACTIVITY IMMEDIATE PREDECESSOR COMPLETION TIME
(In Hours)
A None 6
B None 4
C A 3
D A 5
E A 1
F B, C 4
G B, C 2
H E, F 6
I E, F 5
J D, H 3
K G, I 5

Required:
1. Draw a Network Diagram
2. Determine the optimum completion time
3. Find the slack and critical path
ACTIVITY Late Early Late Early SLACK CRITICAL?
Start Start Finish Finish
(LS) (ES) (LF) (EF)
A
B
C
D
E
F
G
H
I
J
K

CRITICAL PATH: ___________________________

PROJECT COMPLETION TIME: _______________

Author: Mr. Tyron C. Taylo

DEPARTMENT OF MANAGEMENT - BM CLUSTER