ACC 115| Management Science

Module #8 Teacher’s Guide

Lesson title: Project Scheduling Techniques Materials:

Learning Targets: Pen and non-scientific calculator
At the end of this module, you should be able to: Strategic Cost Management by Cabrera
1. Construct a Gantt Chart.
2. Determine the critical path of a project. References:
3. www.researchgate.net
www.srividyaengg.ac.in
www.slideshare.net
www.netmba.com

A. LESSON PREVIEW/REVIEW
Introduction
Project Scheduling is an activity that distributes the estimated effort across the planed project
duration by allocating the effort to specific tasks. The project scheduling techniques that will be
featured in this course is the Bar/Gantt Chart, the Program Evaluation Review Technique (PERT)
and Critical Path Method (CPM).
The bar chart was originally developed by Henry L. Gantt, an American mechanical engineer,
in 1917 and is alternatively called a Gantt chart. It quickly became popular—especially in the
construction industry—because of its ability to graphically represent a project’s activities in a clear,
simple, and time-scaled manner.
The Program Evaluation and Review Technique (PERT) is a network model that allows for
randomness in activity completion times. PERT, which was developed in the late 1950, has the
potential to reduce both the time and cost required to complete a project. In 1957 the Critical Path
Method (CPM) was developed as a network model for project management. CPM is a deterministic
method that uses a fixed time estimate for each activity.

B. MAIN LESSON
Content Notes and Skill Building

Lesson Objective 1
Gantt (Bar) Chart
Gantt charts are a project planning tool that can be used to represent the timing of tasks
required to complete a project. Because Gantt charts are simple to understand and easy to construct,
they are used by most project managers for all but the most complex projects.
In a Gantt chart, each task takes up on row. Dates run along the top in increments of days,
weeks or months, depending on the total length of the project. The expected time for each task is
represented by a horizontal bar whose left end marks the expected beginning of the task and whose
right end marks the expected completion date. Tasks may run sequentially, in parallel* or overlapping.
As the project progresses, the chart is updated by filling in the bars to a length proportional to
the fraction of work that has been accomplished on the task. This way, one can get a quick reading of
project progress by drawing a vertical line through the chart at the current date. Completed tasks lie to
the left of the line and are completely filled in. Current tasks cross the line and are behind schedule if
their filled-in section is to the left of the line and ahead of schedule if the filled-in section stops to the
right of the line. Future tasks lie completely to the right of the line.

*parallel – an activity that can be performed simultaneously with another activity

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Module #8 Teacher’s Guide

Example of a Gantt Chart

Lesson Objective 2
Program Evaluation Review Technique (PERT) and Critical Path Method (CPM)

Program (Project) Evaluation and Review Technique (PERT) is a project management tool used to
schedule, organize, and coordinate tasks within a project. It is basically a method to analyze the tasks
involved in completing a given project, especially the time needed to complete each task, and to identify
the minimum time needed to complete the total project. PERT planning involves the following steps:

Step 1: Identify the specific activities and milestones. The activities are the tasks required to complete
a project. The milestones are the events marking the beginning and the end of one or more activities. It
is helpful to list the tasks in a table that in later steps can be expanded to include information on
sequence and duration.

Step 2: Determine the proper sequence of the activities. This step may be combined with the activity
identification step since the activity sequence is evident for some tasks. Other tasks may require more
analysis to determine the exact order in which they must be performed.

Step 3: Estimate the time required for each activity. Weeks are a commonly used unit of time for
activity completion, but any consistent unit of time can be used. A distinguishing feature of PERT is its
ability to deal with uncertainty in activity completion time. For each activity, the model usually includes
three time estimates:

 Optimistic time – generally the shortest time in which the activity can be completed.

 Most likely time – the completion time having the highest probability. Note that this time is
different from the expected time.

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Module #8 Teacher’s Guide

 Pessimistic time – the longest time that an activity might require.


Where:
O = Optimistic time
M = Most likely time
P = Pessimistic time

Step 4: Construct a network diagram. Using the activity sequence information, a network diagram can
be drawn showing the sequence of the serial and parallel activities. Each activity represents a node in
the network, and the arrows represent the relation between activities.

Step 5: Determine the critical path. The critical path is determined by adding the times for the activities
in each sequence and determining the longest path in the project. The critical path determines the total
calendar time required for the project.
Step 6 (if necessary): Update the PERT chart as the project progresses. Make adjustments in the
PERT chart as the project progresses. As the project unfolds, the estimated times can be replaced with
actual times. In cases where there are delays, additional resources may be needed to stay on schedule
and the PERT chart may be modified to reflect the new situation.

Illustration:
In the following illustration, it is assumed that the project manager knows the succession of the project
activities and the optimistic, pessimistic and steps 1 – 3 are already performed.

Most
Optimistic Pessimistic Expected
Activity Description Predecessors likely
time (0) time (P) time
time (M)
Select
administrative
A - 9 15 12 12
and medical
staff.
Select site and
B - 5 13 9 9
do site survey.
Select
C A 8 12 10 10
equipment.
Prepare final
construction
D B 7 17 9 10
plans and
layout.
Bring utilities to
E B 18 34 23 24
the site.
Interview
applicants and
F fill positions in A 9 15 9 10
nursing support
staff,

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Module #8 Teacher’s Guide

maintenance,
and security.

Purchase and
G take delivery of C 30 40 35 35
equipment.
Construct the
H D 35 49 39 40
hospital.
Develop an
I information A 12 18 15 15
system.
Install the
J E, G, H 3 9 3 4
equipment.
Train nurses and
K F, I, J 7 11 9 9
support staff

Note: The expected time is calculated using the equation:

( )
Example: In Activity A, = 12

Step 4 (Construct a network diagram). Once constructed, the network diagram will look like this:

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Module #8 Teacher’s Guide

Step 5 (Determine the critical path). To determine the critical path, we have to determine all the
available paths from start to finish and add all the time spent on these paths.

Start  A (12)  I (15) K (9)  Finish = 36

Start  A (12)  F (10)  K (9)  Finish = 31

Start  A (12)  C (10)  G (35)  J (4)  K (9) Finish = 70

Start  B (9)  D (10)  H (40)  J (4)  K (9) Finish = 72

Start  B (9)  E (24)  J (4)  K (9) Finish = 46

The critical path is defined as longest path in the project. Thus, the critical path in the project is
Start  B (9)  D (10)  H (40)  J (4)  K (9) Finish = 72
 Crashing – project crashing is the method for shortening the project duration by reducing the
time of one or more critical activities to less than their normal time. It is achieved by devoting
more resources resulting to increase in cost.
Example: Performing overtime work is an example of crashing. It can shorten the number of
days required to finish the project but will result to increase in cost due to overtime pay.

 Slack – the amount of time that can be added to an activity without increasing the total time
required on the critical path
– length of time an activity can be delayed without forcing a delay for the entire project
Example: Assuming that the time in the problem above is referring to number of days, the
shortest amount of time to finish the project is 31 days. On the other hand, the longest amount
of time to finish the project is 72 days. The slack time between the shortest and the longest
amount of time to finish the project is 41 days (72 – 31).

Skill-building Activities

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Module #8 Teacher’s Guide

Required:
1. Identify all the paths in the network.
2. Determine the critical path.
3. Determine the float (slack) for each path.

Check your answers against the Key to Corrections found at the end of this SAS. Be sure to complete
each activity before looking. Write your score on your paper.

Check for Understanding

Optimistic Most Likely Pessimistic Expected
Activity
time (0) time (M) Time (P) Time
A 10 12 8
B 7 9 13
C 16 9 9.5
D 8 4 7.5
E 15 11 12.5
F 18 19 17.5
G 15 13 9.5
H 17 10 16.5
I 13 9 11
J 10 14 9
Required: Fill in the blank.

C. LESSON WRAP-UP

Thinking about Learning (5 mins)

How do you feel today?

I feel (unsatisfactory/satisfactory/excellent) because_________________________________________
__________________________________________________________________________________

What are your challenges in learning the concepts in this module? If you do not have challenges, what
is your best learning for today?
__________________________________________________________________________________
_______________________________________________________________________________

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Module #8 Teacher’s Guide

What are the questions/thoughts you want to share to your teacher today?
__________________________________________________________________________________
_______________________________________________________________________________

ANSWER KEY
Skill Building Activity
1.a. Start  A  B  C End (duration: 31 days.)
b. Start D  E  F  End (duration: 18 days.)
c. Start  D  B  C  End (duration: 26 days.)
d. Start  G  H  I  End (duration: 13 days.)
e. Start  G  E  F  End (duration: 16 days.)

2. a. Start  A  B  C  End (31 days)

3. a. No slack because it is the critical path.

b. 31 – 18 = 13 days
c. 31- 26 = 5 days
d. 31 – 13 = 18 days
e. 31 – 16 = 15 days

Check for Understanding

Optimistic Most Likely Pessimistic Expected

Activity
time (0) time (M) time (P) Time
A 10 12 8 11
B 7 15.5 9 13
C 16 9 5 9.5
D 9 8 4 7.5
E 15 11 16 12.5
F 14 18 19 17.5
G 15 13 9.5 12.75
H 17 18 10 16.5
I 13 11 9 11
J 10 14 9 12.5

ADDITIONAL NOTES FOR TEACHERS

In this portion, you may include:

● Additional exercises that teachers may give to students during face-to-face classes or
during remote coaching sessions
● Additional reading materials or references that teachers may use
● Instructions for activities during face-to-face classes
● Answer Keys for quizzes and exams

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