Net Work Analysis: PERT/CPM

• Network is technical sequencing or schedule

of problem concerning of minimizing the total
time to complete the project or total cost or
something like that by enhancing the project’s
efficiency. It is useful to analyses the complex
situation, designing, planning, coordination,
controlling, taking decision.
• Networks are composed of events and activities.
An event is defined as the starting or ending point
for a group of activities and an activity is the work
required to proceed from one event or point in
time to another. Project implementation involves
numerous activities (project components) by
employing various resources such as men,
materials, machine, money, and time. The
activities of a project have inter-relationships
arising from physical, technical and other
considerations.
Network: there are two basic network
techniques: PERT and CPM.
The common characteristics of these networks
are
• The project can be broken down into a well-
defined set of jobs or activities.
• The activities must be performed in a certain
sequence which is technologically ordered.
• Within a defined sequence, the activities may
be started and stopped in an independent
manner.
• Activity: an activity is a definite task, job, or function to
be performed in a project. An activity is represented by
an arrow. The head of the arrow marks the completion
of the activity and the tail of the arrow marks its
beginning.
• Event: an event is a specific point in time indicating the
beginning or end of one or more activities. It
represents a milestone and does not consume time or
resources.
Certain statistics must be known for PERT analysis. They
are
Schedule of each activities and also before starting of
activities.
Time span to complete the project’s activities.
 Program Evaluation and Review Technique
(PERT)
• PERT was originally developed to facilitate the
planning and scheduling of the Polaris Fleet
Ballistic Missile Project of the U.S.
government. The project is designed to handle
risk and uncertainties. It is suitable for
research and development programmes,
aerospace projects, and other projects
involving new technology. In such project time
required for completing various jobs or
activities can be highly variable. Hence the
orientation of PERT is ‘probabilistic’.
• PERT was originally developed as a technique
for evaluating established plans and
schedules, but its utility is not limited to this.
PERT can also be used as a planning and
scheduling techniques. It is also called
multiple time estimates. The PERT technique
for estimating elapsed times provides a way of
handling some of the uncertainties in
estimating the time required to perform many
types of activities.
• PERT is; use statistical analysis, time span to complete
project activities may not fixed. It is analyses by three
ladder
• Most optimistic time (to): the shortest time to
complete the project in general time period or no
obstacle to run the project.
• Most pessimistic time (tp): long gestation time to
complete the project due to the unusual activities.
• Most likely time (tm): the appropriate time to complete
the project in general condition.
The expected time is calculated on the basis of above
three points: te = (to+ tp + tm )/6
 Critical Path Method (CPM)
• CPM is a networking technique for planning and managing
projects. It is the sequence of critical activities from project
start to project finish that determine the shortest project
duration. It is useful to identifies critical activities which
require special attention from management, to assists in
estimating the minimum total time needed to complete the
project,
• CPM is one method, which requires a database of cost time
relationships to implement. Basically, such known
relationship utilizes for individual activities as a basis for
reallocating resources among activities. The known cost
time relationship is an unrealistic requirement in the case
of most complex projects. Since no such database usually
exists. However, it is taken to assume simple linear cost
time relationships.
• The Critical Path is the shortest amount of
time we can complete the project.
• • We determine Critical Path by making a left-
to-right pass across the network and finding
the earliest start time each task can start. By
the time we get to the end task, we know the
earliest time the whole project can be
finished.
Critical Path:
• The maximum time to complete the event and
schedule of interrelated activities is called critical
path. It takes long time so that it determines the
project completion time.
• since critical path is longest path through
network diagram.
Critical Activities or bottleneck activities:
• All the activities of critical path are called critical
activities. Disturbing on any one activities may
affect to complete the project.
 Slack:
• The time to complete the project and the
difference between the lengths of activities is
called slack. It indicates time day weeks,
months, and something like that, which
enable to complete the project in time even
any one activities be late. This may be positive
or negative. Positive slack shows the idle time
and resources and negative slack shows the
needs of additional time and resources.
• Slack is the amount of time a task can be
delayed without changing the Critical Path.
• A task on the Critical Path has no (zero) slack.
• We calculate Slack by making a right-to-left
pass across the network and find the latest
start date for each task.
• Earlier Start Time (Est):
The earliest time before initial start to particular
activities of a project.
• Earlier Finish Time (Eft):
The time period of addition of Est and other
particular activities.
• Latest Finish Time ( Lft):
The last time of timely completing project.
• Latest Start Time (Lst):
The difference between Lft and the time of
concerned activities is called Lst.
Latest Start Date - Earliest Start Date = Slack
• The Critical Path are those tasks where the Early
Finish of the Preceding Task is the Same as the
Early Start of a Following Task.
Importance of Updating Critical Path Data
• • It is important to update project schedule
information to meet time goals for a project
• • The critical path may change as you enter actual
start and finish dates
• • If you know the project completion date will
slip, negotiate with the project sponsor
• It was develop to solve the scheduling
problems in industrial settings. It is primarily
concerned with the trade-off between cost
and time. It has been applied mostly to
projects that employ a fairly stable technology
and are relatively risk free. Hence its
orientation is ‘ deterministic’.
Advantages
• Using CPM for a project promotes advance planning
• CPM provides a concise framework for an ongoing review
of project progress.
• The visual representation of the total project
communicates effectively to line personnel, funding
agencies, and other interest groups.
Limitation of CPM
• Project’s activities may not completed within stipulated or
predetermine time.
• The time is not analyzed according to statistical method.
• This method is used to control project’s activities.