PERT(Programme Evaluation and

Review Techniques)
&
CPM(Critical Path Methods)

Nirav J Bhavsar
Department of Chemical Engineering
DDU
 Introduction
• It is quite difficult for large business house to
sort out issues related to products and its
dumping to markets.
• The complexities are involved in the present
day managements problems.
• Tough business competitions are added
pressure over the decision makers of large
business houses.
 Introduction
• Large and complex project involves a number
of interrelated activities
– Requiring men power(skilled & unskilled)
– Requiring machines
– Requiring materials
– Requiring utility
 Introduction
• A project is defined as a combination of
interrelated activities which must be executed in
a certain order before the entire task can be
completed.
• It is very complex to work out on task by
executing all interrelated activities with optimum
schedule.
• Managements always look at some methods and
techniques which may help in planning,
scheduling and controlling the project.
 Introduction
• The aim of planning is to develop a sequence
of activities of the project.
– Project completion time and cost are properly
balanced and excessive demand of key resources
is avoided.
• Widely used techniques for planning,
scheduling and controlling are
1.PERT (Project Evaluation and Review Technique)
2.CPM (Critical Path Method)
 Historical Background
• 1990 : Henry L Gantt: Developed the Gantt
chart for production of scheduling during
world war I (Modified to bar chart)
• 1956 : E.I Dupont de Numerous company:
Developed CPM methods
• 1957: US Navy : Developed PERT for
scheduling the research and development
work for the polaris missiles programme
 Historical Background
• With the passage of time , PERT and CPM
applications started overlapping and now they
are used almost as a single technique and the
difference between the two is only the historical
or academic interest.
• Modifications of these two techniques gave rise
to new network techniques
– PEP (Programme Evaluation Procedure)
– RAMPS(Resource allocations and multi project scheduling)
– LESS (Least cost Estimation and Scheduling)
– SCANS (Scheduling and Control by Automated Network
Systems)
 Phases of Project Scheduling
• Project scheduling can be divided into
three phases
1. Planning
2. Scheduling
3. Control
 Planning
• Planning phase consist of
1. Setting the objective of the project and the assumptions
to be made
2. Development of work breakdown structure(WBS).
Depending upon the objective of the management, the
extent of control desired and the availability of
computational aids, the project is broken down into
clearly definable variables.
3. Determination of time estimates for these activities
4. Establishment of inter-dependence relationship between
the activities.
 Scheduling
• scheduling phase consist of
1.Start and finish time for each activity.
2.Critical path on which the activities
require the special attention
3.Slack and floats for non critical paths.
 Controlling
• Controlling phase is the follow up to the
planning and scheduling and it involves
1.Making periodical progress report.
2.Reviewing the progress
3.Analyzing the status of the project
4.Management decisions regarding
updating, resource allocation, etc.
Work Breakdown Structure (W.B.S)
• A project is a combination of the interrelated
activities which must be performed in a
certain order for its completion.
• The process of dividing the project into these
activities is called the Work Breakdown
Structure.
• The activity or a unit of work is a clearly
identifiable and manageable work unit
Work Breakdown Structure (W.B.S)
• A group of students is given a project of centrifugal
pump which is broken down in small parts (i)design
of pump (ii) fabrication (iii) Testing of pump
• The network of all three tasks can be represented as
Work Breakdown Structure (W.B.S)
• The work units can be further broken down into
small work contents (segments) as
(A)Design (B)Make Drawings (C) make Patterns (D) Make
moulds (E) Do casting of parts (F)Do machining of
parts(G)Assemble (H)Design Test rig(I) Fabricate test rig (J)
Perform the test

H I
Work Breakdown Structure (W.B.S)
• Some of these activities can still be further sub
divided
(A)Design (B)Make Drawings (C) make Patterns of impeller (D) make
Patterns of casing (E) Make mould for impeller (F) Make mould for casing
(G) Do casting of parts (H)Do machining of parts(I)Assemble (J)Design Test
rig(K) Fabricate test rig (L) Perform the test (M) Perform the test (N)
Compute the result
C E
H

K
L
 Network Logic
• Some of the terms used in networks are
1. Activity
2. Event
3. Path
4. Network
 Network Logic
1. Activity
• Physically identifiable part of a project which consumes time
and resources
• Activities are obtained by the work breakdown structure
into smaller work contents
• It is represented by arrow the tail of which represent
the start and head represent the finish of activity.
• The length, shape and direction of the arrow has no relation
to the size of the activity.
2. Event
Network Logic
• The beginning and end points of activity are called events or
nodes
• Event is a point in the time and does not consume any
resources, called the jth event and has always a number
higher than the tail event, called the ith event
• “Making the pattern of the impeller” is an activity
• “Start making the pattern of impeller” is an event
• “Pattern making completed” is an event

Activity
i j

Event Event
 Network Logic
3. Path
• An unbroken chain of activity arrows connecting
the initial event to some other event is called a
path.
4. Network
• It is the graphical representation of logically and
sequentially connected arrows and nodes
representing activities and events of a project.
• Also known as arrow diagrams
 Network Construction
• Project is split into activities
• Starting and finishing events of the projects are
then decided.
• After deciding the precedence order, the
activities are put in logical sequence by using the
graphical notation.
• The points to be asked are
– What activities must be completed before a particular activity
starts?
– What activities follow this?
– What activities must be performed concurrently with this?
 Network Construction
• Activities which must be completed before a
particular activity starts are called the predecessor
activities.
• Activities which must follow the particular activity
are called successor activities.
• Points to be checked while drawing the network
– Each activity is represented by one and only one arrow.
– Time follows from left to right. Arrows pointing in opposite
directions are to be avoided.
– Arrows should be kept straight and not curved or bent.
– Arrows should not cross each other. Where crossing can not be
avoided , the specific crossing methods are used
 Dummy
• An activity which only determines the dependency of
one activity over the other, but does not consume
any time is called a dummy activity.
A C

D Dummy
B E activity
 Partial Dependency
• In certain situation the starting of an activity depends
upon the partial completion of a predecessor activity.
• In such cases the predecessor activity is further broken
into two parts and dummy is used to make the
connections.
• For example, a pipe line laying project involves three
activities : Digging of 20 mtr long trench, laying 20 mtr
pipe and filling of the trench.

20 m 20 m 20 m
1 2 3 4
Digging Pipe laying Filling
 Looping
• Sometimes , due to faulty network sequences a condition shown in figure
arises.
• D,E and F form a loop.
• Activity D can not start until F is completed. Which in turn, depends upon
the completion of E.
• E depends upon the completion of D. Thus network cannot proceed
further.
• This situation is avoided by checking the precedence relationship of the
activities and by numbering them in a logical sequence.
3

D E

C F G
1 2 4 5
 Measure of activity
• Each task or activity takes some time for completion.
• This time depends upon the nature of the activity.
• Some activities are rarely performed and no data exists for
time duration.
• Their time consumption involves a considerable degree of
uncertainty.
• Such activities are called “ Variable activities “
• Stochastic modeling techniques are applied for time
estimation.
• For example, Research, Design & development work,
construction during rainy season.
 Measure of activity
• On the other side some activities are such that for which time
duration can be accurately measured.
• Such activities are called “ Deterministic activities “
• Time series modeling techniques are applied for time
estimation.
• Frequency distribution curves are used to estimate time for
two different activities.
• The project which involves the variable activities employ PERT
version of the networks.
• The project which involves the deterministic activities employ
CPM version of the networks.
• PERT is the event oriented technique while CPM is the activity
oriented technique.
 Time estimates
• PERT system is based on the three time estimates of the
performance time of an activity.
1. The Optimistic Time Estimates (to):
- The shortest possible time required for the completion of an
activity, if all conditions are favorable.
- It is assumed that project or task will be completed in ideal
conditions.
2. The pessimistic time estimates. (tp):
- The maximum possible time the activity will take if all goes
bad.
- All worst conditions are to be considered to estimate time
required for completion of the project.
 Time estimates
3. The most likely time estimates (tm):
• The time taken by an activity under normal conditions.
• Any convenient time unit can be used , but it must be
consistent throughout the network.
• Depending upon the project length and level of details, time
unit is used which may be working days, shifts or weeks.
• Full time units are usually used, for example, activity
estimated at 3 days and 6 hours will be assigned to 4 days.
Frequency distribution curve for PERT
(β-distribution curve)
 Mean, Standard Deviation and
Variance
• Mean is the averaged time or expected taken by the
activity. This is the time which is likely to be taken by
activity to execute.
• Standard Deviation shows the Variation from the Mean. A
low Standard Deviation indicates that the observations are
very close to the Mean.
• A high standard deviation indicates that the observations
are spread out over a large range.
• Variance is the measure of the uncertainty which shows the
probability of the activity to be completed in expected
time.
Normal Distribution Curve
 Activity by D.R.Fulkerson (Fulkerson’s Rule)

3 13-18-25 7
14-17-20

2 12-15-18
6-9-12 7-10-13 4
17-20-25
1 10-14-16
3-5-9
4-7-8
9-11-12
5 6