STEPS INVOLVED IN DEVELOPING

NETWORKS
• Identify Activities And Milestones
The tasks required to complete the project, and the events that mark the beginning
and end of each activity, are listed in a table.
• Determine the proper sequence of the activities

• The activities must be performed in a sequential manner which in turn help the
project team work more efficiently.
 Construct a Network diagram

• Using the results of steps 1 and 2,

a network diagram is drawn which
shows activities as arrowed lines, and
milestones as circles.
 Estimate The Time Required For Each
Activity
• Any consistent unit of time can be used, although days and weeks are a common .
 Determine The Critical Path
• To calculate the critical path, the longest sequence of critical tasks,
you first need to estimate the duration of each activity.
• Update The Chart
As the project progresses the actual time for completion of a task will be known and
network diagram can be updated to include this information.
 Advantages of PERT and CPM

 Simple to understand and use.

 Show whether the project is on schedule; or behind/ ahead of the schedule.

 Project managers can determine the precise cost and time required to complete a
project.

 Show potential risk with activites.

 Identify the activities that need closer attention.

 Help to set priorities among activities and resource allocation as per priority.
Limitations Of PERT And CPM
 PERT and CPM work best when you're tackling a project that you understand well.

 Larger the project, network charts tend to be large.

 Calculating time duration or estimates for each activity is complex.

 Requires skilled personnel.

 PERT/CPM requires frequent updating of charts, which is an extensive and time-

consuming exercise that requires highly specialized knowledge.

  The probability distribution of total time is assumed to be normal which in real life
situations may not be true.