CPM & PERT

Dr. Maira Anis

PhD ( Engineering Management)

Assistant Professor

Bahria University
Rules of Constructing Network
The rules of network construction in Operation Research
are
• No single activity can be represented more than once in a
network.
• The length of an arrow has no significance.
• The event numbered 1 is the start event and an event
with highest number is the end event.
• Before an activity can be undertaken, all activities
preceding it must be completed i.e., the activities must
follow a logical sequence (or – interrelationship) between
activities.
Rules of Constructing Network
• In assigning numbers to events, there should not be any
duplication of event numbers in a network.
• Dummy activities must be used only if it is necessary to
reduce the complexity of a network.
• A network should have only one start event and one end
event.
Conventions of Network diagram
Conventions of Network diagram
Common Errors in Constructing Network
Diagrams
• In network diagrams there are three types of errors that
occur commonly.
I. Looping
II. Dangling
III. Redundancy
Construct the Network
Activities Predecessor Activities Predecessor
A -- A --
B -- B --
C A C A,B
D A D A,B
E B E B
F BB F D,E
G D,E G C,F
H F,G H D,E
I G,H
Construct the Network
Activities Predecessor Activities Predecessor
A -- A --
B -- B --
C A,B C A
D B D B
E A E A
F C F B
G E,F G C,D
H D,F H G,F
I G,H I E
J I J H,I
K J
PERT and CPM
PERT: Program Evaluation and Review Technique

CPM: Critical Path Method

• Graphically displays project activities

• Estimates how long the project will take
• Indicates most critical activities
• Show where delays will not affect project
Critical Path Method
• Critical path analysis is the process of identifying the
longest path in a schedule network diagram. The analysis
not only indicates completeness of project schedule but
also ascertains degree of scheduling flexibility. Moreover,
critical path analysis also reveals the minimum duration
required to complete a project.
Critical Path Method
• Critical path analysis also specifies link between project
activities. It is important to realize that not all activities can
start and finish on time. Hence critical path analysis
specifies permissible delays to activities that are not on
critical path. Thus schedule flexibility is the permissible
delay that does not affect project completion date.
Critical Path Method
• The first activity of critical path analysis is to draw a
schedule network diagram.
• The critical path analysis uses Precedence Diagram
Method (PDM) to construct the schedule network.
• Further, PDM method uses Activity-on-Node (AON)
diagramming technique to represent the schedule logic.
• In AON the nodes represent the schedule activities.
• Most of the scheduling programs use PDM technique to
construct project network diagram.
• Therefore, critical path analysis example problem uses
activity-on-node method to represent the schedule
network logic.
Critical Path Method
Example
Critical Path Method
Terminologies in CPM
• Forward Pass
• Earliest Start Time (ES)
earliest time an activity can start
ES = maximum EF of immediate predecessors
• Earliest finish time (EF)
earliest time an activity can finish
earliest start time plus activity time
EF= ES + t
• Backward Pass
• Latest Start Time (LS)
Latest time an activity can start without delaying critical path time
LS= LF - t
• Latest finish time (LF)
Latest time an activity can be completed without delaying critical path
time
LS = minimum LS of immediate predecessors
CPM Analysis
• CPM analysis
• Draw the CPM network • Analyze the paths through the
network • Determine the float for each activity • Compute
the activity’s float
• float = LS - ES = LF - EF
• Float is the maximum amount of time that this activity can
be delayed in its completion before it becomes a critical
activity, i.e., delays completion of the project • Find the
critical path is that the sequence of activities and events
where there is no “slack” i.e.. Zero slack • Longest path
through a network • Find the project duration is minimum
project completion time
CPM Example
CPM Example
Early Start and Early Finish
Late Start and Late Finish
Late Start and Late Finish
Late Start and Late Finish
Slack or float
Slack or float
Free slack(Free Float)
Total Float and Free Float
Example
• A project schedule has the following characteristics

Acti 1- 1- 2-4 3-4 3-5 4-9 5-6 5-7 6-8 7-8 8- 9-

vity 2 3 10 10
Tim 4 1 1 1 6 5 4 8 1 2 5 7
e
Example
• Construct network model
• Compute the earliest event time and latest event time.
• Determine the critical path and the total project duration.
• Compute total and free float on each activity
Activit Time Earliest Latest Total Free Ej=Ear
y (tij) Float float= ly time
Start Finish Start Finish
=LS- Ej-Ei- for
ES=Ei EF= LS= LF=Lj
ES tij head
Ei+tij Lj-tij
event

1-2 4 0 4 5 9 5 4
1-3 1 0 1 0 1 0 1
2-4 1 4 5 9 10 5 5
3-4 1 1 2 9 10 8 5
3-5 6 1 7 1 7 0 7
4-9 5 5 10 10 15 5 10
5-6 4 7 11 12 16 5 11
5-7 8 7 15 7 15 0 15
6-8 1 11 12 16 17 5 17
7-8 2 15 17 15 17 0 17
8-10 5 17 22 17 22 0 22
9-10 7 10 17 15 22 5 22
Example
Example (Critical Path by CPM)
Example (Critical Path calculations)
Example
Example
Example
PERT(Program Evaluation Review Technique) Analysis
• Draw the network.
• Analyze the paths through the network and find the
critical path.
• The length of the critical path is the mean of the project
duration probability distribution which is assumed to be
normal
• The standard deviation of the project duration probability
distribution is computed by adding the variances of the
critical activities (all of the activities that make up the
critical path) and taking the square root of that sum
• Probability computations can now be made using the
normal distribution table.
Probabilistic Time Estimates
• Optimistic time
• Time required under optimal conditions

• Pessimistic time
• Time required under worst conditions

• Most likely time

• Most probable length of time that will be required
Probabilistic Estimates
Beta Distribution

to tm te tp

Activity Optimistic Most likely Pessimistic

start time time (mode) time
Expected Time

te = t o + 4t m +t p
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
Variance

2 (t
= p o– t ) 2

36
2 = variance
to = optimistic time
tp = pessimistic time
Example
Example
Example
Example
Project Time Vs Project Cost
Project Time Vs Project Cost
Example
Example
Example
Example
Example
Example