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PROJECT MANAGEMENT

     CPM/PERT




                     V P B Chakravarthi . K
                     Abhijeet Kumar
CPM and PERT
 CPM   (Critical Path Method) and PERT
 (Program Evaluation and Review
 Technique) are network based methods
 designed to assist in the planning,
 scheduling, and control of projects. A
 project is a collection of interrelated
 activities with each activity consuming time
 and resources. The objective of CPM and
 PERT is to provide analytic means for
 scheduling the activities.
Terms Used in Project
           Management
Activity : A certain amount of work or task required in
  the project
Activity duration: In CPM the best estimate of time to
  complete an activity . In PERT the expected time or
  average time to complete an activity
Critical activity : An activity that has no room for
  schedule slippages : if it slips the entire the entire
  project completion will slip. An activity with zero
  slack
Terms Used in Project Management .cont
 Critical path: The chain of critical activities
  for the project .The longest path through the
  network
 Dummy activity :An activity that consumes
  no time but shows precedence among
  activities
 Earliest finish (EF): The earliest that an
  activity can finish from the beginning of the
  project
 Earliest start ( ES): The earliest that an
  activity can start from the beginning of the
  project
Terms Used in Project
      Management .cont
 Event  :A beginning , a completion
  point ,or a milestone accomplishment
  within the project . An activity begins
  and ends with events
 Latest finish (LF) : The latest that an
  activity can finish from the beginning
  of the project
 Latest start (LS) :The latest that an
  activity can start from the beginning of
  the project
Terms Used in Project
       Management .cont
 Predecessor   activity : An activity that
  must occur before another activity .
 Slack : The amount of time that an
  activity or group of activities can slip
  without causing a delay in the
  completion of the project
 Successor activity : An activity that
  must occur after another activity
Terms Used in Project
      Management .cont
Conventions used in drawing network
 diagrams (Arrows & Circles )
 Activity on Arrow (AOA) : The
 activities are denoted by Arrows and
 events are denoted by circles

 Activity
        on Node(AON) : Activities are
 denoted by circles(or nodes) and the
 precedence relation ships between
Network planning methods
         that generate:
♦ Relationship between activities
♦ Project duration
♦ Critical path
♦ Slack for non – critical activities
♦ Crashing (cost / time trade-offs)
♦ Resource usage
Project


 “Aproject is a series of activities directed
 to accomplishment of a desired objective.”


  Plan your work first…..then work
  your plan
Network analysis
Introduction


Network analysis is the general name given to certain specific
techniques which can be used for the planning, management and
control of projects.
One definition of a project:
“A project is a temporary endeavour undertaken to create a "unique"
product or service”
   Developed in 1950’s

                                  History           CPM by DuPont for chemical plants
                                                
                                                   PERT by U.S. Navy for Polaris missile




CPM was developed by Du Pont and the emphasis was on the
trade-off between the cost of the project and its overall
completion time (e.g. for certain activities it may be possible
to decrease their completion times by spending more money -
how does this affect the overall completion time of the
project?)

PERT was developed by the US Navy for the planning and control of
the Polaris missile program and the emphasis was on completing the
program in the shortest possible time. In addition PERT had the
ability to cope with uncertain activity completion times (e.g. for a
particular activity the most likely completion time is 4 weeks but it
could be anywhere between 3 weeks and 8 weeks).
CPM - Critical Path Method

   Definition: In CPM activities are shown as a network of
    precedence relationships using activity-on-node network
    construction
     – Single estimate of activity time
     – Deterministic activity times



    USED IN : Production management - for the jobs of
      repetitive in nature where the activity time estimates can
      be predicted with considerable certainty due to the
      existence of past experience.
PERT -
      Project Evaluation & Review Techniques
   Definition: In PERT activities are shown as a network of
    precedence relationships using activity-on-arrow network
    construction
     – Multiple time estimates
     – Probabilistic activity times



    USED IN : Project management - for non-repetitive jobs
      (research and development work), where the time and cost
      estimates tend to be quite uncertain. This technique uses
      probabilistic time estimates.
Gantt chart




                                                           Originated by H.L.Gantt in 1918

Advantages                                  Limitations
- Gantt charts are quite commonly used.     - Do not clearly indicate details regarding
They provide an easy graphical              the progress of activities
representation of when activities (might)
take place.                                 - Do not give a clear indication of
                                            interrelation ship between the separate
                                            activities
CPM/PERT

These deficiencies can be eliminated to a large extent by
  showing the interdependence of various activities by means of
  connecting arrows called network technique.

   Overtime CPM and PERT became one technique

   ADVANTAGES:
     – Precedence relationships
     – large projects
     – more efficient
The Project Network

   Use of nodes and arrows


     Arrows       An arrow leads from tail to head directionally
    – Indicate ACTIVITY, a time consuming effort that is required to
      perform a part of the work.



      Nodes       A node is represented by a circle
    - Indicate EVENT, a point in time where one or more activities start
       and/or finish.
Activity on Node & Activity on Arrow

Activity on Node                Activity on Arrow

- A completion of an activity   - An arrow represents a task,
  is represented by a node         while a node is the
                                   completion of a task
                                - Arrows represent order of
                                   events
Activity Slack

Each event has two important times associated with it :
- Earliest time , Te , which is a calendar time when a event can
    occur when all the predecessor events completed at the earliest
    possible times
-   Latest time , TL , which is the latest time the event can occur with
    out delaying the subsequent events and completion of project.

   Difference between the latest time and the earliest time of an event
    is the slack time for that event


Positive slack : Slack is the amount of time an event can be delayed
    without delaying the project completion
Critical Path


   Is that the sequence of activities and events where there is no
    “slack” i.e.. Zero slack


 Longest path through a network
 minimum project completion time
Benefits of CPM/PERT

   Useful at many stages of project management
   Mathematically simple
   Give critical path and slack time
   Provide project documentation
   Useful in monitoring costs
Thank you

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06 pert cpm (1)

  • 1. PROJECT MANAGEMENT CPM/PERT V P B Chakravarthi . K Abhijeet Kumar
  • 2. CPM and PERT  CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique) are network based methods designed to assist in the planning, scheduling, and control of projects. A project is a collection of interrelated activities with each activity consuming time and resources. The objective of CPM and PERT is to provide analytic means for scheduling the activities.
  • 3. Terms Used in Project Management Activity : A certain amount of work or task required in the project Activity duration: In CPM the best estimate of time to complete an activity . In PERT the expected time or average time to complete an activity Critical activity : An activity that has no room for schedule slippages : if it slips the entire the entire project completion will slip. An activity with zero slack
  • 4. Terms Used in Project Management .cont  Critical path: The chain of critical activities for the project .The longest path through the network  Dummy activity :An activity that consumes no time but shows precedence among activities  Earliest finish (EF): The earliest that an activity can finish from the beginning of the project  Earliest start ( ES): The earliest that an activity can start from the beginning of the project
  • 5. Terms Used in Project Management .cont  Event :A beginning , a completion point ,or a milestone accomplishment within the project . An activity begins and ends with events  Latest finish (LF) : The latest that an activity can finish from the beginning of the project  Latest start (LS) :The latest that an activity can start from the beginning of the project
  • 6. Terms Used in Project Management .cont  Predecessor activity : An activity that must occur before another activity .  Slack : The amount of time that an activity or group of activities can slip without causing a delay in the completion of the project  Successor activity : An activity that must occur after another activity
  • 7. Terms Used in Project Management .cont Conventions used in drawing network diagrams (Arrows & Circles )  Activity on Arrow (AOA) : The activities are denoted by Arrows and events are denoted by circles  Activity on Node(AON) : Activities are denoted by circles(or nodes) and the precedence relation ships between
  • 8. Network planning methods that generate: ♦ Relationship between activities ♦ Project duration ♦ Critical path ♦ Slack for non – critical activities ♦ Crashing (cost / time trade-offs) ♦ Resource usage
  • 9. Project  “Aproject is a series of activities directed to accomplishment of a desired objective.” Plan your work first…..then work your plan
  • 10. Network analysis Introduction Network analysis is the general name given to certain specific techniques which can be used for the planning, management and control of projects. One definition of a project: “A project is a temporary endeavour undertaken to create a "unique" product or service”
  • 11. Developed in 1950’s History CPM by DuPont for chemical plants   PERT by U.S. Navy for Polaris missile CPM was developed by Du Pont and the emphasis was on the trade-off between the cost of the project and its overall completion time (e.g. for certain activities it may be possible to decrease their completion times by spending more money - how does this affect the overall completion time of the project?) PERT was developed by the US Navy for the planning and control of the Polaris missile program and the emphasis was on completing the program in the shortest possible time. In addition PERT had the ability to cope with uncertain activity completion times (e.g. for a particular activity the most likely completion time is 4 weeks but it could be anywhere between 3 weeks and 8 weeks).
  • 12. CPM - Critical Path Method  Definition: In CPM activities are shown as a network of precedence relationships using activity-on-node network construction – Single estimate of activity time – Deterministic activity times USED IN : Production management - for the jobs of repetitive in nature where the activity time estimates can be predicted with considerable certainty due to the existence of past experience.
  • 13. PERT - Project Evaluation & Review Techniques  Definition: In PERT activities are shown as a network of precedence relationships using activity-on-arrow network construction – Multiple time estimates – Probabilistic activity times USED IN : Project management - for non-repetitive jobs (research and development work), where the time and cost estimates tend to be quite uncertain. This technique uses probabilistic time estimates.
  • 14. Gantt chart Originated by H.L.Gantt in 1918 Advantages Limitations - Gantt charts are quite commonly used. - Do not clearly indicate details regarding They provide an easy graphical the progress of activities representation of when activities (might) take place. - Do not give a clear indication of interrelation ship between the separate activities
  • 15. CPM/PERT These deficiencies can be eliminated to a large extent by showing the interdependence of various activities by means of connecting arrows called network technique.  Overtime CPM and PERT became one technique  ADVANTAGES: – Precedence relationships – large projects – more efficient
  • 16. The Project Network  Use of nodes and arrows Arrows An arrow leads from tail to head directionally – Indicate ACTIVITY, a time consuming effort that is required to perform a part of the work. Nodes  A node is represented by a circle - Indicate EVENT, a point in time where one or more activities start and/or finish.
  • 17. Activity on Node & Activity on Arrow Activity on Node Activity on Arrow - A completion of an activity - An arrow represents a task, is represented by a node while a node is the completion of a task - Arrows represent order of events
  • 18. Activity Slack Each event has two important times associated with it : - Earliest time , Te , which is a calendar time when a event can occur when all the predecessor events completed at the earliest possible times - Latest time , TL , which is the latest time the event can occur with out delaying the subsequent events and completion of project.  Difference between the latest time and the earliest time of an event is the slack time for that event Positive slack : Slack is the amount of time an event can be delayed without delaying the project completion
  • 19. Critical Path  Is that the sequence of activities and events where there is no “slack” i.e.. Zero slack  Longest path through a network  minimum project completion time
  • 20. Benefits of CPM/PERT  Useful at many stages of project management  Mathematically simple  Give critical path and slack time  Provide project documentation  Useful in monitoring costs