Lecture 16
Scheduling the Project: CPM & PERT
Dr Sandeep K. Gupta (PhD, MBA, M.Tech)
Assistant Professor, SNU
Gantt charts
A Gantt chart is a type of bar chart that illustrates
a project schedule, named after its popularizer,
Henry Gantt, who designed such a chart around
the years 1910–1915.
Cont…
Network models
PERT/CPM networks—and demonstrate how to
convert a project plan or WBS into these formats.
If the duration of each activity is known with
certainty, then the critical path method (CPM)
can be used to determine the length of time
required to complete a project.
If the duration of the activities is not known with
certainty, the Program Evaluation and Review
Technique (PERT) can be used to estimate the
probability that the project will be completed by
a given deadline.
PERT AND CPM NETWORKS
In the late 1950s, the Program Evaluation and Review Technique (PERT) and the
Critical Path Method (CPM) were independently developed. PERT was developed
by the U.S. Navy, Booz‐Allen Hamilton (a business consulting firm), and
Lockheed Aircraft (now Lockheed Martin Corp.); and CPM was developed by
Dupont De Nemours Inc.
When they were developed, there were significant differences in the methods. For
example, PERT used probabilistic (or uncertain) estimates of activity durations
and CPM used deterministic (or certain) estimates but included both time and cost
estimates to allow time/cost trade‐offs to be used.
Both methods employed networks to schedule and display task sequences.
The Language of PERT/CPM
Activity—A task or set of tasks required by the project.
Activities use resources and time.
Event—An identifiable state resulting from the
completion of one or more activities.
◦ Events consume no resources or time. Before an event can be
achieved or realized, all its predecessor activities must be
completed.
Milestones—Identifiable and noteworthy events
marking significant progress on the project.
Network—A diagram of nodes (may represent activities
or events) connected by directional arcs (may represent
activities or simply show technological dependence) that
defines the project and illustrates the technological
relationships of all activities.
How to draw a network diagram
A project network is used to represent the precedence relationships between
activities. In our discussion, activities will be represented by directed arcs,
and nodes will be used to represent the completion of a set of activities. (For
this reason, we often refer to the nodes in our project network as events.) This
type of project network is called an AOA (activity on arc) network.
• Given a list of activities and predecessors, an AOA representation of a
project can be constructed by using the following rules:
1. Node 1 represents the start of the project. An arc should lead from node
1 to represent each activity that has no predecessors.
2. A node (called the finish node) representing the completion of the
project should be included in the network.
3. Number the nodes in the network so that the node representing the
completion of an activity always has a larger number than the node
representing the beginning of an activity.
4. An activity should not be represented by more than one arc in the
network.
5. Two nodes can be connected by at most one arc.
To avoid violating rules 4 and 5, it is sometimes necessary to utilize a
dummy activity that takes zero time. For example, suppose activities A and B
are both predecessors of activity C and can begin at the same time.
Activity A Must Be
Completed Before
Activity B Can Begin
Activities A and B Must
Be Completed Before
Activity C Can Begin
Activity A Must Be
Completed Before
Activities B and C
Can Begin
Activity: Drawing a Project Network
Widgetco is about to introduce a new product (product 3).
One unit of product 3 is produced by assembling 1 unit of
product 1 and 1 unit of product 2. Before production begins
on either product 1 or 2, raw materials must be purchased and
workers must be trained. Before products 1 and 2 can be
assembled into product 3, the finished product 2 must be
inspected. A list of activities and their predecessors and of the
duration of each activity is given in Table. Draw a project
diagram for this project.
Solution
Constructing a Precedence Diagram (AON)
Green Grass, Inc., a manufacturer of lawn and garden equipment, is
designing an assembly line to produce a new fertilizer spreader, the
Big Broadcaster. Using the following information on the production
process, construct a precedence diagram for the Big Broadcaster.
Practice Session
The following table contains information related to the
major activities of a research project. Use the information
to do the following:
a. Draw a precedence diagram using AOA.
b. Find the critical path.
c. Determine the expected length of the project.
Solution
