Network analysis

PERT PROGRAM EVALUATION AND REVIEW TECHNIQUE

CPM CRITICAL PATH METHOD

PERT and CPM are two of the most widely used techniques for planning and coordinating largescale projects.

By using PERT and CPM, managers are able to obtain: A graphical display of project activities. An estimate of how long the project will take. An indication of which activities are the most critical to timely project completion. An indication of how long any activity can be delayed without delaying the project.

CRITICAL PATH IS THE LONGEST DURATION PATH BETWEEN THE FIRST AND THE LAST NODES OF A PROJECT.

Rules for network construction 1. Each activity must have a succeeding and preceding activity. 2. Each Event should have a distinct number. 3. There should be no loops. 4. No 2 activities must have the same start and end event.

Time estimates for Activities in PERT 1. Optimistic time, to time required if no hurdles or complications 2. Most Likely Time, tm Most likely time of completion 3. Pessimistic Time, tp- Time if unusual complications and/or unforseen difficulties arise.

Expected Time duration of activity te = to + 4 tm + te 6

STEPS IN CRITICAL PATH METHOD 1. DRAW THE CPM NETWORK 2. PROVIDE AN OVERVIEW OF THE PROJECT BY ANALYZING THE PATHS THROUGH THE NETWORK. DETERMINE THE TIME REQUIRED TO COMPLETE EACH PATH, IDENTIFY THE CRITICAL PATH, DETERMINE HOW MUCH TIME TO COMPLETION THE PROJECT IS EXPECTED TO TAKE.

STEPS IN CRITICAL PATH METHOD 3. COMPUTE EARLIEST FINISH TIME FOR EACH ACTIVITY 4. COMPUTE LATEST FINISH FOR EACH ACTIVITY 5. COMPUTE THE SLACK OF EACH ACTIVITY 6. COMPUTE EARLIEST START AND LATEST START FOR EACH ACTIVITY.

STEPS IN CRITICAL PATH METHOD 3. COMPUTE EARLIEST FINISH TIME FOR EACH ACTIVITY 4. COMPUTE LATEST FINISH FOR EACH ACTIVITY 5. COMPUTE THE SLACK OF EACH ACTIVITY 6. COMPUTE EARLIEST START AND LATEST START FOR EACH ACTIVITY.

DRAW THE NETWORK DIAGRAM OF THE GIVEN PROJECT

ACTIVITY IMMEDIATE PREDECESSOR ACTIVITY ACTIVITY DURATION (DAYS)

A B C D E F G H I J

A B B C D,E F,G H,I

2 3 4 1 2 5 7 2 3 1

Earliest Starting and Finishing time computation The earliest finish time for any activity is equal to its earliest start time plus its expected duration, t: EF = ES + t ES for activities at nodes with one entering arrow is equal to EF of the entering arrow. ES for activities leaving nodes with multiple entering arrows is equal to the largest EF of the entering arrow.

Computation of the latest starting and finishing times The latest starting time for any activity is equal to its latest finishing time minus its expected duration, t: LS = LF t For nodes with one leaving arrow, LF for arrows entering that node is equal to LS of the leaving arrow. For nodes with multiple leaving arrows, LF for arrows entering that node is equal to the smallest LS of the leaving arrow.

The slack time can be computed in either of two ways: Slack = LS - ES or LF - EF The activity slack times are based on the assumption that all of the activities on the same path will be started as early as possible and do not exceed their expected times. Furthermore, if two activities are both on the same path and have the same slack, this will be the total slack available to both. In essence, the activities have shared slack. Hence, if the first activity uses all the slack, there will be zero slack for all following activities on that same path.

ACTIVITY

IMMEDIATE PREDECESSOR ACTIVITY

ACTIVITY DURATION (DAYS)

a. Design RAMOV b. Build prototype units c. Perform tests of prototype d. Estimate material costs e. Refine RAMOV Design f. Demonstrate RAMOV to customer g. Estimate labour costs h. Prepare technical proposal i. Deliver proposal to customer

a b a c,d e d e g,h

20 10 8 11 7 6 12 13 5

a d

b
5

e h

f i
7

0 20
1

0 20
2

0 30
3

0 38
4

12 45
6

30

38

45

51

63

a=20
7 31 38

b=10 d=11

c=8
0

e=7 h=13
58 58

f=6

I =5
7

0 63 63

15 43 58

g=12

ACTIVITY

IMMEDIATE PREDECESSOR ACTIVITY

DURATION IN WEEKS

to

tm

tp

A B C D E F G H

A B A C,D C,D,E F

1 2 6 1 1 1 1 1

2 2 7 2 4 5 2 2

3 8 8 3 7 9 3 9