CPM / PERT

Introduction
 Developed in 1950s

 Toaid in the planning and scheduling of large

projects

 Basic concepts of CPM / PERT, such as

activities, events and predecessors have
become regular part of the language of Project
Managers

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 CPM / PERT

 CPM – Critical Path Method

 PERT – Project Evaluation and Review

Techniques

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 What is a project
 The project consists of a well-defined
collection of jobs, or activities, which when
completed marks the end of the project
 The jobs may be started or stopped
independently of each other, within a given
sequence
 The jobs are ordered, i.e. they must be
performed in technological sequence

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 Network Diagram

1 Start Node / End Node

Connector indicating two nodes

Name of the activity

Duration

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 Draw Network Diagram … 1
Activity Start Node End Node Description Duration
(in Days)

A 1 2 Forecasting unit sales 14

B 2 4 Pricing sales 3

C 2 3 Preparing production 7
schedule

D 3 4 Costing the 4
production

E 4 5 Preparing the budget 10

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 3 da ys 4
1 14 days 2 10
B da
A y

a ys
E s
7

4d
da

D
ys
C

5
3

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Draw Network Diagram … 2
Activity Immediate Duration
Predecessor (in Days)
A - 14

B - 3

C A 7

D A, B 3

E C 4

F D, E 10

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 Dummy Activities
 Every project preferably should have one
start node and one end node
 We require dummy activities when a project
contains groups of two or more jobs which
have some, but not all, of their immediate
predecessors in common
 These dummy activities have duration of 0
units of time

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Draw Network Diagram … 2
Activity Start Node End Node Immediate Duration
Predecessor (in Days)
A 1 3 - 14

B 1 2 - 3

C 1 4 - 7

F 2 3 B 0

G 2 4 B 0

D 3 5 A, B 4

E 4 5 B, C 10

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Critical Path … 1
Activity Immediate Duration
Predecessor (in Days)
A - 8

B A 2

C B 3

D - 5

E D 2

F E 3

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 Critical Path … 1
Activity Start End Immediate Duration
Node Node Predecessor (in Days)
A 1 2 - 8

B 2 3 A 2

C 3 6 B 3

D 1 4 - 5

E 4 5 D 2

F 5 6 E 3

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 How many different paths?
 From start node to end node, we can have
more than one paths
 Summing up durations of the activities on a
particular path gives the total duration of
that path, called as “Project Path”
 A path is called a “Critical Path” if it is the
longest project path in a project network
 Activities on the critical path are called as
“Critical Activities”
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Find Critical paths
Activity Start End Duration
Node Node (in Days)
A 1 2 2
B 1 3 4
C 2 5 3
D 3 4 2
E 3 5 5
F 3 6 5
G 4 6 2
H 4 7 3
I 5 8 4
J 6 7 6
K 7 8 1
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 Different Critical paths are …
 A: 1-2-5-8 (9 Days)

 B: 1-3-5-8 (13 Days)

 C: 1-3-6-7-8 (16 Days) .. Critical Path

 D: 1-3-4-6-7-8 (15 Days)

 E: 1-3-4-7-8 (10 Days)

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 Why Critical Path?

 Ifwe want to complete the project, even

within the less duration than that of the total
project duration, then we need to shorten the
duration of the critical activities

 Ifwe shorten the duration of non-critical

activities, the total project duration will not
reduce, hence will not be of any use

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 What do we then?
 For complex projects, we will have to find
all possible project paths

 We use a mathematical algorithm to find

out critical path

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 Multiple Critical Paths

 In case, if we have more than one critical

paths, then we cannot shorten any critical
activity to reduce the total project duration

 We have to shorten those critical activities

which are common to all the critical paths

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 Can Critical Path Change?

 Aftershortening the project duration, there

may be change in critical path

 Therefore, after every unit change of

duration, we need to find out critical path
again

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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14
1 3 3
2 3 0
2 4 7
3 5 3
4 5 4
5 6 10
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14
1 3 3 0 3
2 3 0 14 14
2 4 7 14 21
3 5 3 14 17
4 5 4 21 25
5 6 10 25 35
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14 0 14
1 3 3 0 3 19 22
2 3 0 14 14 22 22
2 4 7 14 21 14 21
3 5 3 14 17 22 25
4 5 4 21 25 21 25
5 6 10 25 35 25 35
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14 0 14 -
1 3 3 0 3 19 22 19
2 3 0 14 14 22 22 8
2 4 7 14 21 14 21 -
3 5 3 14 17 22 25 8
4 5 4 21 25 21 25 -
5 6 10 25 35 25 35 -
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Forward Pass / Backward Pass
i j Duration Ei Ej Li Lj Slack
1 2 14 0 14 0 14 -
1 3 3 0 3 19 22 19
2 3 0 14 14 22 22 8
2 4 7 14 21 14 21 -
3 5 3 14 17 22 25 8
4 5 4 21 25 21 25 -
5 6 10 25 35 25 35 -
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 Example … 2
Job I J Duration Ei Ej Li Lj Slack

A 1 2 2
B 2 3 3
C 2 4 5
D 3 5 4
E 3 6 1
F 4 6 6
G 4 7 2
H 5 8 8
I 6 8 7
J 7 8 4
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 Example … 2
Job I J Duration Ei Ej Li Lj Slack

A 1 2 2 0 2
B 2 3 3 2 5
C 2 4 5 2 7
D 3 5 4 5 9
E 3 6 1 5 6
F 4 6 6 7 13
G 4 7 2 7 9
H 5 8 8 9 17
I 6 8 7 13 20
J 7 8 4 9 13
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 Example … 2
Job I J Duration Ei Ej Li Lj Slack

A 1 2 2 0 2 0 2
B 2 3 3 2 5 5 8
C 2 4 5 2 7 2 7
D 3 5 4 5 9 8 12
E 3 6 1 5 6 12 13
F 4 6 6 7 13 7 13
G 4 7 2 7 9 14 16
H 5 8 8 9 17 12 20
I 6 8 7 13 20 13 20
J 7 8 4 9 13 16 20
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 Example … 2
Job I J Duration Ei Ej Li Lj Slack

A 1 2 2 0 2 0 2 -
B 2 3 3 2 5 5 8 3
C 2 4 5 2 7 2 7 -
D 3 5 4 5 9 8 12 3
E 3 6 1 5 6 12 13 7
F 4 6 6 7 13 7 13 -
G 4 7 2 7 9 14 16 7
H 5 8 8 9 17 12 20 3
I 6 8 7 13 20 13 20 -
J 7 8 4 9 13 16 20 7
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 Example … 2
Job I J Duration Ei Ej Li Lj Slack

A 1 2 2 0 2 0 2 -
B 2 3 3 2 5 5 8 3
C 2 4 5 2 7 2 7 -
D 3 5 4 5 9 8 12 3
E 3 6 1 5 6 12 13 7
F 4 6 6 7 13 7 13 -
G 4 7 2 7 9 14 16 7
H 5 8 8 9 17 12 20 3
I 6 8 7 13 20 13 20 -
J 7 8 4 9 13 16 20 7
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 PERT
 Insome cases, instead of exact time
duration for each activity, 3 estimates are
available as follows
– to – Optimistic Time
– tm – Moderate Time
– tp – Pessimistic Time

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Wt. Average, Std. Dev. & Variance
 Weighted average of these 3 time estimates
is calculated as follows
– te = (to + 4tm + tp) / 6

 Standard Deviation for each activity is

calculated as follows
– st = (tp – to) / 6

 Variance for each activity is calculated as

– Vt = (St)2
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 PERT Example … 1
Activity I J To Tm Tp Te St Vt

A 1 2 2 5 14

B 1 3 3 12 21

C 2 4 5 14 17

D 3 4 2 5 8

E 3 5 6 15 30

f 4 5 1 4 7
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 PERT Example … 1
Activity I J To Tm Tp Te St Vt

A 1 2 2 5 14 6

B 1 3 3 12 21 12

C 2 4 5 14 17 13

D 3 4 2 5 8 5

E 3 5 6 15 30 4

f 4 5 1 4 7 16
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 PERT Example … 1
Activity I J To Tm Tp Te St Vt

A 1 2 2 5 14 6 2

B 1 3 3 12 21 12 3

C 2 4 5 14 17 13 2

D 3 4 2 5 8 5 1

E 3 5 6 15 30 4 1

f 4 5 1 4 7 16 4
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 PERT Example … 1
Activity I J To Tm Tp Te St Vt

A 1 2 2 5 14 6 2 4

B 1 3 3 12 21 12 3 9

C 2 4 5 14 17 13 2 4

D 3 4 2 5 8 5 1 1

E 3 5 6 15 30 4 1 1

f 4 5 1 4 7 16 4 16
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 Variance and SD for the project
 Variance of the project, VT is calculated as
the sum of Vt (Variance) for all the activities
which are on critical path
 Standard Deviation of the project, ST is
calculated as square root of the VT
 Standard Normal variable, Z is calculated as
follows
– Z = (D – Te) / ST

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Finding probability of completing
the project in given duration
 Forthe given value of D in the formula, we
can find out the probability of completing
the project in given duration using
“Standard Normal Distribution” table
Z = (D – Te) / ST
– Where
– D is the duration in which we expect the
project to be completed
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Finding duration of the project
for the given probability
 For the given probability, p of completing the
project, we can find out the duration, D as
follows
 P(X = p) to be found out from “Standard
Normal Distribution” table
 Z = (D – Te) / ST
– Where
– Z is the value extracted from “Standard
Normal Distribution” table for the given
probability
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Questions ???

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