Professional Documents
Culture Documents
Management Studies
(SIMS)
Project Management
PERT,CPM, Resource
Allocation and GERT
Manuja Goenka, E-12
Raj Jyoti Das-E-13
August 2013
Tools for
Scheduling
o commonly used network methods for
History of PERT
Project Evaluation and Review Technique (PERT)
U S Navy (1958) for the POLARIS missile
program
Multiple task time estimates (probabilistic
nature)
PERT
PERT is based on the assumption that an
activitys duration follows a probability
distribution instead of being a single value
Three time estimates are required to compute
the parameters of an activitys duration
distribution:
pessimistic time (a) - the time the activity
would take if things did not go well
most likely time (m ) - the consensus best
estimate of the activitys duration
optimistic time (b) - the time the activity
a + 4m + b
Mean
(expected
time
):t
=
would take if things did go well e
6
Variance: V =
b- a
6
Optimistic
Most Likely
Pessimistic
Variance
Variance is measure of variability in the activity
completion period.
Te =
te
Vp =
V
28**
6.34
1-2-6-8
1-7-8
20
17.00
1-2-5-7- Te=29*
8
Vp=6.0
0
1-4-5-78
3.89
18
1-3-4-57-8
27**
12.00
Therefore,
Z=(27-29)/2.449
=-0.82
Prob. Of finishing the
project by 27 weeks
is app. 21%
darla/smbs/vit
Time
11
Time-Cost Relationship
Crashing
An activity is said to be crashed when
maximum effort is applied to finish that
activity in the shortest possible time.
Cost Slope
The cost slope
shows by how
much the cost of
job would change if
activities were
speed up or slowed
down.
n this case,
ost Slope= (18-9)/(5-8) = $3 K/week
CPM calculation
Path
A connected sequence of activities
leading from the starting event to the
ending event
Critical Path
The longest path (time); determines the
project duration
Critical Activities
All of the activities that make up the
critical path
CPM calculation
Forward Pass
Backward Pass
Latest Start Time (LS)
Latest time an activity can start without delaying critical path
time
LS= LF - t
Latest finish time (LF)
latest time an activity can be completed without delaying
critical path time
LS = minimum LS of immediate predecessors
Project Crashing
Crashing
reducing project time by expending
additional resources
Crash time
an amount of time an activity is reduced
Crash cost
cost of reducing activity time
Goal
reduce project duration at minimum cost
Time-Cost Relationship
Crashing costs increase as project duration
decreases
Indirect costs increase as project duration increases
Reduce project length as long as crashing costs are
less than indirect
costs
Time-Cost
Tradeoff
Total project cost
cost
Indirect cost
Direct cost
time
Crashing Example
9
9
C
5
A
0
9
0
7
8
1
0
2
2
22
1
7
14
5
17
Acti
vity
Norma
l
(Wks)
Crush
(Wks)
T
n
Cn
T
c
1
0
6 1
6
5 1
8
4 8
6 1
9
3 1
1
7
Cost
Slope
(K$)
Cc
9
9
C
5
A
0
9
0
F
5
1
7
14
7
8
1
0
22
5
17
1
7
2
2
Critical Path
A-D-G=22wk
Physical Constraints
Activities that cannot occur in parallel or are
affected by contractual or environmental conditions.
Resource Constraints
The absence, shortage, or unique interrelationship
and interaction characteristics of resources that
require a particular sequencing of project activities.
Resource-Constrained Scheduling
Resource leveling (or smoothing) involves
attempting to even out demands on resources by
using slack (delaying noncritical activities) to
manage resource utilization.
People
Materials
Equipment
Working
Capital
Classification of A
Scheduling Problem
Time Constrained Project
A project that must be completed by an
imposed date.
Time is fixed, resources are flexible: additional
resources are required to ensure project meets
schedule.
Example :
J obs
p(j)
R(1,j)
R(2,j)
1
8
2
3
2
4
1
0
3
6
3
4
4
4
1
0
5
4
2
3
Resource
Available
R1
4
R2
8
27
28
Resource constraints
Suppose jobs require a resource:
J ob
1
2
3
4
5
6
6
5
4
3
2
1
resource requirements
4
1
8
29
2
1
3
1
4
3
9 10
Cmax increases by 2
30
n jobs j=1,,n
N resources i=1,,N
Rk: availability of resource k
pj:
duration of job j
RCPSP
'
Goal: minimize makespan:
Cmax maxCj
j
Restrictions:
32
RCPSP
example
R1 4
2
1
3 4
2
R2 2
1
0
6 5
3
2
10
10
12
33
Multiproject Resource
Schedules
Multiproject Scheduling Problems
Overall project slippage
Delay on one project create delays for other
projects
Resource bottlenecks
Shortages of critical resources required for multiple
projects cause delays and schedule extensions.
Multiproject Resource
Schedules
Managing Multiproject Scheduling
Create project offices or departments to
oversee the scheduling of resources across
projects.
Use a project priority queuing system: first
come, first served for resources.
Centralize project management: treat all
projects as a part of a megaproject.
Outsource projects to reduce the number of
projects handled internally.
Limitations of PERT/CPM
GERT
Anetwork analysistechnique used inproject
management.
It allows probabilistic treatment of both
network logic and activity duration estimated.
The technique was first described in 1966 by
Dr. Alan B. Pritskerof Purdue University and
WW Happ.
Compared to other techniques, GERT is an
only rarely used scheduling technique.
Contd..
Utilizes probabilistic and branching
nodes
It represents the node will be
reached if any m of its p immediate
predecessors are completed.
m
Contd..
It represents a probabilistic output
where any of q outputs are possible
Each branch has an assigned
probability
When no probability is given, the
1
probability is assumed to be one for
2
each branch.
q
Example
Thank YOu