3

5
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 NORMAL CURVE
(TORNADO DIAGRAM)
 TIME

C
O
S
T

NORMAL CURVE
 TIME

C
MATERIALS
O
EQUIPMENT
S MANPOWER
T

NORMAL CURVE
Brief History of PERT/CPM networking

CPM (Critical Path Method) and PERT (Program Evaluation Review

Technique) are project management techniques, which have been
created out of the need of Western industrial and military
establishments to plan, schedule and control complex projects.

PERT/CPM or Network Analysis as the technique is developed

along two parallel streams, one industrial and the other military.

CPM was the discovery of M.R.Walker of E.I.Du Pont de

Nemours & Co. and J.E.Kelly of Remington Rand, circa
1957. The first test was made in 1958, when CPM was
applied to the construction of a new chemical plant.

PERT was devised in 1958 for the POLARIS missile

program by the Program Evaluation Branch of the
Special Projects office of the U.S.Navy.
WHAT IS PERT/CPM?
PERT/CPM is a method used in planning and controlling
time. It helps estimate time for project completion, pin-points
activities critical for achieving the target. Above all, it gives a
graphic view of the activities of a project which is easy to
understand in one go.

- CPM is for repeated projects while PERT is for first-timers.

- CPM is used both for time and cost
- whereas in PERT only time is taken care of.
-Because CPM is for repeated projects, there is a track-
record or database of previous projects.
It enables the manager to be realistic in their
estimates. For PERT, being for first time projects,
one has to ask the knowledgeable persons to give
time-estimates for each activity as to
- (a) Minimum time as in most favorable conditions,
- (b) Maximum time as in most unfavorable conditions,
- (c) Normal time.
Planning, Scheduling (or organizing) and Control are
considered to be basic Managerial functions, and
PERT/CPM has been rightfully accorded due importance in
the literature on Operations Research and Quantitative
Analysis.

Far more than the technical benefits, it was found that

PERT/CPM provided a focus around which managers could
brain-storm and put their ideas together.

It proved to be a great communication medium by

which thinkers and planners at one level could
communicate their ideas, their doubts and fears to
another level.

Most important, it became a useful tool for evaluating

and monitoring the performance of individuals and
teams.
The PERT/CPM chart is sometimes preferred over
the Gantt chart, developed by HENRY GANTT in
1910 another popular project management
charting method, because it clearly illustrates task
dependencies.

On the other hand, the PERT chart can be much

more difficult to interpret, especially on complex
projects.

Frequently, project managers use both

techniques.
 A Gantt chart is a graphical representation of the
duration of tasks against the progression of
time.

 a useful tool for planning and scheduling projects.

allows you to assess how long a project should take.
lays out the order in which tasks need to be carried out.
helps manage the dependencies between tasks.

helpful when monitoring a project's progress

allows you to see immediately what should have been
achieved at a point in time.
allows you to see how remedial action may bring the
project back on course.
 A Gantt chart created using Microsoft Project (MSP).

(1) the critical path is in red

(2) the slack is the black lines connected to non-critical activities
(3) when using MSP, you must use the task ID when labeling
predecessor activities
27
There are many variations of PERT/CPM which have been
useful in planning cost outflow for materials, scheduling
manpower and equipment time.
PERT/CPM can answer the following important questions:

How long will the entire project take to be

completed?
What are the risks involved?

Which are the critical activities or tasks in the project

which could delay the entire project if they were
not completed on time?
There are many variations of PERT/CPM which have been
useful in planning cost outflow for materials, scheduling
manpower and equipment time.
PERT/CPM can answer the following important questions:

Is the project on schedule, behind schedule or ahead

of schedule?

If the project has to be finished earlier than planned,

what is the best way to do this at the least cost?
30
31
32
33
Drawing the PERT/CPM Network
 Drawing the PERT/CPM Network
Define the Project and all of it’s significant activities or
tasks. The Project (made up of several tasks) should
have only a single start activity and a single finish
activity.

Develop the relationships among the activities. Decide

which activities must precede and which must follow.

Draw the "Network" connecting all the activities. Each

Activity should have unique event numbers. Dummy
arrows are used where required to avoid giving the
same numbering to two activities.
Drawing the PERT/CPM Network
Assign time and/or cost estimates to each activity

Compute the longest time path through the network.

This is called the critical path.

Use the Network to help plan, schedule, monitor and

control the project.
Drawing the PERT/CPM Network
Drawing the PERT/CPM Network
39
 Drawing the PERT/CPM Network
Compute the longest time path through the network. This is
called the critical path.

A B D F G

0 10 30
10 20 10 20 10

C E
20 10
Forward Pass
 Drawing the PERT/CPM Network
Compute the longest time path through the network. This is
called the critical path.

A B D F G

0 10 30 40 60
20 70

10 20 10 20 10
30 Slack Time
“Float”
C E
20 20 10
Merge Point
 Drawing the PERT/CPM Network
Compute the longest time path through the network. This is
called the critical path.

Early Start Early Finish

A B D F G

0 10 30 40 60
20 70

10 20 10 20 10

C E
20 20 10
 Drawing the PERT/CPM Network
Compute the longest time path through the network. This is
called the critical path.
Late Finish
A B D F G

0 0 10 10 30 30 40 40 60 60
20 70 70

10 20 10 20 10

C E
30 20 20 50 10

Late Start Backward Pass

 Drawing the PERT/CPM Network
Compute the longest time path through the network. This is
called the critical path.

A B D F G

0 0 10 10 30 30 40 40 60 60
20 70 70

10 20 10 20 10

C E
20 20 50 10
CRITICAL PATH
 Drawing the PERT/CPM Network
Compute the longest time path through the network. This is
called the critical path.

A B D F G

0 0 10 10 30 30 40 40 60 60
20 70 70

10 20 10 20 10

C E
20 20 50 10 CRITICAL PATH
Drawing the PERT/CPM Network
PREPARE A DRAFT BY DRAWING A TIME-SCALED DIAGRAM
(using the CRITICAL PATH as reference)

A B D F G

10 20 10 20 10
OFFICE
20 10

C E
Drawing the PERT/CPM Network

A B D F G

0 0 10 10 30 30 40 40 60 60 70 70
10 20 10 20 10

C E

20 20 50 10 CRITICAL PATH
48
The Key Concept used by PERT/CPM is that a
small set of activities, which make up the longest
path through the activity network control the
entire project. If these "critical" activities could
be identified and assigned to responsible
persons, management resources could be
optimally used by concentrating on the few
activities which determine the fate of the entire
project.

Non-critical activities can be replanned,

rescheduled and resources for them can
be reallocated flexibly, without affecting
the whole project.
51
52
53
54
55
56
57
Precedence

Precedence assumes that succeeding

activities cannot start until all preceding
activities are complete.
•A predecessor activity is any activity
that must be completed before a
given activity can be started.
•A successor activity is any activity
that cannot start until a given activity
has been completed.
58
PDM is more flexible than
AON or AOA networks

PDM allows the overlapping

of concurrent activities.

59
60
61
62
Activity Relationships
• Conventional
• Start to Start
• Finish to Finish
• Start to Finish
• Finish to Start Positive
• Finish to Start Negative
63
FINISH TO FINISH in the PDM Diagram

64
Determine the Early Finish (EF) and LF in
the PDM Diagram

65
Determine the Early Finish (EF) and LF in
the PDM Diagram

66
Determine the Early Finish (EF) and LF in
the PDM Diagram

67
Determine the Early Finish (EF) and LF in
the PDM Diagram

68
START TO START
in the PDM Diagram with Lag

69
START TO START in the PDM Diagram

70
START TO FINISH
in the PDM Diagram with LAG

71
START TO FINISH in the PDM Diagram

72
START TO FINISH
in the PDM Diagram with LAG

73
START TO FINISH
in the PDM Diagram with LAG

74
75
76
 Purchase Materials
CONSTRUCTING
Hire Workers
A
Excavate Foundation
SHED
Layout Foundation
Cure Cement Foundation
Purchase Lot
Select Design
Assemble/construct Shed
Purchase Paint
78
79
80
Total Float
 Total float is the amount of time an
activity can be delayed without delaying
the project completion date. On a critical
path, the total float is zero
 Total float is often known as the slack.
 calculate the total float by subtracting
the Early Start date of an activity from its
Late Start date (LS – ES)
 or Early Finish date from its Late Finish
date (LF – EF)
81
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86
87
88
89
90
91
92
93
94
95
97
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101
102
103
104
Pag
e
105
Pag
e
106
Pag
e
107
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 1 2 3 4 5 6 7

ACT COST
B C
A 200 20
B 150 4 3

C 300 A D F
D 200 10 30 40 50
3
E 100 3 1
F 150 E
35
2
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 A D F
B 150 10 30 40 50
3
C 300 3 1
D 200 E
35
E 100 2
F 150

A + 3B
4
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 A D F
B 150 10 30 40 50
3
C 300 3 1
D 200 E
35
E 100 2
F 150

A + B + D + 1E
312.50 2
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 A D F
B 150 10 30 40 50
3
C 300 3 1
D 200 E
35
E 100 2
F 150
A + B + D + E + 1F +1G
3 3
312.50 600
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 A D F
B 150 10 30 40 50
3
C 300 3 1
D 200 E
35
E 100 2
F 150

312.50 600 800 1100

 B
C
20
4 3

A D F
10 30 40 3 50
3 1
COST E
35
1200 - 2
1100
1000 -
800 - 800
600 - 600
400 -
312.50
200 - TIME
0-
1 2 3 4 5 6 7
 B C
20
4 3

A D F
10 30 40 3 50
3 1
COST E
35
1200 - 2
1100
1000 -
800 - 800
600 - 600
400 -
312.50
200 - TIME
0-
1 2 3 4 5 6 7
 B C
20
4 3

A D F
10 30 40 3 50
3 1
COST E
35
1200 - 2
1000 -
800 -
600 -
400 -
200 - TIME
0-
1 2 3 4 5 6 7
Pag
e
117
 COST 312.50 600 800 1100

COST

1200 -
1000 -
800 -
600 -
400 -
200 - TIME
0-
1 2 3 4 5 6 7
 312.50 600 800 1100

28.41% 54.54% 72.72% 100%

COST
%
100 -
80 -
60 -
40 -
20 - TIME
0-
1 2 3 4 5 6 7
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 A D F
B 150 10 30 40 50
3
C 300 3 1
D 200 E
35
E 100 2
EVERY TWO MONTHS
F 150
By MILESTONES

312.50 600 800 1100

 B 150 C 300

4
20
3

A 200 D 200 F 150

10 30 40 3 50
3 1
E 100
35
2

EVERY TWO MONTHS

208.33 600 950 1100

1 2 3 4 5 6 7
 312.50 600 800 1100

28.41% 54.54% 72.72% 100%

COST
%
100 -
80 -
60 -
40 -
20 - TIME
0-
1 2 3 4 5 6 7
 B 150 C 300

4
20
3

A 200 D 200 F 150

10 30 40 3 50
3 1
E 100
35
2

EVERY TWO MONTHS

208.33 600 950 1100

1 2 3 4 5 6 7
 312.50 600 800 1100

28.41% 54.54% 72.72% 100%

208.33 600 950 1100

COST
1200 -
1000 -
800 -
600 -
400 -
200 - TIME
0-
1 2 3 4 5 6 7
 312.50 600 800 1100

28.41% 54.54% 72.72% 100%

208.33 600 950 1100

COST 18.94% 54.54% 86.36% 100%

%
100 -
80 -
60 -
40 -
20 - TIME
0-
1 2 3 4 5 6 7
126
 Exercises

Project Implementation Period

Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

B F

A C E G H

D
 2 3
Exercises 3
5
2 0.5
4 0.5

Project Implementation Period

Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

B F

A C E G H

D
 2 3
Exercises 3
5
2 0.5
4 0.5

Project Implementation Period

Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

B F

A C E G H

D
 B F

A C E G H

D
 B F

A C E G H

Project Implementation Period

Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B F

A C E G H

Project Implementation Period

Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B F

A C E G H

2 3
5 3
2 0.5
Project Implementation Period
4Timeline in Months 0.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
2
 B F

A C E G H

2 3
5 3
2 0.5
Project Implementation Period
4Timeline in Months 0.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
2 9.75 12.25
 B F

A C E G H

2 3
5 3
2 0.5
Project Implementation Period
4Timeline in Months 0.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
2 9.75 12.25 13 16 18 19.5 20
 Project Implementation Period
Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
 Project Implementation Period
Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
20 -
16 -
12 -
8-
4-
0-
COST Project Implementation Period
Timeline in Months TIME
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
20 -
16 -
12 -
8-
4-
0-
COST Project Implementation Period
Timeline in Months TIME
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
20 -
16 -
12 -
8-
4-
0-
COST Project Implementation Period
Timeline in Months TIME
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
 2 3
Exercises 3
5
2 0.5
4 0.5

Project Implementation Period

Timeline in Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

B F

A C E G H

D
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

2 3
5 3
2 0.5
4 0.5
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 18.0 19.5 20.0
5

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

16.
2.0 18.0 19.5 20.0
5

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

A + B 3/5 +

16.
2.0 18.0 19.5 20.0
5

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

A + B 3/5 + C 3/8

16.
2.0 18.0 19.5 20.0
5

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

A + B 3/5 + C 3/8

16.
2.0 5.75 5
18.0 19.5 20.0

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 B 3 F
5
2 3
0.5 0.5
A 2 C E G H

4 D

A + B 3/5 + C 3/8

16.
2.0 5.75 8.25 13.0 5
18.0 19.5 20.0

16.
2.0 9.75 12.25 13.0 18.0 19.5 20.0
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
20 -
16 -
12 -
8-
4-
0-
COST Project Implementation Period
Timeline in Months TIME
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
16.
2.0
2.0 9.75
5.75 12.25
8.25 13.0
13.0 18.0
18.0 19.5
19.5 20.0
20.0
55
20 -
16 -
12 -
8-
4-
0-
COST Project Implementation Period
Timeline in Months TIME
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
16.
16.
2.0
2.0 9.75
5.75 12.25
8.25 13.0
13.0 18.0
18.0 19.5
19.5 20.0
20.0
55
 B 150 C 300

15 20
2 3

A 200 D 200 F 150

10 30 40 3 50
3 1

ACT “A” E 100

35
2
A 2
B 1
C
D
E
F 1
 B 150 C 300

15 20
2 3

A 200 D 200 F 150

10 30 40 3 50
3 1

ACT “A” E 100

35
2
A 2
B 1
C
D
E
F 1
 B 150 C 300

15 20
2 3

A 200 D 200 F 150

10 30 40 3 50
3 1

ACT “A” E 100

35
2
A 2
B 1
C
D
E
F 1
 B 150 C 300

15 20
2 3

A 200 D 200 F 150

10 30 40 3 50
3 1

ACT “A” E 100

35
2
A 2
B 1
C
D
E
F 1
 Disadvantages
There can be potentially hundreds or
thousands of activities and
individual dependency relationships

The network charts tend to be large

and broad requiring several pages to
print and requiring special size
paper
 Disadvantages

The lack of a timeframe on most

PERT/CPM charts makes it harder
to show status although colours
can help (e.g., specific colour for
completed nodes)
When the PERT/CPM charts
become broad, they are no longer
used to manage the project.
Uncertainty in project scheduling
. subjective estimates
. unexpected events or risks
. planning and programming may
provide inaccurate information
about the project completion time
ang other details

.. include safety in the baseline

schedule in order to absorb the
anticipated disruptions.
166
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168