Upload
manish-kaushal
View
227
Download
0
Embed Size (px)
Citation preview
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 1/84
Project Management
PERT & CPM
Presented by:
Anubhav Geetey
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 2/84
Contents
Project Management Basics
CPM
PERT
Crashing
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 3/84
Characteristics of a project:
A project is a tem porary endeavor involving a connected sequenceof activities and a range of resources, which is designed toachieve a s pecific and unique outcome and which o perateswithin time, cost and quality constraints and which is oftenused to introduce change.
A unique, one-time o perational activity or effort,
Requires the com pletion of a large number of interrelated activities,
Established to achieve specific objective,
Resources (such as time and/or money) are limited,
Ty pically has its own management structure.
What is a Project?
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 4/84
What is Project Management?
The application of a collection of tools and techniques todirect the use of diverse resources towards the accom plishmentof a unique, com plex, one-time task within time, cost andquality constraints.
Its origins lie in World War II, when the military authoritiesused the techniques of o perational research to plan theoptimum use of resources.
One of these techniques was the use of networks to re present asystem of related activities.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 5/84
Project Management Process:
Project planning Project scheduling
Project control
Project team -
made u p of individuals from various areas and de partments within a com pany
Matrix organization -
team structure with members from functional areas, de pending on skills required
Project Manager -
most im portant member of project team
Scope statement -
document providing an understanding, justification & ex pected result of project
Statement of work -written descri ption of objectives of a project
Organizational Breakdown Structure -
a chart that shows which organizational units are res ponsible for work items
Responsibility Assignment Matrix -
shows who is res ponsible for which work in a project
}
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 6/84
What is Work Breakdown Structure?
A method of breaking down a project into individual elements(com ponents, subcom ponents, activities and tasks) in ahierarchical structure which can be scheduled and cost.
It is foundation of project planning.
It is develo ped before identification of de pendencies andestimation of activity durations.
It can be used to identify the tasks in the CPM and PERT.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 7/84
Project Planning
Resource Availability and/or Limits: (Time & Money)
Due date, late penalties, early com pletion incentives
Budget
Activity Information:
Identify all required activities
Estimate the resources (such as time and/or money)
required to com plete each activity
Immediate predecessor(s) to each activity to create
interrelationshi ps
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 8/84
Gantt Chart
Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT)
Project Scheduling & Control techniques
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 9/84
Gra ph or bar chart with a bar for each project activity that shows passage of time. It provides a visual dis play of the project schedule.
Gantt Chart
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 10/84
History of CPM & PERT
Critical Path Method (CPM) DuPont Co. (1957) for construction and maintenance of
new chemical plant,
Deterministic task times,
Activity-on-node network construction,
Re petitive nature of jobs.
Project Evaluation and Review Technique (PERT)
US Navy (1958) for the POLARIS missile program,
Multi ple task time estimates ( probabilistic nature),
Activity-on-arrow network construction,
Non-re petitive jobs (R&D work).
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 11/84
Project Network
Network shows the sequential relationshi ps among various
activities. A network is made u p of:
Arrows
(An arrow leads from tail to head directionally. It indicates ACTIVITY, atime consuming effort that is required to perform a part of the work.)
Nodes
(A node is re presented by a circle. It indicates EVENT, a point in timewhere one or more activities start and/or finish.)
Dummy Activity
(A dummy activity is re presented by a dashed arrow. It indicates onlyPRECEDENCE relationshi ps & does not require any time or effort.)
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 12/84
Situations in network diagram
AB
CA must finish before either of B or C canstart
A
B
C both A and B must finish before C can start
D
C
B
A both A and C must finish before either of B
or D can start
A
C
B
D
DummyA must finish before B can start &
both A and C must finish before D can start
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 13/84
Activity-on-arrow (AOA):
arrows re present activities and nodes are events for points in time.
3
2 0
13
1 1
11 2 4 6 7
3
5
Lay
foundation
Design house
and obtain
financing
Order and
receive
materials
Dummy
Finish
work
Select
carpet
Select
paint
Build
house
(AOA) Project Network forH
ouse
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 14/84
Concurrent Activities:
2 3
Lay foundationLay foundation
Order materialOrder material
(a)(a) Incorrect precedenceIncorrect precedence
relationshiprelationship
(b)(b) Correct precedenceCorrect precedence
relationshiprelationship
3
42
DummyDummyLayLay
foundationfoundation
Order materialOrder material
11
22 00
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 15/84
(AON) Project Network forH
ouse
13
22
4
3
31 5
1
61
7
1Start
Design house and
obtain financing
Order and receive
materialsSelect paint
Select carpet
Lay foundations Build house
Finish work
Activity-on-node (AON):
nodes re present activities, and arrows show precedence
relationshi ps
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 16/84
?
?
?
?
?
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 17/84
Activity ImmediatePreceding
Activities
Duration(in weeks)
a - 6
b - 8
c - 5
d b 13
e c 9
f a 15
g a 17
h f 9
i g 6
j d, e 12
CPM Example:
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 18/84
Network
1 8
2
7
4
3
5
a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 19/84
CPM calculations
Path
A connected sequence of activities leading from thestarting event to the ending event.
Critical Path
The longest path (in terms of time); determines the projectduration i.e. minimum project com pletion time.
Critical ActivitiesAll the activities that make u p the critical path.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 20/84
Paths (1-2-6-8), (a-f-h), 30 (1-2-7-8), (a-g-i), 29
(1-3-5-8), (b-d-j), 33 (1-4-5-8), (c-e-j), 26
1 8
2
7
4
3
5
a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 21/84
1 8
2
7
4
3
5
a, 6a, 6a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
Critical Path & Critical Activities
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 22/84
Forward Pass
Earliest Start Time (ES)
Earliest time an activity can start.
ES = maximum EF of immediate predecessors
Earliest finish time (EF)
Earliest time an activity can finish.
EF= ES + t (where; t = activity time)
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 23/84
ES and EF Times
1 8
2
7
4
3
5
a, 6a, 6a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
0 6
0 8
0 5
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 24/84
ES and EF Times
1 8
2
7
4
3
5
a, 6a, 6a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
0 6
0 8
0 5
5 14
8 21
6 23
6 21
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 25/84
1 8
2
7
4
3
5
a, 6a, 6a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
0 6
0 8
0 5
5 14
8 21 21 33
6 2321 30
23 29
6 21
Project¶s EF = 33
ES and EF Times
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 26/84
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 com pleted without delayingcritical path time.
LF = minimum LS of immediate predecessors
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 27/84
1 8
2
7
4
3
5
a, 6a, 6a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17
h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
0 6
0 8
0 5
5 14
8 2121 33
6 23
21 30
23 29
6 21
21 33
27 33
24 33
LS and LF Times
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 30/84
Event Slack (by activity)
Slack is the maximum amount of time that this activity can
be delayed in its com pletion before it becomes a critical
activity.
Slack = (LS ± ES) = (LF ± EF)
On the critical path, slack = 0.
Activity Floats (by events i,j)
Total float : (LS j ± ESi - t) most favorable
Free float : (ES j ± ESi - t) moderate
Inde pendent float : (ES j ± LSi - t) adverse
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 32/84
1 8
2
7
4
3
5
a, 6a, 6a, 6a, 6
f, 15f, 15f, 15f, 15
b, 8b, 8b, 8b, 8
c, 5c, 5c, 5c, 5
e, 9e, 9e, 9e, 9
d, 13d, 13d, 13d, 13
g, 17g, 17g, 17g, 17 h, 9h, 9h, 9h, 9
i, 6i, 6i, 6i, 6
j, 12 j, 12 j, 12 j, 12
6
Critical Path
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 33/84
CPM analysis
D
raw the CPM network.
Analyze the paths through the network.
Determine the slack for each activity.
Find the critical path that is the sequence of activities andevents where there is no ³slack´ i.e., Zero slack.
Find the project duration i.e., minimum project com pletiontime.
Find out floats.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 34/84
Find out floats?
Activity Immediate
Preceding
Activities
Duration
(in weeks)
a - 13
b - 12
c a 2
d b 8
e a 15
f c, d 2
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 35/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
Network
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 36/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
Paths
(1-2-5), (a-e), 28
(1-2-4-5), (a-c-f), 17
(1-3-4-5), (b-d-f), 22
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 37/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
Critical Path & Critical Activities
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 38/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
120
ES and EF Times a.
b.
c.
d.
e.
f.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 39/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
120
1513
2012
2813
ES and EF Times a.
b.
c.
d.
e.
f.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 40/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
120
1513
2012
2813
2220
ES and EF Times a.
b.
c.
d.
e.
f.
Project¶s EF
= 28
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 41/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
120
1513
2012
281313 28
2220
26 28
LS and LF Times a.
b.
c.
d.
e.
f.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 42/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
120
1513
24 26
2012
18 26
281313 28
2220
26 28
LS and LF Times a.
b.
c.
d.
e.
f.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 43/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
0 13120
6 18
1513
24 26
2012
18 26
281313 28
2220
26 28
LS and LF Times a.
b.
c.
d.
e.
f.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 44/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
130
0 13120
6 18
1513
24 26
2012
18 26
281313 28
2220
26 28
Slack
0
6
11
6
0
6
a.
b.
c.
d.
e.
f.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 45/84
15
2
3 4
a, 13a, 13e, 15e, 15e, 15e, 15
b, 12b, 12b, 12b, 12
c, 2c, 2c, 2c, 2
d, 8d, 8d, 8d, 8
f, 2f, 2f, 2f, 2
Critical Path & Critical Activities
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 46/84
Activity
(i-j)
Duration
(in weeks)ES EF LS LF Total
Float
Free
Float
Indp.
Float
a (1-2) 13 0 13 0 13 0 0 0
b (1-3) 12 0 12 6 18 6 0 0
c (2-4) 2 13 15 24 26 11 5 5
d (3-4) 8 12 20 18 26 6 0 (6)
e (2-5) 15 13 28 13 28 0 0 0
f (4-5) 2 20 22 26 28 6 6 0
Floats
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 47/84
?
?
?
?
?
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 48/84
PERT
PERT is based on the assum ption that an activity¶s duration
follows a probability distribution instead of being a single value.
Three time estimates are required to com pute the parameters of an activity¶s duration distribution:
Pessimistic time (tp ) - the time the activity would take if
things did not go well.
Most likely time (tm ) - the consensus best estimate of theactivity¶s duration.
Optimistic time (to ) - the time the activity would take if
things did go well.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 49/84
Mean (expected time):
(by beta distribution)
Variance:
Probability:
that the project will be com pleted within a s pecified time
Z =x - QWc p( )
te = ( )t p + 4tm + to
6
V = ² = ( )t p ± to ²
6
Where; Z = Std. N.D. scale value,
x = S pecified time,
µ = Mean project EF,
cp = Std. dev. of critical path.
Vc p = Sum of Variances of critical activities.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 50/84
Draw the network.
Com pute the Mean (ex pected time) to analyze the paths throughthe network and find the critical path.
The length of the critical path is the mean of the project duration probability distribution which is assumed to be normal.
The standard deviation of the project duration probabilitydistribution is com puted by adding the variances of the criticalactivities (all activities that make u p the critical path) and taking
the square root of that sum.
Probability com putations can now be made using the normaldistribution table.
PERT analysis
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 51/84
PERT Exam ple:Activity Immediate
PrecedingActivities
To Tm Tp
a - 4 6 8
b - 1 4.5 5
c a 3 3 3d a 4 5 6
e a 0.5 1 1.5
f b, c 3 4 5
g b, c 1 1.5 5h e, f 5 6 7
i e, f 2 5 8
j d, h 2.5 2.75 4.5
k g, i 3 5 7
(in days)
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 52/84
aa
dd
cc
bb
f f
ee
gg
ii
hh
kk
j j
Network without Time estimates
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 53/84
Activity Mean
(exp. time)
Variance
a 6 4/9
b 4 4/9
c 3 0
d 5 1/9e 1 1/36
f 4 1/9
g 2 4/9
h 6 1/9
i 5 1
j 3 1/9
k 5 4/9
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 54/84
a, 6a, 6
d, 5d, 5
c, 3c, 3
b, 4b, 4 f, 4f, 4
e, 1e, 1
g, 2g, 2
i, 5i, 5
h, 6h, 6
k, 5k, 5
j, 3 j, 3
Network with Mean (expected time)
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 55/84
Activity ES EF LS LF Slack
a 0 6 0 6 0* b 0 4 5 9 5
c 6 9 6 9 0*
d 6 11 15 20 9
e 6 7 12 13 6
f 9 13 9 13 0*
g 9 11 16 18 7
h 13 19 14 20 1
i 13 18 13 18 0*
j 19 22 20 23 1
k 18 23 18 23 0*
Critical
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 56/84
a, 6a, 6
d, 5d, 5
c, 3c, 3
b, 4b, 4 f, 4f, 4
e, 1e, 1
g, 2g, 2
i, 5i, 5
h, 6h, 6
k, 5k, 5
j, 3 j, 3
Critical Path & Critical Activities
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 57/84
Vcp = (Va + Vc + Vf + Vi + Vk )= (4/9 + 0 + 1/9 + 1 + 4/9)
= 2
cp = 1.414
Z = (24-23) / 1.414 = 0.71
From the Standard Normal Distribution table:
P(z < 0.71) = 0.5 + 0.2612 = 0.7612
Com puting the probability to com plete the project in 24 days:
(?>24 days)
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 58/84
Normal Distribution of Project Time
Q Time x
Z W
@ Z =0
Probability = 0.50
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 59/84
?
?
?
?
?
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 60/84
Project managers may have the o ption or requirement to crash the project, or accelerate the com pletion of the project.
This is accom plished by reducing the length of the critical path(s).
The length of the critical path is reduced by reducing the duration of the activities on the critical path.
If each activity requires the ex penditure of an amount of money to reduce itsduration by one unit of time, then the project manager selects the least costcritical activity, reduces it by one time unit, and traces that change throughthe remainder of the network.
As a result of a reduction in an activity¶s time, a new critical path may
be created.
When there is more than one critical path, each of the critical paths must bereduced.
If the length of the project needs to be reduced further, the process is
re peated.
Cost consideration in project
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 61/84
Project Crashing
Crashing
reducing project time by ex pending additional resources.
Crash time
an amount of time to which an activity is reduced.
Crash cost
total cost after reducing the activity time.
Goal
reduce project duration at minimum cost.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 62/84
Activity crashing
Activity time
Crashing activity
Crash
time
Crash
cost
Normal Activity
Normal
time
Normal
cost
Slo pe = crash cost per unit time
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 63/84
Time-Cost Relationship Crashing costs increase as project duration decreases.
Indirect costs increase as project duration increases. Reduce project length as long as crashing cost is less than indirect cost.
Time-Cost Tradeoff
time
Direct cost
Indirect
cost
Total project costMin total cost =o ptimal project
time
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 64/84
Project Crashing Example:
Activity Normal
time
(in weeks)
Normal
cost
(in Rs.)
Crash
time
(in weeks)
Crash
cost
(in Rs.)
Slope
(in Rs.)
1-2 8 3,000 4 6,000 750
1-3 5 4,000 3 8,000 2,000
2-4 9 4,000 6 5,500 500
3-5 7 2,000 5 3,200 600
2-5 5 8,000 1 12,000 1,000
4-6 3 10,000 2½ 11,200 2,400
5-6 6 4,000 2 6,800 700
6-7 10 6,000 7 8,700 900
5-7 9 4,200 5 9,000 1,200
45,200 70,400
The indirect cost is Rs. 2,000 per week.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 65/84
Network
1 7
2 6
3 5
88
9999
5555
7777
5555
3333
10101010
9999
4
6666
C.P. = (1-2-4-6-7)
D. Cost = 45,200 Rs.
I. Cost = 60,000 Rs.
Total = 1,05,200 Rs.
Time = 30 weeks
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 66/84
Activity Slope
(in Rs.)
1-2 750
1-3 2,000
2-4 500
3-5 600
2-5 1,000
4-6 2,400
5-6 700
6-7 900
5-7 1,200
5,50064,0009
Crash
cost
Crash
time
Normal
cost
Normal
time
2-4
Activity
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 67/84
Crashing
1 7
2 6
3 5
88
6666
5555
7777
5555
3333
10101010
9999
4
6666
C.P. = (1-2-5-6-7) Time = 29 weeks
D. Cost = 46,700 Rs.
I. Cost = 58,000 Rs.
Total = 1,04,700 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 68/84
Activity Slope
(in Rs.)
1-2 750
1-3 2,000
2-4 500
3-5 600
2-5 1,000
4-6 2,400
5-6 700
6-7 900
5-7 1,200
6,80024,0006
Crash
cost
Crash
time
Normal
cost
Normal
time
5-6
Activity
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 69/84
Crashing
1 7
2 6
3 5
88
6666
5555
7777
5555
3333
10101010
9999
4
2222
C.P. = (1-2-4-6-7) Time = 27 weeks
D. Cost = 49,500 Rs.
I. Cost = 54,000 Rs.
Total = 1,03,500 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 70/84
Activity Slope
(in Rs.)
1-2 750
1-3 2,000
2-4 500
3-5 600
2-5 1,000
4-6 2,400
5-6 700
6-7 900
5-7 1,200
6,00043,0008
Crash
cost
Crash
time
Normal
cost
Normal
time
1-2
Activity
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 71/84
Crashing
1 7
2 6
3 5
44
6666
5555
7777
5555
3333
10101010
9999
4
2222
C.P. = (1-3-5-6-7) Time = 24 weeks
D. Cost = 52,500 Rs.
I. Cost = 48,000 Rs.
Total = 1,00,500 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 72/84
Activity Slope
(in Rs.)
1-2 750
1-3 2,000
2-4 500
3-5 600
2-5 1,000
4-6 2,400
5-6 700
6-7 900
5-7 1,200
3,20052,0007
Crash
cost
Crash
time
Normal
cost
Normal
time
3-5
Activity
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 73/84
Crashing
1 7
2 6
3 5
44
6666
5555
5555
5555
3333
10101010
9999
4
2222
C.P. = (1-2-4-6-7) Time = 23 weeks
D. Cost = 53,700 Rs.
I. Cost = 46,000 Rs.
Total = 99,700 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 74/84
Activity Slope
(in Rs.)
1-2 750
1-3 2,000
2-4 500
3-5 600
2-5 1,000
4-6 2,400
5-6 700
6-7 900
5-7 1,200
8,70076,00010
Crash
cost
Crash
time
Normal
cost
Normal
time
6-7
Activity
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 75/84
Crashing
1 7
2 6
3 5
44
6666
5555
5555
5555
3333
7777
9999
4
2222
C.P. = (1-2-4-6-7) Time = 20 weeks
D. Cost = 56,400 Rs.
I. Cost = 40,000 Rs.
Total = 96,400 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 76/84
Activity Slope
(in Rs.)
1-2 750
1-3 2,000
2-4 500
3-5 600
2-5 1,000
4-6 2,400
5-6 700
6-7 900
5-7 1,200
11,2002½10,0003
Crash
cost
Crash
time
Normal
cost
Normal
time
4-6
Activity
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 77/84
Crashing
1 7
2 6
3 5
44
6666
5555
5555
5555
2½2½2½2½
7777
9999
4
2222
C.P. = (1-2-4-6-7) Time = 19½ weeks
D. Cost = 57,600 Rs.
I. Cost = 39,000 Rs.
Total = 96,600 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 78/84
Crashing
stage
Completion
time
(in weeks)
Direct
cost
(in Rs.)
Indirect
cost
(in Rs.)
Total
cost
(in Rs.)
0 30 45,200 60,000 1,05,200
1 29 46,700 58,000 1,04,700
2 27 49,500 54,000 1,03,500
3 24 52,500 48,000 1,00,500
4 23 53,700 46,000 99,700
5 20 56,400 40,000 96,400
6 19½ 57,600 39,000 96,600
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 79/84
If the objective is to minimize the com pletion time of the
project then the critical
path, time & total cost will be:
C.P. = (1-2-4-6-7)
Time = 19½ weeks
D. Cost = 57,600 Rs.
I. Cost = 39,000 Rs.
Total = 96,600 Rs.
If the objective is to minimize the total cost of the project
then the critical path, time & total cost will be:
C.P. = (1-2-4-6-7)
Time = 20 weeks
D. Cost = 56,400 Rs.I. Cost = 40,000 Rs.
Total = 96,400 Rs.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 80/84
How long will the entire project take to be com pleted? What are
the risks involved?
Which are the critical activities or tasks in the project whichcould delay the entire project if they were not com pleted on
time?
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?
CPM / PERT can answer the following
important questions:
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 81/84
Useful at many stages of project management.
Mathematically sim ple.
Give critical path and slack time.
Provide project documentation.
Useful in monitoring costs.
Benefits of CPM / PERT:
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 82/84
Limitations to CPM / PERT:
Clearly defined, inde pendent and stable activities.
S pecified precedence relationshi ps.
Over em phasis on critical paths.
Deterministic CPM model.
Activity time estimates are subjective and de pend on judgment.
PERT assumes a beta distribution for these time estimates, butthe actual distribution may be different.
To overcome these limitations, Monte Carlo simulations can be
performed on the network to eliminate the o
ptimistic bias.
8/8/2019 Pert Cpm (Unit 6) Copy
http://slidepdf.com/reader/full/pert-cpm-unit-6-copy 83/84
?
?
?
?
?