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Chapter 5. Scheduling the Project. PERT AND CPM NETWORKS. History. Late 1950s Program Evaluation and Review Technique (PERT) U.S. Navy, Booz-Allen Hamilton, and Lockeheed Aircraft Probabilistic activity durations Critical Path Method (CPM) Dupont De Nemours Inc.

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chapter 5

Chapter 5

Scheduling the Project

MEM 612 Project Management

pert and cpm networks

PERT AND CPM NETWORKS

MEM 612 Project Management

history
History
  • Late 1950s
    • Program Evaluation and Review Technique (PERT)
      • U.S. Navy, Booz-Allen Hamilton, and Lockeheed Aircraft
      • Probabilistic activity durations
    • Critical Path Method (CPM)
      • Dupont De Nemours Inc.
      • Deterministic activity durations
the language of pert cpm
The Language of PERT/CPM
  • Activity
    • task or set of tasks
    • use resources
  • Event
    • state resulting from completion of one or more activities
    • consume no resources or time
    • predecessor activities must be completed
the language of pert cpm continued
The Language of PERT/CPM continued
  • Milestones
    • events that mark significant progress
  • Network
    • diagram of nodes and arcs
    • used to illustrate technological relationships
  • Path
    • series of connected activities between two events
the language of pert cpm concluded
The Language of PERT/CPM concluded
  • Critical Path
    • set of activities on a path that if delayed will delay completion of project
  • Critical Time
    • time required to complete all activities on the critical path
building the network
Building the Network
  • AOA Network
  • AON Network
calculating activity slack
Calculating Activity Slack
  • Slack or Float

LST - EST = LFT - EFT = Slack

project uncertainty and risk management

PROJECT UNCERTAINTY AND RISK MANAGEMENT

MEM 612 Project Management

calculating probabilistic activity times
Calculating Probabilistic Activity Times
  • Three Time Estimates
    • pessimistic (a)
    • most likely (m)
    • optimistic (b)
95 percent level
95 Percent Level
  • Task will be a or lower 5 percent of the time
  • Task will be b or greater 5 percent of the time
90 percent level
90 Percent Level
  • Task will be a or lower 10 percent of the time
  • Task will be b or greater 10 percent of the time
95 percent level alternative interpretation
95 Percent Level (Alternative Interpretation)
  • Task will be between a and b 95 percent of the time
90 percent level alternative interpretation
90 Percent Level (Alternative Interpretation)
  • Task will be between a and b 90 percent of the time
selecting risk and finding d
Selecting Risk and Finding D

NORMINV(probability,,,TRUE)

simulation

SIMULATION

MEM 612 Project Management

traditional statistics versus simulation
Traditional Statistics Versus Simulation
  • Similarities
    • must enumerate alternate paths
  • Differences
    • simulation does not require assumption of path independence
the gannt chart

THE GANNT CHART

MEM 612 Project Management

slide43
Figure 5-24 A Gantt Chart of Sample Project Showing Critical Path, Path Connections, Slack, EST, LST, EFT, and LFT
slide44
Figure 5-25 A Gantt Chart of a Day Care Project Showing Expected Durations, Critical Path, Milestone, and Resource Requirements
extensions to pert cpm

EXTENSIONS TO PERT/CPM

MEM 612 Project Management

precedence diagramming
Precedence Diagramming
  • Finish-to-start linkage
  • Start-to-start linkage
  • Finish-to-finish linkage
  • Start-to-finish linkage
other methods
Other Methods
  • Graphical Evaluation and Review Technique (GERT)
    • combines flowgraphs, probabilistic networks, and decision trees
    • allows loops back to earlier events and probabilistic branching
copyright
Copyright

Copyright 2005John Wiley & Sons, Inc.

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