SYS 798/OR 680

1. SYS 798/OR 680 1 INVESTMENT STRATEGY Schedule Using Program Evaluation and Review Technique PERT

2. PERT : General Review 2 • Advantages – • Helps determine where greatest effort should be made to keep project on schedule • Ability to evaluate effects of change on program • Allows large amounts of data to be represented in a well organized diagram • Disadvantages – • Complexity • Expensive to maintain and utilize

3. PERT Terminology 3 Event: Equivalent to a milestone indicating when an activity starts or finishes. Activity: The element of work that must be completed Critical Path: Longest path through the network and determines the duration of the project. Slack Time: Difference between the latest allowable date and earliest expected date.

4. PERT Questions 4 • Questions that need to be answered before converting projects into PERT charts: • What job immediately precedes this job? • What job immediately follows this job? • What jobs can be run concurrently?

5. Total Pert/CPM Planning- 6 Steps 3 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates

6. Total PERT Step 1 – List Activities 4 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates • Investment Strategy Milestones • Team Formed • Project Proposal Approved • Activities Schedules determined • Requirements Release • Data and Documentation Gathered • Design Completed • Program and Coding • Simulations • Analysis • Final Report • Final Presentation • Step 1 – List Activities from Events • Project Team Organization • Project Proposal • Project Approval • Development Activities Schedule • Requirements Elicitation • Researches and Documentation • Modeling • Data Gathering • Programming and Coding • Simulations • Results Analysis • Report Preparation • Presentation Preparation • Alternatives Solutions • Presentation Rehearsal • Polish Report and Presentation • Final Presentation

7. Total PERT Step 2 - Arrange Activities 5 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates

8. Total PERT Step 2 -Arrange Activities (Cont’d) 6 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates

9. Total PERT Step 2: Arrange Activities (cont’d) 7 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates 13 4 8 1 2 3 5 10 11 12 16 17 6 7 9 14 15 Legend Event Activity

10. Total PERT Step 3: Activities Review 8 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates • Have all activities been identified? • Should any be removed? • Should any be added? • Are the interrelationships correct?

11. Total PERT Step 4 –Identify Activities Time 9 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates

12. Total PERT Step 4: Identify Activities Time (Cont’d) 10 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates

13. Total PERT Step 4: Identify Activities Time (cont’d) 11 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates 7 13 4 8 24 5 1 5 7 1 14 8 1 5 5 1 2 3 5 10 11 12 16 17 10 5 5 15 1 1 10 4 24 6 7 9 14 15 Legend Event Activity 10 Time

14. Total PERT Step 5: Critical Path 12 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates 7 13 4 8 24 5 1 5 7 1 14 8 1 5 5 1 2 3 5 10 11 12 16 17 10 5 5 15 1 1 10 4 24 6 7 9 14 15 Legend Event Activity 10 Time (days) 2

15. Total PERT Step 6: Add Dates 15 List Activities Arrange Activities Review Activities Identify Activities Times Identify Critical Path Add Dates 7 13 August 31, 2009 4 December 18, 2009 8 24 5 1 5 7 1 14 8 1 5 5 1 2 3 5 10 11 12 16 17 10 5 5 15 1 1 10 4 24 6 7 9 14 15 Legend Event Activity 10 Time (days) 2