Operations Research 8th Edi Ha Taha
Operations Research 8th Edi Ha Taha
Operations Research 8th Edi Ha Taha
5 : PROJECT MANAGEMENT
Contents
Introduction
Project planning
Project scheduling
Project controlling
Origin and use of PERT
Origin and use of CPM
Applications of PERT and CPM
Framework of PERT and CPM
Constructing the project network
Dummy activities and events
Rules for network construction
Finding the critical path and calculation of floats
Project evaluation and Review technique (PERT)
Review Exercise
CHAPTER 5
PROJECT MANAGEMENT
5.1 Introduction:
At one point or another almost every organization will take on a large and complex project. A
construction company putting up an office building or laying a highway must complete thousands of costly
activities. A shipyard requires tens of thousands of steps in constructing an oceangoing tugboat. An oil refinery
about to shut down for a major maintenance project faces astronomical expenses if this difficult task is unduly
delayed for any reason. Almost every industry worries about how to manage similar large-scale, complicated
projects effectively.
Large, often one-time, projects are difficult challenges to operations managers. The stakes are high.
Millions in cost overruns have been wasted due to poor planning on projects. Unnecessary delays have occurred
due to poor scheduling. And companies have gone bankrupt due to poor controls.
Special projects that take months or years to complete are usually developed outside the normal
production system. Project organizations within the firm are set up to handle such jobs and are often disbanded
when the project is complete. The management of large projects involves there phases.
Table 5.1
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5.2 Project Planning :
Projects can usually be defined as series of related tasks directed towards a major output. A new
organization form, developed to make sure existing programs continue to run smoothly on a day-to-day basis
A project organization is an effective way of pooling the people and physical resources needed for a
limited time to complete a specific project or goal. It is basically a temporary organization structure designed to
Project scheduling is determining the project’s activities in the time sequence in which they have to be
performed. Materials and people needed at each stage of production are computed in this phase, and the time
each activity will take is also set. Separate schedules for personnel need by type of skill (management,
engineering) are charted. Charts can also be developed for scheduling materials. One popular project scheduling
Whatever the approach taken by a project manager, project scheduling serves several purposes:
1. It shows the relationship of each activity to others and to the whole project.
3. It encourages the setting of realistic time and cost estimates for each activity.
4. It helps make better use of people, money, and material resources by identifying critical
The control of large projects, like the control of any management system, involves close monitoring of
resources, costs, quality and budgets. Control also means using a feedback loop to revise the project plan and
having the ability to shift resources to where they are needed most.
Management of big projects that consist of a large number of activities pose complex problems in
planning, scheduling and control, especially when the project activities have to be performed in a specified
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technological sequence. With the help of PERT (Program Evaluation and Review Technique), and CPM
1. Plan the project ahead of time and foresee possible sources of troubles and delays in completion.
2. Schedule the project activities at the appropriate times to conform with proper job sequence so that the
3. Coordinate and control the projects activities so as to stay on schedule in completing the project.
Thus both PERT and CPM are aids to efficient project management. They differ in their approach to the
problem and the solution technique. The nature of the project generally dictates the proper technique to be used.
PERT was developed in the U.S. Navy during the late 1950s to accelerate the development of the
Polaris Fleet Ballistic Missile. The development of this weapon involved the coordination of the work of
thousands of private contractors and other government agencies. The coordination by PERT was so successful
that the entire project was completed 2 years ahead of schedule. Nowadays it is extensively used in industries
The time required to complete the various activities in a research and development project is generally
not known a priori. Thus PERT incorporates uncertainties in activity times in its analysis. It determines the
probabilities of completing various stages of the project by specified deadlines. It also calculates the expected
time to complete the project. An important and extremely useful by product of PERT analysis is its
identification of various “bottlenecks” in a project. In other words, it identifies the activities that have high
potential for causing delays in completing the project on schedule. Thus, even before the project has started, the
project manager knows where he or she can expect delays. The manager can then take the necessary preventive
Because of its ability to handle uncertainties in job times, PERT is mostly used in research and
development projects.
Critical Path Method closely resembles PERT in many aspects but was developed independently by
E.I. du Pont de Nemours Company. Actually, both techniques, PERT and CPM, were developed almost
simultaneously. It was developed to have a better planning in controlling the overhaul and maintenance of
chemical plants. The major difference between the two techniques is that CPM does not incorporate
uncertainties in job times. Instead it assumes that activity times are proportional to the amount of resources
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allocated to them, and by changing the level of resources the activity times and the project completion time can
be varied. Thus CPM assumes prior experience with similar projects from which the relationships between
resources and job times are available. CPM then evaluates the trade-off between project costs and project
completion time.
CPM is mostly used in construction projects where there is prior experience in handling similar
projects.
A partial list of applications of PERT and CPM techniques in project management is as follows:
3. Maintenance planning of oil refineries, ship repairs, and other large operations.
5. Manufacture and assembly of large items such as airplanes, ships, and computers.
6. Simple projects.
Six steps are common to both PERT and CPM. The procedure is as follows:
2. Develop the relationships among the activities. Decide which activities must precede and which must
follow others.
5. Compute the longest time path through the network; this is called the critical path.
6. Use the network to help plan, schedule, monitor and control the project.
Step 5, finding the critical path, is a major part of controlling a project. The activities on the critical
path represent tasks that will delay the entire project if they are delayed. Managers derive flexibility by
identifying noncritical activities and replanning, rescheduling, and reallocating resources such as labor and
finances.
Although PERT and CPM differ to some extent in terminology and in the construction of the network,
their objectives are the same. Furthermore, the analysis used in both techniques is very similar. The major
difference is that PERT employs three time estimates for each activity. Each estimate has an associated
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probability of occurrence, which, in turn, is used in computing expected values and standard deviations for the
activity times. CPM makes the assumption that activity times are known with certainty, and hence only one time
PERT and CPM are important because they can help answer questions such as the following about
2. What are the critical activities or tasks in the project, that is, the ones that will delay the entire project if
3. Which are the noncritical activities, that is, the ones that can run late without delaying the whole project’s
completion?
4. What is the probability that the project will be completed by a specific date?
5. At any particular date, is the project on schedule, behind schedule, or ahead of schedule?
6. On any given date, is the money spent equal to, less than, or greater than the budgeted amount?
8. If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the
least costs?
Analysis by PERT/CPM techniques uses the network formulation to represent the project activities and
2. Nodes represent specific points in time which mark the completion of one or more jobs in the project.
3. Direction on the arc is used to represent job sequence. It is assumed that any job directed towards a node
must be completed before any job directed away from that node can begin.
ACTIVITY IMMEDIATE
PREDECESSOR (S)
A -
B -
C A
D B
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A 2 C
1 4
3
B D
Fig 5.1
You will note that we assigned each event a number. As you will see later, it is possible to identify each
activity with a beginning and ending event or node. For example, activity A in fig. 5.1 is the activity that starts
with event 1 and ends at node, or event, 2. In general, we number node from left to right. The beginning node, or
event, of the entire project is number1, while the last node, or event, in the entire project bears the largest
Example 5.2 Consider seven jobs A, B, C, D, E, F and G with the following job sequence:
A C G
1 2 4 5 6
E
B D
3
Fig 5.2
In the network (fig. 5.2), every are (i,j) represents a specific job in the project. Node 1 represents the
start of the project, whereas node 6 denotes the project’s completion time. The intermediate nodes represent the
completion of various stages of the project. The nodes of the project network are generally called events.
Event : An event is a specific point in time that marks the completion of one or more activities, well
We can also specify network by events and the activities that occur between events. The following
example shows how to develop a network based on this type of specification scheme.
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Example 5.3 Given the following table, develop a network
Beginning with the activity that starts at event 1 and ends at event 2, we can construct the following network.
2 4
1 6
3 5
Fig 5.3
All that is required to construct a network is the starting and ending event for each activity.
You may encounter a network that has two activities with identical starting and ending events. Dummy
activities and events can be inserted into the network to deal with this problem. The use of dummy activities and
events is especially important when computer programs are to be employed in determining the critical path,
project completion time, project variance, and so on. Dummy activities and events can also ensure that the
network properly reflects the project under consideration. The following example illustrates the procedure.
Given these data, you might develop the following network (fig. 5.4).
2 C E 5
A G
1 4 7
B 3 D F 6 H
Fig 5.4
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Look at activity F. According to the network, both activities C and D must be completed before we can start F,
but in reality, only activity D must be completed (see the table), Thus the network is not correct. The addition of
a dummy activity and a dummy event can overcome this problem, as shown fig. 5.5.
Dummy
event
C E
2 X 5
A G
Dummy
1 activity 7
B
H
3 4 6
D F
Fig 5.5
Now the network embodies all of the proper relationships and can be analyzed as usual.
Example 5.5 Consider a project with five jobs A, B, C, D and E with the following job sequence:
Job B precedes D,
A C E
1 2 4 5
3 4 5
1 0 2
B D
3
Fig 5.6
Arc (2, 3) (dotted line in the figure) represents a dummy job that does not exist in reality in the project. The
dummy activity is necessary so as to avoid ambiguity in the job sequence. The completion time of the dummy
job is always zero, and it is added in the project network whenever we want to avoid an arc (i,j) representing
more than one job in the project. In the figure, event 3 represents the completion of job B and the dummy job.
Since the dummy job is completed as soon as A is completed, event 3 in essence marks the completion of jobs A
and B.
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5.11 Rules for Network Construction :
The following are the primary rules for constructing AOA (Activity on Arrow) diagram.
1. The starting event and ending event of an activity are called tail event and head event, respectively.
5. No two activities should have the same starting node and the same ending node.
6. Dummy activity is an imaginary activity indicting precedence relationship only. Duration of a dummy
activity is zero.
Activity A BC D E F G H I J K L M N
Immediate - - - A,B B,C A,B C D,E,F D G G H,J K I,L
predecessor
3 D 6 I 10
A
F L N
B E H
1 2 5 8 9 12
J M
C
4 G 7 K 11
Fig 5.7
The use of the dummy 2-5 is very important here. It is necessary here because if it is eliminated, node 5
becomes the ending node of activity B and the initial node of activity E, implying that D and F require all A, B
and C to be completed before their start, which is not the case. Inclusion of this activity thus enables us to
After the project network plan is completed and activity times are known, we consider the questions
how long the project would take to complete and when the activities may be scheduled. This can be answered by
finding out the critical path of the network. For this we require an arrow diagram and the time duration of the
various activities. These computations involve a forward and a backward pass through the network. The forward
pass calculations yield the earliest start and the earliest finish times for each activity, while the backward pass
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calculations render the latest allowable start and the latest finish times for each activity. We shall demonstrate
the calculation of earliest start, earliest start, earliest finish, latest start and latest finish times of various activities
Example 5.7 Consider the following information on the activities required for a project.
Activity :A B C D E F G H I J K L
Immediate
Predecessors - - - A A E B B D,F C H,J G,I,K
Duration : 2 2 2 3 4 0 7 6 4 10 3 4
Finding the critical path : To estimate how long the project will require, we will have to determine the critical
path of this network. Since the work described by all the paths must be done before the project is considered
complete, we must find that path that requires the most work, the longest path through the network; this is called
the critical path. If we want to reduce the time for the project, we will have to shorten the critical path; that is
we will have to reduce the time of one or more activities on that path – but first we have to find it.
When the network is larger, it is very tedious, often impossible, to find the critical path by listing all the
paths and picking the longest one. We need a more organized method. For this purpose, to begin with, a value of
0 (zero) is assigned to the initial event of the project. Thus, each of the activities initiated from the starting node
of the network are assumed to start at time 0 (the beginning of the day 1, say). The earliest finish time for each
activity is obtained by adding the time duration of the activity to its earliest start time.
We start at node 1 with a starting time we define as zero; we then compute an earliest start time and an
earliest finish time for each activity in the network. Look at activity A with an expected time of 2 weeks:
To find the earliest finish time for any activity, we use this formula:
EF = ES + t
3
Earliest finish time
2
t=2 weeks A
Now we must find the ES time and the EF time for all the activities in the network.
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The earliest-start-time rule. “Since no activity can begin until all its predecessor activities are complete, the
earliest start time for an activity leaving any node is equal to the largest earliest finish time of all activities
2 t =3 5
3 6
D
2 2
E
t =2
A t =4
0 6
5
1
In this instance, the earliest start time for activities D and E is 2, the earliest finish time for activity A.
Using this procedure we make what is called a FORWARD PASS through the network to get all the ES and EF
times as shown in the following figure 15.8 shown. We can see right away from the earliest finish time for
activity L that it is going to take 19 weeks to finish this project, and that is only if all the activities run on
schedule.
2 t=3 5 I
3 6
D 6 6
2 2
E F
6 t=0
t=2 t=4
A 5 I t=4
6
0 10
0
t=2 2 2 t=7 9 t=4 19
1 4 8 15 9
B 2 G L
0 15
t=6
C H
K
t=2 t=3
8
2 t=10 12
2 7
2
J 12
Fig 5.8
The second step in finding the critical path is to compute a latest start time and latest finish time for each
activity. This is done by using what is called a BACKWARD PASS; that is, we begin at the completion point,
node 9, and – using a latest finish time of 19 weeks for that activity (which we found in our forward pass
method) – compute the latest finish time and latest start time for every activity. What is latest finish time? It is
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simply the latest time at which an activity can be completed without extending the completion time of the
network. In the same sense, the latest start time is the latest time at which an activity can begin without
extending the completion time on the project. In a more formal sense, the latest start time can be computed with
LS = LF - t
For example, given the latest finish time for activity L of 19 weeks, then
LS (for activity L) = 19 – 4 = 15
The latest-finish-time rule. “The latest finish time for an activity entering any node is equal to the smallest
latest start time for all activities leaving that same node.”
Look at node 4 in following figure 5.9. The latest finish time for activity B entering that node is 6, the
In figure we have shown the LS and LF times for all the activities in the network.
8 t=3 11 I
3 6
D 11 11
7 7 F
E
11 t=0
t=2 t=4
A 5 I t=4
11
5 15
t=2 6 8 15 19
4 t=7 15 t=4
1 4 8 9
B 6 G L
0 15
t=6
C H K
t=2 t=3
12
2
2 t=10 12
2 7 12
J
Fig 5.9
Now by comparing the earliest start time with the latest start time for any activity (that is, by looking
at when it can be started compared with when it must be started), we see how much free time, or slack, that
activity has. SLACK is the length of time we can delay an activity without interfering with the project
competition. We can also determine slack for any activity by comparing its earliest finish time with its latest
finish time. Look at activity A on the network in the figures 5.8 and 5.9.
LF - EF for activity A = 7 - 2 = 5
LS - ES for activity A = 5 - 0 = 5
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The formal statement of these two methods is
Slack = LF - EF or LS - ES
In the following table 5.2, we have shown LF, EF, LS, ES, and slack for all the activities in the network.
Those activities without any slack are C, J, K, and L. None of these can be delayed without delaying the whole
project. Thus, the critical path for the our project is C-J-K-L. We will have to watch these four activities
especially closely; delay in any one of them will cause a delay in the project completion. Delays in other
activities (A, B, D, E, G, H and I) will not affect on-time project completion (19 weeks) unless the delay is
greater than the slack time an activity has. For example, it is all right for activity G to fall 6 weeks behind
schedule because it has 6 weeks of slack; but if it falls more than 6 weeks behind schedule, it will delay
It can be observed that there may be more than one critical path in a given network. In case of multiple
We can also construct the network directly as follows involving only the Early Start and Late Start
calculation for events at nodes directly at the node as follows. [ES, LS] will be written at the node.
For the activities emanating from a given event, the ES time would be given by the earliest time of it
and the LS time by the latest time of it. In the forward pass, a 0 would be taken as the earliest time for the initial
event of the project and then for each subsequent event, the earliest time would be taken as the latest of the EF
times of the activities concluding on that event. See the [ES, ] entries in the following figure 5.10.
Similarly, the terminal event of the project would be assigned the latest time equal to its earliest time
(or other time if it is given and desired). Then, rolling back, the events are assigned the latest times. If only one
activity starts from the node representing a given event, then the latest time for the event is taken to be the
difference between the latest time of the head event of this activity and the activity duration time. In case,
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however, more than one activity starts from this node, then the minimum of such differences, as mentioned
above, would be taken as the latest time for the event. See the [ES, LS] entries in the following figure.
This method is to facilitate us in finding the critical path by calculating the slack at a node by directly
[6,11]
[2,7] t=3
3 6
D
E F
t=0
t=2 t=4
A 5 I t=4
[6,11]
[0,0] [19,19]
[15,15]
t=2 t=7 t=4
1 4 8 9
B [2,6] G L
t=6
C H K
t=2 t=3
[2,2]
2 t=10
7
J [12,12]
Fig 5.10
An alternative to depict the earliest and the latest timings for each of the activities is shown in the following
example. Notice that each circle representing an event is divided into three parts: containing the event number,
its earliest start time and its latest start time, as shown in the index.
Example 5.8
Assume the following network (fig. 15.11) has been drawn and the activity times estimated in days.
D
B 4
2
0 1 3 4 5
A C E F
1 3 1 2
Fig 5.11
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The ES of a head event is obtained by adding onto the ES of the tail event the linking activity duration
starting from Event 0, time 0 and working forward through the network.
ES 3
D
B 4
2
0 1 3 4 5
A C E F
0 1 1 3 4 1 7 2 9
Fig 5.12
Where two or more routes arrive at an event the longest route time must be taken, e.g. Activity F depends on
completion on D and E. E is completed by day 5 and D is not complete until day 7. Therefore F cannot start
before day 7.
The ES in finish event No.5 is the project duration and is the shortest time in which the whole project can be
completed.
3 3 LS
D
B 4
2
0 1 3 4 5
A C E F
0 0 1 1 1 3 4 6 1 7 7 2 9 9
Fig 5.13
Starting at the finish event No.5, insert the LS (i.e. day 9) and work backwards through the network deducting
Where the tails of activates B and C join event No.1, the LS for C is day 3 and the LS for B is day 1. The
lowest number is taken as the LS for Event No.1 because if event No.1 occurred at day 3 then activities B and D
could not be completed by day 7 as required and the project would be delayed.
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Finding the critical path : The above figure shows that one path through the network (A, B, D, F) has
ES’s and LS’s which are identical. This is the critical path which it should be noted is the chain of activities
which has the longest duration. The critical path can be indicated on the network either by a heavy line or
different color or by two small transverse lines across the arrows along the path thus:
3 3
D
B 4
2
0 1 3 4 5
A C E F
0 0 1 1 1 3 4 6 1 7 7 2 9 9
Fig 5.14
Critical path implications : The activities along the critical path are vital activities which must be completed by
their ES/LS otherwise the project will be delayed. The non critical activities (in the example above, C and E)
have spare time or float available i.e. C and / or E could take up to an additional 2 days in total without delaying
the project duration. If it is required to reduce the overall project duration then the time of one or more of the
activities on the critical path must be reduced perhaps by using more labor, or more or better equipment or some
Float or spare time can only be associated with activities which are non-critical. By definition, activities on
the critical path cannot have float. There are three types of float, Total Float, Free Float and Independent Float.
To illustrate these types of float, part of a network will be used together with a bar diagram of the timings thus:
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5 6 N
J K
10 20 10 40 50
10 20 40 50
Day
30
K
Total float
K
Free float
K Independent
float
Fig 15.16
(a) Total float :This is the amount of time a path of activities could be delayed without affecting the overall
project duration. (For simplicity the path in this example consists of one activity only i.e. Activity K).
Total Float = Latest Finish time – Earliest Start time – Activity Duration
= 30 days
(b) Free float : This is the amount of time an activity can be delayed without affecting the commencement of a
subsequent activity at its earliest start time, but may affect float of a previous activity.
Free Float = Earliest Finish time – Earliest Start time – Activity Duration
Free Float = 40 -10 – 10
= 20 days
(c) Independent float :This is the amount of time an activity can be delayed when all preceding activities are
completed as late as possible and all succeeding activities completed as early as possible. Independent float
therefore does not affect the float of either preceding or subsequent activities.
Independent float = Earliest Finish time – Latest Start time – Activity Duration
= 10 days
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Notes:
(a) The most important type of float is Total Float because it is involved with the overall project duration.
On occasions the term ‘Float’ is used without qualification. In such cases assume that Total Float is
required.
(b) The total float can be calculated separately for each activity but it is often useful to find the total float
over paths of non-critical activities between critical events. For example in the fig. 5.16 of the previous
example, the only non-critical path of activities is C, E for which the following calculation can be
made:
Non-critical path Time Time Total float
required available over path
If some of the ‘path float’ is used up on one of the activities in a path it reduces the leeway available to other
activities in the path.
Example 5.9 A simple network example is given.
4
M
E
H
1 C 3 G 6 L 7 N 8
A F
K
D
0 2 J 5
B
Fig 5.17
A dummy (4-6) was necessary because of the preceding activity requirements of activity L. If activities E, H had
not been specified as preceding activity L, the dummy would not have been necessary.
The network is shown in the normal manner in the following figure from which it will be seen
that the critical path is: A- C- G- L- N with a duration of 29 days.
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4
18 22 M
3
E
H 1
3
1 C 3 6 7 8
G L N
9 9 8 17 17 6 23 23 2 25 25 4 29 29
A
9 D
0 2 2 1 K
F
0 0
B 5
0 2 J
3
11 18 4 19 22
Fig 5.18
The total float on the non critical paths can also be calculated:
Now, we see one more method for calculating the critical path and the floats.
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Example 5.10 Consider the table summarizing the details of a project involving 14 activities .
C(4) H(7)
D(3)
M(13)
I(2)
4 7
Fig 5.19
Compute the earliest start times and the earliest finish times and the late start and late finish times for each
activities, the critical path and the floats associated with each activity. Check your answers with the following
figure and the table.
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The values for all nodes are computed and summarized in the figure 5.20 and written in the format [ES, LS] .
J(5)
E(6) 5 [20,20]
[2,8] 8
2
[8,15]
F(8) K(4) N(7)
A(2)
D(3)
H(7)
C(4) M(13)
4 7
I(2) [11,14]
[9,9]
Fig 5.20
The values for all nodes are summarized in the above figure besides the ES values
The critical activities are identified and are shown in the same figure with thick lines on them. The
corresponding critical path is 1-3-4-6-8-9 (B-D-H-K-N). The project completion time is 27 months.
Total Floats:
The calculation of total floats and free floats of the activities are summarized in the following table 5.3.
Activity (i,j) Duration (Dij) Total float (TFij) Free float (FFij)
1-2 2 6 0
1-3 6 0 0
1-4 4 5 5
2-5 6 7 0
2-6 8 6 6
3-4 3 0 0
3-6 3 7 7
4-6 7 0 0
4-7 2 3 0
5-8 5 7 7
6-8 4 0 0
6-9 3 8 8
7-9 13 3 3
8-9 7 0 0
Table 5.3
Any critical activity will have zero total float and zero free float. Based on this property also, one can determine
the critical activities. From the above table one can check that the total floats and free floats for the activities
(1,3), (3,4), (4,6), (6,8) and (8,9) are zero. Hence, they are critical activities. The corresponding critical path is 1-
3-4-6-8-9 (B-D-H-K-N).
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5.13 Project Evaluation and Review Technique (PERT) :
So far in our analysis the probability considerations in the management of a project were not included.
CPM assumed that the job times are known but can be varied by changing the level of resources. However, in
all the research and development projects, many activities are performed only once. Hence, no prior experience
with similar activities is available. The management of such projects is done by PERT, which takes into account
For each activity in the project network, PERT assumes three times estimates on its completion time.
They include (1) a most probable time denoted by m, (2) an optimistic time denoted by a, and (3) a pessimistic
time denoted by b.
The most probable time is the time required to complete the activity under normal conditions. To include
uncertainties, a range of variation in job time is provided by the optimistic and pessimistic times. The optimistic
estimate is a good guess on the minimum time required when everything goes according to plan whereas the
pessimistic estimate is a guess on the maximum time required under adverse conditions such as mechanical
breakdowns, minor labor troubles, or shortage of or delays in delivery of material. It should be remarked here
that the pessimistic estimate does not take into consideration unusual and prolonged delays or other
catastrophes. Because both these estimates are only qualified guesses, the actual time for an activity could lie
outside this range. (From a probabilistic view point we can only say that the probability of a job time falling
Most PERT analysis assumes a Beta distribution for the job times as shown in fig. 5.21 where µ
represents the average length of the job duration. The value of µ depends on how close the values of a and b are
relative to m.
a m µ b
a + 4m + b (1)
µ=
6
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Since the actual time may vary from its mean value, we need the variance of the job time. For most unimodal
distributions (with single peak values), the end values lie within three standard deviations from the mean value.
Thus the spread of the distribution is equal to six times the standard deviation value (σ).
With the three time estimates on all the jobs, PERT calculates the average time and the variance of each job
using Eqs. 1 and 2. Treating the average times as the actual job times, the critical path is found. The duration of
the project (T) is given by the sum of all the job times in the critical path. But the job times are random
variables. Hence, the project duration T is also a random variable, and we can talk of the average length of the
The expected length of the project is the sum of all the average times of the jobs in the critical path.
Similarly, the variance of the project duration is the sum of all the variances of the jobs in the critical path
Example 5.11 Assume that a simple project has the network shown in the following figure. The activity times
are in weeks and three estimates have been given for each activity in the order a, m, b. The scheduled date for
1 3
A 0.5 – 1 – 1. 5 3-4.5-5.4
F
2 – 3.5 - 4 C
D
5.6-7-15
0 B E 4
4–5-6 2 5–6-8
Fig 5.22
The expected durations can be found using what is known as the PERT formula:
Optimistic time + Pessimistic time + 4 × Most likely time
6
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Critical Path (B, D, F) expected duration
B = [4+6+4(5)]/6 = 5 weeks
If the critical activities were to occur at their optimistic times, event 4 would be reached in 12.6 weeks
but if the critical activities occurred at their pessimistic times, event 4 would be reached in 26.4 weeks. As these
durations span the scheduled date of week 19 some estimate of the probability of achieving the schedule date
(a) Make an estimate of the Standard Deviation for each of the critical activities using
(b) Find the standard deviation of event 4 by calculating the statistical sum (the square root of the sum of
the squares) of the standard deviations of all activities on the critical path.
(c) Find the number of event standard deviations that the scheduled date is away from the expected
duration.
(d) Look up this value (0.91) in a table of areas under the Normal Curve to find the probability. In this case
Probability interpretation. If management consider that the probability of 82% is not high enough, efforts
must be made to reduce the times or the spread of time of activities on the critical path. It is an inefficient
use of resources to try to make the probability of reaching the scheduled date 100% or very close to 100%.
In this case management may well accept the 18% chance of not achieving the schedule date as realistic.
Notes:
(a) The methods of calculating the Expected Duration and Standard Deviation as shown above cannot be taken
as strictly mathematically valid but are probably accurate enough for most purposes. It is considered by
some experts that the standard deviation, as calculated above, underestimates the ‘true’ standard deviation.
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(b) When activity times have variations the critical path will often change as the variations occur.
Example 5.12 Consider a project consisting of nine jobs (A, B, :….., I) with the following precedence relations
First we compute the average time and the variance for each job. They are tabulated as follows in table 5.4:
Using the average job times, the earliest and latest times of each event are calculated. The critical path is found
[12,14]
3 G
12
C
7
1 5 2 9 4 4 5 13 6 6 7 8 8
A B D F H I
[0,0] [5,5] [14,14] [18,18] [31,31] [37,37] [45,45]
E 8
Fig 5.23
166
Let T denote the project duration. Then the expected length of the project is
The variance of the project duration is V(T) = Sum of the variance of jobs A, B, D, F, H and I = 1 + 1 + 1 + 4 +
The project length T is the sum of all job times in the critical path. PERT assumes that all the job times
are independent, and are identically distributed. Hence, by the Central Limit Theorem, T has a normal
distribution with mean E(T), and variance V(T). The following figure exhibits a normal distribution with mean
µ and variance σ2 .
In our example T is distributed normal with mean 45 and standard deviation 3. For any normal
distribution, the probability that the random variable lies within one standard deviation from the mean is 0.68.
Hence, there is a 68% chance that the project duration will be between 42 and 48 days. Similarly there is a
99.7% chance that T will lie within three standard deviations (i.e. between 36 and 54).
µ - 3σ µ - 2σ µ-σ µ µ+σ µ + 2σ µ - 3σ
Fig 5.24
We can also calculate the probabilities of meeting specified project deadlines. For example, the management
wants to know the probability of completing the project by 50 days. In other words, we have to compute Prob
(T≤ 50) where T ~ N (45, 32). This can be obtained from the tables of normal distribution; however, the tables
are given for a standard normal only whose mean is 0 and standard deviation is 1.
From probability theory the random variable Z=[T-E(T)] /σ(T) is distributed normally with mean 0 and standard
deviation 1. Hence,
⎛ 50-45 ⎞
Prob (T ≤ 50) = Prob ⎜ Z ≤ ⎟ = Prob (Z ≤ 1.67) = 0.95
⎝ 3 ⎠
Thus there is a 95% chance that the project will be completed within 50 days.
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Suppose we want to know the probability of completing the project 4 days sooner than expected. This
⎛ 41-45 ⎞
Prob (T ≤ 41) = Prob ⎜ Z ≤ ⎟ = Prob (Z ≤ -1.33) = 0.09
⎝ 3 ⎠
Hence, there is only a small 9% chance that the project will be completed in 41 days.
Note: When multiple critical paths exist, the variance of each critical path may be different even though the
expected values are the same. In such a circumstance, it is recommended that the largest variance of T be used
for probability estimates.
Example 5.13 Consider the details of a project involving 11 activities.
Duration (weeks)
Activity Predecessor(s)
a M B
A - 6 7 8
B - 1 2 9
C - 1 4 7
D A, 1 2 3
E A,B 1 2 9
F C 1 5 9
G C 2 2 8
H E,F 4 4 4
I E,F 4 4 10
J D,H 2 5 14
K I,G 2 2 8
(b) If the probability of completing the project is 0.84, find the expected project completion time.
Solution: The expected duration and variance of each activity are shown in the table.
The calculations of critical path based on expected durations are summarized in the following table 5.5. The
critical path is A-Dummy-E-H-J and the corresponding project completion time is 20 weeks.
Duration (weeks) Mean
Activity Variance
a m b duration
A 6 7 8 7 0.11
B 1 2 9 3 1.78
C 1 4 7 4 1.00
D 1 2 3 2 0.11
E 1 2 9 3 1.78
F 1 5 9 5 1.78
G 2 2 8 3 1.00
H 4 4 4 4 0.00
I 4 4 10 5 1.00
J 2 5 14 6 4.00
K 2 2 8 3 1.00
Table 5.5
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[7,7] [14,14]
14,14]
2 6
D(2)
A(7) Dummy J(6)
H(4)
[0,0]
B(3) [7,7] E(3)
1 3 5 [10,10] 8
[20,20]
F(5)
I(5)
C(4) K(3)
4 7
[4,5] [15,17]
G(3)
Fig 5.25
(a) The sum of the variances of all the activities on the critical path is:
σ = 5.89 = 2.43
⎛ x-µ 25 − 20 ⎞
P(x ≤ 25) = P ⎜ ≤ ⎟ = P(z ≤ 2.06)= 0.9803
⎝ σ 2.43 ⎠
This value is obtained from standard normal table. Therefore, the probability of completing the project on or
From the standard normal table, the value of z is 0.99, when the cumulative probability is 0.84.
The project will be completed in 22.41 weeks (approximately 23 weeks) if the probability of completing the
project is 0.84.
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Review Exercise
Q. Draw project network for the following activities and their predecessors
Activity A B C D E F G H I J K L M
Immediate - - A B A,B C,D F,B E,G H,G I,F J,L A K
predecessor
Activity A B C D E F G H I J K L M N O P Q
Imm. Pred -- -- -- A A B B C C D E F G H I J,K,L M,N,O
Duration 4 8 5 4 5 7 4 8 3 6 5 4 12 7 10 5 8
(months)
Q. Draw the network for a project consisting of 16 jobs A,B,C,…..,M,N,O,P with the following job sequence
A,B,C,D → E,F,G
E,F,G → H
H → I
I → J,K,L,M,N
J,K,L,M,N → O
G,O → P
Q. The department of Mathematics of the University is holding a faculty development program. It has planned
the following activities. Prepare a network diagram showing the interrelationships of various activities.
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Q. Given the following information on a small project, draw a network based on this nformation.
Activity A B C D E F G H
Immediate - A A B,C C D E F,G
predecessor
Q. Consider the following project activities and their predecessors and time estimates
Activity A B C D E F G H I
Predecessor -- -- A,B A,B B D,E C,F D,E G,H
Duration ( days) 15 10 10 10 5 5 20 10 15
Determine the earliest completion time of the project, and identify the critical path
Q. Draw a network :
Q. For a small project of 12 activities, the details are given below. Draw the network and compute earliest
occurrence time, latest occurrence time, critical activities and project completion time.
Activity A B C D E F G H I J K L
Imm. Prede -- -- -- B,C A C E E D,F,H E I,J G
Duration 9 4 7 8 7 5 10 8 6 9 10 2
(days)
Q. The activities involved in a garment manufacturing company are listed with their time estimates as in the
following table. Draw the network and carry out the critical path calculations
Q. The information about various activities of a project and the precedence relationships are given below.
Draw a network using as few dummies as possible
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Q. Consider the following data regarding a project
C 4
2
A
E
1 D
B
5
3
F
The project executive has made estimates of the optimistic, most likely, and pessimistic time ( in days )
for completion of the various activities as follows
Activity Duration
Optimistic (a) Most likely (m) Pessimistic (b)
A 2 5 14
B 9 12 15
C 5 14 17
D 2 5 8
E 6 9 12
F 8 17 20
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Q. Schedule the following activities using CPM.
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Q. Consider the following data regarding a project
Activity Predecessors Duration (weeks)
(a) (m) (b)
A --- 4 4 10
B --- 1 2 9
C --- 2 5 14
D A 1 4 7
E A 1 2 3
F A 1 5 9
G B,C 1 2 9
H C 4 4 4
I D 2 2 8
J E,G 6 7 8
K F,H 2 2 8
L F,H 5 5 5
M I,J,K 1 2 9
N L 6 7 8
Q. Find the total and the free slack associated with each of the activities of the project
Activity A B C D E F G H I J
Imm. Prede -- -- -- A,B A,B C C F,G D E,I
Duration 11 8 6 3 7 7 4 16 5 9
(days)
174
Q. A project consists of the following activities:
Activity A B C D E F G
Imm. Prede -- -- A B,C B,C D E,F
Duration 6 9 9 3 12 6 3
(weeks)
Draw the PERT Network. Indicate the expected total slack for each activity and hence indicate the average
critical path. Within how many days would you expect the project to be completed with 99% chance?
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