PERT CHART

MRS. POOJA GODIYAL

Introduction
• PERT charts were first
created by the U.S. Navy's
Special Projects Office in
1957 to guide the Polaris
nuclear submarine project

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PERT Chart
• A PERT chart uses circles or rectangles called nodes to
represent project events or milestones. These nodes are linked
by vectors, or lines, that represent various tasks

• A PERT chart allows managers to evaluate the time and

resources necessary to manage a project

• Used to schedule, organize and coordinate task within a project

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Objectives

• To facilitate decision making and to reduce both the time and

cost required to complete a project

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• Nodes are visual representations of milestones or events
within the project. They are drawn as either numbered boxes
or numbered circles.
• Arrows are visual representations of the tasks that occur
throughout the project. The direction of the arrow indicates
the sequence of the task.
• Diverging arrows show that various tasks can be completed
at the same time.

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Terminology cont..
• A predecessor event occurs immediately before some events

• A successor event naturally occurs after events

• Slack is the amount of time a single task can be delayed without

harming other tasks or the project as a whole

• The critical path is the longest -- or most time-consuming -- path from

the start to the completion of an event or task

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Terminology cont..
• Expected time is the best estimation of how long a task will take to complete,
taking into consideration any problems or obstacles that might arise

• Optimistic time refers to the minimum amount of time it will take to

complete a task

• Pessimistic time is the maximum amount of time it will take to finish a task

• Most likely time is the best guess of how long a task will take, assuming no
problems arise

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When to use a PERT chart
PERT charts should be used when a project manager needs to:
• determine the project's critical path in order to guarantee all
deadlines are met;
• display the various interdependencies of tasks;
• estimate the amount of time needed to complete the project; and
• prepare for more complex and larger projects.
• Project managers find best results when they use a PERT chart at the
beginning of the project. Doing so helps ensure the project is
accurately scoped and can help avoid any potential bottlenecks in the
process.

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Project Evaluation and Review Technique
Each activity will have 3 time estimates

Optimistic
Pessimistic
Most likely time

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Consider the following table is summarizing the
details of the project
Activity Predecessor Duration (Weeks)
Optimistic Time Most likely time Pessimistic time
A - 5 6 7
B - 1 3 5
C - 1 4 7
D A 1 2 3
E B 1 2 9
F C 1 5 9
G C 2 2 8
H E, F 4 4 10
I D 2 5 8
J H, G 2 2 8
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With this information you have to:
Construct the project network
Find the expected duration and variance of each activity
Find the critical path and expected project completion time

• For each activity we have the starting node and an ending node

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Construct the project network
2
D 5
A I
1 B 3
E 6
8
C

F
H

J
4
G
7

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Find the expected duration and variance of each
activity
Activity Duration (Weeks) Mean/Expected Variance
duration
Optimistic Most Pessimistic
Time likely time time
A 5 6 7 6 0.11
B 1 3 5 3 0.44
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 10 5 1.00
I 2 5 8 5 1.00
J 2 2 8 3 1.00
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Mean

• te = Expected duration
• to = Optimistic time
• tm = Most likely time
• tp = Pessiimistic time

• te = to + 4tm + tp
6

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Variance
• 2  = 2

tp - t o
6

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Find the critical path and expected project
completion time
• To find this we need to have duration of each activity
• In this problem we have 3 estimated times
• Here we take the expected duration of each activity that we have
calculated in the previous calculation
• Note this in the chart

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 D(2) 5
2
( 6) I(5
A )

1 B(3) E(3)
8
3 6

)
J(3
C(

)
F(5 H(5)
4)

4
G(3) 7

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Find the critical path and expected project
completion time
• After entering expected dration we have to find out critical path
Critical Path has two phases
• Phase 1: Determine earliest start time of all the nodes. This is called
Forward Pass
Earliest Start Time: Forward Pass
• Phase 2: Determine Latest completion time for all nodes. This is called
Backward Pass
Latest Completion Time: Backward Pass
These are the important paths need to be followed in order to find out
critical pathway
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Calculation for Earliest Start Time and Latest Completion Time for each
node

• We will take two squares

LCT
• The lowest square denotes Earliest Start Time
EST
• The upper square denotes Latest completion time
• For the first node the Earliest Start Time will be zero
• Now calculate Earliest Start Time for other nodes with the help of
formula

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• ESj = maxi (ESi + DIj)
• ESj - Earliest start time
• maxi (ESi + DIj) - Maximum value or maximum start time of i’th node +
duration of the particular activity
• Find the Earliest Start Time for Node 2: Previous node start time is 0
and duration of this activity is 6, so 0+6 = 6
• Now Node 3, the previous node is 1, Start time of Node 1 is 0, and
duration of activity B is 3, 0+3 = 3
• Node 4 = 0+4 = 4

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• Node 5 = Previous Node is 2 and the Earliest Start Time for Node 2 is
6, So 6+2 = 8
• Node 6 = Here we have two options, Node 6 starts after completion of
Node 3 and Node 4. We will take the maximum value i.e., Node 4, So
5+4=9
• Node 7, we will take maximum value, i.e., 9+5 = 14
• Node 8, Again we have 2 options, will take the maximum value, i.e.,
14+3 = 17

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 6 8
D(2) 5
2
( 6) I(5
A )
0

1 B(3) 3 9
8 17

3
E(3) 6

)
J(3
C(

)
4)

F(5 H(5)

4
4 G(3) 7
14

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After completion of Earliest Start Time for each node, we will find out Latest
Completion time (Backward Pass) for each node
• For Backward pass we have to start with last node
• For Last Node 8, the latest completion time will be same i.e., 17

Now we have to apply formula to find out the Latest Completion time for
each node
• LCi = minj (LCj - Dij)
• LCi = Latest Completion Time of i’th node
• minj (LCj - Dij) = Minimum of Latest Completion time of Jth Node - Duration
of ‘i’ and ‘j’ activity
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• Calculate the Latest Completion Time of Previous node, i.e., Node 7 =
17 - 3 = 14
• Node 6, 14 - 5 = 9
• Node 5, 17 - 5 = 12
• Node 4, We have 2 options, from 7 to 4 and from 6 to 4, We will take
the minimum value
Node 7, (14 - 3 = 11), Node 6, (9 - 5 = 4)
Take 4 as Latest Completion Time for node 4

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• Node 3, we have only one option, 9 - 3 = 6
• Node 2, 12 - 2 = 10
• Node 1, We have 3 options, We will take 4 - 4 = 0

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 10 12
6 8
D(2) 5
2
( 6) I(5
0
A )
0
6 9 17
1 B(3) 3 9
8 17
E(3) 6
3

)
J(3
C(

)
F(5 H(5)
4)

4 4
4 G(3) 7 14
14

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• Now we can find out the Critical Path (The longest path in the network)
• For that we have to check the following conditions

Conditions

• ESi (Earliest Starting Time of Starting node) = LCi (Latest Completion Time of Same
Starting Node)
• ESj (Earliest Starting Point of Ending node) = LCj (Latest Completion Time of Ending
node)
• ESj - ESi = LCj - LCi = Duration
(Earliest Start Time of Completing node - Earliest Start Time of Starting node =
Duration
Other Option is, the Latest Completion of Completing node - Latest Completion Time
of Starting node = Duration)
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Now highlight the Critical Path
• Node 1 to Node 4
• Node 4 to Node 6
• Node 6 to Node 7
• Node 7 to Node 8
Critical Pathway is 1 - 4 - 6 - 7 - 8 (1 to 4 duration is 4 weeks, likewise we
will do)
• 4 + 5 + 5 + 3 = 17
• Expected Project Completion Time: 17 Weeks

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 10 12
6 8
D(2) 5
2
( 6) I(5
0
A )
0
6 9 17
1 B(3) 3 9
8 17
E(3) 6
3

)
J(3
C(

)
F(5 H(5)
4)

4 4
4 G(3) 7 14
14

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Advantages of PERT charts
Project managers use PERT charts to gain these benefits:

• The PERT technique provides the ability to evaluate the time and
resources necessary to a project by tracking required assets at each
stage of the process, as well as throughout the course of the project.
• PERT charts are useful in what-if analyses, helping companies
understand all possible workflows and choose the most efficient and
beneficial path.

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• The analysis of the PERT chart includes data from various departments
within an organization. Combining all of the information helps identify
each responsible team within the company, while facilitating an
environment where each department takes responsibility for its work.
• The process of creating a PERT chart also improves communication and
enables an organization to invest energy in projects that will enhance its
strategic positioning.
• PERT charts make unclear deadlines more predictable, clarify
dependencies between tasks and establish a clear order for completing
the tasks.

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Disadvantages of PERT charts
• A strict focus on deadlines may not enable managers to see
the full financial positioning of the project.

• PERT charts lack the flexibility to adapt to small changes that

occur when confronted with a roadblock

• If any calculations are inaccurate in the creation of the chart,

delays could occur, causing bottlenecks and negatively
impacting the final delivery date
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• PERT charts are subjective; their success depends on the
experience of the project manager. Consequently, some
charts may include unreliable data or unrealistic expectations
for the cost and time frame of the project

• Creating a PERT chart is labor-intensive, requiring additional

time and resources. Also, in order for the chart to remain
valuable, it must be consistently reviewed and maintained

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