Pert Analysis

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Program Evaluation and

Review Technique (PERT)


■ PERT (Program Evaluation and Review
Technique)
– Based on the idea that
estimates are uncertain
– Uses ranges and probability and
provides an expected value to
determine duration of the project
– E.g.
• The most likely completion time is 4 weeks but
• It could be anywhere between 3 weeks and 8
weeks
Evaluating risks to the
schedule

Use PERT to evaluate the effects of uncertainty.


Using single expected duration.
Using activity standard deviation
Using likelihood of meeting targets.
Applying the PERT Technique
PERT (Program Evaluation Review Technique) takes account of the uncertainties in the
duration of activities within a project.
Standard deviation is used as a ranking measure of the degree of uncertainty of risk of
each activity.
The Z value is calculated for each node that has a target date.
Using PERT to evaluate the
effects of uncertainity
PERT requires three estimates
Most likely time (m)
The time we would expect the task to take under normal circumstances.
Optimistic time (a)
Shortest time in which we could expect to complete the task.
Pessimistic time (b)
Worst possible time in which we could expect to complete the task.
Probabilistic Time
Estimates
■ Beta distribution
– a probability distribution
traditionally used in CPM/PERT
Mean (expected a + 4m +
t= 6
time): b 2
b-
Variance:  2 a6
where =
a = optimistic estimate
m = most likely time
estimate
b = pessimistic time
Activity Time
Estimates
TIME ESTIMATES (WKS) MEAN TIME VARIANCE
ACTIVITY a m b t б2
1 6 8 10 8 0.44
2 3 6 9 6 1.00
3 1 3 5 3 0.44
4 2 4 12 5 2.78
5 2 3 4 3 0.11
6 3 4 5 4 0.11
7 2 2 2 2 0.00
8 3 7 11 7 1.78
9 2 4 6 4 0.44
10 1 4 7 4 1.00
11 1 10 13 9 4.00
Project Network with
Probabilistic Time
Estimates: Example
Equipment
installation Equipment
testing and
1 4 modification
6,8,10 2,4,12 Syste Final
m debuggin
System g
trainin
developme 10
Manu g 1,4,7
nt 3,7,11
Start al 8 Finish
2 testin
3,6,9 11
g
Positio 2,3,4 9 1,10,13
5
n 2,4,6
Job System
recruiti
Training changeov
ng Syste
6 m er
3 testin
3,4,5
1,3,5 g
Orientati
on
7
2,2,2
Activity Early, Late
Times, and
ACTIVITY tSlack
б
ES
EF LS LF S
1 8 1 9 1
0.44 0 6 0 6 0
8 1.00 0 3 2 5 2
2 0.44 0 13 16 21 8
2.78 8 9 6 9 0
6 0.11 6 7 5 9 2
3 0.11 3 5 14 16 11
0.00 3 16 9 16 0
3 1.78 9 13 12 16 3
4 0.44 9 17 21 25 8
1.00 13 25 16 25 0
5 4.00 16
5
Total project variance

2 = б22 + б52 + б82 + б112


 = 1.00 + 0.11 + 1.78 + 4.00
= 6.89 weeks
Probabilistic Network
Analysis
Determine probability that project is
completed within specified time
x-
Z= 
where
 = tp = project mean time
 = project standard deviation
x = proposed project time
Z = number of standard deviations x
is from mean
Probability of Completion
Time
What is the probability that the project is
completed
within 30 weeks?
P(x  30
x-
weeks)  = 6.89 weeks
2 Z=

 = 6.89
= 30 - 25
2.62
 = 2.62 weeks
= 1.91
 = 25 x = 30 Time (weeks)

From Z scores Table, a Z score of 1.91 corresponds to a


probability 0.9719.
Z
values
Probability of Completion
Time
What is the probability that the project is
completed within 22 weeks?
x-
 2 = 6.89 Z
P(x  22 
weeks) weeks =
 = 6.89
= 22 -
2.6
 = 2.62 25 2
weeks
= -1.14
x = 22  = Time
25 (week
s)
From Z scores Table, a Z score of -1.14 corresponds to a
probability of 0.1271
Z
values

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