project management Bachlor in Public Administration,balkhu,kathmandu, Nepal basic information on Pert And CPM

1. ‘TRIBHUVAN UNIVERSITY’
DEPARTMENT OF
PUBLIC ADMINISTRATION CAMPUS
PRESENTATION
SUBMITED BY:
PADAM NEPAL
029/074
6TH SEM
SUBMITTEDTO:
SALINA LAMICHHANE
LECTURER
PROJECT MANAGEMENT
PUBLIC ADMINISTRATION CAMPUS

2. TABLE OF CONTENT
 Background
 Network diagram
 PERT
 INTRODUCTION
 FEATURES
 COMPONENTS OF PERT NETWORK
 STEPS IN PERT
 FIGURES
 TABLES
 IMPORTANT NOMENCLATURE
 ADVANTAGES AND DISADVANTAGES
 CPM
 HISTORY
 INTRODUCTION
 COMPONENTS
 STEPS
 ADVANTAGES
 DISADVANTAGES
 CONCLUSION

3. BACKGROUND
NETWORK DIAGRAMS
PROJECT PLANNINGTOOLS
CPM
PERT

4. NETWORK DIAGRAM
 CONCEPT
NETWORK
DIAGRAM
Project management tools use for
project planning
Refers as ‘’Arrow Diagram’’
Uses arrows to:
connect activities
Represents precedence
Interdependencies betn activities

5. PERT
INTRODUCTION
The Project Evaluation and ReviewTechnique, commonly
abbreviated PERT, is a statistical tool, used in project
management. It was developed for the U.S. Navy Special
Projects Office in 1957 to support the U.S. Navy's Polaris
nuclear submarine project.An early example was, it was used
for the 1968Winter Olympics in Grenoble, France.

6. FEATURES OF PERT(key points)
 It is network analysis technique
 Estimates project duration when there is high degree of
uncertainty
 PERT uses probabilistic time estimates
 PERT utilize three time estimates (optimistic, expected (Most
Likely), and pessimistic) and no costs for each activity.
 It is used more in projects where time is the major factor rather
than cost. It is applied to very large-scale, one-time, complex, non-
routine infrastructure and Research and Development projects.

7. COMPONENT OF PERT NETWORK
PERT
NETWORK
COMPONENTS
EVENT ACTIVITIES CRITICAL PATH
Circle arrows most time

8. Steps in PERT
 Following are the steps in PERT
IDENTIFYTHE SPECIFIC ACTIVITY AND EVENTS
DETERMINE THE PROPER SEQUENCE OFTHE
ACTIVITIES
CONSTRUCT A NETWORK DIAGRAM
ESTIMATETHETIME REQUIRE FOR EACH ACTIVITY
DETERMINE THE CRITICAL PATH
UPDATE PERT CHART ASTHE PROJECT PROGRESS

9. Figures
 Fig: probabilistic time estimate in PERT

10. FIGURES

11. TABLE
Activity Predecessor
Time estimates Expected
time
Opt (o) Expected (m) Pess (p)
te = (o + 4m + p) ÷ 6
A — 2 4 6 4.00
B — 3 5 9 5.33
C A 4 5 7 5.17
D A 4 6 10 6.33
E B, C 4 5 7 5.17
F D 3 4 8 4.50
G E 3 5 8 5.17

12. IMPORTANT NOMENCLATURE
 ‘Slack’ and ‘Float’
In project management, the terms ‘slack’ and ‘float’ describe the length of time that an
activity can be delayed without delaying the finish date of a subsequent activity, or the
finish date of the entire project. Float or slack is a measure of the excess time and
resources available to complete a task.
Slack is referring to the amount of time that an activity can start later than originally
planned and float is about the time when an activity takes longer than originally
planned.
 Free float is the amount of time that an activity can be delayed without
delaying the successor activity.
 Total float is the amount of time that an activity can be delayed without
delaying the completion of the project.

13. CONT.
 Critical path: The longest possible continuous pathway taken
from the initial event to the terminal event. Any time delays
along the critical path will delay the reaching of the terminal
event.

14. CONT.
 Fast tracking:
A schedule compression technique in which activities normally done in sequence
are performed in parallel for at least a portion of their duration.To do more
things in the same time in order to finish a job earlier than normal or planned.
 To use fast-tracking in project management, you must first go over the critical
path and identify which tasks can be performed parallel to one another.
 For example, when planning a party, you cannot hang up decorations if a
venue has not first been chosen.These are two tasks that cannot run parallel
to one another. However, in this same example, hanging up decorations and
setting out the party snacks are two activities that can be done
simultaneously to quicken the time to the end result.

15. CONT.
 Crashing: A technique used to shorten the schedule duration by adding resources.
Shortening the durations of critical path activities by adding resources.
Additional resources include:
 Additional manpower
 Overtime work
 Paying extra
 Adding more resources

16. CONT.
 LeadTime
When the first activity is still running and second activity starts, this is called
Lead. LeadTime is the overlap between the first and second activity.
For example, let us say that the time duration for the first activity is 20 days,
and for the second activity it is 15 days. As the first activity completes its first
15 days, you start working on the second activity. (Thus, we have 5 days lead
time).

17. CONT.
 LagTime
When the first activity completes, if there is then a delay or wait period before the second
activity starts, this is called lag and the delay is known as the LagTime.
 For example, the time duration for the first activity is 3 days, and for the second activity
it is 2 days.After completing the first activity you wait for 1 day, and then you start the
second activity.
 In this case, we say that LagTime is one day, or Finish to Start activity with one day
delay or lag.

18. IMPORTANCE OF PERT
 Reduction in cost
 Saving of time
 Determination of activities
 Elimination of risk in complex activities
 Flexibility
 Evaluation of alternatives
 Useful in effective control
 Useful in decision making
 Useful in research work
 Visibility of critical path
 It allows project managers to do 'what if' analysis on project activities.

19. Disadvantages of PERT
 It has been its emphasis on time only but not on costs.
 Prediction Inaccuracy
 Expensive –Too expensive in terms of time consumed,
research, prediction, and resources utilized.
 Subjective Analysis

20. Critical Path Method(CPM)
 History
 The critical path method (CPM) is a project modelling technique
developed in the late 1950s by DuPont, and was first used in missile-
defense construction projects of US Navy.
 Critical Path Analysis is commonly used with all forms of projects,
including construction, aerospace and defense, software development,
research projects, product development, engineering, and plant
maintenance, among others.Any project with interdependent activities
can apply this method.
 The first time CPM was used for major skyscraper development was in
1966 while constructing the formerWorldTrade CenterTwinTowers in
NewYork City.

21. INTRODUCTION
 Critical Path method, or CPM, is an important project planning tool
to monitor the progress of the project to ensure that the project is
on schedule.
 The Critical Path for a project is the longest sequence of activities
on the network diagram and is characterized by zero Slack for all
activities on the sequence.This means that a smallest delay in any
of the activities on the critical path will cause a delay in the overall
timeline of the project.
 The critical path method (CPM) is used in project management to
create project schedules and helps project managers create
a timeline for the project

22. Components
 The essential technique for using CPM: is to construct a model of the project that
includes the following:
 A list of all activities required to complete the project (typically categorized within a
work breakdown structure),
 The time (duration) that each activity will take to complete,
 The dependencies between the activities and,
 Logical end points such as milestones or deliverable items.

23. STEPS IN CPM
 Step 1: Activity specification
 Step 2: Activity sequence establishment
 Step 3: Network diagram
 Step 4: Estimates for each activity
 Step 5: Identification of the critical path
For this, you need to determine four parameters of each activity of the network.
Earliest start time (ES) -The earliest time an activity can start once the previous dependent
activities are over.
Earliest finish time (EF) - ES + activity duration.
Latest finish time (LF) -The latest time an activity can finish without delaying the project.
Latest start time (LS) - LF - activity duration.
Step 6: Critical path diagram to show project progresses

24. ADVANTAGES
 It shows the graphical view of the project.
 It discovers and makes dependencies visible.
 It helps in contingency planning.
 It shows the critical path, and identifies critical activities
requiring special attention.
 It helps assign the float to activities.
 It shows where you to take action to bring project back on
track

25. Disadvantages of Critical Path Method (CPM):
 The scheduling of personnel is not handled by the CPM.
 In CPM, it is difficult to estimate the completion time of an
activity.
 The critical path is not always clear in CPM.
 For bigger projects, CPM networks can be complicated too.
 It also does not handle the scheduling of the resource
allocation.
 In CPM, critical path needs to be calculated precisely.

26. CONCLUSION PERT and CPM :
DIFFERENCE
PERT CPM
V
S
Manages uncertain
Manages certain
Event oriented
Activity oriented
Probabilistic model
Deterministic model
Focuses on time
Time cost-trde-off
No crashing
Chance of crashing
Three time estimates
One time estimates
Suitable for research and
development
For construction
NETWORK
DIAGRAM
PLANNING AND
CONTROLLING
TOOLS
CREATES
ACTIVITY LIST
CREATES PRECEDENT
DIAGRAM
IDENTIFY CRITICAL PATH AND
CALCULATES FLOAT
SIMILARITIES