This document discusses project management techniques for network analysis, specifically Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT). It defines key concepts like activities, events, predecessors, successors. It provides an example network diagram and shows how to calculate earliest start/finish times, latest start/finish times, and float using CPM. It also discusses how PERT differs from CPM in using probabilistic time estimates and not distinguishing between critical and non-critical activities.

1. PROJECT MANAGEMENT
CPM AND PERT OF NETWORK ANALYSIS
BY
INDRAKUMAR R PADWANI
BE MECHANICAL MBA MARKETING .PGDCA
LECTURER IN MECHANICAL ENGG DEPT
GOVERNMENT POLYTECHNIC GODHRA
GUJARAT

2.  A PROJECT IS AN ACTIVITIES PERFORM IN A
SEQUENCE HAVING RESOURCES FOR
GENERATING SOME OUTPUT.THEY INCORPORATE
THE STAGES FROM DESIGNING TO COMPLETION
OF PROJECT

3. PROJECT MANGEMENT INVOLVES
ISSUES LIKE SCHEDULING,ACTIVITIES
ALLOCATING RESOURCES ETC.

4.  THERE ARE TWO METHODS FREQUENTLY USED
FOR NETWORK PLANNING
 CPM----- CRITICAL PATH METHOD
 PERT-----PROGRAMME EVALUATION AND REVIEW
TECHNIQUES

5.  CPM AND PERT ARE THE CRUCIAL TECHNIQUES
WHICH ARE WIDELY USED IN MANAGING COMPLEX
PROJECTS HAVING SEVERAL SEQUENTIAL AND
CONCURRENT ACTIVITIES
 CPM AND PERT ARE APPLICABLE TO ALL ACTIVITIES
LIKE SETTING UP A BUSINESS,LAUNCHING A NEW
PRODUCT.

6.  ACTIVITY --- IT IS A DISTINET PART OF A PROJECT
CONSUMING SOME RESOURCES AND TIME FOR ITS
COMPLETION.FOR EXAMPLE IN MECHANICAL UNIT
SUCH AS DRILLING A HOLE.ETC
 EVENT---- IT IS THE STARTING OR END POINT OF
AN ACTIVITY.IT CAN BE SAID AS BEGINNING AND
COMPLETION POINTS OF AN PROJECTS.
 PREDECESSOR ACTIVITY----- IT IS AN ACTIVITY THAT
MUST OCCURS BEFORE ANOTHER ACTIVITY IN THE
PROJECT.
 SUCCESSOR ACTIVITY---- IT IS THE ACTIVITY THAT
MUST OCCUR AFTER ANOTHER ACTIVITY IN THE
PROJECT.

7.  CONCURRENT OR PARALLEL ACTIVITYS ----- TWO
OR MORE ACTIVITIES CAN BE STARTED AT THE
SAME TIME AND THESE ARE CALLED PARALLEL
ACTIVITIES.
 CRITICAL ACTIVITIES -----THESE ARE THE
ACTIVITIES ON WHICH OVERALL PROJECTS
COMPLETION TIME DEPENDS.
 EPO---- EPO MEANS EARLIEST POSSIBLE
OCCURRENCE.IT IS ALSO KNOWN AS EFT(EARLIST
FINISH TIME ).IT IS OBTAINED AS EARLIST START
TIME(EST)+ DURATION OF THAT ACTIVITY.
 LPO ------ LPO MEANS LATEST POSSIBLE
OCCURRENCE.IT IS ALSO KNOWN AS LFT (LATEST
FINISH TIME ) LFT+ DURATION OF THAT ACTIVITY.

8.  FLOAT AND SLACK ----- FLOAT REPRESENT THE
MARGIN OF EXTRA TIME WHICH DO NOT RESULT
INTO DELAY OF THE PROJECT COMPLETION.IT IS
CALCULATED AS LS-ES OR LPO-EPO
 DUMMY ACTIVITY----- DUMMY ACTIVITY DO NOT
CONSUME ANY RESOURCE AND TIME.IT IS USED TO
COMPLETE OR FULFIL THE COMPLETE
PRESENTATION OF INTERRELATIONSHIP OF ALL
ACTIVITIES.

9.  ACTIVITY IS REPRESENTED BY ARROW
 EVENT IS REPRESENTED BY ⃝ (NODE )
 DUMMY −IS REPRESENTED BY ---------- DOTTED
LINE
FIG SHOWS ACTIVITIES AND EVENTS
Tailevent Headevent
Activity
Start Completion

10. 1 1 2
4
3
5 6
A
B
D
C
E
ACTIVITY DESCRIPTION
A Cutting Plates
B Purchasing Nuts
C Purchasing Bolts
D Drilling Hole
E Assembly Plates with Nuts
and Bolts

11. Here B,C,D are the parallel activities and
successor activity of A.
Activity joining Nodes 4-5 and 3-5 are dummy
activities drawn just to complete network
diagram.
Activity D is predecessor of E. Since drilling
must be done first to insert bolt into Plate for
assemblies.

12.  PREPARE A LIST OF ACTIVITIES REQUIRED TO
COMPLETE THE PROJECT.
 INDICATE INITIAL EVENT AT LEFT HAND SIDE BY
NODE.
 INDICATE ACTIVITY BY ARROW,JOINING TWO
EVENTS.
 DETERMINE
PRECEDDING,SUCCEEDING,CONCURRENT
ACTIVITIES

13.  PERT IS A SPECIALISED TECHNIQUE OF MANAGING THE
HIGHLY SPECIALIZED PROJECT.
 THE TIME DURATION OF EACH ACTIVITY IS DETERMINED
WITH THREE PROBABILISTIC MEASURES
 OPTIMISTIC TIME (to)
 MOST LIKELY TIME (tm)
 PESSIMISTIC TIME (tp)
 EXPECTED TIME IS CALCULATED BY
te = t0 + 4tm + tp
6

14. CPM PEERT
IT IS ACTIVITY ORIENTED IT IS EVENT ORIENTED
HERE TIME ESTIMATES ARE
DETERMISTIC
HERE TIME ESTIMATES ARE
PROBALISTIC
ACTIVITIES ARE DIVIDED INTO
CRITICAL AND NON CRITICAL
CATEGORY
HERE SUCH DIVISION IS NOT
POSSIBLE
CPM USED FOR CONSTRUCTION
PROJECT
PERT USED FOR R&D PROJECTS

15. ACTIVITY DURATION (DAYS ) PREDECESSORS
A 8 ----
B 4 ----
C 6 ----
D 10 A
E 6 B
F 8 C
G 4 D,E,F

16. 1 3
2
4
5 6
B
C
E
A
G
6
4
8
6
F
8
D
10
4
Critical Path A-D-G
= 8 +10 +4
= 22 Days

17. ACTIVIT
Y
DURATIO
N
EST LST EFT LFT FLOAT
LST-EST
OR
LFT-EFT
A 8 0 0 8 8 0
B 4 0 8 4 12 8
C 6 0 4 6 10 4
D 10 8 8 18 18 0
E 6 4 12 10 18 8
F 8 6 10 14 18 4
G 4 18 18 22 22 0

18.  EST ---- IT IS THE EARLIEST TIME BY WHICH AN
ACTIVITY CAN BE STARTED.
 LST---- IT IS THE LATEST POSSIBLE TIME BY WHICH
ANY ACTIVITY CAN START WITHOUT DELAYING THE
PROJECT COMPLETION DATE.
 IT IS CALCULATED BY MOVING BACKWARD
DIRECTION IN NETWORK DIAGRAM

19. PROJECT COMPLETION T IME IS 22 DAYS
BY FOLLOWING NETWORK DIAGRAM WE CAN SOLVE THE FOLLOWING
DIAGRAMS
1.LST
FOR G= 22-4
=18 DAYS FOR C =22-(6+8+4)
FOR F =22-(4+8) =22-18
= 22-12 =04
= 10DAYS FOR B = 22-(4+6+4)
FOR E =22-(6+4) =22-14
=22-10 =08
=12 FOR A= 22-(8+10+4)
FOR D =22-(10+4) =22-22
=22-14 =0
=08

20.  TO FIND OUT LFT WE CAN SOLVE BY
 LFT= LST + DURATION OF THAT ACTIVITY.
 FOR A = 0+8=08
 FOR B=08+04=12
 FORC =04+06=10
 FOR D= 08+10 =18
 FOR E= 12+6=18
 FOR F=10+8=18
 FOR G=18+04=22

21.  TO CALCULATE EFT =EST+ DURATION OF THAT ACTIVITY
 FOR A 08+00= 08
 FOR B 00+04=04
 FOR C 00+06=06
 FOR D 08+10=18
 FOR E 06+04=10
 FOR F 08+06=14
 FOR G 18+04=22

22.  D AND G ARE HAVING 0 SLACKS BECAUSE THEY ARE ON
CRITICAL PATH.THAT MEANS THESE ACTIVITIES SHOULD NOT
BE DELAYED TO COMPLETE THE PROJECT IN TIME.
 CRITICAL PATH HAVE ZERO FLOAT SO THAT PROJECT CAN
NOT BE DELAYED IN TIME.