This document discusses project management techniques like PERT and CPM. It explains that PERT and CPM use network diagrams to analyze the sequence and duration of project activities to determine the critical path and project duration. The document provides examples of network diagrams and describes key aspects of PERT/CPM like crashing activities to shorten the project duration.

1. Project Management
PERT/CPM
BILAL MUSTAFA
12-BHM-507
MECHANICAL PRODUCTION

2.  Discuss the behavioral aspects of projects in terms
of project personnel and the project manager.
 Discuss the nature and importance of a work
breakdown structure in project management.
 Give a general description of PERT/CPM
techniques.
 Construct simple network diagrams.

3.  List the kinds of information that a PERT or CPM
analysis can provide.
 Analyze networks with deterministic times.
 Analyze networks with probabilistic times.
 Describe activity “crashing” and solve typical
problems.

4. Unique, one-time operations designed toUnique, one-time operations designed to
accomplish a specific set of objectives in aaccomplish a specific set of objectives in a
limited time frame.limited time frame.
Build A
A Done
Build B
B Done
Build C
C Done
Build D
Ship
JAN FEB MAR APR MAY JUN
On time!

5. What are the Key Metrics
Time
Cost
Performance objectives
What are the Key Success Factors?
Top-down commitment
Having a capable project manager
Having time to plan
Careful tracking and control
Good communications

6. What are the Major Administrative Issues?
Executive responsibilities
Project selection
Project manager selection
Organizational structure
Organizational alternatives
Manage within functional unit
Assign a coordinator
Use a matrix organization with a project leader

7. What are the tools?
Work breakdown structure
Network diagram
Gantt charts
Risk management

8. MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Locate new
facilities
Interview staff
Hire and train staff
Select and order
machine
Installation /
Remodel
Move in/startup
Gantt Chart

9. Deciding which projects to implement
Selecting a project manager
Selecting a project team
Planning and designing the project
Managing and controlling project resources
Deciding if and when a project should be
terminated

10. Responsible for:
Work Quality
Human Resources Time
Communications Costs

11. Temptation to understate costs
Withhold information
Misleading status reports
Falsifying records
Comprising workers’ safety
Approving substandard work

12. Concept
FeasibilityFeasibility
PlanningPlanning
ExecutionExecution
TerminationTermination
Management

13. Project XProject X
Level 1
Level 2
Level 3
Level 4

14. PERT: Program Evaluation and Review Technique
 Program (Project) Evaluation and Review Technique
PERT is a project management tool used to schedule, organize,
and coordinate tasks within a project. It is basically a method to
analyze the tasks involved in completing a given project, especially
the time needed to complete each task, and to identify the
minimum time needed to complete the total project.
Graphically displays project activities
Estimates how long the project will take
Indicates most critical activities
Show where delays will not affect project

15. Prediction of deliverables
Planning resource requirements
Controlling resource allocation
Internal program review
External program review
 Performance evaluation
Uniform wide acceptance

16. In construction activities
Transportation activities
In oil refineries
Computer system-
 For manufacturing electric generator machines
Medical and surgical sector
Library activities

17. 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 is research work

18. Network (precedence) diagram – diagram of
project activities that shows sequential
relationships by the use of arrows and nodes.
Activity-on-arrow (AOA) – a network diagram
convention in which arrows designate activities.
Activity-on-node (AON) – a network diagram
convention in which nodes designate activities.
Activities – steps in the project that consume
resources and/or time.
Events – the starting and finishing of activities,
designated by nodes in the AOA convention.

19. Path
Sequence of activities that leads from the starting
node to the finishing node
Critical path
The longest path; determines expected project
duration
Critical activities
Activities on the critical path
Slack
Allowable slippage for path; the difference the
length of path and the length of critical path

20. Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
B, which comes
before C
(a) A B C
BA C
A and B must both
be completed
before C can start
(b)
A
C
C
B
A
B
B and C cannot
begin until A is
completed
(c)
B
A
C
A
B
C

21. Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
C and D cannot
begin until A
and B have
both been
completed
(d)
A
B
C
D B
A C
D
C cannot begin
until both A and B
are completed; D
cannot begin until
B is completed. A
dummy activity is
introduced in AOA
(e)
CA
B D
Dummy activity
A
B
C
D

22. Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
B and C cannot
begin until A is
completed. D
cannot begin
until both B and
C are completed.
A dummy
activity is again
introduced in
AOA.
(f)
A
C
DB A B
C
D
Dummy
activity

23. 1
2
3
4
5 6
Locate
facilities
Order
setup
Interview
Hire and
train
Remodel
Move
in
AOA

24. 1
2
3
5
6
Locate
facilities
Order
setup
Interview
Remodel
Move
in
4
Hire and
train
7S
AON

25. Deterministic
Time estimates that are fairly certain
Probabilistic
Estimates of times that allow for variation

26. Network activities
ES: earliest start
EF: earliest finish
LS: latest start
LF: latest finish
Used to determine
Expected project duration
Slack time
Critical path

27. Perform a Critical Path AnalysisPerform a Critical Path Analysis
Table 3.2Table 3.2
Activity Description Time (weeks)
A Build internal components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
Total Time (weeks) 25
Earliest start (ES) = earliest time at
which an activity can start, assuming
all predecessors have been completed
Earliest finish (EF) = earliest time at
which an activity can be finished
Latest start (LS) = latest time at
which an activity can start so as to not
delay the completion time of the entire
project
Latest finish (LF) = latest time by
which an activity has to be finished so
as to not delay the completion time of
the entire project

28. Activity Description
Immediate
Predecessors
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G
Milwaukee Paper Manufacturing'sMilwaukee Paper Manufacturing's
Activities and PredecessorsActivities and Predecessors

29. A
Start
BStart
Activity
Activity A
(Build Internal Components)
Activity B
(Modify Roof and Floor)

30. C
D
A
Start
B
Activity A Precedes Activity C
Activities A and B
Precede Activity D

31. G
E
F
H
CA
Start
DB
Arrows Show Precedence
Relationships

32. HH
(Inspect/(Inspect/
Test)Test)
77DummyDummy
ActivityActivity
66
FF(Install
(Install
Controls)
Controls)
EE
(BuildBurner)(BuildBurner)
GG
(Install
(Install
Pollution
Pollution
Device)
Device)
55
DD
(Pour(Pour
Concrete/Concrete/
Install Frame)Install Frame)
44
CC
(Construct(Construct
Stack)Stack)
11
33
22
BB(M
odify
(M
odify
Roof/Floor)
Roof/Floor)
AA
(B
uild
Internal
(B
uild
Internal
C
om
ponents)
C
om
ponents)

33. Optimistic time
Time required under optimal conditions
Pessimistic time
Time required under worst conditions
Most likely time
Most probable length of time that will be required

34. PERT makes two more assumptions:PERT makes two more assumptions:
 Total project completion times follow aTotal project completion times follow a
normal probability distributionnormal probability distribution
 Activity times are statisticallyActivity times are statistically
independentindependent

35. Crash – shortening activity duration
Procedure for crashing
Crash the project one period at a time
Only an activity on the critical path
Crash the least expensive activity
Multiple critical paths: find the sum of crashing the
least expensive activity on each critical path

36. Projects are a unique set of activities
Projects go through life cycles
PERT and CPM are two common techniques
Network diagrams
Project management software available