1 / 55

Unit-II-III Introduction to CPM-PERT

Unit-II-III Introduction to CPM-PERT. Mr. Rahul Mohare Faculty Datta Meghe Institute of Management Studies Atrey Layout, Nagpur. Overview. Project Management What is CPM? Procedure Examples Analysis What is PERT? Procedures Examples Analysis. Project Management.

bianca-mullins
Download Presentation

Unit-II-III Introduction to CPM-PERT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit-II-IIIIntroduction to CPM-PERT Mr. Rahul Mohare Faculty Datta Meghe Institute of Management Studies Atrey Layout, Nagpur

  2. Overview • Project Management • What is CPM? • Procedure • Examples • Analysis • What is PERT? • Procedures • Examples • Analysis Rahul Mohare-DMIMS

  3. Project Management • A project is a one-off undertaking, with a clear beginning and end, usually aimed at creating some useful change or adding value -- typically to build a new plant or create a new product. • Projects bring together resources such as people, money and material • These must be organized and managed to produce a defined result. • The hard part is to bring the project to completion within a specified time, at no more than a specified cost. • Various tools have been created to help project managers pull off this invariably challenging feat. Rahul Mohare-DMIMS

  4. Project Management (Contd.) There are three main points that are most important to a successful project: • A Project must meet customer requirements. • A Project must be under budget. • A Project must be completed on time. Rahul Mohare-DMIMS

  5. Characteristics of Project • The duration of a project lasts weeks, months, or even years. During such a long period, many changes may occur, most of which are difficult to predict. Such changes may have a significant impact on project costs technology, and resources. The longer the duration of the project, uncertain are the execution times and costs. • A project is complex in nature, involving many interrelated activities and participants from both within the organization and outside it (e.g., suppliers, subcontractors). • Delays in completion time may be very costly. Penalties for delays may amount to thousands of dollars per day. Completing projects late may result in lost opportunities and ill will as well. • Project activities are sequential. Some activities cannot start until others are completed. • Projects are typically a unique undertaking, something that has not been encountered previously. Rahul Mohare-DMIMS

  6. The Project Network Concurrent Activities • Activities can occur at the same time (concurrently). • A dummy activity shows a precedence relationship but reflects no passage of time. • Two or more activities cannot share the same start and end nodes. Expanded Network for Building a House Showing Concurrent Activities Rahul Mohare-DMIMS

  7. Introduction- CPM There are some formal tools to aid project management. Two of the best known tools that fill this need are PERT (Program Evaluation Review Technique) and CPM (Critical Path Method). CPM provides the following benefits: • Provides a graphical view of the project. • Predicts the time required to complete the project. • Shows which activities are critical to maintaining the schedule and which are not. Rahul Mohare-DMIMS

  8. Introduction (Contd.) 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 completion, • The dependencies between the activities Using these values, CPM calculates the longest path of planned activities to the end of the project, and the earliest and latest that each activity can start and finish without making the project longer. This process determines which activities are "critical" (i.e., on the longest path) and which have "total float" (i.e., can be delayed without making the project longer). In project management, a critical path is the sequence of project network activities which add up to the longest overall duration. This determines the shortest time possible to complete the project. Any delay of an activity on the critical path directly impacts the planned project completion date (i.e. there is no float on the critical path). Rahul Mohare-DMIMS

  9. Usefulness • CPM/PERT have been useful in planning costs, scheduling manpower and machine time. CPM/PERT can answer the following important questions: • What will be the project duration? What are the risks/ dependencies/ assumptions involved? • What are the critical activities which could delay the entire project if they were not completed on time? • What is the current status of the project i.e. Is the project on schedule, behind schedule or ahead of schedule? • If the project has to be finished earlier than planned, what is the best way to do this at the least cost? Rahul Mohare-DMIMS

  10. Terminologies used in CPM/PERT In order to explain the purpose, structure and operation of PERT and CPM, it is helpful to define the following terms: Activity: An activity is an effort that requires resources and takes a certain amount of time for completion. Examples of activities are: studying for an examination, designing a part, connecting bridge girders, or training an employee. Dummy Activity: An activity, which is used to maintain the pre-defined precedence relationship only during the construction of the project network, is called a dummy activity. Dummy activity is represented by a dotted arrow and does not consume any time and resource Critical activity: A critical activity is an activity that, if even slightly de-layed, will hold up the scheduled completion date of the entire project. Path: A path is a series of adjacent activities leading from one event to another. Critical path: A critical path is the sequence of critical activities that forms a continuous path between the start of a project and its completion. Rahul Mohare-DMIMS

  11. Event: An event is a specific accomplishment at a recognizable point in time; a milestone, a checkpoint; for example, passing a course at a university, submission of engineering drafts, completion of a span on a bridge, or the arrival of a new machine. Events do not have a time duration per se. To reach an event, all the activities that precede it must be completed. An event can be viewed as a goal attained, while the activities leading to it can be viewed as the means of achieving it. Event is indicated by circle in network diagram • Network: A network is a logical and chronological set of activities and events, graphically illustrating relationships among the various activities and events of the project. Rahul Mohare-DMIMS

  12. Building the Network • AOA Network • AON Network Rahul Mohare-DMIMS

  13. A Sample Set of Project Activities and Precedences

  14. Figure 1 Stage 1 of a Sample AON Network Rahul Mohare-DMIMS

  15. Figure 2 Stage 2 of a Sample AON Network Rahul Mohare-DMIMS

  16. Figure 3 A Completed Sample AON Network Rahul Mohare-DMIMS

  17. Figure 4 Stage 1 of a Sample AOA Network Rahul Mohare-DMIMS

  18. Figure 5 Stage 2 of a Sample AOA Network Rahul Mohare-DMIMS

  19. Figure 6a A Completed Sample AOA Network Rahul Mohare-DMIMS

  20. Figure 6b A Completed Sample AOA Network Showing the Use of a Dummy Task Rahul Mohare-DMIMS

  21. B A C A C B A C B A D B Dummy C D Situations in network diagram A must finish before either B or C can start both A and B must finish before C can start both A and C must finish before either of B or D can start A must finish before B can start both A and C must finish before D can start Rahul Mohare-DMIMS

  22. Rahul Mohare-DMIMS

  23. Example 1. Construct the CPM Network using the details below and determine the critical path Rahul Mohare-DMIMS

  24. CPM NETWORK A 1 2 Rahul Mohare-DMIMS

  25. CPM NETWORK 4 D A 1 2 7 C B 3 Rahul Mohare-DMIMS

  26. CPM NETWORK 5 E 4 F D 6 A 1 2 7 C B 3 Rahul Mohare-DMIMS

  27. CPM NETWORK 5 E G 4 F D 6 A 1 2 7 C B 3 Rahul Mohare-DMIMS

  28. CPM NETWORK 5 E G 4 F D 6 H A 1 2 7 C B 3 Rahul Mohare-DMIMS

  29. CPM NETWORK 5 E G 4 F D 6 H I A 8 1 2 7 C B 3 Rahul Mohare-DMIMS

  30. CPM NETWORK 5 E G 4 F D 6 H I A 8 1 2 7 C B J 3 Rahul Mohare-DMIMS

  31. CPM NETWORK with duration of each activity 5 E(3) G(2) 4 F(3) D(2) 6 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  32. To find the Critical Path LFT EST 5 E(3) G(2) 4 F(3) D(2) 6 0 0 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  33. LFT EST To find the Critical Path 5 E(3) G(2) 4 F(3) D(2) 6 0 0 0 1 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  34. LFT EST To find the Critical Path 5 0 3 E(3) G(2) 4 F(3) D(2) 6 0 0 0 1 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  35. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) D(2) 6 0 0 0 1 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  36. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) D(2) 6 0 0 0 1 0 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  37. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) D(2) 6 0 0 0 1 0 9 0 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) J(2) 3 Rahul Mohare-DMIMS

  38. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) D(2) 6 0 0 0 1 0 9 0 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  39. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) 0 12 D(2) 6 0 0 0 1 0 9 0 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  40. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 0 1 0 9 0 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  41. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 0 1 9 9 0 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  42. LFT EST To find the Critical Path 0 6 5 0 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 0 1 9 9 8 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  43. LFT EST To find the Critical Path 6 6 5 0 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 0 1 9 9 8 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  44. LFT EST To find the Critical Path 6 6 5 3 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 0 1 9 9 8 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  45. LFT EST To find the Critical Path 6 6 5 3 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 1 1 9 9 8 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 0 5 J(2) 3 Rahul Mohare-DMIMS

  46. LFT EST To find the Critical Path 6 6 5 3 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 1 1 9 9 8 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 10 5 J(2) 3 Rahul Mohare-DMIMS

  47. Critical Path 6 6 5 3 3 E(3) G(2) 4 F(3) 12 12 D(2) 6 0 0 1 1 9 9 8 8 H(1) I(3) A(1) 8 1 2 7 C(2) B(4) 10 5 J(2) 3 Critical Path 1 - 2 - 4 – 5 – 6 – 7 - 8 Critical Path A – B – E – G – H - I Rahul Mohare-DMIMS

  48. PERT • PERT is a manager’s tool for defining and coordinating moves for completing a project’s objectives on time. Its use is not restricted to the business world. • It can be applied to any endeavor which requires planned, controlled, and integrated work patterns. More often than not, diversified activities contribute to the difficulty in completing a project on schedule. • Many uncertainties are associated with these activities. PERT is a technique that statistically presents knowledge about these uncertainties. Rahul Mohare-DMIMS

  49. A technique -- that aids the decision-maker, but does not make decisions for him. • A technique -- that presents statistical information regarding the uncertainties associated with completing the different activities inherent in the project. • A method -- for focusing a manager’s attention on: • latent problems that require solutions, and • procedures and adjustments of time, resources, or performance, which may improve the probability of meeting all intended project completion dates. Rahul Mohare-DMIMS

  50. Benefits of CPM/PERT • Useful at many stages of project management • Mathematically simple • Give critical path and slack time • Provide project documentation • Useful in monitoring costs • Pert uses probabilistic time estimates to determine the probability that a project will be done by a specific time. • To reduce the length of the project (crashing), we need to know the critical path of the project and the cost of reducing individual activity times. Crashing activities that are not on the critical path typically do not reduce project completion time. • The critical chain approach removes excess safety time from individual activities and creates a project buffer at the end of the critical path. Rahul Mohare-DMIMS

More Related