1. PB 602 OPERATION MANAGEMENT
PROJECT MANAGEMENT TECHNIQUES
PN SITI MARIAM BINTI SAMAT
Mohamad Ihsan Hakim Bin Rozali 16BPM12F2004
Muhamad Shaiful Nizam Bin Abd Rahman 16BPM12F2003
Raja Izzat Muqri Bin Raja Zahari 16DPM11F2033
2. PERT AND CPM
Program evaluation and review technique and the Critical
path method is develop in 1950s to help managers
schedule, monitor and control large and complex projects.
3. Définition PERT
• PERT stands for program évaluation and review
technique
• A Project management technique That employs three
times estimates for each activity
4. Definition CPM
• CPM stands for critical path method
• A Project management technique That uses only one
time factor per activity
5. Six basic step for PERT and CPM
1. Define the project and prepare the work breakdown structure
2. Develop the relationship among the activities. Decide which
activities must precede and which must follow others.
3. Draw the network connecting all the activities
4. Assign time and/or cost estimates to each activity
5. Compute the longest time path through the network. This is called
critical path.
6. Use the network to help plan, schedule, monitor and control the
project
6. Important of PERT and CPM
Answer the question of:
• When will the entire project be completed?
• Which are the noncritical activities?
• What is the probability that the project will be completed by a
specific date?
• At any particular date, is the project on schedule,behind
schedule or ahead of schedule?
• On any given time is the money spend equal to,less than,or
greater than budgeted amount?
7. Important of PERT and CPM
• Are there enough resources available to finish the project on
time?
• If the project is to be finished in a shorter amount of time, what
is the best way to accomplish this goal at the least cost?
9. Steps to Develop and Analyze a PERT
Network
STEP 1
Decompose project into individual job or tasks and
identify each of them.
STEP 2
Find out activities or tasks sequence and develop
network.
STEP 3
Estimate each activities duration time
10. STEP 4
Obtain expected duration time of each activity
STEP 5
Determine each activity time variance
STEP 6
Find out the critical path of the network under study.
Step 7
Calculate project completion probability on the
specified time (date).
11. Earliest start (ES) = earliest time at which an activity can start, assuming all
Activity Description Time (weeks)
predecessors have been completed
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
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
Total Time (weeks) 25
12. A
Activity Name or
Symbol
Earliest
Start ES
Earliest
EF Finish
Latest
Start
LS Latest
Finish
LF
Activity Duration
2
13. Forward Pass
Begin at starting event and work forward
Earliest Start Time Rule:
If an activity has only a single immediate
predecessor, its ES equals the EF of the
predecessor
If an activity has multiple immediate
predecessors, its ES is the maximum of all
the EF values of its predecessors
ES = Max {EF of all immediate predecessors}
14. Forward Pass
Begin at starting event and work forward
Earliest Finish Time Rule:
The earliest finish time (EF) of an activity is
the sum of its earliest start time (ES) and its
activity time
EF = ES + Activity time
15. Backward Pass
Begin with the last event and work backwards
Latest Finish Time Rule:
If an activity is an immediate predecessor for
just a single activity, its LF equals the LS of the
activity that immediately follows it
If an activity is an immediate predecessor to
more than one activity, its LF is the minimum
of all LS values of all activities that
immediately follow it
LF = Min {LS of all immediate following activities}
16. Backward Pass
Begin with the last event and work backwards
Latest Start Time Rule:
The latest start time (LS) of an activity is the
difference of its latest finish time (LF) and its
activity time
LS = LF – Activity time
17. AON Example
Milwaukee Paper Manufacturing's
Activities and Predecessors
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
18. AON Network for Milwaukee
Paper
G
E
F
H
A C
Start
B D
Arrows Show Precedence
Relationships
19. Activity Description Times(week)
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
20. Perth diagram for
Milwaukee Paper
E
7
4 8 13 15
4
F
3
G
5
H
2
4
8 13
13 15
10 13
8 13
4 8
C
2 4
2
D
3 7
4
0 2
B
0 3
3
Start
0
0
0
A
2
2 4
4 8
0 2
1 4
0 0
21. Example 2 :
lisa Sdn Bhd owns a data needed to complete a work on a project in Kulim Kedah Farm. Ask
your company Assistant Project Manager to prepare a working paper based on information
table
Activities Immediate
precedence
Activities
Optimistic
Time
(month)
Most Likely Time Pessimistic time
A - 4 5 12
B A 3 4.5 15
C A 2 3 4
D C 6 8 22
E B 4 6 8
F C 3 4 5
G D,E 1.5 3 4.5
H B 5 7 15
I H 3 4 5
J G,I 2 4 6
22. (I) The time required to complete each activity
(II) Construct the PERT network for each activity
(III) Count ES,EF,LS, and LF
(IV) The longest time to complete the project
i. The optimistic time (a)
ii. The pessimistic time(m)
iii. The most likely time(b)
t =a+4m+b
6
23. Activities Immediate
precedence
Activities
Optimistic
Time
(month)
Most Likely
Time
Pessimistic
time
Expected
time
A - 4 5 12 6
B A 3 4.5 15 6
C A 2 3 4 3
D C 6 8 22 10
E B 4 6 8 6
F C 3 4 5 4
G D,E 1.5 3 4.5 3
H B 5 7 15 8
I H 3 4 5 4
J G,I 2 4 6 4
25. Advantages of PERT/CPM
1. Especially useful when scheduling and
controlling large projects
2. Straightforward concept and not mathematically
complex
3. Graphical networks help highlight relationships
among project activities
4. Critical path and slack time analyses help
pinpoint activities that need to be closely
watched
26. Advantages of PERT/CPM
5. Project documentation and graphics point out
who is responsible for various activities
6. Applicable to a wide variety of projects
7. Useful in monitoring not only schedules but
costs as well
27. Limitations of PERT/CPM
1. Project activities have to be clearly defined,
independent, and stable in their relationships
2. Precedence relationships must be specified and
networked together
3. Time estimates tend to be subjective and are
subject to fudging by managers
4. There is an inherent danger of too much
emphasis being placed on the longest, or critical,
path
