Project Management Techniques: PERT and CPM Overview

Project Management
 
Project Controlling
Project Management Techniques: PERT And
CPM
The Framework  Of PERT And CPM
Network Diagrams And Approaches
Activity-on-Node
Activity-on-Arrow
Project Management
 
Determining The Project Schedule
Forward Pass
Backward Pass
Calculating Slack Time And Identifying The Critical
Path(s)
Variability In Activity Times
Three Time Estimates In PERT
Probability Of 
Project
 Completion
Management of Projects
 
Planning
Planning
 - goal setting, defining the project,
 - goal setting, defining the project,
team organization
team organization
Scheduling
Scheduling
 - relates people, money, and supplies
 - relates people, money, and supplies
to specific activities and activities to each other
to specific activities and activities to each other
Controlling
Controlling
 - monitors resources, costs, quality,
 - monitors resources, costs, quality,
and budgets; revises plans and shifts resources
and budgets; revises plans and shifts resources
to meet time and cost demands
to meet time and cost demands
 
Identifying precedence relationships
Sequencing activities
Determining activity times & costs
Estimating material and worker
requirements
Determining critical activities
Project Scheduling
 
Gantt chart
Critical Path Method
(CPM)
Program Evaluation
and Review Technique
(PERT)
Project Management
Techniques
A Simple Gantt Chart
 
Network techniques
Developed in 1950’s
CPM by DuPont for chemical plants (1957)
PERT by Booz, Allen & Hamilton with the U.S.
Navy, for Polaris missile (1958)
Consider precedence relationships and
interdependencies
Each uses a different estimate of activity
times
PERT and CPM
Six Steps PERT & CPM
 
1.
Define the project and prepare the work
breakdown structure
2.
Develop relationships among the activities
- decide which activities must precede and
which must follow others
3.
Draw the network connecting all of the
activities
Six Steps PERT & CPM
 
4.
Assign time and/or cost estimates to each
activity
5.
Compute the longest time path through
the network 
 this is called the critical
path
6.
Use the network to help plan, schedule,
monitor, and control the project
 
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Questions PERT & CPM
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Questions PERT & CPM
Can Answer
Advantages of PERT/CPM
 
1.
Especially useful when scheduling and controlling
large projects
2.
Straightforward concept and not mathematically
complex
3.
Graphical networks help to perceive relationships
among project activities
4.
Critical path and slack time analyses help pinpoint
activities that need to be closely watched
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
 
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
Limitations of PERT/CPM
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Explore the fundamentals of Project Management Techniques, focusing on PERT and CPM. Understand Network Diagrams, Forward and Backward Pass, Critical Path, Project Scheduling, and more. Learn about Gantt Charts, Six Steps of PERT & CPM, and their historical development in the 1950s. Gain insights into Planning, Scheduling, and Controlling in project management.


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  1. Project Management Project Controlling Project Management Techniques: PERT And CPM The Framework Of PERT And CPM Network Diagrams And Approaches Activity-on-Node Activity-on-Arrow DSCI 6213 1

  2. Project Management Determining The Project Schedule Forward Pass Backward Pass Calculating Slack Time And Identifying The Critical Path(s) Variability In Activity Times Three Time Estimates In PERT Probability Of Project Completion DSCI 6213 2

  3. Management of Projects Planning - goal setting, defining the project, team organization Scheduling - relates people, money, and supplies to specific activities and activities to each other Controlling - monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands DSCI 6213 3

  4. Project Scheduling Identifying precedence relationships Sequencing activities Determining activity times & costs Estimating material and worker requirements Determining critical activities DSCI 6213 4

  5. Project Management Techniques Gantt chart Critical Path Method (CPM) Program Evaluation and Review Technique (PERT) DSCI 6213 5

  6. A Simple Gantt Chart Time J F M A M J J A S Design Prototype Test Revise Production DSCI 6213 6

  7. PERT and CPM Network techniques Developed in 1950 s CPM by DuPont for chemical plants (1957) PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958) Consider precedence relationships and interdependencies Each uses a different estimate of activity times DSCI 6213 7

  8. Six Steps PERT & CPM 1. Define the project and prepare the work breakdown structure 2. Develop relationships among the activities - decide which activities must precede and which must follow others 3. Draw the network connecting all of the activities DSCI 6213 8

  9. Six Steps PERT & CPM 4. Assign time and/or cost estimates to each activity 5. Compute the longest time path through the network this is called the critical path 6. Use the network to help plan, schedule, monitor, and control the project DSCI 6213 9

  10. Questions PERT & CPM Can Answer 1. When will the entire project be completed? 2. What are the critical activities or tasks in the project? 3. Which are the noncritical activities? 4. What is the probability the project will be completed by a specific date? DSCI 6213 10

  11. Questions PERT & CPM Can Answer 5. Is the project on schedule, behind schedule, or ahead of schedule? 6. Is the money spent equal to, less than, or greater than the budget? 7. Are there enough resources available to finish the project on time? 8. If the project must be finished in a shorter time, what is the way to accomplish this at least cost? DSCI 6213 11

  12. Advantages of PERT/CPM 1. Especially useful when scheduling and controlling large projects Straightforward concept and not mathematically complex Graphical networks help to perceive relationships among project activities Critical path and slack time analyses help pinpoint activities that need to be closely watched 2. 3. 4. DSCI 6213 12

  13. 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 DSCI 6213 13

  14. 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 DSCI 6213 14

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