Lesson Objectives:

After reading this lesson, you should be able to:

Describe the need for and purpose of a PERT chart Explain the parts of a PERT chart Explain the pros and the cons of using a PERT chart Create a PERT chart for a project

Another planning and controlling tool is the Program Evaluation Review Technique (PERT). This tool can also be referred to as the Critical Path Method (CPM). Both PERT and CPM can be used interchangeably, but for the purposes of this lesson, only the PERT term will be utilized. Primarily, the PERT chart identifies the critical path for the project. The critical path is the sequence of tasks where there is no slack time. In other words, if any task on the critical path takes longer than expected, the end date of the project will be affected. This only applies if there are tasks that can be completed in parallel. For example, all of the tasks in Figure 6 occur sequentially and therefore every task is part of the critical path.

Figure 6: Simple Gantt Chart In Figure 7, tasks 6 and 7 occur simultaneously and therefore one of these tasks is on the critical path and the other one is not on the critical path.

Figure 7: Project Tasks By inspection, in Figure 7, task 7 takes longer so this task is on the critical path whereas task 6 is not on the critical path. If task 7 takes six days instead of five, it is clear that the end date of the project will be affected. On the other hand, if task 6 takes four days instead of two, there will be no impact to the final completion date of the project. The PERT chart will also identify the slack time of tasks that are not on the critical path. Any task not on the critical path has some slack time. Referring back to Figure 7, task 6 is estimated to take two days but does not have to be completed until task 7 is completed which is estimated at five days. Therefore, task 6 can take up to five days and still not impact the schedule. Therefore, task 6 has a slack time of three days (five days max and two days estimated). Figure 8 shows a simple PERT chart of the project in Figure 7.

Figure 8: PERT Chart A simple PERT chart is shown in Figure 9. There are four tasks in this project. Task A takes one day to complete. Task B takes 4 days to complete and can be executed in parallel with Task C which takes 11 days to complete. When tasks B and C are completed, task D can be executed which will take 3 days to complete.

Figure 9: Simple PERT Chart There are various formats for a PERT chart. Figure 9 was created with a template from Microsoft Visio. A similar format can be created in Microsoft Project through its customization features. As the guide in Figure 9 shows, there are seven pieces of information for each task. Like the Gantt chart, each task has a name and duration. The duration is typically expressed in days. The early start and early finish blocks are filled out first starting with the first task and continuing sequentially until the last task is completed. The first task starts at day zero (0) which is the early start. The early finish can be found by adding the task duration to the early start. The early start for the next task is the same as the early finish for the previous task. If one task feeds into multiple tasks, the early start of the multiple tasks will be the same as is the case with tasks B and C in Figure 9. When two or more tasks feed into a single task, the early start of the single task will be the latest early finish for the preceding tasks. For example, tasks B and C feed into task D in Figure 9. Task B has an early finish of 5 and task C has an early finish of 12. The latest early finish is 12, so that is the early start of task D.

Once the early start and early finish blocks of all the tasks are completed, then the late start and late finish blocks can be determined starting with the final task. The late finish block is determined first. For the final task, the late finish and the early finish are the same. The late start can be found by subtracting the task duration from the late finish. For example, in Figure 9 the late finish for task D is 15 because it is the same as the early finish for the final task. The late start is calculated by subtracting the task duration (3) from the late finish (15) which yields 12. The slack is determined by subtracting the early start from the late start (or the early finish from the late finish). For items on the critical path, the early days and late days will be the same and there will be no slack time. While working backwards, the late start of a task is the same as the late finish of the previous task or tasks. When there is more than one task with different late starts which is derived from a single task, the earliest late start is used as the late finish of the previous task. As an example, tasks B and C in Figure 9 have late starts of 8 and 1 days respectively. The late finish of task A will be the lower of these two numbers (1). When the PERT chart is completed, the critical path is the tasks without slack time. In the case of Figure 9 the critical path is tasks A, C and D. If any one of the tasks would take longer than the estimated time, the end date of the project would be affected. Task B is not on the critical path. This task could take longer (up to 7 days longer) and it would not affect the end date of the project. From a project management point of view, the tasks on the critical path need to be tracked more closely than the tasks that are not on the critical path. This allows the project manager to focus his or her time with the areas that are most likely to affect the schedule. The PERT chart is more complicated than the Gantt chart but does provide the project manager with more information. The PERT chart is typically not used in presentations or in meetings with stakeholders due to its complexity. Fortunately, project management tools such as Microsoft Project can be used to show both the Gantt and the PERT view so a project manager would not necessarily need to make two separate diagrams.

A Program Evaluation and Review Technique (PERT) is a graphic organizer that can help you plan your project and keep to deadlines. The PERT diagram includes completion times for all sub projects, with numbered milestones that progress from left to right across the chart. The lowest numbered node is the beginning of the project; the highest numbered node is the end. The PERT chart also determines the project start and end times.

Instructions
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1
List each sub project with an estimated time line for completing them.

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Sort the list of sub projects such that no sub project comes before a prerequisite on the list. For example, digging the foundation and running the electrical wire are both sub project in the construction of a new home, but it's not possible to run wiring before the foundation is dug, so digging the foundation goes first.

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3
Number each of the sub projects, with the first sub project being the lowest number, and the last sub project being the highest number.

4
Draw a diagram with each of the listed sub projects, starting on the left with the first sub projects, and going farther right for dependent sub projects. Draw arrows between sub projects that are prerequisites for other sub projects.

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How to Create a Gantt Chart

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Simple Gantt Chart

A Gantt Chart is a tool used for scheduling projects, events or personal milestones or goals. It is created to show the order of actions (tasks) that must be done before a project can be considered complete. Henry Gantt, a mechanical engineer, invented the Gantt chart in the 1910s. He designed his chart so that production foreman could watch schedules to ensure the work was being done on time. Gantt charts were used when building the Hoover Dam and for organizing large projects.

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How to Create a Gantt Chart in Microsoft Excel 2007

Things You'll Need

Graph paper and markers Dry-erase board and markers Spreadsheet software Show (1) More

Instructions
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1
Think in reverse. For example, July 30th is the completion date. There are 10 tasks that must be completed before that time. The first step is to decide what task must be completed last and what task must be completed first. Then decide what task cannot be completed until another task is done. Tasks that cannot be started until another is complete are known as interdependency tasks.

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Decide if a simple or complex Gantt chart is needed. A simple Gantt chart contains columns for the task, responsible person and dates before completion. A complex chart can include those columns plus start and end dates, number of days it will take to complete the task, number of days that have elapsed, sub-tasks and percent complete.

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Put the task name in the left-most column (one task per row), the responsible person's name in the second column and arrange the remaining columns by month, day or week. For a complex chart, include columns for percentages or other information deemed important for tracking the project.
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Draw a line or hollow box to show the expected length of time each task will take, lining up the box under the appropriate start and end dates. Consider the interdependency tasks and arrange them underneath each other and under their main task. Stand-alone tasks can be adjusted throughout the project life for the best use of resources and time.
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Remember to allow for flexibility in your project time-line. If the final due date is July 30th, it is generally a good idea to plan its completion two to three days earlier. This allows for the possibility of employee illness or another unplanned event.
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Color in the task indicated on the chart as it is completed or use a different color to indicate the task is complete. The date of completion may be added to the chart, if so desired. If the project is long, the manager may consider small celebratory steps along the way in order to encourage employees to stay on track.
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Review the time-line regularly (such as daily) to ensure the projects tasks are being completed in a timely manner. If the project is running behind schedule, rearranging tasks might be necessary. Conversely, if the project is ahead of schedule, rearrange some tasks that might be more difficult to ensure meeting the original deadline.

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How to Make a Gantt Chart

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Project management requires careful planning and execution.

A Gantt chart provides a graphic representation of a project to be completed within a specific time period. The chart shows the required tasks as part of a horizontally-aligned bar graph. The vertical axis of the chart holds the tasks required for project completion. The horizontal axis contains the project start date, task start and end dates as well as the end date of the project. A bar represents each task. The bars fall on the continuum of a time-line to show the task beginning, duration and end.

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Things You'll Need

Project start date Project end date Task list Show (1) More

Instructions
1. Outlining Your Project
o

1 2

Document an overview or synopsis of the project before plotting a Gantt chart.

Make a list of the tasks required for completion of the project and the dates that each of these tasks needs to be completed by.
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3 4 5

Create a new spreadsheet.

List each of the tasks that must be completed during the course of the project in the far lefthand column. Skip a row at the end of the list.
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Place the dates of completion for each of the required tasks in a cell on the following row. Allow spaces between the date cells if they are needed for readability.
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Select the cell that represents the start date of the task, click the "Format Cells" function and fill the cell with color to indicate the beginning of a task. Repeat this action across the row.

Click and drag the mouse over a group of cells to select the cells all the way to the project's end date. Each task needs to be plotted according to its beginning date and end date.
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Format the text with bolding or italics; add headings and shading to enhance the visual appeal and readability of the chart; or create borders if appropriate.

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How to Create a Simple Gantt Chart

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Gantt charts can help managers visualize project activities.

Henry Laurence Gantt (1861 to 1919) developed the Gantt Chart as a tool widely used in the field of Project Management today. It shows a timeline for when projects are to start and end, and the length of time that each piece of the project will take. Since many of the project's tasks are dependent upon completion of a prior task, a project manager can use a

Gantt Chart -- which is also known as a Gantt Diagram -- to show which components of the project can be worked on simultaneously and which ones have to be completed sequentially.

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How to Produce a Gantt Chart

1. o

How to Create Gant Charts

Instructions

Use an Excel spreadsheet or graph paper to list a column of all of the tasks involved with the project. Estimate the time it will take to complete each task and note that in the cell next to the task name. One of the mistakes that people make frequently is underestimating times. They may fail to take into consideration that emergencies, interruptions and accidents may happen. Deliveries may not be made on schedule, people may not be available for the work, or higher priority tasks may have to be completed before this one. Equipment may break down, or you may have to reject some work because it doesn't meet your standards. Double the times that you think tasks will take to be safe from losing credibility when the job takes longer than expected.
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Add administrative duties and meetings to the lists of tasks, estimating the time they will take.
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3 4

Consider your budgetary guidelines and the how far into the project to purchase the materials needed to proceed with the project.
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List dates across the top of your graph paper or in separate cells in a top row of your Excel spreadsheet. Start with the date you create your chart and end with your deadline. If planning activities that will take only hours to complete, label your top row by hours, not dates.
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Color the cells for each task in the row that corresponds with the column of the expected start time. Color all of the cells that correspond with times the task will be worked on. Color all the way to the column of the expected end date.
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Monitor your Gantt chart as the project progresses to see how tightly the task completion stays to the schedule. Make adjustments to fit necessary changes.

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A Program Evaluation and Review Technique (PERT) chart is used in project management to plan projects. The chart shows the different tasks needed to complete the project, the duration of those tasks, and which tasks are dependent on each other. The completed chart looks like an interconnected web of nodes and lines. While PERT charts are suitable for any size project, larger projects (projects that would be difficult to fit on one page) are usually broken up into smaller PERT charts.

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How to Make a PERT Chart

1. o

How to Make a PERT Chart in Excel

Instructions

1 2

List all the tasks required to complete your entire project. Also include time estimates next to each task for how long it is expected to take.
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Sort the tasks in order of dependency. For example, if you're planning to open a bakery, two tasks might be to install a gas line in the kitchen, and install the oven. You can't install the oven before the gas line is installed, so installing the gas line is listed before installing the oven on the list.
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Number the sorted task list starting with the smallest number on the first task, and ending with the largest number on the last task. You're now ready to complete your PERT Chart.

How to Plan a Pert Chart

1 2

List all the tasks required to complete your entire project. Also include time estimates next to each task for how long it is expected to take.
o

Sort the tasks in order of dependency. For example, if you're planning to open a bakery, two tasks might be to install a gas line in the kitchen, and install the oven. You can't install the oven before the gas line is installed, so installing the gas line is listed before installing the oven on the list.
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Number the sorted task list starting with the smallest number on the first task, and ending with the largest number on the last task. You're now ready to complete your PERT Chart.

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How to Calculate the Duration of a PERT Chart

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The duration in a PERT chart is best applied to new activities in which the time is uncertain

The Program Evaluation and Review Technique (PERT) uses a method called three points estimating to determine the approximate duration of activities in a project. This approach is more suitable for projects in which there is a large degree of uncertainty in the estimated time to complete tasks, and is commonly applied in research and development. The formula for three points estimating is derived from probability theory and therefore this technique is sometimes referred to as a probabilistic method.

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Six Methods for the Estimation of Activity Duration in Project Management

1. o

How to Calculate Probability in PERT

Instructions

Estimate the most likely time to do each of the activities. There are many techniques available that can aid in this process, such as analogous and parametric estimating. In all methods labor is also factored into the estimate. Analogous estimating is where estimates are made based on past experience with similar activities. In parametric estimating the time to complete each activity is calculated based on known time estimates. For example, you may know that it takes five minutes to complete a task, which allows an accurate estimation of the duration if this task is to be performed multiple times. When factoring in labor, it is inadvisable to assume constant 100-percent productivity.
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Estimate the optimistic time and the pessimistic time. The pessimistic time is the longest time that the activities could take and the optimistic time is the quickest. These times can be estimated by applying similar techniques to those used in step one, or they may come about as a consequence of step one. For example, there may be inherent uncertainties attached to the estimates of the most likely time.

Calculate the duration using the most likely time and the optimistic and pessimistic times. The formula is: duration = ( Optimistic + 4*(Most likely) + Pessimistic ) / 6 The duration is also sometimes referred to as the expected time. This is the value that is used in a PERT chart, which is used in the overall project scheduling process.

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