PERT & CPM

CONSTRUCTION MANAGEMENT

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Project Planning and Network Analysis

Introduction: “Project management” deals with both ' Material' as well as ‘Humans factors’ to increase the
productivity.

Objective of a Project:

• It should be completed in minimum time with minimum capital investment.

• It should use available manpower and other resource optimally.

Elements of Project Management

i. Planning: Planning deals with defining of objectives of projects, identification of various activities and
identification of resources involved in completing those activities.

ii. Scheduling: Scheduling is the allocation of resource such as time, material, space, equipment and human
and technological effort.

 Finalizing the plan for functions mechanically.

 Assigning starting and completion dates to each activity to proceed in a logical sequence and in a
systematic manner.

iii. Monitoring & Controlling: This phase is the execution of planning and scheduling.

 If there is any deviation for the proposed planning and scheduling it also deals with rescheduling.

 Both planning and scheduling are undertaken before the actual start of the project.

Methods of Scheduling
Network Analysis:

• PERT

• CPM

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Charts:

• Bar chart/Gantt chart

• Milestone chart

• Linked Bar chart

Technical Used for Project Management

1. Bar Chart
Features of bar chart:
• It is pictorial chart.

• It has two coordinate axes, the horizontal coordinate represents the elapsed time and vertical coordinate
represents the job or activity to be performed.

• The beginning and end of each bar represents starting and finishing time of a particular activity
respectively.

• The length of bar shows the time required for completion.

Limitation of bar chart:

• Only major activities are shown in bar chart and sub-activities cannot be separated out. Hence effective
control over the activities in big project cannot be achieved.

• A bar chart does not show progress of work and hence it cannot be used as a control device.

• A bar chart is unable to depict interdependences of various activities clearly.

• Bar chart is not useful in the projects where there are uncertainties in activities such as in R and D projects.

• Bar chart cannot distinguish b/w critical and non-critical activities and hence resource smoothening and
resource levelling cannot be done.

Bar chart diagram are useful for only smaller and simpler conventional project especially construction and
manufacturing projects, in which time estimates can be made with fair degree of certainty.

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2. Mile-stone Chart
• It is a modification over original Gantt chart. Milestone are key events of main activities represented by
bar. Therefore, they give idea about completion of sub-activities.

3. Network Methods
• It is an outcome of the improvements in the milestone charts.

• They are called by various names such as PERT, CPM, UNETICS, TOPS and SCANS.

• All these have emerged from the two major network system

 PERT

 CPM

4. Network Diagram and Techniques

• It is the flow diagram of activities and events connected logically and sequentially.

• Network diagram are of two types:

 Activity-On-Arrow Network (A-O-A)

 Activity-On-Node Network (A-O-N)

Advantages of Network Method Over Bar Chart and Milestone Chart:

• Interrelationships b/w activities and events of a project are clear.

• The project can be treated as an integrated whole with all its sub-activities clearly related with each other.
It helps in controlling the project.

• Network method is useful for every complicated projects having large number of activities.

• It indicates time required b/w two activities in which rescheduling of project is possible.

• Time uncertainty is accounted for and so it is also useful for research and development projects.

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Elements of Network
1. Event
• An event represents either start or completion of an activity.

• Events are significant points in a project which act as control points of the project.

• An event is an instant of time and it does not require time or resources.

Following of an Event:

1. All parts assembled.

2. A budget prepared.

3. Construction completed.

Following cannot be events:

1. Prepare budget.

2. Assemble parts.

3. Excavate trench.

Event are represented by nodes in a network it may have any of the following shapes.

Most commonly adopted shape for events is circular shape

Tail event or the start event: It marks the beginning of an activity.

• If it is the first event of project, then known as ‘Initial or start event”.

• It has only outgoing arrow.

• Arrows represent job or activity of the project.

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Head event or the final event: The event which marks the completion of an activity is known as “Head event”.

• If this event represents completion of entire project, then it is called “Finish event”.

• It has only incoming arrows.

Dual role events: all events except the first and the last event of a project are dual role events. They have both

Testbook Point
• When a tail event represents beginning of more than one activity, then the event is said to occur when the
first activity starts from it.

• Similarly, when a head event occurs at end of more than one activity the event is said to have occurred
only when all the activities leading to it are completed.

incoming and outgoing arrows.

Event 2, 3, and 4 are dual role events

Successor events: The event or events that follow another event are called successor events to that event.

Event 2 and 3 are successor events of event 1

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Predecessor events: The event or events that occur before another event are called predecessor event to that
event.

Events 2, 3 are predecessor to event 5

2. Activity
Activity is actual performance of a job. It requires time and resources for its completion.

Examples of an activity:

 Excavate trench

 Mix concrete

 Prepare budget

• In A-O-A system (Activity On Arrow System) activity is represented by arrows between events while in A-O-
N (Activity On Node System) activities are represented by nodes. In A-O-N system, events have no places.

A & B activities are represented in two different systems

• The activities which can be performed simultaneously are and independent of each other called as parallel
activities.

• Activity or activities that can be performed after performance of other activity are known as successor
activities to that activity. Activity (F) is successor activity to activity (C) in below.

• Similarly, activity that are required to be performed before another activity can begin are called
predecessor activity to that activity (A) is predecessor activity to activity (D).

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3. Dummy
A dummy is a type of operation which neither requires time nor any resource, but it denotes dependency
among the activities.

• It is represented by dashed arrow. A dummy activity is shown.

Dummy is used to serve purposes:

Grammatical purpose: - To prevent two arrows having common beginning and common end.

Logical purpose: - To show relationship with other activities. Here, dummy is required to show that activity D
can start after Completion activities of A & B both.

• Unnecessary dummies should be avoided.

Rules of Network
• There can be only one initial and one final event.

• An event cannot occur unless all preceding activities are completed.

• An event cannot occur twice.

• Number of arrows should be equal to number of activities

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• Time should always flow from left to right.

• Length of arrow does not show any magnitude. Straight arrows should be taken as far as possible.

• Arrows should normally do not cross each other. If it is necessary to cross, then one should be bridged
over the other.

• No activity can start until its tail event has occurred.

Fulkerson’s rule for numbering the events: -

• The single initial event is numbered as 0, 1, 10, etc.

• All arrows emerging out of the initial event are neglected. Doing so the created one or more new initial
events are numbered as 2, 3, 4, or 20, 30, 40 etc.

• Above step is repeated unless all events are numbered.

Errors in Networks
 Looping error: - Loops should not be formed

• Dangling error: - Project is complete only when all its activities are complete but the duration of activity ‘R’
has no effect on the project time as shown.

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To avoid dangling error, the network must be examined in such a manner that all events except initial
and final events must have at least one activity entering and one activity leaving them.

3. Wagon Wheel Error:- Each of the activity P, Q, & R cannot start until all the activities A, B and C are
completed. But in reality, this may not be the situation. There is no error visible in the construction of
diagram but logical error has crept into it.

PERT and CPM

(1) Programme Evolution and Review Technique (PERT)
• PERT stand for “Project/Programme Evolution and Review Technique.”

• PERT involves uncertainty into the project completion time.

• It is a numerical technique used in the project in which time cannot be estimated accurately such as
research and development projects. It is an event oriented technique. Network Cost is assumed to be
directly proportion to time.

Three-time estimate are made in PERT: -

 Optimistic time (t0): - This is the minimum time in which an activity can be completed under the most Ideal
conditions.

 Pessimistic time (tp): - This is the Maximum time required to complete an activity under the worst possible
conditions.

 Most likely time (tm): - This is the time required to complete between t0 and tp. It is near to the expected
time.

(2) Mean Time, Standard Deviation and Variance of an Activity

(1) Mean time or Expected time or Average time: -

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• In PERT each activity is assumed to follow β-distribution curve of time.

• This is calculated from β-distribution curve of time at which probability of activity is just 50%. Time taken
by various activities follow β-distribution.

i.e. value of expected time is calculated by weighted average as,

(2) Standard Deviation of an Activity (σ)

• This is the measurement of uncertainty which is approximately one sixth of time range i.e.

• It can be seen above that ‘σ’ is affected relative distance from the most optimistic estimate to the most
pessimistic estimate.

• Therefore, wide range in time estimate represents greater uncertainty.

(3) Variance of an Activity (σ2)

• Square of Standard deviation is variance of an activity. It is to be noted that higher the uncertainty about a
process, greater is the standard deviation and Hence greater is the variance of a project.

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3) Central Limit Theorem

The theorem states that a project consist of a large Number of activities, where each activity has its own mean
time (te) standard deviation(σ), variance(σ2) and also its own β-Distribution curve, the distribution of time for
the project as a whole will approximately be a normal distribution i.e. mean time expected time of a project is

te = te1 + te2 + te3 + …... along critical path.

And the variance is

Along critical path

Hence standard deviation of the project as a whole following.

Along critical path

Critical Path: The time wise longest path is the critical path. In this path, any type of delay in any event will
cause delay in the project. These are shown by double lines or dark line in a Network.

• 1-2-3-4 is the critical path of Network.

Time Computation of Event:

(a). Earliest Expected Occurrence Time (EOT):

• The time at which an event can be expected to occur earliest.

• An event occurs when all the activities leading to it are completed.

• It is generally denoted by TE i.e. Calculated by forward path.

(There is only one path)

(when there are more than one path)

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Here,

(b) Latest allowable Occurrence Time (LOT): The latest allowable time at which an event must occur to keep
the project on Schedule.

• It is generally denoted by TL This is calculated through backward path.

(when there is only one path)

(when more than one path)

Where

• The latest allowable occurrence time of the finish event is equal to the schedule completion time of the
project.

Slack: Slack is defined as the difference between latest allowable time (TL) and earliest expected time (TE) of an
event.

 Slack for any event

 Slack for any event

• Slack may be positive, zero or negative.

• When ‘Slack is greater than zero’, it indicates project is ahead of schedule and availability of excess
resources such event is called sub-critical.

• If slack is zero, it indicates work is on schedule and events are critical. Resources are just adequate.

• If slack is Negativee, it indicates work is behind schedule and may cause delay in project completion. Event
are super critical. Extra resource is required.

• The path having minimum or zero slack value is the ‘Critical path’ which is also time wise longest path.

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Probability of a project to be completed in schedule Time:

• Probability of a project completed in expected time (Te) is just 50% and probability of completion increases
or decreases with increase or decrease of schedule time respectively.

• The probability distribution curve for the entire project is Normal distribution curve.

• Probability can be calculated by using probability factor (Z)

Value (Z) Probability (%)

0 50.00

+1 84.13

+2 97.72

+3 99.87

-1 15.87

-2 2.28

-3 0.13

It should be noted that:

• At Z = 0, Ts = Te and probability = 50%.

• At Z < 0, Ts < Te and Probability < 50% & Vice Versa.

• For Intermediate value of Z, Interpolation is required.

• The time and probability distribution for project as a whole is a Normal distribution.

• Area under the curve is equal to unity.

• 68% of the area lies with ‘te - σ’ & ‘Te + σ’ range. This is called probable range.

• Area bounded by (te + 2σ) and (te – 2σ) is about 95%.

• Area bounded by (te – 3σ) and (te + 3σ) is about 99.7% which is approximately equal to area bounded by t0
and tp which is maximum probable range.

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(4) Critical path Method (CPM)

This is based on deterministic approach in which only one-time estimate is made for activity completion.
Network diagram in CPM is activity oriented.

 It is activity oriented Network

 It is used for repetitive type of work & has deterministic approach.

(5) Comparison between PERT and CPM

PERT:
• It is event oriented.

• It has probabilistic approach. The probability distribution is of the type of β – distribution.

• Three type of time are estimated on the basis of which an expected time te is derived.

• Cost is directly proportional to time. Hence efforts are made to minimise the time so as to result in the
minimum cost.

• It is suitable for Newer type of project which have not been performed in the past and no exact
assessment of time and cost are available.

• Example: - Research work, launching of space aircraft, Development of missile programme etc.

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CPM:
• It is an activity oriented Network

• It has deterministic approach probability value approaches to one here.

• Only one time is calculated i.e. activity duration ‘t’

• Time and cost are related by the following curve given. This curve optimum time is derived which results in
the minimum cost.

• It is suitable for repetitive type of work where time and cost can be evaluated with fair degree of accuracy.

• Example: - Construction work, Maintenance work, Civil Engineering projects.

Time Cost Relationship Diagram

Event Time in CPM: -

• Earliest occurrence time (TE): Time at which an event may occur as early as possible.

• Latest allowable time (TL): Time at which event may occur as late as possible without delaying the overall
project completion time.

Activity Time in CPM: -

• Earliest start time (EST): It is the earliest possible time at which an activity can be started for an activity i–j;
earliest event time of event i, i.e. is EST of activity i-j.

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• Earliest finish time (EFT): - It is the earliest possible time by which an activity can be completed for an
activity i-j.

Here, = Activity duration

• Latest start time: - This is the latest possible time at which an activity can be started without delaying the
overall project.

LST = LFT – Activity duration

Here, LFT = Latest finish time of activity i-j =

• Latest finish time (LFT): - This is latest time by which an operation or activity must be completed without
delaying the project. for an activity i-j, latest allowable time of Head event j.

i.e. TLj is the LFT of activity i-j.

LST of an activity is to be calculated on the basis of latest occurrence time at its head event and not on the
brass of latest occurrence time of the trail event.

Float
• It is associated with activity times.

• It is analogous to slack of events in PERT.

• It is the range within which start or finish time of an activity may fluctuate affecting the project completion
time.

Floats are of following types

i. Total Float: - The time span by which starting or finishing of an activity can be delayed without delaying
the completion of the project

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• It is the maximum available time in excess of the activity completion time.

• Total float is given by FT

FT = LFT – EFT
Or

FT = LST – EST

• Total float of an activity affects total float of succeeding as well as preceding activities.

ii. Free float (FF): - The delay which can be made without delaying succeeding activities. It affects only
preceding activities. It is denoted by FF. It is assumed that all activities start as early as possible.

Free float is given by

FF = FT – Sj

Here, Sj = Head event slack.

iii. Independent float (FID): - It is minimum excess time which exists without affecting any of succeeding or
preceding activities. It is denoted by FID. It is the excess of minimum available time over the activity
duration.

FID = FF – Si

Here, Si = Tail event slack.

iv) Interfering float (FINT): - It is similar to Head event slack

FINT = Sj = FT - FF

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Critical Path
• In CPM analysis, the path along which total floats are zero or minimum, is called as critical path.

• All activities on this path are critical. There can be more than one critical paths.

Subcritical Path
• It is the path joining all subcritical activities. For a subcritical activity total float is greater than zero.
i.e. FT > 0

Super Critical Path

• It is the path joining all super critical activities. For a super critical activities total float is less than zero.
i.e. FT < 0

Critical Path Method (CPM) System

Two systems are used in CPM analysis: -

1) A-O-A System (Activity on arrow system):

• An activity is graphically represented by an arrow.

• The tail end and head end of arrow represent start and finish of an activity respectively.

2) A-O-N System (Activity on node system or precedence diagram):

• Activity is represented by a circle or a node. Events have no places. Arrows are used only to show the
dependency relationship between activity nodes.

• When two or more activity start parallel then an activity called DEBUT (D0) is provided at the beginning.
Likewise, a finish activity (F0) is provided at the end when more than one activity finish parallel. Activities
D0 & F0 has zero duration.

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Advantages of A-O-N System Over A-O-A System

• A-O-N system eliminates the use of dummy activities.

• It is more helpful for projects having more overlapping activities.

• It is a self-sufficient and self-explanatory. All activity time (EST, EFT, LST, LFT) are represented on the
diagram.

• Revision and modification are easier.

• Pre-operations and post-operations of activities under consideration are distinctly visible.

• Examples:

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