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PROJECT MANAGEMENT

PROJECT MANAGEMENT. CPM/PERT The Mountain Group. Objectives. Describe how CPM/PERT have developed and merged together to provide a useful technique for managing projects. Gain a better understanding of simple CPM/PERT diagrams and calculations.

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PROJECT MANAGEMENT

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  1. PROJECT MANAGEMENT CPM/PERT The Mountain Group

  2. Objectives • Describe how CPM/PERT have developed and merged together to provide a useful technique for managing projects. • Gain a better understanding of simple CPM/PERT diagrams and calculations. • To be able to use POM for Windows, for quicker more accurate calculations.

  3. History • Developed in 1950’s • CPM by DuPont for chemical plants • PERT by U.S. Navy for Polaris missile

  4. CPM - Critical Path Method • Definition: In CPM activities are shown as a network of precedence relationships using activity-on-node network construction • Single estimate of activity time • Deterministic activity times

  5. PERT - Project Evaluation & Review Techniques • Definition: In PERT activities are shown as a network of precedence relationships using activity-on-arrow network construction • Multiple time estimates • Probabilistic activity times

  6. CPM/PERT • Overtime CPM and PERT became one technique • ADVANTAGES: • precedence relationships • large projects • more efficient

  7. The Project Network • Use of nodes and arrows • Arrows  • An arrow leads from tail to head directionally • Nodes  • A node is represented by a circle

  8. Activity on Node A completion of an activity is represented by a node Arrows represent order of events Activity on Arrow An arrow represents a task, while a node is the completion of a task Activity on Node & Activity on Arrow

  9. Dummy Activity • Shows precedence relationships • represented by dashed arrows • no passage of time

  10. Constructing a Network • Diagram on page 817 of the text

  11. Critical Path • Longest path through a network • minimum project completion time

  12. Earliest start time Earliest finish time Formulas Latest start time Latest finish time Formulas Activity Scheduling

  13. Activity Slack • Definition: Slack is the amount of time an activity can be delayed without delaying the project • Formula

  14. 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

  15. Limitations to CPM/PERT • Clearly defined, independent and stable activities • Specified precedence relationships • Subjective time estimates • Over emphasis on critical paths

  16. Questions Answered by CPM & PERT • Completion date? • On Schedule? • Within Budget? • Critical Activities? • How can the project be finished early at the least cost?

  17. ANY QUESTIONS???

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