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PERT Analysis for Project Scheduling

Chapter 4 focuses on Construction Planning and Scheduling, specifically using the Program Evaluation and Review Technique (PERT) to manage uncertain activity durations in projects. It outlines the necessity of estimating optimistic, most likely, and pessimistic times for activities, and how these estimates can be used to calculate expected project duration and associated probabilities. The chapter also includes examples and exercises to apply the concepts of PERT in project scheduling.

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0% found this document useful (0 votes)
6 views30 pages

PERT Analysis for Project Scheduling

Chapter 4 focuses on Construction Planning and Scheduling, specifically using the Program Evaluation and Review Technique (PERT) to manage uncertain activity durations in projects. It outlines the necessity of estimating optimistic, most likely, and pessimistic times for activities, and how these estimates can be used to calculate expected project duration and associated probabilities. The chapter also includes examples and exercises to apply the concepts of PERT in project scheduling.

Uploaded by

emandabelay15
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter 4 -

1
Construction Planning & Scheduling
Course: Construction Planning & Management [CEng4308]

Prerequisite: Contract, specification & Quantity Survey (CEng4207)

Program: Civil Engineering

Credit Hours: 3Hrs/week

Course Instructor: Zerihun M. (BSc. in CoTM. & MSc in CEM)


2 Presentation Outlines

z Stochastic Project Scheduling [PERT]

Compiled by Zerihun M
3 Program Evaluation and Review Technique

z In some situations, estimating activity duration becomes a difficult task

due to ambiguity inherited in and the risks associated with some

work.

z Thus, the duration of an activity is estimated as a range of time

values rather than being a single value.

z This section deals with the scheduling of the project under uncertain

activity duration. Compiled by Zerihun M


4 Program Evaluation and Review Technique

z PERT stands for Program Evaluation and Review Technique

z PERT introduces uncertainty into the estimates for activity and

project durations.

z Accounts for uncertainty in activity duration estimates.

z Provides estimates of project duration probabilities.

z It is used more in projects where time, rather than cost, is the major

factor. Compiled by Zerihun M


5 Program Evaluation and Review Technique

z Best used for highly uncertain projects:-

§ New product development

§ Unique or first-time projects

§ Research and development projects

§ Complex projects

§ Road projects
Compiled by Zerihun M
6 Program Evaluation and Review Technique

z Three time estimates are required to compute the parameters of an

activity’s duration distribution:

Optimistic Time ( T0 ):

z Estimate of the minimum time required for an activity if exceptionally

good luck is experienced.

z If everything goes according to plan.


Compiled by Zerihun M
7 Program Evaluation and Review Technique

Most Likely Time ( Tm )

? Most–likely or modal time (m) [Most realistic/probable estimate]:

? The time which the activity will take most frequently if repeated

number of times.

Compiled by Zerihun M
8
Program Evaluation and Review Technique

Pessimistic Time ( Tp) :

? The unlikely but possible performance time if whatever could go wrong ,

goes wrong in series. [Assuming very unfavorable conditions]

? In other words it is the longest time the can take.

Compiled by Zerihun M
9 Program Evaluation and Review Technique

z Based on the estimates, expected mean time (Te), standard

deviation (σ), and the variance (σ2) can be calculated as:

z The times are combined statically to develop the expected time (Te).

Compiled by Zerihun M
10 Program Evaluation and Review Technique

§ Standard deviation of the time of the time required to complete the

project

§ The variance is given by: (t –


2 = p o t ) 2

36
2 = variance
to = optimistic time
tp = pessimistic time Compiled by Zerihun M
11 Program Evaluation and Review Technique

z The total expected project duration is equal to the sum of the

expected durations of the activities along the critical path.

z The probability or chance of experiencing a particular activity

duration is based on a probabilistic distribution.

Compiled by Zerihun M
12 Program Evaluation and Review Technique

The normal distribution is a good approximation.


Compiled by Zerihun M
13 Program Evaluation and Review Technique

Probability of 1 in 100
Probability

of < a occurring Probability of 1 in 100 of > b


occurring

Activity Time

Optimistic Most Likely Pessimistic


Time (to) Time (tm) Time (tp)
Compiled by Zerihun M
14 Program Evaluation and Review Technique

z The expected project duration �� = ��, �


�=1

z The probability of meeting a specified completion date:


15
Program Evaluation and Review Technique
16
Program Evaluation and Review Technique
17
Program Evaluation and Review Technique
18 Program Evaluation and Review Technique
Example

JOB OPTIMISTIC MOST LIKELY PESSIMISTIC

1-2 1 4 7
1-3 5 10 15
2-4 3 3 3
2-6 1 4 7
3-4 10 15 26
3-5 2 4 6
4-5 5 5 5
5-6 2 5 8

Compiled by Zerihun M
19 Program Evaluation and Review Technique

1. Calculate expected time (te) for each activity

2. Draw the network & find expected project completion time.

3. Calculate the variance of critical activity

4. What is the probability that the project would be completed in 41

days.

Compiled by Zerihun M
Program Evaluation and Review Technique
20

§ Solution
Job Optimistic Most Pessimistic te = to + 4tm + tp
Likely 6
1-2 1 4 7 4
1-3 5 10 15 10
2-4 3 3 3 3
2-6 1 4 7 4
3-4 10 15 26 16
3-5 2 4 6 4
4-5 5 5 5 5
5-6 2 5 8 5
Program Evaluation and Review Technique
21

§ Solution -

Compiled by Zerihun M
Program Evaluation and Review Technique
22

§ Solution -

Activity To Tp Variance

1-3 5 15 2.77
3-4 10 26 7.11
4-5 5 5 0
5-6 2 8 1
Total = 10.88

10.88 = 3.30
Standard deviation =
Compiled by Zerihun M
Program Evaluation and Review Technique
23

§ Solution - Probability for completing the job in 41 days.


So, standard deviation = 3.30

Z = Due Date – Expected Date of Completion


S.D. of Critical Path
= 41 – 36
3.30
= 1.51
§ The tabulated value of corresponding to calculated value
i.e. 1.51 is 0.4345
Compiled by Zerihun M
24 Program Evaluation and Review Technique

Solution
1.51 Standard deviations
Probability
(T ≤ 41weeks)
is 93.45%
So probability is 0.5 + 0.4345 = 0.9345
i.e. 93.45% that project will be
completed on 41 day.

36 41 Time
Weeks Weeks
Compiled by Zerihun M
25 Program Evaluation and Review Technique
Exercise - 1
z The critical paths are given below
Critical Activity To Tm Tp

B 8 10 12
D 11 11 15
F 4 9 11
G 5 5 7
I 8 8 8
K 7 9 11
L 5 8 8
M 7 8 9
26 Program Evaluation and Review Technique
Based on the data given in exercise -1
z Find : Te, , and 2

z The probability that the project will be completed by:


a. End of day 69,
b. On day 66,
c. Before the start of day 67,
d. 64, 65, or 66 days,

z Date completion with at least 98% confidence.


Compiled by Zerihun M
27 Program Evaluation and Review Technique

Exercise -2 : Calculate the Project Completion Time, Variance,


Standard Deviation, Critical Path.

Compiled by Zerihun M
28 Program Evaluation and Review Technique

Compiled by Zerihun M
29

“Thank You ”
.
Next:

Chapter 5

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