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PERT & CPM Project Management Analysis

The document outlines a project management scenario involving PERT and CPM techniques to analyze activity durations, critical paths, and probabilities of project completion within specified timeframes. It includes calculations for expected project duration, variance, and standard deviation, along with a discussion on project crashing and budgeted cost schedules. The results indicate a 20% chance of completing the project in 18 days or less and a 99.96% chance of taking longer than 15 days.

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Ayanda Nsele
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0% found this document useful (0 votes)
4 views8 pages

PERT & CPM Project Management Analysis

The document outlines a project management scenario involving PERT and CPM techniques to analyze activity durations, critical paths, and probabilities of project completion within specified timeframes. It includes calculations for expected project duration, variance, and standard deviation, along with a discussion on project crashing and budgeted cost schedules. The results indicate a 20% chance of completing the project in 18 days or less and a 99.96% chance of taking longer than 15 days.

Uploaded by

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

PERT & CPM Activity

Activi Predeces a m b
ty sor

A 4 6 8

B 6 8 10

C A 2 3 4

D A 3 5 7

E B 1 2 3

F C 2 4 6

G DEF 4 6 8

a) Develop a project network for this problem.

(b) Determine the earliest and latest start and finish times, the critical path, the expected
project duration, variance, and standard deviation.

(c) Determine the probability that the project will be completed in 18 days or less.

(d) Determine the probability that the project will take longer than 15 days.

ACTIVIT ACTIVITY TIME E E L L SLAC σ VARIANCE


Y TE = (a + 4m S F S F K [[(b-a)]/6]2
+ b) / 6
A [[(8 -4)]/6]]2 =
((4 +4(6)+8) )/6 = 6 0 6 0 6 0 0.66
0.44
B 8 0 8 3 11 3 0.66 0.44
C 3 6 9 6 9 0 0.33 0.11
D 5 6 11 8 13 2 0.66 0.44
E 2 8 10 11 13 3 0.33 0.11
F 4 9 13 9 13 0 0.66 0.44
G 6 13 19 13 19 0 0.66 0.44
Project completion time 19 days
Project Variance 1.43
Project Standard deviation 1.20
Critical path A-C-F-G

ACT time
ES EF
LS LF
Activi Predeces ACTIVIT
ty sor Y TIME

A 6

B 8

C A 3

D A 5

E B 2

F C 4

G DEF 6

Start

B 8 E 2
0 8 8 10
3 11 11 13
C 3 F 4
6 9 9 13
A 6 6 9 9 13
0 6
0 6
D 5 G 6
6 11 13 19
8 13 13 19
c. Z = DUE DATE – EXPECTED DATE OF COMPLETION/ PROJECT STANDARD
DEVIATION

= (18 -19)/1.20

= -0.83 value under the curve

= 1- 0.79673 = 0.20 *100 = 20%

Answer
Z= 18-19/1.20= -0.83= 0.79673

1-0.79673= 0.20 =
= 20%

18 19

There is 20% chance The probability that the project will finish in 18
days or less is approximately 20%. This indicates that there is a
somewhat low but notable chance that the project will be completed
within that timeframe (3)

d. (15 – 19)/ 1.20 = - 3.33 value under the curve 0.99957 = 99.96%
Answer
Z= 15-19/1.20= -3.33 = 0.99957

= 99.96%

15 19

There is 99.96% chance The probability that the project will finish in
15 days or more is approximately 99.96%. This indicates that there is a
high chance that the project will be completed within that
timeframe(3)
Project crashing

A marketing firm is planning to conduct a survey of a segment of the


potential product audience for one of its customers. The planning process
for preparing to conduct the survey consists of five activities, with
precedence relationships. The following table provides the information
necessary to construct a project network and project crash data:

Activity time Activity cost (R)


(weeks)

Activity Activity
predeces Normal Crash Normal Crash
sor

A - 40 28 2000 2480

B - 44 40 2200 2400

C - 34 27 1700 2190

D A 30 26 1500 1820

E C 31 25 1550 1730

2.1. Compute the total allowable crash time per activity and the crash
cost per week for each activity

2.2. The project manager Ms Mnguni will receive a performance bonus of


R2000 If she is able to finish the project in two weeks earlier than the
expected completion date. What is the trade-off between the cost of
finishing the project two weeks earlier and the bonus amount? Is the
bonus worth the effort? (05)

2.1. Compute the crash cost per week for each activity
(10)
A 40 D 30
0 40 40 70
0 40 40 70

B 44 End
Star 0 44
t 26 70

C 34 E 31
0 34 34 65
5 39 39 70

Critical path A-D = 70 DAYS

Answer

Activity A is critical and of all the critical activities A, D,.  A has the
cheapest crash cost per week. Crashing A for two weeks will cost ( 2* 40 =
R80 .)  The trade-off between the cost of finishing the project two weeks
earlier and the bonus is R1920. Yes, the bonus is worth the effort
Budgeted Cost Schedule

Based on the data below:

(a) Build a Budgeted Cost of Work Scheduled (BCWS) using


earliest start times
(b)Build a BCWS using latest start times

. Assume costs are spent uniformly across each activity’s duration.

Activity Data

Ac Activity name Immediate Time Total


t predecessors (weeks) cost (R)

A Prepare site & slab — 3 90,000

B Install single-phase — 2 120,000


solar + DB board

C Erect drying tunnel & A 4 160,000


trays

D Wire heaters, fans & B, C 3 90,000


controls

E QA setup, food-safety D 2 60,000


training & trial run
WEEKS
Activity 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

A 3000 30000 30000 90000


0

B 6000 60000 120000


0

C 4000 4000 4000 4000 160000


0 0 0 0

D 3000 3000 3000 90000


0 0 0

E 3000 3000 60000


0 0

TOTAL / Week 9000 90000 30000 4000 4000 4000 4000 3000 3000 3000 3000 3000 520000
0 0 0 0 0 0 0 0 0 0

Cumulative 9000 18000 21000 ?? ?? ?? ?? ?? ?? ?? ?? ??


0 0 0

WEEKS
Activity 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

A 3000 3000 3000 ??


0 0 0

B 6000 6000 ??
0 0

C 4000 4000 4000 4000 ??


0 0 0 0

D 3000 3000 3000 ??


0 0 0

E 3000 3000 ??
0 0

TOTAL / Week ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Cumulative ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

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