V. Project Management
PERT vs CPM: Similarities and Differences
Both are network-based project management tools for planning, scheduling, and controlling projects.
| Aspect | CPM (Critical Path Method) | PERT (Program Evaluation and Review Technique) |
|---|---|---|
| Origin | Developed for construction projects (DuPont, 1957). | Developed for R&D projects (U.S. Navy, 1958). |
| Time Estimates | Deterministic (single time per activity). | Probabilistic (three time estimates: O, M, P). |
| Focus | Time-cost trade-off, project crashing. | Uncertainty in activity durations. |
| Application | Repetitive, well-defined projects. | Non-repetitive, R&D, high-uncertainty projects. |
| Model Type | Deterministic model. | Stochastic model. |
[!TIP]
- CPM is activity-oriented (precise times).
- PERT is event-oriented (probabilistic times).
- Both use network diagrams and identify the critical path.
Network Diagrams: AOA vs AON
Activity-on-Arrow (AOA)
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Activities represented by arrows, events (milestones) by nodes (circles).
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Dummy activities (dashed arrows) used to show dependencies without time/cost.
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Less common due to complexity with multiple relationships.
Activity-on-Node (AON)
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Activities represented by nodes (boxes), arrows show dependencies.
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More intuitive; widely used in software (e.g., MS Project).
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Logical relationships directly on arrows:
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FS (Finish-to-Start): Most common. B starts after A finishes.
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SS (Start-to-Start): B starts when A starts.
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FF (Finish-to-Finish): B finishes when A finishes.
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SF (Start-to-Finish): Rare. B finishes when A starts.
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[!TIP]
- Dummy activity (zero duration) resolves ambiguity in AOA when two activities share same start/end nodes.
- AON preferred for complex projects; easier to update.
Critical Path Method (CPM)
Key Steps:
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Forward Pass (compute earliest times):
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$$\displaystyle ES_i $$ = Earliest Start of activity $i$.
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$$\displaystyle EF_i = ES_i + \text{duration}_i $$.
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For successor $j$: $$\displaystyle ES_j = \max(EF_i) $$ over all predecessors $i$.
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Backward Pass (compute latest times):
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$$\displaystyle LF_i $$ = Latest Finish of activity $i$.
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$$\displaystyle LS_i = LF_i - \text{duration}_i $$.
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For predecessor $i$: $$\displaystyle LF_i = \min(LS_j) $$ over all successors $j$.
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Float/Slack Calculation:
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Total Float: $$\displaystyle TF_i = LS_i - ES_i = LF_i - EF_i $$.
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Free Float: $$\displaystyle FF_i = \min(ES_j) - EF_i $$ (slack without delaying successors).
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Independent Float: $$\displaystyle IF_i = FF_i - \text{total slack of predecessor} $$.
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Critical Path: Path with zero total float (longest path, determines project duration).
[!CAUTION]
- Degeneracy: Multiple critical paths possible if several paths have same length.
- Dummy activities have zero duration and zero float.
Program Evaluation and Review Technique (PERT)
Three Time Estimates per Activity:
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Optimistic ($a$): Minimum time if everything goes perfectly.
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Most Likely ($m$): Realistic estimate under normal conditions.
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Pessimistic ($b$): Maximum time if significant delays occur.
Expected Time and Variance:
- Expected duration:
$$t_e = \frac{a + 4m + b}{6}$$
- Variance of activity duration:
$$\sigma^2 = \left(\frac{b - a}{6}\right)^2$$
Project Length and Probability:
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Expected project length ($$\displaystyle T_E $$): Sum of $$\displaystyle t_e $$ along the critical path.
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Project variance ($V$): Sum of variances along the critical path (assuming independence):
$$V = \sum_{i \in \text{critical path}} \sigma_i^2$$
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Probability of completion by due date $D$:
Compute standard normal variable:
$$Z = \frac{D - T_E}{\sqrt{V}}$$
Use standard normal table to find $P(Z \leq z)$.
[!EXAMPLE]
If $$\displaystyle T_E = 60 $$ weeks, $$\displaystyle V = 9 $$ (std dev = 3), for $$\displaystyle D = 66 $$ weeks:
$$\displaystyle Z = \frac{66-60}{3} = 2 $$ → $P \approx 0.9772$ (97.72% chance).
Project Management Phases (PMBOK Guide)
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Initiation: Define project, feasibility, stakeholder identification.
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Planning: Scope, schedule (WBS, network), cost, quality, resources, risk.
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Execution: Coordinate resources, implement plan, manage teams.
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Monitoring & Controlling: Track performance (EV, PV, AC), control changes, manage risks.
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Closing: Formal acceptance, handover, documentation, lessons learned.
[!TIP]
- Critical path is central to Planning and Monitoring & Controlling.
- PERT used in Planning for uncertain durations; CPM for Monitoring with deterministic times.
Heuristic and Metaheuristic Algorithms
Heuristics: Problem-specific rules of thumb for quick, good (not optimal) solutions.
Examples: Nearest neighbor (TSP), dispatching rules (Johnson’s for 2-machine flow shop).
Metaheuristics: High-level frameworks exploring large search spaces; less problem-dependent.
Examples:
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Genetic Algorithms (GA): Evolution-inspired (selection, crossover, mutation).
Application: Resource-constrained scheduling.
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Simulated Annealing (SA): Mimics annealing process; accepts worse moves to escape local optima.
Application: Facility layout, project crashing.
Key Properties:
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Intensification vs Diversification balance.
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Stochastic nature; multiple runs may yield different results.
[!CAUTION]
- No guarantee of optimality; used for NP-hard problems (e.g., project scheduling with resource constraints).
- Parameter tuning (e.g., cooling rate in SA) crucial for performance.
Common Pitfalls & Exam Tips
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Simplex vs Transportation: Simplex handles general LPs; transportation exploits grid structure for faster solutions.
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Degeneracy in LP/Transportation: Occurs when basic variable = 0; may cause cycling. Use Bland’s rule or lexicographic method to resolve.
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PERT Probability: Always use critical path’s variance; non-critical paths irrelevant.
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Network Diagrams: In AOA, dummy activities only for logic, not time. In AON, FS is default if no lag specified.
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Float Interpretation:
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Total float = allowable delay without delaying project.
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Free float = delay without delaying early start of successor.
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Critical activities have zero total float.
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[!TIP]
For probability questions: Convert to standard normal, use $Z$-table, and remember $$\displaystyle Z = \frac{\text{Target} - \text{Mean}}{\text{Std Dev}} $$.
For network diagrams: Draw clearly, label ES/EF/ LS/LF on nodes (AON) or arrows (AOA).