1. Project Planning & Scheduling

2. CPM & PERT
CPM – Critical Path Method (no statistical basis incorporated)
PERT – Program Evaluation & Review Technique (statistical basis incorporated)
→ activity: work component needed to be accomplished (a task with definite beginning and ending points)
O event: node designating beginning and/or ending activities

3. PERT network activity times
te: expected time of an activity
σe: standard deviation of activity time
(σe)2: variance of activity time
to = optimistic time (1 in a 100 chance less)
tm = most likely time
tp = pessimistic time (1 in a 100 chance more)

4. Determining PERT network activity times

5. PERT procedure Construct PERT network
May need to insert dummy activity(ies) for diagram completion
Dummy activity is a fictitious activity with no actual time
Determine at each node TE, TL, and TS
TE = earliest expected time
TL = latest allowable time
Ts = slack time (difference between TE and TL, freedom available in deciding when to start an activity without jeopardizing overall timely completion)

6. The critical path
Evaluate all paths through the network – path where total activity times are the most of any path is the critical path
Variance along the critical path is equal to the sum of the variances of each activity along the critical path

7. A PERT example

8. Another PERT example

9. Creating the PERT network