chapter twenty-one

Project networks, PERT,

and CPM
William S. Davis
Contents
21.1
21.2
21.3
21.4

Purpose
Strengths, weaknesses, and limitations
Inputs and related ideas
Concepts
21.4.1 Events and activities
21.4.2 Precedence
21.4.3 Dummy activities
21.4.4 The earliest event time
21.4.5 The latest event time
21.4.6 The critical path
21.4.7 Slack time
21.4.8 PERT and CPM
21.5 Key terms
21.6 Software
21.7 References

21.1 Purpose
A project network chart is a tool for graphically depicting a schedule and
serves as a basis for PERT and CPM. Project networks can be used to plan,
record, and document a schedule and to track actual results against the
schedule.

1999 by CRC Press LLC

21.2 Strengths, weaknesses, and limitations

Project networks are excellent tools for planning, tracking, and managing
large projects. They are not particularly useful for small projects, however.
PERT (Program Evaluation and Review Technique) is useful in research
and development projects where the times required to complete the various
activities are uncertain. The critical path is the primary focus of management control, and monitoring the critical events provides an early warning
if estimates are inaccurate.
CPM (Critical Path Method) is used to help solve scheduling problems
when the activity times are known more precisely. Only by shortening the
critical path can the project completion time be improved. Consequently, the
critical path defines those activities into which additional resources might
be poured to accelerate the schedule.
Creating a project network is a complex undertaking. The computations
are straightforward, but non-trivial. Without appropriate software tools,
maintaining or changing a project network can be difficult.
The accuracy of the project network is no better than the estimated
duration of each of the activities. The lack of a relationship between an activitys duration and the length of the arrow that represents the activity can
lead to misunderstandings. Errors in computing earliest event times, latest
event times, and slack times are not always apparent, so all computations
should be checked carefully.

21.3 Inputs and related ideas

Before preparing a project network, the tasks or activities to be performed
must be identified and each activitys duration (the time required to complete the activity) estimated. Additionally, the sequential relationships
between activities must be known. The necessary information is typically
collected during the problem definition and information gathering stages of
the system development life cycle (Part II).
A Gantt chart (Chapter 20) may be a better tool for scheduling a small
project. The project network is the basis for crash mode scheduling
(Chapter 22).

21.4 Concepts
A project network chart is a tool for graphically depicting a schedule and
serves as a basis for PERT and CPM. Project networks can be used to plan,
record, and document a schedule and to track actual results against the
schedule.
The examples in this chapter are based on the activities listed in Table
21.1. Figure 21.1 is a project network for these activities.

1999 by CRC Press LLC

Figure 21.1 A project network for an inventory system.

1999 by CRC Press LLC

Table 21.1

A List of the Activities Associated

with an Inventory System

Description
Order hardware and software
Shipment time
Clarify manual procedures
Design files
Prepare site and install
Design record shipment program
Initialize vendor file
Initialize customer file
Initialize inventory file
Write record shipment program
Customize reports
System test
Train inventory manager
Train sales clerks
Train clerical personnel
Train store manager

Duration

Activity

2
5
1
4
1
1
1
1
1
1
1
1
1
2
0.5
1

1-2
2-5
3-12
4-7
5-7
6-10
7-8
8-9
9-10
10-11
11-12
12-13
13-14
13-16
14-16
15-16

21.4.1 Events and activities

Each activity (a line or an arrow) in the project network begins and ends
with an event (a circle or a bubble). The events are numbered (the numbers
do not necessarily imply sequence), and a given activity is identified by the
numbers associated with its beginning and ending events. Order hardware
and software is activity 1-2. Shipment time (activity 2-5) begins with event 2
and ends with event 5. Note that events are points in time, while activities
consume both time and (usually) resources.
Each activitys duration is shown just above its arrow. Note that there is
no relationship between the length of an arrow and the duration of the
activity. The arrows identify dependency relationships; all activities that
enter a given event must be completed before that event occurs.

21.4.2 Precedence
The project network defines event precedence. For example, to the right of
Figure 21.1, event 13 must occur before activity 13-14 or activity 13-15 can
begin, and event 16 does not occur until activities 13-16, 14-16, and 15-16 are
all completed. Activities on parallel paths can be performed in parallel.
The path through a project network is said to diverge when a single-line
path splits into multiple paths. For example, a single path (activity 12-13)
enters event 13, and three paths (13-14, 13-15, and 13-16) leave event 13.
Paths are said to merge when multiple input paths lead to a single output.
For example, activities 3-12 and 11-12 both end at event 12, and only activity 12-13 leaves event 12.

1999 by CRC Press LLC

21.4.3 Dummy activities

Some of the activities in Figure 21.1 are shown as dashed lines. These
dummy activities link parallel events and consume neither time nor
resources. They show dependency relationships that are not associated with
activities.

21.4.4 The earliest event time

The project network defines the dependency relationships between the
events. Given a clear sense of the order in which events must occur, the analyst can prepare a schedule.
The first step is to compute the earliest event time (EET) for each event.
The EET is the earliest time the event can possibly begin. By convention it is
zero for the first event. To compute the earliest event time for all the other
events, work from left to right and follow these three rules:
1. Select all activities that enter the event.
2. For each entering activity, sum the activitys duration and the EET of
its initial event.
3. Select the highest computed EET and record it in the upper right
quadrant of the event circle.
An event occurs when all the activities that enter it are completed. That
is why the highest computed EET is selected.
In Figure 21.1 the earliest event times are shown at the upper right
quadrant of each circle. For example, consider event 2. There is only one
entering activity, 1-2. Activity 1-2s initial event is 1. Event 1s EET is 0 and
activity 1-2s duration is 2 d, so the earliest event 2 can possibly occur is 2 d
after the project begins.
Next, consider event 10. It has two entering activities (6-10 and 9-10), so
two computations are needed. Event 6s EET is 2 and activity 6-10s duration is 1 d, so the computed EET is 3 d. Event 9s EET is 10 and activity 910s duration is 1 d, so the second EET is 11 d. The highest computed EET
for event 10 is 11 d, so record 11 at the top right of the bubble that represents
event 10.

21.4.5 The latest event time

The latest event time (LET) is the latest time an event can occur without
impacting the project schedule. By convention, the LET of the last or terminal event is equal to its earliest event time, so 16 d is both the EET and the
LET for event 16 (Figure 21.1). To compute the latest event time for all the
other events, work from right to left and follow these three rules:

1999 by CRC Press LLC

1. Consider all activities that leave an event.

2. Subtract each activitys duration from the LET of its terminal event.
3. Select the smallest computed LET and record it in the lower right
quadrant of the event circle.
For example, consider event 13. Three activities (13-14, 13-15, and 13-16)
leave event 13. Event 14 has a latest event time of 15.5 d and activity 13-14
has a duration of 1 d, so event 13s first computed LET is 14.5 d. Event 15
has a latest event time of 15 and activity 13-15 has a duration of 0 d (it is a
dummy activity), so the second candidate LET is 15 d. The computation for
activity 13-16 yields 14 d. Because the smallest computed LET is 14 d, the latest event time for event 13 is 14 d.
Why pick the smallest LET? The idea is to allow enough time for the
most lengthy activity or series of activities. If event 13 actually occurs at time
15.5, event 14 cannot possibly occur before day 16.5 because activity 13-14
takes 1 full day to complete. That would impact the schedule.
Next, consider event 12. Only one activity (12-13) leaves it. The LET for
event 13 is 14 d and the duration of activity 12-13 is 1 d, so event 12s LET is
13 d.

21.4.6 The critical path

Note that the earliest and latest event times are the same for several events
(Figure 21.1). Those events define the critical path, which is marked by a
heavy black line. If the project is to be completed on time, the critical events
must begin on time and the critical activities must require no more than
their estimated duration.

21.4.7 Slack time

Activities not on the critical path can (to a point) start late or exceed their estimated duration without affecting the schedule. The extra time associated
with an activity, called slack or float, is computed by subtracting from the
latest event time of its terminal event both the activitys duration and the earliest event time of its initial event:
Total slack = (LET)t  (EET)i  duration.

(21.1)

Slack time is enclosed in parentheses and recorded below the activity arrow
(Figure 21.1). Note that critical path slack times are all 0.
For example, consider activity 6-10. The LET of its terminal event (10) is
11 d, the EET of its initial event (6) is 2 d, and its duration is 1 d. Plug those
numbers into the equation and you get a slack time of 8 d.
Slack represents the maximum time the activity can slip without affecting the project schedule. If an activity begins late, of course, its available
slack is reduced.

1999 by CRC Press LLC

21.4.8

PERT and CPM

The project network is the foundation of both PERT and CPM.

PERT gained prominence during the late 1950s when it proved invaluable in scheduling and controlling the Polaris missile program. It is particularly useful in research and development projects where the times to complete the various activities are uncertain. The critical path is the primary
focus of management control, and monitoring the critical events provides an
early warning if estimates are inaccurate.
Industry developed CPM (Critical Path Method) to help solve scheduling problems when the activity times are known more precisely. Only by
shortening the critical path can the project completion time be improved.
Consequently, the critical path defines those activities into which additional resources might be poured to accelerate the schedule. An application of
the critical path method to crash mode development is illustrated in
Chapter 22.

21.5

Key terms

Activity A task to be completed.

CPM (Critical Path Method) A project management technique
based on a project network; the focus of CPM is project planning,
with the critical path defining those activities into which additional
resources might be poured to accelerate the schedule.
Critical path The path through a project network that links the critical events that must begin on time and the critical activities that
must require no more than their estimated duration if the project is to
be completed on time.
Diverge To split a single input path into multiple paths.
Dummy activity An activity that links parallel events, but consumes
neither time nor resources.
Duration The elapsed time required to complete an activity.
Earliest event time (EET) The earliest time the event can possibly
begin.
Event The beginning or end of an activity.
Latest event time (LET) The latest time an event can occur without
impacting the project schedule.
Merge To combine two or more input paths into a single output
path.
PERT (Program Evaluation and Review Technique) A project
management technique based on a project network; with PERT, the
critical path is the primary focus of management control and monitoring the critical events provides an early warning if estimates are
inaccurate.

1999 by CRC Press LLC

Project network A bubble chart that graphically depicts activities,

their starting and completion times, and their interrelationships.
Slack The maximum time an activity can slip without affecting the
project schedule.

21.6

Software

Such project management software products as Microsoft Project, Primavera

Suretrack Project Manager, SuperProject from Computer Associates,
Harvard Project Manager from Software Publishing Company, and Project
Management Workbench from Applied Business Technology support project networks, PERT, CPM, and related techniques. Such charting or drawing tools as Visio and Flowcharter by Micrografx can be used to create a
project network, although the project management tools are much more
effective.

21.7

References

1. Badiru, A. B. and Whitehouse, Computer Tools, Models and Techniques for Project
Management, TAB Books, Blue Ridge Summit, PA, 1989.
2. Davis, W. S., Business Systems Analysis and Design, Wadsworth, Belmont, CA,
1994.
2a. Humphrey, W. S., Managing the Software Process, Addison-Wesley, Reading,
MA, 1989.
3. PERT Coord. Group, PERT: Guide for Management Use, U.S. Government
Printing Office, publication number 0-6980452, Washington, D.C., 1963.
4. Roetzheim, W. H., Structured Computer Project Management, Prentice-Hall,
Englewood Cliffs, NJ, 1988.
5. Weinberg, G. M. and Weinberg, D., General Principles of Systems Design, Dorset
House, New York, 1988.

1999 by CRC Press LLC