MODULE 11: PERT, CPM, and Critical Chain

• It involves planning, organizing, and controlling resources to achieve specific goals within a set timeframe and a set budget.

  Project Management
• It outlines the stages a project goes through from inception to completion.

  Project Life Cycle
• Stages of the Project Life Cycle

  1. Initiation
  2. Planning
  3. Execution and Monitoring
  4. Closure
• It involves determining the project definition along with project constraints and problem statements

  Initiation Phase
• It involves detailed planning along with estimation and scheduling.

  Planning Phase
• Project Team: Acquisition, Development, and Management

  Execution and Monitoring Phase
• Involves monitoring, controlling, closure and review.

  Closure Phase
• They are designed to help organizations plan, schedule, and manage projects effectively.

  Project Management Tools
• Project management tools have relevance with OPERTQM:

  • Planning and Scheduling
  • Quality Assurance
  • Resource Optimization
  • Continuous Improvement
• They map out project activities, durations, and dependencies.

  Network Planning Techniques
• Types of Network Planning Techniques

  • PERT (Program Evaluation and Review Technique)
  • CPM (Critical Path Method)
• PERT means...

  Program Evaluation and Review Technique
• Focuses on probabilistic time estimates.

  PERT
• Within the PERT method, activities are represented with:

  • Optimistic time (O)
  • Most likely time (M)
  • Pessimistic time (P)
• FORMULA of Expected Time (ET)

  $Expected\ Time\ \left(TE\right)\ =$$\ \frac{O\ +\ 4M\ +\ P}{6}$
• Uses deterministic time estimates for projects with well-defined activities.

  CPM
• CPM means...

  Critical Path Method
• Used in businesses to manage time-sensitive projects where delays in critical tasks can impact the overall timeline.

  CPM
• The longest sequence of critical tasks that determines how long the entire project takes.

  Critical Path
• It is the amount of delay that non-critical tasks can tolerate without delaying the project.

  Slack Time
• This involves reducing the duration of critical path activities by allocating additional resources.

  Project Crashing in CPM
• Steps to Crash a Project:

  • Identify the tasks on the critical path
  • Choose the task with the lowest cost to speed up
  • Add resources only to those tasks to avoid wasting time/money on non-critical tasks
• It is a methodology designed to address the shortcomings of traditional project management methods like CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique).

  Critical Chain Project Management (CCPM)
• Who introduced the Critical Chain Project Management (CCPM) approach?

  Dr. Eliyahu M. Goldratt
• This shifts focus on resource constraints and prioritizes task completion to avoid delays caused by multitasking, resource bottlenecks, and unrealistic scheduling.

  CCPM
• Key Concepts of CCPM

  • Critical Chain
  • Buffers
  • Focus on Task Completion
  • Eliminate Multitasking
  • Relay Race Approach
• The longest sequence of dependent tasks, considering both taskdependencies and resource availability.

  Critical Chain
• They are added to protect the schedule from uncertainties, reducing theneed for padding individual tasks.

  Buffers
• TYPES OF BUFFERS:

  • Project Buffer
  • Feeding Buffers
  • Resource Buffers
• Placed at the end of the project to absorb delays.

  Project Buffer
• Protect the critical chain from delays in non-critical tasks.

  Feeding Buffers
• Alerts to ensure resources are available when needed.

  Resource Buffers
• Tasks are completed as quickly as possible without distractions, such as multitasking.

  Focus on Task Completion
• Resources focus on one task at a time, reducing inefficiencies caused by switching tasks.

  Eliminate Multitasking
• Tasks are handed off immediately upon completion, like a relay race, minimizing idle time.

  Relay Race Approach