1. PROJECT SCHEDULING
PERT - Cost

2. PERT / COST
PERT/Cost is an accounting information system that helps management gauge progress against scheduled time and cost estimates.
When discrepancies are found between the actual progress and the expected progress, corrective actions can be taken.
PERT/Cost is a project oriented system that is based on analyzing a segmented project.
Each segment is a collection of work packages.

3. Work Package - Assumptions
Once started, a work package is performed
continuously until it is finished.
The costs associated with a work package are spread
evenly throughout its duration.

4. Current Status of a Work Package includes
Work Package Forecasted Cost per Time Unit
Budgeted Total Cost for Work Package
Expected Completion Time for Work Package =
Current Status of a Work Package includes
Value of work done to date.
Expected time remaining to complete the work package.
The value of work and the remaining time are calculated using the following data:
Work package cost per time unit.
Activity schedule obtained by PERT/CPM
Actual expenditures.
% of work package completed, p.

5. p x [Work Package Budget]
Value of Work to Date =
p x [Work Package Budget]
Expected Remaining Completion Time =
(1-p) x Original Expected Completion Time

6. Completion Time Analysis
Using the expected remaining completion time estimates,
project completion time can be revised.
Cost Overrun/Underrun Analysis
For each work package (completed or in progress) we
calculate
Cost Overrun =
[Actual Expenditures to Date] - [Value of Work to Date]

7. Corrective Actions If a project is found to be
Behind schedule and or
Experiencing cost overruns,
Management seeks out the causes for these problems.
Correct the project completion time or cost estimates.
Reassess work package completion times and cost estimates.
Identify departments or contractors that cause delays.

8. Possible Corrective actions, to be taken whenever needed.
Focus on uncompleted activities.
Determine whether crashing activities is desirable.
In the case of cost underrun, channel more resources to problem activities.
Reduce resource allocation to noncritical activities

9. TOM LARKIN - Revision
Normal completion time = 36 weeks.
At the end of week 20 a progress assessment is made.
If the campaign is not on target or not within budget recommendations for corrective actions are required.

10. Mayoral Campaign status report
Work packages to focus on

11. Completion Time Analysis
The remaining network at the end of week 20
(1-p)(original expected completion time)=(1-0.25)(20)=15 H
20+15=35 15
FINISH
27.8+9=36. 8 .8 I F 9
7.8
20+7.8=27.8
The remaining activities are expected to take
0.8 weeks longer than the deadline of 36 weeks.

12. Cost Analysis Project cost Control
Estimated work value to date=(13,000)(0.40)=$5,200
Cost Overrun = = 400

13. Latest start time / Latest finish time
Make a backward pass through the network as follows:
Evaluate all the activities that immediately precede the finish node.
The latest finish for such an activity is LF = minimal project completion time.
The latest start for such an activity is LS = LF - activity duration.
Evaluate the LF of all the nodes for which LS of all the immediate successor has been determined.
LF = Min LS of all its immediate successors.
LS = LF - Activity duration.
Repeat this process backward until all nodes have been evaluated.

14. Latest Start / Latest finish
105,110
149,170
90,105 B B 15 C C 5
110,115
173,194 E 21 E
95,110
129,149
90,115
115,129
149,177
129,149
90, 115
115,129
153,173
166,194
5,95
129,149
0,90
FINISH
129,149 F 25 F G G 14
129,149 D D 20
146,166 H H 28 A A 90
0,90
FINISH
129,149
129,149
129,149
129,149
129,149
29,119
194
149,194
90,120
149,194
119,149 J J 45 I I 30