Critical Path Method (CPM):

CPM is a project-management technique that lays out all the activities needed to complete a task, the time it will take to complete each activity and the relationships between the activities. In the process of preparing 6 Tola jewelry set, following activities are involved: 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchase of raw gold 24 k Conversion of gold into 22 k Wax Mold making Melting of gold Structure making Designing Stone cutting Stone setting in jewelry Polishing

1. Conversion of Gold:
The purest form of Gold is considered 24k which is equal to roughly 99.9 percent purity. It is converted into 22k for making jewelry. When we say 24k or 24k Gold jewelry, we mean that all the 24 parts in the gold are just pure gold without traces of any other metal. The main reason behind converting 24 k gold into 22k is that the 22k gold is soft it cannot be used for making the jewelry because the jewelry made by 24 k losses its real shape.

2. Melting of Gold:
In this process the 22k gold is melted and converted into gold plates than gold wires are made out of these gold wires and jewelry structure is made by pouring gold into wax. In melting process gold is place in crucible. Since gold melts at almost 2000 degrees Fahrenheit, you need a container that won't melt before the gold does. In melting of gold an acetylene torch is used.

3. Structure Making:
In this process jewels wax is used. In this process wax is being slice half width wise to create identical halves. Wax file is being used to create an even surface on our wax halves then pattern is created equal to length and size and alternatively we can use another mold (if available) or a copy of the jewelry to make and press it down into softened wax to make an impression. Then we will pour the molten gold into wax mold.
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4. Designing :
In this process the structured jewelry is designed.

5. Stone Cutting and Stone Setting:

In this process stone cutting is done according to the design selected and these stones are settled in the jewelry.

6. Polishing:
In this process jewelry is being polished. The process of polishing is consisting of chemical polishing, brushing, drum machine, color balancing. In polishing process jewelry gets the shine.

Activity list:
Activity Activity Description
Purchase of raw gold Conversion of gold into 22 k Wax mold Melting Structure making Designing Stone cutting Stone setting in jewelry Polishing

Immediate predecessor
-------A A B C,D E E F,G

Completion time (in hours)

2

B C D E F G H

1 3 1 2 2 1 1

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PERT/CPM Network:
A [0, 2] B [2, 3] D [3, 4] E [5, 7]

1 2 [0, 2]

1 [3, 4] C [2, 5]

3 1 [4, 5]

5 2 [5, 7]
4

6
4

3 [2, 5]

2[7, 9] F [7, 9]

1 [8, 9] G [7, 8]

7
4

8
4

1 [9, 10] H [9, 10]

I [10, 12]

9 2[10, 12]
4

10

Activity Schedule:
Activity Earliest Start Latest Start (ES) in hrs. (LS) In hrs.
0 2 2 3 5 0 3 2 4 5

Earliest Finish (EF) in hrs.

2 3 5 4 7

Latest Slack Finish (LF) (LS-ES) in hrs. in hrs.

2 4 5 5 7 0 1 0 1 0

Critical Path
YES --YES --YES

A B C D E

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F G H I

7 7 9 10

7 8 9 10

9 8 10 12

9 9 10 12

0 1 0 0

YES --YES YES

Activities A, C, E, F, H, and I are critical activities and cannot be delayed because delay in any of these activities can result in the whole delay of process of making jewelry set.

Optimistic, Most Probable and Pessimistic Activity Time Estimates [in Hours]:
Activity
A B C D E F G H I

Optimistic (a)
1.50 0.50 2.50 0.50 1.50 1.50 0.50 0.50 1.50

Most Probable (m)

2 1 3 1 2 2 1 1 2

Pessimistic (b)
8.50 1.50 3.50 1.50 2.50 2.50 1.50 1.50 2.50

After that expected time of each activity is calculated by using the following formula:

t = a + 4m +b / 6 With uncertain activity time we can use the common statistical measure of variance to describe the dispersion or variation in the activity time value. The variance the activity time is given by the following formula:
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Square of = [(b a) / 6)] ^2

Expected Times and Variances:

Activity
A B C D E F G H I

Expected Time [in hours]

3 1 3 1 2 2 1 1 2

Variance
1.3611 0.0278 0.0278 0.0278 0.0278 0.0278 0.0278 0.0278 0.0278

TOTAL

16 hours

Variability in the Process Completion Time:

In carrying out critical path calculation, we treated the activity times as fixed at their expected values, we are now ready to consider the uncertainty in the activity times and determine the effect this uncertainty or variability has on the process completion time. Critical Path determines the duration of the entire project. For this process of preparing jewelry set, the critical path of A, C, E, F, H and I resulted in an expected process completion time of 16 hours. Variation in the critical path activities can cause variations in making jewelry set in expected time whereas non-critical path activities will ordinary have no effect on this process.

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Activity Time and Cost Estimates:

Activity Expected Time (hours) Budgeted Cost (Rs.) Budgeted cost per hour (Rs.)
110,100 26,000 250 300 750 2,000 200 500 1,500

A B C D E F G H I Total

3 1 3 1 2 2 1 1 2 16

330,300 26,000 750 300 1,500 4,000 200 500 3,000 366,550

Activity Schedule for Expected Time:

Activity Earliest Start (ES) in hrs.
0 3 3 4 6

Latest Start Earliest (LS) In hrs. Finish (EF) in hrs.

0 4 3 5 6 3 4 6 5 8

Latest Slack Finish (LF) (LS-ES) in hrs. hrs.

3 5 6 6 8 0 1 0 1 0

Critical in Path
YES ---YES ---YES

A B C D E

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F G H I

8 8 10 11

8 9 10 11

10 9 11 13

10 10 11 13

0 1 0 0

YES ---YES YES

Budgeted Costs for an Earliest Starting Time Schedule [in Hours, in Rs.]:
Activity A B C D E F G H I Hourly cost Total process cost
110,100 110,100 110,100 26,250 550 250 750 750 2,200 2,000 500

1
110,100

2
110,100

3
110,100

10

11

12

13

26,000

250

250

250

300

750

750

2,000

2,000

200

500

1,500

1,500

1,500

1,500

110,100

220,200

330,300

356,550

357,100

357,350

358,100

358,850

361,050

363,050

363,550

365,050

366,550

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Budgeted Costs for Latest Starting Time Schedule [in Hours] [Rs.]:
Activity 1 A B C D E F G
250 110,100

2
110,100

3
110,100

10

11

12

13

26,000

250

250

300

750

750

2,000

2,000

200

500

1,500

1,500

Hourly Cost

110,100

110,100

110,100

250

26,250

550

750

750

2,000

2,200

500

1,500

1,500

Total Process Cost

110,100

220,200

330,300

330,350

356,800

357,350

358,100

358,850

360,850

363,050

363,550

365,050

366,550

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800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Latest Start Time Budgeted Cost Schedule Earliest Start Time Budgeted Cost Schedule Schedule

800000 700000 600000 500000 400000 300000 200000 100000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Budgeted Total Cost Schedule for earliest Starting Time Budgeted Total Cost Schdule for latest Staritng Time

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