PERT & CPM

PERT = Program Evaluation and Review Techniques

CPM = Critical Path Method

1. Program Evaluation and Review Techniques (PERT)

PERT is an important technique of network analysis. It is used to plan, schedule and control the project activities of large and complex projects. It shows inter-dependent of the activities and it also provides the basis for determination of uncertainties of the activities as well as the project as a whole.

It helps to identify critical activities, bottle-neck which need more care and watch other non-critical activities which don't affect the length of the project. In PERT analysis, it is assumes that the time to perform each activity is uncertain and three times estimate are used i.e. optimistic time, pessimistic time and most likely time.

It incorporates statistical analysis in determining the time. PERT helps to answer the following questions:

1. When will the project be finished?
2. What is each activity of the project to start and finish time?
3. Which one must be finished to start another?
4. Why should the management shift the resource from the non-critical activities to critical activities?

A project consisting of six inter-dependent activities is to be analyzed by using PERT, the following information is given:

 

2. Critical Path Method (CPM)

It is another powerful technique of network analysis which is used for planning, scheduling and controlling the project. It is focused on directly critical path and critical activities.

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Input and Network Analysis

Input Analysis

Input analysis refers to overall analysis of all factors i.e. human and non-human resources that will be used as inputs during the project implementation to produce goods and services as output. It is conducted to examine the required human and non-human resources for the successful operation of the proposed project.

Since the quality standard and quantity of the project output depend heavily on inputs, this analysis helps to define inter-relationships between inputs and outputs. Basically this analysis includes human and non-human resources.

a) Human Resources

• Acquisition and utilization of personnel
• Capabilities, qualification, work experience of the employees
• Need and importance of training development
• Job description
• Allocation of responsibilities
• Lay off

b) Non-Human Resources

1. Machinery: Original cost, maintenance cost, risk obsolescence, capacity of production life.
2. Money: Required capital, availability of capital, cost of capital, sources of funds.
3. Raw materials: Availability of raw materials, efficiency in procurement, quality and quantity requirement, cost per unit.
4. Information: Cost of PMIS (Project Management Information System), accuracy of available data, reliability of information.

Network Analysis

Network analysis is useful technique of planning and controlling the project. It provides basis for defining the project activities integrating the activities in a logical time sequence and controlling the activities. It helps to arrange the activities involving in a project in a systematic manner. A project may be defined array of interrelated activities that must be managed in a systematic way to meet the defined objectives within parameters of time, cost and quality performance. It will be difficult for effective management of large and complex projects like construction, defense, aerospace, industrial project etc. by intuition based on organizational capabilities and work experiences. In this situation, the network analysis technique is used to develop a logical sequence of project activities. So that project completion time and cost are properly balanced and that the excessive demand of resources is avoided.

To fulfill the aim of proper planning scheduling and controlling the project, the project should be broken down into controllable units of activities and then a network diagram of project should be developed by analyzing time and resources required for these activities. Hence, it is the method of computing the minimum project implementation time and overall cost of the project. The main objectives of this analysis are discussed below:

• To complete the project within stipulated time period.
• To optimize the use of resources.
• To minimize risk and uncertainties.
• To establish the better correlation among inter-dependent activities.

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