Project Evaluation And Review Technique

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The Project Evaluation and Review Technique (PERT) and Critical Path Method (CPM) were developed by management scientists to help organizations with planning, scheduling and controlling large projects, such as building a new hospital or launching a new product. I first became familiar with the utility of project scheduling in my Air Force career when we used PERT/CPM to schedule activities associated with the construction of an air field in Spain. More recently, last semester I worked with an MBA student in applying the techniques to help in scheduling subcontractors to build car wash facilities throughout the state. I even wanted to use PERT/CPM to schedule our wedding activities, but when you are young, in love and/or elope you don 't have time for analysis (just kidding - at least about the analysis part). When I speak of large projects I mean an undertaking that has series of interdependent activities that take time to complete, require funds and resources, such as time and labor. Interdependence means that activities follow a given sequence or precedence relationship - some activities cannot start until others are completed. PERT is a scheduling technique that was specifically designed by the Navy in 1958 for projects with uncertain activity times. CPM was designed by Remington-Rand and DuPont in 1957 to address the time-cost tradeoff: if the project manager wishes to accelerate a project so that it is completed faster than originally planned, there is a cost tradeoff. Today, we generally speak of PERT/CPM as a single quantitative method with a number of analysis components. Further, today the method is as applicable to small projects as to large ones. Project Scheduling can be broken down into twelve general steps. These ... ... middle of paper ... ...ot begin until both Activities C and E are completed. Project Scheduling Step 4 involves construction of a graphical representation of the project, called an Activity Network. The activity network for this project is shown in Figure 7.1.1. Figure 7.1.1. - -> B --- --- -> E --- --- -> G --- --- -> I --- --- -> J | 60 6 10 6 12 | ^ ^ | | | A ---- ---| -> C --- --- --- --- --- --- --- | | 3 | 5 | | | | | - -> D --- --- -> F --- --- -> H --- --- --- --- --- --- --- - 15 40 7
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