Project Evaluation and Review Technique (PERT) and Critical Path Method (CPM)

[seminar class]

Presented by:
Wen Liu
Shripad G Katti
Sai Krishna

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Introduction
PERT Project Evaluation and Review Technique is a network model that allows for randomness in activity completion times. PERT was developed in 1958 by the SPECIAL PROJECT OFFICE of U. S. Navy for Polaris Missile Program. It has the potential to reduce both the time and cost required to complete a project.
CPM Critical Project Method is a deterministic method that uses a fixed time estimate for each activity. CPM was developed in1957 by Morgan R. Walker of DuPont and James E. Kelley, Jr. of Remington Rand. Any project with interdependent activities can apply this method of mathematical analysis
 PERT is a project management technique that shows the time taken by each component of a project and the total time required for its completion.
 It is a scheduling tool that facilitates decision making.
 PERT is valuable to manage where multiple tasks are occurring simultaneously to reduce redundancy
 CPM is a project management technique that analyses which activities have the least amount of scheduling flexibility and then predicts project duration based on activities that follow the path.
 CPM is an ALGORITHM for scheduling a set of project activities.
 CPM attempts to protect activity and project durations from unforeseen delays due to resource constraints.
Similarities and Differences
 Both CPM and PERT are project management techniques.
 Both follow the same steps and use network diagrams
 Both are used to plan the scheduling of individual activities that make up a project
 PERT is usually concerned just with the time taken, while CPM looks at cost/time tradeoffs.
 PERT is probabilistic whereas CPM is deterministic.
 PERT is more suitable for R&D related but CPM is best suited for routine projects.
Benefits and Limitations
 Both allow managers in the planning divisions of organizations to communicate and consolidate ideas.
 They also promote cost-effectiveness and optimal use of manpower.
 Applicable to a wide variety of projects and industries.
 Useful in monitoring not only schedules, but costs as well.
 Assumes clearly defined, independent and stable activities.
 Have specified precedence relationships.
 Subjective time estimates.
 When the PERT/CPM charts become unwieldy, they are no longer used to manage the project.