PM FINALS

• PERT

  Program (Project) Evaluation and Review

  Technique
• is a project management tool used to schedule, organize, and coordinate tasks within a project.

  
  

  Program (Project) Evaluation and Review

  Technique (PERT)

• Program (Project) Evaluation and Review

  Technique (PERT):


  It is basically a method to analyse the tasks involved in completing a given project, especially the time needed to complete each task, and to identify the minimum time needed to complete the total project.
• PERT was invented by

  Booz Allen Hamilton, Inc. under contract to the United States Department

  of Defense's US Navy Special Projects Office in 1958
• CPM was developed by the

  Dupont company & Remington-Rand-Univac
• A part of the Polaris mobile submarine-launched ballistic missile project. This project was a direct response to the Sputnik crisis
• T or F: PERT is used for large construction projects

  True
• T or F: PERT and CPM were aware of the others existence from the 1960’s

  False
• T or F: Both follow the same steps and use network diagrams

  True
• T or F: Only PERt is used to plan the scheduling of individual activities that make up a project

  False
• T or F: They can be used to determine the earliest/latest start and finish times for each activity

  True
• T or F: CPM is probabilistic whereas PERT is deterministic

  False
• T or F: In CPM, estimates of activity duration are based on historical data while in PERT, estimates are uncertain, and we talk of ranges of duration and the probability that an activity duration will fall into that range

  True
• T or F: CPM concentrates on cost optimization while PERT concentrates on time control.

  True
• T or F: PERT was developed in 1958 while CPM was developed in 1957

  True
• T or F: CPM is event oriented while PERT is activity oriented

  False
• T or F: PERT manages predictable activities while CPM manages unpredictable activities

  False
• T or F: PERT is a three-time estimate and CPM is a single time estimate

  True
• Examples of CPM & PERT Projects

  1.Construction of a new plant

  2. R&D of a new product

  3. NASA space exploration projects

  4. Movie productions

  5. Building a ship

  6. Government-sponsored projects for developing weapon

  systems

  7. Relocation of major facility

  8. Maintenance of nuclear reactor

  9. Installations of MIS

  10. Conducting an advertising campaigns
• PERT is used when

  activity times are uncertain.
• When do we use PERT?

  ▪ Determine the duration of the project.

  ▪ Decision making under risk (“P” for probabilistic)
• is a point that marks the start or completion of one (or more) tasks.

  It consumes no time and uses no resources. It marks the completion of one (or

  more) task. It is not “reached” until all of the activities leading to that event

  have been completed.

  PERT event
• an event (or events) that immediately precedes some other event without any other events intervening. It may be the consequence of more than one activity.

  Predecessor event
• an event (or events) that immediately follows some other event without any other events intervening. It may be the consequence of more than one activity.

  Successor event
• is the actual performance of a task. It consumes time, it requires

  resources (such as labor, materials, space, machinery), and it can be understood as representing the time, effort, and resources required to move from one event to another. It cannot be completed until the event preceding it has occurred.

  PERT activity
• the minimum possible time required to accomplish a

  task, assuming everything proceeds better than is normally expected

  Optimistic time
• the maximum possible time required to accomplish a task, assuming everything goes wrong (but excluding major catastrophes).

  Pessimistic time
• the best estimate of the time required to accomplish a task, assuming everything proceeds as normal.

  Most likely time
• the average time the task would require if the task were repeated on a number of occasions over an extended period of time

  Expected time
• the longest possible continuous pathway taken from the initial event to

  the terminal event.

  Critical Path
• It determines the total calendar time required for the project; and, therefore, any time delays along the critical path will delay the reaching of the terminal event by at least the same amount.

  Critical Path
• the time by which a predecessor event must be completed in order to

  allow sufficient time for the activities that must elapse before a specific PERT event is reached to be completed.

  Lead time
• the earliest time by which a successor event can follow a specific PERT

  event.

  Lag time
• measure of the excess time and resources available in achieving this event.

  Slack
• It indicates ahead of schedule

  Positive slack
• It indicates behind schedule

  negative slack
• It indicates on schedule.

  zero slack
• ES

  Early Start
• maximum EF of all predecessor activities, unless the activity in question is the first activity, wherein ES is 0

  Early Start (ES)
• EF

  Early Finish