Project management can be understood as a systematic way of planning,

scheduling, executing, monitoring, controlling the different aspects of

the project, so as to attain the goal made at the time of project
formulation. PERT and CPM are the two network-based project
management techniques, which exhibit the flow and sequence of the
activities and events.

BASIS FOR
PERT CPM
COMPARISON

Meaning PERT is a project CPM is a statistical

management technique, technique of project
used to manage uncertain management that manages
activities of a project. well defined activities of a
project.

What is it? A technique of planning A method to control cost

and control of time. and time.

Orientation Event-oriented Activity-oriented

Evolution Evolved as Research & Evolved as Construction

Development project project

Model Probabilistic Model Deterministic Model

Focuses on Time Time-cost trade-off

Estimates Three time estimates One time estimate

Appropriate for High precision time Reasonable time estimate

estimate

Management of Unpredictable Activities Predictable activities

Nature of jobs Non-repetitive nature Repetitive nature

 BASIS FOR
PERT CPM
COMPARISON

No differentiation Differentiated
ritical and Non-
critical activities

Suitable for Research and Non-research projects like

Development Project civil construction, ship
building etc.

Crashing concept Not Applicable Applicable

PERT is an acronym for Program (Project) Evaluation and Review

Technique, in which planning, scheduling, organizing, coordinating
and controlling uncertain activities take place.
Critical Path Method or CPM is an algorithm used for planning,
scheduling, coordination and control of activities in a project. Here, it is
assumed that the activity duration is fixed and certain.

Finance
Project finance is the long-term financing of infrastructure and
industrial projects based upon the projected cash flows of the project
rather than the balance sheets of its sponsors. Usually, a project
financing structure involves a number of equity investors, known as
'sponsors', a 'syndicate' of banks or other lending institutions that
provide loans to the operation.
Project finance may come from a variety of sources. The
main sources include equity, debt and government grants.
The common forms of debt are:
 Commercial loan.
 Bridge finance.
 Bonds and other debt instruments (for borrowing from the capital
market)
 Subordinate loans.
They are most commonly non-recourse loans, which are secured by
the project assets and paid entirely from project cash flow, rather than
from the general assets or creditworthiness of the project sponsors, a
decision in part supported by financial modeling.
Risk identification and allocation is a key component of project
finance. A project may be subject to a number of technical,
environmental, economic and political risks, particularly
in developing countries and emerging markets.

SCOPE
Project scope is the part of project planning that involves
determining and documenting a list of specific project goals,
deliverables, features, functions, tasks, deadlines, and ultimately
costs. In other words, it is what needs to be achieved and the work
that must be done to deliver a project.
A project scope, or project scope statement, is a tool used to
describe the major deliverables of a project including the key
milestones, high level requirements, assumptions, and constraints.
It also defines the boundaries of a given project and clarifies what
deliverables are in and out of scope.
The three processes involved in project scope management are:
 Planning: This includes capturing and defining the work that needs to
be done
 Controlling: This step focuses on scope creep, documenting, tracking
and approving/disapproving of changes
 Closing: This includes an audit of the project deliverables and
assessing the outcomes of the original plan