PERT AND CPM

PERT
• Program Evaluation and Review Technique
• Begun in 1958 through the joint efforts of
Lockheed Aircraft, US Navy Special Project
Office and the consulting firm of Booz, Allen
and Hamilton to speed up Polaris Missile
project.
• Designed to provide management a periodic
reporting of current status.
 CPM
• Developed in 1956 by J.E. Kelly of Remington
Rand Corp and M.R. Walker of Du Pont to
make an advanced scheduling and cost control
methods.
• Designed as tool for planning, scheduling and
control of construction work, with emphasis
on the work or activities to be managed.
 THREE PHASES OF PERT-CPM

• Planning
• Scheduling
• Control-Monitor
 PLANNING
• Determining the relationship between the
work operation and the sequence in which
they are to be performed. Scheduling or
sequencing involves distribution of work time
to each work operation and determining when
to start and when to finish.
 CPM INFORMATION
1. PERT/CPM pinpoint the particular work
operations whose completion times are
responsible for controlling the complete
date.
2. It provides a mean of speeding up a project
without excessive costs for overtime.
Without it, speeding up a project may result
to waste.
3. It gives a time leeway or float available for
each of the non-critical work operations. The
information on float time will give the project
manager that opportunity to maneuver in
their planning and control operation.
4. It establishes time boundaries for operations
with possibilities of shifting resources,
equipment and manpower to meet time
requiremnts.
5. PERT/CPM indicates the earliest starting date
for each work operations and sub-contracts
for supply and delivery of materials.
6. It shows the most advantageous scheduling
for all operations.
7. It offers as a means of assessing the effect on
the overall project variations in one
operation such as change orders.
8. Offers a means of re-scheduling of operations
but still to be completed at least cost in case
of change order with contract time
extension.
9. Additional payment will be understood by
owner and contractor when critical path
schedule is revised to reflect any change
order.
10. Network can be revised for any serious
delays due to weather, late material or
equipment delivery.
 SCHEDULING
• In PERT/CPM, scheduling is the process of
translating the arrow diagrams into time table of
calendar days.
• PERT/CPM schedule shows the relationships
between the operations and the leeway
limitations.
• Job control through the use of PERT/CPM gives
the management a reliable systems identifying
job problems within days instead of months
 PERT/CPM diagrams should
account for
• Time discrepancies
• Deliveries
• Whether
• Change orders
• Unexpected events or conditions
 CONTROLLING AND MONITORING
• To keep the schedule more up to date and
meaningful, flexibility and updated re-
computation brought about by changing
conditions is necessary and is the key to a
successful network programming.
 5 INPUTS IN PLANNING PHASE
• Network diagram defining the activities of the
project,
• Duration of activities
• Cost estimates of activities
• Resource estimates
• Trade indicators (responsibility)for activity
grouping
 Schedule phase
1. Schedule of activities in the network showing
– Critical activities
– Earliest start date for each activity
– Earliest finish date for each activity
– Latest start date for each activity
– Latest finish date for each activity
– Float or extra time available for an activity
2. A bar chart or time scaled network (arrow
diagrams)
3. Resource analysis (manpower, kind of
resources, equipments required for each day
of the project)
4. Cash requirement (how much cash to be
disbursed and amount to be collected for
work accomplishment)
CONTROL MONITOR PHASE uses data
such as
• Addition to the project
• Deletion from the project
• Changes as to duration, description, cost
estimates or resource estimates
• Actual starting dates
• Actual finishing dates
 OUTPUT PHASE
• Time status report
• Revised schedules
• Revised bar charts / arrow diagrams or
network
• Revised resource analysis
• Revised cash flow prediction
• Cost status report