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CHAPTER 4

INTRODUCTION
 What is PERT and what is CPM?
 PERT means Program Evaluation and Review
Technique
 CPM means Critical Path Method
History
 PERT and CPM were developed independently in
the later part of 1950’s . These two are networks.
Techniques , used for planning and coordinating
large scale projects.
PERT
 The use of PERT began in 1958 through the joint
efforts of the Lockhead Aircraft, the U.S. Navy Special
Project Office and the consulting from the Booz , Allen
and Hamilton in the efforts of the U.S. government to
speed up the Polaris Missile project.
PERT
 The U.S. government’s apprehension that the Soviet
Union, might gain nuclear superiority over the U.S.,
early completion of the project was given top priority.
A special operations research team was directed to
formulate a new approach considering that the
management concepts and methods at that time were
not adequate. The concept was formulated by the
research team and is then called Program Evaluation
and Review Technique, which is simply called PERT.
PERT
 The Polaris Missile project is a large one involving over
3,000 contractors and 11,000 sub-contractors with
several thousand of work activities. The use of PERT in
this large scale project was proven successful in
shortening the length of the project completion time.
CPM
 In 1956, prior to the development of PERT, the Critical
Path Method which is simply called CPM was
developed by J.E. Kelly of the Remington Rand Corp.
and M.R. Walker of Du Pont in an effort by
commercial industry to make an advanced scheduling
and cost control methods. By April 1958, CPM in
application was demonstrated in a real success.
PERT and CPM
 CPM was designed as a tool for planning, scheduling,
and control of construction work. Its emphasis was on
the work or activities to be managed. The network
diagram defined and focused attention on the job to
be accomplished. The schedule derives the earliest and
the latest times for their start and finish.
PERT and CPM
 PERT was developed as a result of looking for an
improved method of planning and evaluating progress
of a large scale research and development program. It
was designed to provide the management a periodic
reporting of current status and an outlook for the
future on meeting approved plans and schedules. It
answers the questions such as: “Is this a feasible
schedule?” and “What are the probabilities of making
it?
PERT and CPM
 Although both were developed independently, yet,
they have a great deal in common. Users adopted a
certain features from one technique for use with the
other.
PERT and CPM
 For instance , PERT originally stressed probabilistic
activity time estimate because the field in which it was
developed was typified by high uncertainty. In
contrast, CPM originally made no provisions for
variable time estimates. However , from a conceptual
analysis, most of these differences are the same. For
practical purposes, the two techniques are the same.
Thus, comments and procedure described will apply to
both PERT and CPM project analysis.
PERT and CPM
 PERT/CPM is a control tool for defining the parts of
construction job and then putting them together in a
network form. It serves as an aid to the construction
manager but it does not make decision for him it
guarantee good management. PERT/CPM only serves
the project manager to see the whole picture of the
entire job. It encourages periodic re-evaluation and
providing an accurate measure of progress. Thus, a
person in charge of each work and the project manager
know what is supposed to happen and when it is
supposed to happen.
“ First comes thought; then organization of that
thought, into ideas and plans; then transformation of
those plans into reality. The beginning, as you will
observe is in your imagination.” – Napoleon Hill