Report on PERT and CPM in Project Management

Added on - 29 Apr 2020

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PROJECTMANAGEMENT
TABLE OF CONTENTSINTRODUCTION......................................................................................................................3Description of PERT and CPM..............................................................................................3LITERATURE REVIEW...........................................................................................................4History of PERT and CPM....................................................................................................4Basic steps in networking technique......................................................................................5PERT and CPM Methodology...............................................................................................6Application of PERT and CPM..............................................................................................7Comparison between PERT and CPM.................................................................................11Limitations of PERT and CPM............................................................................................12REFERENCES.........................................................................................................................14TABLE OF FIGURESFigure 1: Project crashing..........................................................................................................8Figure 2: Time and cost relationship..........................................................................................8Figure 3: Project schedule..........................................................................................................9Figure 5: Network diagram......................................................................................................10
INTRODUCTIONThe business organisations face most of the challenges in their jobs while managing alarge scale projects as these projects are completed through executing a number of activitieswhich are complex to manage (Fleming and Koppelman, 2016). For this purpose, it isessential to plan and coordinate in a highly effective manner so that a realistic schedule canbe developed. As per this, further process regarding monitoring of project is also made. Inthis entire project, management is done with the help of PERT (Programme Evaluation andReview Technique) and CPM (Critical Path Method) (Garel, 2013). These techniques assistin carrying out different responsibilities that are expected to be done by the project manager.These techniques basically make use of networks which helps in planning and coordinationof all the activities. For this purpose, a software package is used for managing data anddeveloping the scheduled information. The current report is based on discussion related toPERT and CPM which are the major requirements in project management.Description of PERT and CPMPERT and CPM are the most effective tools that are extensively used in themanagement of large scale projects. The major use of these projects are done in constructionssector, research and development of a new product, movie productions, installing a new MISor in conducting a new advertisement campaign. The PERT and CPM were developed onindependent basis in the late 1950s. Today’s software packages extensively use options forboth of the tools (Acebes, Pajares, Galán and López-Paredes, 2014). These two techniqueshave been merged over the years for assisting in managing various large level projects. PERTwas initially developed in 1950s by the Navy specialist officers with the management team.Since then, this tool is widely used by different branches of government industries to developproducts and executing researches. In present time, PERT is widely used by differentcontractors on large scale for managing and scheduling of their projects in easier way.Similarly, the CPM was firstly developed in 1957 by J.E. Kelly and M.R. Walker. TheCPM technique differs from PERT in the minor details related to management if time andcost treatment under this (Lee, et,al., 2016). While, it is evident that extensive features usedby the business firms related to both the techniques have made some distinctions vague. Theindustries have made an integration of the features that are highly used in management ofporojects so that its utility and ease if use can be enhanced. Both the techniques present a
good approach in development of tools that make easier for the management to handleschedule and monitoring of entire project.LITERATURE REVIEWHistory of PERT and CPMThe PERT and CPM are very useful project management techniques which came intoexistence for meeting the needs of military establishments and western industries to manageand efficient strategy plan and controlling the most complex projects (Zareei, 2018). ThePERT or Programme Evaluation and Review Technique is a statistical tool which is used inthe project management designing and analysing various tasks that are carried out foraccomplishment of a specific project. The technique of PERT was developed initially in 1950by US navy for giving the support to their project of Polaris missile during cold war era. Theapplication of PERT gradually spread a lot among various industries to handle a number oftasks. This tool was used in the Winter Olympics of 1968 as well to manage the organisationof various games.According to Seymour and Hussein, (2014) the said technique of PERT became quitefamous as it was an efficient management control tool which shapes the outlook formanaging different activities and meeting determined objectives on set time. The concept ofPERT was cultivated by the operations research team which was represented by the ORdepartment of Booz, Allen and Hamilton. With the emergence of PERT initially in navy formanagement of Polaris missile, it was extensively used by the aerospace industry as well tomanage the schedules time and cost expenses.The CPM or critical path method was initially developed in 1956 by a joint venturebetween Dupont chemical company and a computer firm Remington Rand for dealing withinter relationships of separate activities within project schedule. Colin and Vanhoucke,(2015) states that the mentioned method was first tested during 1958 for handling aconstruction project of a new chemical plant. Besides this, another testing was applied for amaintenance shut down at Du pont works in Louisville. This helped in reducing theunproductive time factor considerably from 125 to 93 hours. Thus, the usage of both PERTand CPM in integrated way initialised (Jeang, 2015).
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