University Name: SBM1201 Project Time Cost Management PERT Report

This report delves into the Program Evaluation and Review Technique (PERT), a probabilistic project management method used for analyzing tasks and determining the critical path. It contrasts PERT with the Critical Path Method (CPM), highlighting PERT's stochastic nature and reliance on three time estimates (optimistic, pessimistic, and most likely) to calculate activity durations. The report explains the use of beta distribution in PERT due to the absence of reliable data, and how the mean and variance are calculated. Furthermore, it outlines the components of a PERT chart, including events, activities, and the critical path. The report also acknowledges the limitations of PERT, specifically its tendency to underestimate schedule risks associated with non-critical activities. Finally, the report concludes by emphasizing PERT's role in identifying the minimum time needed to complete a project, making it a valuable tool for project managers. The provided report is a student submission and is available on Desklib, a platform offering AI-based study tools for students.

Running head: PROJECT TIME COST MANAGEMENT
PROJECT TIME COST MANAGEMENT
Name of the Student:
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1PROJECT TIME COST MANAGEMENT
PERT Analysis
Introduction
Program Evaluation and Review Template (PERT) is the method that is used for
examining the tasks which are in schedule as well as determine Critical Path Method (CPM)’s
variation. This analyses time that is required for completing evert task along with the associated
dependencies for determining minimum time for completing a project. This estimated shortest
possible period of time which would be taken by each task (Ballesteros-Perez 2017). For
conducting PERT analysis, there is collection of three time estimates such as most likely,
optimistic and pessimistic for every activity along with critical path. There is use of the estimates
for calculating time required for each stage of a project.
PERT Chart or Project Network
Management is helped by project network for calculating estimation of time to complete
a project. This provides also idea of series where several activities are carried out as well as
estimated time taken for completing every task. Through PERT chart, few elements could be
quickly identified such as event, activity and critical path. An event could be understood as node
where an activity begins or ends. Activity refers to actions taken for accomplishing as part of
execution process of a project (Akpan and Agadaga 2020). Estimated time that is required to
perform specific task is stated. Critical path is path that passes through every essential activities
that are performed in sequence as well as links first event with last event.

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Probability Concept
While CPM depends on single value estimate expression or deterministic time duration,
however within PERT, activity’s duration is random variable along with relatively huge
variances. Beta distribution could be described by standard and mean deviation that are
calculated by using three estimates of duration of activity (Roos and den Hertog 2018). As there
is not availability of reliable data for evaluating specific PERT distribution, there is assumed
generally that this falls on beta probability distribution curve.
Three estimates of duration of activity
Activity’s time duration is m. It is same as deterministic time estimate of activity within
CPM. An activity’s most optimistic tie duration is a. It shortest time duration as well as is
equivalent with chance of one-in-a-hundred that time estimate could be achieved (Uddin and
Jinia 2017). Most pessimistic estimation of time is b. It is longest duration which represents
worst scenario as well as is equivalent to chance of one-in-a-hundred that the things would go
badly. Variance s as well as mean te of activity could be calculated as:
s = (b-a)/6
te = (a + 4m + b)/6
Issues of PERT Analysis
PERT analysis underestimates usually schedule risk, as risks that are associated with the
non-critical activities are not sufficient considered. Within PERT analysis, while there are more
floats over non-critical paths, better is the probability to complete schedule within time.

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Conclusion
PERT analysis is method for analyzing tasks which are involved to complete project,
especially time needed for completing every task along with to identify minimal time required
for completing total project. PERT analysis offers management tools that relies upon arrow and
node diagrams of events and activities, where arrows represents work or activities needed for
reaching nodes or events which indicate total project’s every completed phase.

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References
Akpan, N.P. and Agadaga, G.O., 2020. Modelling Building Renovation Using PERT. Asian
Research Journal of Mathematics, pp.25-38.
Ballesteros-Perez, P., 2017. M-PERT: Manual project-duration estimation technique for teaching
scheduling basics. Journal of construction engineering and management, 143(9), p.04017063.
Roos, E. and den Hertog, D., 2018. A Distributionally Robust Analysis of PERT.
Uddin, K.S. and Jinia, A.A., 2017. Simulation of Automated Warehouse System: Using CPM
and PERT Method. Simulation, 9(11).