Balt Normaleah PEM304

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Republic of the Philippines

MINDANAO STATE UNIVERSITY


College of Education
Graduate Education Department

Reporter: Normaleah Papandayan Balt, LPT, MAEd


Course: PEM 304 (Seminar in Strategic Planning and Management)
Professor: Dr. Montia Jamilah D. Sarip
__________________________________________________________________

PERT/CPM Principle and Application

Introduction
CPM/PERT or Network Analysis as the technique is sometimes called, developed along two
parallel streams, one industrial and the other military.
 PERT and CPM are basically time-oriented methods in the sense that they both lead to
determination of a time schedule for the project. These techniques are referred as
project scheduling techniques.
PERT (Project (Program) Evaluation and Review Technique) is a
technique use to plan and control large scale project.
CPM (Critical Path Method) is a network analysis technique used in
planning, scheduling, and controlling of complex but routine
activities.

Brief History of PERT/CPM


PERT (Project Evaluation and Review Technique) was devised in 1958 for the POLARIS missile
program by the Program Evaluation Branch of the Special Projects office of the U.S.Navy,
helped by the Lockheed Missile Systems division and the Consultant firm of Booz-Allen &
Hamilton. The calculations were so arranged so that they could be carried out on the IBM Naval
Ordinance Research Computer (NORC) at Dahlgren, Virginia
CPM (Critical Path Method) is a project modeling technique discovery of Morgan R.Walker of
E.I.Du Pont de Nemours & Co. and James E.Kelly of Remington Rand, circa 1957. The
computation was designed for the UNIVAC-I computer. 4] Kelley attributed the term "critical
path" to the developers of the PERT, which was developed at about the same time by Booz
Allen Hamilton and the U.S. Navy. [5] The precursors of what came to be known as Critical Path
were developed and put into practice by DuPont between 1940 and 1943 and contributed to
the success of the Manhattan Project.[6] The first test was made in 1958, when CPM was
applied to the construction of a new chemical plant. In March 1959, the method was applied to
maintenance shut-down at the Du Pont works in Louisville, Kentucky. Unproductive time was
reduced from 125 to 93 hours.

Planning
 The Planning phase is started by splitting the total project into small projecs. These
smaller projects, in turn, are divided into activities and are analysed by the department
or a section. The relationship of each activity with respect to other activities are defined
and established and the corresponding responsibilities and the authority are also stated.
Thus, the possibility of over- looking any task necessary for the completion of the
project is reduced substantially.

Scheduling
 The ultimate objective of the scheduling phase is to prepare a time chart showing the
start and finish time for each activity as well as its relationship to other activities of the
project. Moreover, the schedule must pinpoint the critical path activities which require
special attention if the project is to be completed in time.
 For non- critical activities, the schedule must show the amount of slack or float times
which can be used advantageously when such activities are delayed or when limited
resources are to be utilized effectively. In this phase, it is possible to resource
requirements such as time, manpower, money, machines etc.

Controlling
 The final phase in project management is controlling. Critical path method facilitates the
application of the principle of management by exception to identify areas that are
critical to the completion of the project.
PERT CPM
Event- oriented -orientation- Activity- orientation
Probabilistic - activities- Deterministic
Time -focus- Time and cost trade- off
Three times estimates -estimates- One-time estimate
High precision time estimate -suitable for- Reasonable time estimate

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