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CPM and PERT: Introduction of PERT and CPM, Planning scheduling and controlling, bar charts, PERTand CPM networks
CPM and PERT: Introduction of PERT and CPM, Planning scheduling and controlling, bar charts, PERTand CPM networks

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Published by: Savant on Feb 04, 2013
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CPM and PERT: Introduction of PERT and CPM, Planning scheduling and controlling, bar charts, PERTand CPM networks.Management is continually seeking new and better control techniques to cope with thecomplexities, masses of data, and tight deadlines that are characteristic of highly competitiveindustries. Managers also want better methods for presenting technical and cost data to customers.Scheduling techniques help achieve these goals. The most common techniques are1.
Gantt or bar charts2.
Milestone charts3.
Line of balance4.
Program Evaluation and Review Technique (PERT)6.
Arrow Diagram Method (ADM) [Critical Path Method (CPM)]7.
Precedence Diagram Method (PDM)8.
Graphical Evaluation and Review Technique (GERT)Advantages of network scheduling techniques include1.
They form the basis for all planning and predicting and help management decide how to useits resources to achieve time and cost goals.2.
They provide visibility and enable management to control “one
kind” programs.
They help management evaluate alternatives by answering such questions as how timedelays will influence project completion, where slack exists between elements, and whatelements are crucial to meet the completion date.4.
They provide a basis for obtaining facts for decision-making.5.
They utilize a so-called time network analysis as the basic method to determine manpower,material, and capital requirements, as well as to provide a means for checking progress.6.
They provide the basic structure for reporting information.7.
They reveal interdependencies of activities.8.
They facilitate “what if” exercises.
They identify the longest path or critical paths.10.
They aid in scheduling risk analysis.The three basic project planning techniques are Gantt chart, CPM and PERT. All monitor progressand costs against resource budgets.
Gantt chart
Gantt charts are also called Bar charts. The use of Gantt charts started during the industrialrevolution of the late 1800's. An early industrial engineer named Henry Gantt developed thesecharts to improve factory efficiency.
Gantt chart is now commonly used for scheduling the tasks and tracking the progress of energymanagement projects. Gantt charts are developed using bars to represent each task. The length of the bar shows how long the task is expected to take to complete. Duration is easily shown on Ganttcharts. Sequence is not well shown on Gantt Charts.Pictorial representation of projects in the form of bars is a Gantt chartThis technique graphically represents the progress of a project versus the time frame within which itmust be completedGantt charts allow project managers to plan all activities, estimate the time necessary to completeeach, estimate the time required to complete the overall project and monitor project progressFigure: Example of Gantt chartWeaknesses in Gantt charts1.
Interdependencies of activities is not established2.
Project progress cannot be identified3.
Uncertainties are not shown
The major discrepancy with Gantt, milestone, or bubble charts is the inability to show theinterdependencies between events and activities.Interdependencies are shown through the construction of networks.Network analysis can provide valuable information for planning, integration of plans, time studies,scheduling, and resource management. The primary purpose of network planning is to eliminate theneed for crisis management by providing a pictorial representation of the total program.The following management information can be obtained from such a representation:
Interdependencies of activities
Project completion time
Impact of late starts
Impact of early starts
Trade-offs between resources and time
“What if” exercises
Cost of a crash program
Slippages in planning/performance
Evaluation of performanceNetworks are composed of events and activities. The following terms are helpful in understandingnetworks:Event: Equivalent to a milestone indicating when an activity starts or finishes.Activity: The element of work that must be accomplished.Duration: The total time required to complete the activity.Effort: The amount of work that is actually performed within the duration.Critical Path: This is the longest path through the network and determines the duration of theproject. It is also the shortest amount of time necessary to accomplish the project
CPM - Critical Path Method
DuPont developed a Critical Path Method (CPM) designed to address the challenge of shutting downchemical plants for maintenance and then restarting the plants once the maintenance had beencompleted.Complex project, require a series of activities, some of which must be performed sequentially andothers that can be performed in parallel with other activities. This collection of series and paralleltasks can be modelled as a network.

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