CPM and PERT (Program Evaluation and Review Technique) are most commonly

used methods for project management. There are some similarities

and differences between PERT and CPM. PERT can be applied to any field requiring
planned, controlled and integrated work efforts to accomplish defined objectives.
http://civilengineersforum.com/pert-cpm/
Critical Path Method is a means to forecast the shortest possible time a project will
take. Basically the Critical Path runs along tasks that are dependant on one another
and cannot be moved. Therefore logically, this is the shortest path through the
project. The CPM method is concerned with making the optimum tradeoff between
project completion time and project cost. Like the PERT method, CPM can only be
applied if we have some information about the activities making up the project.
PERT (Program, Evaluation and Review Technique) is used to determine how long a
project should take to complete, and which steps in the project planning are most
critical -- that is, which steps would act as bottlenecks if delayed. To apply the
method, certain information is needed in advance: it must be possible to analyse
the project into activities, the dependency relationships between the activities must
be known, and the time taken for each activity must be known or at least estimable.
Some cases are too simple for PERT -- cases where we've performed very similar
projects many times before, and know that the current project will take the same
time as they did, plus or minus a few per cent. Other cases are too complex -- for
example, the Manhattan project, where the individual activities making up the
project are themselves so novel that we don't know whether they're feasible at all,
let alone how long they can be expected to take.
PERT and CPM are both methods for predicting the cost and completion time of
projects. PERT is usually concerned just with the time taken, while CPM looks at
cost/time tradeoffs.
https://ph.answers.yahoo.com/question/index?qid=1006052320179
Evolution of Network Analysis
Contemporary network approaches to managerial planning and control have
combined several evolving managerial technologies . These include (1) the systems
approach to management with its emphasis upon holism and the effects of
interdependencies ; (2) the project form of organization, which is also grounded
conceptually in systems thinking ; (3) the use of computers-which have made it
possible to rapidly process sizable numbers of calculations-for simulating the effects
of alternative decisions and for generating network graphics in a timely manner ; (4)
flowcharting techniques for logically portraying complex sets of data economically;
and (5) planning technologies such as Gantt, line of balance, and milestone charting
. The Critical Path Method (CPM) was developed by the Dupont Corporation with
assistance from RAND in 1956. The Program Evaluation and Review Technique
(PERT) was developed in 1957 by the Navy's Special Projects Office (with the
assistance of Booz-Allen-Hamilton) to aid in managing the development of the
Polaris weapon system . Subsequently, a multitude of similar planning and control

systems flooded the market and a variety of "bells and whistles" were added . PERT
originally focused only upon tirue . variables, but it was not long before it became
possible to incorporate cost variables as well. Sophisticated computer programs
became essential for full-blown applications of these planning technologies to
handle the quantity of calculations required by periodic updating of network plans
or for simulation analysis . Some federal agencies such as the Navy Department
moved toward policies of uniformly requiring the use of PERT on their principal
projects and toward establishing standard report formats, computer programs, and
so forth . For a while PERT was treated almost as a fad ; everyone wanted it with the
latest wrinkles . After several years a more realistic view developed as the
economics of planning became evident . Some retrenchment in the use of PERT was
then experienced for several reasons . First, making detailed and current planning
information available to managers at higher echelons reduces the "cost" of their
participating in great depth in the management of projects. This changes
organizational influence patterns in ways that produce reasonably grounded
resistance . Second, the effort to ELI ZJI `jJ jI CoMir, FML[as, ,U onv~~ns .r!' MI
systematize planning and control systems began to produce a rigidity that was
viewed as counterproductive . Third, and perhaps most importantly, computerbased planning and control systems can become extremely costly to employ.
(Fortunately, there are less costly and simpler ways to use network analysis and
derive its benefits without using computers .)
http://web.pdx.edu/~stipakb/download/PA557/PERT-Overview2.pdf
The arrow diagram shows the required order of tasks in a project or process, the
best schedule for the entire project, and potential scheduling and resource problems
and their solutions. The arrow diagram lets you calculate the critical path of the
project. This is the flow of critical steps where delays will affect the timing of the
entire project and where addition of resources can speed up the project.
http://asq.org/learn-about-quality/new-management-planning-tools/overview/arrowdiagram.html
The Network The circles, or e_vents,represent identifiable points jq_time at which an
activity is begun or completed, . These points of specific accomplishment ate
-iio6imally described in a summary way by placing a few key words within the
appropriate circle
No time- or resource-consuming effort is involved for events . The arrows, or
activitie , represent tasks to be accomplished ; that is, the time- and resourceconsuming effort required in order to complete an event
Activities with a predecessor-successor relationship take place in "sequence'; that is,
the prior activities and associated events must be completed prior to the beginning
of successor activities and events . Hence, there is an "interdependency" between
them . Activities going on in "parallel" must be "independent" of one another, as is
the case for activities E and F above .
Time Estimates 8 man-weeks 6 man-weeks In a standard PERT network, three time
estimates are acquired for each activity on the network . Acquisition of three time

estimates provides a means of gauging the amount of uncertainty involved in the

plan . More importantly, insight is acquired as to why there is uncertainty .
Optimistic, pessimistic, and "most likely" time estimates arc obtained, thus allowing
the calculation of an "expected time" (te) and standard deviations reflecting the
amount of uncertainty involved in the activity estimate .
The Critical path of a network is the longest path (in terms of time) through the
network . Time delays on this path result in delays in ac- complishing the total
project . ack is the concept used to refer to the difference between the TL (latest
allowable time) and the TE (earliest expected time) for the completion of a given
event . The amount of slack available tells whether an event and its associated
activities are on the critical path (longest path through the network) . An event on
the critical path has 0 slack . All other events have ascertainable amounts of slack,
knowledge of which provides managers with an understanding of their available
flexibility
. Slack may be positive or negative; negative slack occurs when projects fall behind
schedule. Slack for an event = that event's TL - its TE. The standard deviation of the
critical path provides a measure of the extent of uncertainty involved in the plan's
scheduled completion time (Ts ) for the total project . It is obtained by summing the
variances for each activity on the critical path and then taking the square root of the
sum to obtain the desired standard deviation .

When to Use an Arrow Diagram

When scheduling and monitoring tasks within a complex project or process

with interrelated tasks and resources.

When you know the steps of the project or process, their sequence and how
long each step takes, and.

When project schedule is critical, with serious consequences for completing

the project late or significant advantage to completing the project early.
Expected Completion Time
A strength of PERT/CPM charts is their ability to calculate exactly how long a project
will take. PERT/CPM provides managers with a range of time in which the project
should be completed, based on the total of all minimum and maximum time limits
for all activities. This gives companies a number of advantages, such as the ability
to tell customers exactly when their orders will be filled, or to know exactly when to
order new supplies.
The expected completion time of the project is based on ideal situations, however,
and does not take into account the possibility of unforeseen events. The expected
completion time of all subsequent activities and the project as a whole can become
skewed when things go wrong, which can cause problems if the company has made
plans that rely on the timely completion of the project.

Another weakness of PERT/CPM is that the technique relies on past data and
experience to formulate completion time predictions. New companies may not have
any past experience to lean on, putting them at a disadvantage.
Efficiency
Businesses can share PERT/CPM charts among all key employees, letting employees
at each station know exactly when they will be required to begin work processes,
where the required inputs will come from, where the outputs must go, and when
their task must be completed. This can help dispersed employees to operate
efficiently by having a common understanding of the expected work flow.
When things go wrong, however, the very thing that encouraged efficiency might
suddenly cause confusion. When a project is held up due to an unforeseen
circumstance, workers at all subsequent stations must delay their own progress
while explaining to subsequent stations' employees why outputs are not flowing.
Related Reading: How to Assess Team Members' Strengths & Weaknesses
Critical Path
The critical path identified in a PERT/CPM chart shows managers which activities are
the most time-critical. This allows managers to focus process improvements on the
tasks that are most vital to the timely completion of the project. More slack time can
be created by reducing the processing time at critical points in the project, or the
project schedule can be tightened up for a quicker turnaround.
Managers may place too much emphasis on activities along the critical path,
however. A weakness of CPM is that it focuses primarily on the time aspect of
activities, neglecting other concerns, such as quality and cost control. Focusing too
much attention on the critical path can cause managers not to notice possible
production improvements in other activities.

http://smallbusiness.chron.com/cpm-pert-weaknesses-strengths-1082.html

Critical path activities are the project tasks that must start and finish on time to
ensure that the project ends on schedule. A delay in any critical path activity will
delay completion of the project, unless the project plan can be adjusted so that
successor tasks finish more quickly than planned.
https://docs.oracle.com/cd/E17462_01/Web_Access/Help/en/Projects/Tasks/pm_cpm.
htm