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PERT Method -Program Evaluation and Review Technique Example infographic

The PERT Method – Program Evaluation and Review Technique

Example & De nition
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In this article, we will discuss the pert de nition and demonstrate how to make a pert chart
by using a pert example.The PERT Method (or Program Evaluation and Review Technique) is
one of the most common scheduling techniques for network analysis which is used to
coordinate complex tasks. PERT Method helps to analyze the work schedule by focusing on
each task and calculate the minimum time required to complete the project.
In this respect, it is similar to the Critical Path Method (CPM). Both of them uses a common
approach for preparing the network and determining its critical path. But there are some
di erences between them.

What is PERT ? (PERT De nition)

PERT Method was rst developed by the US Navy SPO (Special Projects O ce) in 1967 during
the Polaris missile development program then it was applied to the other industries. Both
CPM and PERT are complementary tools and they are developed at roughly the same time.
Unlike other methods, PERT is an event-oriented technique which uses three-time estimates
(optimistic, expected, and pessimistic) for each task. With this aspect, it employs uncertainty
while calculating the task durations. These characteristics make the PERT Method useful for
large-scale, complex and non-routine projects.

The WBS (Work Breakdown Structure) concept which divides the scope into manageable
sections was developed in conjunction with the PERT Method.

Key Differences Between the PERT Method and the CPM (Critical Path Method)

Below are some key di erences between the PERT Method and the Critical Path Method

– In CPM Method activity durations are well de ned but in PERT Method , time estimations
are uncertain.
– CPM is a method of control of time and costs, however, PERT is a technique of planning
and control of time.
– There are three estimates in PERT such as optimistic, pessimistic and most likely. In CPM
Method, there is only one estimate.
– In PERT diagram, only FS relationship type is applicable. In CPM diagram 4 relationship
types (FS,SS,SF,FF) can be applicable.

– PERT is event-oriented however, CPM is start and completion oriented.

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– PERT is more applicable to research and development projects rather than CPM.

Basics of the PERT Method

The PERT method employs simple statistic calculations. It uses three-time estimations.

Optimistic Estimate: The shortest time required to complete the task.

Pessimistic Estimate: The longest time required to complete the task.
Most Likely Estimate: The most possible time (probable duration) required to complete the task.

Expected time is calculated by the help of the formula below

Expected time = ( Optimistic + 4 x Most likely + Pessimistic) / 6

The PERT Method Implementation Steps

1. List the activities and milestones

The rst step is to determine the tasks required to complete the project.

2. Determine the sequence of activities

The second step is to determine the order of the activities. Which activity is predecessor
which one is the successor. It is easy to determine the sequence of some activities however
the sequence of some tasks may require deep analysis.

3. Build a network diagram

The third step is to create the network diagram by the help of a software or by hand and
place the activities on the diagram.

4. Estimate the activity durations

The PERT Method uses three duration estimates for activities which are;

Optimistic Estimate
Pessimistic Estimate
Most Likely Estimate

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By the help of three estimates, expected duration is calculated.

5. Determine the critical path

The critical path is the longest path of the network diagram. Forward and backward pass
calculations is used to determine the critical path.

The PERT Method Example

Let’ s assume that you are a project manager of a power plant project and you listed;
– All the Activities
– Predecessors
– Optimistic, Pessimistic and Most Likely Activity Durations
By using “The Pert Formula = (To + 4Tm + Tp)/6”, you calculated the expected duration for
each activity.
All the inputs are listed in the table below.

PERT – Program Evaluation and Review Technique Example

The associated network is below.

PERT Example
PERT Method Example

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After building a network diagram and estimating the activity durations, you will determine
the critical path by making forward and backward pass calculations.
Forward Pass Calculations specify the minimum dates at which each activity can be
performed and, ultimately, the minimum duration of a project.

PERT -Forward Pass Calculation

Backward Pass Calculations determine the latest dates by which each activity can be
performed without increasing the projects minimum duration.

PERT -Backward Pass Calculation

After completing the backward pass calculation, you can easily determine the critical path. In
project management, “ oat” or “slack” is the amount of time that a task can be delayed
without a ecting the deadlines of other subsequent tasks, or the project’s nal delivery
date. Total oat/slack is 0 on the critical path.

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PERT Method -Activity

Total Float: LS – ES = 18-15 = 3

Total Float: LF – EF = 30-27 = 3

The total oat can be calculated by subtracting the Early Start date of an activity from its
Late Start date or Early Finish date from its Late Finish date.

Critical Path

When we analyze the network diagram we will see that there are some paths and every path
have duration.
The critical path is the longest path in the network diagram and the total oat of the critical
path is zero.

Summary
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In real life, projects are not executed as it was planned all the time. Risks, unexpected
events, uncertainty, and subjective estimates are signi cant reasons for deviations. PERT is
helpful for estimating the project completion time in case of uncertainty. However, it may be
di cult to use without software.

In this example, we talked about the pert de nition and calculated the expected duration for
each activity. By making forward, backward calculations, we determined the critical path.
Accuracy of expected durations which a ect the critical path depends on the optimistic,
pessimistic and most likely duration estimates. By the help of PERT software, it is easy to
make these calculations e ciently for many combinations.

External References

Choosing your networking technique

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