QUANTITATIVE

TECHNIQUES FOR DECISION

MAKING
BRIEF INTRODUCTION
Project management has scientific methods of developing with,
implementation, monitoring, and control.
Various parameters of the project are considered. This includes
money, materials, human resources, time and other resources.
Includes range, time and price.
there is a network planning method for this. These are PERT and
CPM. PERT project management and CPM are two well-known
management techniques. PERT expands to Program Evaluation and
Review Technique. CPM is the critical path method.
What is PERT?
Program Evaluation and review technique (PERT) could also be a way
for estimating. It applies a weighted average of optimistic,
pessimistic, and presumably estimates when there's uncertainty with
the individual task/activity estimates. So, PERT could even be how to
gauge and estimate the time required to finish a task. this will be
often sort of a Three Point estimate but here we give more
weightage to the foremost likely estimate.
What is CPM?
The critical path method (CPM), or critical path analysis (CPA), is an
algorithm for scheduling a group of project activities.[1] it's
commonly employed in conjunction with the program evaluation and
review technique (PERT). A critical path is set by identifying the
longest stretch of dependent activities and measuring the time
required to complete them from start to end.

frameworks for PERT and CPM:

 Define a project
• The project requires one start and end task
• Build relationships between tasks
• Draw a "network" that connects all tasks
• Assign time and / or cost estimates to every task
• Calculate the critical path
• Use your network to plan, plan, monitor, and control your projects.
Advantages of PERT
• Large project planning: utilized by project managers when planning
large projects
• The PERT diagram explicitly defines the dependencies (priority
relationships) between the weather of a touch breakdown structure
(WBS) and displays them.
• PERT makes it easy to spot early start, late start, and slack for
every task.
• Optimistic and pessimistic time considered within the calculation.
the foremost likely time is more important. Helps to form a stronger
evaluation
• PERT gives you a stronger understanding of dependencies and may
reduce project duration. this may improve activity and task
duplication, if possible.
• you'll organize and graph large amounts of project data to be
utilized choose.
• PERT can indicate the probability of completion before a specific
time.
• Critical Path Visibility: accustomed clearly indicate the critical path.
A critical path could be a path that can't suspend or delay activity.
• Coordination skills: This helps improve communication within
different departments of the corporate.
Disadvantages of PERT
• There can potentially be hundreds or thousands of tasks and
individual dependencies.
• PERT cannot be easily scaled on small projects.
• Network diagrams are usually large and unwieldy, require multiple
pages to print, and use special sized paper.
• Time-based method: Because PERT is additionally a time-based
method, it's vital to finish the project or activity on time. If this
doesn't happen, problems may occur
• Subjective analysis: Here, project activity is recognized supported
the available data. However, this is often difficult because PERT
projects can only be applied to new projects that haven't been
repeated. Therefore, the gathering of data is subjective.
• Forecast Inaccuracies: PERT has no past records for any frame of
the project, so forecasts are useful. If the predictions are incorrect,
the project are adversely affected.
• Expensive: Too expensive in terms of a while, research, forecasting,
and resource consumption.
Advantages of CPM
• Provide long-term project coordination and planning blueprints. •
Detect important activity
• Easy to plan, plan, and manage projects
• Increase productivity
• Manage the resources you'd like
Disadvantages of CPM
• it'll be difficult to know for people that are new this method.
• The software you utilize are often expensive
• it's visiting take ages to form the CPM
• CPM might not be ready to create or control the schedule of
individuals assigned to a project
• The resource allocation can't be monitored correctly.
Network Analysis Application (PERT and CPM)
1. R & D project (F and D projects)
2. Equipment maintenance and transportation
3. Construction projects (buildings, bridges, dams)
4. Building an innovative industry
5.5. Planning and launching of recent products
6. Design of plants, machines, and systems
7. Shifting the manufacturing location to a definite location
8. Control of production in large shops
9. penetration programs
10. Organizations like large programs and conferences.

Conclusion
The difference between PERT and CPM isn't so small. Currently, PERT
and CPM are used complementarily.
Product managers usually don't have a degree in development. It
comes from a spread of other factors that help us come up with their
experiences, backgrounds, and ideas for launching new products.
maintaining with consumers and up-to-date information on market
requirements are sort of the foremost important aspects to
contemplate when developing new product ideas for the enterprise.
These factors reduce the likelihood of product failure and increase
the company's bottom line.

- PRANAV
21SBBA04
Pranavi