PERT, Gannt , MBO PERT INTRODUCTION The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT

, is a model for project management designed to analyze and represent the tasks involved in completing a given project. It is commonly used in conjunction with the critical path method or CPM.This project model was the first of its kind, a revival for scientific management, founded by Frederick Taylor (Taylorism) and later refined by Henry Ford (Fordism). DuPont corporation's critical path method was invented at roughly the sametime as PERT DEFINITION “Program (Project) Evaluation and Review Technique (PERT) is a project management tool used to schedule, organize, and coordinate tasks within a project.” “PERT is a method to analyze the tasks involved in completing a given project, especially the time needed to complete each task, and to identify the minimum time needed to complete the total project.” PERT was developed primarily to simplify the planning and scheduling of large and complex projects. It was developed by Bill Pocock of Booz, Allen Hamilton and Gordon Perhson of the U.S. Navy Special Projects Office in 1957 to support the U.S. Navy's Polaris nuclear submarine project. It is more of an event-oriented technique rather than start- and completion-oriented, and is used more in projects where time, rather than cost, is the major factor. OBJECTIVE The main objective of PERT is to facilitate decision making and to reduce both the time and cost required to complete a project. STEPS PERT planning involves the following steps that are described below. 1. Identify the specific activities and milestones. The activities are the tasks required to complete a project. The milestones are the events marking the beginning and the end of one or more activities. It is helpful to list the tasks in a table that in later steps can be expanded to include information on sequence and duration. 2. Determine the proper sequence of the activities. This step may be combined with the activity identification step since the activity sequence is evident for some tasks. Other tasks may require more analysis to determine the exact order in which they must be performed. 3. Construct a network diagram. Using the activity sequence information, a network diagram can be drawn showing the sequence of the serial and parallel activities. Each activity represents a node in the network, and the arrows represent the relation between activities. Software packages simplify this step by automatically converting tabular activity information into a network diagram.

The latest start and finish times are the latest times that an activity can start and finish without delaying the project. If the critical path is not immediately obvious. Most likely time – the completion time having the highest probability. LS and LF are found by working backward through the network. The critical path determines the total calendar time required for the project.Earliest Finish time LS – Latest Start time LF . Such a shortening of the project sometimes is referred to as project crashing. A distinguishing feature of PERT is its ability to deal with uncertainty in activity completion time. Determine the critical path. it may be helpful to determine the following four quantities for each activity: ES – Earliest Start time EF . Since the critical path determines the completion date of the project. Estimate the time required for each activity. For each activity. Three standard deviations from the mean is commonly used for the pessimistic time. It is common practice to specify optimistic time to be three standards deviations from the mean so that there is a approximately a 1% chance that the activity will be completed within the optimistic time. The earliest start and finish times of each activity are determined by working forward through the network and determining the earliest time at which an activity can start and finish considering its predecessors activities. the project can be accelerated by adding the resources required to decrease the time for the activities in the critical path.4. the total project time does not change. The difference in the latest and earliest finish of each activity is that activity’s slack. but any consistent unit of time can be used. Weeks are a commonly used unit of time for activity completion. .Latest Finish time These times are calculated using the expected time for the relevant activities. Note that this time is different from the expected time. the model usually includes three time estimates: Optimistic time – generally the shortest time in which the activity can be completed. 5. The critical path then is the path through the network in which none of the activities have slack. Pessimistic time – the longest time that an activity might require. The critical path is determined by adding the times for the activities in each sequence and determining the longest path in the project. The amount of time that a non – critical path activity can be delayed without the project is referred to as a slack time. If activities outside the critical path speed up or slow down (within limits).

6. Make adjustments in the PERT chart as the project progresses. and in other government work.. LIMITATIONS o There can be potentially hundreds or thousands of activities and individual dependency relationships o The network charts tend to be large and unwieldy requiring several pages to print and requiring special size paper o The lack of a timeframe on most PERT/CPM charts makes it harder to show status although colours can help (e. the estimated times can be replaced with actual times. Terminal elements and summary elements comprise the work breakdown structure of the project. who designed his chart around the years 1910–1915. In cases where there are delays. Adamiecki did not publish his chart until 1931. additional resources may be needed to stay on schedule and the PERT chart may be modified to reflect the new situation.e. in the production of naval aircraft.g. Gantt charts can be used to show current schedule status using percentcomplete shadings and a vertical "TODAY" line Historical development The first known tool of this type was reportedly developed in 1896 by Karol Adamiecki. then Chief of Ordnance these charts were used in the United States arsenals during 1918. the Shipping Board. The chart is named after Henry Gantt (1861–1919). On the initiative of General William Crozier. specific colour for completed nodes) Gantt A Gantt chart is a type of bar chart that illustrates a project schedule. BENEFITS PERT is useful because it provides the following information: activities that have slack time and that can be lend resources to critical path activities. who called it a harmonogram.. however. etc . Update the PERT chart as the project progresses. and then only in Polish. precedence network) relationships between activities. One of the first major applications of Gantt charts was during the First World War. such as that of the Emergency Fleet. Some Gantt charts also show the dependency (i. As the project unfolds. Gantt charts illustrate the start and finish dates of the elements and summary elements of a project.

The essence of MBO is participative goal setting. Larger Gantt charts may not be suitable for most computer displays. projects are often considerably more complex than can be communicated effectively with a Gantt chart. many activities (especially summary elements) have front-loaded or back-loaded work plans. Gantt charts do not represent the size of a project or the relative size of work elements. they can become quite unwieldy for projects with more than about 30 activities. which may cause confusion especially in large projects. Gantt charts only represent part of the triple constraints (cost. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'. An . yet the Gantt does not represent this difference. then the project schedule can be designed. Although project management software can show schedule dependencies as lines between activities. A related criticism is that Gantt charts communicate relatively little information per unit area of display. displaying a large number of dependencies may result in a cluttered or unreadable chart. MBO DEFINITION Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization. Instead the WBS should be fully defined to follow the 100% Rule. Although a Gantt chart is useful and valuable for small projects that fit on a single sheet or screen. choosing course of actions and decision making. A common error made by those who equate Gantt chart design with project design is that they attempt to define the project work breakdown structure at the same time that they define schedule activities. If two projects are the same number of days behind schedule. because they focus primarily on schedule management. Moreover. so they can be understood by a wide audience all over the world. In practice. they can misrepresent the time-phased workload (resource requirements) of a project. therefore the magnitude of a behind-schedule condition is easily miscommunicated. MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. the larger project has a larger impact on resource utilization. This practice makes it very difficult to follow the 100% Rule. A related criticism is that all activities of a Gantt chart show planned workload as constant. Because the horizontal bars of a Gantt chart have a fixed height.Advantages and limitations Gantt charts have become a common technique for representing the phases and activities of a project work breakdown structure (WBS). time and scope) of projects. so a Gantt chart with percentcomplete shading may actually miscommunicate the true schedule performance status. That is.

Team members are invited to participate in every step of the management process. ranging from the broad aim to specific individual objectives. and even within individuals. The bottom-up approach implies proactive team input in the project executing process. when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them. Project objectives are established by the top management. Organizations have multiple goals that are sometimes incompatible and may lead to conflicts within organization. information. Ideally. A manager may have to choose between short term and long term performance.important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. The decision on a course of action is taken by the whole team. and personal interests may have to be subordinated to organizational objectives. plans and fund processes. The phrase “top-down” means that all the directions come from the top. Bottom-up style allows managers to communicate goals and value. Thus. Then team members are encouraged to develop . they are more likely to fulfil their responsibilities. objectives form a hierarchy as well as a network. Top managers provide guidelines. The top-down approach remains extremely popular in contemporary project management. NATURE OF OBJECTIVES Objectives state end results and overall objectives need to be supported by sub objectives. Hierarchy of Objectives Objectives form a hierarchy. within the group.

The time period may range from one quarter to five years. the person for whom objectives are set. Down the hierarchy. The supervisor first presents his preliminary objectives to his subordinates individually.the manager/ supervisor. Setting Preliminary Objectives at the top: The top manager determines the mission/ purpose of the organization for the given time period.Goals and plans form an interlocking network. the purpose of the objectives gets lost because of the lack of clarity on who is responsible for what. since undertaking one program often depends on first completing another. as and when the need is felt by the respective department head. strategies and planning premises. Fitting is a matter not only of having the various programs carried out but also of timing their completion. This helps to build a sense of accountability. Many a time. Managers must make sure that the components of the network “fit” one another. It can start at division level. the bottom-up approach is not the perfect solution. as sometimes it lacks clarity and control. The choice of methods and ways to perform their tasks is up to the team. PROCESS OF MBO The success of “Managing by Objectives” can be judged by checking how it works in practice. depending upon the objectives. the time periods set tend to become shorter.individual employee. as the goals pertain to a specific field or aspect Clarifying Organizational Roles: It is important to clarify goals and responsibilities. The best way is to find a balance between the two opposite approaches and take the best practices from both of them Network of Objectives: Both objectives and planning programs form a network of desired results and events.personal to-do lists with the steps necessary to reach the milestones on their own. He then asks for the subordinate’s views on what . the supervisor then proceeds to work with subordinates in setting their objectives. If goals are not interconnected and if they do not support one another. people very often pursue paths that may seem good for their own department but may be detrimental to the company as a whole. The advantage of this approach is that it empowers team members to think more creatively According to many experts. department level etc. The exercise generally starts at the top of the organization. where the objectives defined are broad and cover many aspects. The responsible parties must be identified clearly: the person setting the objectives. This step is essentially a two-way process. It is not mandatory that the exercise starts at the top. Setting Subordinates’ Objectives: After making sure that subordinate managers have been informed of pertinent general objectives. responsibility in the employee. Longer time frames are usually assigned at top levels. The Chief Executive Officer gives direction to the organization.

This has a long term positive impact on the firm. Clarification of Organization: MBO forces managers to clarify organizational roles and structures. Improvement of managing: Objectives of a business cannot be achieved without planning. rather merely planning activities or work. it is virtually impossible for managers to tune in with them. The key to success is the readiness of the system for minor changes. Encouragement of Personnel commitment: MBO helps people to commit themselves to their goals. 4. Managers often forget that to get work done one has to delegate work and MBO helps managers identify these deficiencies. unreal or inconsistent. BENIFITS OF MBO 1. 2. WEAKNESS OF MBO 1. Failure to give guidelines to goal setters MBO cannot succeed if those who are expected to set goals are not given needed guidelines. within company guidelines. setting up of which was partly done by them. Development of effective controls: MBO not only helps in more effective planning but also aids in developing effective controls. MBO also provides for better resource allocation as mangers start thinking about how to accomplish the goals and the personnel and organization they will require to do so. .he thinks to be a feasible target. but in fact could be vice versa. how participants can benefit. positions should be built around the key results expected of the people occupying them. The discussion then moves on to what is in line with the company’s. department’s goals Recycling Objectives: Top-down approach by itself seldom succeeds in delivering the desired results. how it is done. why is it being implemented. It might not always result in reduction of the target. Failure to teach the philosophy of MBO Managers who are to put MBO into practice should have good understanding of it. They in turn must explain to subordinates what it is. etc. 2. If corporate goals are vague. the resources that he might require to improve. Control involves measuring results and taking actions to correct deviations from plans in order to ensure that goals are reached. To the extent possible. Individuals are working towards clearly defined purposes. It also facilitates in better incentives to control and set the standards for control. MBO forces managers to think about planning for results. 3. based on employee feedback/ recommendations. Managers must understand what the corporate goals are and how their own actions fit in with them. The philosophy is built on concepts of self control and self direction that are aimed at making managers professionals.

it is nonetheless important to change the goals as per the changes in corporate policies. although it will probably take more study and work to establish verifiable objectives that are formidable but attainable than to develop many other plans. 4. Souza de C Mario. 2004. 6. Other dangers a.3. New Delhi : Jaypee publishers .Hospital and health care administration. CONCLUSION MBO has undergone many changes. b. MBO as a comprehensive system of managing indicates that most key managerial activities can and should be integrated with MBO process. There is clearly a danger of emphasising the short run.com  www. which tend to lay out work to be done.en. 2009.  Basvanthappa B. it has been used to motivate individuals and most recently in strategic planning.New Delhi : Jaypee publications .jaypee brothers. Hospital administration.org/wiki/gannt_chart .Nursing management and leadership.2006. It’s difficult to arise at a goal oriented planning in a very dynamic and complex environment.1st edition.2009.  Ann Mariner Tomey.scribd. Nursing administration. etc. In short. perhaps at the expense of the longer range.1st edition.Sunil Kant. Emphasis on Short run goals In most MBO programs managers set goals for short run rather than long run. Principles of hospital administrationand planning.3rd edition. 8th edition. This means that superiors will have to ensure that current objectives are designed to serve longer range goals. Goal setting may not be much more difficult than any other kind of effective planning. MBO should be considered as a way of managing and not as an addition to the managerial job.  Francis CM. Difficulty in setting goals Truly verifiable goals are difficult to set.M Sakharkar. Although goals may cease to be meaningful if they are changed too often and do not represent a well thought out and well planned result. quarter in and quarter out. year in and year out.  www. change in environment. 2nd edition. particularly if they are to have the right degree of stretch or pull.  B. 5. Over use of quantitative methods.Jaypee brothers:2004. Danger of inflexibility Managers often hesitate to change objectives. BIBLIOGRAPHY  Guptha.wikipedia. Missouri: Mosby  Publishers.

Saritha T Fernandes Lecturer NUINS Submitted By Ms.PERT GANNT MBO Submitted To Mrs. N NUINS Submitted On: 22/06/2011 . Riya Joy 2nd Year MSc.

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