Page 149 - DCAP601_SIMULATION_AND_MODELING

Unit 9: Simulation of a PERT Network (I)

Notes

Did u know? Charles Bachman

The network model’s original inventor was Charles Bachman, and it was developed into
a standard specification published in 1969 by the CODASYL Consortium.

9.2 PERT/CPM for Project Scheduling & Management

Essentially, CPM (Critical Path Method) and PERT (Programme Evaluation Review Technique)
are project management techniques, which have been created out of the need of Western industrial
and military establishments to plan, schedule and control complex projects.

9.2.1 Brief History of CPM/PERT

CPM/PERT or Network Analysis as the technique is occasionally called, developed along two
parallel streams, one industrial and the other military.
CPM was the innovation of M.R.Walker of E.I.Du Pont de Nemours & Co. and J.E.Kelly of
Remington Rand, circa 1957. The computation was designed for the UNIVAC-I computer. The
first test was made in 1958, when CPM was applied to the construction of a new chemical plant.
In March 1959, the method was applied to a maintenance shut-down at the Du Pont works in
Louisville, Kentucky. Unproductive time was reduced from 125 to 93 hours.
PERT was planned in 1958 for the POLARIS missile program by the Program Evaluation Branch
of the Special Projects office of the U.S.Navy, helped by the Lockheed Missile Systems division
and the Consultant firm of Booz-Allen & Hamilton. The calculations were so approved so that
they could be carried out on the IBM NORC at Dahlgren, Virginia.

Did u know? Full of NORC
Naval Ordinance Research Computer

9.2.2 Planning, Scheduling & Control

Planning, Scheduling (or organising) and Control are measured to be basic Managerial functions,
and CPM/PERT has been rightfully accorded due significance in the literature on Operations
Research and Quantitative Analysis.

Far more than the practical benefits, it was found that PERT/CPM provided a focus around
which managers could brain-storm and put their ideas together. It proved to be a great
communication medium by which thinkers and planners at one level could converse their ideas,
their doubts and fears to another level. Most important, it became a useful tool for evaluating
the performance of individuals and teams.

Task There are many variations of CPM/PERT which have been useful in planning
costs, scheduling manpower and machine time. CPM/PERT can answer the following
important questions:

1. How long will the entire project take to be completed? What are the risks involved?

Contd...

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