Page 228 - DMGT521_PROJECT_MANAGEMENT

Unit 13: PERT, CPM and Time Estimation

6. Preparing project control systems and identifying the requirements of progress reports Notes
for different levels of management,
7. Developing the, critical path and slack times,

8. Crashing the time-optimum cost levels on the basis of costs,
9. Updating the network continuously by systematized methods,
10. Monitoring, evaluating and reviewing the network constantly.

13.5.1 Benefits of PERT

PERT is particularly suited to the uncertain Indian conditions for R&D because of the following
reasons:
1. PERT gives management the ability to plan the best possible use of resources to achieve a
given goal within the overall time and cost limitations. It enables the project executives to
manage a variety of programmes as opposed to repetitive production situations; it helps
the project manager to handle the uncertainties involved in programming where no
standard time data are available; it utilises the time network analysis as a base method of
approach to determine manpower, material machinery and capital requirements. The use
of PERT needs a clear definition of goals for proper communication at all levels: the
feedback and review of the different stages of the project helps the management to take
corrective measures and formulate strategies for allocating the limited resources in case
of emergencies.
2. PERT is an effective mechanism for planning, scheduling and coordinating the different
activities in project buying. The tenders for many public sector projects insist on PERT
network charts to be submitted along with the quotations.
3. PERT is useful for balance-sheet preparation, annual shutdown and overhauls to identify
the critical activities; it is particularly useful in construction and R&D projects because it
makes room for uncertainties associated with futuristic decisions on project planning. It
not only helps the management in deciding when to initiate the follow-up and provide
the materials, but also gives an estimate of the consequences of not meeting such demands.
Thus, it helps avoid last minute delays, and panic buying resulting in cost overruns.
Because of the logical interrelationships between the planned elements, the project can
think of alternative vendors.
4. PERT enables the optimum utilization of the resources by their transfer from the slack to
busy segments in the network in order to accomplish the stipulated goal. It is useful for
pre-crisis planning and buying when the force major clauses are operative because the
responsibilities to project executives are allocated well in advance to tackle such
emergencies. The summation of manpower data in PERT.

Task Describe the benefits of PERT.

13.6 Analyzing Network

A network diagram can be created by hand or by using software such as Microsoft Project. There
are two types of network diagrams, activity on arrow (AOA) and activity on node (AON).
Activity on node diagrams are generally easier to create and interpret. To create an AON diagram,
it is recommended (but not necessary) to start with a node named start. This “activity” has a

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