Page 233 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes

Notes There have been several extensions to both network and chart forms of project
scheduling. At times these extensions are quite sophisticated; for example, the application
of fuzzy set theory to aid in estimating activity durations in cases where activity durations
are difficult to estimate because project activities cannot be well defined.

13.8 Planning, Scheduling and Control

Planning, Scheduling (or organising) and Control are considered to be basic Managerial functions,
and PERT/CPM has been rightfully accorded due importance in the literature on Operations
Research and Quantitative Analysis.
Far more than the technical benefits, it was found that PERT/CPM provided a focus around
which managers could brainstorm and put their ideas together. It proved to be a great
communication medium by which thinkers and planners at one level could communicate their
ideas, their doubts and fears to another level. Most important, it became a useful tool for
evaluating the performance of individuals and teams.
There are many variations of PERT/CPM which have been useful in planning costs, scheduling
manpower and machine time. PERT/CPM can answer the following important questions:
How long will the entire project take to be completed? What are the risks involved?
Which are the critical activities or tasks in the project which could delay the entire project if they
were not completed on time?
Is the project on schedule, behind schedule or ahead of schedule?
If the project has to be finished earlier than planned, what is the best way to do this at the least
cost?

The Framework for PERT and CPM

Essentially, there are six steps which are common to both the techniques. The procedure is listed
below:

1. Define the Project and all of it’s significant activities or tasks. The Project (made up of
several tasks) should have only a single start activity and a single finish activity.
2. Develop the relationships among the activities. Decide which activities must precede and
which must follow others.
3. Draw the “Network” connecting all the activities. Each Activity should have unique event
numbers. Dummy arrows are used where required to avoid giving the same numbering
to two activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network. This is called the critical path.

6. Use the Network to help plan, schedule, monitor and control the project.
The Key Concept used by PERT/CPM is that a small set of activities, which make up the longest
path through the activity network control the entire project. If these “critical” activities could be
identified and assigned to responsible persons, management resources could be optimally used
by concentrating on the few activities which determine the fate of the entire project.

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