3. • The PERT Method (or Program Evaluation and Review
Technique) is one of the most common scheduling techniques
for network analysis which is used to track and coordinate
complex tasks.
4. • PERT Method helps to analyze the project work schedule by focusing
on each task and calculate the minimum time required to complete
the project.
• In this respect, it is similar to the Critical Path Method (CPM). Both of
them uses a common approach for preparing the network and
determining its critical path. But there are some key differences
between PERT Method and CPM.
5. • The main objective is to find out the completion for a particular event
within specified date.
• The PERT approach takes into account the uncertainties.
• The three time values are associated with each activity
1- Optimistic time – It is the shortest possible time in which the activity can be finished. It
assumes that every thing goes very well. This is denoted by t0.
2- Most likely time – It is the estimate of the normal time the activity would take. This assumes
normal delays. If a graph is plotted in the time of completion and the frequency of completion
in that time period, then most likely time will represent the highest frequency of occurrence.
This is denoted by tm.
3- Pessimistic time – It represents the longest time the activity could take if everything goes
wrong. As in optimistic estimate, this value may be such that only one in hundred will take time
longer than this value. This is denoted by tp.
6. • In PERT calculation, all values are used to obtain the percent expected
value.
• Expected time te – It is the average time an activity will take if it were
to be repeated on large number of times and is based on the
assumption that the activity time follows Beta distribution, this is
given by
te = ( t0 + 4 tm + tp ) / 6
7. 1. List the activities and milestones
The first step is to determine the tasks required to complete the project.
2. Determine the sequence of activities
The second step is to determine the order of the activities. Which activity is the predecessor which
one is the successor? It is easy to determine the sequence of some activities however the sequence
of some tasks may require deep analysis.
3. Build a network diagram
The third step is to create the network diagram with the help of software or by hand and place the
activities on the diagram.
4. Estimate the activity durations
The PERT Method uses three duration estimates for activities which are;
• Optimistic Estimate
• Pessimistic Estimate
• Most Likely Estimate
• With the help of three estimates, expected duration is calculated.
5. Determine the critical path
The critical path is the longest path of the network diagram. Forward and backward pass
calculations is used to determine the critical path.
11. Total Float: LS – ES = 18-15 = 3
Total Float: LF – EF = 30-27 = 3
The total float can be calculated by subtracting the Early
Start date of an activity from its Late Start date or Early
Finish date from its Late Finish date.
12. The critical path is the longest path in the network diagram and the total float of the critical
path is zero.
13. Example
For the project
Task: A B C D E F G H I J K
Least time: 4 5 8 2 4 6 8 5 3 5 6
Greatest time: 8 10 12 7 10 15 16 9 7 11 13
Most likely time: 5 7 11 3 7 9 12 6 5 8 9
• Find the earliest and latest expected time to each event and also
critical path in the network.
15. Differences between CPM and PERT
• key differences between the PERT Method and the CPM (Critical Path Method)
In the Critical Path Method activity durations are well defined but in PERT
Method, time estimations are uncertain.
The Critical Path Method is a method of control of time and costs, however, PERT
is a technique of planning and control of time.
There are three estimates in PERT such as optimistic, pessimistic, and most likely.
In the Critical Path Method, there is only one estimate.
PERT Chart is event-oriented however, CPM Chart is start and completion
oriented.
PERT is more applicable to research and development projects rather than CPM.
17. • SWOT analysis is a framework used to evaluate a company's
competitive position by identifying its strengths, weaknesses,
opportunities and threats.
• It is a foundational assessment model that measures what an
organization can and cannot do, and its potential opportunities and
threats.
18. • SWOT analysis is a basic, analytical framework that assesses what an
entity — usually a business, although it can be a place, industry or
product — can and cannot do, for factors both internal and external.
• Using environmental data to evaluate the position of a company, a
SWOT analysis determines what assists the firm in accomplishing its
objectives, and what obstacles it must overcome or minimize to
achieve desired results:
where the organization is today, and where it may go
19. • For example, back in 2015, The Coca-Cola Company noted strengths
like its well-known brand name, vast distribution network and
opportunities like emerging markets, but it also noted weaknesses
and threats such as foreign currency fluctuations, a growing taste for
"healthy" beverages and the subsequent competition from providers
of such beverages. Coca-Cola took steps to address these concerns,
ramping up its marketing, advertising and promotional activities, and
expanding into other beverage categories. As a result, within a year,
its dividend-per-share rose from 33 to 35 cents, and its stock, which
was hovering around $39 per share, climbed to $46. It's fallen since,
but remains up about 13 percent over the past three-year period.
20. • Strengths describe what an organization
bests at and separates it from the
competition: a strong brand, loyal customer
base, a strong balance sheet, unique
technology and so on. For example, a privet
fund may have developed a exclusive trading
strategy that returns market-beating results.
It must then decide how to use those results
to attract new investors.
• Weaknesses stop an organization from
performing at its optimum level. They are
areas where the business needs to improve
to remain competitive: higher-than-industry-
average turnover, high levels of debt, an
inadequate supply chain or lack of capital.
• Opportunities refer to favorable external
factors that an organization can use to give it
a competitive advantage. For example, a car
manufacturer can export its cars into a new
market, increasing sales and market share, if
a country cuts tariffs.
• Threats refer to factors that have the
potential to harm an organization. For
Strength
Opportunity
Weaknesses
Threats
Internal
External
21. Al’s Ice Cream: The Case for Expansion
• Al’s Ice Cream is a exclusively owned ice cream shop that its founder
Al’s creates handcrafted ice cream with local ingredients. Al’s
company is profitable with strong margins on its premium-priced
cones, but Al is wondering if the single store approach isn’t limiting
his growth.
22. Strengths
Superior product with unique flavors difficult to
duplicate
Loyal customer base supplying word of mouth
marketing
Strong sales and generous profit margin
Weaknesses
Limited market penetration due to a single location
Time and labor-intensive production process
Limited capital for expansion
Have trouble finding capable ice cream artisans.
Opportunities
Increase the number of stores to access more
customers
Focus on production and sell into retail food
service
Buy new equipment to lower production time
and labor
Start an artisanal ice cream class to train and
recruit employees
Partner up to access more capital, raise it from
private investors, or apply for government
grants.
Threats
Big ice cream brands are experimenting with
artisanal ice cream
Consumers are increasingly health conscious
Local ingredients may become more expensive as
restaurants and other big buyers focus on local
food
Competitors have more marketing dollars
23. • The purpose of a SWOT analysis is to present routes for a company. A
company can create potential strategies by combining and
recombining different factors. For example, Al’s could apply for
government grants to install new equipment, reducing labor needs,
and then raise capital to open an additional concept store staffed
with the artisanal ice cream class' graduates. This an ambitious plan –
and it will probably change in implementation, but it provides Al’s Ice
Cream with a potential path forward.
