PERT CPM

1. Presentation on
PERT & CPM

2.  Points of
Discussion:
• Understanding PERT vs. CPM.
• Why learn about PERT vs. CPM project management
techniques.
• What is a PERT chart?
• Benefits of PERT in project management.
• What is CPM in project management?
• Benefits of CPM.
• PERT vs. CPM.

3. Understanding PERT vs. CPM :
Project management involves planning, scheduling, and monitoring
several aspects of a project to meet defined objectives. PERT and CPM
are two project management techniques that exhibit the flow and
sequence of project activities. Understanding the characteristics and
differences of PERT and CPM can help you adopt the most effective
technique for an organization's projects. In this article, we discuss why
to learn about PERT vs. CPM project management techniques, explain
what a PERT chart is, describe its benefits, explain what a CPM is,
discuss its benefits, and explore the key differences between PERT and
CPM.

4. Why learn about PERT vs. CPM project
management techniques?
You can learn about PERT vs. CPM scheduling methods to decide
which one to implement depending on a project's specifications and
end goals. For instance, PERT is ideal for projects without designated
due dates or timeframes to complete certain activities. In contrast,
CPM is appropriate for projects with a specified duration. While both
techniques help design networks and determine a project's critical
path, they differ in specific areas and offer different benefits to a
project.

5. What is a PERT chart?
PERT is an acronym for program evaluation and review
technique. A PERT chart is a visual management tool for
tracking and monitoring project tasks and timelines. PERT
uses time as a variable that represents performance
specifications and resource application. In this technique, you
first divide the project into activities to form a sequence. Then,
you calculate the time needed to complete each action. This
method examines and represents all activities of a project. This
is usually to identify the least possible time to complete each
task and the minimum time it can take to complete the entire
project.

6. What is a PERT chart?
Project managers often use this chart to make realistic schedules by
setting estimates for each duration. PERT uses the following three-
time estimates to get the expected activity time for planning
projects with uncertain activity durations:
• Optimistic time: This is the shortest estimated time to complete a project activity. The
optimistic time estimate shows the minimum time based on an analysis of the best-case
scenario.
• Most likely time: This is the completion time with the highest probability. Professionals make
this estimate based on the given time duration, assigned resources, productivity levels,
project dependencies, and possible interruptions.
• Pessimistic time: This is the longest it can take to complete a project activity. It's the
maximum project duration based on worst-case scenario analysis.

7. Benefits of PERT in project management:
PERT helps identify early starts, late starts, and possible slacks for
each project task. Because it focuses on setting time estimates, it
provides the probability of completing projects before the predicted
date. Here are more benefits of using a PERT chart in project
management:
Manages project uncertainty: The major benefit of using the PERT is managing
uncertainties in a project. It estimates the time required for each task to get a nearly accurate
measure of the project completion time. Using a PERT chart can help project managers see the
entire project timeline and recognize various aspects that can improve to minimize the
estimated time. PERT uses the three tome estimates to calculate the expected activity time
using the following formula:
Expected activity time = (Optimistic time + (4 × Most likely time) + Pessimistic time) / 6
Assumes all initiated projects as new: The PERT chart assumes every project to be new,
with no previous templates or data. Managing a project without particular referencing can
allow for more creative ideas to increase project efficiency. The ideas and methods
implemented can help in optimizing total project procedures.

8. What is CPM in project management?
The critical path method (CPM) in project management is a technique
used to oversee projects where there's a specific time required to complete
a project. Project managers use it to determine the critical and non-critical
tasks that can help reduce conflicts and achieve desired results. CPM
identifies essential activities to ensure no delayed actions can affect the
entire project.
When using CPM, managers start by preparing a list of all activities
needed to complete a project. Next, you can estimate the time required to
complete each activity and determine the dependencies between the
activities. You can then define the path as a sequence of activities in a
network. CPM typically involves choosing the path that requires the least
amount of time and is cost-effective in a project. Many industries use
CPM, including software, construction, aerospace, and technology
industry

9. Benefits of CPM:
Project managers often use CPM because it gives valuable insight
into resource allocation for each project task. It also provides an
outline for the long-term coordination and planning of the project
according to a specified timeframe. Project planning, scheduling,
and controlling are often more effective with a CPM, improving the
project's productivity. Here are more benefits of using CPM in
project management:
• Facilitates enhanced task scheduling: This technique facilitates task prioritization, giving
teams a better strategy for deploying resources effectively. CPM shows where to spend more
time, effort, and resources to accomplish project goals quickly. It can help you recognize the
actions to complete first to enable you to complete the project faster and indicate the tasks you
can delay without affecting the overall project plan. This helps you schedule tasks according
to the project's immediate needs, facilitating enhanced task scheduling.

10. Benefits of CPM:
• Measures project progress efficiently: CPM network divides large projects into a series of
discrete tasks, which can help measure project progress efficiently. You can assess every
project activity to ensure you're allocating resources effectively. It also shows how to find
additional resources to improve project time or an effective alternative to reduce costs and
remain under budget.
• Helps in cost and budget control:CPM associates costs and resource allocation with each
sub-task. This helps monitor the expenses on every task and ensure they're all within the
allocated budget. The technique identifies when a project exceeds the planned budget or
experiences delays in the planned schedule and notifies you instantly. This can help you
recognize strategies and areas that need changes or adjustments and address them
accordingly.
When you allocate budgets to each sub-task rather than for the entire project, it's
easier to recognize financial issues or constraints and resolve them effectively. This helps
ensure you complete the project within the pre-defined budgetary parameters.

11. PERT vs. CPM:
Here are the significant differences between PERT and CPM:
• Technique: PERT is a project management technique used to measure uncertain activities in a
project and focuses on time planning and control. In contrast, CPM is a statistical project
management technique that manages the well-defined activities of a project, such as time and
cost management.
• Focus: PERT focuses on minimizing the time required to complete a project by the
designated deadline. In comparison, CPM focuses on a trade-off between cost and time with a
significant emphasis on minimizing costs.
• Evolution: PERT evolved as a suitable technique for research and development projects,
while CPM is best suited for non-research projects like construction.
• Orientation: While PERT is event-oriented because it focuses on time, CPM is often activity-
oriented.
• Model: PERT uses a probabilistic model, while CPM is a deterministic model.