This document discusses Program Evaluation and Review Technique (PERT), a method used to analyze and represent the tasks involved in complex projects. PERT was developed by the US Navy in the 1950s to manage large-scale projects. It involves identifying activities, estimating activity times, sequencing activities, and determining the critical path. The critical path identifies the longest sequence of activities to complete the project. PERT helps schedule projects and identify slack time to reduce time and costs for complex, non-routine projects.

1. Presented By:
Rohit Raina
0613-MBA-2013

2. Introduction
 Program Evaluation and Review
Technique.
 Analyze the tasks.
 United States Navy.
 Event-oriented Technique
 Major Factor – Time
 Ex: 1968 Winter Olympics in Grenoble

3.  The main objective of PERT :
 To facilitate decision making and
 To reduce both the time and cost
required to complete a project.
 Related Tools:
 Critical Path Method.
 Gantt chart
 Applied to:
 Very large-scale,
 One-time,
 Complex,
 Non-routine infrastructure and
 Research and Development projects

4. Planning Steps
 Specific activities and milestones.
 Sequence of the activities.
 Network diagram.
 Estimate the time.
 Critical path.
 Update the PERT chart.

5. What Happens
 Identify the specific activities and
milestones
 Activities.
 Milestones.
 It is helpful to list the tasks in a table.

6. 
 May be combined with the activity
identification step
 Since the activity sequence is evident for
some tasks.
 Other tasks may require more analysis
 To determine the exact order in which they
must be performed.

7. 
 Activity sequence information
 A network diagram can be drawn showing the
sequence of the serial and parallel activities.
 Each activity represents: A node in the
network,
 The arrows represent: The relation between
activities.
 Software packages simplify this task
 By automatically converting tabular activity
information into a network diagram.

8. 
 Weeks are a commonly used unit of time for
activity completion.
 A distinguishing feature of PERT.
 Its ability to deal with uncertainty in activity completion
time.
 Optimistic time(O)
 The shortest time in which the activity can be
completed.
 To specify optimistic time to be three standards
deviations from the mean.
 Most likely time(M)
 The completion time having the highest probability.

9.  Pessimistic time (P)
 the maximum possible time required to accomplish a
task, assuming everything goes wrong (but excluding
major catastrophes).
 PERT assumes a beta probability
distribution for the time estimates.
 Estimated Time(TE)
 The best estimate of the time required to
accomplish a task, accounting for the fact that
things don't always proceed as normal.
TE = (O + 4M + P) ÷ 6

10. 
 The critical path is
 Determined by adding the times for the activities in
each sequence.
 Determining the longest path in the project.
 The critical path determines the total calendar
time required for the project.
 If activities outside the critical path speed up or
slow down (within limits), the total project time
does not change.
 The amount of time that a non – critical path
activity can be delayed without the project is
referred to as a slack time.

11.  Critical Path is helpful to determine
 ES – Earliest Start time
 EF - Earliest Finish time
 LS – Latest Start time
 LF - Latest Finish time
 The variance in the project completion time
can be calculated by summing the
variances in the completion times of the
activities in the critical path.
 The project can be accelerated by adding
the resources required to decrease the time
for the activities in the critical path.
 Shortening of the project sometimes is
referred to as Project Crashing.

12. 
 Make adjustments in the PERT chart as the
project progresses.
 As the project unfolds, the estimated
times can be replaced with actual times.
 In cases where
 There are delays,
 Additional resources may be needed to stay
on schedule
 The PERT chart may be modified to reflect the
new situation.

13. Advantages
 Explicitly defines and makes visible
dependencies between the WBS elements
 Facilitates identification of the critical
path.
 Facilitates identification of
 Start date,
 End date, and
 Slack time for each activity,
 Provides potentially reduced project
duration.
 The large amount of project data can be
organized & presented in diagram for use
in decision making.

14. Disadvantages
 Hundreds or thousands of activities and
individual dependency relationships
 Not easily scalable for smaller projects
 The network charts tend to be large and
unwieldy requiring several pages to print.
 The lack of a timeframe on most charts
makes it harder to show status although
colours can help
When the charts become unwieldy, they
are no longer used to manage the project.

15. Case Study
 In this Case Study, the Project
manager knows
 The succession of the project
activities ,
 Optimistic Time,
 Pessimistic Time and
 Most Likely Time
All the times known are in weeks.

20. Thank You !!