Introduction to PERT

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Unit No.4.
NETWORK ANALYSIS
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Dean, EDP & Associate Professor MBA
1
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

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302-DECISION SCIENCE
Unit No.4. Network Analysis
4.12 Introduction to
PERT
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Dean EDP & Associate Professor MBA
2
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

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NETWORK ANALYSIS
 At the End of the Session Student will be able to
understand-
A. Introduction to PERT

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Program Evaluation and Review Technique
I] PERT (Program Evaluation and Review Technique):
PERT is the Technique which uses the uncertain nature of project
activities and hence considers three different time estimates (viz.
Optimistic, Most Likely and Pessimistic) for doing network calculations.
II] Expected Mean Time as per PERT:
Considering the three time estimates, the average mean time for an
activity is-
tei =
a + 4m + b
6
Also, the standard deviation of activity time duration is given by-
σi =
b − a
6
And the Variance is given by – σ2
i =
b−a
6
2

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Program Evaluation and Review Technique
Thus if the critical activities are say 1, 2, 3, ….., k then the project duration
(T) will be following a normal probability distribution with mean.
Mean= Te= 𝑖=1
𝑘
𝑡 𝑒𝑖 = 𝑡𝑒1 +
𝑡 𝑒2 + 𝑡 𝑒3 + ⋯ + 𝑡 𝑒𝑘 and
Variance= 𝜎2 = 𝜎1
2 + 𝜎2
2 + 𝜎3
2 + …. + 𝜎k
2
This can help us workout the probability of completing the project in the
scheduled time duration (say Ts). This is given by-
P(T< Ts) = P(z< zs) where,
z =
𝑇−𝑇𝑒
𝜎t
-𝑖𝑠 𝑡ℎ𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑛𝑜𝑟𝑚𝑎𝑙 𝑣𝑎𝑟𝑖𝑎𝑡𝑒 𝑠𝑜 𝑡ℎ𝑎𝑡 −
zs =
𝑇 𝑠 − 𝑇𝑒
𝜎t

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EXERCISE
 State and Explain Program Evaluation and Review
Technique under Network Analysis.

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For More Details Contact
Dr. V M Tidake
tidkevishal@gmail.com
tidkevishalmba@sanjivani.org.in

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Thank You