PERT & CPM

Project management can be defined as a structural way of planning, scheduling, executing, monitoring
and controlling various phases of a project. To achieve the end goal of a project on time, PERT and CPM
are two project management techniques that every management should implement. These techniques
help in displaying the progress and series of actions and events of a project.

Meaning of PERT
Program (Project) Evaluation and Review Technique (PERT) is an activity to understand the planning,
arranging, scheduling, coordinating and governing of a project. This program helps to understand the
technique of a study taken to complete a project, identify the least and minimum time taken to
complete the whole project. PERT was developed in the 1950s, with the aim of the cost and time of a
project.

Meaning of CPM
Critical Path Method or CPM is a well-known project modelling technique in project management. It is
a resource utilising algorithm that was developed in the 1950s by James Kelly and Morgan Walker.
CPM is mainly used in projects to determine critical as well as non-critical tasks that will help in
preventing conflicts and reduce bottlenecks.
In essence, CPM is about choosing the path in a project that will help in calculating the least amount of
time that is required to complete a task with the least amount of wastage.
The Critical Path Method or CPM has been used in many industries starting from defence, construction,
software, aerospace, etc.

PERT vs CPM

Abbreviation

PERT –  Project Evaluation and Review Technique CPM –  Critical Path Method

What does It Mean? 

PERT –  PERT is a popular project management technique CPM – CPM is a statistical algorithm which has a
that is applicable when the time required to finish a certain start and end time for a project 
project is not certain

Model Type 

PERT – PERT is a probabilistic model CPM – CPM is a deterministic model

Focus 

PERT – The main focus of PERT is to minimise the time CPM – The main focus of CPM is on a trade-off
required for completion of the project between cost and time, with a major emphasis on
cost-cutting.

Orientation type
PERT – PERT is an event-oriented technique CPM – CPM is an activity-oriented technique
 

Programs or Project Management and Review Technique (PERT) is appropriate for those projects
where the time required to accomplish different activities are not known. CPM or Critical Path Method
is appropriate for the projects that are reappearing (recurring) in nature.
To achieve the end goal of a project on time, PERT and CPM are two project management techniques
that every manager should implement.
Here are the essential MCQs given on the PERT and CPM to analyse your understanding of the topic.
The answers are also given for your reference.
Advantages of CPM

 Provides an outline for long term coordination and planning of a project

 Recognizes critical activities
 Easy to plan, schedule and control project
 It improves productivity
 Manages the resource needed
Disadvantages of CPM

 For beginners its difficult to understand

 Software too expensive
 Sometimes, to structure CPM is too time-consuming
 It cannot control and form the schedule of a person involved in the project
 Allocation of resources cannot be monitored properly
CPM Example
How to Make a PERT Chart?
To prepare a PERT Chart, the following steps need to be followed.

 Recognize particular projects and milestones.

 Decide the precise sequence of the project.
 Create a network diagram.
 Determine the time needed for each project activity.
 Manage the critical path.
 Update the PERT chart as the project progresses.
CPM in Project Management
The Critical Path Method in project management is a step-by-step technique used in the planning
process that explains the critical and non-critical activities of a project. CPM goals are to check
time-bound issues and process that causes blockage in the project. The CPM is preferably
applicable to projects that involve various activities that are associated with a complex method.
Once CPM is applied, it will help you keep your projects on track.

 Helps you recognize the action that needs to be performed on time so that the whole
project is completed on time.
 Indicates which responsibilities can be delayed and for how long without affecting the
overall project plan.
 Determines the least amount of time it will take to accomplish the project.
 Tells you the newest and latest time each activity can start on in order to manage the
schedule.
The term of each action is listed above each joint in the diagram. For an individual path, insert the
duration of each node to ascertain the total duration. The critical path is the one that has the
longest duration.
How to Make a PERT Chart
Use a PERT chart in the planning phase of your project. Here are the steps in broad
strokes before we get to our PERT chart example:

1. Begin by identifying the project milestones and then break those down into

individual tasks.

2. Figure out the sequence of the tasks and their dependencies.

3. Make the PERT diagram — we’ll show you a PERT chart example in the
section below!

4. Do an estimate for each task and the time it will take to complete it.

5. Calculate the critical path and identify any possible slack.

6. You have your PERT chart! Remember, the PERT chart is a living
document that must be returned to and revised as needed as the project
progresses.

How to Calculate a PERT Chart

Before we create a PERT chart, it’s helpful to know how to calculate a project
duration using the Program Evaluation and Review Technique.

A PERT chart relies on the weighted average of three numbers that are based on
the most pessimistic (P), the most optimistic (O) and the most likey (M) estimates
for the project’s length.

1. Optimistic Time: The least amount of time to accomplish a task or

activity..

2. Pessimistic Time: The maximum amount of time to accomplish a task or

activity. This is the worst-case scenario, anything that can go wrong does.
 3. Most Likely Time: The best estimate of how long it will take to accomplish
the task or activity, assuming there are no problems.

4. Expected Time: The best estimate of how long it will take to accomplish

the task or activity, assuming there will be problems. This would be the
more realistic duration.

Using the figures you come up with for P, O and M, calculate the equation:

How to Use the PERT Chart Formula

Using the optimistic, most likely, and pessimistic time estimates, you can use the
PERT formula to calculate the expected duration of a task:

(O + (4*M) + P) / 6

The result is a weighted average, which is an average from multiplying each

element by a factor that reflects its importance. You can think of this as the
expected time, though often the calculation will bend towards the pessimistic. The
result of this formula will be the value that you’ll assign to the arrows in our PERT
chart example.

What Is the PERT Chart Standard Deviation?

To determine the standard deviation of the estimated duration of an activity,

subtract the pessimistic number from the optimistic one and divide the results by
six. The larger your results, the less confidence you have in your estimate, and vice
versa.

(P-O) / 6

PERT Chart Example

Let’s move these concepts from abstraction to reality. To better understand the
power of a PERT chart in project management, let’s make one together. For our
PERT chart example, we’ll create a project around building a website. The PERT
chart will allow us to visualize our project’s activities and milestones to quickly
uncover the critical path.

Observe the PERT Chart example below, and we’ll walk through how we created
it.
Our Sample PERT Chart, Explained

To begin with our PERT example, we’re going to identify all the activities that
make up the project and determine the immediate predecessors for each. We’ll list
them as shown in the table above, known as the activity list. Milestones are the
nodes in our PERT chart, and they’re the outcome of each activity.

Next, we figure out how long all the activities to get to our milestones will take.
The amount of time you estimate with the PERT chart formula should be added to
the arrows as shown in our PERT chart example. We used weeks as our time unit,
but it could be days or months, depending on your project.

Once we have a time estimate for each task, we can draw our network diagram. We
start with the first node which is the “kick off meeting” in our example. Then we
represent the initial activities with arrows and connect them to their corresponding
milestone nodes. We continue the process until we get to the final milestone node
of our project.
With the completed chart, it becomes clear which activities are critical to
delivering the project on time. These are represented by the white arrows. Once the
critical path is determined, you can easily refer to it as a roadmap to keep your
project on track!

What Is the Difference Between a Gantt Chart and a PERT Chart?

While both PERT charts and Gantt charts are visual tools used by project managers
for project planning, they are not exactly the same thing.

PERT charts, as detailed above, were developed to simplify planning and

scheduling larger and complex projects. Gantt charts, on the other hand, are also a
graphical depiction for planning and scheduling a project, which breaks down the
project scope into tasks that populate a timeline. A Gantt chart can be used to build
the project timeline, set task dependencies and show the duration of each task.

There are other key differences, as well. For example, Gantt charts represent the
project timeline with a bar chart. A PERT chart is more of a flowchart or network
diagram. Gantt charts can be used on smaller projects, while PERT charts are for
larger and more complex projects.

The most salient difference is that a PERT chart is usually used before starting a
project to figure out scheduling, while Gantt charts tend to follow into the project,
highlighting scheduling constraints. Gantt chart software can be used by project
managers when executing the project as well as when planning because tasks’ start
and end dates can be edited. Gantt charts reveal how long each task will take, show
who on the team is responsible for those tasks and are a more transparent tool
to track progress and keep track of tasks and resources.
PERT and CPM MCQs
Question 1
What is PERT analysis based on?
A. Optimistic time
B. Pessimistic time
C. Most likely time
D. All of the above
Answer: D
Question 2
Which of the options is not a notable challenge while scheduling a project?
A. Deadlines exist
B. Independent activities
C. Too many workers may be required
D. Costly delay
Answer: B
Question 3
What is the particular task performance in CPM known as?
A. Dummy
B. Event
C. Activity
D. Contract
Answer: C
Question 4
What is the earliest start time rule?
A. It compares the activity’s starting time for an activity successor.
B. It compares the activity’s end time for an activity predecessor.
C. It directs when a project can start.
D. It regulates when a project must begin.
Answer: B
Question 5
What is a critical path?
A. It is a path that operates from the starting node to the end node.
B. It is a mixture of all the paths
C. It is the longest path
D. It is the shortest path
Answer: C
Question 6
What is the completion of a CPM network diagram activity commonly known as?
A. Connector
B. Event
C. Node
D. All of the above
Answer: D
Question 7
Activities A, B, and C are the immediate predecessors for Y activity. If the earliest finishing time for
the three activities are 12, 15, and 10, then what will be the earliest starting time for Y?
A. 10
B. 15
C. 12
D. Cannot be determined
Answer: B
Question 8
Activities P, Q, and R instantly follow activity M, and their current starting times are 12, 19, and 10.
So, what is the latest finishing time for activity M?
A. 11
B. 10
C. 18
D. Cannot be determined
Answer: A
Question 9
Activity in a network diagram is represented by?
A. Rectangles
B. Arrows
C. Squares
D. Circles
Answer: B
Question 10
What happens when a project is scheduled by CPM?
A. A project is divided into various activities
B. Required time for each activity is established
C. A sequence of various activities is made according to their importance
D. All of the above
Answer: D