Critical Path Method and Program Evaluation and Review Technique

Tasks like a morning jog, eating breakfast, taking a shower, and getting dressed are
activities which must be completed in order to complete the project. This is project planning in
its simplest form. Whether we do it mentally or use pen and paper, we plan for every project in
an effort to save time, money, and avoid headaches. On the corporate level giving incorrect
estimates, failing to meet deadlines, and oversight can lead to loss of revenue and marginal
profit. Project planning is a vital tool, without it constructing a 20-story skyscraper would be
nearly impossible. There are two main techniques pertaining to project planning in use today:
the Critical Path Method (CPM) and the Project Evaluation and Review Technique (PERT). The
Critical Path Method, sometimes referred to as Critical Path Analysis (CPA) was developed in
the 1950s by DuPont Corporation and Remington Rand Corporation. It was developed to
manage power plant maintenance projects. The CPM methods saved the company one million
dollars in the first year of use. Separate but similar work was also being conducted in the mid
1950s by the United States Navy. Since security was at stake the Navy immediately launched
their own program to close the missile gap between the Russian technologies. The project was
enormous, and so it was important for the Navy to conduct research on planning and controlling
complicated projects. The research was later referred to as the Program Evaluation and Review
Technique or PERT.
The need of PERT/CPM in project cycle is vital in various aspects such as the prediction
of deliverables, planning resource requirements, controlling the allocation of scarce resources,
internal and external program review, and performance evaluation. PERT plays a huge role
mainly in its function including but not limited to transportation activities, construction activities,
oil refineries, computer system, manufacturing electric generator machines, medical and
surgical sector and library activities. The integration of PERT system in project scheduling is of
significance in lessening cost and time incurred, determination of activities, risk prevention in
complex activities, flexibility, and alternative evaluation. This system also useful in effective
control, decision making and research work with regard with project management. On the other
hand, CPM calculation involves three key terms. These are path, critical path and critical
activities. Path has been defined as an interlinked series of activities from starting event leading
to the ending event. Critical path has been characterized as the longest time and it also enable
the project duration to be estimated. All of the activities that composes the critical path are
called critical activities. There are procedure that needs to be followed in the use of PERT/CPM.
First, develop a list of activities that needs to undertake in a project. Afterwards, estimate the
duration of completion for each activity. Consequently, draw a project network with all the project
analysis.
In addition to this, PERT and CPM is useful at many stages of project management. It
simplifies through its simple mathematical method that makes it most widely accepted and used
system in this generation. Determining the critical path and slack time is of importance to enable
the goal of the project to accomplish at a due time and CPM/PERT gives this information
through comprehensible charts. Moreover, this system provide project documentation and
useful in monitoring costs. Undeniably, there are various limitations that need to be consider in
utilizing CPM/PERT. These limitations include providing a clearly defined, independent and
stable activities, specified precedence relationships, over emphasis on critical paths and
deterministic CPM model. Activity time estimates are also subjective and depend on judgment.
PERT assumes a beta distribution for these time estimates yet the actual distribution may not
be similar. Furthermore, it consistently undermines the expected project completion time due to
alternate path becoming critical.
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