PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation...

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PERT Charts Prepared by: Michael Palazzo

Transcript of PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation...

Page 1: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

PERT Charts

Prepared by: Michael Palazzo

Page 2: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

What are PERT Charts?OPERT stands for Program

Evaluation and Review Technique

OTo understand what a PERT chart is, we must first learn the Critical Path Method (CPM)

Page 3: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

CPM

ODeveloped as a network model for project management

OUses a fixed time estimate for each activity

OEasy to understand but does not account for time variations of activities

Page 4: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

What is PERT?ODeveloped in late 1950’s

OA network model that allows for randomness in activity completion times

OHas potential to reduce time and cost to complete a project

Page 5: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Network DiagramsOPERT Charts use network diagrams

OActivities and milestones of a project are represented by arcs and nodes on a model

OPERT was originally Activity-on-Arc diagram

OSome now use Activity-on-Node

Page 6: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Arc vs. Node

Activity-on-arc network:

Activity-on-node network:

Page 7: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Example of a PERT Chart

Page 8: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

6 Steps

Page 9: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Identify/Determine Activity Sequence

O Identify Activities and Milestones:O Activities are tasksO Milestones mark beginning and end

of activities

ODetermine Activity Sequence:O Sequence is evident for someO Others require more analysis

Page 10: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

ConstructOConstruct the Network Diagram:

O Create diagram with activity sequence info

O For activity-on-arc model, activities are arrowed lines and milestones are circles

O Software exists to simplify this step

Page 11: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

EstimateOEstimate Activity Times:

O Weeks are commonly used as unit of time

O PERT is able to deal with uncertainty in activity completion times

O Each activity in model includes three time estimates

Page 12: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Estimate Continued…OOptimistic Time:

O Shortest time activity can be completed

OMost Likely Time:O Completion time with highest probability

OPessimistic Time:O Longest time the activity might require

Page 13: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Determine Critical Path

OCritical path is longest path in project

ODetermined by adding the times for activities in each sequence

OBy accelerating activities on critical path you decrease total project time

Page 14: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

UpdateOUpdate as Project Progresses:

O Make adjustments to PERT chart as project continues

O Resources may need to be added to stay on schedule if there are delays

Page 15: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Benefits of PERT

OGives expected project completion time

OProvides probability of completion before a date

OShows critical path activities

Page 16: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Benefits Continued…

OProvides activity start and end dates

OShows activities that have slack time

Page 17: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Limitations of PERT

OThe activity time estimates are subjective

OPERT assumes a beta distribution for its time estimates; actual distribution may be different

Page 18: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Limitations Continued…

OConsistently underestimates the expected project completion timeO PERT assumes probability distribution

of project completion time is same as critical path

O If delayed, other paths can become critical path

Page 19: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

ReferencesO Pert Charts:

http://www.netmba.com/operations/project/pert/

O More Information on CPM/CPA:http://www.mindtools.com/critpath.html

O PERT Chart Images:http://en.wikipedia.org/wiki/Program_Evaluation_and_Review_Techniquehttp://cpmtutor.com/c05/fp-dummies.htmlhttp://cnx.org/content/m32170/latest/

Page 20: PERT Charts Prepared by: Michael Palazzo. What are PERT Charts? O PERT stands for Program Evaluation and Review Technique O To understand what a PERT.

Thank you for your attention!