Project

Management with
PERT and CPM
Methods

Submitted by: Clarence Geronimo

BSA-241B
Main Objectives

- Understand and explain what PERT and CPM methods are and how these methods are used in

project management.

- Explore how PERT and CPM help in planning, scheduling, and managing projects.

Overview

Program Evaluation and Review Technique (PERT)

The PERT method was developed in the 1950s by the U.S. Navy to manage the Polaris missile

project. It is a statistical tool used in project management that focuses on estimating the time required

to complete tasks, especially when there is uncertainty. PERT uses three-time estimates for each

activity:

 Optimistic Time (O): The shortest time in which the task can be completed.

 Pessimistic Time (P): The longest time the task might take if problems occur.

 Most Likely Time (M): The best estimate of the task’s duration under normal conditions.

The formula used to calculate the expected time (TE) is:

PERT is particularly useful in research and development projects where precise time estimates are

difficult.

Critical Path Method (CPM)

CPM was developed around the same time as PERT by DuPont for project construction. Unlike

PERT, CPM focuses on the deterministic time for project activities. Each task or activity in the

project is assigned a specific duration. CPM identifies the longest path of dependent activities in the

project, known as the "critical path." This critical path determines the minimum time required to
complete the entire project. Activities on the critical path are crucial because any delay in these

activities will delay the whole project.

Key Difference between PERT and CPM:

 PERT is a probabilistic model that deals with uncertain activity times, while CPM is

deterministic and uses fixed time estimates.

 PERT is often used for projects with high uncertainty, while CPM is preferred for well-

defined projects with predictable durations.

Steps in Applying PERT and CPM Methods

PERT Method

1. Identify Activities: List all tasks required to complete the project.

2. Determine Sequence: Establish the sequence of activities and identify dependencies.

3. Draw the Network Diagram: Create a graphical representation showing task dependencies.

4. Estimate Time: Use three-time estimates (O, M, P) for each task.

5. Calculate Expected Time: Apply the formula to find expected durations.

6. Identify Critical Path: Identify the path with the longest total duration.

7. Monitor Progress: Adjust the plan based on actual progress and reevaluate times.

CPM Method

1. List Activities: Catalog all the activities required to finish the project.

2. Sequence Activities: Determine which activities depend on others.

3. Estimate Duration: Assign a fixed time duration to each task.

4. Draw Network Diagram: Create a network diagram to visualize task dependencies.

 5. Identify Critical Path: Determine the longest path through the network.

6. Monitor Project: Keep track of progress to ensure critical tasks are on schedule.

Application of PERT and CPM in Project Management

1 Planning and Scheduling

Both PERT and CPM provide a structured approach to project planning. PERT’s
focus on uncertainty helps in identifying the risks and estimating a realistic project
timeline. CPM, on the other hand, emphasizes the importance of critical activities that
must not be delayed. Both methods enable the creation of a visual representation of
project timelines through network diagrams, aiding in the identification of potential
bottlenecks.

2 Resource Management
CPM is particularly effective for managing resources because it allows managers to
optimize resource allocation, avoid conflicts, and balance workloads across the
project timeline. PERT can be helpful in scenarios where the resources are flexible,
and time estimates are uncertain, such as R&D projects.

3 Project Control and Monitoring

Using PERT and CPM, project managers can regularly monitor the progress of
projects. The identification of the critical path is crucial in both methods, as it allows
managers to focus their attention on the tasks that directly impact the project’s
completion date. These techniques enable early identification of potential delays,
allowing for adjustments and corrections.

Advantages and Limitations of PERT and CPM

Advantages of PERT:

 Handles uncertainty and variability in task durations.

 Useful for complex projects with a high degree of unpredictability.

 Provides a probabilistic estimate of project completion times.

Limitations of PERT:

 Can become complex and difficult to manage in large projects.

  Requires accurate estimation of time, which can be challenging.

 The probabilistic approach may lead to overestimating project durations.

Advantages of CPM:

 Suitable for well-defined and repetitive projects.

 Helps in identifying critical tasks that must stay on schedule.

 Effective for optimizing resource allocation and managing costs.

Limitations of CPM:

 Assumes fixed activity durations, which might not reflect reality.

 Less effective for projects with high uncertainty.

 Does not handle resource constraints well without modifications.

Conclusion

PERT and CPM are valuable project management tools that provide different approaches to planning,

scheduling, and managing projects. While PERT’s probabilistic nature makes it ideal for uncertain

projects, CPM's deterministic approach offers clarity and control over well-defined tasks.

Understanding the strengths and weaknesses of each method enables project managers to select the

appropriate technique or even combine them for hybrid project management approaches. Proper

implementation of PERT and CPM can significantly improve project efficiency, reduce risks, and

ensure successful project completion.

References:

Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and

Controlling (12th ed.). John Wiley & Sons.

Meredith, J. R., & Mantel, S. J. (2018). Project Management: A Managerial Approach (10th ed.).

Wiley.

PMI. (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (7th ed.).

Project Management Institute.

Gido, J., & Clements, J. P. (2014). Successful Project Management (6th ed.). Cengage Learning.

Klastorin, T. (2004). Project Management: Tools and Trade-offs. Wiley.

Anbari, F. T. (2003). "Earned Value Project Management Method and Extensions." Project

Management Journal, 34(4), 12-23.

Larson, E. W., & Gray, C. F. (2020). Project Management: The Managerial Process (8th ed.).

McGraw-Hill Education.

Zwikael, O., & Smyrk, J. (2011). Project Management for the Creation of Organizational Value.

Springer.

"PERT and CPM: A Comparison." (2023). Project-Management.com. Retrieved from

https://project-management.com/pert-vs-cpm/

"Understanding Critical Path Method (CPM) in Project Management." (2023). Wrike Blog.

Retrieved from https://www.wrike.com/blog/critical-path-method-cpm-project-management/