What is Program Evaluation and Review Technique (PERT)?

Last Updated on March 4, 2024 by Admin

The program evaluation and review technique is a statistical tool used in project management, which was designed to analyze and represent the tasks involved in completing a given project. Read more to know more about the program evaluation and review technique – PERT and how the PERT chart is a useful project management tool in the construction project.

Program Evaluation and Review Technique (PERT) is a method used to examine the tasks that are in a schedule and determine a variation of the Critical Path Method (CPM). It analyzes the time required to complete each task and its associated dependencies to determine the minimum time to complete a project.

What is PERT?

The Program Evaluation Review Technique, or PERT, is a project management tool used in project planning to calculate the amount of time it will take to realistically finish a project. Using the technique helps project planners identify the start and end dates, as well as interim required tasks and timelines. The information is displayed as a network in chart form.

PERT charts are tools used to plan tasks within a project – making it easier to schedule and coordinate team members accomplishing the work. PERT charts were created in the 1950s to help manage the creation of weapons and defense projects for the US Navy.

While PERT was being introduced in the Navy, the private sector simultaneously gave rise to a similar method called Critical Path.

PERT is similar to the critical path in that they are both used to visualize the timeline and the work that must be done for a project. PERT is one of the best project management tools used in construction scheduling.

However with PERT, you create three different time estimates for the project: you estimate the shortest possible amount of time each task will take, the most probable amount of time, and the longest amount of time tasks might take if things don’t go as planned. PERT is calculated backward from a fixed end date since contractor deadlines typically cannot be moved.

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Difference Between PERT and CPM

Here’s a comparative analysis between PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) from a construction industry perspective, presented in a tabular form:

This table highlights the primary differences between PERT and CPM in the context of the construction industry, emphasizing their suitability, focus areas, and application in managing project tasks and objectives.

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Advantages of PERT

The Program Evaluation and Review Technique (PERT) is a project management tool used to plan, schedule, and control complex projects. It is particularly useful in projects where time, rather than cost, is the primary factor. From the construction industry point of view, PERT offers several advantages:

1. Effective Planning and Scheduling: PERT facilitates detailed project planning and scheduling, allowing project managers to define and sequence project activities. This is crucial in construction, where projects often involve complex sequences of tasks that must be completed in a specific order.
2. Identification of Critical Path: It helps identify the critical path in a project, which includes the series of tasks that determine the shortest possible duration of the project. Knowing the critical path enables construction managers to prioritize tasks and allocate resources efficiently, ensuring that the project is completed on time.
3. Handling Uncertainty and Risk Management: PERT is particularly useful in handling the uncertainty of task durations in construction projects. By using three time estimates (optimistic, most likely, and pessimistic) for each activity, PERT allows project managers to assess risks and develop more realistic schedules.
4. Optimization of Resources: With the insights gained from PERT analysis, construction managers can optimize the allocation of resources (such as labor, materials, and equipment) to ensure that critical tasks are completed on schedule without unnecessary delays.
5. Improved Communication: The visual representation of the project in the form of a PERT chart improves communication among stakeholders. It provides a clear overview of the project schedule, tasks, and dependencies, which is essential for coordinating efforts in construction projects involving multiple contractors and teams.
6. Flexibility: PERT charts can be updated and adjusted as the project progresses, allowing for flexibility in managing changes in the project scope or schedule. This adaptability is crucial in the construction industry, where projects often face unexpected challenges or changes.
7. Enhanced Decision Making: By providing a systematic framework for evaluating the time required to complete various aspects of a project, PERT assists managers in making informed decisions about scheduling, resource allocation, and priorities. This is particularly valuable in the construction industry, where strategic decision-making can significantly impact project success.

The PERT offers a robust framework for planning, scheduling, and controlling construction projects, especially those with a high degree of complexity and uncertainty. Its emphasis on time management, critical path identification, and risk assessment makes it a valuable tool for achieving timely and efficient project completion in the construction industry.

The Takeaway

The Program Evaluation and Review Technique (PERT) is a project management tool used to plan, schedule, and control complex projects. A practical program evaluation and review technique example involves its application in the construction industry, where it can delineate the steps involved in building a structure, estimate time for each task, and identify the critical path for project completion. This method is instrumental in projects where time, rather than cost, is the primary factor.

The difference between PERT and the Critical Path Method (CPM) lies in their approach to task durations and focus. While PERT is used for projects with uncertain activity times, utilizing probabilistic time estimates for planning and scheduling, CPM is generally used for projects where activities are fairly predictable, applying deterministic time estimates. PERT emphasizes time flexibility and probabilistic tasks, whereas CPM focuses on the critical path, making it more suitable for projects with well-defined tasks.

The PERT formula, which is central to its functionality, calculates the expected time for task completion using a weighted average of the most optimistic, most likely, and most pessimistic times.

This formula is $TE=(O+4M+P)/6$, where $TE$ is the expected time, $O$ is the optimistic time, $M$ is the most likely time, and $P$ is the pessimistic time. This calculation allows managers to estimate project durations more accurately, even when precise data is unavailable.

For those seeking a deeper understanding, a project evaluation and review technique PDF can offer comprehensive insights into PERT’s methodologies, benefits, and implementation strategies. These resources often include detailed case studies, step-by-step guides, and templates for applying PERT in various project settings.

The advantages of PERT include its ability to handle uncertainty and variability in project planning and execution. It facilitates identification of the critical path and allows project managers to allocate resources more effectively, thus optimizing project timelines and increasing the likelihood of on-time project completion.

PERT’s full form, Program Evaluation and Review Technique, encapsulates its purpose as a project management tool designed for evaluating and reviewing the tasks involved in completing a project. By analyzing task sequences and duration estimates, PERT helps managers understand project complexities, making it easier to anticipate challenges and plan for uncertainties.

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