Techniques of Control- PERT and CPM

Techniques of control are vital for effective management and achieving organisational goals. These techniques include financial control, quality control, inventory control, process control, strategic control, and personnel control. They involve managing financial resources, ensuring product/service quality, optimizing inventory levels, enhancing operational efficiency, aligning with strategic goals, and evaluating employee performance. By employing these control techniques, businesses can maintain quality, efficiency, and profitability for long-term success.

What are Network Techniques?

Network techniques, such as PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method), have become integral tools in the realm of management planning and control. These techniques involve breaking down a project into smaller activities and arranging them in a logical sequence. By determining the sequence and time limits for each activity, project managers can effectively plan and coordinate the various operations involved. A network diagram is then created to visualize the interdependence and relationships between these activities. The construction of such a diagram requires meticulous analysis and assessment of each project component to ensure optimal timing. In network analysis, activities are represented by arrows, denoting the operations required to achieve project goals, while events, represented by circles, signify the points in time when activities are initiated or completed. PERT and CPM are two widely recognized network techniques that aid in project management and control.

What is Programme Evaluation and Review Technique (PERT ) ?

Programme Evaluation and Review Technique (PERT) is an effective visual network method specifically designed for planning, monitoring, and controlling complex and unique projects. PERT offers a systematic approach that ensures project success by breaking down the entire project into smaller, manageable activities and establishing their interdependencies within a network diagram.

The process of developing a PERT involves several key steps:

1. Activity Breakdown: The project is carefully dissected into smaller activities, enabling a more granular analysis and logical sequencing of tasks.
2. Interdependency Identification: The relationships and dependencies between the activities are thoroughly examined and accurately represented in the network diagram, providing a comprehensive view of the project’s structure.
3. Time Estimation: Each activity is assigned three-time estimates: the optimistic or shortest time, the pessimistic or longest time, and the normal or most likely time. These estimates facilitate a more realistic assessment of activity durations.
4. Critical Path Determination: The critical path, the longest path in terms of time, is identified within the network diagram. It signifies the sequence of activities crucial for timely project completion. Any delays along the critical path directly impact the overall project timeline.
5. Plan Refinement: Based on the critical path analysis, the initial project plan is carefully reviewed, modified, and improved to effectively control and minimize the time required for project completion. This ensures that the project stays on track and any potential delays are mitigated.

What is Critical Path Method (CPM) ?

Critical Path Method (CPM) is a project management technique that shares similarities with Programme Evaluation and Review Technique (PERT), but it also has some distinguishing characteristics:

1. Simplified Activity Duration: Unlike PERT, CPM assumes a constant duration for each activity. Therefore, only a single time estimate is assigned to each activity, eliminating the consideration of uncertainty in duration.
2. Emphasis on Cost: While PERT primarily focuses on time management, CPM places a greater emphasis on cost control. It enables project managers to optimize resource allocation and cost efficiency throughout the project’s execution.
3. Well-Known Activity Durations: CPM is more suitable for projects where activity durations are well-known and can be accurately estimated. It is particularly effective in scenarios where historical data or past project experiences provide reliable information for time estimation.

Applications of PERT/CPM

PERT/CPM is a highly versatile and widely used tool in project management, offering numerous applications across various industries. Some of the key areas where this technique proves beneficial are:

1. Defense Industry: PERT/CPM plays a crucial role in managing large-scale projects related to the development and production of complex weapon systems. It aids in the meticulous planning, scheduling, and coordination of activities, ensuring efficient project execution.
2. Construction Projects: The construction industry extensively relies on PERT/CPM for project management. It effectively handles building and construction projects of different sizes and complexities. By optimizing resource allocation, scheduling activities, and monitoring progress, PERT/CPM contributes to timely project completion.
3. Shipbuilding: PERT/CPM finds valuable applications in the shipbuilding sector. It assists in planning and controlling activities involved in constructing ships, including hull fabrication, equipment installation, outfitting, and testing. This ensures streamlined operations and on-time delivery.
4. Airport Infrastructure: From the construction of new airport facilities to expansion projects, PERT/CPM is instrumental in managing diverse activities such as terminal construction, runway development, installation of navigation systems, and baggage handling systems. It enables efficient coordination and timely completion.
5. Plant Construction: PERT/CPM is highly beneficial in managing the construction of new plants, such as manufacturing facilities, power plants, or refineries. It aids in organizing and sequencing activities, coordinating various contractors and suppliers, and ensuring the project progresses according to schedule.
6. Product Launches: When it comes to launching new products, PERT/CPM offers invaluable support. It helps organizations plan and coordinate critical activities involved in product development, manufacturing, marketing, and distribution. By managing timelines and dependencies, PERT/CPM ensures successful product launches.
7. Computer System Installations: PERT/CPM can be effectively utilized in managing complex computer system installations. Whether it is setting up network infrastructure, deploying hardware components, configuring software, or conducting testing, PERT/CPM facilitates smooth project execution and timely completion.

Advantages of PERT/CPM

The following are the advantages of PERT/CPM:

1. Thorough Analysis: PERT/CPM encourages managers to conduct a comprehensive analysis of all factors that can impact project completion. Proactively identifying potential obstacles, uncertainties, and inefficiencies, allows for effective planning and eliminates surprises along the way.
2. Predictive Capability: PERT/CPM serves as a valuable predictive tool for assessing the impact of schedule changes. By analyzing the network diagram, project managers can identify potential trouble spots in advance, enabling them to take preventive measures and mitigate risks effectively.
3. Focus on Critical Activities: PERT/CPM directs attention to critical activities where it is most beneficial to allocate resources or expedite progress. This approach allows for efficient resource management and effective prioritization of key tasks, ensuring that project objectives are met.
4. Continuous Review and Adaptation: PERT/CPM emphasizes the importance of ongoing review and updates based on feedback from all project levels. This promotes a culture of vigilance and adaptability, enabling timely adjustments to address emerging challenges and ensure project success.
5. Enhanced Collaboration and Communication: PERT/CPM fosters collaboration among different departments involved in the project. By visually representing task relationships and responsibilities, it facilitates improved communication, coordination, and cooperation among team members, leading to better project outcomes.
6. Clarity of Individual Roles: PERT/CPM provides individuals with a clear understanding of their roles and responsibilities within the project. Each team member can easily identify their specific tasks and how their contributions align with the project’s objectives, promoting a sense of ownership and accountability.

Limitations of PERT/CPM

The following are the limitations of PERT/CPM:

1. Estimation Challenges: One of the limitations of PERT/CPM is the inherent difficulty in accurately estimating the time and cost involved in various project activities. Estimation errors can introduce unpredictability and make the PERT chart less reliable as a control tool for effective project management.
2. Time-Centric Focus: PERT/CPM is primarily suited for projects where time plays a critical role. It shines in managing and controlling time-sensitive projects, but its applicability may be constrained when other factors, such as cost or quality hold greater significance in project outcomes.
3. Limited Applicability to Simple Projects: PERT/CPM may have limited utility in handling straightforward, routine, and repetitive projects. Its strength lies in tackling complex and unique projects that require intricate analysis and involve multiple interdependent activities. In cases of continuous processes or projects with a streamlined and predictable flow, PERT/CPM may not provide substantial advantages.