Project Management Through PERT and CPM such as PERT & CPM are adjudged as the most useful and time-tested tools for project ‘management. PERT & CPM go hand in hand. Without CPM, PERT is incomplete and vice versa. ‘They together optimize the end results by conserving not only the time required to complete the project, but even the costiresources expected tobe expended on it. Anitha HS, Nalini Mand PallaviJ project invariably comprises a combination of inter-related activities which must be executed in a certain order before the entire task can be completed. The activities are inter-related in a logical sequence in such a way that some activities cannot start until some others are complete. The growing complexities of modern projects have demanded more systematic and effective planning techniques, with the objective of optimizing the efficiency of executing the project. Efficiency implies reduction in the time required to complete the project while accounting for economic feasibility of using the available resources. The Project Management has evolved two analytical techniques for planning, scheduling and controlling of projects. They are PERT and CPM (Program/ Project Evaluation and Review Technique and Critical Path Movement). They are basicaly time-oriented methods, in the sense that they both lead to the determination of a time schedule for the project. The significant difference between the twoapproachesis that the time estimates forthe different activities in ‘CPM’ are assumed to be ‘deterministic, while in PERT, these are described as ‘probabilistic’, However, they are popularly known as ‘Project Scheduling Techniques’, In order to execute the Polaris Missile Program, Allen, Booz & Hamilton helped the US Navy by developing the PERT. To plan, schedule and control projects on hand properly, the project management techniques, PERT and CPM, were found out in western industrial and mili establishments. CPM was found out by MR Walker of EL.Du Pont de Nemours & Co, and JE Kelly of Remington Rand, circa 1957, Primal Steps in Project Management Through PERT-CPM Planning The planning phase is started by splitting the total project into smaller projects. The smaller projects are further dividedinto activities and then analyzed. The relationship of each activity with other activites is defined and established and corresponding authority and responsibility are also stated and defined. Ithelps in reducing substantially the possibility of overlooking a task, which. is necessary for completion of the project. ‘Scheduling “The objective ofthe scheduling phase is to prepare atime chart showing the starting and finishing time estimates for each activity in the project. The schedule must pinpoint critical path activities which require special atention and for non-critical activities, the sack time are tobe shown. ‘Allocation of Resources Physical variables in the form of abor, finance, plant, ete, impose a limitation on completion time devoted. Hence, there is a need for proper, systematic and scientific allocation of scarce resources. Control Itis the final phase in project management. CPM facilitates the application ofthe principle, Management by Exception (MBE), to identify those areas which are critical for completion ofthe project. Control is normally exercised by constant reporting, reviewing and updating, of the project! ‘What is More Interesting About These Techniques? CPM/PERT can address a few important questions: + Whatis the nature of the project on hand? How long will the project run? What is the quantum of risk involved? + How many critical activities are there in the project which will delay the project ‘completion time? + Whether the project executor is confident enough to complete the project on time? « Isthere a necessity of introducing a Crash Program to cut down the time required for certain activities? Five useful questions to ask when preparing an activity network are: ‘© Whether itis a predecessor activity? + Whether itis successor activity? T pnitha HS, Operations Resarch for Management, Jaipur: Mangal Deep Publications, 2002 December 2008NP fot Momagerent Through PERT nd CPM) + Whether itis a concurrent activity? sane ‘+ Whether the activities are properly linked in the network diagram? With this backdrop, a case has been built up based on an anecdote and a thorough analysis is made to adduce solutions to it. (Name of the company & designates have been changed for convenience). ‘Nikhil Bolangady, Managing Director of M/s Nikhil Company, had an opportunity to participate in dealing with a project. The project ‘Akanksha’ was required tobe completed within eight months at a cost of Rs. 1, 00,000. The President received a letter of intent in November. The Managing Director called the Production Manager, Vijay Kulkarni and Finance Manager, Akshay Savnal in the first week of December, to finalize the appropriate time and cost based on past jobs and new technology acquired in the organization. ‘The President positively needed an answer by the third week of December, so that project canbe started, if profitable, from January 1. Therefore, the Production Manager and Finance “Manger have been requested to determine profitability of the project on a eight-month basis, The time (in months and cost in rupees.) Under normal conditions and crashing conditions, have been calculated as follows: Main issues involved are: ‘+ What suggestion should be given to the ‘Managing Director for undertaking the Project? + Afterhaving a long discussion with the General Manager, who is second in ‘command in the organization, the Managing Director somehow feels that during implementation of the project, if undertaken, it will not be possible to crash the activity 2-4 from its normal time. Ifso, how will the Production and Finance Managers respond to this problem? ‘The Managing Director should first imbibe the success mantra with a positive attitude: sor a dummy activity?