1.

Introduction:

Complex projects require a series of activities, some of which must be

performed sequentially and others that can be performed in parallel
with other activities. This collection of series and parallel tasks can be
modeled as a network.

Program Evaluation and Review Technique (PERT) is a network model

that allows for randomness in activity completion times. PERT was
developed in the late 1950's for the U.S. Navy's Polaris project having
thousands of contractors. It has the potential to reduce both the time
and cost required to complete a project.

2. PERT Chart

2.1 What it is:

A PERT chart is a graphic representation of a project’s schedule,

showing the sequence of tasks, which tasks can be performed
simultaneously, and the critical path of tasks that must be completed
on time in order for the project to meet its completion deadline. The
chart can be constructed with a variety of attributes, such as earliest
and latest start dates for each task, earliest and latest finish dates for
each task, and slack time between tasks. A PERT chart can document
an entire project or a key phase of a project. The chart allows a team
to avoid unrealistic timetables and schedule expectations, to help
identify and shorten tasks that are bottlenecks, and to focus attention
on most critical tasks.

2.2 When to use it:

Because it is primarily a project-management tools, a PERT chart is

most useful for planning and tracking entire projects or for scheduling
and tracking the implementation phase of a planning or improvement
effort.

2.3 How to use it:

A. Identify all tasks or project components.

Make sure the team includes people with firsthand knowledge of the
project so that during the brainstorming session all component tasks
needed to complete the project are captured. Document the tasks on
small note cards.

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B. Identify the first task that must be completed.
Place the appropriate card at the extreme left of the working surface.
Identify any other tasks that can be started simultaneously with task
#1.
Align these tasks either above or below task #1on the working surface.

C. Identify the next task that must be completed.

Select a task that must wait to begin until task #1(or a task that starts
simultaneously with task #1) is completed. Place the appropriate card
to the right of the card showing the preceding task.

D. Identify any other tasks that can be started simultaneously with

task #2.
Align these tasks either above or below task #2on the working surface

Continue this process until all component tasks are sequenced.

E. Identify task durations.

Using the knowledge of team members, reach a consensus on the
most likely amount of time each task will require for completion.
Duration time is usually considered to be elapsed time for the task,
rather than actual number of hours/days spent doing the work. This
duration time have to be documented on the appropriate task cards.

F. Construct the PERT chart.

Number each task, draw connecting arrows, and add task
characteristics such as duration, anticipated start date, and anticipated
end date.

G. Determine the critical path.

The project’s critical path includes those tasks that must be started or
completed on time to avoid delays to the total project. Critical paths
are typically displayed in red.

Note: Most commercially available project management software will

routinely generate a PERT chart.

Our Project is to construct two PERT Charts on the basis of a servicing

company and a manufacturing company. On this regard Necessary
information and finally the PERT Chart are given below

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3. Servicing Company

Servicing Company is an enterprise that offers all the products and

services wanted or expected by customers at the same time. It is a
company located in an offshore financial center to provide
management, invoicing and other services for client. We take a bank
as our model for servicing. Here our observed service is to help a client
to purchase a saving certificate like Sanchaypatras. The details are
given below:

Bank Name: ONE Bank Limited, Principal Branch

Location: 45 Dilkusha C/A Dhaka

Sanchaypatras (Savings Certificate) are also known as

Government Bonds. There are various types of Sanchaypatras, of them
the followings are popular such as-

Three Month Term Sanchaypatra ( T.M.T)

5 Years Bangladesh Sanchaypatra (B.S.P.)
Pensioner Sanchaypatra

When a client comes to purchase a savings certificate to a bank, the

bank provides services to the client. The total process has various
stages.

3.1 First Path:

When a Bangladeshi citizen comes to open a Sanchaypatra he or she

has to fill the Bangladesh Government prescribed Sanchaypatra
opening form S C-1. For Pensioner Sanchaypatra the form is P S C-1
with the signature card. Sanchaypatras can be issued singly and
jointly. Two attested photos of clients and nominees are needed. It
takes about 6 minutes to complete this path.

3.2 Second Path:

Customer can pay cash, clearing chq, or can give authority to debit
his/her account for issuance of Sanchaypatra.

If the client pays cash, Cash Suspense Account is credited in the first
stage. After that Cash Suspense Account is debited and Savings
Certificate (Sanchaypatra) account is credited.

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If the client gives clearing chq, the chq is presented to the Bangladesh
Bank clearing house with the proper endorsement by crediting Sundry
Deposit Remittance Account in the first stage. If the chq is honored
Sundry Deposit Remittance Account is debited and Savings Certificate
(Sanchaypatra) account is credited.

If the client gives authority to debit his/her account, his/her account is

debited after verifying his/her signature and Savings Certificate
(Sanchaypatra) account is credited. All the vouchers are prepared in
this stage. It takes 6 minutes to complete this path.

3.3 Third Path:

When the Sanchaypatra dealing officer is satisfied with the fund and
clients signature he/she brings the savings certificates from the vault
and the Sanchaypatra Script is written. It takes 8 minutes to complete
this path.

3.4 Fourth Path:

The Sanchaypatra dealing officer has to maintain the Sanchaypatra

issue register and Sanchaypatra interest payment register where all
the particulars are written. It takes 6 minutes to complete this path.

3.5 Fifth Path:

The authorized signatories then check everything and sign all the
papers. It takes 7 minutes to complete this path.

3.6 Sixth Path:

The client then receives the savings certificate with the receiving
signature on the register and the counterpart of the savings certificate.
It takes 2 minutes to complete this path.

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3.7 PERT Chart Construction:

Here we make a table on the basis of time needed for each and every
task to do for completing the task. Their dependencies are also given
according to the service.

Task Node (assume) Predessor Time(min

)
Issue paper A .. 6
Cash paid B A 6
Certificate written C B 8
Register document D C 6
Check E D 7
Register release F E 2

According to that we can find the following pert chart.

Here there only one path to continue the process. So that is the
longest path of this project as well as the critical path. Here the
whole process takes 35 minutes to complete the task.

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4. Manufacturing Company

A firm that converts raw materials and component parts into consumer
and industrial goods is called Manufacturing Company. They collect the
raw materials which are needed to make the product from different
source and make several processes through machine and complete the
process with the finished goods for the customer. We take a Cement
factory as our model for manufacturing process. Here our observation
is the whole process of making cement from raw materials to the
market goods. The details are given below:

Company Name: M.I. Cement Factory Ltd

Factory location: West Mukterpur, Munshigonj, Tel: 7648077, Fax: 880-
2-7648070
Dhaka Office: Sena Kalyan Bhaban (18th) Floor Suite # 1801,195,
Motijheel C/A, Dhaka

M.I. Cement Factory Ltd is a cement manufacturing company. It

produces cement named Crown Cement. While producing cement the
company has to complete certain stages.

4.1 Market Demand Examination stage:

The marketing department examines the market demand of the

cement. Winter season is the pick time for producing cement. The
marketing department also examines the amount of the cement stored
in the company factory. It takes 1 to 2 days to complete this stage.

4.2 Determination of Raw materials:

The directors of the company and the factory’s production department

determine the amount of raw materials needed to produce cement.
They also check how much is ordered through Letter Of Credit (LC) and
how much is on they called “Pipe Line”. It takes 15 to 20 days to
complete this stage.

4.3 Import of Raw Materials by LC:

Commercial department of the company completes this stage through

different banks. Limestone comes from Chatak, Sylhet and the other
materials come from abroad. It takes 2 to 3 days to complete this
stage.

4.4 Determination of Production Schedule:

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High officials of the factory determine the production schedule through
meeting. It depends on the amount of raw materials and the sales
ratio. It takes 1 day to complete this stage.

4.5 Production:

There are two types of cement.

1. OPC (Ordinary Portland Cement)
2. PCC (Portland Composite Cement)

In the Production Department, three major sub domains are there.

A. Arranging the materials:

They collect the raw materials and estimate the materials with
exact ratio that need to make a good product. Several materials are
needed to produce cement and their ratio on the product is also
important. The materials and their expected ratio are given below:

Name of Raw Percentage used in Country from where it is

Material cement imported
Clinker 76 India, Korea, Indonesia,
Malaysia
Gypsum 2-5 Indonesia, Nepal, Myanmar
Slag 6-8 India, Korea, Malaysia
Lime Stone 5-7 Chatak, Sylhet (Bangladesh)
Fly Ash 5-7 India
They first collect the materials and make the ratio that are needed

B. Mixing:
After that they mix that ratio through the machines and produce the
cement. The machines usually used in producing cement are
brought from Japan and China. The parts of the machines come
from Germany, and China.

C. Packaging:
After producing the cements, those are packed by their brand
packet or cover. This process is done through machine and also with
the help of human being. It just takes some times. This mixing and
packaging process can be done simultaneously or separately.

4.6 Quality Control:

After the production Quality Control or Quality Assurance Department

ensure about the quality of the product. They compare the product
with the given standard and measure the quality of the product on the
basis of standard.

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4.7 Maintenance Department:

In the Maintenance Department, they check the overall estimate

whether the production fulfill the requirement or not. They check the
time that is bound for or the deadline. They find out the number of
production and other production related issue.

4.9 Distribution:

The marketing department completes this function. After finishing the

quality check and other maintenance work the product finally
distribute into the market or to the direct client.

4.10 PERT Chart Construction:

Here we make a table on the basis of time needed for each and every
task to do for completing the task. Their dependencies are also given
according to the process.

Task Nod Dependenc Time

e y
Market Visit A .. 2 days
Raw Materials B A 17 days
estimate
Import Raw C B 3 days
Materials
Determine D C 1 day
schedule
Arranging the E C 1 day
materials
Producing F E 1 day
Quality check H F 4 days
Packaging G H 1 day
Maintenance I G 2 day
Distribute

According to that we can find the following pert chart.

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Here there only one path to continue the process. So that is the
longest path of this project as well as the critical path. Here the
whole process takes 32 days to complete the task.

5. As in conclusion, we can say that we find some review of the

company about their service and product. They have some lacking
about alternative which should be there both for service and
manufacture. Because backup is always is a good sign for a task to
minimize the risk. They have to improve there. Through these PERT
Charts we have got the scenario about the company and also their task
performance. PERT Chart is very helpful to find out performance of a
project.

Acknowledge

1. Mohammed Rakibul Qaiyum, Officer, One Bank Limited

2. Md. Sadrul Amin, Engineer, M. I. Cement Factory
3. PERT Chart expert software
4. Microsoft Project software
5. Ferdausi Sultana,Lecturer, Department of Management Studies,
Faculty of Business Studies, University of Dhaka

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