Chapter 8: PERT, CPM, GERT

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# Chapter 8: PERT, CPM, GERT - PowerPoint PPT Presentation

Chapter 8: PERT, CPM, GERT. Originated from Govern./Research (Navy/Lockheed) Focus on time Optimistic, most likely and pessimistic time . Originated from private Industry Focus on cost Crash Time and Crash cost. PERT x CPM (both 1950s). PERT Formulas p.231-232.

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### Chapter 8: PERT, CPM, GERT

Originated from Govern./Research

(Navy/Lockheed)

Focus on time

Optimistic, most likely and pessimistic time

Originated from private Industry

Focus on cost

Crash Time and Crash cost

PERT x CPM (both 1950s)
PERT Formulas p.231-232

Optimistic, most likely, and pessimistic time

Estimated time of project

Estimated variance of project

Z

CPM

Based on idea that a project has a Normal Time to complete a job. Normal time is the cheapest. If it takes longer or shorter, it will

usually be more expensive.

Why ?

To crash a project , PM may need one or more of the below, resulting in great cost
• Overtime workers
• Use breakthrough equipment
• Start a phase of the project (Design, for example) before a pre-requisite phase is completed (Analysis, for example)
• Hire consultants.
• Not a steep slope (big decrease in time with only little increase in cost)
• Task that is part of the CP.
• Crashing the task will not have a negative colateral result to the rest of the company’s activities or projects (for example, need to stop something else to crash that task).
GERT, different from others because:
• Not all immediate predecessor activities must be completed before activity is started
• Looping back is permitted.
• Percentage probability