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POM Module 5

The document discusses Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT), both of which are project management techniques used for planning and executing large projects. CPM is activity-oriented, focuses on time and cost optimization, and is suitable for repetitive tasks, while PERT is event-oriented, probabilistic, and used for non-repetitive projects. Additionally, the document explains the concept of dummy activities in project networks, which help maintain network logic and avoid ambiguity.

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5 views11 pages

POM Module 5

The document discusses Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT), both of which are project management techniques used for planning and executing large projects. CPM is activity-oriented, focuses on time and cost optimization, and is suitable for repetitive tasks, while PERT is event-oriented, probabilistic, and used for non-repetitive projects. Additionally, the document explains the concept of dummy activities in project networks, which help maintain network logic and avoid ambiguity.

Uploaded by

mayurksavaliya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Production and Operations Management

Module - 05
Introduction
• CPM (Critical Path Method) and PERT (Program Evaluation and
Review Technique) are network techniques used for planning,
scheduling and executing variety of large projects which require
coordination and execution of a variety of complex and large
number of activities.
CPM
• Critical Path Method or CPM is a well-known project modelling
technique in project management. It is a resource utilizing
algorithm that was developed in the 1950s by James Kelly and
Morgan Walker.
• The Critical Path Method or CPM has been used in many
industries starting from defense, construction, software,
aerospace, etc.
CPM
• The technique developed in connection with construction and
maintenance project
• It is suitable for establishing a trade-off for optimum balancing
between scheduled time and cost of the project
• It is useful for completion of projects involving activities of
repetitive nature
PERT
• Program (Project) Evaluation and Review Technique (PERT) is an
activity to understand the planning, arranging, scheduling,
coordinating and governing of a project. This program helps to
understand the technique of a study taken to complete a project,
identify the least and minimum time taken to complete the whole
project.
• PERT was developed in the 1950s, with the aim of the cost and
time of a project.
PERT
• Assumes a probability distribution for the duration of each
activity.
• Completion time estimated are needed.
• An event-oriented technique – focus on task.
• One time project of non-repetitive nature in which time estimates
are undertrained (Ex. Installing a new IS).
• Identifies critical areas in a project so that necessary adjustment
can be done to meet scheduled completion.
Difference Between CPM and PERT
CPM PERT

• Activity oriented network • Event oriented network


• Duration estimated with a fair • Estimate not so accurate or definite
degree of accuracy • Used in R&D projects, non
• Used extensively in construction repetitive nature
projects • Probabilistic model is used
• Deterministic concept in used • PERT is basically a tool for
• Can control both time and cost planning
when planning
Types of Network Diagram
• Activity on Node:

A B C D

• Activity on Arrow:

A B C
1 2 3 4
Dummy Activity
• A Dummy activity is a type of operation in a project network
which neither requires any time nor any resource. It is an
imaginary activity shown in a project network to identify the
dependence among operation.
Features of Dummy Activity
• Dummy activity forms a connecting link for control purpose or for
maintaining the uniqueness of the activity. A dummy activity is
used to maintain the network logic and to avoid ambiguity.
• An activity followed by a dummy activity can only be completed
once the activity or activities preceding the dummy activity is
completed.
Representation of Dummy Activity
• A dummy activity, being an imaginary or redundant activity, is
represented by a dotted line with an arrowhead. The numbers on
the terminal nodes are used to represent a dummy activity.

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