PERT AND CPM

CHAPTER 4: CONSTRUCTION METHODS AND PROJECT

MANAGEMENT
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

PERT IS A PROGRAM EVALUATION AND REVIEW TECHNIQUE

CPM IS THE CRITICAL PATH METHOD
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

PERT AND CPM WERE DEVELOPED INDEPENDENTLY IN THE LATER PART OF 1950’S.
THESE TWO ARE NETWORKS. TECHNIQUES USED FOR PLANNING AND COORDINATING
LARGE SCALE PROJECTS.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

THE USE OF PERT BEGAN IN 1958 THROUGH THE JOINT EFFORTS OF THE AIRCRAFT,
NAVY, CONSULTING FIRM AND THE US GOVERNMENT TO SPEED UP THE POLARIS
MISSILE PROJECT.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

POLARIS MISSILE PROJECT IS A LARGE ONE INVOLVING 3,000 CONTRACTORS AND

11,000 SUB-CONTRACTORS WITH SEVERAL THOUSANDS OF WORK ACTIVITIES.
THE USE OF PERT IN THIS LARGE SCALE PROJECT WAS PROVEN SUCCESSFUL IN
SHORTENING THE LENGTH OF THE PROJECT COMPLETION TIME.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

IN 1956, PRIOR TO THE DEVELOPMENT OF PERT, THE CRITICAL PATH METHOD WHICH
IS SIMPLY CALLED CPM WAS DEVELOPED BY J.E. KELLY OF THE REMINGTON RAND
CORP. AND M.R. WALKER OF DU PONT IN AN EFFORT BY COMMERCIAL INDUSTRY TO
MAKE ADVANCED SCHEDULING AND COST CONTROL METHODS.
BY APRIL 1958, CPM IN APPLICATION WAS DEMONSTRATED IN A REAL SUCCESS.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

PERT ORIGINALLY STRESSED PROBABILISTIC ACTIVITY TIME ESTIMATE BECAUSE THE

FIELD IT WAS DEVELOPED WAS TYPIFIED BY HIGH UNCERTAINTY.
IN CONTRAST, CPM ORIGINALLY MADE NO PROVISIONS FOR VARIABLE TIME ESTIMATES.
HOWEVER, FROM A CONCEPTUAL ANALYSIS, MOST OF THESE DIFFERENCES WERE
RELATIVELY MINOR.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

FOR PRACTICAL PURPOSES, THE TWO TECHNIQUES ARE THE SAME. THUS, COMMENTS
AND PROCEDURES DESCRIBED WILL APPLY TO BOTH PERT AND CPM PROJECT
ANALYSIS.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

PERT/CPM IS A CONTROL TOOL FOR DEFINING THE PARTS OF THE CONSTRUCTION JOB
AND THEN PUTTING THEM TOGETHER IN A NETWORK FORM.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

PERT/CPM ONLY SERVES THE PROJECT MANAGER TO SEE THE WHOLE PICTURE OF THE
ENTIRE JOB.
IT ENCOURAGES PERIODIC RE-EVALUATION AND PROVIDING AN ACCURATE MEASURE
OF PROGRESS.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

IT ENCOURAGES PERIODIC RE-EVALUATION AND PROVIDING AN ACCURATE MEASURE

OF PROGRESS.
PERT AND CPM

■ WHAT IS PERT AND WHAT IS CPM?

THUS, A PERSON INCHARGE OF EACH WORK AND THE PROJECT MANAGER KNOW WHAT
IS SUPPOSED TO HAPPEN AND WHEN IT IS SUPPOSED TO HAPPEN.
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

IN ALL MAJOR PROJECTS OF THE GOVERNMENT, PERT AND CPM NETWORK IS A

MANDATORY REQUIREMENT.
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

UNDER PD 1594, PRESCRIBING POLICIES, GUIDELINES, RULES AND REGULATIONS FOR

GOVERNMENT INFRASTRUCTURE CONTRACTS:
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

“THE PROGRAM OF WORK SHALL INCLUDE, AMONG OTHER THINGS, ESTIMATES OF THE
WORK ITEMS, QUANTITIES, COSTS AND A PERT/CPM NETWORK OF THE PROJECT
ACTIVITIES…IN THE PREPARATION OF THE BIDDING DOCUMENTS, THE GOVERNMENT
SHALL MAKE AND ESTIMATE OF THE ACTUAL NUMBER OF WORKING DAYS REQUIRED
TO COMPLETE THE PROJECT THROUGH PERT/CPM ANALYSIS OF THE PROJECT
ACTIVITIES AND CORRECTED FOR HOLIDAYS AND WEEKENDS.”
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

ON JANUARY 27, 1968, PRESIDENT FERDINAND E. MARCOS ISSUED MC NO. 153

PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

“IN ORDER THAT THE PERFORMANCE DISCIPLINE ON THE FIELD COULD BE

CONTROLLED AND EASY REPORTING SYSTEM COULD BE MADE TO FACILITATE THE
MONITORING, EVALUATION, INSPECTION COMPLETION OF INFRASTRUCTURE PROJECTS,
ALL HEADS OF DEPARTMENTS AND THE CHIEF OF BUREAUS AND OFFICES
CONCERNED ARE HEREBY REQUIRED TO CHANGE THE OLD SYSTEM OF PREPARING
THE WORK PROGRAMS OF SAID PROECTS FROM THE GANTT CHART (BAR TYPE) TO THE
PERT/CPM NETWORK. STRICT COMPLIANCE HEREWITH IS ENJOINED.”
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

ON JUNE 19, 1968, THE EXECUTIVE COMMITTEE FOR INFRASTRUCTURE PROGRAM

IMPLEMENTED THE PRESIDENTIAL ORDER IN A LETTER TO ALL IMPLEMENTING
AGENCIES:
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

“YOUR ATTENTION IS INVITED TO A PRESIDENTIAL ORDER REQUIRING THE

PREPARATION OF A PERT/CPM DIAGRAM FOR EVERY MAJOR PROJECT PRIOR TO THEIR
ACTUAL CONSTRUCTION.”
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

SECTION 6 OF R.A. 5979 REQUIRES THE APPLICATION OF PERT/CPM TECHNIQUE TO

ALL PROJECTS WITH AN ESTIMATED COST OF P100,000 OR MORE. THUS, PERT/CPM
NOW HAS BECOME AN INTEGRAL PART AS REQUIREMENT OF PROJECT CONSTRUCTION
MANAGEMENT.
PERT AND CPM

■ PERT/CPM PROJECT REQUIREMENTS

WITH THE USE OF PERT/CPM, THE PROJECT MANAGER CAN EASILY OBTAIN THE
FOLLOWING INFORMATIONS:
1. THE GRAPHICAL DISPLAY OF PROJECT ACTIVITIES.
2. AN ESTIMATE OF HOW LONG WILL THE PROJECT LAST.
3. DETERMINE WHICH ACTIVITIES ARE THE MOST CRITICAL TO TIMELY PROJECT
COMPLETION.
4. DETERMINE HOW LONG ANY ACTIVITY CAN BE DELAYED WITHOUT LENGTHENING
THE PROJECT.