PERT AND CPM

Introduction
- PERT
- Program Evaluation and Review Technique
- Developed as a result of looking for an improved method of planning and evaluating progress
of a large scale research and development program
- CPM
- Critical Path Method
- Developed as a tool for planning, scheduling, and control of construction work
- PERT/CPM
- Only serves the project manager to see the whole picture of the entire job
- Encourages periodic re-evaluation and provides an accurate measure of progress
PERT/CPM Project Requirements
- Mandatory under PD 1594
- Memorandum Circular No. 153
- Replace Gantt Chart with PERT/CPM
- Sec. 6 of RA 5979
- PERT/CPM is required to all projects with an estimated cost of 100,000 pesos or more
PERT/CPM Project Requirements
- PERT/CPM content:
- Graphical display of project activities
- Time estimate
- Critical activities
- Activities that can be delayed without compromising the project
Three Phases of PERT/CPM
- Planning
- Scheduling
- Control-Monitor
Planning
- PERT/CPM provides;
- Particular work operations whose completion times are responsible for controlling the complete
date
- A way to speed up a project without excessive costs for overtime
- A time leeway or float available for each of the non-critical work operations. The information on
float time will give the project manager an opportunity to maneuver operations
- A time boundary for operations with possibilities of shitting resources, equipment, and
manpower to meet time requirements
- An indication of the earliest starting date for each work operation and sub-contract for supply
and delivery of materials
- An advantageous scheduling for all operations as this gives planning information as to time and
cost in choosing methods, equipment, crew, and work hours
- An assessment of the effect on the overall project variations in one operation such as change
orders
Planning
- PERT/CPM provides;
- A means to reschedule the operations but still to be completed at the least increase in cost in
case of change orders where the owner would not want to extend contract time
- A way to effectively convey the revisions to reflect the change order that also involves
additional payment
- A way to revise when a serious delay happens
- With planning, a contractor can then:
- Know his costing methods
- Can seek assistance for the accomplishment of his work (basic responsibility cannot be
delegated)
- Have the complete perception, experiences, resources, and interest in getting the project done
in the best possible time and cost
- Have a dry run with project
- Have an effective approach and use of the construction management, if he does it himself
- Obtain knowledge and insight of the job and its anticipated problems*
Planning
- Five inputs (phase)
- A network diagram defining the activities
- Duration of activities
- Cost estimates for monitoring and cash flow requirements
- Resource estimates
- Trade indicators (responsibility) for activity grouping
Scheduling
- Translates arrow diagram into a time table
- PERT/CPM must be updated periodically to account for:
- Time discrepancies
- Deliveries
- Weather
- Change orders
- Unexpected events or conditions
Scheduling
- Four outputs (phase)
- Schedule of activities in network showing the following
- Critical activities
- Earliest start
- Earliest finish
- Latest start
- Latest Finish
- Float
- Bar Chart/Time Scaled Network
- Resource Analysis (manpower, resources, equipment, and others required each day)
- Cash Requirement prediction indicating how much cash is to be disbursed for the job and the
amount of money that will be collected as a result of work accomplishment
Controlling and Monitoring
- Flexibility + Updates
- The contractor is:
- Supplied with time status reports showing the overall status of the project
- Provided with revised schedules which reflect the actual work conditions and project status
- Supplied with cost status showing how much money is being disbursed for what type of
expenses
- Supplied with those reports as frequently as desired or required to maintain control over the
project
- The Control Monitor Phase uses data which includes:
- Additions
- Omissions
- Changes
- Actual starting and finishing dates
Output Phase
- Consists of the following:
- Time status report
- Revised schedules
- Revised Bar Charts/Arrow Diagram or Network
- Revised resource analysis
- Revised cash flow predictions
- Cost status reports
Three major reasons for construction failure:
- Unbalanced organization
- Lack of financial planning
- Poor cost control