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4/29/04

05:58 PM

Page 22-1

22
C H A P T E R

Project Management with PERT/CPM

O

ne of the most challenging jobs that any manager can take on is the management of a large-scale project that requires coordinating numerous activities throughout the organization. A myriad of details must be considered in planning how to coordinate all these activities, in developing a realistic schedule, and then in monitoring the progress of the project. Fortunately, two closely related operations research techniques, PERT (program evaluation and review technique) and CPM (critical path method), are available to assist the project manager in carrying out these responsibilities. These techniques make heavy use of networks (as introduced in the preceding chapter) to help plan and display the coordination of all the activities. They also normally use a software package to deal with all the data needed to develop schedule information and then to monitor the progress of the project. Project management software, such as MS Project in your OR Courseware, now is widely available for these purposes. PERT and CPM have been used for a variety of projects, including the following types. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Construction of a new plant Research and development of a new product NASA space exploration projects Movie productions Building a ship Government-sponsored projects for developing a new weapons system Relocation of a major facility Maintenance of a nuclear reactor Installation of a management information system Conducting an advertising campaign

PERT and CPM were independently developed in the late 1950s. Ever since, they have been among the most widely used OR techniques. The original versions of PERT and CPM had some important differences, as we will point out later in the chapter. However, they also had a great deal in common, and the two techniques have gradually merged further over the years. In fact, today’s software packages often

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