What is PERT in Project Management? – Working | New Topic [2024]

In this note, we are going to learn about a topic called “What is PERT in Project Management?” or Project Evaluation and Review Technique and about its working. Welcome to Poly Notes Hub, a leading destination of Diploma Engineering Notes for polytechnic students.

Author Name: Arun Paul.

What is PERT in Project Management?

The Project Evaluation and Review Technique (PERT) is a project management technique that analyzes and represents the tasks required to complete a project. It is especially beneficial for projects with significant uncertainty and complexity. PERT is useful for estimating the time required to accomplish each work and identifying the critical path—the sequence of actions that determines the project’s minimum duration. It is a very important parameter in project management.

Working of PERT in Project Management

Below we listed the working of Project Evaluation and Review Technique (PERT) –

1. Task Identification: The first stage in PERT is to identify all of the tasks required to finish the project. Each work should be well-defined and have a specified start and end point.
2. Time Estimation: Next, time estimates for completing each activity are determined. PERT typically uses three time estimates:
   • Optimistic Time (O): The shortest possible time the task could be completed under ideal conditions.
   • Most Likely Time (M): The best estimate of the time required under normal conditions.
   • Pessimistic Time (P): The longest possible time the task could take if everything goes wrong.
3. Calculation of Expected Time: The formula for calculating the expected time for each activity is as follows: Expected Time (TE) = (O + 4M + P) / 6
4. Network Diagram: A network diagram is built to show the sequence of tasks and their interdependence. This diagram comprises of nodes (tasks) and arrows (activity flow).
5. Critical Path Analysis: PERT detects the critical path, which is the longest path through the network diagram, and calculates the minimum time needed to finish the project. Tasks on the critical route have no slack or float, therefore any delay in these tasks has a direct impact on the project’s overall length.
6. Buffer Management: PERT enables project managers to set aside buffers or contingency time along the critical path to account for uncertainty and mitigate risks. This aids in improved project timetable management and guarantees that the project stays on track even if unforeseen delays arise.

Applications of PERT in Project Management

Below we listed some important PERT Applications in Project Management –

1. Project Planning and Scheduling: PERT is commonly used to plan and schedule complex projects. It aids in the breakdown of the project into smaller jobs, calculating their durations, and defining the key path to enable effective resource allocation and project completion on schedule.
2. Resource Allocation: PERT helps project managers allocate resources efficiently by identifying key tasks and understanding their dependencies. This ensures that resources are used appropriately to achieve project objectives.
3. Risk Management: PERT helps project managers identify and manage project risks by allowing them to examine how uncertainties affect project timelines. By defining the critical path and allocating buffers, PERT aids in risk mitigation and project success.
4. Decision Making: PERT enables informed decision-making by providing project managers with information on project schedules, dependencies, and important tasks. This allows stakeholders to make data-driven decisions and prioritize work to improve project results.
5. Cost Estimation: PERT can be used to estimate project costs by assigning resources and costs to each job on the project schedule. This enables project managers to create realistic budgets and track expenditures throughout the project’s lifecycle.
6. Performance Monitoring: PERT provides a framework for comparing project performance to planned timetables. By comparing actual progress to predicted timetables, project managers can discover discrepancies, determine the need for revisions, and implement corrective steps as needed.