Concept of PERT

 There are many techniques of controlling. These techniques are CPM, PERT, Management by objective, budgetory control and so on. Every technique is important and plays an important role in the growth, development of organisation. Among all CPM is most important technique that is used to optimum utilisation of resource and get the goal of the organisation.

The full form of CPM is Critical Path Method. There are many activities, actions involve in the process of performing any activity of organisation. Every activity requires particular time and resource. The processor joining every activity to it's time and resource to complete it at minimum time. This process is called critical path method.

In other words we can say that there are many steps, sub steps, action, sub action of performing any activity. Every activity requires particular type of resource. This process is called CPM.

Steps in PERT:

There are many steps of PERT( Project Evaluation Review Technique). These steps are as below:

1. Identify activity- It is the first step of PERT. There are many activities involve in project working process in the process of PERT. The identifying activity have to be performed without knowing all activities we may not make PERT.

2. To find out sequence- It is the second step of PERT. Whenever we perform many activity in the processor project making. There are many activities that is correlated with one another. If we find out the activity of correlated we can easily join two and more than two activities.

3. To construct design- It is the third step of PERT. It is done after identifying and sequencing activities. We make a rough diagram in which all activities are represented in the form of diagram.

4. To estimate type- It is the fourth step of PERT. It is done after making diagram. The type is arranged in the minimum or maximum firm.

5. Determine critical path- It is the fifth step of PERT. There are many activities that take maximum time to complete in the process of PERT. We consider and make policy to minimise this completed function.

6. Update project process- It is the last step of PERT. In this step we make criteria in which the development of project is checked at continuous basis.

Advantage:

1. It helps to coordinate all activities, such activities, action, sub action by a systematic way.

2. It helps to allocate our resource according to action wise to get better performance.

3. It helps to find out the relationship among activities, sub activities, action, sub action of organisation.

4. It helps in optimum utilisation of resources.

5. It helps us to achieve the goal of the organisation.

6. It helps to maximise the profit of the organisation.

7. It helps to complete each activity at right time.

Disadvantage:

1. It is a step wise process. So it is very difficult to divide all step in step wise firm.

2. It is a time consuming process.

3. It is a resource consuming process.

4. It is useful in production, construction or project sector.

5. It is useful for large scale company, multinational company and so on.

6. It requires maximum data to implement and execute.

7. It is a complex process because it arrange all function in a systematic way.

Critical path method- we know that there are many activities of business. These activities are production, demand forecasting, supplying, pricing, advertising, warehousing, communication, trading, distributing, financing and so on. Beside above project making is also an important function of business. There are many activities, sub activities, action, sub action of project making. The consultation period of each activity is minimum or maximum. The process of knowing each activity by a systematic way and complete at right time to complete project within a fixed time. This process is called Critical Path Method.

Nature of CPM:

1. It is technical process.

2. It is systematic process.

3. It is formal method.

4. It is goal oriented.

5. It is purposeful method.

Objective of CPM:

1. It saves our time, energy, resource, effort.

2. It helps to complete every activity at right time.

3. It helps in optimum utilisation of resources.

4. It helps the organisation to survive.

5. It helps to achieve the goal of organisation.

Steps of CPM:

There are many steps of critical path method. These steps are as below:

1. There are many activities involve in the process of project making in the first step we list out all activities together that will be performed in the process of completing project.

2. In the second step we calculate the starting duration of each activity because without knowing starting activity we may not coordinate among all activities.

3. In the third step we know the ending activities of all activities because without knowing ending period we many not know the total duration each activity take.

4. In the fourth step we know total period that is taken by all activities because every activity consumes different period to complete.

5. In the final step of critical path method. In this step the activity that will take maximum period that is performed by effective, efficient, economical way to complete the project at right time.

So we say that all these are important steps of critical path method.

Advantage:

1. It is used in proper planning, right scheduling and proper monitoring of project.

2. It establish effective communication among departments.

3. It establish proper coordination among activities.

4. It is used to cost control.

5. It helps in effective decision making.

6. It helps to complete the project at right time.

Disadvantage:

1. It is forecasting base approach. So it forecasting is wrong all activity became wrong.

2. It calculates the minimum and maximum period to perform any activity of project. The estimation of minimum and maximum period is similar to happening activities.

3. It coordinates all activities of period by systematic way. There is far difference from theotrical to practical firm.