CHAPTER 4 -By April 1958, CPM in application was

demonstrated in a real success.

PERT AND CPM

CPM -was designed as a tool for planning,
scheduling, and control of construction work.
4-1 Introduction - Its emphasis was on the work or activities
What is PERT and what is CPM? to be managed.

PERT is a Program Evaluation and Review Network diagram defined and focused
Technique attention on the job to be accomplished.

CPM is the Critical Path Method. Schedule derives the earliest and the latest
times for their start and finish.

 PERT and CPM were developed

independently in the later part of PERT -was developed as a result of looking for
1950's. an improved method of planning and evaluating
 PERT and CPM are networks, a progress of a large scale research and
technique used for planning and development program.
coordinating large scale projects. -It was designed to provide the
PERT is a Program Evaluation and Review management a periodic reporting of current
Technique status and an outlook for the future on meeting
approved plans and schedules.
- The use of PERT began in 1958 through joint
efforts to speed up the Polaris Missile project.

-The concept was formulated by the research Although PERT and CPM were developed
team independently, they have a great deal in
common.
-The use of PERT in this large scale project was
proven successful in shortening the length of PERT originally stressed probabilistic activity
the project completion time. time estimate because the field in which it was
developed was typified by high uncertainty. In
CPM is the Critical Path Method. contrast, CPM originally made no provisions for
-Began in 1956 variable time estimates.

-Developed by J.E. Kelly of the Remington Rand Thus, comments and procedures
Corp, and M.R. Walker of Du Pont described will apply to both PERT and
CPM project analysis.
-Advanced scheduling and cost control
methods.
PERT/CPM is a control tool for defining the On January 27, 1968, President Ferdinand E.
parts of construction job and then putting them Marcos issued Memorandum Circular No. 153
together in a network form. It serves as an aid which provides that:
to the construction manager but it does not
make decision for him nor does it guarantor "In order that the performance discipline on the
good management PERT/CPM only serves the field could be controlled and easy reporting
project manager to see the whole picture of the system could be made to facilitate the
entire job. monitoring, evaluation, inspection completion
of infrastructure pro- jects, all heads of
PERT/CPM encourages periodic re-evaluation departments and chief of bureaus and offices
and providing an accurate measure of progress. concerned are hereby required to change the
old system of preparing the work programs of
Thus, a person in charge of each work said projects from the Gantt Chart (Bar Type) to
and the project manager know what is the PERT/CPM network. Strict herewith is
supposed to happen and when it is enjoined."
supposed to happen.
Summary: Heads of
departments and chiefs of
bureaus and offices must
4-2 PERT/CPM Project change old Gantt Chart system
Requirements to PERT/CPM network.

On June 19, 1968, the Executive Committee for

In all major projects of the government, PERT
Infrastructure Program implemented the
and CPM network is a mandatory requirements.
Presidential Order in a letter to all
Under Presidential Decree (PD) 1594, implementing agencies to wit:
Prescribing Policies, Guidelines, Rules and
"Your attention is invited to a Presidential
Regulations for government infrastructure
Order requiring the preparation of a PERT/CPM
contracts provides that:
diagram for every major project prior to their
"The program of work shall include, among actual construction."
other things, estimates of the work items,
quantities, costs and a PERT/CPM network of
the project activities...in the preparation of the Section 6 of R.A 5979 requires the application
bidding documents, the government shall make of PERT/CPM technique to all projects with an
and estimate of the actual number of working estimated cost of P100,000 or more.
days required to complete the project through
PERT/CPM analysis of the project activities and
corrected for holidays and weekends."
With the use of PERT/CPM, the
Summary : Estimates of work project manager can easily obtain
items, quantities, costs and
PERT/CPM analysis of project the following information:
activities.
1. The graphical display of project activities 2. It provides a means of speeding up a project
without excessive costs for overtime.
2. An estimate of how long will the project last
3. It gives a time leeway or float available for
3. Determine which activities are the most each of the non-critical work operations
critical to timely project completion.
4. It establishes time boundaries for operations
4. Determine how long any activity can be
delayed without lengthening the project. 5. PERT/CPM indicates the earliest starting date
for each work

6. It shows the most advantageous scheduling

4-3 Three Phases of PERT/CPM for all operations

7. It offers a means of assessing the effect on

the overall project
The three phases of PERT/CPM are:
8. PERT/CPM offers a means of re-scheduling
1. Planning the operations
2. Scheduling 9. Any claim if any, for additional payment will
be understood both by the owner and the
3. Control-Monitor
contractor.

10. In case of serious delay, the network can be

Planning revised at that stage

Planning is defined as determining the In any project construction undertakings,

relationship between the work operation and planning is the most important consideration
the sequence in which they are to be which includes:
performed.
1. Gathering of all the necessary input data
Scheduling or sequence involves distribution of
2. Planning phase is the main work
work time to each work operation and
determining when to start and when to finish. 3. The contractor can seek assistance for the
accomplishment of his work
Critical Path Method (CPM) offers the solution
through systematic approach. The specific 4. The contractor has the complete perception,
information provided by the CPM are experiences, resources, and interest
enumerated as follows:
5. The planning stages give the contractor a
1. PERT/CPM pinpoints the particular work "Dry Run"
operations
6. If the contractor wants an effective approach 2. The contractor is provided with revised
and use of the construction management, he schedules
must do it himself.
3. The contractor is supplied with cost status
7. By performing the work personally, one reports
obtains intimate first hand knowledge
4. The contractor should be supplied with those
reports as frequently as desired

SCHEDULING

Planning Phase

Scheduling is defined as the process of 1. A network diagram defining the activities in

translating the arrow diagram into time table of the project.
calendar days.
2. The duration of activities
The PERT/CPM schedule shows the
relationships between the operations and the 3. Cost estimates of the activities for monitoring
leeway limitations. cost, cash Bow requirements

4. Resource estimates

PERT/CPM – it gives the management a reliable 5. Trade indicators (responsibility) for activity
system identifying job problems within days grouping.
instead of months.

Schedule Phase
The PERT/CPM diagram should be updated
periodically to account for:
1. The schedule of activities
1. Time discrepancies
a. The Critical Activities
2. Deliveries
b. The Earliest Start date
3. Weather
c. The Earliest Finish date
4. Change orders
d. The Latest Start date
5. Unexpected events or conditions.
d. The Latest Finish date
CONTROLLING AND MONITORING
e. The Float
1. The contractor is supplied with time status
reports 2. A Bar Chart or a Time Scaled Network

3. A Resource Analysis
4. A Cash Requirement

The Control Monitor Phase uses actual data

which includes:

1. Additions to the project

2. Deletion from the project

3. Changes to duration, description, trade

indicators, cost estimates or resource
estimates.

4. Actual starting dates

5. Actual finishing dates.

The Output Phase consists of the following:

1. Time status report

2. Revised schedules

3. Revised Bar Charts/ Arrow Diagram or

Network.

4. Revised resource analysis

5. Revised cash flow predictions

6. Cost status reports

There are three major reasons for construction

failure:

1. Unbalanced organization

2. Lack of financial planning

3. Poor cost control.