Railway Accounts Department Examinations

Showing posts with label PERT. Show all posts
Showing posts with label PERT. Show all posts

Sunday, January 12, 2025

PERT & CPM ( Management Accounting )

 PERT & CPM

  • PERT Stands for Program Evaluation Review Technique 

 

  • Meaning: Concise visualization of all the individual tasks ( or operations) to complete a given Project. 


  • Individual tasks divided into i) Events  ii)  Activities 


  • All are placed in Sequential Order 


  • Various time estimates are prepared for each activity. 


  • The Sequence in which the activities are scheduled to be performed to create “PATHS” from the beginning to end of the Project. 


  • The time required by the “PATHS” is determined by totaling the time for each activity along the path.   


  • Total 3 Estimation Techniques


  1. Most Likely (TM)  - Probable duration  

 

  1. Optimistic  (TO) – Shortest duration


  1. Pessimistic (TP) – Longest duration 


  • PERT formulae   =   TO + (4 x TM) + TP / 6 

 

  • Example:  TM – 15 days,  TO – 10 days & TP – 25 days          


PERT =  {10 + ( 4 x 15) + 25}  = 10 + 60 + 25 = 95 / 6 = 16 days  


  • Critical Path Method (CPM) :  Longest time path through the network will control the schedule for the entire project. 


  • PERT & CPM – Both used to scheduling the Organization and coordinating the Project.   





Events

Predecessor

1

-

2

1

3

1

4

1

5

2, 3

6

4, 5


C:\Users\cherry\Downloads\PERT.jpeg












Differences between


PERT

CPM

1.Unpredictable

1. Predictable

2. Non Repetitive

2. Repetitive

3. Suitable for R & D

3. Suitable for Batch Costing 

(Rolling stock production)

4.  Time only taken into account.

But Cost will not be considered.

4, Both Time & Cost will be 

considered

5. Activities represented as Lines & the

 Nodes Representing the Branching

 Structure

5. Activities are represented as Nodes

6. Total 3 Estimates.  A. Optimistic

  B. Pessimistic  C. Most likely 

6. Only one estimate i.e., Longest path

7. Only one type of Activity Relationship

 i.e., Finish to Start

7. Total 4 types of Activity Relationships.

  A. Finish to Start  B. Start to Start

C. Finish to Finish  D. Start to Finish 


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