SMU MBA ASSIGNMENTS

Answer :  Some key points about PERT are as follows:

 

1. PERT was developed in connection with an R&D work. Therefore, it had to cope with the uncertainties that are associated with R&D activities. In PERT, the total project duration is regarded as a random variable. Therefore, associated probabilities are calculated so as to characterise it.

 

2. It is an event-oriented network because in the analysis of a network, emphasis is given on the important stages of completion of a task rather than the activities required to be performed to reach a particular event or task.

 

3. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain.

 

4. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project.

 

Project scheduling by PERT-CPM

It consists of three basic phases: planning, scheduling and controlling

 

1. Project Planning:

In the project planning phase, you need to perform the following activities:

 

I) Identify various tasks or work elements to be performed in the project.

ii) Determine requirement of resources, such as men, materials, and machines, for carrying out activities listed above.

iii) Estimate costs and time for various activities.

iv) Specify the inter-relationship among various activities.

v) Develop a network diagram showing the sequential inter-relationships between the various activities.

 

2. Project Scheduling:

Once the planning phase is over, scheduling of the project is when each of the activities required to be performed, is taken up. The various steps involved during this phase are listed below:

1.   Estimate the durations of activities. Take into account the resources required for these execution in the most economic manner.

2. Based on the above time estimates, prepare a time chart showing the start and finish times for each activity. Use the time chart for the following exercises.

• To calculate the total project duration by applying network analysis techniques, such as forward (backward) pass and floats calculation
• To identify the critical path
• To carry out resource smoothing (or levelling) exercises for critical or scarce resources including re-costing of the schedule taking into account resource constraints

project.

 

Q.2 Write a short note on Monte-Carlo simulation? What are the Limitations of using Simulation?