Question

Question 1: Compare and contrast the project evaluation and review technique (PERT) with the critical path method (CPM).

Question 2: Explain in detail Eliyahu Goldratt’s Theory of Constraints with a brief note on its application in Project Management.

Answer 1

Answer 1:

Comparision between PERT and CPM

a. project evaluation and review technique (PERT) uses a probabilistic model while the critical path method (CPM) uses deterministic model

b. PERT is used in non-repetitive jobs like scheduling but CPM is used in repetitive jobs.

c. PERT is based on events but CPM is based on activities.

d. PERT deals with uncertain time i.i most likely, optimistic and pessimistic time but CPM deals with a single time limit.

e. PERT does not use dummy variables but CPM uses dummy variables for sequencing.

f. PERT only deals with time but CPM deals with cost and time.

g. Both of them follows the same steps and network diagrams to find results.

h. In both PERT and CPM, early start, early finish, late start and late finish can be calculated.

Answer 2:

The Eliyahu Goldratt's Theory of Constraints is similar to MRP system or a Kanban System. Initially, it was related to the Production Scheduling. It helps in identifying the important limiting factor. According to Goldratt, 1984, in every system, there will be at least one constraint which will reduce the performance of the system and it is considered the weakest link in the system. There are five steps in the theory of constraints which is explained in Goldratt, 1984 with its application in project management are:

1. First, identify the constraints/bottlenecks in the project

2. Try to eliminate the constraints by analyzing problems in the project.

3. Delivering extraordinary performance within the time limits.

4. Measuring performance of the project by efficiency measures like increased profit, reduced turnaround time, reduced inventory, optimal utilization of available resources etc.

5. Repeat the process by again going to step 1.

This is a continuous improvement program where organizations strive to better every time. Many tools and techniques are used in the Theory of Constraints like the transition tree, fish-bone diagram, future reality tree, evaporating cloud tree etc. The essential thinking includes what should be changed, to what it should be changed, what will drive the change.