Program Evaluation and Review Technique (PERT) With Computer Application II. PERT/COST

Abstract

In the previous memo. (PERT/TIME), the PERT method was introduced and it was shown how the critical path method (CPM) could be used in preparing the time schedule of the project, in pinpointing the areas in the project that needs special attention, and in determining the man-power and equipment necessary to execute the plan. This memo. is a continuation of the above work where additional features are added to incorporate the cost variable in addition to the time variable. The purpose of introducing the cost variable is to develop a plan of action for cost expenditures by applying the necessary cost estimating technique and to act as a monitor in determining where the actual costs are different from estimated costs.