PROGRAM

EVALUATION AND
REVIEW
TECHNIQUE
(PERT)
INTRODUCTION
 The program evaluation & review technique (PERT) was developed by the
Special Projects Office of the U.S. Navy and applied to the planning & control
of the Polaris Weapon system in 1958. It worked then, it still works; and it has
been widely applied as a controlling process in business & industry.
 PERT uses a network of activities. Each activity is represented as a step on
chart. It is an important tool in the timing of decisions. In simplest form of
PERT, a project is viewed as a total system and consisting of setting up of a
schedule of dates for various stages and exercise of management control,
mainly through project status reports on this progress.
TERMINOLOGIES
 PERT EVENT:-
A point that marks the start or completion of one or more activities. It
consumes no time and uses no resources. When it marks the completion of one
or more activities, it is not "reached" (does not occur) until all of the activities
leading to that event have been completed.
 PREDECESSOR EVENT:-
An event that immediately precedes some other event without any other
events intervening. An event can have multiple predecessor events and can be
the predecessor of multiple events.
 SUCCESSOR EVENT:-
An event that immediately follows some other event without any other
intervening events. An event can have multiple successor events and can be the
successor of multiple events.
 PERT ACTIVITY:-
The actual performance of a task which consumes time and requires resources
(such as labor, materials, space, machinery). It can be understood as
representing the time, effort, and resources required to move from one event to
another. A PERT activity cannot be performed until the predecessor event has
occurred.
 PERT SUB-ACTIVITY:-
A PERT activity can be further decomposed into a set of sub-activities. For
example, activity A1 can be decomposed into A1.1, A1.2 and A1.3 for example.
Sub-activities have all the properties of activities, in particular a sub-activity has
predecessor or successor events just like an activity. A sub-activity can be
decomposed again into finer-grained sub-activities.
 OPTIMISTIC TIME:-
The minimum possible time required to accomplish a task, assuming
everything proceeds better than is normally expected.
 PESSIMISTIC TIME:-
The maximum possible time required to accomplish a task, assuming
everything goes wrong (but excluding major catastrophes).
 MOST LIKELY TIME:-
The best estimate of the time required to accomplish a task, assuming
everything proceeds as normal.
 EXPECTED TIME (TE):-
The best estimate of the time required to accomplish a task, accounting for
the fact that things don't always proceed as normal (the implication being that
the expected time is the average time the task would require if the task were
repeated on a number of occasions over an extended period of time).

TE = (O + 4M + P) ÷ 6
 FLOAT/SLACK TIME:-
It is a measure of the excess time and resources available to complete a task. It
is the amount of time that a project task can be delayed without causing a delay
in any subsequent tasks (free float) or the whole project (total float). Positive
slack would indicate ahead of schedule; negative slack would indicate behind
schedule; and zero slack would indicate on schedule.
 CRITICAL PATH:-
The longest possible continuous pathway taken from the initial event to the
terminal event. It determines the total calendar time required for the project;
and, therefore, any time delays along the critical path will delay the reaching of
the terminal event by at least the same amount.
 CRITICAL ACTIVITY:-
An activity that has total float equal to zero. An activity with zero float is not
necessarily on the critical path since its path may not be the longest.
 LEAD TIME:-
The time by which a predecessor event must be completed in order to allow
sufficient time for the activities that must elapse before a specific PERT event
reaches completion.
 LAG TIME:-
The earliest time by which a successor event can follow a specific PERT
event.
DEFINITION
 The program (or project) evaluation and review technique, commonly
abbreviated PERT, is a statistical tool, used in project management, which was
designed to analyze and represent the tasks involved in completing a given
project & to illustrate the flow of events in a project.
 “Program Evaluation and Review Technique (PERT) is a project management
tool used to schedule, organize and coordinate tasks within a project.”

 “PERT is a method to analyze the tasks involved in a completing a given

project, especially the time needed to complete each task, and to identify the
minimum time needed to complete the total project.”
A BASIC PERT DIAGRAM
OBJECTIVE OF PERT
 The main objective of PERT is to facilitate decision making and to reduce
both the time and cost required to complete the project.
TYPES OF NETWORK
DIAGRAMS USED IN PERT
There are two types of network diagrams-
 Activity on arrow (AOA) – In the first variant the duration is denoted on arrow
connecting diagram nodes. Such diagram type called AOA.
 Activity on node (AON) - in such diagram the information about the task
duration is denoted in the diagram node & each task is represented in the form
of rectangle with definite set of fields.
NEED FOR PERT
 Prediction of deliverables
 Planning resource requirement
 Controlling resource allocation
 Internal program review
 Performance evaluation
 Uniform wide acceptance
 Reduction in cost and saves time
 Determination of activities
 Elimination of risk in complex activities
 Flexibility
 Evaluation of alternatives
 Useful effective control
 Useful decision making
 Useful research work
STEPS IN PERT PLANNING
PROCESS
Identify the specific activities and milestones

Determine the proper sequence of the activities

Construct a network diagram

Estimate the time required for each activity

Determine the critical path

Update the PERT chart as the project progresses

1. Identify activities and milestones
The activities are the tasks required to complete the project. The milestones
are the events marking the beginning and end of one or more activities. It is
helpful to list the tasks in a table that in later steps can be expanded to include
information on sequence and duration.
2. Determine activity sequence
This step may be combined with the activity identification step since the
activity sequence is evident for some tasks. Other tasks may require more
analysis to determine exact order in which they must be performed.
3. Construct the network diagram
 Using the activity sequence information, a network diagram can be drawn
showing the sequence of the serial and parallel activities. For the original
activity –on-arc model, the activities are depicted by arrowed lines and
milestones are depicted by circles or bubbles. 
4. Estimate activity times
 A distinguishing feature of PERT is its ability to deal with uncertainty in
activity completion times. For each activity, the model usually includes three
time estimates:
a) Optimistic time
b) Most likely time
c) Pessimistic time
5. Determine the critical path
 The critical path is determined by adding the times for the activities in each
sequence and determining the longest path in project. The critical path
determines the total calendar time required for the project.
6. Update as project progresses
 Make adjustment in the PERT chart as the project progresses. As the project
unfolds, the estimated times can be replaced with actual times. The PERT chart
may be modified and improved to reflect the new situation.
PERT ANALYSIS CHART
BENEFITS OF PERT
 PERT is useful because it provides the following information:
 Expected project completion time.
 Probability of completion before a specified date.
 The critical path activities that directly impact the completion time.
 That activities that have slack time and that can lend resources to critical path
activities.
 Activity start and end dates.
LIMITATIONS OF PERT
 A major disadvantages of PERT has been its emphasis only on time, not on
costs.
 The cost of setting up such system are extensive.
 It is difficult to estimate accurate time & cost of various activities involved in a
project Errors in estimation makes the PERT charts, unreliable as a control aid.
 These systems will not help managers to solve all their problem.
USES OF PERT FOR THE
NURSE MANAGERS
 It forces planning and shows how pieces fit together.
 It does this for all nursing line managers involved.
 It establishes a system for periodic evaluation and control at critical points in
the program.
 It reveals problems and is forward-looking.
 PERT is generally used for complicated and extensive projects or programs.
 Many records are used to control expenses and otherwise conserve the budget.
APPLICATIONS OF PERT
 Used in research and development projects.
 For developing, tooling and introducing a new project.
 To plan and execute the acquisition and installation of an electronic system.
 Development and administration of various training programs.
 For management development and organizational planning.
ADVANTAGES AND DISADVANTAGES
BY MODERN AND PHILIPS
ADVANTAGES:-
 It encourages logical discipline in planning, scheduling and control of project.
 It encourages more long range & detailed project planning.
 It provides a standard method of documenting and communicating project
plans, schedules, and time and cost-performance.
 It identifies the most critical elements in the plan, thus focusing management
attention that is, most constraining on the schedule.
 It illustrates the effects technical procedural changes on overall schedules.
DISADVANTAGES:-
 There can be potentially hundreds or thousands of activities and individual
dependency relationships.
 PERT is not easily scalable for smaller projects.
 The network charts tend to be large and unwieldy requiring several pages to
print and requiring special size paper.
 The lack of a timeframe on most PERT/CPM charts makes it harder to show
status although colors can help (e.g., specific color for completed nodes).
 When the PERT/CPM charts become unwieldy, they are no longer used to
manage the project.
GANTT
CHARTS
INTRODUCTION
 A visual representation that provides an instant overview of the status of a
project
 Outlines all activities involved in a project against a timescale.
 Simply lists what needs to be done and when. 
 Great ways to manage project schedule simply and easily
HISTORY
 Early in this century Henry L. Gantt developed the Gantt chart as a means of
controlling production. It depicted a series of events essential to the
completion of a project or program. It is usually used for production activities.
 A Gantt chart provides a graphical illustration of a schedule that helps to plan,
coordinate & track specific tasks in a project. The horizontal axis of the Gantt
chart is a time scale, expressed either in absolute time or in relative time
referenced to the beginning of the project. The resolution depends on the
project.
DEFINITION
 “A chart in which a series of horizontal lines shows the amount of work done
in certain periods of time in relation to the amount planned for those periods.”
PURPOSE OF A GANTT CHART
To illustrate the relationship between project activities & time.
To show the multiple project activities on one chart.
To provide a simple & easy to understand representation of project scheduling.
WHEN THEY ARE USED?
 Identifying and planning activities and their expected durations.
 Monitoring and tracking the progress.
 Identifying issues that can delay the project.
 Serve as communication tools by showing the team the progress they are
making.
 Keeping management updated on project progress. 
NEED FOR A GANTT CHART
Avoid completion confusion
Keep everyone on the same page
Understand task relationships
Effectively allocate resources
Get a handle on the future
ELEMENTS OF GANTT CHART
 Task list: Runs vertically down the left of the Gantt chart to describe project work and may be
organized into groups and subgroups
 Timeline: Runs horizontally across the top of the Gantt chart and shows months, weeks, days,
and years
 Dateline: A vertical line that highlights the current date on the Gantt chart
 Bars: Horizontal markers on the right side of the Gantt chart that represent tasks and show
progress, duration, and start and end dates
PROCESS Identify the
purpose

Add milestone Define the

markers project timeline

Break the
project down
Define the
into
critical path
manageable
pieces
Break the
project down
into
manageable
pieces
 1. Identify the Purpose
It is helpful to first decide whether this is a project or a process, because
diagramming a process might work better with a flow chart.

 2. Define the Project Timeline

Decide how to divide the increments of time for the duration of the project.
Each one should have a start date and end date.
 3. Break the Project Down into Manageable Pieces
Divide the project into major components, then tasks and subtasks. Continue
breaking them down until they are each straight forward tasks. They should be
of short enough duration that timeframes can be accurately estimated.

 4. Create Progress Bars

The next step is to create a progress bar for each task. A progress bar is
simply a horizontal bar that should be in line with the task name it represents
and should begin beneath its start date and end beneath its end date.
 5. Define the Critical Path
It is a method of looking at all of the activities in the Gantt chart, considering
the timing and dependent relationships of each, and calculating the longest path
from start to completion of the project.

 6. Add Milestone Markers

Choose a symbol to represent milestones, that is, major events that either
have a large part in the process or must be completed before progress can
continue. Place them on the chart beneath the date or time when they occur.
STEPS IN CREATING A GANTT
CHART
 Determine Project start date and deadline.
 Gather all information surrounding the list of activities within a project – the
Work Breakdown Structure may be useful for this.
 Determine how long each activity will take.
 Evaluate what activities are dependent on others.
 Create Graph shell including the timeline and list of activities.
 Using either Forward Scheduling or Backward Scheduling, Begin to add bars
ensuring to include dependencies and the full duration for each activity.
A MODIFIED GANTT CHART FOR USE
IN NURSING ADMINISTRATION
 The 5 major activities that the nurse administrator has identified are segments
of a total program or project. It could be applied to a project such as
implementing a modality of primary nursing or implementing case
management.
COMPONENTS OF GANTT
CHART
 The activities (What?).
 The duration of activities (When?).
 The responsible person or team for completing each of them (Who?).
 The order in which they will be accomplished. 
WHAT CAN BE SEEN IN
GANTT CHART
 The needed resources.
 The cost estimates.
 The key project milestones.
 The dependencies between activities
 The critical paths
 The progress and status of activities.
 The progress and status of the project as a whole.
A detailed gantt chart can answer
the following questions:
 What are the activities that must be accomplished?
 In what order?
 How long should they take?
 Which activities are on time and which are no?
 Who should do them?
 What are the needed resources?
 What are the key stages and milestones?
 What are the relationships between the various activities (sequential or simultaneous)?
 What is the percentage of completion?
BENEFITS: 
 A simple way to schedule your activities.
 Allow to see how your project is performing at a glance.
 Allow to focus efforts and reacting quickly to unexpected situations.
 Allow you to communicate progress and issues as they arise.
 Help determining the needed resources. 
ADVANTAGES AND DISADVANTAGES
OF A GANTT CHART
ADVANTAGES DISADVANTAGES

 It helps in planning and monitoring  In these charts, it is very necessary to keep

the work of project. on updating the charts, in order to keep it
in current form.
 Time is explicitly expressed in the  The chart is not able to directly reveal the
chart. costs of the alternate loadings.
 All tasks are visibly at a glance in  These charts also do not consider the
relation to other. varying processing times among work
centers.
 Deadlines are depicted in the chart.
 Inability to include certain constraints like
time, scope, and costs.
MANAGEMENT
BY OBJECTIVES
(MBO)
INTRODUCTION
 The term "management by objectives" was first popularized by Peter Drucker
in his 1954 book The Practice of Management. The essence of MBO is
participative goal setting, choosing course of actions and decision making. An
important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set.
 Management by objectives (MBO) is a process whereby superiors &
subordinates jointly identify the common objectives, set the results that should
be achieved by subordinates, asses the contribution of each individual, and
integrate individuals with the organization so as to make best use of
organizational resources.
DEFINITION
  MBO is "a process whereby superior and subordinate managers of an
Organization jointly define its common goals, define each individual's major
areas of responsibility in terms Of results expected of him and use these measures
as guides for operating the unit and assessing the contribution of each of its
members."
-George Odiorne
  MBO is "a dynamic system which seeks to integrate the company's needs to
clarify and achieve its profits and growth goals with the manager's need to
contribute and develop himself. It is a demanding and rewarding style of
managing a business."
-John Humble
OBJECTIVES OF MBO
 To measure and judge performance.
 To relate individual performance to organizational goals.
 To clarify both the job to be done and the expectations of accomplishment.
 To foster the increasing competence and growth of these subordinates.
 To enhance communication between superior and subordinates.
 To serve as a basis for judgments about salary and promotion.
 To stimulate the subordinates motivation and
 To serve as a device for organizational control and integration.
 The basic emphasis of MBO is on objectives. MBO is also concerned with
determining what these results & resources should be.
 The MBO is characterized by the participation concerned managers in
objective setting, the performance reviews, and his performance.
 Periodic review of performance is an important feature of MBO.
 Objectives in MBO provide guidelines for appropriate systems procedures.
CHARACTERISTICS OF MBO
 MBO is an approach & philosophy to management & not merely a technique.
 MBO is likely to affect every management technique. MBO employs several
technique but it is not merely the sum total of these techniques. It is a way of
thinking about management.
 MBO is bound to have some relationship with every management technique. It
provides the stimulus for the introduction of new techniques of management &
enhances the relevance & utility of the existing ones.
MBO STRATEGY:
  • All individuals within an organization are assigned a special set of objectives that they try to
reach during a normal operating period.
 Performance reviews are conducted periodically to determine how close individuals are to
attaining their objectives.
 Rewards are given to individuals on the basis of how close they come to reaching their goals.
PRINCIPLES OF MBO 
 Cascading of organizational vision, goals and objectives
 Specific objectives for each member
 Participative decision making
 Explicit time period
 Performance evaluation and feedback
FEATURES OF MBO
 • Superior-subordinate participation
 Joint goal-setting
 Clarity of goals
 Better communication and Coordination
 Joint decision on methodology
 Makes way to attain maximum result
 Support from superior
HIERARCHY OF OBJECTIVES
STEPS IN THE PROCESS OF
MBO
 1. Setting of Organizational Purpose and Objectives
 2. Identify the Key Result Areas (KRAs)
 3. Establishment of the objectives of the supervision
 4. Recommending objectives for the subordinates by the superiors.
 5. Setting subordinates objectives
 6. Periodic review of the performance of the subordinates.
 7. Review of the performance by the superiors.
 8. Final review of performance by the superiors.
 9. Performance appraisal by superiors.
 10. Providing feedback to the top level.
ACCORDING TO
PETER DRUCKER
ELEMENTS OF MBO
Goal orientation
FEATURES OF MBO Participation

Key result areas

Systems approach

Optimization of resources

Simplicity and dynamism

Operational

Multipleaccountability

Comprehensive
DOMAINS AND LEVELS OF
MBO
 Objectives can be set in all domains of activities (production, marketing, services,
sales, human resources, finance, information systems etc.). Some objectives are
collective, for a whole department or the whole company, others can be
individualized. Managers must determine the mission and the strategic goals of the
enterprise.
 The goals set by top-level managers are based on an analysis of what can and should
be accomplished by the organization within a specific period of time. The functions
of these managers can be centralized by appointing a projects manager who can
monitor and control activities of the various departments. If this cannot be done or is
not desirable, each manager’s contributions to the organizational goal should be
clearly spelt out.
PRE-REQUISITES FOR
INSTALLING MBO PROGRAM
 Purpose of MBO
 Top management support
 Training for MBO
 Precise and well defined
 Consistent and have values of the organization
 Participation
 Feedback for self-direction & self-control
 Mutually agreed by the manager and the employee
 Time bound and emphasize on team based results
 Other factors:
a) Implementing MBO at lower levels
b) MBO & Salary Decision
c) Conflicting objectives.
BENEFITS OF MBO
 Better management of organization
a) Clarity of objectives
b) Role clarity
c) Periodic feedback of performance.
d) Participation by managers in the management process
e) Realization that there is always scope for improvement of performance in
every situation.
 Clarity in organizational action
 Personnel satisfaction
 Basis for organizational change.
LIMITATIONS OF MBO
Time and cost

Failure to teach MBO philosophy

Problems in objective setting

Emphasis on short- term objectives

Inflexibility

Frustration
HOW TO MAKE MBO
EFFECTIVE?
 Support from all.
 Acceptance of MBO programme by managers
 Training of managers
 Purpose
 Organizational commitment
 Allocation of adequate time and resources
 Provision of uninterrupted information feedback
 Politics
 participation
APPLICATION OF MBO IN
NURSING
  It measures and judge performance
 It correlates individual performance to organizational goals.
 It clarifies the job responsibility expected from the staff
 It fosters the increasing competence and growth of the subordinates
 It provides a data base for estimating the salary and promotion
 It stimulate subordinate’s motivation
 It help in organizational work control and integrating.
THANK YOU!!