APPLICATION OF PERT IN PROJECTS
ADVANTAGES:
- Planning,
- Visibility,
- Uncertainties,
- Facts for Decision making,
- Reporting,
- Time-net work analysis
REQUIREMENTS:
- WBS,
- Sequencing
- Time to estimate
- Critical and Slack times
CONCEPTS:
- WBS
- Net work
- Slack time
- Dummy activity
- Estimation of Project time
- Crashing
PROJECT APPRAISAL:
1.PAY BACK PERIOD: The cumulative net cash flow equals the initial investment made.
2.NET PRESENT VALUE: PV=P/{1+(r/100)n}, after n number of years.
3 INTERNAL RATE OF RETURN
