1962 Sobezak: A Lookh at Network Planning 113

CONCLIJ-SION Project organization requires a project manager with

The primary reasoln for project mnanagemenit
is to considerable role adaptability. He must balance technical
achieve some meeasure of managerial unity. There are solutions with time, cost, resource, and human factors.
four principal types of organization to achieve this He is an integrator an(d a generalist, rather than a technical
objective. specialist; and he devotes most of his management time
The project expediter achieves unity of communication, to the functions of planning and control. Both the project
the project coordinator gets unity of control, the project manager and his superiors maay need to give more emphasis
confederationl achieves uinity of direction, and project to the managemnent aspects of his job. To be anl effective
general mainagement accomplishes the ultimate unity of project manager, the technical man needs to be intellec-
command. Furthermore, project mnanagement may dis- tually sophisticated in the field of management and also
regard existing levels anid funetions in superimposing its to have an attitude which gives some priority to the
owin structure on- the existing organization. management aspects of his job.

A Look at Network Planning*

THOMAS V. SOBCZAKt, ASSOCIATE, IRE

Summary-The evolution of network planning techniques is defined as any network approach to program control in
described. The main lines of development and the variations which one path,
.
of the many possible paths, has the
. . .
around them are indicated. Those discussed include: Critical
Path, PERT, PEP, CPM, LESS, PACT, SPECTROL, and SCANS. longest lead time and is, therefore, eritieal to the comple-
A table is presented of areas within industrial or military organiza- tion of the project. "A network is a series of objects or
tions where such techniques are in operation or appear suitable terminals connected by functional or structural relations
for application. which serve a purpose; e.g., highway network or radio
broadcasting network."2 In Critical Path Plainning,
INTRODUCTION "networks are developed on the basis of concrete plans
fl HE RISE in popularity of nietwork planning resulting from detailed analysis of program requirements."
techniques has been and is being accomplished in The network "represents the total project task. Inherent
specific areas by specific groups. Few, if any, in the network are the resources required for the project."3
articles have been prepared which clearly show what is This definition indicates that any slippage in the Critical
being accomplished as an over-all development of the Path will cause a slippage of the entire program.
techniques. SECOND GENERATION TECHNIQUES
This article presents some of the variatiolns in the
strata they tend to assume. From a general base, Critical Using this definition as a guide, a survey of industry
Path Planning, the reader is led throught the evolution shows that the following applications of Critical Path
of PERT, PEP and CPM' to the more complicated Planning exists: (see Fig. 1).
systems presently being studied. 1) Program Evaluation and Review Technique: "is a
This overview is intenided so the reader may develop management control tool for defining and integrating
an awareness of the scope and amounit of effort presently what must be done to accomplish program objectives
being applied to Network Planning. on time. PERT is a statistical technique-diagnostic and
prognostic-for quaintifying knowledge about the un-
CRITICAL PATH PLANNING certainiities faced in completing intellectual and physical
activities essential for timely achievement of program
Manynetwork techniques have been developed. It can objectives and deadlines. It is a technique for focusing
be safely assumed that they have a common base. This attentionl on pDroblems and their danger
base, Critical *
Path .
Planning,
*
provides the roots for man ~~~~~~~~~managrement
maaemn ateto on prbesadterdne
brnhe odelpmn Crtia . PahPann. a signals that require remedial decisions, and on areas of
effort for which trade-offs in time, resources, or technical
* Received August 19, 1961. "Program Evaluation and Review Technique," Operations
t Merritt-Cha.pman and Scott Corporation, New- York, N. Y. Research Inc., Inst. for Management Dynamics, Silver Spring,
1PERT-Program DEvaluation anld Review Tlechnique. Md., p. 36; 1961.
PEP-Prograrn Evaluation Procedure. 3"PERT/PEP-A D)ynamic Project MIethod,"
Control IBMI-
CPM-C>ritical Path MIethod. FSD Space Guidance Center, Oswego, N. Y., p. 25.
 114 IRE TRANSACTIONS ON ENGINEERING MANAGEMENT September

OTHER PERTCO
ADVANCED PERT/COST
CRITICAL PERT II
PATH WSPACS
SYSTEMS RAMPS

LESS
PHASE
LEAST I
COST
ESTIMATING
PROGRAM AND
EVALUATION SCHEDULING
REVIEW (LESS)
TECHNIQUE MAN
SCHEDULING
TECHNIQUES

CRITICAL
PATH
PLANNING
I CPM PRODUCTION
________________________ _______________________COST ANALYSIS

____ CONTROL
TECHNIQUES

CRITICAL CPM
METHOD MANPOWER

CPM 1 SCANS
RESOURCES ISCANS PHASE

EVOLUTION OF CRITICAL PATH PLANNING

Fig. 1
performance might improve capacity to meet major standardize the Critical Path Planning applications
objectives and deadlines."4 presently in use by Government Contract Industries.
2) Program Evaluation Procedure: "is a management The Air Force has added the dimension of resource cost
tool which the program manager can use not only for the including manpower to its PERT. Recent PERT/COST
purpose of obtaining better planning for the many conferences sponsored by Air Force Systems Command
detailed steps involved in a program, but which also generated new thinking on this area. Prime contributions
has the inherent benefit of determining whether or not were from Douglas Aircraft, Boeing, ORI & SDC.
the complete program or elements thereof are likely to 3) Critical Path Mlethod: "plans a project first on the
meet pre-established schedule dates. PEP is the Air Force basis of detailed technological requirements and then
adaptation of the Navy PERT, but essentially they computes sets of detailed schedules which depict the
employ the same philosophy and techniques. PEP was possible variations in completion time and cost. It was
confined to the time dimension, but it was contemplated devised with the following advantages: It is simple in
to eventually extend the procedure to include such concept. It makes use of all the detailed information
resources as manpower, cost and facilities."5 The Air about the hundreds of activities involved in a project
Force has discarded the "PEP" term and acronym without over-burdening the persons involved in the
in favor of "PERT".6 This action was an attempt to planning. It minimizes the possibilities for error and
4"Progress reporting in the special projects office for the fleet assembles all detailed information into a logically sound
ballistic missile program," Navy Management Rev.; April, 1959. ,,plan. Itaksioacuncndinsotirtlsbjt
5"Program evaluation procedure," in "Technicians Handbook,"ttksit con odtosntdrcl ujc
Plans and Program Office, Directorate of Systems Managemlent, to control, such as the delivery of basic data, materials
WADD, WPAFB, Dayton, Ohio, p. 1. and equipment or partial completion requirements. It sets
6Letter from F,. T. Alsaker, Lockheed Aircraft Corp., Georgia
Div., Atlanta, Ga.; dated June 13, 1961. up communications patterns and provides management
1962 Sobezak: A Look at Network Planning 115
with alternative strategies for determining what best c) Phase III-Schedule Compression at Minimum
course of action to take."7 Cost. (Applies the theory of minimax.)
The LESS technique is currently a stepping stone to two
THE THIRD GENERATION-A MOVE TO SOPHISTICATION new concepts, LESS phase II and Manscheduling.
The definition of Critical Path Planning is the basis 2) Production Analysis Control Techniqute (PACT):
for two schools of development: "The basic concept is to forecast production slippages in
The first and simplest is the deterministic school of ample time to take corrective action. It is designed as a
development. Proponents of this approach use Critical decision-making tool to permit management to make the
Path Method. "Making this kind of model of the whole necessary decisions to keep deliveries on schedule, rather
project is in itself a big advance over conventional than as a diagnostic tool to aid in determining why
scheduling gimmicks, such as bar charts, which tell you schedules have slipped after the fact."l3 PACT is a follow
little about the interrelationships of operations and on to PERT. The effort was dropped by the Navy in favor
their effect on labor, tool, and material needs. But, the of the noncomputer technique "Line of Balance."
construction of a network of arrows is only the beginning. 3) SPECTROL: is a computerized network-type
Now you inject the elements of time and cost."8 management control system, using a milestone concept
"Your prime purpose in this study is to reduce the for control points. The system provides the normal
time taken by the project as much as costs will permit. information required by management for scheduling
So, you go through your diagram, listing the time each planning, evaluation, cost and control. In addition,
operation normally takes and its cost in labor and machine it provides the means for modifying plans and observing
use. Since you're trying to cut the time, since a speedup the results of this modification before implementation
would be more outlay for labor and machinery, you call of the Plan.
current costs the minimum cost."9 4) SCANS: is a coined word derived from Scheduling,
By using the "minimax" theory, you determine the Control, and Automation by Network Systems. The
best way to complete the job. The "minimax" theory is TABLE I
the development of a situation of minimum input for FU-NCTIONS BASIC TO GETTING WORK DONE
development of maximum output, (Gaming theory).
The second group constitutes the probablistic school INDUSTRY MILITARY
of development. Proponents of this method express "the
time needed to accomplish a task in terms of likelihood A. a & Pmn A. Research & Development
rather than positive assurance. Likelihood, in turn, can be * 1. Research (PERT-CPM) * 1. Research (PERT-CPM)
expressed in termsexpressed
of statistical probability
~~~~y(PERT-CPM)
~ ~ ~ ~ and distribu- 2. Development * 2. Development
(PEIRT-CPM)
tion curves. By probability, therefore, it is possible to t 3. ProduiCt Engineering t 3. Weapon Engineering
measure the risk in a schedule and to determine tradeoffs B. Pr(dCPMi)n (P1'eRT)
to summarize this risk."'0
The probablistic school is experimenting with such *t *1.2.1 Plant Pnt Engineering
IndustrialEngineering
Engineering
t 1.1. CiVil Engineering
tt 29. Clineering (P(CPM)
Maintenance (PERT) M)
advanced techniques as: (CPM)
3. Purchasing t 3. Procurement
1) Lease Cost Estimating and Scheduling (Less): resolves (PERT-CPM)
the problem, "At what time and how fast should each 4. Production Planning t 4. Supply
(CPM-PERT
and every job be done so as to complete the project at a t 5. Manufacturing (PACT) t 5. Manufacturing Mgmt.
minimum cost or in a specified time?" into three separate * 6lG. . (PERT)
but related phases." Quiality Control16
C. Marketing
6. Transportation
C. Operations
a) Phase I-Arrow Diagram Node Numbering.'2 (This is * 1. Marketing t 1. Intelligence
the development of the network.) t 2. Advertising * 2. Plans and Programs
b) Phase II-Scheduling Phase. (Calculates the earliest 3. Sales Promotion
(PERT)
t 3. Military Systems
and latest times that any job can start and finish t 4. Sales Planning (PERT)
so as to achieve the minimum project duration t 5. Sales Operations (PERT)
6. Physical Distribution
implied by all stated job durations.) D. Finance and Control D. Coinptroller
1. Finance * 1. Accounting and Finance
J. E. Kelly and M. R. Walker, "Critical Path Planning
t 2. Control (PERT-CPM) * 2. Budget & Control
(PERT)
and Scheduling, An Introduction," Mauchly Associates, Inc., * 3. Management Analysis
Ambler, Pa., p. 2. (PERT)
8 Ibid., pp. 11-15, for a complete explanation of this process. t 4. Financial Data & Service
9'"Better plans come from study of anatomy of an engineering______________________________
job," Bu.siness Week, March 21 1959.
"0 "PERT/PEP--A Dv7namic Project Control MTethod," IBM- * Functions to which CPP has been successfully applied.
FSD Space Guidance Center, Oswegfo, N. Y., p. 37. t Functions which warrant application of CPP.
11 F. Becker, Jr., "A Discussion of Problems in LESS," IBM
Applied Science, Dallas, Texas. The LESS Technique is now 13 "Production Analysis Control Technique," Special Projects
available in either a probabilistic or determlinistic format depend- Office, Program Evaluation Branch, Department of the Navy,
ing on the computer program requested from lBM. Washington, D. C.; Feb. 8, 1961.
12 F. Becker, Jr., "A 650 Program for Proper Arrow Diagram 14 "Progress Report, Phase II SPECTROL," SD)C Field Note
Node Numbering," IBM Applied Science, Dallas, Texas. No. 3783.
116 IRE TRA NSA CTIONS ON ENGINEERING MANAGEMENT September
SCANS system was designed to provide a management It should be noted that the discussion and examples
control system which would integrate scheduling, costing, given above are only typical of the many approaches,
and manpower loading in a meaningful manner, one that both military and industrial, which are currently under
provides for tradeoffs between functions.15 SCANS is an development. To speak of PERTCO, PERTCO I,
outgrowth of the SPECTROL study. PERT II, WSPACS, etc., would do no more than repeat
At present, studies are in progress to sophisticate, the sequence concerning SCANS. Basically the more
if this is possible, both the LESS and SCANS technique. advanced systems are alike. More likely thaii not, the
The studies include: final system developed will be the same for all users;
1l) A Network Flow Computation for Project Cost only the acronyms will differ.
Curves dated March 18, 1960 CONCLUSION
Author(s): I. Rt. Fulkerson In order to develop a proper and adequate knowledge
Source: Division, Thle
Mathematics llvll
Fouce Altnintle T RcAND Corp.
A2) A Discussion of an Action-Planninig and Control of a the variousa CPP techniques, the writer would suggest
attendance at the training semiinars currentlv beiing
Tehiqi date Atgs 22, 96
TethniqueM. dated Augusith 22,1960administered by one of the
Management Systems
Associates,
following: Mauchly Corp.;
Autr(: E. mit .or Operations Research, Inc.,
aterials Management Inst., American -Management
Sourc ternCatnal
porationl,
M
Carlsbad, N. SI.
C lC
.&Association and C. E. I. R., Inc. Mauchly Associates tend
The following table shows activity areas within Industry toward the use of Critical Path Method. Operations Re-
and Military where Critical Path Planning applications search, Inc., MIanagement Systems Corp., MMI, and
are irn operation or are warranted for better application. AMA, and C. E. I. R., Inc., teach mainly the PERT
No mention has been made of Zeus Program Analysis concept.
(ZPA). It is the writer's understanding that this technique For those who want to get acquainted with this type
is being de-v1eloped by the Department of the Army, of information, the programs giveen by and the documents
Western Electric and Douglas. At present, information published by the Special Projects Office, Dept. of the
pertaining to this techniquie is not available. Navy, or by the Program Evaluationi Branch, Directorate
15 'The Development of SCANS" Sl)(, Field 'Note No. 4556. of Systems Management, United States Air Force. are
16 The new technique PRISM is applicable to Quality Control. adequate.

PERT-Tool for R and D Project Decision Making*

ROBERT E. THOMPSONt

Summary-The question of whether PERT is of significant
value to project managers will not be resolved until the technique
is understood to be a tool for a newly recognized function rather
than a new tool for an old function. The newly recognized function
is decision making as opposed to the old function of planning and
control. The need for the performance of the new function arises
from the dynamic and complex character of modem R and D
projects. PERT as a decision-making tool can best be understood
within the framework of the decision-making process. The decision-
making framework indicates that assumptions must continuously be
made in four areas. The information needed to develop these
assumptions constitutes the information necessary for decision
making. The information obtained by PERT provides a portion of
this information.
THE CONTROVERSY OVER PERT
W` -VITlIN- the brief but extraordinarily busy life as a tool for performing the classical functions of planning
\\V/\/of PERT sinlceS its inception inl 1958, many and control.
V billions of unkind as well as complimentary
m This is a perfectly natural way of thinking about PERT,
words~~~ ~
hav bee wrte an spkno h ujc.
A&monlgthe many positionlstaken the following are typical:
tReceived January 18, 1962; revisedl manluscript received
t Aerospace Group, General Precision, In1c., Little Falls, NT. J.
"The great benefit of PERT comes from the rigorously
disciplined thinkinig necessary to lay ouit the plan."
"PERT is simply another attempt by the customers
to get their grubby little fingers into the guts of the
t
contractor's operation." "PERT can achieve tremendous
savings in project time and money." "Detailed planning
techniques like PERT always fall of their own weight."
. t
So the contraversy rages and will continue to rage for
some time to come.
Like most raging controversies, this one continues
because not everyone looks at PERT the same way or
expects the same thilngs from it. Specifically one of the
most basic impediments to a common understanding
of the technique stems from the common view of PERT
but consider the usual meanings attached to these terms.
By planninlg we usually mean deciding which people
will do what Jobs and how much time and money they
will get with which to do the jobs. By control we mean the
process of beating on these people to make sure that each