Correct Answer - Option 4 : CPM
Explanation:
CPM:
(i) It stands for critical path method
(ii) It is an activity-oriented network.
(iii) It is based on the deterministic approach in which a fairely accurate calculation of time estimate can be made which is called activity duration (T). The probability of completion of an activity in time T is close to 100%.
(iv) Time and cost are related by the following curve given. From this curve optimum time is derived which results in the minimum cost.
(v) It is suitable for the repetitive type of work where time and cost can be evaluated with fair degree of accuracy.
Examples:
(i) Construction work.
(ii) Maintenance work.
(iii) Civil engineering project.
Important point:
PERT:
(i) It stands for program/project evaluation and review technique.
(ii) It is event-oriented.
(iii) It is a probabilistic approach. The probability distribution is of the type of β distribution.
(iv) Three types of time estimates are estimated on the basis of which an expected time is derived.
(v) Cost is directly proportional to time. Hence efforts are made to minimize the time to result in the minimum cost.
(vi) It is suitable for newer types of projects which have not been performed in the past and no exact assessment of time and cost are available.
