NWU Institutional Repository

Die toepassing van 'n PERT koste-analise met die konstruksie van 'n staaloond : 'n gevallestudie

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North-West University (South Africa)

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The PERT time technique has a very wide field of application, but the use of the PERT cost technique is very often neglected, especially in smaller industrial. construction projects. This results in costs running unnecessarily high due to bad planning. Cash flow presents another problem which can be eliminated by good planning - using the PERT-system. Starting with the ordinary critical path diagram derived from the basic time estimates, an optimum cost schedule can be prepared. This can be done by analysing every activity in the construction project and finding the cheapest way in which it can be done. This "cheapest way of doing the job" or the lov1est cost way, must of course take into account both direct and indirect costs. By using these optimum costs, a new construction diagram can be drawn up to indicate the schedule according to which the project should be completed, involving the lov1est total cost. An additional benefit of this analysis of costs for each activity, is that a figure becomes available which indicates the cost rise involved in shortening activities on the critical path by any fraction . Out of the analysis of the activities combined with the terms of payment agreed on with each contractor individually, an estimate can be made of the cash flow during the project, which serves as a programme for management in finding the funds at the right time. By using the PERT cost technique together with the PERT time technique, it is quite easy for management to get a complete set of plans of how long the project is going to take, what it will cost to shorten any part of the project, what the total cost of the project should be, and at what rate cash will have to made available .

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MBA, North-West University, Potchefstroom Campus

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