# Program Evaluation Review Technique (PERT) Chart Explained

![PERT Chart](https://www.investopedia.com/thmb/zyIVGhLkuLqyJDKheAFryvDKwq0=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/pert-chart-final-38fc8f357f964995ba958f91a722c926.jpg)

*— Zoe Hansen / Investopedia*

> **Definition**
>
> A program evaluation review technique (PERT) chart is a graphical representation of a project's timeline that displays all of the individual tasks necessary to complete the project.

## What Is a Program Evaluation Review Technique (PERT) Chart?

A program evaluation review technique (PERT) chart is a [project management](https://www.investopedia.com/terms/p/project-management.asp) tool that allows users to map out a project's timeline and itemize individual tasks. A PERT chart allows users to communicate project instructions as well as set schedules and timelines.  

### Key Takeaways

*   A PERT chart uses circles or rectangles (called nodes) to represent project events or milestones. These nodes are linked by vectors, or lines, that represent various tasks and their dependencies.
*   A PERT chart allows managers to evaluate the time and resources necessary to manage a project.
*   You can make a PERT chart using various types of software, including Microsoft Excel.
*   PERT charts were first created by the U.S. Navy's Special Projects Office in the 1950s to guide the Polaris nuclear submarine project.

## How Program Evaluation Review Technique (PERT) Charts Work

A PERT chart uses nodes (circles or rectangles) to represent project events or milestones.

The nodes are linked by vectors (lines) that represent various tasks. Dependent tasks are items that must be performed in a specific manner. For example, if an arrow is drawn from task 1 to task 2 on a PERT chart, task 1 must be completed before work on task 2 begins.

Items at the same stage of production but on different task lines within a project are referred to as parallel tasks. They're independent of each other and occur at the same time.

A well-constructed PERT chart looks like this.  

![Image](https://www.investopedia.com/thmb/zV2xdXBcD8n7CeTRiR17QsiOJBk=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/dotdash_Final_Program_Evaluation_Review_Technique_PERT_Chart_Oct_2020-01-d5cc04b8ad704760be3636dfabe55aa5.jpg)

**

A project manager creates a PERT chart in order to analyze all of a project's tasks while estimating the amount of time required to complete each one. Using this information, the project manager can estimate the minimum amount of time required to complete the entire project.

This information also helps the manager develop a [project budget](https://www.investopedia.com/terms/b/budget.asp) and determine the resources needed to accomplish the project.

> **Important**
>
> A PERT chart may make it easier to see and track a project's critical path. The critical path is the minimum time it will take to complete a project, based on the longest path from start to finish.

## How to Interpret a PERT Chart

A PERT chart is a visual representation of a series of events that must occur within the [scope](https://www.investopedia.com/terms/s/scope.asp) of a project’s lifetime. The direction of the arrows indicates the flow and sequence of events required.

Dotted activity lines represent dummy activities. These are items that are located on another PERT path. Numbers and time allotments are assigned and shown inside each vector.

These charts have their distinct definitions and terms, the most important of which is anticipating how long it will take to finalize a project:

*   The optimistic time refers to the shortest duration
*   The pessimistic time is the longest it might take
*   The most likely time indicates a reasonable estimate of the best-case scenario
*   The expected time accounts for problems and obstacles

> **Fast Fact**
>
> A PERT chart is similar to a critical path analysis, which is another method that project managers use to chart tasks in a project. The main difference between the two is that a PERT chart uses various time frames and probability terms when estimating each project stage.

## Advantages and Disadvantages of PERT Charts

As a project management tool, PERT charts have distinct advantages and disadvantages.

### Advantages

A PERT chart allows a manager to evaluate the time and resources necessary to complete a project. It also allows the manager to track [required assets](https://www.investopedia.com/terms/c/core-assets.asp) during any stage of production in the course of the project.

PERT analysis incorporates data and information supplied by a number of departments. This combining of information encourages department responsibility and identifies all responsible parties across the organization.

It also improves communication during the project and it allows an organization to commit to projects that are relevant to its strategic positioning.

PERT charts are useful input for [what-if analyses](https://www.investopedia.com/terms/s/sensitivityanalysis.asp). Understanding the possibilities concerning the flow of project resources and milestones allows management to achieve the most efficient and useful project path.

### Disadvantages

The information that goes into a PERT chart can be highly subjective. They may include unreliable data or unreasonable estimates for cost or time.

PERT charts are deadline-focused and might not fully communicate the [financial positioning](https://www.investopedia.com/articles/fundamental/04/063004.asp) of a project.

Creating a PERT chart is labor-intensive, and maintaining and updating the information requires additional time and resources. Continual review of the information provided, as well as the prospective positioning of the project, is required for a PERT chart to be of value.

Pros

*   Managers can evaluate time and resources to complete project
    
*   Assets required can be tracked during the course of project
    
*   Incorporates data and information from all departments
    
*   Improves communication
    
*   Useful input for what-if analyses
    

Cons

*   May include unreliable data or unreasonable estimates
    
*   May not fully communicate project's financial positioning
    
*   Needs a lot of time, labor, and project positioning
    

## PERT Chart vs. Gantt Chart

The [Gantt chart](https://www.investopedia.com/terms/g/gantt-chart.asp) goes back even further than the PERT chart. American mechanical engineer Henry Gantt designed it sometime in the second decade of the 20th century. It remains the most widely used project management chart.

Like the PERT chart, the Gantt chart is a graphical depiction of a project timeline. Presented as a horizontal bar chart, it records the start and completion dates of each element of a project and indicates their interdependencies. The two charts are used in similar ways:

*   Both are used to define all of the key tasks that must occur to get a project completed
*   Both are useful in determining the time, money, and resources needed
*   Both can be used to monitor a project's progress to completion

Early versions of the Gantt chart did not show dependencies. That is, it didn't indicate where a delay in the completion of one task could hold up the start of another task, potentially throwing a whole project off schedule. Later versions of the chart added this feature.  

> **Fast Fact**
>
> Although it may be difficult to interpret, the PERT chart is often preferred to the Gantt chart as a project management tool because it identifies task dependencies. In some cases, project managers may use a PERT chart as part of the planning stage of a project and a Gantt chart to monitor its execution.

## Example of PERT Chart

PERT charts were first created by the U.S. Navy's Special Projects Office in the 1950s to guide the Polaris Fleet Ballistic Missile project. Using the PERT model, Navy project managers were able to:

*   Evaluate the progress of their projects
*   Determine the validity of their schedules
*   Estimate the effects of proposed changes to the established plans

The success of this initial use of PERT charts has caused them to be used ever since in many industries.

## What Are the Main Components of a PERT Chart?

A PERT chart displays all of the key deliverables necessary to complete a project. It indicates the amount of time and resources needed to perform each task and the person or department responsible for each. The key deliverables or tasks are displayed with arrows that indicate the order in which each must be completed, and the dependencies among them.

## How Can I Create a PERT Chart?

[Microsoft Excel](https://www.investopedia.com/articles/personal-finance/032415/importance-excel-business.asp) can be used to create a PERT chart. Custom software with ready-made templates, such as Lucidchart, also are available.

## Why Would I Use a PERT Chart Instead of a Gantt Chart?

A PERT chart requires a project manager to think through three possible timelines: Optimistic time is the shortest possible route to completion. Pessimistic time is the longest it might take if everything goes wrong. The most likely time is a reasonable estimate of the best-case scenario.

From the outset, the project manager has defined the ideal outcome of a project but also identified the possible barriers to achieving that outcome.

## The Bottom Line

Project management can be a very daunting and challenging task. But there are tools that managers can use to help make the process go a little smoother. The PERT chart can help project managers visually map out the project's timeline by highlighting all the tasks involved. It also helps managers by laying out project instructions and the timeline needed to complete each individual task. Charts can be created using specialized computer software or Microsoft Excel.

> **Article Sources**
>
> 1.  Special Projects Office Bureau of Naval Weapons Department of the Navy. "[PERT Summary Report Phase 1](https://babel.hathitrust.org/cgi/pt?id=uiug.30112008707074&view=1up&seq=5)."
>     
> 2.  Indeed. "[How To Create PERT Charts in Excel (With Tips and FAQ)](https://www.indeed.com/career-advice/career-development/pert-charts-in-excel)."
>     
> 3.  Malcolm, D.G., et al. "[Application of a Technique for Research and Development Program Evaluation](https://pubsonline.informs.org/doi/10.1287/opre.7.5.646)," _Operations Research_, vol. 7, no. 5, 1959, pp. 646-669.
>     
> 4.  Gantt Charts. "[Henry Gantt's Legacy to Management is the Gantt Chart.](https://ganttchart.com/history_of_the_gantt_chart/)"
>     
> 5.  Smart Sheet. "[PERT Chart vs. Gantt Chart](https://www.smartsheet.com/content/pert-vs-gantt)."