A Cost Control Extension of the PERT System

Abstract

The anticipated total cost of a complex project is placed on a simple statistical quality control basis, through a natural extension of the PERT system of management control. The method is designed to provide management with the earliest possible warning of a potential budget overrun, consistent with the uncertainties inherent in the basic data. The procedure, when applicable, can readily be made to augment standard PERT programs, thus providing an integrated package for the simultaneous (probabilistic) control of project time and project cost.