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Iqtf&blOlfiCt^ Schedule, Cost, and Profit Control with PERT A Comprehensive Guide for Program Management ROBERT W: MILLER Director of Management Sciences Raytheon Company Lexington, Massachusetts McGRAW-HILL BOOK COMPANY Generated for Christie, Christina A. (University of California, Los Angeles) on 2012-02-25 10:27 GMT / http://hdl.handle.net/2027/mdp.39015026506702 Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google New York San Francisco Toronto London E.ngin. Librcry SCHEDULE, COST, AND PROFIT CONTROL WITH PERT Copyright © 1963 by McGraw-Hill, Inc. All Rights Reserved. Printed in the United States of America. This book, or parts thereof, may not be reproduced in any form without permission of the publishers. Library of Congress Catalog Card Number 63-22125 41994 Generated for Christie, Christina A. (University of California, Los Angeles) on 2012-02-25 10:27 GMT / http://hdl.handle.net/2027/mdp.39015026506702 Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google II Generated for Christie, Christina A. (University of California, Los Angeles) on 2012-02-25 10:27 GMT / http://hdl.handle.net/2027/mdp.39015026506702 Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google . To Marie-Jeanne, Philip, and Stephen Generated for Christie, Christina A. (University of California, Los Angeles) on 2012-02-25 10:27 GMT / http://hdl.handle.net/2027/mdp.39015026506702 Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google Preface The reader may ask: "Why a book entitled Schedule, Cost, and Profit Control with PERT? Isn't PERT (Program Evalu- ation and Review Technique) the name of a scheduling system designed for government programs, which is fairly straightfor- ward in concept, and which has been thoroughly documented?" By 1963 it seemed important to answer questions such as these in a book written for both top management and operating people in both commercial and government-based industries. In addition, within the worlds of government and education, it seemed clear that the significance of PERT Management Sys- tems, as they have evolved through the period of 1963, had not been fully recognized. Readers of this book will soon discover that it is indeed concerned with the problems of planning and Generated for Christie, Christina A. (University of California, Los Angeles) on 2012-02-25 10:27 GMT / http://hdl.handle.net/2027/mdp.39015026506702 Public Domain, Google-digitized / http://www.hathitrust.org/access_use#pd-google control in the three dimensions of schedule, cost, and profits, and that the basic approach is founded upon the technique of networking. The frame of reference in which PERT is best applied is quite different from the situation in which classical control methods are used. Thus the reader will find throughout the book an emphasis on the problems of program management, as distinguished from those of established functional management. Perhaps a quotation from Jay W. Forrester, in the introduction viii Preface of his volume on Industrial Dynamics, sets the theme of my book as well as it can be stated: * Until now much of management education and practice has dealt only with components. Accounting, production, market- ing, finance, human relations, and economics have been taught and practiced as if they were separate, unrelated subjects. Only in the topm