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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
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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