PERT Chart

AAA

DEFINITION of 'PERT Chart'

A project management tool that provides a graphical representation of a project's timeline. PERT, or Program Evaluation Review Technique, was developed by the United States Navy for the Polaris submarine missile program in the 1950s. PERT charts allow the tasks in a particular project to be analyzed, with particular attention to the time required to complete each task, and the minimum time required to finish the entire project.

INVESTOPEDIA EXPLAINS 'PERT Chart'

A PERT chart is a graph that represents all of the tasks necessary to a project's completion, and the order in which they must be completed along with the corresponding time requirements. Certain tasks are dependent on serial tasks, which must be completed in a certain sequence. Tasks that are not dependent on the completion of other tasks are called parallel or concurrent tasks and can generally be worked on simultaneously. PERT charts are preferable to Gantt charts because they more clearly identify task dependencies; however, the PERT chart is often more challenging to interpret. As such, project managers frequently employ both methodologies.

RELATED TERMS
  1. Gantt Chart

    A Gantt chart is a visual representation of a project schedule. ...
  2. Footprint Charts

    A group of charts that provide price and volume activity together ...
  3. Manufacturing Resource Planning ...

    An integrated information system used by businesses. Manufacturing ...
  4. Materials Requirement Planning ...

    One of the first software based integrated information systems ...
  5. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  6. Kagi Chart

    A type of chart developed by the Japanese in the 1870s that uses ...
Related Articles
  1. Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  2. Charts & Patterns

    The Basic Language Of Candlestick Charting

    If you want to use candlestick charting to get a sense of where a stock is headed, you need to learn how to read this unique charting language.
  3. Charts & Patterns

    Channeling: Charting A Path To Success

    Find out how to build these charts showing buy, sell, stop-loss and take-profit points, and even estimate length of trade.
  4. Active Trading

    Point And Figure Charting Basics

    Learn how to construct and read these price charts designed to highlight entry and exit points for longer-term positions.
  5. Active Trading

    An Introduction To The Relative Strength Index

    Learn the difference between relative strength and the relative strength index, a frequently used technical analysis oscillator.
  6. Forex Education

    An Introduction To Ichimoku Charts In Forex Trading

    Discover how this high-flying application can be used in forex trading.
  7. Forex Education

    Candlestick Charting: Perfecting The Art

    Take a look at continuation patterns and how they can confirm or deny trends.
  8. Forex Education

    Finding Market Movement With The ADX

    Take a closer look at this indicator, which refines your insight into the strength of a prevailing trend.
  9. Trading Strategies

    Find Turning Points With Single-Day Patterns

    On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.
  10. Technical Indicators

    Introduction To The Parabolic SAR

    Take a closer look at this indicator, which during a trending period, is a very useful and accurate tool.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center