Presentation on theme: "Principles of Management"— Presentation transcript:
1Principles of Management P C Tripathi & P N Reddy
2Course contains Part - 1 Management Planning & control Co-ordination And DelegationDecision making – Centralization – DecentralizationProgrammed evaluation and review technique (PERT)Management by Objectives (MBO)Motivation TheoryPublic RelationConflict Management
3Course contains Part – 2 Fiscal Planning Zero Based budgeting Midterm appraisalBudget estimate- Revised estimatePerformance budgetAuditCost effectivenessCost accountingCritical Pathways
5Management Definition Management is an art of getting things done through people.Management if four factors of productionMENMONEYMACHINESMATERIALS
6Management Definition Management is POSDCORBPlanningOrganizingStaffingDirectingCooperatingReportingBudgeting
7Functions of Management Planning What is to be DoneWhen it is to be doneHow it is to be doneWho is to do itEx. Taxes, Political EnvironmentPlanning must be flexible
8Functions of Management Organizing An organization is social unit,Or human grouping deliberately structured,For the purpose of attaining specific goals.Organization is rational coordination of the activities of number of people,For achievement of some common purpose or goal,Through division of labor and a hierarchy of authority and responsibility.
9Functions of Management Directing Harmony ObjectivesUnity of commandDirect supervisionEfficient communicationFollow throughMotivation
10Functions of Management Controlling Establishing standards of performance,Measuring current performance and comparing it against the established standards,Taking action to correct any performance that does not meet those standards
11Functions of Management Innovating Creating new ideasImprovement of ProductDifferent marketing strategiesInnovation in packaging, Distribution, Business models….
12PlanningPlanning is an intellectual process which requires a manager to think before acting.Planning is continuous process.Plan must be flexible.Change direction to adept to changing situationTechnology ( changing need)Market (Marketing Strategies)Finance (Obtain Fund)Personnel (Job Rotation)Organization (organizational structure )
13Planning Importance or Advantages Minimize risk and uncertaintyLeads to successFocus attention on the organization's goalsFacilitates controlTrains executives
14Planning Types Vision Mission Objectives Top of the hierarchy Dream of entrepreneurMissionUnique aim of organizationService, product, clientCultural valueObjectivesGoals & AimUse in Dept…Purpose
16Planning ProcessEstablishing variable goals or Set of goals to be AchievedEstablishing planning PremisesInternal and External PremisesTangible and Intangible PremisesControllable and non controllable Premises
17Planning Process Deciding the planning Period Lead time in Product DevelopmentCapital Investment & Payback PeriodFinding Alternative course of ActionEvaluating & Selecting a course of actionDeveloping derivative PlanEstablishing Action PlanMeasuring and Controlling the Process
18Controlling Need For Controlling To Measure ProgressTo Uncover DeviationChangeComplexityMistakeDelegationTo Indicate corrective actionTO transmit corrective action in the Operation
19Controlling Benefits Increase Productivity Reduce defects & Mistakes Help meet deadlinesFacilitates communicationImprove safetyLowers cost, Work control
20Coordination Definition Coordination is the management of interdependence in the work situation.Interdependent efforts of individualTo attain a common goal.Ex. Hospital, Production company.
21Coordination Need Division of labor Interdependence of unit Individual interest Vs. Organization interest
22Coordination Requirement Direct contractEarly startContinuityFlexibleClear cut objectivesEffective communicationEffective leadership
23Delegation of Authority Meaning A manger can’t do all the task for the accomplishment of group goals,His capacity to do work and to take decisions is limited,Assigns some part of his work to his subordinate and also gives them authority to make decision in their duties,Down word pushing of authority to make decisions is known as Delegation of Authority.
24Delegation of Authority Definition If the manager requires his subordinate to perform the work, he must entrust him with part of the rights and powers which he otherwise would have to exercise himself that work done.Louis A. Allen
25Advantages of Delegation Relieves the manager from heavy workloadLeads to better decisionsSpeeds up decision – makingTrain subordinateCreate formal Organization structure
26Barriers to effective Delegation Fear of loss of power‘’ I can do it better my self’’ FallacyLack of confidence in subordinatesFear of being exposedDifficulty in briefing/ Over confidenceNot proper control
27DecentralizationEvery organization has to decide as to how much decision – making authority should be centralized, in hands of the chief executive and how much should be distributed among the managers at lower levels.Centralization –In centralization set up, the decision- making authority is contracted in a few hands at the top. In decentralization set up, it is delegated to the levels where the work is to be performed.
28Decentralization Criteria The Greater is the number of decisions made at lower levels.The more important are the decisions made at lower levelThe more is the number of area in which decisions can be made at lower levels
29Decision MakingDecision making is the Process of Decision making that objectives and polices are laid down and the manager decides many things such as,What to produceWhat to sellWhere…,when…..,How……..,
30Decision Making Types Programmed and Non programmed Decisions Major and minor DecisionsRouting and Strategic DecisionsIndividual and Group DecisionSimple and complex Decisions
31Decision Making Process Recognizing the problemDeciding priorities among problemsDiagnosing the ProblemDeveloping alternative solution or course of actionMeasuring and comparing the consequences of alternative solutionConverting the decision in to effective actionFollow up
32Philosophies of administration Cost effectivenessExecution and control of work plansDelegation of responsibilityHuman relations and good moraleEffective communicationFlexibility in certain situation
33comparison between management and administration (Definition) Art of getting things done through others by directing their efforts towards achievement of pre-determined goals.(Nature) executing function, doing function(Scope) Decisions within the framework set by the administration.Formulation of broad objectives, plans & policies.decision-making function, thinking functionMajor decisions of an enterprise as a whole.
34comparison between management and administration (Authority) Middle level activity(Status) Group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise.(Usage)Used in business enterprises.Top level activityConsists of owners who invest capital in and receive profits from an enterprise.Popular with government, military, educational, and religious organizations.
35comparison between management and administration (Influence) Decisions are influenced by the values, opinions, beliefs and decisions of the managers.(Main Function) Motivating and controllingAbilities)Handles the employees.Influenced by public opinion, government policies, customs etc.Planning and organizingHandles the business aspects such as finance.
36Principles of administration Henri Fayola Division of workPrinciple of Authority and responsibilityPrinciple of DisciplinePrinciple of unity of commandUnity of directionSubordination of individual interest to general interestPrinciple of centralization and decentralizationPrinciple of scalar chain
37Principles of administration Henri Fayola Principle of OrderPrinciple of EquityStability of tenure of personalPrinciple of initiativePrinciple of Esprit de corps
38Program evaluation and review technique (PERT) PERT, a project is viewed as a total system and consisting of setting up of a schedule of dates for various stages and exercise of management control, mainly through project status reports on this progress.Finished Product or Service desiredTime & BudgetStarting & Completion DateSequence of stepEstimated time & Cost
39PERT Process Identify the specific activities and milestone Determine the proper sequence of the activitiesConstruct a network diagramEstimate the time require for each activityDetermine the critical pathUpdate the PERT chart as the project progress
40Benefit of PERT Expected project completion time Probability of completion before a specified timeCritical path activities that directly impact the completion timeActivity star and end date
41Limitation of PERTNumbers may be only a guessActuality is different
42Gantt charts Henry L. Gantt Gantt chart depicted a series of event essential to the completion of a project or program.Controlling the productionUsed for production ActivitiesRepresent Cost, time, scope
43Process of The Gantt Chart Gather dataAnalyze dataDevelop a planImplement the planEvaluation, feedback, and modification
44Advantages They can be understood by wide audience. They define schedule activities.It is useful and valuable for small projects.
45Management by objectives (MBO) MBO is the process whereby,Superiors & subordination jointly identify the common objectives,Set the result that should be achieved by subordinates,Asses the contribution of each individual and integrate individuals with the organization,So as to make best use of organizational recourses.
46Management by objectives (MBO) Defi. MBO is comprehensive managerial system that integrate many key managerial activities in a systematic manner, consciously directed towards the effective & efficient achievement of organizational objectives.Approach & Philosophy to managementAffect every management techniqueMBO is an objectivesObjective setting & Performance review
47Objectives of MBO To measure and judgment Relate individual performance to organizational goalExpectation & accomplishmentIncrease competence & growth of subordinatesCommunication between superior & subordinateBasis of salary and Promotion
48Process of MBO Set corporate objectives Set and Align employee objectivesMonitor performanceEvaluate performanceReword employee
49MBO Advantages Disadvantages Better management of organization Clarity in organizational actionPersonnel satisfactionOrganizational changeTime & CostFailure of MBO philosophyProblems in objectives settingInflexibility
50MotivationMotivation is the action that stimulates and individual to take a course of action,Which will result in an attainment of goals,Or satisfaction of certain material or psychological needs of the individualJob performance = Ability + Motivation
53Motivation Theories Abraham Maslow Alderfer ERG Theory Herzberg two factor need TheoryMc Gregor’s Theory X and Theory Y
54Abraham Maslow (1943)Abraham Maslow theory studies of different needs of human beings for motivation.Physiological needsSafety and security needsSocial needEsteem needsNeed for self actualization
55Alderfer ERG theory E- existence Relatedness The Growth Physiological needSafety needRelatednessSocial needRelationship & loveThe GrowthSelf esteemSelf actualization
56Herzberg two factor theory (1966) Its define the satisfaction and dissatisfaction of human beings towards work.Two factor areMotivation factors : satisfaction of work, achievement , Opportunity for growth,AdvancementHygiene factors : Salary, status, working condition, job security.
57David McClelland (1961)This theory based on three factor/need of human beings. They are different at different level.Need of PowerNeed of AffiliationNeed of Achievement
58Man Gregor’s Theory X & Y Theory “Y”Do not like workAvoid the workDoing force fullyAvoid responsibilityNeed of Job security is high“ RIGHT TOCOMMAND”Physical and mental efforts at workSelf controlSelf directedCommitted to their goalsCreativity of solving Problems“PARTICIPATIVE”
59Query Solution Slack Time : Slack time is the difference between the length of time you have to finish a project and the total amount of time it will take to complete the project.
60Self Actualization By Tyler, data that support this argument are provided by a study in which employees’ willingness to engage in citizenship behavior increased following manipulations of group-based pride and respect. Results point to the productive and sustainable potential of self-actualization at a collective rather than just a personal level
61Public RelationPublic relation are knowing what the public expect and explaining how administration is meeting these desires.- John MilletPublic relation are the process where by an organization analyses the needs and desires of all interested parties in order to conduct it self more responsively towards them.- Rex Harlow
62Public Relation Essential and integrated component Public policy or ServiceBenefits for citizensBuild up image of individual or an organizationRemove misunderstandingsCreate mutual understandings
63Need of Public Relation Increased government activitiesReduce the communication GapIncreased educational standardsTo know employee reviewPublic opinion in decision
64Functions of Public Relation Relation among the two groupUnderstanding and Goodwill.Organization Policy
65Element of Public Relation Planned effort or management functionRelation between organization and publicEvaluation of public attitudes and OpinionOrganization's decision related to organization's publicExecution of an action and communication programme
66Forms of Public Relation Employee RelationsCommunity RelationGovernment RelationMedia Relation
67ConflictOrganizational conflict is a situation of closed or win-lose competition, in which parties try to keep each other form attaining their goals.Open situation (Win-Win) ApproachClose situation (Conflict)
68Levels of conflict Between Individuals, Between individuals and group, Between groups in the same organization
69Stages of Conflict Latent Conflict Perceived Conflict Felt Conflict Initial stageCauses are hidden between two partiesPerceived ConflictAware of the causeFelt ConflictParties are emotionally involvedStart feeling the conflict
70Stages of Conflict Manifest Conflict Conflict Aftermath Hostile behaviorLack of coordinationBreakdown work flowConflict AftermathConflict solutionSatisfaction of both parties
71Causes of inter group conflict Unequal or one side DependenceIncompatible performance criteria and rewordsDifficulty in apportioning credit or balanceDependence on common recoursesInformation and rumorsDifferences in personal backgroundDifference in task, time
72Management conflictManagement of conflict mean trying to find ways to balance conflict and corporation.Improve quality of decisionsEncourage Creativity and InnovationProblem SolvingSelf evaluation and change
73Method of managing conflict Stimulating conflictReducing conflictResolving conflict
74Prerequisites for successful Integration/Negotiation Relation of trustEarly attempt to resolve differencesClarity of rulesPhysical proximity ( Two Parties)Decentralized decision making and opennessObjectivitySupport from managementJoint reward and Punishment
75Fiscal PlanningFiscal planning is a very common strategy, regardless of their size it is viewed as the most appropriate and helpful ways to success a companies finances and thus plan the best course of action to take for the future.Plan regarding Revenue and expenditureClear picture for industrial finance
76BudgetingA budget may be the simple plan of ones personal finances or it may be a complex document used by large organization. It is the picture of the total operational of all the organization in monotony terms.Budget is a balance estimated expenditure and receipts for a given period of time.Heart of administrative managementReduce the wastage of finance
77Features of the budget Simple design and oriented to users Should be flexibleSynthesis of past, present the futureCoordinationComposed two segment : Revenue and ExpenditureReflect the goals and appreciationForward planningNeed a support of top managementTime Period
78Purpose of budget Provide targets for income and expenditure To coordinate the activitiesTo prepare cash flow statementFormulating future policyTo control on all activitiesA tool for communication and coordinationFinancial planning and decision makingControllable and uncontrollable cost area
79Importance of budget Planning future course of action Coordination in various departmentServes as a guide for actionHelps In decision makingHelp in projected objectivesTool for communicationIdentify problems area
80Principles of budget Provide sound financial management Focus on objectives and policesMost effective use of financeActivities planned in advanceDelegation of authority and responsibility for execution of budgetCoordinating efforts of various departmentsSetting targetsPrepare under the supervision and direction
81Steps in budgeting Collection of past data Assess success and failure of pastSetting objectives for forecast yearObjectives arranged in terms of indicationPreparation of report on expense and revenuePreparation of budget reportReview of budget reportEvaluation for modification or changeFinal preparation of budget
82Essential requisition for budget estimation ForecastingPurchase decisionsExpansion decisionAdvertisingAccountingLines of AuthorityBudget committeeForecastReportingDerivation modificationBusiness PoliciesStatistical informationPeriod of budget
83Types of budget Incremental budget Flexible budget Rollover budget Change in percentage with the change of inflationFlexible budgetRollover budgetForecast Expense and revenue more then a year(future planner)Open ended budgetSingle cost estimationActivity level in the unit
84Types of budget Fixed-ceiling budget Performance budget Fixed limit budgetPerformance budgetBased on functionProgrammed budgetBased on whole programmeProduction BudgetRevenue and Expense
85Types of budget Capital expenditure budget Zero based budget Each cost for every programEstimate both cost Old and NewSunset budgetSelf destruct in prescribed time.Or When task is completedSales budgetCash budget
86Capital and Revenue Expenditure Capital Expenditure: The expenditure incurred for acquiring a fixed assets or which results in increasing the earning capacity of the business is known as Capital Expenditure.Capital expenditure means any expenditure incurred toAcquiring the assetsImproving efficiencyPurchasing the Performance of the businessEx. Purchase of machineryFees for installation of machinery
87Capital and Revenue Expenditure Revenue Expenditure: An expenditure incurred in the course of regular business transaction of a concern are availed during the same accounting year is known as revenue expenditure.Revenue expenditure mean any expenditure incurred to maintain the assets in working condition and for the operation of the business.Ex. Repairs of furniturePainting of buildingPurchase of stationarySalaryTaxesRents….
88Distinction between Capital and Revenue Expenditure Capital ExpenditureRevenue Expenditure(Purpose) It is incurred for the purchase of fixed assets(Earning Capacity) It increases the earning capacity of the business(Periodicity of benefit) Its benefit are spread over a number of yearsIt is incurred for the maintenance of fixed assetsIt does not increase the earning capacity of the businessIts benefit is only for one accounting year
89Distinction between Capital and Revenue Expenditure Capital ExpenditureRevenue Expenditure(Placement in financial statement) it is an item of balance sheet and is shown as an asset.(Occurrence of expenditure) it is not recurring in natureIt is an item of treading and profit and loss account and is shown on the debit side of either of the two.It is usually a recurring expenditure
90Zero BudgetingZero based planning is done to shape decision about the marketing communication tools that are to be used based on the elements of the particular years situation analysis, SWOT analysis and communication objectives rather then just planning in accordance with the budget of the previous year.Decision of Marketing toolsBased on particular situation
91Step in Zero based planning Determination of the key communication problemRelate the marketing tools and finalizedCombine both the step and solve the problemsDefine other marketing communication areas along with tools
92AuditDefinition of audit is an evaluation of a person, organization, system, process enterprise, project or product.The audit term is commonly use in accounting but it also used inProject managementQuality managementWater managementEnergy conservation
93Audit DefinitionSystematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about an economic entity or event for the purpose of forming an opinion about and reporting on the degree to which the assertion confirms to an identified set of standards.
94Characteristics of Audit Vital part of accountingGaining information regarding Financial statementInclude non-financial areaSafetySecurityVerification of cost accounts and record checkingVerification of facts to ascertainAccepted standard by government bodies
95Classification of Audit Financial audit:Financial statementInformation integrity and reliabilityOperational Audit:For internal control structure in a given process or areaIntegrated audit:Combination of financial and operational auditPerforming for overall objectives
96Classification of Audit Administrative audit:Issues related with operational productivityInformation system auditSpecialized Audit:Service performed by third partiesForensic Audit:Discovering Frauds and crimeInvestigation
97General audit Procedure Understanding of the audit area/SubjectRisk assessment and general audit planDetailed audit planningPreliminary review of audit area/SubjectEvaluating audit areaCompliance testingSubstantive testingReportingFollow up
98The Typical Audit Phases Audit SubjectIdentify the areaAudit ObjectivesPurpose of the AuditObjectivesAudit ScopeIdentify specific systemFunction or unit included in reviewPre Audit planningIdentify technical skills and recoursesSources of informationFunctional flow chart, polices,standerdsLocation or facilities to be Audited
99The Typical Audit Phases Audit procedure and steps for data gatheringSelect the audit approachIdentify list of individuals to interviewObtain departmental polices,standerdsDevelop Audit tools and methodologyEvaluating TestProcess for communicationAudit Report
100Audit Risk Inherent Risk Control Risk Detection Risk Overall risk Error Exists in Material, Combine with other errorsErrors done by mistakeComplex calculationControl RiskDetection RiskMaterial errors do not exist when, in fact, they doDetections done by ability of auditorsOverall risk
101Nursing AuditAudit in nursing management is the professional evaluation of the quality of the patient care, by analyzing through all the facilities, Services, measures involved in diagnosis, treatment and other conditions and activities that affect the patients.EvaluationService, Facilities, TreatmentPatients
102Nursing AuditNursing audit reference to the assessment of the quality of clinical nursing- EllisonNursing audit is the means by which nurses themselves can defines standards from their point of view and describe that actual practice of nursing.- Goster walfer
103Characteristics Improve the quality of nursing Compare Actual practice and standard practiceFormal and systematicVariation, DeviationFeed back for those whose records are auditedEvaluation
104Objectives Evaluate the quality of nursing care To achieve the desired and feasible quality of careTo provide way for better recordsFocus on care provided and care providerTo provide rationalized care thereby maintaining inform standards worldwide.To contribute to research
105Methods of Audit in Nursing Retrospective viewDetail quality care assessment after the patients has been dischargedReviewed after diagnosis,Treatment,lab investigation, consultationConcurrent viewReviewing the patients care during the time of hospitalAssessing the patient at the bed-side in relation to predetermined criteria
106Audit Cycle Criteria development Selection of case Worksheet preparationCase evaluationTabulation of evaluationPresentation of report
107Advantages Nursing Audit Patient is assured of good serviceBetter planning of quality improvement can be doneIt develops openness to changeIt provide assurance, by meeting evidence based practiceIt increase understanding of client's expectationIt minimize error or harm to patientsIt reduce complains or claims
108Disadvantages of Nursing Audit It may be considered as a punishment to professional group.Medico-legal importance They feel that will be used in court of law as any document can be called for in court law.Many component may make analysis difficult.It is time consumingIt require a team of trained auditors.
109Cost AccountingCost accounting has long used to help managers understand the costs of running business.Complexities of running large scale business led to the development of the systems for recording and tracking costs to help business owners and manage make decisions.Cost accounting involves the classification, recording, and appropriate allocation of expenditure for the determination of the cost of production or services.
110Objective of Cost accounting To determine cost of productTo analyze classify and record all expenditure with respect to the costTo provide necessary information to the management in timeTo serve as a guide by providing actual data for comparisonTo facilitate price fixationTo assist budget controlTo assist cost control and cost reductionTo provide data for different periods and volumes of output
111Classification of Costs Classification on the basis of timeHistorical costPredetermined costClassification by nature of elementMaterial costDirect MaterialsIndirect MaterialsLabor CostDirect laborIndirect laborExpense costDirect ExpenseIndirect Expense
112Classification of Costs OverheadsProduction or Factory overheadsAdministration overheadsSelling overheadsDistribution overheadsAccounting Period-wise classificationCapital expenditureRevenue expenditureBehavior wise classificationVariable costFixed costSemi variables
113Classification of Costs Based on ControlControllableUncontrollableOther costsNormal costsTraceable costTotal cost
114Approaches of Cost Accounting Standard Costing:A technique which uses standers for coast and revenue for he purpose of control through variance CIMAIt is a system of cost accountingDetermine in advance the standard cost with respect to each element of costCompare the actual performanceAnalyze the variance, attributes and causesCommunicates or report to the appropriate level of management
115Approaches of Cost Accounting Lean Accounting:Lean accounting has developed in recent years to provide the accounting, control and measurement methods supporting lean manufacturing and other application.Provide control & MeasurementUsed in,Health careConstructionInsuranceBankingEducationGovernment
116Step To Lean Accounting Measure and control company's accountReduce the wastageFree up capacitySpeed up the processEliminate errors & DefectsMake process clear & under stableFundamentally change the accountBy motivate changeImprovementProvide suitable informationDecision making
117Characteristics of Lean Accounting Lean focused performance measurementDirect costing & Value streamDecision making & ReportingValue based PricingCorrect understanding of financial impacts
118Approaches of Cost Accounting Marginal Costing:The amount as any given volume of out put by which aggregate costs are changed if the volume of output is increased or decreased by one unit.Variable cost as product costFixed cost as a period costPrice based on marginal cost
119Approaches of Cost Accounting Activity based costing (ABC costing):Activity based costing is a system that focus on activities as fundamental cost objects and utilize cost of these activities as building blocks or compiling the cost of other objects.Costing Based on ActivityAccordance with cost objectUse of cost driversTraceability
120Approaches of Cost Accounting Throughput Accounting:TA is a dynamic, integrated, principle based, and comprehensive management accounting approach that provide managers with decision support information.Advantages:Accumulate data to assess the costIdentify the interaction between expenditureDisadvantages:Difficult to associate the different costs for particular programDifficult for manager to justify the cost of nursing care program
121Cost-effectiveness analysis Cost-effectiveness analysis is a form of economic analysis that compares the relative costs and outcomes(effects) of two or more courses of action.Cost benefit AnalysisCost effectiveness
122CPM Critical Path Method In 1957, DuPont developed a project management method designed to address the challenge of shutting down chemical plants for maintenance and then restarting the plants once the maintenance had been completed. Given the complexity of the process, they developed the Critical Path Method for managing such projects.CPM models the activity and events of a project as a network.
123Characteristics of CPM Provides a graphical view of the projectPredict the time required to complete the projectShows which activities are critical to maintain the schedule and which are not.
124Steps in CPM Specify the individual activities: Bunch of activitiesSeparate all the activatesMake sequenceDetermine the sequence of the activitiesActivities are interdependentMake network diagram for sequence of ActivitiesDraw the network DiagramOnce the activities and their sequence have been defined the CPM diagram can be drawn.
125Steps in CPM Estimate Activity Completion Time The time required to complete each activity can be estimated using past experience or the estimate of the knowledgeable persons.Identify the critical PathCritical path is the longest duration path through the network.Object is not to delay in the projectCritical path analysis is an important aspect of project planning.
126Parameters for CPM Earliest start time Earliest finish time Latest finish timeLatest start time
127Benefits of CPMSupport the introduction of evidence-based medicine and use of clinical guidelinesSupport clinical effectiveness, risk management and clinical auditImprove multidisciplinary communication, teamwork and care planningCan support continuity and coordination of care across different clinical disciplines and sectorsProvide explicate and well-defined standards for care
128Benefits of CPM Help reduce variations in patient care Help improve clinical outcomesSupport trainingOptimize the management recoursesHelp empower patientsHelp manage clinical risk help improve communications between different care sectorsProvide a baseline
129Limitations of CPMFuture is uncertain so completion time if project is uncertain.An alternative to CPM is PERT project planning model, which allows a range of duration to be specified for each activity.