ESD-TDR-64-82, TECHNICAL DOCUMENTARY REPORT: STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM (TM-3430)(JUN-1964)

ESD-TDR-64-82, TECHNICAL DOCUMENTARY REPORT: STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM (TM-3430)(JUN-1964)., The Department of Defense, in June of 1962, promulgated PERT/COST as a new general purpose management system for use on major military system acquisition programs. Ir .ial implementation and testing of PERT/ COST are being accomplished by the Air Force on the F-111 (TFX) weapon system at the Aeronautical Systems Division (ASD) by a special Air Force Systems Command (AFSC) implementation team under the supervision of the PERT/COST subgroup of the AFSC PERT Control Board. Secondary appiica- tions of PERT/COST are being made at the Ballistic Systems Division (BSD) on the Mobile Mid-Range Ballistic Missile (MMRBM) program and at the Space Systems Division (SSD) on the Titan III program. Mitre has investigated the question of how to evaluate the design of the PERT/COST management system. Four different approaches have been considered. This document presents the results of such effort. The general conclusion is that there is no single, simple straightforward way of deriving value judgments as to the PERT/COST system design, or probably any other general purpose management system for that matter. Because of the unavailability of comparable cases and the lack of significant quantities of cases for statistical techniques, no scientifically recognized techniques, which exclude judgment on the part of the observer, appear possible. Furthermore, due to the interrelationships between a management system and the quality of Its implementation operation (including the capability of the managers who use it), assessment of the value of the management system alone presents serious difficulties of both a theoretical and practical nature. Subjective evaluation by use of carefully prepared questionnaires appears to be the only feasihle approach at this time. Additional effort to develop techniques with an objective content is recommended. An evolutionary management system development program is strongly urged.