GERT

GERT: A Powerful Tool for Project Management in Oil & Gas

Graphical Evaluation and Review Technique (GERT) is a valuable tool used in the oil and gas industry for managing complex projects. It combines the advantages of network analysis techniques, such as PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method), with the flexibility to account for uncertainties and probabilistic events.

Here's a breakdown of GERT and its application in Oil & Gas:

Key Features of GERT:

• Network Diagram: GERT uses a network diagram to visually represent the project's activities, their dependencies, and the possible outcomes of each activity. This visual representation aids in understanding the project's structure and potential risks.
• Probabilistic Events: Unlike PERT and CPM, GERT allows for the inclusion of probabilistic events. This means that activities can have multiple outcomes, each with a specific probability of occurrence.
• Looping Activities: GERT can handle looping activities, where a specific activity may need to be repeated based on the outcome of a previous activity. This is particularly useful for analyzing iterative processes common in the oil and gas industry.
• Conditional Logic: GERT allows for the implementation of conditional logic, enabling the project manager to define specific conditions that must be met for certain activities to be initiated. This helps in accurately modeling the complex dependencies between activities.
• Simulation and Analysis: GERT uses simulation techniques to analyze the project's performance under different scenarios, factoring in the uncertainties and probabilistic events. This provides valuable insights into project risks, potential delays, and the likelihood of achieving project objectives.

Applications in Oil & Gas:

• Exploration and Production: GERT helps in evaluating the feasibility of exploration and production projects, considering factors like geological uncertainty, well drilling success rates, and potential reserves.
• Project Planning and Scheduling: GERT assists in developing realistic project schedules, identifying critical activities, and optimizing resource allocation. It also helps in mitigating project delays and managing risks.
• Risk Assessment and Management: GERT facilitates a comprehensive risk assessment by identifying potential risks, quantifying their impact, and developing mitigation strategies.
• Decision Making: GERT aids decision-making by providing a framework for evaluating different project options, considering their associated risks and potential outcomes.
• Capital Budgeting: GERT helps in evaluating the economic viability of projects by analyzing the potential returns on investment and the likelihood of achieving project objectives.

Benefits of Using GERT:

• Enhanced Project Planning: GERT helps in developing more accurate and realistic project plans, considering potential risks and uncertainties.
• Improved Risk Management: By incorporating probabilistic events and conditional logic, GERT allows for a more comprehensive risk assessment and mitigation strategy.
• Enhanced Decision Making: GERT provides a framework for evaluating different project options and making informed decisions.
• Increased Project Success: By optimizing resource allocation and managing risks effectively, GERT increases the likelihood of achieving project objectives.

Conclusion:

GERT is a powerful tool for managing complex projects in the oil and gas industry. By incorporating probabilistic events and conditional logic, GERT enables project managers to analyze uncertainties, identify potential risks, and develop effective mitigation strategies. This leads to more informed decision-making, improved project planning, and an increased likelihood of achieving project goals.