In developing countries, reduction of energy consumption cost, load forecasting, scheduling and control on the utility side are the major concern towards energy management. In this paper, a solution to this problem is addressed using PERT (Program Evaluation and Review Technique) combined with CPM (Critical Path Method). It is a technique to obtain the best solutions for optimized scheduling of household appliances for Home Energy Management System (HEMS). The optimization is carried out with various constraints in the selected home environment. The state of this condition is considered as a Mixed Integer Linear Programming (MILP) problem with more complexity. To reduce the complexity of this problem, it is solved in two stages namely, a grouping of appliances and selection of optimized group. The simulation of scheduling the appliances with all necessary inter dependencies is carried out using the proposed technique which is named as Customer Choice Based Algorithm (CCBA). The input data for simulation are considered from the existing methods and its results and performance are compared with the proposed algorithm. The proposed technique has effectively managed the peak demand and reduces the cost of energy consumption. © 2018 Asian Institute of Technology.