Subject/Course Code: 18ARC72

Subject/Course Name: Construction and project management

Module: 3
Topic: Network Analisis
AY Sem: VIII Semester 2023-24

PROF. Ar. Sumanta Patil

DEPARTMENT OF: Architecture
 PROJECT SCHEDULING TECHNIQUES CPM & PERT

Once the project is selected, the focus of project manager shifts to its implementation. This involves
completion of numerous activities by deployment of various resources. The activities of a project have
inter-relationship arising from physical, technical, and other considerations. Some of these activities
are performed in series and some of them in parallel.

Network techniques are quite useful for proper planning scheduling and controlling project activities.
They provide a rational approach to planning and controlling of construction works.

Since bar charts except for their simplicity, have several limitations, they are not effective for
controlling project works. Network techniques are in essence a modification of bar charts for
controlling various activities of a project. Both network and bar charts are graphical techniques. Their
basic requirements is to analyse various work components of the project.

For this it is necessary to list out various activities from beginning to end of the project. There are two
basic planning and controlling techniques that utilise the network to complete the planned project.
They are Programme(project) Evaluation Review Technique (PERT) and Critical Path Method (CPM).

Strengths and limitations of PERT

• It forces managers to plan all down the line
• Focus on critical events and activities.
• Facilitates forward looking control
• Provides action points at right spot and level of organisation at right time.

Limitations
• Not useful if time estimates cannot be made for programmes
• Not practicable for mass production
• Lays emphasis on time and not on cost
© Acharya's NRV School of Architecture
• Linear mode and not in series operations only.
Critical Path Method

• It is the longest path in a project network.

• It determines projects completion time.
• There will be one set of events from start event to end event for which slack
values are zero. Critical path passes through these events and these events
are called critical events.
• The activities on this path are called critical activities. The total and free
floats for the critical activities will have zero value. The sequence of critical
activities in a network is called critical path.
• It is also shortest possible time to complete the project.
• There may be more than one critical path in a project network.
• Critical path may change its path when network is reviewed later during
execution of the project works. If there is variation in actual and estimated
activity durations.
• If any of the critical activity is delayed it will affect the project completion time.
Hence project manager should focus his attention on completion of critical
activities.
• If project completion time obtained from network analysis is not acceptable to
project authorities, the critical activities will have to be crashed involving
additional cost.
• Resources are diverted from non critical activities to critical activities lagging
behind to avoid delay in project completion.
Parameter PERT CPM

1. Acronym Program evaluation Critical path method

2. Origin US Navy for planning and DuPont company to solve

scheduling of Polaris weapon scheduling problems in
system construction of chemical
plants
3. Approach Event oriented Activity oriented

4. Suitability For projects involving Stable technology such as

• New technology construction projects.
• Rapidly changing technology
• R & D Projects
5. Time Probabilistic(three time Deterministic (single time
estimates- optimistic, pessimistic, estimates)
and most likely)

6. Uncertainty Allowance exists No such allowance

7. Basis Time based Cost based

PROJECT PLANNING AND SCHEDULING:

What is a Network?

Network is a graphic plan of all activities that must be completed to reach the end objective of
the project showing their interdependency and inter-relationship. The components that make up
the network are activities and events.

Event:
An event is also called as mode, is a specific definable accomplishment in a project plan. It is a
point in time at which an activity begins or ends. It is recognisable at particular instant of time. It
consumes neither time nor resources. It is point in time and not passage of time. It is a stage
between the completion of preceding activity and beginning of succeeding one. It is represented
by circle or any geometric shape.

Activity:
Is the smallest unit of productive effort in a project. It is the performance of task between any
two events. It is task performed over a period of time. It is a homogeneous element of
continuous work consuming time and resources in a network plan. It is represented by an arrow.

Description of the activity is written above the arrow and the time taken for its completion is
shown in the middle underneath.
The tail of the arrow indicates the
commencement of the task. The
head of arrow indicates its
completion.

Dummy Activity:
It is a zero time activity shown in
dotted arrows. As shown in
example(4-2) is a dummy activity. It
indicates the activity(2-5) can not
start unless activity(1-2) and (3-4) are
completed.
It does not consume any resource. It
maintains logic of network by keeping
inter dependencies in perfect order. It
also helps to maintain numbering
systems unique in the network
diagram. It indicates dependency of
one activity on the other

© Acharya's NRV School of Architecture

 C F
K
B
X dummy
A E I
H
D J L

G
Project crashing

Project crashing in project management is a method used to speed up a project's timeline

by adding additional resources without changing the scope of the project. It’s a time cost
trade off to reduce the project completion duration.

This is when the triple constraint usually comes into play; scope, time and cost. If one falls
behind, the others have to make up the slack. There are many ways to adjust things on
your project to make up for the time you’ve lost. That includes adding extra resources
along the way, which is a method called project crashing.

Steps for crashing the project:

Step 1: Analyze the critical path. ...

Step 2: Identify all tasks that can be shortened with additional resources. ...
Step 3: Calculate for each task: trade-off, gain, time reduction. ...
Step 4: Choose the least costly approach. ...
Step 5: Provide a crashing budget and updated project baselines to the sponsor.

TERMS USED AND THEIR ABBREVIATIONS

Normal time NT

Normal direct cost NC

Crash time CT

Crash direct cost CC

Project total cost TC = Sum of direct cost + indirect cost

of all activities
 •Draw network diagram with normal activity durations.
Indicate on the network the following:
TC
a) Durations of each activity
a) Earliest and latest time of each event
b) Free float for each activity
Cost

c) Critical path or paths

IDC
d) Project completion time

• Calculate cost slope

DC
∆C = CC – NC For each activity
Time ∆T NT – CT
Total project cost (Direct & Indirect)
Compute total direct costs of all activities corresponding to normal activity durations.

If there is only one critical path in the network, crash that critical activity which has the least cost
slope. Crashing should be done within crushable limit of that critical activity and within free float
limit of the project.
If there is more than one critical path, crash one critical activity on each critical path which has
least cost slope within the crashable limit of the critical activity and within free float limit.

if there is one critical activity common to two or more critical paths, crash that common critical
activity within its crashable limit and within free float limit.

When critical activity/activities is/ are crashed its corresponding crash time must be adopted for
those crashed activities and normal time for all other activities. Analyse the network, mark critical
path ( there may be shift in critical path in some cases), and compute project completion time.
Compute extra direct cost incurred and indirect cost corresponding to compressed project
completion time.
Repeat this process until there is at least one critical path on which none of the activities can be
crashed , i.e. the critical activities have reached their respective crashable limits. Then stop
further crashing.

Total project cost = sum of normal direct costs of all activities corresponding to normal activity
durations + extra direct cost due to crashing + indirect cost corresponding to compressed project
completion time.

As the project completion time is crashed , there will be increase in direct cost and decrease in
indirect cost. Sum of these representing total cost will be minimum for a particular project
completion time. There are Cmin and Tmin (optimum project cost and project completion time)

Ex: A project consists of five activities as detailed below. Determine optimum project completion
time assuming indirect costs @ 450/- per week.

network is drawn adopting normal activity durations as given below.

Activity Time in weeks Crash CT Direct cost Direct cost

Normal NT normal NC Crash NC
1-2 5 4 600 800

1-3 3 1 400 600

1-4 8 5 900 1200

2-4 4 2 600 1200

3-4 4 3 500 700

Total direct cost = 3000/-

STEP 1: Compute TE and TL, mark critical path and compute project completion time

2
2
1 5 4 5 5
4 1 5 4
0 4
8 0 0
8 9 9
3 3
4 3
3 4
5
3 5
Critical path (1-2) – (2-4), project completion time 5+4 = 9 weeks
Direct cost = 3000
Indirect cost = 9X450
= 4050

Total cost = 7050/9 weeks

STEP 2: Calculate cost slope for each activity and compute sum of normal direct cost of all activities.
Activity Times in weeks Direct cost in RS Cost slope =∆T/∆C/week
= CC-NC/NT-CT
(1-2) 5 4 600 800 800-600/5-4 =200

(1-3) 3 1 400 600 600-400/3-2 = 100

(1-4) 8 5 900 1200 1200-900/ 8-5 = 100

(2-4) 4 2 600 1200 1200 – 600/4-2 =300

(3-4) 4 3 500 700 700- 500/ 4-3 = 200

STEP 3: There is only one critical path (1-2), (2-4)
The cost slopes are 200/- per week for activity 1-2 and 300/- for activity 2-4
The least cost slope is for critical activity (1-2) @ 200/- week crash critical activity 1-2 by one
week, 1.e. from 5 weeks to 4 weeks. By this activity (1-2) has reached its crashable limit.

Analyze the network by adopting crash time for critical activity (1-2) and normal time for other
activities as given below.
2
4 4
1 4 4
4
0 0
8 8 8

3 3
4
3 4

Extra cost of crashing critical activity (1-2) = 200

Sum of direct cost of all activities with = 3000
Normal duration
Sum of direct costs = 3200
For 8 weeks indirect costs = 8X450 = 3600

Total cost = 6800 for 8 weeks

Now there are 2 critical paths after crashing activity (1-2)

1. critical path 1-2, 2-4
2. critical path 1-4
Crash one critical activity on each path.
In CP1 activity (1-2) has reached its crashable limit,
Cost slop e of activity 2-4 = 300/-
In CP 2 cost slope for critical activity 1-4 = 100/-
Crash (2-4) and (1-4) by one week
Extra direct cost = 300 + 100 = 400/- 2
Total direct cost = 3200 + 300 + 100 = 3600/- 4 4
1 4 3
4
Indirect cost = 7X 450 = 3150 0 0
7 7 7
Total cost = 6750 for 7 weeks

Network is shown below 3 3

4
3 3

There are 3 critical paths after crashing 1-4 and 2-4

CP1 = 1-2, 2-4
CP2 = 1-4
CP3 = 1-3, 3-4
Crash 2-4, 1-4, and 1-3 by 1 week 2
Project completion time = 6 weeks 4 4
Indirect cost = 6X450 = 2700 1 2
4
4
0 0
Direct cost: 6 6 6
Extra cost due to crashing by 1 week
2-4 =300 2 3
1-4 =100 4
3 3
1-3 = 100
Add as above 3600
Total direct cost 4100
Total cost = 4100 + 2700 = 6800/- for 6 weeks

Further crashing is not feasible since critical path 1-2, 2-4, both critical activities have
reached their crashable limits of 4 weeks and 2 weeks respectively.
 Project Direct costs Inditrect costs Total costs
completion time
9 weeks 3000 4050 7050

8 weeks 3200 3600 6800

7 weeks 3600 3150 6750

6 weeks 4100 2700 6800

Hence optimum time and cost are 7 weeks and rs 6750/- respectively.