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Module IV
Module IV
b) Start to Start
c) Finish to Finish
d) Start to Finish
Terms related to network planning methods (AOA)
Network diagram –It is a diagram which represents all the events and activities in
sequence (in which they are required to be performed to complete the project),
along with their inter relationships and with their interdependencies.
Event – An event is a specific instant of time which marks start or the end of an
activity. Event consumes neither time nor resources. It is represented by a circle and
the event number is written within the circle.
Activity – Every project consists of a number of tasks which are called activities.
Activities are classified as critical activities, non-critical activities and dummy
activities.
Terms related to network planning methods (AOA)
The steps involved in numbering of the events as per the Fulkerson’s rule are :-
1. The initial event, which has all outgoing arrows and no incoming arrow, is
numbered as 1.
2. Delete all the arrows coming out from the node just numbered (i.e., 1). This step
will create some more nodes (at least one) into initial events. Number these
events in ascending order (i.e., 2, 3, etc.).
3. Continue the process until the final or terminal node which has all arrows
coming in, with no arrow going out, is numbered.
Some of the common combination of activity in a project
SL. No. Diagram Logic
Activity 'A' is preceding activity
of 'B'. i.e., activity ‘A' need to be
1. completed before start of activity
'B'. In other words 'B' starts after
'A' is finished.
4. Procurement of pump D A 7
5. Installation of pump E D, B 3
6. Test run F C, E 2
Problem 1: Solution
SL. No. Activity Symbol Preceding activity Time (Days)
1. Site selection A —— 7
2. Digging well B A 3
3. Laying field channels C B 15
4. Procurement of pump D A 7
5. Installation of pump E D, B 3
6. Test run F C, E 2
Problem 2 :
2. A project consists of 9 jobs with the following precedence relations and time
estimates. Draw the project network and identify the critical path.
The probability that the project will meet the schedule or the due date
The probability of completing the project within the scheduled time may be
obtained by using the standard normal variate, where ‘D’ is the expected time of
project completion.
1. The data regarding the activities in a project are given below. It is given that the
schedule date of completion of project is 38 days. Draw the network diagram, find
the critical path and find the probability that project can be completed at schedule
time.
to tm tp
Activity
(Optimistic time) (Most likely time) (Pessimistic time)
1-2 2 5 14
1-6 2 5 8
2-3 5 11 29
2-4 1 4 7
3-5 5 11 17
4-5 2 5 14
6-7 3 9 27
5-8 2 2 8
7-8 7 13 31
PERT-Problems : #1
Solution :
We know, , ,
Estimated time, standard deviation and variance for the rest of the activities are
computed and tabulated in the table below.
te St Vt
Activity
(Estimated time) (Standard deviation) (Variance)
1-2 6 2 4
1-6 5 1 1
2-3 13 4 16
2-4 4 1 1
3-5 11 2 4
4-5 6 2 4
6-7 11 4 16
5-8 3 1 1
7-8 15 4 16
PERT-Problems : #1
Network diagram is drawn as below.
Values LST, EST, EFT and LFT of other activities are calculated and are tabulated in
the table below.
Activity EST LST Total slack = LST–EST
1-2 0 0 0
1-6 0 2 2
2-3 6 6 0
2-4 6 20 14
3-5 19 19 0
4-5 10 24 14
6-7 5 7 2
5-8 30 30 0
7-8 16 18 2
PERT-Problems : #1
Length of the critical path or the total project duration =
= Sum of the duration of each critical activity = 6 + 13 + 11 + 3= 33 days.
Variance of the critical path = Sum of the variance of each critical activity
= 4 + 16 + 4 + 1 = 25
The probability that the project will meet the schedule or the due date
D = the due or schedule date(time) (Desired Time) = 38 days
Total project duration = Te = 33
Substituting different values in the equation, we get,
The corresponding value of probability can be read from the normal distribution table
and is 0.841.
Project crashing
The process of reducing the time of the project by reducing the scheduled time of
some of the activities is called crashing.
Project crashing is accomplished by subcontracting, overtime, extra shifts,
increasing the number of workers, additional capacity installation, etc.
Important terms used in project crashing
Normal Crash
Preceding Normal Crash
Activity duration Duration
activity cost cost
(days) (days)
B – 20 15 ₹1800 ₹2800
C B 40 30 ₹16000 ₹22000
D C 30 20 ₹1400 ₹2000
E D, F 50 40 ₹3600 ₹4800
F B 60 45 ₹13500 ₹18000
Problems on project crashing : #1
Solution :
From the given data, the network diagram is drawn as below (Crashing
problem-1-Stage-1).
The normal cost for the project is ₹48300 and the normal duration is the duration of
activities in the critical path, which is 140 days. Activity having least-cost slope is
activity D. Maximum of 10 days can be cut from this activity by reducing the
duration of activity D to the crash duration of 20 days.
Now, the overall duration is 130 days and there are multiple critical paths, viz.,
B-F-E and B-C-D-E. Total project cost at this stage is the normal cost of ₹48300
plus the cost of crashing the activity D by 10 days (₹2000–₹1400), which gives the
value ₹48900.
Problems on project crashing : #1
The next activity to be crashed would be the activity E, since it has the least-cost slope
(₹120 per day) of any of the activities on the critical path. Activity E can be crashed by
a total of 10 days. Crashing the activity E by 10 days will cost an additional ₹120 per
day or is ₹1200. Modified network diagram is drawn as below (Crashing
problem-1-Stage-3).
The project duration is now 120 days and the total project cost is ₹50100. There are
now three critical paths (A, B-C-D-E, and B-F-E). Activity A is paired with each of
the other activities to determine which has the least overall cost slope, i.e., activity A
and activity B are combined and crashed we get the least-cost slope, i.e., Activity A
(₹100/day) + Activity B (₹200/day) = ₹300/day.
The least-cost slope will be activity A plus activity B for a cost increase of ₹300 per
day. Reducing the project duration by 5 days will add 5 x 300 = ₹1500 crashing cost
and the total project cost would be ₹51600.
Problems on project crashing : #1
Final step in crashing the project to 110 days would be accomplished by reducing
the duration of activity A by 5 days to 110 days, reducing activity C by 5 days to 35
days, and reducing activity F by 5 days to 55 days. The combined cost slope for the
simultaneous reduction of activity A, activity C, and activity F would be ₹1000 per
day. For 5 days of reduction this would be an additional ₹5000 in total project cost.
Discussions
1. Explain the concept and objectives of network analysis. What are its different stages? Discuss its
advantages and limitations.
2. Explain PERT and its importance in network analysis?
3. Define organizing and explain the importance of organizing in the present business environment.
4. Explain the concepts of crashing and dummy activity in project management.
5. Differentiate between CPM and PERT.