PROJECT PLANNING

Dr. Rajesh Chouksey

Syllabus
 Project Planning
• Time and cost estimates with AON and AOA conventions,
• Budget estimates,
• Network analysis,
• Float analysis,
• Crashing concepts
NETWORK DAIGRAM
 Network Diagram
• Gantt charts contain a tremendous amount of information, but they do
not display the constraints of a project which drive the timeline.
• Diagram of project activities that shows sequential relationships by use of
arrows and nodes
• There are two common types of network diagrams
– Activity on arrow (AOA)
• Network diagram convention in which arrows designate activities
– Activity on node (AON)
• Network convention in which nodes designate activities
– Activities
» Project steps that consume resources and/or time
– Events
» The starting and finishing of activities
Network Conventions

17-6
Network Conventions

17-7
Network Conventions

17-8
Network Conventions

17-9
Network Conventions

17-10
17-11
17-12
 Activity on Arrow Network Diagram

3.1

1.1
2.1

3.2
1.2 2.2
3.3
Start End
1.3 2.3
3.4
2.4
1.4
 Activity on Node Network Diagram

1.1 3.1 2.1

1.2 3.2 2.2

Start 3.3 End

1.3 2.3

3.4

1.4 2.4
 PERT and CPM
• Project Evaluation and Review Technique (PERT) and
Critical Path Method (CPM) are both useful tools when
planning and controlling a project.

1. Project Evaluation and Review Technique (PERT) :

PERT is appropriate technique which is used for the projects where the
time required or needed to complete different activities are not
known. PERT is majorly applied for scheduling, organization and integration of
different tasks within a project. It provides the blueprint of project and is
efficient technique for project evaluation .

2. Critical Path Method (CPM) :

CPM is a technique which is used for the projects where the time
needed for completion of project is already known. It is majorly used for determining
the approximate time within which a project can be completed. Critical path
is the largest path in project management which always provide minimum time
taken for completion of project
 Deterministic Time Estimates

• Deterministic
– Time estimates that are fairly certain
• Probabilistic
– Time estimates that allow for variation

17-16
No. PERT CPM

PERT is that technique of CPM is that technique of

project management which is project management which is
1 used to manage uncertain (i.e., used to manage only certain
time is not known) activities of (i.e., time is known) activities
any project. of any project.

It is activity-oriented
It is event-oriented technique technique which means that
2 which means that network is network is constructed based
constructed based on event. on activities.

3 It is a probability model. It is a deterministic model.

It majorly focuses on time as

It majorly focuses on Time-
meeting time target or
4 cost trade off as minimizing
estimation of percent
cost is more important.
completion is more important.
No. PERT CPM
It is appropriate for high It is appropriate for
5
precision time estimation. reasonable time estimation.

It has Non-repetitive nature of It has repetitive nature of

6 job. job.

There is no chance of crashing There may be crashing

7 as there is no certainty of time. because of certain time
boundation.

It uses dummy activities for

It doesn’t use any dummy
8 representing sequence of
activities.
activities.

It is suitable for projects which It is suitable for construction

9 required research and projects.
development.
 Network-Planning Models

A project is made up of a sequence of activities that form a

network representing a project.

The path taking longest time through this network of activities

is called the “critical path.”

The critical path provides a wide range of scheduling

information useful in managing a project.

Critical path method (CPM) helps to identify the critical

path(s) in the project networks.
 PERT and CPM
• By using PERT or CPM Managers can obtain:

1. A graphical display of project activities

2. An estimate of how long the project will take

3. An indication of which activities are most critical to

timely project completion

4. An indication of how long any activity can be delayed

without delaying the project
 Critical Path Method (CPM)

Identify each activity to be done and

estimate how long it will take.

Determine the required sequence and

construct a network diagram.

Determine the critical path.

Determine the early start/finish and late

start/finish schedule.
 Deterministic Time Estimates

• Deterministic
– Time estimates that are fairly certain
• Probabilistic
– Time estimates that allow for variation

17-22
 Early Start, Early Finish
• Finding ES and EF involves a forward pass
through the network diagram
– Early start (ES)
• The earliest time an activity can start
• Assumes all preceding activities start as early as possible
– For nodes with one entering arrow
» ES = EF of the entering arrow
– For activities leaving nodes with multiple entering arrows
» ES = the largest of the largest entering EF
– Early finish (EF)
• The earliest time an activity can finish
– EF = ES + t
 Late Start, Late Finish
• Finding LS and LF involves a backward pass through the
network diagram
– Late Start (LS)
• The latest time the activity can start and not delay the project
– The latest starting time for each activity is equal to its latest finishing time
minus its expected duration:
» LS = LF - t
– Late Finish (LF)
• The latest time the activity can finish and not delay the project
– For nodes with one leaving arrow, LF for nodes entering that node equals the
LS of the leaving arrow
– For nodes with multiple leaving arrows, LF for arrows entering node equals
the smallest of the leaving arrows
 Slack and the Critical Path
• Slack can be computed one of two ways:
– Slack = LS – ES
– Slack = LF – EF

• Critical path
– The critical path is indicated by the activities with
zero slack
 Using Slack Times
• Knowledge of slack times provides managers with information
for planning allocation of scarce resources

– Control efforts will be directed toward those activities that might be

most susceptible to delaying the project

– Activity slack times are based on the assumption that all of the
activities on the same path will be started as early as possible and
not exceed their expected time

– If two activities are on the same path and have the same slack, this
will be the total slack available to both
Identify Activities and Construct Network
 CPM

Activity Time P1 P2
A 21
B 5 A
C 7 A
D 2 B
E 5 C D
F 8 C D
G 2 E F
 Identify Activities and Construct Network

C(7) F(8)

A(21) G(2)

B(5) D(2) E(5)

 Determine Early Start/Early Finish and Late Start/Late Finish Schedule

Start Time Finish Time

Activity Duration
Earliest Latest Earliest Latest Total Float
A 21
B 5
C 7
D 2
E 5
F 8
G 2
 Determine Early Start/Early Finish and Late Start/Late Finish Schedule

Start Time Finish Time

Activity Duration
Earliest Latest Earliest Latest Total Float
A 21 0 21
B 5 21 26
C 7 21 28
D 2 26 28
E 5 28 33
F 8 28 36
G 2 36 38
Determine Early Start/Early Finish and Late Start/Late Finish Schedule

0 21

A(21)

0 21
 Determine Early Start/Early Finish and Late Start/Late Finish Schedule

21 28 28 36

C(7) F(8)

21 28 28 36
0 21 36 38

A(21) G(2)
0 21 36 38
21 26 26 28 28 33

B(5) D(2) E(5)

21 26 26 28 31 36
Determine Early Start/Early Finish and Late Start/Late Finish Schedule

Start Time Finish Time

Activity Duration
Earliest Latest Earliest Latest

A 21 0 0 21 21
B 5 21 21 26 26
C 7 21 21 28 28
D 2 26 26 28 28
E 5 28 31 33 36
F 8 28 28 36 36
G 2 36 36 38 38
 Determine Early Start/Early Finish and Late Start/Late Finish Schedule

Critical 21 28 28 36
Path 1:
ACFG C(7) F(8)

21 28 28 36
0 21 36 38

A(21) G(2)
0 21 36 38
21 26 26 28 28 33

Critical B(5) D(2) E(5)

Path 2:
ABDFG 21 26 26 28 31 36
 CPM Example 2
• Construct the network which consists of the
following activities:

Activity
1-2 1-3 2-3 2-5 3-4 3-6 4-5 4-6 5-6 6-7
Duration
weeks 15 15 3 5 8 12 1 14 3 14
 3
15 12
08

14 14
1 03 4 6 7

01

15 03

2 5
05
 3
15 12
08

14 14
1 03 4 6 7

01

15 03

2 5
05
 Start Time Finish Time
Activity Duration Total Float
Earliest Latest Earliest Latest
1-2 15 0 15
1-3 15 0 15
2-3 3 15 18
2-5 5 15 20
3-4 8 18 26
3-6 12 18 30
4-5 1 26 27
4-6 14 26 40
5-6 3 27 30
6-7 14 40 54
 Determine Early Start/Early Finish and Late Start/Late Finish Schedule

Start Time Finish Time

Activity Duration
Earliest Latest Earliest Latest
1-2 15 0 0 15 15
1-3 15 0 03 15 18
2-3 3 15 15 18 18
2-5 5 15 32 20 37
3-4 8 18 18 26 26
3-6 12 18 28 30 40
4-5 1 26 36 27 37
4-6 14 26 26 40 40
5-6 3 27 37 30 40
6-7 14 40 40 54 54
 E = 15

3
15 12
E = 18 08
E = 30
E=0 E = 26 E = 54
14 E = 40 14
1 03 4 6 7

01 E = 27

15 E = 27 03

2 5
05 E = 20
E = 15
 3 L = 15
15 L = 18 12
08
L = 26 E = 54
14 14
1 03 4 6 7
L = 36
L=0 01 L = 40 L = 54
L = 15
15 03

2 5
L = 22 05
L = 37
 E = 15 L = 18

3
15 12
E = 18 08
E = 30
E=0 E = 26 E = 54
14 E = 40 14
1 03 4 6 7

L = 26 01 E = 27
L=0 L = 40 L = 54

15 E = 27 03

2 5
05 E = 20
E = 15 L = 15 L = 37
 E = 18 L = 18

3
15 12
08
E=0 E = 26 E = 40 E = 54
14 14
1 03 4 6 7

L = 26 01
L=0 L = 40 L = 54

15 03

2 5
05
E = 15 L = 15 E = 27 L = 37
 E = 18 L = 18

3
15 12
08
E=0 E = 26 E = 40 E = 54
14 14
1 03 4 6 7

L = 26 01
L=0 L = 40 L = 54

15 03

2 5
05
E = 15 L = 15 E = 27 L = 37
Critical Path : 1-2-3-4-6-7

E = 18 L = 18

3
15 12
08
E=0 E = 26 E = 40 E = 54
14 14
1 03 4 6 7

L = 26 01
L=0 L = 40 L = 54

15 03

2 5
05
E = 15 L = 15 E = 27 L = 37