BBAF 4133 - Project Management

Project Schedule
Management

Mrs. Jeyan Suganya Dimon Ford

Senior Lecturer
Department of Financial Management
University of Jaffna
 Introduction

In the pre PMBOK 6th edition (2017), Schedule

management was Time Management
Project Schedule Management includes the
processes required to ensure timely completion of
the project.
Schedule management is one of the most important
knowledge areas in project management.
Project manager is ultimately responsible for
ensuring that project is delivered within the
schedule.
Triple Constraint
Project Schedule Management
Process
 Schedule Management Process

1. Plan Schedule Management: It is the process of

establishing the policies, procedures, and documentation for
planning, developing, managing, executing, and controlling the
project schedule. The key benefit of this process is that it
provides guidance and direction on how the project schedule
will be managed throughout the project.
 Schedule Management Process

2. Define Activities: It is the process of identifying and

documenting the specific actions to be performed to produce
the project deliverables. The key benefit of this process is to
break down work packages into activities that provide a basis
for estimating, scheduling, executing, monitoring, and
controlling the project work.
 Schedule Management Process

3. Sequence Activities: It is the process of identifying and

documenting relationships among the project activities. The
key benefit of this process is that it defines the logical
sequence of work to obtain the greatest efficiency given all
project constraints.
 Schedule Management Process

4. Estimate activity duration: It is the process of

estimating the number of work periods needed to complete
individual activities with estimated resources. The key
benefit of this process is that it provides the amount of time
each activity will take to complete, which is a major input
into the Develop Schedule process.
 Schedule Management Process

4. Estimate activity duration:

 Schedule Management Process

5. Develop Schedule: It is the process of analyzing activity

sequences, durations, resource requirements, and schedule
constraints to create the project schedule model. The key
benefit of this process is that by entering schedule activities,
durations, resources, resource availabilities, and logical
relationships into the scheduling tool, it generates a schedule
model with planned dates for completing project activities.
 Schedule Management Process

5. Develop Schedule:
 Schedule Management Process

6. Control schedule: It is the process of monitoring the

status of project activities to update project progress and
manage changes to the schedule baseline to achieve the plan.
The key benefit of this process is that it provides the means
to recognize deviation from the plan and take corrective and
preventive actions and thus minimize risk.
 Work Breakdown
structure
A work breakdown structure (WBS) is used for breaking
down a project into easily manageable components
or bites.

Which is an extremely valuable and important project

management tool. It sets the foundation for the rest of
the project planning.
Work Breakdown structure
Work Breakdown structure
Work Breakdown structure
 Roles of Work
Breakdown structure
 The WBS is an essential tool to define the project scope.
 The WBS lays the ground work for accurate project costing.
 An accurate Project Schedule can only be developed after a comprehensive
WBS.
 A well-defined WBS reduces the risk of projects failing to meet goals and
objectives.
 The WBS can be used to manage outsourced service providers as well as
internal project team members.
 An effective WBS means project tasks can be delegated and managed.
 Gantt Chart

A Gantt chart is a visual representation of a project

schedule. It is a horizontal bar chart.

A Gantt chart, commonly used in project management,

is one of the most popular and useful ways of showing
activities (tasks or events) displayed against time.
 Activities

 Sequential activities :- some activities are dependent

on other activities being completed first.

 Parallel activities :- Other activities are not dependent

on completion of any other tasks. These may be done
at any time before or after a particular stage is
reached.
Gantt chart
Gantt chart
Gantt Chart
Gantt Chart
 Activities…..
1. Draw the Gantt chart
Tasks Name Start Finish Duration
Task 1 2 Jan 6 Jan 5 days
Task 2 9 Jan 13 Jan 5 days

Task 3 14 Jan 18 Jan 5 days

Task 4 8 Jan 12 Jan 5 days

Task 5 8 Jan 25 Jan 18 Days

 Activities…..
Answer
January
Tasks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Task 1

Task 2

Task 3

Task 4

Task 5
 2. Planning a custom – written computer
project
Earliest Dependent
Task Length
start on...
A. High level analysis Week 0 1 week
B. Selection of hardware platform Week 1 1 day A
C. Installation and commissioning of hardware Week 1.2 2 weeks B
D. Detailed analysis of core modules Week 1 2 weeks A
E. Detailed analysis of supporting modules Week 3 2 weeks D
F. Programming of core modules Week 3 2 weeks D
G. Programming of supporting modules Week 5 3 weeks E
H. Quality assurance of core modules Week 5 1 week F
I. Quality assurance of supporting modules Week 8 1 week G
J.Core module training Week 6 1 day C,H
K. Development and QA of accounting reporting Week 5 1 week E
L. Development and QA of management reporting Week 5 1 week E
M. Development of Management Information System Week 6 1 week L
N. Detailed training Week 9 1 week I, J, K, M
 Activities…..
Answer
Weeks
0 2 4 6 8 10 12

A
B
C
D
E
F
Duration
G
Tasks

H
I
J
K
L
M
N
 Activities…..
3. Draw the Gantt chart
Activity Predecessor Duration Cost
(days)
A - 2 40000.00

B A 3 120000.00

C B 4 120000.00

D C 3 30000.00

 Draw the Gantt chart for the above details.

 Calculate the daily cost and total cost.
Cumulative

C
B
A

D
Daily Cost
Cost
Tasks

20000.00 20000.00
1
A

40000.00 20000.00
2

80000.00 40000.00
3

120000.00 40000.00
4

160000.00 40000.00
5

190000.00 30000.00
6

30000.00
220000.00
7

250000.00 30000.00
8
Duration (Days)

280000.00 30000.00
9

290000.00 10000.00
10

300000.00 10000.00
11

310000.00 10000.00
12
 Activities…..
4. Draw the Gantt chart
Activity Predecessor Duration (days)
A - 4
B - 5
C A 5
D A 6
E B,C 5
F D 4
G E 5

 Draw the Gantt chart for the above details.

Tasks Duration (Days)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

A
A
B
B
C C
D D
E E
F F
G G
 5. Draw the Gantt chart
Task Length Type* Dependent on...

A. High level analysis 1 week S

B. Selection of server hosting 1 day S A
C. Configuration of server 2 weeks S B
D. Detailed analysis of core modules 2 weeks S, P to B, C A
E. Detailed analysis of supporting modules 2 weeks S, P to F D
F. Development of core modules 3 weeks S, P to E D
G. Development of supporting modules 3 weeks S, P to H, J E
H. Quality assurance of core modules 1 week S, P to G F
I. Quality assurance of supporting modules 1 week S G
J. Initial client internal training 1 day S, P to G C,H

K. Development and QA of accounting reporting 1 week S E

L. Development and QA of management reporting 1 week S E

M. Development of Management Information
System 1 week S L
N. Client internal user training 1 week S I, J, K, M
 0 1 2 3 4 5 6 7 8 9 10 11

A
B
C
D
E
F
G
H
I
J
K
L
M
N
 Advantages
 Avoid completion confusion: Gantt charts were created to
keep users on track, providing a visual timeline for starting
and finishing specific tasks.
 Keep everyone on the same page: where there is a visual
framework for the work to be done, there are fewer
chances for misunderstanding.
 Understand task relationships: these charts can make clear
how various tasks are interrelated and perhaps rely on the
completion of another to meet specific objectives.
 Effectively allocate resources: Users can clearly discern
where resources need to be anticipated, allocated or
shared to maximize the use of those resources.
 Get a handle on the future: Gantt chart helps decision-
makers look farther ahead to ensure each given project is
working toward the achievement the organization’s long-
term strategic objectives
 Disadvantages

 They can become extraordinarily complex. Except for the simplest

projects, there will be large numbers of tasks undertaken and
resources employed to complete the project.

 The size of the bar does not indicate the amount of work. Each bar
on the chart indicates the time period over which a particular set
of tasks will be completed. However, by looking at the bar for a
particular set of tasks.

 They need to be constantly updated. As you get into a project,

things will change. If you’re going to use a Gantt chart you must
have the ability to change the chart easily.
 Project
Scheduling Techniques

▪ Critical Path Method (CPM).

▪ Programme Evaluation Review Techniques (PERT).

 Network diagram
 Activity :- part of the project represented by an arrow
or line.

 Event :- represents the start or finish of one or more

events (shown as a circle, square, or other
symbol).

 Network :- It is the graphic representation of

logically and sequentially connected arrows and
nodes representing activities and events of a
project.
 Basic Terms

 Preceding Activity :- Activity which must be accomplished

before a given event can occur.

 Succeeding Activity :- Activity which cannot be

accomplished until an event has occurred.

 Concurrent Activity :- Activity which can be accomplished

concurrently.
 Basic Terms
 Dummy Activity :- Certain activities which neither consume time nor
resources. But are used simply to represent a connection or link
between events.

 Merge event:- It is necessary

for an event can be the ending
event of two or more activities.

 Burst event :- If the event

happens to be the beginning
event of two or more activities.
 Rules of Network construction
 No event can occur until every activity preceding, which has been
completed.
 An event cannot occur twice.
 An activity succeeding an event cannot be started until that event has
occurred.
 Dummies should be introduced if it is extremely necessary.
 The network has only one start event and one point of end or terminal
event.
 All activities must be tied into the network.
 Exercise .1
Activity Preceding activity
A -
B -
C A
D B
E B
F B
G C,D
H F
Answer….. (Activity On Arrow)

C
A

G
D

E
B

F H
 Answer… (Activity On Node)

C
A G
Sta D
rt
En
E d
B

H
F
 Exercise .2
Activity Preceding activity
A -
B -
C -
D A
E B
F B
G C
H D,E
I F,G
J H,I
Answer… (Activity On Arrow)

A
E H
B
J

C F

I
G
 Answer… (Activity On Node)

A D
H
E
Star
t
B J

C I
G
 Exercise
a) A, B, and C the first activities of the
project can be executed concurrently.
b) A & B precede D.
c) B precedes E,F,H.
d) F & C precede G.
e) E & H precede I & J.
f) C,D,F and J precede K.
g) K precedes L.
h) I, G and L are terminal activities of the
project.
 Answer…
D

K
J
A
E
B L
H
I

C F

G
 Critical path method

Critical path method is a network analysis. It helps to

identify the minimum length of time needed to
complete a project.

 Critical activity: - An activity is said to be critical, if a

delay in its start will cause a further delay in the
completion of the entire project.

 Critical path: - It is the longest path in the network from

the starting event to the ending event and defines the
minimum time required to complete the project.
 Exercise .1
Activity Time (days) Dependency
A 7 -
B 3 -
C 6 A
D 3 B
E 3 D, F
F 2 B
G 3 C
H 2 G,E
A Answer… (Activity On Arrow)
7 C
6 G
A 3 H
7 2
D
3

E
B 3
F
3
2

A+C+G+H = 7+6+3+2 =18

B+F+E+H =3+2+3+2 =10
B+D+E+H = 3+3+3+2 =11
 Answer… (Activity On Node)
A C G
7 6 3
Star F
H
t 2
2
B
E
3 D 3
3

A+C+G+H = 7+6+3+2 =18

B+F+E+H =3+2+3+2 =10
B+D+E+H = 3+3+3+2 =11
 Exercise .2
Activity Description Required Duration
Predecessor
A Product design (None) 5 months
B Market research (None) 1
C Production analysis A 2
D Product model A 3
E Sales brochure A 2
F Cost analysis C 3
G Product testing D 4
H Sales training B, E 2
I Pricing H 1
J Project report F, G, I 1
 Answer… (Activity On Node)
A C F
5 2 3

D
Start 3 G J
E 4 1
2
B H I
1 2 1

A+C+F+J = 5+2+3+1 = 11
A+D+G+J = 5+3+4+1 = 13
A+E+H+I+J = 5+2+2+1+1 = 11
B+H+I+J = 1+2+1+1 = 05
 Answer… (Activity On Arrow)
C
2 F
A 3 J
5 D 1
E 3
G
2
4
I
B 1
H
1
2

A+C+F+J = 5+2+3+1 = 11
A+D+G+J = 5+3+4+1 = 13
A+E+H+I+J = 5+2+2+1+1 = 11
B+H+I+J = 1+2+1+1 = 05
Activity On Node (AON) method

Early Early
Duration
Start Finish

Task name

Late Late
Slack time
Start Finish
Activity On Arrow (AOA) method

Earliest event time

Event
label

Latest event
time
 Exercise .3
Activity Dependent on… Duration
A (None) 3
B A 2
C A 1
D A 1
E B,C 3
F D 2
G E 1
H E,F 2
I G,H 2

1. Draw the network diagram.

2. Calculate slack time for each activity.
 Answer…(AON)
2 3 1
B E G

3 1
2
A C
I

1 2
2
D H
F
 Answer…(AON)
3 2 5 5 3 8 8 1 9
B E G
3 0 5 5 0 8 9 1 10

0 3 3 3 1 4
10 2 12
A C
I
0 0 3 4 1 5
10 0 12
3 1 4 8 2 10
4 2 6
D H
F
5 2 6 8 0 10
6 2 8
 Answer…(AOA)
E
3 G
5 8
1
5 8 I
B
1 2 1
2
0 2
A C 1 1
3 1 0 2
0 3 4 8 H
0 3 5 8 2

D F
1 2
4
6
 Activity ES Duration EF LF Duration LS Slack = LS - ES
LF - EF
A 0 3 3 3 3 0 0

B 3 2 5 5 2 3 0

C 3 1 4 5 1 4 1

D 3 1 4 6 1 5 2

E 5 3 8 8 3 5 0

F 4 2 6 8 2 6 2

G 8 1 9 10 1 9 1

H 8 2 10 10 2 8 0

I 10 2 12 12 2 10 0

Total slack 6
 Exercise .4
Activity Preceding Activity Duration
A - 5
B A 4
C A 5
D A 3
E B 5
F C 6
G D 7
H E,F,G 7

1. Draw the network diagram.

2. Calculate slack time for each activity.
 Answer…(AON)

5 4 9 9 5 14
B E
7 2 11 11 2 16

0 5 5 5 5 10 10 6 16 16 7 23
A C F H
0 0 5 5 0 10 10 0 16 16 0 23

5 3 8 8 7 15
D G
6 1 9 9 1 16
 Answer…(AOA)
9
11 E
B
5
4
C H
A
5 7
0 5 5 10 16 23
0 5 10 16 23
F
6
G
D
7
3
8
9
 Activity ES Duration EF LF Duration LS Slack = LS - ES
LF - EF
A 0 5 5 5 5 0 0

B 5 4 9 11 4 3 2

C 5 5 10 10 5 4 0

D 5 3 8 9 3 5 1

E 9 5 14 16 5 5 2

F 10 6 16 16 6 6 0

G 8 7 15 16 7 9 1

H 16 7 23 23 7 8 0

Total slack 6
 Programme Evaluation and
Review Technique (PERT)
PERT is probabilistic method where the activity time is
represented by a probability distribution. This probability
distribution of activity times is based upon three
different time estimates made for each activity.
These are follows.
(i) Optimistic time estimate - to
(ii) Most likely time estimate - tm
(iii) Pessimistic time estimate - tp
Expected time of an activity :-  = to+4tm+tp
6

Variance of the activity is :- 2 = tP - tO 2

Probability of completing a project Z = x - 


x – actual project completion time.
 - expected project completion time.
 - standard deviation of the expected project completion time.
 Example….

Predecess
Activity to tm tp
or
A - 1 2 3
B A 1 4 7
C A 1 2 9
D B 1 2 9
E C 2 3 4
F D,E 2 3 4
Activity …A

Expected time of an activity :-  = to+4tm+tp

6
1+(4 x 2)+3 = 2 days
6

Variance of the activity is :- 2 = tP - tO 2

6
3- 1 2

6 = 0.11
Activity to tm tp te 2
A 1 2 3 2 0.11
B 1 4 7 4 1
C 1 2 9 3 1.7
D 1 2 9 3 1.78
E 2 3 4 3 0.11
F 2 3 4 3 0.11
 Answer…

2 4 6 6 3 9
B D
2 0 6 6 0 9
0 2 2 9 3 12
A F
0 0 2 9 0 12
2 3 5 5 3 8
C E
3 1 6 6 1 9
Activity to tm tp te 2

A 1 2 3 2 0.11

B 1 4 7 4 1

C 1 2 9 3 1.7

D 1 2 9 3 1.78

E 2 3 4 3 0.11

F 2 3 4 3 0.11

12 3
 =  3 = 1.73
 What is the probability of completing the project on or
before 12, 14 and 10 days?
Z= x-

 12 days = 12 - 12 = 0 Prob = 0.5000 = 50%
1.73

 14 days = 14 - 12 = 1.16 Prob = 0.8770 = 87.70%

1.73

 10 days = 10 - 12 = - 1.16 Prob = 0.1230 = 12.30%

1.73
 Exercise .2
Preceding Optimistic Most Pessimisti
Activity
Activity time likely time c time
A - 6 7 8
B - 1 2 9
C - 1 4 7
D A 1 2 3
E A,B 1 2 9
F C 1 5 9
G C 2 2 8
H E,F 4 4 4
I E,F 4 4 10
J D,H 2 5 14
K I,J 2 5 8
 Answer…
14 J 20
7 D 9 0
5 14 6 20
0 A 7
12 2 14 10 H 14
Slack 0
0
0 7 7
7 E 10 10 4 14
0
20 K 25
S 0 B 3 7 3 10
T 0
A 4 20 5 25
R 4 3 7 4 F 9 10 I 15
T
1 5
5 5 10 15 5 20
0 C 4 END
1 4 G 7 25
1 4 5 18
22 3 25
 Answer…

Expected
Activity Variance
time σ = 2.62
A 7 0.11
B 3 1.78 Z = 25 – 25 = 0
C 4 1 2.62
D 2 0.11
E 3 1.78 Probability = 0.50
F 5 1.78 = 50%

G 3 1
H 4 0
I 5 1
J 6 4
K 5 1

25 6.89
Que: Find the actual duration to complete the project with the
probability of 84%

Find ( z ) value for 0.8400 on the normal distribution table.

Difference between 0.8389 and 0.8400 = 0.0011

Difference between 0.8413 and 0.8400 = 0.0013
Nearest is 0.8389

Z = x-


0.99 = x – 25
2.62

X = 27.59 weeks
 Exercise .3
Preceding Optimistic Most likely Pessimistic
Activity
Activity time time time
A - 4 5 12
B A 3 4.5 15
C A 2 3 4
D C 6 8 22
E B 4 6 8
F C 3 4 5
G D,E 2 3 4
H B 5 7 15
I H 3 4 5
J G,I 2 4 6
 Answer…

12 H 20 20 I 24
0 0
6 B 12 12 8 20 20 4 24
0 24 J 28
6 6 12 12 E 18 0
3 24 4 28
0 A 6
15 6 21 19 G 22
0
0 6 6 2
9 D 19 21 6 24
2
6 C 9 11 10 21 END
2 28
8 3 11 9 F 13
15
24 4 28
 Answer…

Expected
Activity Variance Z = 26 – 28 = - 0.66
time 3.02
A 6 1.78 Probability = -0.7454
B 6 4 1 – 0.7454 = 0.2546
= 25%
C 3 0.11
D 10 7.11
E 6 0.44
Z = 29 – 28 = 0.33
F 4 0.11 3.02
G 3 0.11 Probability = 0.6293
H 8 2.78 = 62%
I 4 0.11
J 4 0.44
28 9.11
σ = 3.02
 Answer

Que: Find the actual duration to complete the project with the
probability of 37%

Find ( z ) value for 0.37 on the normal distribution table.

Z value = -0.33

Z = x-

-0.33 = x – 28
3.02
X = 27 days
 TIME / COST TRADE OFF

▪ The project duration usually can be shortened by allocating additional

resources to critical activities.

▪ Certain activities in a project can be shortened, but only by increasing

direct costs such as labor, equipment and materials
 Crashing

▪ Crashing is the process of shortening the project duration.

▪ Crashing a project requires sequentially reducing activity times in such
a way that each rupees spent results in a maximum time reduction.
▪ It can be done only on critical activities.
▪ When crashing process, noncritical activity will also become a critical
activity due to the critical path changes.
 Crashing
Different time and cost can be identified while crashing such as:
 Normal time (Tn) :- The expected activity time under normal
circumstances
 Normal cost (Cn) :- The cost under normal circumstances
 Crash time (Tc) :- The least possible time it can take to complete the
activity
 Crash cost (Cc) :- The cost under expedited or circumstances
Relationship between Normal and
Crash Time and Cost
 Exercise .1

Normal
Preceding Normal Crash cost
Activity Crash time cost
activity time (Rs)
(Rs)
A ---- 4 3 3,000 3,300
B ---- 3 2 2,100 2,450
C A 6 3 7,200 9,300
D A 5 5 2,200 2,200
E B 7 5 3,400 3,900
F B 5 2 2,800 3,400
G C 5 4 3,000 3,650
H D, E 8 6 6,000 7,500
I F 4 3 1,600 1,750
J H, I 2 2 800 800
Total cost 32,100 38,250
 Answer

Slope = Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1 300 300
B 1 350 350
C 3 2100 700
D 0 0 0
E 2 500 250
F 3 600 200
G 1 650 650
H 2 1500 750
I 1 150 150
J 0 0 0
 Answer… (Activity On Node)
C G
6 5
A
4 D
5
H
Star 8 En
t E d
7 J
B 2
3 I
F 4
5

A C G 15
A D H J 19
B E H J 20
B F I J 14
 Answer

Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1 300 300
B 1 350 350
C 3 2100 700
D 0 0 0
E 2 500 250
F 3 600 200
G 1 650 650
H 2 1500 750
I 1 150 150
J 0 0 0
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1 300 300
B 1 350 350
C 3 2100 700
D 0 0 0
E 2 1 500 250
F 3 600 200
G 1 650 650
H 2 1500 750
I 1 150 150
J 0 0 0

A C G 15 15
A D H J 19 19 Total cost 32100
B E H J 20 19 E 250
B F I J 14 14 Total cost 32350
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1 300 300
B 1 350 350
C 3 2100 700
D 0 0 0
E 2 1 500 250
F 3 600 200
G 1 650 650
H 2 1500 750
I 1 150 150
J 0 0 0

A C G 15 15
A D H J 19 19 Total cost 32100
B E H J 20 19 E 250
B F I J 14 14 Total cost 32350
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct Total cost 32100
A 1 300 300 E 250
B 1 350 350
A 300
C 3 2100 700
E 250
D 0 0 0
E 2 1 500 250 Total cost 32900

F 3 600 200
G 1 650 650
H 2 1500 750
I 1 150 150
J 0 0 0

A C G 15 15 14
A D H J 19 19 18
B E H J 20 19 18
B F I J 14 14 14
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct Total cost 32100
A 1 300 300 E 250
B 1 350 350
A 300
C 3 2100 700
E 250
D 0 0 0
E 2 1 500 250 H 750

F 3 600 200 H 750

G 1 650 650 Total cost 34400
H 2 1500 750
I 1 150 150
J 0 0 0

A C G 15 15 14 14
A D H J 19 19 18 16
B E H J 20 19 18 16
B F I J 14 14 14 14
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct Total cost 32100
A 1 300 300 E 250
B 1 350 350
A 300
C 3 2100 700
E 250
D 0 0 0
E 2 1 500 250 H 750

F 3 600 200 H 750

G 1 650 650 Total cost 34400
H 2 1500 750
I 1 150 150
J 0 0 0

A C G 15 15 14 14
A D H J 19 19 18 16
B E H J 20 19 18 16
B F I J 14 14 14 14
 Exercise .1

Normal
Preceding Normal Crash cost
Activity Crash time cost
activity time (Rs)
(Rs)
A --- 14 12 1,800 2,250
B --- 16 12 2,250 2,700
C A 18 14 2,700 3,300
D A 22 16 3,300 4,200
E B 16 10 2,550 3,600
F B 20 14 3,000 3,900
G C 24 20 3,900 4,500
H D, E 26 22 4,200 4,500
I F 28 20 4,500 6,000
Total cost 28,200 34,950

If project manager likes to crash the project completion time to 58 weeks, what is the total cost?
 Answer

Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 2 450 225
B 4 450 112.5
C 4 600 150
D 6 900 150
E 6 1,050 175
F 6 900 150
G 4 600 150
H 4 300 75
I 8 1,500 187.5
 Answer… (Activity On Node)
C G
18 24
A
14 D
22
H En
Star 26 d
t E
16
B
16
F I
20 28

A C G 56
A D H 62
B E H 58
B F I 64
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 2 450 225
B 4 450 112.5
C 4 600 150
D 6 900 150
E 6 1,050 175
F 6 900 150
G 4 600 150
H 4 300 75
I 8 1,500 187.5
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 2 450 225
B 4 3 450 112.5
C 4 600 150
D 6 900 150
E 6 1,050 175
F 6 900 150
G 4 600 150
H 4 300 75
I 8 1,500 187.5

A C G 56 56
A D H 62 62 Total cost 28200
B E H 58 57 B 112.5
B F I 64 63 Total cost 28312.5
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 2 450 225
B 4 2 450 112.5
C 4 600 150
D 6 900 150
E 6 1,050 175
F 6 900 150
G 4 600 150
H 4 300 75
I 8 1,500 187.5

A C G 56 56 56 Total cost 28200

A D H 62 62 62 B 112.5
B E H 58 57 56 B 112.5
B F I 64 63 62 Total cost 28425
 Answer
Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 2 450 225
B 4 2 450 112.5
C 4 600 150
D 6 900 150
E 6 1,050 175
F 6 900 150
G 4 600 150
H 4 300 75
I 8 1,500 187.5

A C G 56 56 56 Total cost 28200

A D H 62 62 62 B 112.5
B E H 58 57 56 B 112.5
B F I 64 63 62 Total cost 28425
 Answer
Cc – Nc Total cost 28200
Activity Nt - Ct Cc - Nc
Nt - Ct B 112.5
A 2 450 225
B 112.5
B 4 1 450 112.5
B 112.5
C 4 600 150
D H 75
6 900 150
E 6 1,050 175 Total cost 28612.5
F 6 900 150
G 4 600 150
H 4 3 300 75
I 8 1,500 187.5

A C G 56 56 56 56
A D H 62 62 62 61
B E H 58 57 56 54
B F I 64 63 62 61
 Answer
Cc – Nc Total cost 28200
Activity Nt - Ct Cc - Nc
Nt - Ct B 112.5
A 2 450 225
B 112.5
B 4 0 450 112.5
B 112.5
C 4 600 150
D H 75
6 900 150
E 6 1,050 175 B 112.5
F 6 900 150 H 75
G 4 600 150 Total cost 28800
H 4 2 300 75
I 8 1,500 187.5

A C G 56 56 56 56 56
A D H 62 62 62 61 60
B E H 58 57 56 54 52
B F I 64 63 62 61 60
 Answer
Cc – Nc Total cost 28200
Activity Nt - Ct Cc - Nc
Nt - Ct B 112.5
A 2 450 225
B 112.5
B 4 0 450 112.5
B 112.5
C 4 600 150
D H 75
6 900 150
E 6 1,050 175 B 112.5
F 6 5 900 150 H 75
G 4 600 150 H 75
H 4 1 300 75 F 150
I 8 1,500 187.5 Total cost 29025

A C G 56 56 56 56 56 56
A D H 62 62 62 61 60 59
B E H 58 57 56 54 52 51
B F I 64 63 62 61 60 59
 Answer
Cc – Nc Total cost 28200
Activity Nt - Ct Cc - Nc
Nt - Ct B 112.5
A 2 450 225
B 112.5
B 4 0 450 112.5
B 112.5
C 4 600 150
D H 75
6 900 150
E 6 1,050 175 B 112.5
F 6 4 900 150 H 75
G 4 600 150 H 75
H 4 0 300 75 F 150
I 8 1,500 187.5 H 75
F 150
A C G 56 56 56 56 56 56 56 Total cost 29250
A D H 62 62 62 61 60 59 58
B E H 58 57 56 54 52 51 50
B F I 64 63 62 61 60 59 58
 Exercise
A Construction Company has just made the winning bid to construct a new
plant for a major manufacturer. The manufacturer needs the plant to go into
operation within a year. Further details of the project are given below in the
table.
Time (week) Cost
Activity Predecessors
Normal Crash Normal Crash
A - 2 1 180,000 280,000
B A 4 2 320,000 420,000
C B 10 7 620,000 860,000
D C 6 4 260,000 340,000
E C 4 3 410,000 570,000
F E 5 3 180,000 260,000
G D 7 4 900,000 1,020,000
H E, G 9 6 200,000 380,000
I C 7 5 210,000 270,000
J F, I 8 6 430,000 490,000
K J 4 3 160,000 200,000
L J 5 3 250,000 350,000
M H 2 1 100,000 200,000
N K, L 6 3 330,000 510,000
 Exercise
1. Construct a network diagram under Activity on arrow (AOA)
and Activity on node (AON) method.
 Exercise
1. Construct a network diagram under Activity on arrow (AOA)
and Activity on node (AON) method.
 Exercise
2. Find the critical path and total duration of the project.
 Exercise
3. Calculate slack time for each activity of the project.
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc
Activity Predecessors Nt - Ct Cc - Nc
Nt - Ct
A - 1 100,000 100,000
B A 2 100,000 50,000
C B 3 240,000 80,000
D C 2 80,000 40,000
E C 1 160,000 160,000
F E 2 80,000 40,000
G D 3 120,000 40,000
H E, G 3 180,000 60,000
I C 2 60,000 30,000
J F, I 2 60,000 30,000
K J 1 40,000 40,000
L J 2 100,000 50,000
M H 1 100,000 100,000
N K, L 3 180,000 60,000
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc A B C D G H M 40
Activity Nt - Ct Cc - Nc
Nt - Ct A B C E H M 31
A 1 100,000 100,000
A B C E F J K N 43
B 2 100,000 50,000
C 3 240,000 80,000 A B C E F J L N 44
D 2 80,000 40,000 A B C I J K N 41
E 1 160,000 160,000 A B C I J L N 42
F 2 80,000 40,000
G 3 120,000 40,000
H 3 180,000 60,000
I 2 60,000 30,000
J 2 60,000 30,000
K 1 40,000 40,000
L 2 100,000 50,000
M 1 100,000 100,000
N 3 180,000 60,000
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc A B C D G H M 40
Activity Nt - Ct
Nt - Ct A B C E H M 31
A 1 100,000
A B C E F J K N 43
B 2 50,000
C 3 80,000 A B C E F J L N 44
D 2 40,000 A B C I J K N 41
E 1 160,000 A B C I J L N 42
F 2 40,000
G 3 40,000
H 3 60,000
I 2 30,000
J 2 30,000
K 1 40,000
L 2 50,000
M 1 100,000
N 3 60,000
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc A B C D G H M 4 4
Activity Nt - Ct
Nt - Ct 0 0
A 1 100,000 A B C E H M 3 3
B 2 50,000 1 1
C 3 80,000 A B C E F J K N 4 4
D 2 40,000 3 2
E 1 160,000
A B C E F J L N 4 4
F 2 40,000
4 3
G 3 40,000
H 3 60,000 A B C I J K N 4 4
I 2 30,000 1 0
J 2 1 30,000 A B C I J L N 4 4
K 1 40,000 2 1
L 2 50,000
Total cost 4,550,000
M 1 100,000
N 3 60,000 J 30,000
Total cost 4,580,000
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc A B C D G H M 40 40 40
Activity Nt - Ct
Nt - Ct A B C E H M 31 31 31
A 1 100,000
A B C E F J K N 43 42 41
B 2 50,000
C 3 80,000 A B C E F J L N 44 43 42
D 2 40,000 A B C I J K N 41 40 39
E 1 160,000 A B C I J L N 42 41 40
F 2 40,000
G 3 40,000
Total cost 4,550,000
H 3 60,000
I 2 30,000 J 30,000
J 2 0 30,000 J 30,000
K 1 40,000 Total cost 4,610,000
L 2 50,000
M 1 100,000
N 3 60,000
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc A B C D G H M 40 40 40 40
Activity Nt - Ct
Nt - Ct A B C E H M 31 31 31 31
A 1 100,000
A B C E F J K N 43 42 41 40
B 2 50,000
C 3 80,000 A B C E F J L N 44 43 42 41
D 2 40,000 A B C I J K N 41 40 39 39
E 1 160,000 A B C I J L N 42 41 40 40
F 2 1 40,000
G 3 40,000
Total cost 4,550,000
H 3 60,000
I 2 30,000 J 30,000
J 2 0 30,000 J 30,000
K 1 40,000 F 40,000
L 2 50,000
Total cost 4,650,000
M 1 100,000
N 3 60,000
 Exercise
4. What is the least expensive way of crashing some activities to
reduce the project duration to the specified level (40 weeks)?
Cc – Nc A B C D G H M 40 40 40 40 40
Activity Nt - Ct
Nt - Ct A B C E H M 31 31 31 31 31
A 1 100,000
A B C E F J K N 43 42 41 40 39
B 2 50,000
C 3 80,000 A B C E F J L N 44 43 42 41 40
D 2 40,000 A B C I J K N 41 40 39 39 39
E 1 160,000 A B C I J L N 42 41 40 40 40
F 2 0 40,000
G 3 40,000
Total cost 4,550,000
H 3 60,000
I 2 30,000 J 30,000
J 2 0 30,000 J 30,000
K 1 40,000 F 40,000
L 2 50,000
F 40,000
M 1 100,000
N 3 60,000 Total cost 4,690,000
 Exercise
A project has activities with following normal and crash cost and time.
Answer the questions given below using the information presented in the
following table. (Time is in week). Indirect cost is Rs. 200.00 Per week.

Predecess Normal Normal

Activity Crash time Crash cost
or activity time cost

A - 4 3 8,000 9,000
B A 5 3 16,000 20,000
C A 4 3 12,000 13,000
D B 6 5 34,000 35,000
E C 6 4 42,000 43,500
F D 5 4 16,000 16,500
G E 7 4 66,000 68,700
H G 4 3 2,000 5,000
I C, D 8 7 5,000 5,900
J H, I, F 3 3 6,000 6,000
 Exercise

a. Construct a network diagram under Activity on arrow (AOA) method.

 Exercise

b. Find the critical path and total duration of the project.

ABDFJ = 23 weeks
ABDIJ = 26 weeks
ACIJ = 19 weeks
ACEGHJ = 28 weeks – Critical path
 Exercise

c. What is the least expensive way of crashing some

activities to reduce the project duration to the specified level
of 25 weeks? Find the total cost of the project after crashing.
 Exercise

Cc – Nc
Activity Nt - Ct Cc - Nc Total cost 207,000
Nt - Ct
A 1 1,000 1000
B 2 4,000 2000
C 1 1,000 1000
D 1 1,000 1000
E 2 1,500 750
F 1 500 500
G 3 2,700 900
H 1 3,000 3000
I 1 900 900
J 0 0 0

A B D F J 23
A B D I J 26
A C I J 19
A C E G H J 28
 Exercise

Cc – Nc
Activity Nt - Ct Cc - Nc Total cost 207,000
Nt - Ct
A 1 1,000 1000
B 2 4,000 2000
C 1 1,000 1000
D 1 1,000 1000
E 2 1,500 750
F 1 500 500
G 3 2,700 900
H 1 3,000 3000
I 1 900 900
J 0 0 0

A B D F J 23
A B D I J 26
A C I J 19
A C E G H J 28
 Exercise

Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1 1,000 1000
B 2 4,000 2000
Total cost 207,000
C 1 1,000 1000
E 750
D 1 1,000 1000
E 2/1 1,500 750 Total cost AC 207,750
F 1 500 500
G 3 2,700 900
H 1 3,000 3000
I 1 900 900
J 0 0 0

A B D F J 23 23
A B D I J 26 26
A C I J 19 19
A C E G H J 28 27
 Exercise

Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1 1,000 1000
B 2 4,000 2000
Total cost 207,000
C 1 1,000 1000
E 750
D 1 1,000 1000
E 2/1/0 1,500 750 E 750
F 1 500 500 Total cost AC 208,500
G 3 2,700 900
H 1 3,000 3000
I 1 900 900
J 0 0 0

A B D F J 23 23 23
A B D I J 26 26 26
A C I J 19 19 19
A C E G H J 28 27 26
 Exercise

Cc – Nc
Activity Nt - Ct Cc - Nc
Nt - Ct
A 1/0 1,000 1000
B 2 4,000 2000
Total cost 207,000
C 1 1,000 1000
E 750
D 1 1,000 1000
E 2/1/0 1,500 750 E 750
F 1 500 500 A 1,000
G 3 2,700 900 Total cost AC 209,500
H 1 3,000 3000
I 1 900 900
J 0 0 0

A B D F J 23 23 23 22
A B D I J 26 26 26 25
A C I J 19 19 19 18
A C E G H J 28 27 26 25
 Exercise

Cc – Nc Total cost 207,000

Activity Nt - Ct Cc - Nc
Nt - Ct E 750
A 1/0 1,000 1000
E 750
B 2 4,000 2000
A 1,000
C 1 1,000 1000
D 1 1,000 1000 Total cost AC 209,500
E 2/1/0 1,500 750
F 1 500 500 Total cost = direct cost + indirect cost
G 3 2,700 900 = 209500.00 + (25 weeks x 200.00)
H 1 3,000 3000 = 209500.00 + 5000.00
I 1 900 900 = 214500.00
J 0 0 0

A B D F J 23 23 23 22
A B D I J 26 26 26 25
A C I J 19 19 19 18
A C E G H J 28 27 26 25
Thank you