UNIT - IV

Project Network
 INTRODUCTION
◼ Schedule converts action plan into operating time
table
◼ Basis for monitoring and controlling project
◼ Scheduling more important in projects than in
production, because unique nature
◼ Sometimes customer specified/approved
requirement-e.g: JKR projects
◼ Based on Work Breakdown Structure (WBS)

Chapter 8 Scheduling, PERT, Critical Path Analysis 2

 NETWORK TECHNIQUES

PERT CPM
-Program Evaluation and Critical Path Method
Review Technique Developed by El Dupont
- developed by the US for Chemical Plant
Navy with Booz Shutdown Project- about
Hamilton Lockheed same time as PERT
- on the Polaris
Missile/Submarine
program 1958

✓Both use same calculations, almost similar

✓Main difference is probabilistic and deterministic in time estimation
✓Gantt Chart also used in scheduling

Chapter 8 Scheduling, PERT, Critical Path Analysis 3

 NETWORK

◼ Graphical portrayal of activities and event

◼ Shows dependency relationships between
tasks/activities in a project
◼ Clearly shows tasks that must precede
(precedence) or follow (succeeding) other tasks
in a logical manner
◼ Clear representation of plan – a powerful tool
for planning and controlling project

Chapter 8 Scheduling, PERT, Critical Path Analysis 4

Example of Simple Network – Survey

Chapter 8 Scheduling, PERT, Critical Path Analysis 5

Example of Network – More Complex

Chapter 8 Scheduling, PERT, Critical Path Analysis 6

 DEFINITION OF TERMS IN A NETWORK
◼ Activity : any portions of project (tasks) which required
by project, uses up resource and consumes
time – may involve labor, paper work,
contractual negotiations, machinery operations
Activity on Arrow (AOA) showed as arrow, AON
– Activity on Node
◼ Event : beginning or ending points of one or more
activities, instantaneous point in time, also
called ‘nodes’

◼ Network : Combination of all project activities and the events

PRECEEDING SUCCESSOR
ACTIVITY

EVENT

Chapter 8 Scheduling, PERT, Critical Path Analysis 7

Emphasis on Logic in Network Construction
◼ Construction of network should be based on logical or technical
dependencies among activities
◼ Example - before activity ‘Approve Drawing’ can be started the
activity ‘Prepare Drawing’ must be completed
◼ Common error – build network on the basis of time logic (a feeling
for proper sequence ) see example below

WRONG !!! CORRECT ✓

Chapter 8 Scheduling, PERT, Critical Path Analysis 8
Example 1- A simple network
Consider the list of four activities for making a simple product:

Activity Description Immediate

predecessors
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C

Immediate predecessors for a particular activity are the activities

that, when completed, enable the start of the activity in question.

Chapter 8 Scheduling, PERT, Critical Path Analysis 9

 Sequence of activities
◼ Can start work on activities A and B anytime, since
neither of these activities depends upon the
completion of prior activities.
◼ Activity C cannot be started until activity B has been
completed
◼ Activity D cannot be started until both activities A
and C have been completed.
◼ The graphical representation (next slide) is referred to
as the PERT/CPM network

Chapter 8 Scheduling, PERT, Critical Path Analysis 10

 Network of Four Activities
Arcs indicate project activities

A D
1 3 4

B C

Nodes correspond to the beginning

and ending of activities

Chapter 8 Scheduling, PERT, Critical Path Analysis 11

Example 2
Develop the network for a project with following activities and
immediate predecessors:
Activity Immediate
predecessors
A -
B -
C B
D A, C
E C
F C
G D,E,F

Try to do for the first five (A,B,C,D,E) activities

Chapter 8 Scheduling, PERT, Critical Path Analysis 12

 Network of first five activities

A D
1 3 4

E
B

C 5
2 We need to introduce a
dummy activity

Chapter 8 Scheduling, PERT, Critical Path Analysis 13

 Network of Seven Activities
1 A 3 D 4 G
7
dummy E
B
C 5 F
2 6
•Note how the network correctly identifies D, E, and F as the
immediate predecessors for activity G.

•Dummy activities is used to identify precedence relationships

correctly and to eliminate possible confusion of two or more
activities having the same starting and ending nodes

•Dummy activities have no resources (time, labor, machinery, etc) –

purpose is to PRESERVE LOGIC of the network

Chapter 8 Scheduling, PERT, Critical Path Analysis 14

 EXAMPLES OF THE USE OF DUMMYACTIVITY
Network concurrent activities
a
a 2

1 2 1 Dummy

b 3
b
WRONG!!! RIGHT ✓

Activity c not WRONG !

required for e
a
a e
d
1
b 1 b
e
d
c
2
c
WRONG
RIGHT
!!!
✓
RIGHT ✓

Chapter 8 Scheduling, PERT, Critical Path Analysis 15

 WRONG!!! RIGHT!!!

a d a d
1 1

b e b
2 2 4
e

c f c f
3 3

a precedes d.
a and b precede e,
b and c precede f (a does not precede f)

Chapter 8 Scheduling, PERT, Critical Path Analysis 16

Scheduling with activity time
Activity Immediate Completion
predecessors Time (week)
A - 5
B - 6
C A 4
D A 3
E A 1
F E 4
G D,F 14
H B,C 12
I G,H 2
Total …… 51

This information indicates that the total time required to complete

activities is 51 weeks. However, we can see from the network that several
of the activities can be conducted simultaneously (A and B, for example).

Chapter 8 Scheduling, PERT, Critical Path Analysis 17

 Earliest start & earliest finish time
◼ We are interested in the longest path through the
network, i.e., the critical path.

◼ Starting at the network’s origin (node 1) and using a

starting time of 0, we compute an earliest start (ES) and
earliest finish (EF) time for each activity in the network.

◼ The expression EF = ES + t can be used to find the

earliest finish time for a given activity.
For example, for activity A, ES = 0 and t = 5; thus the
earliest finish time for activity A is
EF = 0 + 5 = 5

Chapter 8 Scheduling, PERT, Critical Path Analysis 18

Arc with ES & EF time
EF = earliest finish time

ES = earliest start time

Activity

1
t = expected activity
time

Chapter 8 Scheduling, PERT, Critical Path Analysis 19

Network with ES & EF time
D[5,8] 5
2 3

7
4
1 6

Earliest start time rule:

The earliest start time for an activity leaving a particular node is equal to
the largest of the earliest finish times for all activities entering the node.

Chapter 8 Scheduling, PERT, Critical Path Analysis 20

 Activity, duration, ES, EF, LS, LF
EF = earliest finish time

ES = earliest start time

Activity

2
LF = latest finish time
LS = latest start time

Chapter 8 Scheduling, PERT, Critical Path Analysis 21

 Latest start & latest finish time
◼ To find the critical path we need a backward pass calculation.

◼ Starting at the completion point (node 7) and using a latest

finish time (LF) of 26 for activity I, we trace back through the
network computing a latest start (LS) and latest finish time
for each activity

◼ The expression LS = LF – t can be used to calculate latest start

time for each activity. For example, for activity I, LF = 26 and t
= 2, thus the latest start time for activity I is
LS = 26 – 2 = 24

Chapter 8 Scheduling, PERT, Critical Path Analysis 22

 Network with LS & LF time
D[5,8] 5
2 3[7,10]

7
4
1 6

Latest finish time rule:

The latest finish time for an activity entering a particular node is equal to
the smallest of the latest start times for all activities leaving the node.

Chapter 8 Scheduling, PERT, Critical Path Analysis 23

Slack or Free Time or Float
Slack is the length of time an activity can be delayed without affecting the
completion date for the entire project.
For example, slack for C = 3 weeks, i.e Activity C can be delayed up to 3
weeks
(start anywhere between weeks 5 and 8).
3
2
ES LS EF EF
5 8 9 12

LF-EF = 12 –9 =3

LS-ES = 8 – 5 = 3

LF-ES-t = 12-5-4 = 3

Chapter 8 Scheduling, PERT, Critical Path Analysis 24

Activity schedule for our example
Activity Earliest Latest Earliest Latest Slack Critical
start (ES) start (LS) finish (EF) finish (LF) (LS-ES) path

A 0 0 5 5 0 Yes
B 0 6 6 12 6
C 5 8 9 12 3
D 5 7 8 10 2
E 5 5 6 6 0 Yes
F 6 6 10 10 0 Yes
G 10 10 24 24 0 Yes
H 9 12 21 24 3
I 24 24 26 26 0 Yes
Chapter 8 Scheduling, PERT, Critical Path Analysis 25
 IMPORTANT QUESTIONS
◼ What is the total time to complete the project?
◼ 26 weeks if the individual activities are completed on schedule.

◼ What are the scheduled start and completion times for each activity?
◼ ES, EF, LS, LF are given for each activity.

◼ What activities are critical and must be completed as scheduled in order

to keep the project on time?
◼ Critical path activities: A, E, F, G, and I.

◼ How long can non-critical activities be delayed before they cause a delay
in the project’s completion time
◼ Slack time available for all activities are given.

Chapter 8 Scheduling, PERT, Critical Path Analysis 26

 Importance of Float (Slack) and Critical Path
1. Slack or Float shows how much allowance each activity has, i.e how
long it can be delayed without affecting completion date of project

2. Critical path is a sequence of activities from start to finish with zero

slack. Critical activities are activities on the critical path.

3. Critical path identifies the minimum time to complete project

4. If any activity on the critical path is shortened or extended, project

time will be shortened or extended accordingly

Chapter 8 Scheduling, PERT, Critical Path Analysis 27

 Importance of Float (Slack) and Critical Path (cont)
5. So, a lot of effort should be put in trying to control activities along
this path, so that project can meet due date. If any activity is
lengthened, be aware that project will not meet deadline and some
action needs to be taken.

6. If can spend resources to speed up some activity, do so only for

critical activities.

7. Don’t waste resources on non-critical activity, it will not shorten the

project time.

8. If resources can be saved by lengthening some activities, do so for

non-critical activities, up to limit of float.

9. Total Float belongs to the path

Chapter 8 Scheduling, PERT, Critical Path Analysis 28

 PERT For Dealing With Uncertainty
◼ So far, times can be estimated with relative certainty, confidence

◼ For many situations this is not possible, e.g Research, development,

new products and projects etc.

◼ Use 3 time estimates

m= most likely time estimate, mode.
a = optimistic time estimate,
b = pessimistic time estimate, and

Expected Value (TE) = (a + 4m + b) /6

Variance (V) = ( ( b – a) / 6 ) 2
Std Deviation (δ) = SQRT (V)

Chapter 8 Scheduling, PERT, Critical Path Analysis 29

 Precedences And Project Activity Times
Immediate Optimistic Most Likely Pessimistic EXP Var S.Dev
Activity Predecessor Time Time Time TE V 

a - 10 22 22 20 4 2
b - 20 20 20 20 0 0
c - 4 10 16 10 4 2
d a 2 14 32 15 25 5
e b,c 8 8 20 10 4 2
f b,c 8 14 20 14 4 2
g b,c 4 4 4 4 0 0
h c 2 12 16 11 5.4 2.32
I g,h 6 16 38 18 28.4 5.33
j d,e 2 8 14 8 4 2

Chapter 8 Scheduling, PERT, Critical Path Analysis 30

 The complete network

d 6
2
(15,25)
j
a (8,4)
(20,4) e
(10,4)
1 3 f 7
b (14,4)
(20,0)
g
c
(4,0)
(10,4) i
(18,28.4)
4 h 5
(11,5.4)

Chapter 8 Scheduling, PERT, Critical Path Analysis 31

 Figure 8-13 The complete Network
EF=20 35
d 6
2
a (15,25) j
(20,4) (8,4)
b e
20 43
(20,0) (10,4)
f CRIT. TIME = 43
1 3 7
(14,4)
g
c (4,0)
(10,4) i
(18,28.4)
4 h 5
(11,5.4)
10 24

Chapter 8 Scheduling, PERT, Critical Path Analysis 32

 Critical Path Analysis (PERT)
Activity LS ES Slacks Critical ?
a 0 0 0 Yes

b 1 0 1

c 4 0 4

d 20 20 0 Yes

e 25 20 5

f 29 20 9

g 21 20 1

h 14 10 4

i 25 24 1

j 35 35 0 Yes

Chapter 8 Scheduling, PERT, Critical Path Analysis 33

Assume, PM promised to complete the project in the fifty days.
What are the chances of meeting that deadline?
Calculate Z, where

Z = (D-S) / V
Example,
D = 50; S(Scheduled date) = 20+15+8 =43; V = (4+25+4) =33
Z = (50 – 43) / 5.745
= 1.22 standard deviations.

The probability value of Z = 1.22, is 0.888

1.22

Chapter 8 Scheduling, PERT, Critical Path Analysis 34

What deadline are you 95% sure of meeting

Z value associated with 0.95 is 1.645

D = S + 5.745 (1.645)
= 43 + 9.45
= 52.45 days

Thus, there is a 95 percent chance of finishing the project by 52.45

days.

Chapter 8 Scheduling, PERT, Critical Path Analysis 35

 Comparison Between CPM and PERT
CPM PERT
1 Uses network, calculate float or slack,
identify critical path and activities, Same as CPM
guides to monitor and controlling
project
2 Uses one value of activity time Requires 3 estimates of activity time
Calculates mean and variance of time

3 Used where times can be estimated Used where times cannot be estimated
with confidence, familiar activities with confidence.
Unfamiliar or new activities

4 Minimizing cost is more important Meeting time target or estimating

percent completion is more important

5 Example: construction projects, Example: Involving new activities or

building one off machines, ships, etc products, research and development
etc
Chapter 8 Scheduling, PERT, Critical Path Analysis 36
 BENEFITS OFCPM / PERT NETWORK

Consistent framework for planning, scheduling,

monitoring, and controlling project.

 Shows interdependence of all tasks, work packages, and

work units.

 Helps proper communications between departments and

functions.

 Determines expected project completion date.

 Identifies so-called critical activities, which can delay the

project completion time.

Chapter 8 Scheduling, PERT, Critical Path Analysis 37

 BENEFITS OFCPM / PERT NETWORK (cont.)

 Identified activities with slacks that can be delayed for

specified periods without penalty, or from which
resources may be temporarily borrowed

 Determines the dates on which tasks may be started or

must be started if the project is to stay in schedule.

 Shows which tasks must be coordinated to avoid resource

or timing conflicts.

 Shows which tasks may run in parallel to meet project

completion date

Chapter 8 Scheduling, PERT, Critical Path Analysis 38

 Gantt Charts
◼ Since 1917; Useful for showing work vs time in form of bar charts
e.g.

• Can draw directly or from CPM/PERT network

Chapter 8 Scheduling, PERT, Critical Path Analysis 39

 Modified PERT/CPM diagram from network

a d
1 2 6 7 Legend
e
 Scheduled Start
3  Scheduled Finish
− Actual Progress
f  Unavailable
3
 Current Date
b  Milestone
1 3 5 Scheduled
 Milestone
Achieved

c dummy
1 4

h
4

0 5 10 15 20 25 30 35 40 45
Days

Chapter 8 Scheduling, PERT, Critical Path Analysis 40

 GANTT CHART

Chapter 8 Scheduling, PERT, Critical Path Analysis 41

Chapter 8 Scheduling, PERT, Critical Path Analysis 42
Chapter 8 Scheduling, PERT, Critical Path Analysis 43
Gantt Charts and CPM/PERT Networks
Gantt Charts:

◼ Even though a lot of info, easy to read and , understand to

monitor and follow progress.

◼ Not very good for logical constraints

◼ Should be used to COMPLEMENT networks, not replace

Chapter 8 Scheduling, PERT, Critical Path Analysis 44

 RESOURCE ANALYSIS AND SCHEDULING

▪ Ability to carry out projects depend on the availability

of resources

▪Analyze resource implication

-How requirements can be met and changes needed

▪Use resources efficiently

▪Use network to give information about time, resources

and cost

Chapter 8 Scheduling, PERT, Critical Path Analysis 45

Activities D, E, F, G and H require fitters.
Construct a bar chart with activities at their EST indicating
person required and total float.

D 22222222
E 222222
Activity

F 22
G 2222
H 4 4 44 444 44444
0 5 10 15 20
Time
Add up across all activities to get the total number of men
required.
Chapter 8 Scheduling, PERT, Critical Path Analysis 46
Convert the bar chart to a histogram

Total number of man required

14
13
12
11
10
9
8
7
6
5
4
3
2
1
0 5 10 15 20
Time

Resource analysis before scheduling

Shows: i) Variation from week to week (fitters)
ii) Maximum number of person required (12) during
week 5-6
Examine resource implication.
Chapter 8 Scheduling, PERT, Critical Path Analysis 47
Example
If only 8 fitters are available at any period during the projects:

New bar chart:

D 22222222
E 222222
Activity

F 22
G 2222
H 4 4 44 444 44444
0 5 10 15 20
Time

Chapter 8 Scheduling, PERT, Critical Path Analysis 48

Additional Restriction – no fitters available until the end of
week 5.

Revised Schedule:

D 22222222
E 222222
Activity

F 22
G 2222
H 4 4 44 444 44444
0 5 10 15 20
Time

Chapter 8 Scheduling, PERT, Critical Path Analysis 49

Resource constraints relates to:
1. Variations in resource requirements
2. Resource availability

Smaller variations:
1. Easier control of the job
2. Better utilization of resources

Big variations:
• Frequent moving of manpower
• Require close control
• Affect efficiency

Chapter 8 Scheduling, PERT, Critical Path Analysis 50

 Total number of man required

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Time

Histogram showing large resource variations

Chapter 8 Scheduling, PERT, Critical Path Analysis 51