Network Based Scheduling:

 For bigger projects involving a large number of

activities,a Network based scheduling can be
used. It solves complex project scheduling
problems.
 There are two popular network-scheduling
techniques:
Critical Path Method (CPM) –
Program Evaluation Review Technique(PERT) –
Was developed in the year 1958 by the US Navy.
 Terminologies used in Network-scheduling
 Activity: An activity is any identifiable job that has a beginining
and an end. An activity consumess time, manpower and
material resources.
 Following are some examples od activities:
 Excavation of foundation.
 Placing of foundation concrete
 Construction of walls
 Construction of roofing
 Wiring & electrical work
 As seen, all activities have definite begining and definite end &
they consume resources.
 An activity is represented by a straight arrow with cirles at both
the ends. The direction of the arrow indicates the flow of the
project.
Terminologies used in Network-scheduling
 The symbol of the activity and its duration are represented as under

A
15

B
6

 Event: An event also called as 'node' is the beginning or end of an

activity. An event does not consume time, manpower or material
resources. An event represents a specific point in time. Event is
represented by a circle.
A
1 2
A 15
Start excavation Complete
15
Complete for foundation- excavation
Start excavation
for foundation excavation event 1 -event 2
Terminologies used in Network-scheduling
 Relationship Among Activities: As mentioned earlier, a network
is a graphical representation of the logical sequence of all the
activities of a project which are interrelated among
themselves. There are 3 possible relationships between the
different activities.
 Concurrent Activities:
 Preceding Activity:
 Succeeding Activity:
 Dummy Activity: Dummy activity is an imaginary activity
included in a network. Since it is not a real activity, it does
not consume time, manpower and material resources. It is
included in the network to maintain the network logic and
to avoid ambiguity. Dummy activity is represented by a
dotted arrow.
Terminologies used in Network-scheduling
Rules for drawing network diagram:
All activities shall be represented by way of straight arrow pointing
towards the right.
There shall not be any criss-crossing of arrows.

C E
D
A D E
B F
F A B
✔
C
X G

The arrow of a network shall not form loops.

Critical Path Method:
 Was developed in the year 1957 by Morgan R. Walker of DU
Pont and James E. Kelly of Reminton Rand
A network represents the logical sequence of activities contained
in a project. Each path in a network will have a different duration.
The path that has the longest duration is called the critical path
and the activities lie on the critical path are called critical
activities.
If there are say 5 paths and if the duration of these paths are ,
say 15 weeks, 13 weeks, 14 weeks, 25 weeks, & 26 weeks
respectively, the path having 26 weeks duration is the critical
path.
This represents that the project duration is 26 weeks. Though
other paths in the network have duration less than 26 weeks, the
project will be completed in all respects only by the end of the 26 th
week.
 Characteristics of critical path:

The critical path determines the earliest possible time
in which the project can be completed.

The benefit of using the critical path method for the
project manager is that it’s an effective way to see
which delays can be handled with built-in slack time --
the “float” -- and which will cause a project to fall
behind schedule. Since there is no float on the critical
path by definition, if a deadline is set in stone it
means that the manager has to take steps to get
everything back on schedule. In some cases,
activities can be pruned or performed in parallel,
which is known as “fast tracking,” and in some cases,
added resources shrink the amount of time needed to
complete tasks along the way, known as “crashing.”
Critical Path Method: Example
Identify all the paths through the network. Find out the critical
path and the project duration
A, B, C.....N are the activities
The following are the paths in the given network.
1) A -> D -> G -> K
2) A -> D -> H -> L
3) A -> E -> I -> L
4) B -> I -> L
5) C -> J -> N
6) C -> J -> M -> L
7) C -> F -> I -> L
Critical Path Method: Example
D G
12 20
K
E 3 H 6
A10 4
B I L
9 9 18

C F8 M
12 7 N
9
J
13
Critical Path Method: Example
Path Duration
ADGK 10 + 12 + 20 + 6 = 48 days

ADHL 10 + 12 + 3 + 18 = 43 days

ADIL 10 + 4 + 9 + 18 = 41 days

BIL 9 + 9 + 18 = 36 days

CJN 12 + 13 + 9 = 34 days

CJML 12 + 13 + 7 + 18 = 50 days

CFIL 12 + 8 + 9 + 18 = 47 days
 Finding Critical Path

To find critical path two series of computations
are used, namely Forward pass computation &
Backward pass computation.
Forward pass computation:- This is a method of
computation of starting time of events. The computation begins
from the initial event and moves towards the final event. This
series of computation is done to arrive at the Earliest Start Time
(TE) of all the events.
• Left to right (start to finish)
• Determines Early Start (ES)
• ES(previous event) + duration = TE
 Finding Critical Path

Backward Pass computation:- This is a

method of computation of the finish time of events. The
computation begins from the final event and moves towards
the initial event. This series of computation is done to arrive
at the Latest Finish Time (TL) of all the events.
• Right to left (finish to start)
• Determines Late Start (LS) and Late Finish
(LF)
• LF – duration = TL
 Finding Critical Path

Find out the Earliest Start Time of events 1,2,3 & 4

A B C
1 2 3 4
7 days 3 days 10 days

TE = 0 TE = 7 TE = 10 TE = 20
A B C
1 7 days
2 3 4
3 days 10 days
 Slack time & critical path

Events 1,3,6,7 & 8 have zero slack. The path connecting
these events is the critical path.

Event TL TE Slack(TL – TE)

1 0 0 0
2 19 5 14
3 4 4 0
4 26 12 14
5 10 9 1
6 12 12 0
7 23 23 0
8 34 34 0
CPM – Activity Float Analysis


For a better control of project implementation and
effective resource allocation, a detailed study of non-
critical activities with regard to the 'free time' available is
important. The free time available for the activity is known
as float. This study of free time is known as Activity
Float Analysis.

Float of an activity represents the excess of available
time over its duration. Float, therefore, is the leeway
available to the project planner for his scheduling
activity.
CPM – Activity Float Analysis
Types of floats:-
Float is mainly of two types: total float and free float. All
activities lying on the non-critical paths have total float and
some of them may also have free float. The total float and
free float have following significance.

Total float:- Total float signifies the maximum delay that can
be permitted in the completion of the activity without affecting
the project completion time. Total float can be interpreted in
two ways :
i) The maximum time available to delay the commencement of
an activity.
ii) The maximum expansion in the duration of the activity.
If total float is used up in an activity, that activity and
subsequent activities in the chain become critical
CPM – Activity Float Analysis – Total
float
Total float can be obtained as under:

Total float = Latest occurance time of the successding event

minus
Earliest occurrence time of the preceding event
minus
Duration of the activity

t ij
i j
(TL)i (TE)j

Total float of activity (i-j) = (TE)j – (TL)i - t ij

CPM – Activity Float Analysis – Free float
» Free float : Free float is the amount of time an activity can be
delayed without affecting the commencement of a
succeeding activity at its earliest start time but may affect the
float of previous activity. Free float results when all preceding
activities occur at the earliest event times and all succeeding
activities also occur at the earliest event time.
Therefore,
Free float = Earliest occurance time of the successding event
minus
Earliest occurrence time of the preceding event
minus
Duration of the activity

= (TE)j – (TE)i - t ij
CPM– Activity Float Analysis – Independent float
» Independent float : Sometimes, it may be desirable to know
what spare time is present in an activity if it started as late as
possible and finished as early as possible. This characteristic
is known as independent float.
» Independent float , therefore, the amount of time an activity
can be delayed when all preceding activities are completed as
late as possible and all succeeding activities are completed
as early as possible.
» Independent float neither affects the float of preceding
activitirs nor that of the succeeding activies
Independent float = Earliest occurance time of the successding event
minus
Latest occurrence time of the preceding event
minus
Duration of the activity

= (TE)j – (TL)i - t ij
 Finding Critical Path-Ex
For the following diagram find out the Critical Path & Project duration
using forward pass & backward pass:-

C
2 4
6
A G
3 9
D
7
1
B
4
E H K 8
3 6 11
7 11
2
F I J
7 2
7
5
 Finding Critical Path

The Solution:- (Forward Pass)

TE= 3 T E= 9
C
2 4
6
A G
3 9
T E= 0 D
4
1
TE= 35
B TE= 13
4
E H K 8
3 6 11
7 11
2
TE= 4 TE= 24
F I J
7 2
7
5
TE= 11
 Finding Critical Path

The Solution:- (Backward Pass)

T E= 3 T E= 9
TL= 20 TL= 26
C
2 4
6

TE= 0 A G
3 9
TL= 0 D
7 TE= 35
1 TE= 13
B TL= 13 TL= 35
4
E H K 8
3 6 11
7 11
2
TE= 4 TE= 24
F I J
7 2 TL= 24
TL= 4 7
5
TE= 11
TL= 11
 Activity ij (TL)j (TE)i T ij Total float = (TL)j – (TE)i – t ij

B 4 0 4 (4–0–4)=0

E 13 4 2 ( 13 – 4 – 2 ) = 7

F 11 4 7 ( 11 – 4 – 7 ) = 0

I 13 11 2 ( 13 – 11 – 2 ) = 0

H 24 13 11 ( 24 – 13 – 11) = 0

J 24 11 7 ( 24 – 11 – 7 ) = 6

K 35 24 11 ( 35 – 24 – 11 ) = 0

Critical path is that path connecting activities

having Total Float Equal to zero
 Finding Critical Path

The Solution:- (Backward Pass)

T E= 3 T E= 9
TL= 20 TL= 26
C
2 4
6

TE= 0 A G
3 9
TL= 0 D
7 TE= 35
1 TE= 13
B TL= 13 TL= 35
4
E H K 8
3 6 11
7 11
2
TE= 4 TE= 24
F I J
7 2 TL= 24
TL= 4 7
5
TE= 11
TL= 11
PERT – Programme Evaluation and Review
Technique:


One major difference between PERT and CPM is the
former's adaptability for the projects where high digree of
uncertainty prevails and activity times during performance
are expected to vary considerably for certain activities.

The concept of multiple times (three times estimates) was
evolved in PERT to reduce the incedence of uncertainty
in project planning. The are :-
a) Optimistic time (to) : It is the shortest possible time in
which an activity can be completed under ideal conditions.
In arriving at the optimum time estimate, it is assumed that
every thing is favorable in completing the activity in the
shortest possible time.
PERT – Programme Evaluation and Review
Technique:
b) Pessimistic time (tp): It is the maximum possible time that it
would take to complete an activity under worst conditions. In
arriving at the pessimistic time estimate, it is assumed
that every thing is unfavorable for completing the activity in
time and every possible delay and difficult situation is
encountered.
c) Most likely time (tm): It is between optimistic and
pessimistic time estimates. It is the time in which an activity can
be completed under normal conditions. I arriving at the most
likely time, it is assumed that conditions are neither favourable
nor unfavourable, but normal.
The supervisor or the foreman who is in direct charge of an activity
is asked to estimate the three time estimates taking into account,
favorable, unfavorable and normal conditions. In assuming
unfavorable conditions, extremely unfavorable situations such as
earthquake, floods, fires, labour strikes etc., are excluded.
PERT – Programme Evaluation and Review
Technique:
PERT arrives at the expected time (te) for an activity , taking into
account the three time estimates to, tp, tm .
PERT assumes that the optimistic time (to), the pessimistic time (tp)
are equally likely to occur while the most likely time [tm] is four
times more likely to occurrthan the other two ( to & tp ). Hence for
arriving at the expected time (te) equal weights are assigned to to &
tp while weight of tm is taken as 4 times that of t o and tp
Therefore the formula to calculate (te) is :

t o + 4 t m + tp
te =
6
PERT – Programme Evaluation and Review
Technique:

Probability of occurance of
activity time

to tm te tp
Activity time
PERT – Programme Evaluation and Review
Technique:

After having arrived at the expected time (te) for each activity, the
critical path is found out by making forward-pass and backward-
pass computation, calculating the Earliest Start Time (TE) and
the Latest Finish Time (TL) of all the events, finding the slack of
events and connecting the events with zero slack.

Ex.:
PERT – Programme Evaluation and
Review Technique:

There are three basic differences between a PERT
network and CPM network.
1. PERT is event oriented while CPM is activity oriented – PERT
prepares network from events while CPM builds it from
activities.
2. PERT provides for an allowance for uncertainty while CPM
does not - PERT makes three time estimates for each activity
while CPM makes one time estimate.
3. Activity times in CPM technique are related to costs while it is
not so in PERT since it is event oriented.
PERT : VARIANCE and STANDARD DEVIATION
Variation in the Activity Times:
Consider the following two time estimates:
Activi Optimistic Most Likely Pessimistic Expected
ty Time Time Time Time

A 2 3 4 3
B 1 2 9 3

Optimistic Time and Pessimistic Time is more for activity B than activity A

There are two measures of variability of possible activity time viz.,

i) Variance
ii) Standard deviation
PERT : VARIANCE and STANDARD DEVIATION
2
T(p) –t(o)
Variance (2) =
6

2
T(p) –t(o) T(p) –t(o)
Standard deviation () = =
6 6
PERT : VARIANCE and STANDARD DEVIATION
Use of variance/standard deviation of project
length for managerial decision

Activity Optimistic T Most likely T Pessimistic T Expected T Variance Std deviation

A 8 10 12

B 5 8 11

C 4 14 24

D 3 7 11

E 1 6 11

F 7 8 9
 TE = 10

TL = 10
TE = 0 2
A C TE = 25
TL = 0 D

1 TL = 25
F
4 5
B
E TE = 17

3 TL = 17

TE = 8

TL = 11
PERT : VARIANCE and STANDARD DEVIATION
Use of variance/standard deviation of project
length for managerial decision

Activity Optimistic T Most likely T Pessimistic T Expected T Variance Std deviation

A 8 10 12 10 0.44

B 5 8 11 8 1.00

C 4 14 24 14 11.11

D 3 7 11 7 1.78

E 1 6 11 6 2.78

F 7 8 9 8 0.11
PERT : VARIANCE and STANDARD DEVIATION
Use of variance/standard deviation of project
length for managerial decision

Activity Optimistic T Most likely T Pessimistic T Expected T Variance Std deviation

A 8 10 12 10 0.44 0.67

B 5 8 11 8 1.00 1.00

C 4 14 24 14 11.11 3.33

D 3 7 11 7 1.78 1.33

E 1 6 11 6 2.78 1.67

F 7 8 9 8 0.11 0.33
PERT : VARIANCE and STANDARD DEVIATION
Use of variance/standard deviation of project
length for managerial decision

Path Duration Type Variance Std. Deviation

1–2–5 24 days Non (0.44 + 11.11) = Sq. r of 11.55 =

critical 11.55 3.40
1 – 2 – 4 – 5 25 days Critical (0.44 + 1.78 + 0.11) Sq. r of 2.33 =
= 2.33 1.53

1 – 3 – 4 – 5 22 days Non (1.00 + 2.78 + 0.11) Sq. r of 3.89 =

critical = 3.89 1.97
PERT : VARIANCE and STANDARD DEVIATION
Use of variance/standard deviation of project
length for managerial decision
•As seen from above there are two paths viz., 1 – 2 – 5 and 1 – 2 – 4 – 5 which pass
through events with zero slack.
•However, since the duration of path 1 – 2 – 4 – 5 is more, it is chosen as the critical
path.
•The point to be noted is that since we have relied only upon the Expected Time of
activities, the variability of the time estimates also has a bearing. The project time
along path 1 – 2 – 3 is 24 days, which is just one day short of the project time along
the critical path.
•However, the standard deviation od project time along the path
1 – 2 – 5 is 3.40 as against the the project time along the critical path 1 – 2 – 4 – 5 is
1.53.
PERT : VARIANCE and STANDARD DEVIATION
Use of variance/standard deviation of project
length for managerial decision
•This means that there is more uncertainty surrounding the estimated project time
along the path 1 – 2 – 5 .
•This inturn means that the actual time required to complete the project is likely to
differ to greater extent along path 1 – 2 – 5 than along the critical path.

Thus, in view of the greater susceptiblility to variation and also

in view of the marginal short fall of one day in project duration,
Path, 1 – 2 – 5 assumes equal importance as the critical path