OUTPUT

1. PERT NETWORK DIAGRAM

In constructing the PERT Network Diagram, procuring was not included. Using the
projected cash flow, the activity can be finished within 30 days from mobilization to moving out.
The critical activities identified in the flow of the project are mobilization, earthworks, concrete
works, backfill, waterproofing/slab on fill, roof framing, installation of purlins or installation of
gutter and flashing, roofing, painting works, and moving out. Most of the activities are due to
having the 30 days restriction for the project duration.

Figure 1 : PERT Network Diagram

2. TIME ESTIMATE TABLE

From the given activity datasheet, we used the given durations as normal time (t n). In
selecting the optimistic time (to) and pessimistic time (tp), we assumed equal distribution. For
durations that only need 1 day, the optimistic time remains the same as the normal time.

Activity Name to tn tp ta o2

1 * MOBILIZATION 1 2 3 2 0.111111
PROCUREMENT / DELIVERY OF 24 26 28 26 0.444444
CONSTRUCTION MATERIALS
2 * EARTHWORKS 1 2 3 2 0.111111
3 * CONCRETE WORKS 4 5 6 5 0.111111
4 SOIL POISONING 1 1 2 2 0.027778

5 * BACKFILL 1 2 3 2 0.111111
6 * WATERPROOFING / SLAB ON FILL 2 3 4 3 0.111111
7 MASONRY WORKS 2 3 4 3 0.111111
8 ELECTR./SANITARY/MECH. ROUGH-IN 12 14 16 14 0.444444
 1.

9 INSTALLATION OF 1 1 2 2 0.027778
ELECT/MECH/SANITARY FIXTURES
10 * ROOF FRAMING 4 5 6 5 0.111111
11 * INSTALLATION OF PURLINS 1 2 3 2 0.111111
12 * INSTALLATION OF GUTTER & FLASHING 1 2 3 2 0.111111
13 * ROOFING 3 4 5 4 0.111111
14 FINISHES 3 4 5 4 0.111111
15 CARPENTRY 1 2 3 2 0.111111
16 INST. OF FAB. MATERIALS & H'WARE 3 4 5 4 0.111111

17 * PAINTING 2 3 4 3 0.111111
18 * MOVE OUT 1 2 3 2 0.111111

*Critical activities Σo2 of critical activities = 1.222222

Table 1: Time Estimate Table

Probability of the project to be completed in: 30 days

𝑍𝑜 ; 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑡𝑎𝑏𝑙𝑒, 𝑍 = 0.5

% 𝑃𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = 0.5 + 0.5 = 1 × 100 = 100%

3. COST SLOPE AND RANKING

Solving for the cost slope and ranking, we based the costs on the projected cash flow. In
the given table, the total amount is PHP 300, 000.00, however, we solved a total of PHP 298,
440.00 only. We used the solved total amount. For the given amount for a certain scope of work,
some of them are included in one activity on the PERT diagram. We divided them into what we
thought it would cost. For example, backfill is not in the scope of works of the projected cash
flow, we included the cost of backfill into the cost of earthworks. 20% of the amount for
earthworks was put into the cost for backfill. Also, for electrical, sanitary, and mechanical works,
we combined their costs and used 80% of the sum of their cost for the rough-ins. 20% was used
for the installation of electrical, mechanical, and sanitary fixtures. For roof framing works, we
included the installation of purlins and the installation of gutter and flashing. 60% for roof
framing, 28% for installation of purlins, and 12% for installation of gutter and flashing. The
following rankings and cost slopes are shown here:
Normal Crash Cost
Slope Rank
Time Cost Time Cost
2 1500 1 1950 450.0 4

2 5496 1 6870 1374.0 7

5 88950 2 120082.5 10377.5 18

2 1680 1 2016 336.0 1
2 1374 1 1717.5 343.5 2
3 1410 2 1762.5 352.5 3
3 9630 2 13482 3852.0 15
14 40416 5 54561.6 1571.7 9
2 10104 1 12124.8 2020.8 11

5 16344 2 21247.2 1634.4 10

2 7627.2 1 11440.8 3813.6 14

2 3268.8 1 4249.44 980.6 6
4 29610 2 47376 8883.0 17
4 21600 2 29160 3780.0 13
2 10620 1 13806 3186.0 12
4 10620 2 13275 1327.5 7
3 36690 1 47697 5503.5 16
2 1500 1 1950 450.0 4
Table 2: Cost Slope and Ranking
 4. PROJECT CRASHING NETWORK DIAGRAM

For project crashing, the crash time and crash cost are assigned by us. For the crash cost,
we added 20-60% from the normal cost. We were able to crash the project 2 times while the
critical path remained critical on both occasions. The latest time (T L) is 14 days, as the normal
time is 30 days, the total days crashed (CT) is 16 days.

Note:

Blue numbers are values for the first crash.

Orange numbers are values for the second crash.

Red numbers are for reference for cost analysis.

Figure 2: Project Crashing - 1

Figure 3: Project Crashing - 2

 5. TIME AND COST ANALYSIS

For time and cost analysis, we identified that almost 16% increase in cost for the critical path
consisting of activities 1-2-3-5-6-10-11-13-17-18. And a 15% increase for the critical path with
activities 1-2-3-5-6-10-12-13-17-18. It would be best to keep track of the schedule to avoid this
increase in cost. Make sure that activities within the critical path are following the schedule of
the project. Indirect costs are also not included in this analysis therefore, the total increase in cost
will increase further if indirect costs are computed.
Normal Crashed
Critical Paths % Increased
Duration Direct Cost Duration Direct Cost
1-2-3-5-6-10-11-13-17-18 30 PHP 298,440.00 14 PHP 346,008.50 16%
1-2-3-5-6-10-12-13-17-18 30 PHP 298,440.00 14 PHP 343,175.54 15%
Table 3: Time and Cost Analysis

𝐷𝐶𝑐𝑟𝑎𝑠ℎ𝑒𝑑1 = 298440 + (1 × 450) + (1 × 1374) + (4 × 10377.5) + (1 × 343.5)

+ (2 × 352.5) + (4 × 1634.4) + (1 × 3813.6) + (2 × 8883) + (1 × 5503.5)
+ (1 × 450)

𝐷𝐶𝑐𝑟𝑎𝑠ℎ𝑒𝑑1 = 𝑃𝐻𝑃 346, 008.50

𝑃𝐻𝑃 346, 008.50 − 𝑃𝐻𝑃298, 440.00

% 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑖𝑛 𝑐𝑜𝑠𝑡𝑠 = × 100 = 15.94%
𝑃𝐻𝑃 298, 440.00

𝐷𝐶𝑐𝑟𝑎𝑠ℎ𝑒𝑑2 = 298440 + (1 × 450) + (1 × 1374) + (4 × 10377.5) + (1 × 343.5)

+ (2 × 352.5) + (4 × 1634.4) + (1 × 980.6) + (2 × 8883) + (1 × 5503.5)
+ (1 × 450)

𝐷𝐶𝑐𝑟𝑎𝑠ℎ𝑒𝑑2 = 𝑃𝐻𝑃 343, 175.54

𝑃𝐻𝑃 343, 175.54 − 𝑃𝐻𝑃298, 440.00

% 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑖𝑛 𝑐𝑜𝑠𝑡𝑠 = × 100 = 14.99%
𝑃𝐻𝑃 298, 440.00
Figure 1: PERT Network Diagram
Figure

2:
Project

Crashing

-1
Figure

2:
Project Crashing

-2