CHAPTER 5

PROJECT MANAGEMENT /NETWORKING MODEL/

 INTRODUCTION

A project can be defined as being a series of

interrelated activities designed to achieve a
specific objective, and which has a definite
beginning and a definite end.

Network analysis involves the breaking down of

a project into its constituent activities, and the
presentation of these activities in diagrammatic
form.
1
READING TOPICS

 NETWORK DIAGRAMS
 BASIC COMPONENTS OF NETWORK
DIAGRAM
 RULES FOR DRAWING A NETWORK
 TYPES OF NETWORK MODELS
 PROJECT MANAGEMENT OVERVIEW

2
There are two project management technique :
1. Critical Path Method (CPM)
2. Program Evaluation and Review Technique
( PERT)
 1.Critical Path Method
 This is a diagrammatic representation which
shows the various activities in a project.
 The aim of the CPA is to identify how those
activities link together and to show the critical
path or the sequence of activities where a
delay will result in the overall project being
delayed.
 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. 3
 Cont…
 The sequence of critical activities in a network is called the
critical path.
 It is the longest path in the network from the starting event to the
ending event
 defines the minimum time required to complete the project.
 In the network it is denoted by double line. This path identifies
all the critical activities of the project.
 Hence, for the activity (i,j) to lie on the critical path, following
condition must be satisfied.
a) ESi= LSi
b) EFi = LFj
c) ESj- LSi = EFj- LFi = tij.
d) Float time=0 4
 The procedure of determining the critical path

Step 1: List all the jobs and then draw arrow

(network) diagrams. Each job indicated by an
arrow with the direction of the arrow showing the
sequence of jobs and the starting and ending
points are represented by nodes(events).

Step 2: Indicate the normal time ( tij) for each

activity ( i,j) above the arrow which is
deterministic.
5
 Cont…

Step 3: Calculate the earliest start time and

the earliest finish time for each event and
write the earliest time Ei for each event i.
Also calculate the latest finish and latest
start times.
Step 4: prepare a table summery for the
various times namely normal time, earliest
time and latest time on the arrow diagram. 6
 Cont…

Step 5: Determine the total float for each

activity by taking the difference between the
earliest start and the latest start time (ES-LS).

Step 6: Identify the critical activities and connect

them with the beginning event and the ending
event in the network diagram by double line
arrows. This gives the critical path.

Step 7: Calculate the project duration. 7

 Example

A small maintenance project consists of the following jobs

whose precedence relationship is given below.

Job
1-2 1-3 2-3 2-5 3-4 3-6 4-5 4-6 5-6 6-7
Durati
on
15 15 3 5 8 12 1 14 3 14
( days)

Required:
a) Draw an arrow diagram representing the project.
b) Find the total float for each activity.
c) Find the critical path and the total project
duration. 10
 Drawing a network diagram

(15,20)
(0,15)
15 2
(26,27)

1 (27,30)
(15,18)
4 7

(18,26) 5
(26,40)
(0,15)
(40,54)

3
(18,30)
6

11
 The total float for each activity

To determine the total float first the earliest start

and finish; late start and finish are computed.
1. Forward pass calculation (Earliest time)
In this we estimate the earliest start and the
earliest finish time.
ESj given by:
ESj= Max (ESj, tij), Where Esi is the
earliest time and tij is the normal time for the
activity (i,j). 12
 Cont…

Backward pass Calculation

In this we calculate the latest finish and latest
start time Lfi, given by LFi = Min ( LFj-tij)
where LFj is the latest finish time for the event j.

13
 Drawing a network diagram

(32,37)
(0,15)
15 2
(36,37)

1 (37,40)
(15,18)
4 7

(18,26) 5
(26,40)
(3,18)
(40,54)

3
(28,40)
6

11
The following table given the calculation for critical path and total float.
Earliest Latest

Activity Normal time

Start Finish Start Finish Total float Lsj-
ESi EFj Lsi LFj
ESj or LFi-Efi

15 0 15 0 15 0
1-2
1-3 15 0 15 3 18 3

3 15 18 15 18 0
2-3
2-5 5 15 20 32 37 17

8 18 26 18 26 0
3-4
3-6 12 18 30 28 40 10

4-5 1 26 27 36 37 10
14 26 40 26 40 0
4-6
5-6 3 27 30 37 40 10
15
 Drawing a network diagram

5
(32,37)
(0,15)
15
2
(36,37)

1 (37,40)
(15,18)
4 7
(18,26) 5
(26,40)
(3,18)
(40,54)

3
(28,40)
6

11
 3. The critical path

From the above table we observe that the

activities 1-2, 2-3, 3-4, 4-6, 6-7 are the critical
activities.
The critical path is given by, 1-2-3-4-6-7

The total projection is given by 54 days.

17
 2. Project Evaluation and Review Technique
(PERT)

PERT is a further development of the CPA

approach which deals with the influence of
changes in time on the cost of a project.

Thus the time taken to various activities are not

known certainly.

18
 cont…
PERT method uses the following three
estimates.
1. Optimistic time estimate (to)
It is a time required for the completion of
an activity under optimum conditions.
2. Pessimistic time (tp)
It is a time estimate under worst conditions.
3. The most likely time estimate (tm)
It is the most probable amount that will be
required. 19
 Formulas

Thus by making use of the above, one can

estimate project completion times as;
Expected time = te = to + 4tm + tp, Where t is time
6
Standard deviation =  = tp-t0
6
Variance = 2= ( tp - to)2
36
20
 Example :

Estimated duration:
Activity Optimistic Most likely Pessimistic

1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15 22
Having been provided with this information, let us
try to find the following facts;
A.Construct the net work diagram.
B. Find the expected duration and variance of
each activity
C. Find the expected duration of the project.
D.calculate the variance and standard deviation of
project length.

Supplement 13-22
 2

1 5
6
3
4

Supplement 13-23
Estimated duration

Supplement 13-24
 MANY
THANKS
Supplement 13-25