PLANNING &

SCHEDULING
(TIME MANAGEMENT)

ENGR. NELIA VERZOSA-AMAN, Ed.D.

Professor

Engr. Nelia V. Aman, Ed.D.

 • Expectations:

• You will be able to. . .

• Understand and prepare planning and
scheduling using time management tools
• Prepare PERT/CPM of a construction project
• Analyze the cost-benefit of crashing

Engr. Nelia V. Aman, Ed.D.

 • Topics:

• Planning and Scheduling (PERT/CPM)

• -Time management tools

• -PERT/CPM Network Diagrams

• Principles in Networking or Arrow Diagram

• -Fundamental Elements of PERT/CPM Networking

• Crashing and Cost Plan

Engr. Nelia V. Aman, Ed.D.

 • Construction management basically
consider Time as the controlling factor of
all available resources from money,
manpower, facilities and equipment. As the
controlling factor:

•Time versus number of manpower

• Time versus number of equipment
• Time versus peso
Engr. Nelia V. Aman, Ed.D.
 • CONSTRUCTION SCHEDULES (ACTIVITIES,
MANPOWER, EQUIPMENT)

• PERT, CPM and GANTT (tools used for

construction schedules)

• PERT and CPM

•
• PERT is a Program Evaluation and Review
Technique

• CPM is the Critical Path Method

Engr. Nelia V. Aman, Ed.D.

 Table of Activities

• In the Table of Activities or Work Plan, the most

important project activities are listed and
tabulated to establish interdependence among
activities and create a reliable timeline.

Engr. Nelia V. Aman, Ed.D.

 Bar Chart
• Bar Chart is derived from the Gantt Chart. It
presents a graphic record of the projects
progress.

• It shows the day-to-day status of every activity,

the comparison between the actual
accomplishment and the corresponding work
schedules and distribution of manpower
materials, equipment and cash flow.

Engr. Nelia V. Aman, Ed.D.

 • An S-Curve represents the actual work
accomplishment as against the work schedule,
visually identified with a sloping line originating
from the bottom left zero percent (0%)
accomplishing going up to the upper right, 100%
accomplishment.

Engr. Nelia V. Aman, Ed.D.

Engr. Nelia V. Aman, Ed.D.
 • PERT and CPM were developed independently in the
later part of 1950’s.

• These two are networks.

• A technique, used for planning and coordinating large

scale projects.

Engr. Nelia V. Aman, Ed.D.

 • PERT was developed as a result of looking for an
improved method of planning and evaluating progress of
a large scale research and development program.

• It was designed to provide the management a periodic

reporting of current status and an outlook for the future on
meeting approved plans and schedules.

Engr. Nelia V. Aman, Ed.D.

 • CPM was designed as a tool for planning, scheduling and
control of construction work.

• Its emphasis was on the work or activities to be managed.

•
• The network diagram defined and focused attention on the
job to be accomplished.

• The schedule derives the earliest and the latest times for
their start and finish.

Engr. Nelia V. Aman, Ed.D.

 • PERT/CPM is a control tool for defining the parts of
construction job and then putting them together in a
network form.

• It serves as an aid to the construction manager but

it does not make decision for him nor does it
guarantee good management.

Engr. Nelia V. Aman, Ed.D.

 • PERT/CPM only serves the project manager to see the whole
picture of the entire job.
•
•
• THREE PHASES OF PERT/CPM
•
• Planning
• Scheduling
• Control-Monitor
•
•

Engr. Nelia V. Aman, Ed.D.

 • Planning is defined as determining the relationship between
the work operation and the sequence in which they are to be
performed.

Engr. Nelia V. Aman, Ed.D.

 • Five inputs that can be obtained from planning:
•
• A network diagram defining the activities in the project.

• The duration of activities

• Cost estimates of the activities for monitoring cost, cash flow

requirements

• Resource estimates

• Trade indicators (responsibility) for activity grouping.

Engr. Nelia V. Aman, Ed.D.

 • Scheduling or sequence involves distribution of work
time to each work operation and determining when to start
and when to finish

Engr. Nelia V. Aman, Ed.D.

 •
• Four outputs that can be obtained:
•
• 1. The schedule of activities in the network showing the
following:
•
• The Critical Activities
• The earliest Start date for each activity
• The Earliest Finish date for each activity
• The Latest start date for each activity
•

Engr. Nelia V. Aman, Ed.D.

 • The Latest Finish date for each activity
• The Float which refers to the amount of extra time
available for an activity

• 2. A Bar Chart or a Time Scaled Network (arrow diagram

network for the project).

Engr. Nelia V. Aman, Ed.D.

 • 3. A resource Analysis showing the number and kind of
resources, man power, equipment and others that are
required for each day of the project.

• 4. A Cash Requirement prediction indicating how much

cash to be disbursed for the job and the amount of money
that will be collected as a result of work accomplishment.

Engr. Nelia V. Aman, Ed.D.

 • The Control Monitor phase uses actual data
which includes:
•
• additions to the project – refers to the new
activities
• deletion from the project
• changes as to duration, description, trade
indicators, cost estimates or resource estimates.
• actual starting dates
• actual finishing dates
•

Engr. Nelia V. Aman, Ed.D.

 PERT/CPM NETWORK DIAGRAMS

• Two conventions for making a network diagram:

• Activity on Arrow (AOA) – that is using arrows to
designate activities.
•
• A B
• Activity on Node (AON) – using nodes to designate
activities
• a b
• 1 2 3

Engr. Nelia V. Aman, Ed.D.

 PRINCIPLES IN NETWORKING OR
ARROW DIAGRAM
1. That everything in the network or arrow diagram must
have meaning. Thus;
• a. Every arrow represents an item of work and is called Activity.

• Excavation

b. An Event is the starting point of an Activity represented by a

circle, square or any geometrical form.

• 1

Engr. Nelia V. Aman, Ed.D.

 c . An Activity is dependent upon and cannot begin until after the
completion of all preceding Activities.
•
• Fabrication of Forms Pouring Footing Slab
• 3

• Order & Deliver Cement

Engr. Nelia V. Aman, Ed.D.

 • d. All activities that start with the same event cannot begin until
after the completion of all activities that enter that event.

•
• 3
• Fabrication of Forms Pouring Footing Slab
•

• Order & Deliver Cement Pouring Pedestal

Engr. Nelia V. Aman, Ed.D.

 • Pouring of footing slab and pedestal, depends upon the
completion of the two activities that enter into their
common starting point. Hence, it is impossible to pour
concrete on footing slab or pedestal until after making
both forms and delivery of cement have been completed.

Engr. Nelia V. Aman, Ed.D.

 Secure Bldg Permit Staking

Placing of batter boards

• 5

• Clearing the Site Excavation

• In the above diagram, the three activities of staking, batter

boards and digging which start from event 5 must wait
until all activities entering event 5 have been entirely
completed.

Engr. Nelia V. Aman, Ed.D.

 • 2. That an activity has a single definite starting point and a
single definite ending point.
•
• An arrow in the network must satisfy two basic questions:

• a. What activities must be completed before this one

can start?
• b. What activities cannot be started if this one is not
completed?

Engr. Nelia V. Aman, Ed.D.

 Pouring of Conc for Ftg CHB
4
laying
Excavation Fab & Installation of Forms
1 2 3

• Pouring of
• conc. for WF

Engr. Nelia V. Aman, Ed.D.

 • From the above figure, CHB laying cannot be started until
after the pouring of concrete footing is finished.

• Similarly, pouring of footing cannot be done unless the forms

and excavation have been completed.

• In short, the inter-relationships of activities were; block laying

precedes pouring of footing; pouring of footing precedes
fabrication and installation of forms and fabrication and
installation of forms precedes excavation.

Engr. Nelia V. Aman, Ed.D.

 • 3. The network (arrow diagram) does not describe time
relationship but rather dependency relationships.
•
• The length and direction of an activity arrow has no
relationship with the amount of time required to
accomplish the work presented by it.

• Similarly, two activities starting with the same event do not

necessarily occur at the same time.

Engr. Nelia V. Aman, Ed.D.

 .
B 3

A
1 2

• C 4

• The arrow diagram defines the activity dependency situations that

exist. Activity B and C does not mean that both activities must be
conducted at the same time. They might but probably will not. What is
important to note here is that these two activities are independent.
Engr. Nelia V. Aman, Ed.D.
 • 4. That the network (arrow diagram) is hardly ever done
by a single person.
•
•
• The accomplishment of the schedule made in the network
diagram is influenced by several number of people who
have something to do with the project and should be
consulted when making the network.

Engr. Nelia V. Aman, Ed.D.

 FUNDAMENTAL ELEMENTS OF
PERT/CPM NETWORKING

• Activity – is the work operations required to complete a

task or in some cases, a segment of that task. It is
represented by an arrow which always point to the right.

• An arrow which represent the activity is identified by

numbered circle at its tail and another circle at its point.
•
•

Engr. Nelia V. Aman, Ed.D.

 •
• Events – is a point in time signifying the beginning or
end of one or more activities. It denotes the completion
of all preceding or predecessor activities and the
beginning of one or more succeeding activities.

• The event is indicated on the network as a circle,

square, ellipse or any form of geometrical symbols with
a number written therein for identification.
•

Engr. Nelia V. Aman, Ed.D.

•
•
• Numbering the events follows the construction of the
network.

• No two events shall have the same identification

number in the network.

• For this reason, one or more dummy activities may

be used in a network.

Engr. Nelia V. Aman, Ed.D.

 • Dummy Activity – is an arrow on a network showing the
dependent relationship between two activities. However,
dummy activity does not represent actual work efforts,
and do not consume time. Dummy activity may be used in
the network to distinguish between two or more parallel
activities.
•
• Duration of an Activity – is the time it takes an activity to
be finished. It is the span of time from the Early Star to its
Early Finish or from its Late Start to its Late Finish.

Engr. Nelia V. Aman, Ed.D.

 • Path – is a sequence of activities that leads from the
starting node to the finishing node. The sequence 1-2-4-6
in the network as shown below is a path. Another one is
path 1-3-5-6
•
• Critical Path – is the longest path and its activities are
called the critical activities. It has zero slack or float.
•
• Slack or float time is the allowable slippage for any path.
It indicates the difference between the length of a given
path and the length of the critical path.
•

Engr. Nelia V. Aman, Ed.D.

 .
a 2 c 4

1
b d f
• 3 5 6 end

Engr. Nelia V. Aman, Ed.D.

Illustration 1
.
A B C

Activity A must be completed first before activity B can be started.

Likewise, activity B must be completed first before starting activity C

• Illustration 2
• A

• C
• B

Engr. Nelia V. Aman, Ed.D.

 • Both activity A and activity B has to be completed
first before activity C can begin. But a and b could
be worked on at the same time. Performance of A
is dependent of the performance of B.

• Illustration 3
•
• B
• A
• C
•

• If activity A must precede B and C, the network is

shown in illustration 3
•
Engr. Nelia V. Aman, Ed.D.
 Illustration 4

A C

• B D

• When several activities enter a node, it means that all those

activities must be completed first before any activities that
will begin at the node can start. Thus activity A and activity
B must be finished first before either activity C or activity D
can start.
•

Engr. Nelia V. Aman, Ed.D.

 Illustration 5

B C

• When two activities have the same start and ending nodes,
a dummy node and activity is used to preserve the different
identity of each activity. Activity A and activity B must be
completed first before activity C begins.
•

Engr. Nelia V. Aman, Ed.D.

 Illustration 6
A C

B D

• Dummy activities has several number of different uses and

illustration 6 is commonly used.
•
• The primary function of dummy is to clarify relationships. But as
far as time is concerned, a dummy activity has an activity time
equals to zero.
•

Engr. Nelia V. Aman, Ed.D.

 Illustration7

2 C 4
A
E
1 dummy
B D
• 3 5 end

• Activities A and B both precede activity C. But D’s start is dependent

only on completion of activity B, and not on activity A’s. Similarly E is
dependent on C.
•

Engr. Nelia V. Aman, Ed.D.

 • Rules for Numbering Events in a Network Diagram
•
• All events should be numbered starting from left to right.

• No event number should be lower than the number of

event preceding it (left to right direction)

Engr. Nelia V. Aman, Ed.D.

 • Event number shall increase from left to right.

• Events should be numbered from top to bottom.

•
• Increasing should be consistent from top to bottom or
from bottom to top.
•

Engr. Nelia V. Aman, Ed.D.

 •
• From the table of information, (a) Draw a precedence
diagram, (b) find the critical path, (c) determine the
expected duration of the project.

Engr. Nelia V. Aman, Ed.D.

 Activity Precedes Expected time
(days)
a c,b 4
c d 12
d i 2
b i 5
e f 3
f j 8
i j 12
j end 9
g h 1
h k 3
k end 15
Engr. Nelia V. Aman, Ed.D.
 .Steps

1. identify activities without predecessors

aeg

2. start with a single node as shown

• a
• e

• g

Engr. Nelia V. Aman, Ed.D.

 .3. connect activities that precede the activities
c d
•
• a b
• e i
• f
• g
• h j
• k
•
• 4. end with a single node
• 5. determine the path
• a-c-d-i-j; a-b-i-j; e-f-j; g-h-k;
•

Engr. Nelia V. Aman, Ed.D.

 • add the duration of activities for each path
•
• a-c-d-i-j = 4 +12 + 2 + 12 + 9 = 39*
• a-b-i-j = 4 + 5 + 12 + 9 = 30
• e-f-j = 3 + 8 + 9 = 20
• g-h-k = 1 + 3 + 15 = 19
•
• The path with the highest number is the critical path,
similarly the duration of the project. Path a-c-d-i-j is the
critical path with a duration of 39
•
•

Engr. Nelia V. Aman, Ed.D.

 • . PROBLEM EXERCISES:
•
• Number the events of the network as shown in proper sequence.

•
•
•

Engr. Nelia V. Aman, Ed.D.

 ACTIVITY:

Construct a Network Diagram from the information in the table .

Determine also the Critical Path and the expected duration of the
project.

Construct a Network Diagram from the following information.

Determine also the Critical Path and the expected duration of the
project.

Engr. Nelia V. Aman, Ed.D.

 Activity Precedes Estimated
Time (weeks)
a b 15
b c,d 13

c e 8

d end 5

e end 3

Engr. Nelia V. Aman, Ed.D.

 • Earliest Event - is the earliest time occurrence of an event
sometimes called Earliest Event Time or Early Event Time.

• It is the earliest time an event can happen without delaying

the earliest start of an activity.
•
• The earliest event time is numerically equal to the
longest path of activities in series from the project start to
the finish.

• Unless specified, the Earliest Event Time of the starting

event is assumed to be zero.
Engr. Nelia V. Aman, Ed.D.
 • Earliest Start of an activity cannot be earlier than the
earliest event time of the event.

• The earliest start of any activity is always equal to the

earliest event at the beginning of an arrow which is
sometimes called i-node.

• The point of an arrow is all j-node

Engr. Nelia V. Aman, Ed.D.

 i-node j node

• Earliest Finish of an activity is equal to its earliest Start plus

its duration time
•
• EF = ES + Duration or EF = Early Event + Duration
•
• Latest Event Time is the latest time the event may occur
without delaying project completion.
•

•
•
•
Engr. Nelia V. Aman, Ed.D.
•
• Latest Finish of an activity cannot be later than the latest
event time of its j-node. All activities with the same J-
node have the same late finish which is the same as the
latest event time at their common node.
•
• Latest Finish equals Latest Start plus Duration
•
• LF = LS + D or LS = LF – D

•
•
•
Engr. Nelia V. Aman, Ed.D.
 • Activity Total Float or Activity Total Slack is the span of
time an activity can be delayed after its earliest time
without delaying the project completion.

• It is equal to the total time for the activity minus the activity
duration.
•
• TF = LF – EF or TF = LS + D – (ES +D) or

• TF = LS – ES
•

Engr. Nelia V. Aman, Ed.D.

 • Free Float is the span of time an activity can be delayed
after its Early Start without delaying the Earliest Start of
any succeeding actual activity that may be availed of and
still allow its succeeding real activities to begin at their
earliest start time.
•
• Free Float is equal to the ES of any of its succeeding real
activities minus the EF of an activity in question.
•
• FFa = ESb – EFa (if b is the succeeding
activity)
•
Engr. Nelia V. Aman, Ed.D.
 • Independent Float is that portion of the activities Free
Float that would remain if all its preceding activities
used up all their float
•
• IF is equal to the ES of the succeeding real activities
minus the LF of the preceding activities minus the
duration of activity in question
•
• IFb – ESc – (LFa –Db)
•
• If the result is negative, it means there is no
independent float. The independent float is equal to
zero
•
Engr. Nelia V. Aman, Ed.D.
 • Rules in computing the ES and the EF
•
• The Earliest Finish (EF) for any activity is equal to its earliest
starting time plus its expected duration time t.
•
• EF = ES + t
•

Engr. Nelia V. Aman, Ed.D.

 •
• For nodes with one entering arrow, ES for activities at such
node is equal to EF of the entering arrow.
•
• For nodes with multiple entering arrows, the ES for activities
leaving such node is equals the largest EF of the entering
arrow
•
• Computing the Last Start and the Last Finish
•
• LF = LS + Duration or
• LS = LF - Duration
•

Engr. Nelia V. Aman, Ed.D.

 • Solving the Float or Slack Time
•
• The term Slack is used by PERT which is equivalent to
float of CPM network diagram
•
• Slack or float is the word used for those activities which
do not fall on the critical path.

• These activities have scheduling Time Leeway that can

be used without adverse effect on the project time
completion.
•
• Float = LS – ES or
• Float = LF – EF
Engr. Nelia V. Aman, Ed.D.
 • Sample Problem:
•
• From the following network diagram, prepare a data
sheet development showing (a) Earliest and Latest Start,
(b) Earliest and Latest Finish, (c) Total and Free Float or
Slack and (d) Critical activities.

Engr. Nelia V. Aman, Ed.D.

 •
•

• 10 8
• 1 2 4

• 6 13 4

• 12 2
• 3 5 6 end

Engr. Nelia V. Aman, Ed.D.

 • Determine the path
• 1-2-4-5-6
• 1-2-5-6
• 1-3-5-6
• Compute for the duration of each path
• 1-2-4-5-6 = 10+8+4+2 = 24
• 1-2-5-6 = 10 + 13+ 2 = 25
• 1-3-5-6 = 6 + 12 + 2 = 20

• The critical path is 1-2-5-6 with a duration of 25

Engr. Nelia V. Aman, Ed.D.

Activ Durati ES EF= ES+D LF LS TF= FFa=
ity on = LF- D LF-EF ESb-EFa
1-2 10 0 0+10 = 10 25-2-13= 10-10=0 10-10=0 10-10=0*
10
1-3 6 0 0+6 = 6 25-2-12 = 11-6=5 11-6=5 6-6=0
11
2-4 8 10 10 + 8 = 18 25-2-4 = 19-8=11 19-18=1 18-18=0
19
2-5 13 10 10 + 13 = 23 25-2=23 23-13 23-23=0 23-23=0*
=10
3-5 12 6 6 + 12 =18 25-2 = 23 23-12 23-18=5 23-18=5
=11
4-5 4 10+8= 18+4 =22 25-2 = 23 23-4=19 23-22=1 23-22=1
18
5-6 2 10+13 23+2 = 25 25 25-2=23 25-25=O 25-25=0*
= 23

Engr. Nelia V. Aman, Ed.D.

 ASSIGNMENT:
• From the above network diagram, prepare a data sheet development
showing (a) Earliest and Latest Start, (b) Earliest and Latest Finish, (c)
Total and Free Float or Slack and (d) Critical activities.
• C E
• 2 4 6
• A 7 3 H
• 6 10
• 1 12 D 0 G 7

• 8 7 11 I
• B 3 5
• F

Engr. Nelia V. Aman, Ed.D.

 • Probable Time Estimate
•
• Duration time for activities in research and
development projects are subject to uncertainty but PERT
handles the uncertainty problem by the use of three time
estimates namely:
•
• Optimistic Time – is the estimated minimum time an
activity will take.
• This is the expected activity duration when all the breaks
are right.
• Its probability is about 1 in 100 or 1% represented by a
letter a

Engr. Nelia V. Aman, Ed.D.

 • Most Likely or Probabilistic Time is the estimated
normal length of time an activity takes.

• This is the time expected that will most frequently be

required for an activity if it were done again and again
under identical conditions represented by letter m

Engr. Nelia V. Aman, Ed.D.

 • Pessimistic time is the estimated maximum time that will
be required under the worst conditions.

• Its probability is about -1 in 100 or 1% represented by

letter b

Engr. Nelia V. Aman, Ed.D.

 • Expected time: Et = a + 4m + b
• 6
•
• Variance: v2 = (b-a)2
• 36
•
• The size of the variance reflects the degree of uncertainty
associated with an activity’s time. The larger the variance,
the greater the uncertainty.
•

Engr. Nelia V. Aman, Ed.D.

 • Example:
• From the following network diagram:

• 2-4-6
• 2-3-4 a b c 1-3-4

• d e f
• 3-4-5 3-5-7 5-7-9

• 2-4-5 g h i 3-4-6

• 4-5-6

Engr. Nelia V. Aman, Ed.D.

 • a. Compute for the expected time for each activity and the
expected duration for each path.

• b. Identify the critical path

• c. Compute the variance for each activity and the variance

for each path.
•

Engr. Nelia V. Aman, Ed.D.

 SOLUTION: (a and b)

Path Activity Times Et = a+4m+b Path Total

6
a m b

a-b-c a 2 3 4 3 =3+4+2.83
9.83
b 2 4 6 4

c 1 3 4 2.83

d-e-f d 3 4 5 4 =4+5+7
16
e 3 5 7 5

f 5 7 9 7

g-h-i g 2 4 5 3.83 =3.83+5+4.17

13
h 4 5 6 5

i 3 4 6 4.17

Engr. Nelia V. Aman, Ed.D.

 SOLUTION: (c)

Path Activity Times V2 = (b-a)2 V2 Path

36
a m b

a-b-c a 2 3 4 4/36 29/36 = .805

b 2 4 6 16/36

c 1 3 4 9/36

d-e-f d 3 4 5 4/36 36/36 = 1.0

e 3 5 7 16/36

f 5 7 9 16/36

g-h-i g 2 4 5 9/36 22/36 =.611

h 4 5 6 4/36

i 3 4 6 9/36

Engr. Nelia V. Aman, Ed.D.

 Assignment:

From the following table of information;

Draw the precedence diagram;

Activity Precedes Time in Weeks

Optimistic Most Likely Pessimistic
Time Time Time
A D,F 2 4 6
D E 6 8 10
E H 7 9 11
H END 2 3 5
F G 3 4 8
G END 5 7 9
B I 2 2 3
I J 2 3 6
J K 3 4 5
K END 4 5 8
C M 5 8 12
M N 1 1 1
N O 6 7 11
O END 8 9 13

Engr. Nelia V. Aman, Ed.D.

 CRASHING AND COST PLAN
•
• Reducing Time and Cost
•
• Shortening of project construction time is influenced by the
following:
•
• To avoid penalties for not completing the project on time.

• To take advantage of the monetary incentives for completing

the project on time

Engr. Nelia V. Aman, Ed.D.

 •
• To free the resources such as money, equipment and men
for use on other projects.

• Reduce indirect costs associated with the project such as:

• facilities and equipment costs
• supervision cost
• labor cost
• personnel cost

Engr. Nelia V. Aman, Ed.D.

 • Options that will allow in Crashing Certain
Activities or shortening of the time
•
• The use of additional funds to support the following:

• Additional personnel
• Have more efficient equipment
• Relaxing of some work specifications
•
• Note: Those activities on the critical path are
potential activities for crashing.

Engr. Nelia V. Aman, Ed.D.

 • Procedure in Crashing Project Time
•
• Obtain an estimate of regular and crash time plus the costs of
each activity.

• Determine the length of all paths and their float time

• Determine which activities are on the critical path

• Crash the critical activities in the order of increasing costs as

long as the crashing costs do not exceed benefits
•
• Note: Crashing activities reduces indirect costs and increases
direct costs
•

Engr. Nelia V. Aman, Ed.D.

From the following data, develop an optimum cost plan
assuming that the indirect cost is P10,000.00/day

Activity Normal Time Crash Time Cost per day

to Crash
A 8 8
B 12 10 6,000
C 7 6 2,000
D 6 2 6,000
E 9 7 4,500
F 4 2 7,000

Engr. Nelia V. Aman, Ed.D.

 B-12
2
A-8

F-4
1 5 6

C-7 3 4
D-6 E-9

Engr. Nelia V. Aman, Ed.D.

 • SOLUTION:
•
• Find the length of the activities in each path.
•
• Path 1-2-5-6 or (A-B-F)= 8+12+4 = 24 days
• Path 1-3-4-5-6 or (C-D-E-F) = 7+6+9+4 = 26 days
•
• Path 1-3-4-5-6 = 26 days is the critical path
• Rank the critical path activities in the order of lowest
crashing cost

Engr. Nelia V. Aman, Ed.D.

 Activity Cost per day to Available days
crash
C 2000 7-6 =1
E 4500 9-7 =2
D 6000 6-2 =4
F 7000 4-2 =2

Engr. Nelia V. Aman, Ed.D.

 •
• Start shortening the project one day at a time and then
check after each reduction to see which path is critical.

• Shorten activity C by 1 day at a cost of P2,000. The length

of critical path becomes 26-1 = 25 days (see column 2 of
the table below)

Engr. Nelia V. Aman, Ed.D.

 •
• Shorten activity E by 1 day at a cost of P4,500. The length
of critical path is 25-1 = 24 days. (see column 4 of the
table below)

• Path CDEF after crashing activity E has now the same

length with path ABF with time length = 24 days (see
column 4 of the table below)

Engr. Nelia V. Aman, Ed.D.

 Path Length after crashing n days
n=0 1 2 3
A-B-F 24 24 24 24-1=23
A-D-E-F 26 26-1 =25 25-1 =24 24-1 =23
Activity:
Crashed C E F
Cost 2,000 4,500 7,000
Remaining 10,000 10,000- 10,000- 10,000-
Indirect Cost 2,000 = 4,500= 7,000 =
8,000 5,500 3,000

Engr. Nelia V. Aman, Ed.D.

• Since path CDEF and path ABF have now the same time
length (see column 4) equal to 24 days the option now is to
crash the less expensive activity on each path. Activity B
which cost 6,000 and activity with 4,500 or a total of
P10,500.

Engr. Nelia V. Aman, Ed.D.

• This is not anymore possible because P10,500 exceeds the
indirect cost P10,000 per day.

• Since activity F is on both paths, shortening it by one day for

both path will only cost P7,000.00 (see column 5). Therefore,
the crashing time ends in shortening activity F.

Engr. Nelia V. Aman, Ed.D.

 • Example 2
•
• The indirect costs of a project is P10,000 per week
up to its duration. The project manager was furnished the
following cost and time information
•
• Determine an optimum crashing plan

Engr. Nelia V. Aman, Ed.D.

 Activity Crashing Potential Cost per week to
Week crash

A 3 P8,000
B 3 first week 3,000
2nd week 4,000

C 2 5,000
D 1 1,000
E 3 5,000
F 1 2,000

Engr. Nelia V. Aman, Ed.D.

 B-14
2
A-8

C-11 D-6
1 3 5

E-14 F-7
4

Engr. Nelia V. Aman, Ed.D.

 Solution:

Determine the path lengths and identify the critical path

Path Duration in weeks

A-B 22
C-D 17
E-F 21

Engr. Nelia V. Aman, Ed.D.

 Rank the critical activities of path A-B according to crashing costs

Activity Cost per week to crash

B P3,000 1st week

A P8,000

Engr. Nelia V. Aman, Ed.D.

 • Activity B has the lower crashing costs, hence it should be
shortened by one week.

• This will reduce the indirect costs by:

•
• P10,000 – 3,000 = P7,000 net savings
•
• The length of path A-B is now 21 weeks (22-1); it
has now the same length with path E-F, thus both are now
critical path.

Engr. Nelia V. Aman, Ed.D.

 Rank activities by crashing costs on the two critical path

Path Activity Remaining Cost per week to

crashing week crash
A-B B 2 P4,000 2nd week
A 3 P8,000
E-F E 3 5,000
F 1 2,000

Engr. Nelia V. Aman, Ed.D.

 Since path A-B and path E-F would still be 19 weeks to
crash another one week and CD is 17 weeks, then
crashing is still possible.

Path Activity Remaining Cost per week to

crashing crash
week
A-B B 1 P4,000 2nd week
A 3 P8,000
E-F E 3 5,000
F 0 No more to
crash

Engr. Nelia V. Aman, Ed.D.

 • Since there is no more to crash in activity F for Path
E-F, then activity E will be the one to be crashed
with crashing cost = 5,000/week
•
• P10,000 – (4,000 + 5,000) = 1,000 net savings
•
• at this point activity B has no more remaining
crashing week, to shorten another one week to
make the duration of Path A-B and Path E-F equal
to 18 days would mean crashing A and crashing E
•

Engr. Nelia V. Aman, Ed.D.

 •
• Activity A has a crashing cost of 8,000 and activity
E has a crashing cost of 5,000. the sum of these is
already 13,000 which exceeds the P10,000
potential savings in the indirect costs.

Engr. Nelia V. Aman, Ed.D.

 Prepare now the summary of result

Path N =0 1 2 3
A-B 22 21 20 19
C-D 17 17 17 17
E-F 21 21 20 19
Activity crashe17d B B,F B,E
Crashing costs 3,000 6,000 9,000

Engr. Nelia V. Aman, Ed.D.

 Prepare summary of costs
Project Commulat Commulative Indirect cost Total cost
Length ive week crashing costs
shortened
22 0 0 22 (10,000) = 220,000
220,000
21 1 3,000 21 (10,000) = 210,000 + 3,000
210,000 = 213,000
20 2 3,000 + 6,000 = 20 (10,000) = 200,000 + 9,000
9,000 200,000 = 209,000
19 3 9,000 + 9,000 = 19 (10,000) = 190,000 +
18,000 190,000 18,000 =
208,000
18 4 18,000 + 13,000 18 (10,000) = 180,000 +
= 31,000 180,000 31,000 =
211,000
Engr. Nelia V. Aman, Ed.D.
 Example

The activities and other conditions for a certain project are as follows:
Activity Normal Normal Accelerated Accelerated
Duration Cost Duration Cost
A (0-1) 5 days P1,000 3 days P1,600
B (0-2) 5 days P3,000 3 days P4,000
C(1-2) 7 days P3,000 5 days P3,500
D(0-3) 3 days P12,000 2days P12,000
E (2-3) 4 days P1,000 3 days P1,500
F (3-4) 5 days P1,000 3 days P1,800

Engr. Nelia V. Aman, Ed.D.

 • What is the critical path of the project.

• What activity is the most cost effective to

accelerate.

• If the maximum budget is P22,600, how many

days can you reduce the duration of the
project?

Engr. Nelia V. Aman, Ed.D.

 B-7

A-5 C-7 E-4 F-5

0 1 2 3 4

D-3

Engr. Nelia V. Aman, Ed.D.

 • Solution:
•
• Possible Paths:
•
• B-E-F 5+4+5 = 14
• A-C-E-F 5+7+4+5 =21 critical
• D-F 3+5 = 8
•

Engr. Nelia V. Aman, Ed.D.

 • Activity Cost/day to crash
•
•A 300
•C 250 most cost effective to
• accelerate
•E 500
•F 400

Engr. Nelia V. Aman, Ed.D.

 Total Normal Cost = 1000 + 3000 +3000 + 12000 + 1000
+ 1000 = P21,000
(Note crash activity from the lowest cost)
2 days less for C:
Cost = 2 x 250 = 500 P21,500
2 days less for A:
Cost = 2 x 300 = 600 22,100
1 day less for F:
Cost = 1 x 400 = 400 22,500
Accelerating it further will bring the total amount over the
maximum budget.

Engr. Nelia V. Aman, Ed.D.

 Example
The table shown tabulates the activities for making a network diagram
for a project together with duration and cost in normal and accelerated
conditions.
Activity Normal Normal Accelerated Accelerated
Duration Cost Duration Cost
A (0-1) 5 days P1,000 3 days P1,600
B (0-2) 5 days P3,000 3 days P4,000
C(1-2) 7 days P3,000 5 days P3,500
D(0-3) 3 days P12,000 2days P12,000
E (2-3) 4 days P1,000 3 days P1,500
F (3-4) 5 days P1,000 3 days P1,800
P21,000 P24,400

Engr. Nelia V. Aman, Ed.D.

 • A. What is the critical path of the project.

• b. What is the cost if it is accelerated to the minimum

duration and

• c. If the maximum available cost is P22,100, determine

the number of days deducted from the normal condition
so that it will be economical.
•

Engr. Nelia V. Aman, Ed.D.

 B-7

A-5 C-7 E-4 F-5

0 1 2 3 4

D-3

Engr. Nelia V. Aman, Ed.D.

 Solution:
• Possible Paths:
B-E-F 5+4+5 = 14
A-C-E-F 5+7+4+5 =21 critical
D-F 3+5 = 8
2. Effective cost if it is accelerated
A : Accelerated Cost P1,600
B : Normal Cost P3,000
C : Accelerated Cost P3,500
D : Normal Cost P12,000
E : Accelerated Cost P1,500
F : Accelerated Cost P1,800
P23,400

Engr. Nelia V. Aman, Ed.D.

 • Since the critical path involves only A-C-E-F, so activities B
and D must not be accelerated so only the normal cost
would be used.

• Therefore the cost if it is accelerated to the minimum

duration = P23,400.

Engr. Nelia V. Aman, Ed.D.

 • Activity Cost/day to crash Cost of crashing
•A 600/2 = 300 300 (2) = 600
•C 500/2 = 250 250 (2) = 500
•E 500/1 = 500
•F 800/2 = 400
• Cost of Crash = 1,100

• Total project cost = Normal Cost + Cost to Crash

• Total project cost = 21,000 + 1100 = P22,100 okay
• No. of days to be deducted = 4 days

•
Engr. Nelia V. Aman, Ed.D.
 THANK YOU

Engr. Nelia V. Aman, Ed.D.