OPERATIONS

RESEARCH
For Engineering, Computer Science, Commerce & Management,
Economics, Statistics, Mathematics, CA, ICWA and CS.
Also Useful for IAS and Other Competitive Examinations.

Er. PREM KUMAR GUPTA

B.Sc. (Hons.)-Mech. Engg., M.Sc.-Mech. Engg. (Distinction), M.I.E. (India)
Formerly Assistant Professor,
P.E.C. Institute of Engineering and Technology (Deemed University),
Chandigarh

Dr. D.S. HIRA

B.Sc.-Mech. Engg., M.Sc.-Mech. Engg., Ph.D. (Roorkee)
Director General
Swami Vivekanand Group of Institutes, Banur, Distt. Patiala, Punjab

S. CHAND & COMPANY PVT. LTD.

(AN ISO 9001: 2008 COMPANY)
RAM NAGAR, NEW DELHI-110 055
14. NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM)
1240--1355
14.1 Project 1240
14.2 Project Planning 1240
14.3 Project Scheduling 1241
14.4 Project Controlling 1241
14.5 Work Breakdown Structure (W.B.S.) 1242
14.6 Basic Tools and Techniques of Project Management 1242
14.7 Role of Network Techniques in Project Management 1243
14.8 Network Logic (Network or Arrow Diagram) 1243
14.9 Numbering the Events (Fulkerson's Rule) 1245
14.10 Activity on Node Diagram 1251
14.11 Merits and Demerits of AON Diagrams 1254
Exercises 14.1 (1 to 18) 1254
14.12 Critical Path Method 1256
Exercises 14.2 (1 to 43) 1267
14.13 Programme Evaluation and Review Technique (PERT) 1276
Exercises 14.3 (1 to 38) 1291
14.14 Cost Analysis and Crashing the Network 1300
Exercises 14.4 (1 to 36) 1318
14.15 Resource Scheduling 1329
14.16 Updating 1344
Exercises 14.5 (1 to 14) 1348
14.17 Objectives of Network Analysis 1351
14.18 Advantages of Network Techniques 1351
14.19 Limitations of Networks 1352
14.20 Difficulties in Using Network Methods 1352
14.21 Comments on the Assumptions of PERT/CPM 1352
14.22 Applications of Network Techniques 1353
14.23 Distinction Between PERT and CPM 1353
14.24 Linear Programming Formulation 1354
Exercises 14.6 (1 to 10) 1354
14.1 PROJECT
The term project has been defined by many authors, and each one has defined it from his own
point of view and in the perspective of his own field of activity. Most often a project is de.fined
as a combination of interrelated activities which must be executed in a certain order before the
entire task is completed. The salient characteristics of a project are
l. A project has identifiable beginning and end points; it is an entity by itself.
2. It is not a permanent entity, it is usually a non-repetitive task.
3. It can be broken down into identifiable activities which require time and resources for
their execution.
4. It is scheduled to be completed by a target date.
5. The objectives are clear and output or end product definite.
6. It is usually large and complex with time horizon of 2 to 3 years. However, some projects
have taken more than l O years while others have lasted for less than 6 months.
7. It usually involves heavy investment.
8. Execution of project activities and hence completion of the project is always subject to
some uncertainties and risks.
Each project, whether big or small, has three basic requirements:
(i) It should be completed without any delay.
(ii) It should use as small man power and other resources as possible.
(iii) It should involve as small investment as possible.
The project management helps to Jul.fill the above requirements.
The project management involves the following three phases:
(i) Project planning
(ii) Project scheduling
(iii) Project controlling
Out of these three phases, the first two are accomplished before the start of the actual
project. The third phase comes into operation during the execution of the project. It highlights
the bottlenecks during execution of the project and spells out measures to remove bottlenecks &
complete the project in time. The network techniques of PERT and CPM are valuable during all
the three phases of project management.

14.2 PROJECT PLANNING

Project planning is an important phase during which are set the plans and strategies of
project execution, keeping in mind the policies, procedures and rules of the organisation. It has two
important aspects-identification of the activities (jobs or tasks) to be performed and estimation
of the required resources. Resources are of many kinds and are classified as:
l. Manpower resources
2. Equipment (machinery) resources
1240
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) +!• 1241
3. Financial resources
4. Material resources
5. Titne & space resources
The manpower resources, say, in a construction project, consist of skilled workers (such as
carpenters, turners, plumbers, fitters, etc.), unskilled labour, supervisory staff and top management.
The equipment resources include plant and machinery such as dragline, power shovel, concrete
mixing plant, etc. The financial resources comprise the money required for the project. The material
resources include all the materials such as cement, sand, concrete, gravel, bricks, steel, etc. to be
used. Space resources include the total space available for the project. It may be limited, thus
causing constraints on the activities of the project. Titne resources involve the total titne available,
which may also be litnited in some projects.
Since resources are the starting points of projects, their proper planning and estimation helps
to estimate the time and cost of the various activities and hence of the entire project.
Project planning involves the following steps:
1. Setting the objectives of the project and the assumptions to be made.
2. Developing the W.B.S. (Work Breakdown Structure). Depending upon the objectives of
the management, the extent of control desired and the availability of computational aids,
the project is broken down into clearly definable activities.
3. Determination of titne estitnates of these activities.
4. Estitnation of resources-financial, managerial and operational.
5. Study of alternative ways of attaining the goals.
6. Establishment of inter-dependence relationship between the activities i.e., the sequence of
performing the activities.

14.3 PROJECT SCHEDULING

Scheduling is the laying out of the project activities along a titne sequence in which they
are to be performed so as to assign the starting and finishing dates to various activities and to
allocate resources to them. In other words, scheduling is the preparation of time table of the
implementation of the activities and computation of resources required at different stages of titne.
It also includes identifying the tasks that are critical & the resources that are litnited so that the
entire project proceeds in a logical, orderly and systematic manner. In short, the scheduling phase
consists of determining:
1. Start and finish times of each activity and the earliest and latest times at which events can
occur.
2. Critical activities that require special attention.
3. Allocating resources-men, machines, materials, etc. to each activity.
4. Slacks and floats for non-critical activities.
5. Various constraints due to litnitation of resources.

14.4 PROJECT CONTROLLING

Controlling phase is the follow up of the planning and scheduling phases. While planning
and scheduling are undertaken before the actual project starts, the controlling phase is undertaken
during the actual execution of the project. The project is monitored to find deviations in actual
progress from the scheduled plan and to apply the corrective measure, so as to achieve the targets.
Project controlling usually involves the following steps:
1. Setting standards and targets with regard to titne and cost of the project.
2. Reviewing the progress by comparing the work accomplished to the work scheduled at
different stages of time and finding the deviations.
3. Evaluating the effect of deviations on the project plan.
4. Updating the project schedule.
1242 + OPERATIONS RESEARCH
5. The corrective measures to rectify the deviations from the plan should be suggested.
This requires decision-making with regard to scheduling of resources, scheduling of jobs,
crashing of projects, etc.

14.5 WORK BREAKDOWN STRUCTURE (W.B.S.)

A Project is a combination of interrelated activities which must be performed in a certain
order for its completion. The process of dividing the project into these activities is called Work
Breakdown Structure (W.B.S.). The activity or unit ofwork or work content is a clearly identifiable
and manageable work unit. The number of activities or the size of each activity will depend upon
the level of detail desired.

14.6 BASIC TOOLS AND TECHNIQUES OF PROJECT MANAGEMENT

The various tools and techniques of project management are grouped into the following two
heads:
1. Bar charts, milestone charts and velocity diagrams.
2. Network techniques.
14.6-1 Bar charts, Milestone charts and Velocity diagrams
Bar charts are the two-dimensional pictorial representation of a project. In a bar chart, the
activities of the project are shown on one axis and their durations are represented on the other axis.
A bar chart helps to review the project progress, allows for rescheduling the project and highlights
the critical activities and other bottlenecks in the completion of the project. A bar chart, however, is
normally suited to small projects. It cannot take into account the uncertainties in activity duration
nor represent the interrelationships between the various activities of the project.
Milestone charts are the modified and improved versions of bar charts. However, whereas bar
charts represent activities, milestone charts represent the events which mark either the beginning
or the end of an activity. Though milestone charts are more detailed and offer better control than
bar charts, they possess most of the drawbacks inhert in bar charts.
Velocity diagrams are useful for representing the activities which require a series of crews
working in a given sequence.
14.6-2 Network Techniques
A network (also called network diagram or network technique) is a symbolic representation
of the essential characteristics of a project. PERT and CPM are the two most widely applied
techniques.
(a) Programme Evaluation and Review Technique (PERT)
It uses event oriented network in which successive events are joined by arrows. It is preferred
for projects that are non-repetitive and in which time for various activities cannot be precisely
pre-determined. There is no significant past experience to guide; they are once-through projects.
Launching a new product in the market by a company, research and development of a new war
weapon, launching of satellite, sending space craft to Mars are PERT projects. Three time estimates
- the optimistic time estimate, pessimistic time estimate and the most likely time estimate are
associated with each and every activity to take into account the uncertainty in their times.
(b) Critical Path Method (CPM)
It uses activity oriented network which consists of a number of well recognised jobs, tasks
or activities. Each activity is represented by arrow and the activities are joined together by events.
CPM is generally used for simple, repetitive types of projects for which the activity times and costs
are certainly and precisely known. Projects like construction of a building, road, bridge, physical
verification of store, yearly closing of accounts by a company can be handled by CPM. Thus it is
deterministic rather than probabilistic model.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) +!• 1243
14.7 ROLE OF NETWORK TECHNIQUES IN PROJECT MANAGEMENT
The complexities of the present-day management problems and the business competitions
have added to the pressure on the brains of decision-makers. In a large and complex project
involving a number of interrelated activities, requiring a number of men, machines and materials,
it is not possible for the management to make and execute an optimum schedule just by intuition
based on the organisational capabilities and work experience. Managements are, thus, always
on the look out for some methods and techniques which may help in planning, scheduling and
controlling the project. The aim of planning is to develop a sequence of activities of the project,
so that the project completion time and cost are properly balanced and the excessive demand
of key resources is avoided. To meet the object of systematic planning, the managements have
evolved a number of techniques applying network strategy. As already explained, PERT and CPM
are two such widely applied techniques used for planning, scheduling and controlling of large
and complex projects. With slight modifications both have given rise to several other network
techniques, such as PEP (Programme Evaluation Procedure), RAMPS (Resource Allocation for
Multi-Project Scheduling), LESS (Least CostEstimating and Scheduling) and SCANS (Scheduling
and Control by Automated Network System), etc.

14.8 NETWORK LOGIC (NETWORK OR ARROW DIAGRAM)

Some of the terms commonly used in networks are defined below.
Activity
It is physically identifiable part of a project which requires time and resources for its
execution. An activity is represented by an arrow, the tail of which represents the start and the
head, the finish of the activity. The length, shape and direction of the arrow has no relation to the
size of the activity.
Event
The beginning and end points of an activity are called events or nodes. Event is a point in
time and does not consume any resources. It is represented by a circle. The head event, called the
jth event, has always a number higher than the tail event, called the ith event i.e.,}> i. For example
Activity
j

Event Event
Fig. 14.1

'Making the pattern of impeller' is an activity.

'Start making the pattern of impeller' is an event.
'Pattern making completed' is an event.
Path
An unbroken chain of activity arrows connecting the initial event to some other event is
called a path.
Network
It is the graphical representation of logically and sequentially connected arrows and nodes
representing activities and events of a project. Networks are also called arrow diagrams.
Network Construction
Firstly the project is split into activities. Start and finish events of the project are then
decided. After deciding the precedence order, the activities are put in a logical sequence by using
the graphical notations. While constructing the network, in order to ensure that the activities fall
in a logical sequence, following questions are checked:
1244 •:• OPERATIONS RESEARCH
(i) What activities must be completed before a particular activity starts ?
(ii) What activities follow this ?
(iii) What activities must be performed concurrently with this ?
Activities which must be completed before a particular activity starts are called the predecessor
activities and those which must follow a particular activity are called successor activities.
While drawing the network following points should be kept in mind:
l. Each activity is represented by one and only one arrow. But in some situations where an
activity is further subdivided into segments, each segment will be represented by a separate
arrow.
2. Time flows from left to right. Arrows pointing in opposite direction are to be avoided.
3. Arrows should be kept straight and not curved.
4. Angles between the arrows should be as large as possible.
5. Arrows should not cross each other. Where crossing cannot be avoided, bridging should
be done as shown in Fig. 14.6.
6. Each activity must have a tail and a head event. No two or more activities can have the
same tail and head events.
7. An event is not complete until all the activities flowing into it are completed.
8. No subsequent activity can begin until its tail event is completed.
9. In a network diagram there should be only one initial event and one end event.
Dummy
An activity which only determines the dependency of one activity on the other, but does
not consume any time is called a dummy activity. Dummies are usually represented by dotted
line arrows.
To illustrate the use of dummy, refer to Fig. 14.2 (a) and assume that the start of activity C
depends upon the completion of activities A and B and that the start of activity E depends only
on the completion of activity B. For this situation, figure 14.2 (a) is a faulty representation. This
is corrected by introducing a dummy activity D as shown in Fig. 14.2 (b).

A C
A
·QI
C
•
:o
I
(Dummy activity)

B E
__B_ _ _
• O,____
I

E_••

(a) (b)
Fig. 14.2. (a), (b)

A dummy activity is introduced in the network for two basic reasons:

l. To maintain the precise logic of the precedence of activities. Such a dummy is called
'logical dummy'. It is shown in Fig. 14.2 (b).
2. To comply with the rule that no two or more activities can have the same pair of tail and
head events. Such a dummy is called 'grammatical dummy'. In Fig. 14.2 (c), both activities
A and B have the same tail event 10 and same head event 20, which is incorrect since no
two activities can have the same pair of tail and head events. Such activities are called
duplicate activities. This difficulty is resolved by the introduction of a dummy activity in
any of the four ways represented in Fig. 14.2 (d), (e), (j) or (g).
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1245
A

(c) (d)

(e) (f)

(g)

Fig. 14.2. (c) to (g)

Looping (Cycling)
Sometimes due to faulty network sequence a condition illustrated in figure 14.3, arises. Here
the activities D, E and F form a loop (cycle). Activity D cannot start until F is completed, which,
in tum, depends upon the completion of E. But Eis dependent upon the completion of D. Thus
the network cannot proceed. This situation can be avoided by checking the precedence relationship
of the activities and by numbering them in a logical sequence.
3
E
D

Fig.14.3

14.9 NUMBERING THE EVENTS (FULKERSON'$ RULE)

After the network is drawn in a logical sequence, every event is assigned a number which
is placed inside the node circle. The number sequence should be such as to reflect the flow of the
network. The rule devised by D.R. Fulkerson is used for the purpose of numbering. It involves
the following steps:
l. The initial event which has all outgoing arrows with no incoming arrow is numbered ' l ' .
2. Delete all the arrows coming out from node ' l '. This will convert some more nodes (at
least one) into initial events. Number these events 2, 3,..
3. Delete all the arrows going out from these numbered events to create more initial events.
Assign the next numbers to these events.
4. Continue until the final or terminal node, which has all arrows coming in with no arrow
going out, is numbered.
To illustrate the numbering technique let us consider the network shown in figure. 14.4.
Event A is initial event and is numbered l. Delete the arrows a and b. This will create two
more ( B & C) initial events. Number these 2 & 3. Now delete the arrows coming out from nodes
1246 •:• OPERATIONS RESEARCH

Fig.14.4

2 and 3, i.e. , delete the arrows c, d, e andj This converts D and Finto initial events. Number these
nodes as 4 and 5. Then delete the arrows g , h and i ; the two nodes E and G become the initial
nodes and they are numbered 6 and 7. Then the last event or terminal event is numbered as 8.
This continuous numbering may be all right when the project is very small and the network
is not liable to any modifications later on. But in large networks, where extensive modification
may have to be made, there should be scope of adding more events and numbering them without
causing any inconsistency or loops. This is achieved by skip numbering. One way is to assign the
numbers such as 10, 20, 30, 40, ... , or 4, 8, 12, 16, ... , etc. The second way is to leave some numbers
such as 7, 8, 9; 17, 18, 19; 27, 28, 29;... and allot them to the events added afterwards. There can
be still more ways of doing skip numbering.
EXAMPLE 14.1
Draw a network for the simple project of erection of steel works for a shed. The various
activities of the project are as under:
Activity Description Preceded by
A Erect site workshop
B Fence site
C Bend reinforcement A
D Dig foundation B
E Fabricate steel work A
F Install concrete pillars B
G Place reinforcement C,D
H Concrete foundation G,F
I Erect steel work E
J Paint steel work H, I
K Give finishing touch J
Solution
(i) Activities A and B have no preceding activities and can commence immediately
[Fig. 14.5 (a)].

Fig. 14.5 (a) Fig. 14.5 (b)

 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1247
(ii) Activities C and E can start once A has finished, while D and F can start once B has
finished. Note that activity D has been given the same head event as activity C in Fig. 14.5 (b).
(iii) The remaining network is completed as follows : Activity G follows C and D. Since H
is preceded by G and F, the two have the same head event, which becomes the tail event for H.
Similarly, I and H have been shown to be preceding J. Activity K follows J [ Fig. 14.5 (c)].

Fig. 14.5 (c)

EXAMPLE 14.2
A project consists of a series of tasks labelled A, B, ... , H, I with the following relationships
( W < X Y means X and Y cannot start until Wis completed; X Y < W means W cannot start
until both X and Y are completed). With this notation construct the network diagram having the
following constraints:
A < D, E; B, D < F; C < G; B < H; F, G < I.
[G.N.D.U. B.Com. April, 2006; PUB.Com. Sept., 2005]
Solution
For the given precedence relationships, the project network shown in Fig. 14.6 is obtained.
Since His preceded by B while F is preceded by B and D, a dummy activity must be incorporated
to draw the network. As explained in article 14.8, this dummy is a logical dummy. The last three
activities E, H and I are made to join at the last event as a network can have only one start and
only one end event.

C G

Fig. 14.6

EXAMPLE 14.3
Draw a network for the following project and number the events according to Fulkerson s
rule:
A is the start event and K is the end event,
A precedes event B,
J is the successor event to F,
C and D are successor events to B,
D is the preceding event to G,
E and F occur after event C,
E precedes F,
C restraints the occurrence of G and G precedes H,
H precedes J and K succeeds J,
F restraints the occurrence of H. [Bombay B.Sc. (Stat.) 1974]
1248 •!• OPERATIONS RESEARCH
Solution
In this problem, the events A, B, C, D, E, F, G, H, J, and K constitute the network. The
network is shown in Fig. 14.7. Along the nodes are given their numbers as obtained by Fulkerson's
rule.
5

Fig.14.7

EXAMPLE 14.4
Draw the network diagram for the following list of activities:
Activity Immediate Activity Immediate
predecessor predecessor
A - L K
B A M K
C B N K
D C 0 D
E D p 0
F E Q B
G E R N
H C s L,M
I C,F T s
J G,H,1 u P,Q
K J V u
[C.A. Nov. , 1982]
Solution
The network for the given data is shown in Fig. 14.8. Events are then numbered according
to Fulkerson's rule. D 1 and D 2 are the dummy activities which must be incorporated to connect
the given activities logically and correctly.

Fig. 14.8
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) + 1249
EXAMPLE 14.5
Depict the following dependency relationships by means of network diagrams. The alphabets
stand for activities.
(i) A and B control F; B and C control G.
(ii) A and B control F; B controls G while C controls G and H.
(iii) A controls F and G; B controls G while C controls G and H.
(iv) F and Gare controlled by A; Gand Hare controlled by B with H controlled by B
and C.
(v) A controls F, G and H; B controls G and H with H controlled by C.
Solution
The dependency relationships are depicted by Fig. 14.9 (i) through (v). The use of dummy
activities is to be noted.
A
A
•9 I
F
• •9 I
F
•
I I
B
·¢ I
~ - - -- ~
... ... ...
I
... ...
C
-6(i)
G
• C •O . . H •
(ii)

A F A F
•O I
• •O I
•
I I

B
•9'I
G
• ~---~
''
I ''
C
·6(iii)
H
• C H
:0 (iv)
•
A F
•O I
•
I

B
•O' I
G
•
I

C
-6 (v)
H
•
Fig. 14.9 (i) to (v)

EXAMPLE 14.6
Construct a network diagram for a project comprising of activities B, C, E, F, G, H, /, J, L,
M, N, P and Q such that the following precedence relationships are satisfied:
B < E, F; C, F < G; C < L; E, G < H; H, L < I; H < J; L < M; H, M < N; /, J < P;
N < Q. [.Hf. B.E.(Mech.) 2004]
Solution
The network is shown in Fig. 14.10. Four dummy activities have been used. Since activity
L depends upon C, and G depends upon both F and C, dummy D 1 is required. Dummies D 2 and
1250 •!• OPERATIONS RESEARCH
D 3 establish that I depends on both H and L, while J depends only on H. Activity N depends on
H and M both, while J depends on H. These precedence orders are established by employing D4 .
The nodes of the network have been numbered using the Fulkerson's rule.

Fig.14.10

EXAMPLE 14.7
A batch of 4 axles is to be processed on the following three machines in the sequence: lathe
(L), milling (M) and grinding (G). Instead of working on these 4 axles first on lathe, then on
milling and finally on grinding in this sequence, it is desired to process the first axle on the lathe
and as and when it is processed, it is taken up on milling and the second axle on the lathe, and
so on. In other words, each of the three activities L, M and G have been quartered for the sake
of concurrent operations. Draw the network for the problem.
Solution
Dependency relationships are sorted out as under:
Quartered activity Preceded by
L, None
L2 L,
L3 L2
L4 L3
M, L,
M2 L 2, M 1
M3 L3, M2
M4 L4, M3
G, M,
G2 M 2, G 1
G3 M3, G2
G4 M4, G3
The network constructed is shown in Fig. 14.11

G1
Fig.14.11

EXAMPLE 14.8
The activities along with their dependency relationships are given below. Draw an arrow
diagram.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1251
Activity A B C D E F G H I
Immediate predecessor C A,B C E,F D F,H
Solution
Activities A, B and C do not have any predecessors,
so they can start from the same initial event. D has to
follow C. Activity E follows A and B. Since Eis to start
from one event, a dummy is required. Activity F follows
C and H follows D. Next, activity G depends upon E and
F. Both E and F could be made to merge in one event.
But E also controls I. I is controlled by H but not F. Thus
two more dummies are required to complete the project
as shown in Fig. 14.12. Activities G and I are made to
meet at the last event. Fig.14.12

EXAMPLE 14.9
The activities along with their dependency relationships are given below. Draw the arrow
diagram.
Activity Immediate Activity Immediate
predecessor predecessor
A -
G B,C
B -
H C
C -
I E, F
E A J G, H
F A,B K H

Solution
The activity on arrow diagram for this data is shown in Fig. 14.13. It can be observed that
there are five dummy activities DI' D 2 , D 3, D4 and D 5 in the network, while there are ten real
activities.

Fig. 14.13

14.10 ACTIVITY ON NODE DIAGRAM

It is observed from the above diagrams that while constructing the arrow diagram
(conventional network) , many a times dummy activities have to be included to represent the
precedence relationship between the activities correctly i.e., to maintain the logic. This results in
increased number of activities, lengthy and cumbersome networks and more time and effort for
analysis.
1252 •!• OPERATIONS RESEARCH
The activity on node (AON) diagram, as the name suggests, represents the activities by
nodes or circles with the arrows connecting them representing the precedence relationship between
them. Though all the arrows in AON diagram are like dummies, since they do not require any
time or resources and represent only the dependency relationships, yet no dummies are required
in the AON diagram. The tail of each arrow is on the predecessor activity, while the head is on
the successor activity as shown in Fig. 14.14 (b) in which activity A precedes B.
A,3 B,5
~
3 5 0--------0
(a) Arrow diagram (b) AON diagram
Fig.14.14

Let us consider a few examples and compare the conventional arrow diagrams and AON
diagrams for some project networks.
EXAMPLE 14.10
The dependency relationships between the activities of a project are shown below. Draw the
arrow and AON diagrams.
Activity A B C D E F
Immediate predecessor A,B B B,C
Solution
The arrow diagram for these dependency relationships is shown in Fig. 14.15 (a). It may be
observed that two dummy activities D 1 and D 2 have to be included since activities D and F have,
in addition to A and C, activity B as a common immediate predecessor.

(a) Arrow diagram (b) AON diagram

Fig.14.15 (a), (b)

The AON diagram is shown in Fig. 14.15 (b) in which a circle is drawn for each activity
and it is joined with its immediate successor by an arrow. Thus no dummies are required in the
AON diagram. Since the project starts with more than one activity, a 'fictitious' start activity is
used to initiate the network. Likewise, as there are more than one activities marking the end of
the project, a fictitious finish activity is used to represent the end of the project.
The name of the activity, its duration or any other detail are written within the activity node
which may be a circle or a rectangle.
EXAMPLE 14.11
The precedence relationships for the activities of a project are given below. Draw the arrow
diagram as well as AON diagram.
Activity Immediate Activity Immediate
predecessor predecessor
A - G B,C
B - H C
C - I E, F
E A J G,H
F A,B K H
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1253
Solution
The activity on arrow diagram for this project is drawn in Fig. 14.16 (a). It can be observed
that there are five dummy activities D" D 2 , D 3 , D4 and D 5 and ten real activities. Fig. 14.16 (b)
shows the AON diagram which is free from dummy activities.
E

-------7
H
(a) Arrow diagram

(b) AON diagram

Fig.14.16 (a), (b)

EXAMPLE 14.12
Draw the AON diagram for the following data:
Activity Immediate Predecessor Duration (weeks)
A -
5
B A 4
C A 7
D B 6
E B, C 6
F C 5
G D, E, F 7
Solution
The AON diagram is drawn in Fig. 14.17. The rectangles for activity nodes are drawn first
and they are then joined by arrows to represent the given precedence relationships.

Fig.14.17
1254 (+ OPERATIONS RESEARCH

14.11 MERITS AND DEMERITS OF AON DIAGRAMS

The greatest merit of AON diagram is its simplicity. It is easier to draw, interpret, review
and revise. Absence of dummies makes it more readily understood by non-technical users.
However, in spite of simplicity and other merits of AON diagrams, arrow diagrams continue
to enjoy popularity among the users of network techniques. Perhaps the main reasons of popularity
are their early development and suitability to PERT. Arrow diagrams became well established
before AON diagrams came into existence. PERT emphasises more on events, which form the
nodes of arrow diagrams and due to this reason arrow diagrams became the basis of PERT analysis.
Secondly, activities on arrows suggest the flow of work or the progress of the project, while
activities on nodes make the network appear static. Thirdly, the users of arrow diagrams argue
that identification of the activity in numeric form, that is by the tail and head event numbers (i, j)
makes it more suitable for computer programming. The numeric job description, supplies all the
connected dependency relations. In case of AON diagram, for every activity, its predecessor as
well as successor activities have to be supplied, which makes the computer programming more
involved as well as requiring more storage space in computer memory. However, the merits and
demerits of both diagrams discussed above are only the subjective opinions of its users. Computer
programs for both the systems are available and are being used. From the application point of
view, arrow diagram seems to enjoy better popularity, basically because of its better suitability to
PERT, which is very popular technique of project management. On the other hand AON diagram
is being increasingly used in construction industry, where CPM is used for planning, scheduling
and controlling the project. Thus it may be concluded that while arrow diagrams are more common
with probabilistic networks, AON diagrams are more popular with deterministic networks.

EXERCISES 14.1
1. Explain the rules of network construction. [Chennai U.B.B.A. Nov., 2010]
2. Define event, activity, looping, dangling, network and project. [Chennai U.B.C.A. Nov., 2010;
P.T.U. B.Tech. (C.Sc.) 2010; (Mech.) 2011, 2010; P.U. B.E. (Mech.) 1997, Nov, 1996;
B.Com. Jan., 2005; R.T.M Nagpur U. B.Tech. Dec., 2003]
3. Explain the rules devised by Fulkerson.
[P.T.U. B.Tech. (C.Sc.) 2010; P.U. B.Com. Jan., 2005; Sept., 2005]
4. What are the different phases of project management? What do you understand by event, path, dummy
and looping? [P.U. B.E. (I'.I.T.) Dec., 2006; B.E. (Mech.) 2006; B.E. (Elect.) 1998]
5. Construct the network for the following activity data:
Activity Preceded by Activity Preceded by
A
B H F
C B I H
D A J I
E C K D,E,G,J
F C L I
G F M K,L
6. Construct the network for the following activity data:
Activity Preceded by Activity Preceded by
A G B,C
B H F
C A I F,G
D B,C J H,I
E D K B
F E L F,G,K
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1255
7. Draw the network for the following activities:
Activity Preceded by Activity Preceded by
A K I
B A L I,J
C A M L
D C N K,M
E C 0 N
F B,D p N
G E Q N
H F,G R N
I H s N
J H T N
8. A new type of conveyor is to be designed. The following list represents the major activities together
with the precedence relationship. Construct the network diagram.
Activity no. 1 2 3 4 5 6 7 8 9 10 11
Preceding activity 3 2,3 4,5 5 7 6 9,8 10
9. Construct a PERT network for the following activity data:
Activity no. A B C D E F G H I J K L
Immediate
predecessor None None A B C E F F H G,I D,G K
10. Assume that you are letting a contract for widening a street. Draw a network for the activities from
the start of preparation of specifications until contractor goes ahead.
Task A B C D E F G H I J K L
Immediate
predecessor A A B C C E F G, H G, H J
11. Construct the network for the following information:
Activity no. A B C D E F G H J K L M N
Immediate
predecessor C A, D E B F H I G, J G, J K L, M
12. Construct the network for the following set of activities:
Activity no. A B C D E F G H I J K L
Predecessor A B C B, D C, E F F E, G, I H, J
13. Construct the network for a project in which activities have the following precedence relationships:
A ,C,D can start immediately. E > B, C ; F, G > D ; H, I > E, F ; J > I, G; K > H ; B > A.
[PU. B.E. (Mech. ) April, 1976]
14. Construct the network for the following set of activities:
Activity A B C D E F G H J
Immediate
predecessor B A, B A, B B E, D, F D, E E, F H, G,I,C
[Hint. The network is drawn below.]
D

J
A

Fig.14.18

15. The Rubik's cube is manufactured in six steps, labelled A through F. Because of its size and complexity,
the cube is produced one at a time. The production control manager thinks that network scheduling
techniques might be useful in planning future production. He recorded the following information:
1256 •!• OPERATIONS RESEARCH
(i) A is the initial step and precedes B and C
(ii) C precedes D & E
(iii) B succeeds D and precedes E
(iv) F succeeds E and
(v) D precedes F.
Simplify the diagram by removing the redundant activities. Draw the AON diagram. After rechecking
the network it was concluded that B is really a predecessor of D rather than vice versa.
16. A project consists of activities from A to L. The order in which the activities fall is as follows: A
comes first and precedes B, C , D. Both B and C must be completed before E starts. C and D must
come before F but G and H can start as soon as D is completed. Activity I succeeds D, E, F and G.
Activities J and K succeed G , H, I but precede L.
Eliminate the redundant activities and drew AON diagram.
17. The dependency relationships of the activities of a project are given below:
Activity A is followed by B; B is followed by C; D depends on C and G; G depends on A and B; E
depends on B, C , D; J and H follow activity G; I follows G , D, H; K depends on D, H; F depends on
E, H, I. L depends on D, J & K. Draw the AON diagram.
18. A list of activities and their precedence relationships are given below:
Activity A B C D E F G H I J K
Predecessor activity A B A, C D E C D, E, C G, H F, H, J
G, I
Draw an activity on node network diagram. [/GNOU MBA, 2002]
[Hint : The AON diagram is shown in Fig. 14.19.]

B
K
A

D E F
Fig.14.19

14.12 CRITICAL PATH METHOD

Measure of Activity
Each task or activity takes sometime for its completion. This time duration depends upon
the nature of the activity. Some activities are rarely performed and no data exists for their time
durations. Their time consumption involves a considerable degree of uncertainty. Such activities are
called 'variable activities' and stochastic modelling techniques are applied in their time estimation.
Under this category fall the activities which demand creative ability, such as, research, design and
development work and the activities which are performed under uncertain environments, such as,
construction work during rainy season.
On the other hand, there are activities for which the associated time duration can be accurately
estimated. Such activities are said to be deterministic in nature or deterministic type. These
activities are usually repetitive in nature. Also it is presumed that (i) skilled persons experienced
in method study are available to do the job (ii) sufficient additional resources are available to allow
uninterrupted activity. Above all, it is the assumption of confidence that all will go well. Figures
14.20 (a) and (b) show frequency distribution curves for the two types of activities. In Figure 14.20
(a), the dispersion of the curve is more and hence more is the uncertainty. In Fig. 14.20 (b), for
deterministic type activity, the dispersion is less and the system tends to be more deterministic.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1257
The projects which comprise of the variable type activities associated with probabilistic time
estimates, employ PERT version of the networks and the projects comprising of deterministic type
of activities are handled by CPM version of networks.
This is the main difference between the two techniques. The other difference between the
two is that PERT is event-oriented while the CPM is activity-oriented. In Fig. 14.20 (a) and (b),

1- 1-
(a) (b)
Fig. 14.20 (a), (b)
t = Activity time,
p (t) = relative frequency of occurrence.
Time Units
Any convenient time unit can be used, but it must be consistent throughout the network.
Depending upon the project length and level of detail, time unit may be working days, shifts or
weeks. Full time units are usually used, for instance activity estimated at 3 days and 6 hours will
be assigned 4 days.
Critical Path Analysis
The Critical path of a network gives the shortest time in which the whole project can be
completed. It is the chain of activities with the longest time durations. These activities are called
critical activities. They are critical in the sense that delay in any of them results in the delay of
the completion of the project. There may be more than one critical path in a network and it is
possible for the critical path to run through a dummy. The critical path analysis consists of the
following steps:
l. Calculate the time schedule for each activity : It involves the determination of the time
by which an activity must begin and the time before which it must be completed. The
time schedule data for each activity include the calculation of the earliest start, the earliest
finish, the latest start, the latest finish times and the float.
2. Calculate the time schedule for the completion of the entire project : It involves the
calculation of project completion time.
3. Identify the critical activities and find the critical path : Critical activities are the ones
which must be started and completed on schedule or else the project may get delayed.
The path containing these activities is the critical path and is the longest path in terms of
duration.
Consider the network shown in Fig. 14.21 which consists of the following activities:
Activity 1-2 1-3 2-3 2-5 3-4 3-6 4-5 4-6 5-6 6-7
Duration (weeks) 15 15 3 5 8 12 l 14 3 14
E = 18
L = 18

E = 54
L = 54

>====J-.( 2 1 - - - - - 5 - - - - - l ~
E = 15
L = 15 Fig.14.21
1258 •!• OPERATIONS RESEARCH
The earliest start time (E) for an activity represents the time at which an activity can begin
at the earliest. It assumes that all the preceding activities start and finish at their earliest times.
For instance earliest start times of activities 1-2 and 1-3 are zero each or the earliest occurrence
time of event l is zero. Earliest start times of activities 2-3 and 2-5 or the earliest occurrence
time of event 2 is obtained by adding activity time t 12 to earliest occurrence time of event l i.e. ,
itisO+ 15 = 15.
Next consider event 3. It can be reached directly from event l or via event 2, the times for
the two sequences being 15 and 15 + 3 = 18. Since event 3 can occur only when all the preceding
activities and events have taken place, its earliest occurrence time or the earliest start times of
activities emanating from even 3 is 18, the higher of the two values 15 and 18. This is represented
by putting E = 18 around its node in the network. Likewise, the earliest occurrence time of each
event can be determined by proceeding progressively from left to right i.e. , following the fonvard
pass method according to the following rule:
If only one activity converges on an event, its earliest start time E is given by E of the tail
event of the activity plus activity duration. If more than one activity converges on an event, Es via
all the paths would be computed and the highest value chosen and put around the node.
The E 's calculated for the problem at hand are shown in the network diagram.
The latest finish time (L) for an activity represents the latest by which an activity must be
completed in order that the project may not be delayed beyond its targeted completion time. This
is calculated by proceeding progressively from the end event to the start event. The L for the last
event is assumed to be equal to its E and the L's for the other events are computed by the following
rule (using backward pass method):
If only one activity emanates from an event, compute L by subtracting activity duration from
L of its head event. If more than one activity emanates from an event, compute Ls via all the paths
and choose the smallest and put it around the event at hand.
The L's calculated for the problem at hand are shown in the network diagram.
Next, the earliest finish time (TEF) and the latest start time (TLs) for an activity are computed:
TEF = E + ti}'
TLS = L - ti]'
where ti; is the duration for activity i - j. Float (also called total fl.oat) for an activity is then
calculated:
F = L - TEF or F = TLS - E.
Float is, thus, the positive difference between the finish times or the positive difference
between the start times. The following network analysis table is then compiled:
TABLE 14.1
Start time Finish time
Activity (i - 1) Duration (D) Earliest Latest Earliest Latest To tal Float
(1) (2) (3) (4) (5) (6) (7)
1-2 15 0 0 15 15 0
1-3 15 0 3 15 18 3
2-3 3 15 15 18 18 0
2-5 5 15 32 20 37 17
3-4 8 18 18 26 26 0
3-6 12 18 28 30 40 10
4-5 1 26 36 27 37 10
4-6 14 26 26 40 40 0
5-6 3 27 37 30 40 10
6-7 14 40 40 54 54 0
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) (+ 1259
Columns 1 and 2 contain the activities and their durations is weeks. Under column 3 are
noted the E's for the tail events of the activities and under column 6 are noted the L's of the head
events of the activities. Other columns are then computed as follows:
column 4 = column 6 - column 2,
column 5 = column 3 + column 2,
and column 7 = column 6 - column 5,
= column 4 - column 3.
As an example, consider activity 1-2. Its tail event 1 has E = 0. Put O against this activity
under column 3. Its head event 2 has L = 15. Put 15 against it under column 6. Under column 4
write the value in column 6 minus activity duration i.e., 15 - 15 = 0. Under column 5 note the value
in column 3 plus activity duration i.e., 0 + 15 = 15. Compute total float by subtracting column 5
from 6 or column 3 from 4. Total float for activity 1-2 is 0. Similarly, calculate total float for other
activities. Critical path is the path containing activities with zero float. These activities demand
above normal attention with no freedom of action. For the problem at hand it is 1-2-3-4-6-7 and
is shown by double arrows in Fig. 14.21. The project duration is 54 weeks. Sometimes, there may
be more than one critical path i.e., two or more paths with the same maximum completion time.
Non-critical activities have positive float (slack or leeway) so that we may slacken while executing
them and concentrate on the critical activities. While delay in any critical activity will delay the
project completion, this may not be so with the non-critical activities.
The Four Floats
Total float : It is the difference between the maximum time available to perform the activity
and the activity duration. The maximum time available for any activity is from the earliest start
time to the latest completion time. Thus for an activity i - j having duration tii'
Maximum time available = L - E.
Total Float = L - E - tiJ
= (L - ti ) - E or L - (E + ti)
B
= TLS - or L - TEF
Thus the total float of an activity is the difference of its latest start and earliest start times or
the difference of its latest finish and earliest finish times. Total float represents the maximum time
within which an activity can be delayed without affecting the project completion time.
Free Float : It is that portion of the total float within which an activity can be manipulated
without affecting the floats of subsequent activities. It is computed by subtracting the head event
slack from the total float. The head event slack is (L - E) of that event.
:. Free float of activity
i - j = T.F. - (L - E) of event}.
Thus free float is the time by which completion of an activity can be delayed without
delaying its immediate successor activities.
Independent Float : It is that portion of the total float within which an activity can be
delayed for start without affecting the floats of preceding activities. It is computed by subtracting
the tail event slack from the free float. If the result is negative, it is taken as zero.
:. Independent float of activity
i - j = F.F. - (L - E) of tail event i.
Apart from the above three floats, there is another float, namely the interfering float for the
activities.
Interfering Float: Utilization of the float of an activity can affect the floats of the subsequent
activities in the network. Thus, interfering float can be defined as that part of the total float which
causes a reduction in the floats of the succeeding activities. In other words it can be defined as
the difference between the latest finish time of the activity under consideration and the earliest
start time of the following activity, or zero, whichever is larger. Thus, interfering float refers to
that portion of the activity float which cannot be consumed without adversely affecting the floats
of the subsequent activities.
1260 •!• OPERATIONS RESEARCH
It is numerically equal to the difference between the total float and the free float of the
activity. It is also equal to the head event slack of the activity.
Thus interfering float of an activity = T.F. - F.F. = (L - E) of the head event of the activity.
Subcritical Activity : Activity having next higher float than the critical activity is called the
subcritical activity and demands normal attention but allows some freedom of action. The path
connecting such activities is named as the subcritical path. A network may have more than one
subcritical path.
Supercritical Activity : An activity having negative float is called supercritical activity. Such
an activity demands very special attention and action. It results when activity duration is more than
the time available. Such negative float, though possible, indicates an abnormal situation requiring a
decision as to how to compress the activity. It can be done by employing more resources so as to
make the total float zero or positive. Compression of the network, however, involves an extra cost.
Slack : It is the time by which occurrence of an event can be delayed. It is denoted by S
and is the difference between the latest occurrence time and earliest occurrence time of the event.
i.e. , S = L - E of the event.
In the above discussion, the term float has been used in connection with the activities and
slack for the events. However, the two terms are being used interchangeably i.e., slack for the
activities and float for the events by some of the writers.
EXAMPLE 14.12·1
Tasks A, B, C, ... , H, I constitute a project. The precedence relationships are
A < D; A < E; B < F; D < F; C < G; C < H; F < I; G < I.
Draw a network to represent the project and find the minimum time of completion of the
project when time, in days, of each task is as follows:
~k A B C D E F G H I
Time 8 JO 8 JO 16 17 18 149
Also identify the critical path. [PTU. B.Tech. April, 2012; PU. B.Com. Sept., 2005]
Solution

Fig. 14.22 (a)

The given precedence order reveals that there are no predecessors to activities A, B, and C
and hence they all start from the initial node. Similarly, there are no successor activities to activities
E, H and I and hence, they all merge into the end node of the project. The network obtained is
shown in Fig. 14.22 (a).
The nodes of the network have been numbered by using the Fulkerson's rule. The activity
descriptions and times are written along the activity arrows. To determine the minimum project
completion time, let event l occur at zero time. The earliest occurrence time (E) and the latest
occurrence time (L) of each event is then computed.
E 1 =O,
E2 = E 1 + t 12 = 0 + 8 = 8,
E3 = E 1 + t 13 = 0 + 8 = 8,
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1261
E4 = Max. [O + 10, 8 + 10] = 18,
E5 = Max. [18 + 17, 8 + 18] = 35,
E6 = Max. [8 + 16, 35 + 9, 8 + 14] = 44.
Similarly,
L 6 = E6 = 44,
L5 = L6 - t 56 = 44 - 9 = 35,
L4 = L 5 - t45 = 35 - 17 = 18,
L3 = Min. [44 - 14, 35 - 18 ] = 17,
L 2 = Min. [44 - 16, 18 - 10] = 8,
L 1 = Min. [8 - 8, 17 - 8, 18 - 10] = 0.
The E and L values for each event have been written along the nodes in Fig. 14.22 (b).
E=8
L=8

E =44
L = 44

The critical path is now determined by any of the following methods:

Method l. The network analysis table is compiled as below.
TABLE 14.2
Start time Finish time
Activity Duration Earliest Latest Earliest Latest Total Float
1-2 8 0 0 8 8 0
1-3 8 0 9 8 17 9
1-4 10 0 8 10 18 8
2-4 10 8 8 18 18 0
2-6 16 8 28 24 44 20
3-5 18 8 17 26 35 9
3-6 14 8 30 22 44 22
4-5 17 18 18 35 35 0
5-6 9 35 35 44 44 0
Activities l-2, 2-4, 4-5 and 5-6 having zero float are the critical activities and l-2-4-5-6 is
the critical path.
Method 2. For identifying the critical path, the following conditions are checked. If an
activity satisfies all the three conditions, it is critical.
(i) E = L for the tail event.
(ii) E = L for the head event.
(iii) E1 - E; = L1 - L; = t;l
Activities 1-2, 2-4, 4-5 and 5-6 satisfy these conditions. Other activities do not fulfil all the
1262 •!• OPERATIONS RESEARCH

three conditions. The critical path is, therefore, 1-2-4-5-6.

Method 3. The various paths and their durations are:
Path Duration (days)
1-2-6 8+16=24
1-2-4-5-6 8 + 10 + 17 + 9 = 44
1-4-5-6 10 + 17 + 9 = 36
1-3-5-6 8 + 18 + 9 = 35
1-3-6 8 + 14 = 22
Path 1-2-4-5-6, the longest in time involving 44 days, is the critical path. It represented by
bold lines in Fig. 14.22 (b).
EXAMPLE 14.12·2
A project schedule has the following characteristics:
Activity Time (weeks) Activity Times (weeks)
1- 2 4 5-6 4
1 - 3 5-7 8
2 - 4 6-8
3 - 4 7-8 2
3 - 5 6 8 - 10 5
4 - 9 5 9 - 10 7
(i) Construct the network.
(ii) Compute E and Lfor each event, and
(iii) Find the critical path.
[PTU. B.Tech. April, 2012; Kuru. U. B.E. (Mech.) June, 2012; J.N.TU. Hyderabad
B.Tech. Sept., 2011; G.N.D.U. B.Com. April, 2009; PUB. Com. April, 2006, 2000;
PT U. B.E. (Mech.) May, 2006; DOEACC, 1996]
Solution
The given data results in a network shown in Fig. 14.23. The figures along the arrows
represent the activity times.
E=4
L=9

E =22
L = 22

7
E = 15
L = 15
Fig.14.23

The earliest occurrence time (E) and the latest occurrence time (L) of each event are now
computed by employing forward and backward pass calculations.
In forward pass computations,
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1263
E 1 =O,
E2 = E 1 + t 12 = 0 + 4 = 4,
E 3 =E 1 +t13 =O+ 1 = 1,
E4 = Max [E+t 1 =Max. [4+ 1, 1 + l] = 5,
i = 2, 3 I z4J
Es = E 3 + t 3s = 1 + 6 = 7,
E6 = Es + ts 6 = 7 + 4 = 11 ,
E 7 = Es + ts 7 = 7 + 8 = 15,
Eg = Max [E + tg] = Max. [11 + 1, 15 + 2] = 17,
i = 6, 7 I I

E9 = E4 + t49 = 5 + 5 = 10, and

E 10 = ;".;f~ [E; + T; 10 ] = Max. [17 + 5, 10 + 7] = 22.
E values are represented in Fig. 14.23.
In backward pass computations,
LIO= EIO = 22,
L9 = LIO - t 9, 10 = 22 - 7 = 15,
Lg=L 10 -tg, 10 =22-5= 17,
L 7 = Lg - t78 = 17 - 2 = 15,
L6 = Lg - t6 g = 17 - 1 = 16,
L = Min [L - t .] = Min. [16 - 4, 15 - 8] = 7,
S f =6, 7 J SJ

L4 =L 9 -t49 = 15-5= 10,

=4, s [LJ - t 31.] = Min. [10 - 1, 7 - 6] = 1,

L 3 = jMin
L2 = L4 - t24 = 10 - 1 = 9,
L = Min [L - t .] = Min. [9 - 4, 1-1] = 0.
1 J = 2,3 J 11

L values are also represented in Fig. 14.23. Network analysis table is given below.
TABLE 14.3

Duration Start time Finish time

Activity (weeks) Earliest Latest Earliest Latest Total Float
1-2 4 0 5 4 9 5
1-3 1 0 0 1 1 0
2-4 1 4 9 5 10 5
3-4 1 1 9 2 10 8
3-5 6 1 1 7 7 0
4-9 5 5 10 10 15 5
5-6 4 7 12 11 16 5
5-7 8 7 7 15 15 0
6-8 l 11 16 12 17 5
7-8 2 15 15 17 17 0
8 - 10 5 17 17 22 22 0
9 - 10 7 10 15 17 22 5
Path 1-3-5-7-8-10 with project duration of 22 weeks is the critical path.
1264 •:• OPERATIONS RESEARCH
EXAMPLE 14.12·3
The utility data for a network are given below. Determine the total, free, independent and
interfering floats and identify the critical path.
Activity 0-1 1-2 1-3 2-4 2-5 3-4 3-6 4-7 5-7 6-7
Duration 2 8 10 6 3 3 7 5 2 8
[PTU. B. Tech. (Mech.) 2010; H.PU.B. Tech. (Mech.) Nov., 2006; PUB. Com. Sept., 2004]
Solution
The network diagram for the given project data is shown in Fig. 14.24. Activity durations
are written along the activity arrows.
The earliest start and latest finish times of the activities are computed by employing the
forward pass and backward pass calculations as explained in example 14.12-2. These times are
represented in the network around the respective nodes.
The network analysis table is now constructed.
E=10 E=13
L = 16 L = 25

E =27
L = 27

E=12 E = 19
L=12 L=19

Fig.14.24

TABLE 14.4
Activity Duration Start time Finish time Float
Earliest Latest Earliest Latest Total Free Independent Interfering
1 2 3 4 5 6 7 8 9 10
0- 1 2 0 0 2 2 0 0 0 0
1-2 8 2 8 10 16 6 0 0 6
1-3 10 2 2 12 12 0 0 0 0
2-4 6 10 16 16 22 6 0 - 6~0 6
2-5 3 10 22 13 25 12 0 - 6~0 12
3-4 3 12 19 15 22 7 1 1 6
3-6 7 12 12 19 19 0 0 0 0
4-7 5 16 22 21 27 6 6 0 0
5-7 2 13 25 15 27 12 12 0 0
6-7 8 19 19 27 27 0 0 0 0
Total float is the positive, difference between latest and earliest finish times or latest and
earliest start times. For activity, say, 1-2,
total float (T.F.) = 16 - 10 = 8 - 2 = 6.
Similarly, for activity, say 2-5,
total float= 25 - 13 = 22 - 10 = 12 and so on.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1265
Total float calculations are depicted in column 7 of table 14.4.
Free float of activity i - j = T.F. - head event slack
= T.F. - (L - E) of event j.
Thus free float of activity O - 1
= 0 - (L - E) of event 1,
= 0 - (2 - 2) = 0,
free float of activity 1 - 2 = 6 - (16 - 10) = 6 - 6 = 0 etc.
Free floats of various activities are calculated in column 8 of the network analysis table.
Independent fl.oat of activity i - j = F.F. - tail event slack
= F.F. - (L - E ) of event i.
Thus independent float of activity O - 1 = 0 - (0 - 0) = 0,
independent float of activity 1 - 2= 0 - (2 - 2) = 0,
independent float of activity 2 - 4= 0 - (16 - 10) = - 6 ~ 0 and so on.
Independent floats of various activities are calculated in column 9 of the table. If independent
float of an activity is negative, it is taken as zero.
Interfering fl.oat of activity i - j = Max. [L.F. time of i - j - E.S. time ofj - k, O]
Thus interfering float of activity O - 1
= Max.[L.F. time of O - 1 - E.S.time of 1 - 2 or 1 - 3, O]
= Max. [ 2-2, O] = 0,
interfering float of activity 1 - 2 = Max. [L.F. time of 1 - 2 - E.S. time of 2 - 4 or 2 - 5, O]
= Max. [ 16 - 10, O] = 6, etc.
More conveniently, interfering fl.oat of an activity = TF - FF
Thus, interfering float of activity 2 - 5 = 12 - 0 = 12, etc.
Alternatively, interfering float of an activity = Head event slack.
Thus, interfering float of activity 2 - 5 = 25 - 13 = 12, etc.
Interfering floats of various activities are calculated in column 10 of the table 14.4.
EXAMPLE 14.12·4
For the network given in Fig. 14.25, determine the total, free, independent and interfering
fl.oats for each activity. Times for activities are in months.
[PTU. B.Tech. (Mech.) May, 2011; H.PU.B.Tech. (Mech.) Nov., 2010;
PU.B.E. (TJ.T) Nov., 2006; B.Com. April, 2007]
E = 17
L = 17
E =32
L=32

Fig.14.25

Solution
The computations of earliest start, earliest finish , latest start and latest finish times along
with floats are given in table 14.5.
1266 •:• OPERATIONS RESEARCH
TABLE 14.5
Activity Duration Start time Finish time Float
(months) Earliest Latest Earliest Latest Total Free Independent Interfering
1-2 8 0 0 8 8 0 0 0 0
1-3 10 0 2 10 12 2 2 2 0
2-3 4 8 8 12 12 0 0 0 0
2-4 0 8 17 8 17 9 9 9 0
3-4 5 12 12 17 17 0 0 0 0
3-5 6 12 15 18 21 3 3 3 0
4-5 4 17 17 21 21 0 0 0 0
4-8 8 17 24 25 32 7 7 7 0
5-6 5 21 21 26 26 0 0 0 0
5-7 7 21 22 28 29 1 1 1 0
6-7 3 26 26 29 29 0 0 0 0
6-8 5 26 27 31 32 1 1 1 0
7-8 3 29 29 32 32 0 0 0 0
Activities 1-2, 2-3 , 3-4, 4-5 , 5-6, 6-7 and 7-8 have zero float and hence are critical. The path
1-2-3-4-5-6-7-8 is the critical path with the project duration of 32 months. Total, free, independent
and interfering floats are calculated as explained in example 14.12.3 and are represented in the
last four columns of the table.
EXAMPLE 14.12·5
Estimated times for the jobs of a project are given below:
Job A B C D E F G H I J K L
Time (weeks) : 13 5 8 10 9 7 7 12 8 9 4 17
The constraints governing the jobs are as follows:
A and B are start jobs; A controls C, D and E; B controls F and J; G depends upon C; H
depends on D; E and F control I and L; K follows J ; L is also controlled by K; G, H, I and L are
the last jobs. Draw the network, detennine project duration and the critical path.
[H.PU.B.Tech. (Mech.) June, 2010; PTU. B.Tech. (C.Sc.) 2010; PUB. Com. April, 2006]
Solution
The network obtained by using the given precedence relationship is shown in Fig. 14.26.
Events have been numbered using the Fulkerson 's rule. Note that a dummy activity 6-8 has been
included to draw the network. The earliest start times and latest completion times of the activities
can be computed by using the forward and backward pass methods. Critical path is 1-2-6-8-9 and
project duration is 39 weeks.
E = 21
L = 32

E =39
L=39

Flg.14.26
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1267
EXERCISES 14.2
1. Define float. Explain its different types and their importance.
[PU.MBA Feb, 2009; B.E. (Mech.) Nov., 2002; R.T.M Nagpur U.B. Tech. June, 2003;
Pb.U. B.Com., 1996; Jan., 2005; MBA, 2000]
2. What do you mean by slack ? Define critical path in the light of the definition of slack.
[Mumbai U.MBA, 2010; Osmania U. MBA July, 2010; Chennai U.B.B.A. Nov., 2010;
MBA Feb., 2009; PT.U. MBA, 2005; PU. B.E., 2001;
K.U. MSc., 2001; PU. B.E. (Mech.) 2000]
3. Discuss all the four types of floats. Discuss their importance.
[Gujarat Tech. U.B.E. Dec., 2012; Mumbai U.MBA, 2010; Osmania U. MBA July, 2010; PT.U.
B.Tech. (Mech.) May, 2011 , 2008; Kuru. U. B.E. (Mech.) 1997]
4. What does a critical path actually signify ? In what ways does it differ from any other path and in what
ways all its activities are particularly important? [PU. B.E. (Mech.) 1997; CA (Final) May, 1990]
5. Mention any two limitations of critical path. [Chennai Univ. BEA Nov., 2010]
6. Explain forward and backward planning. [PU. B.E. (Mech.) Nov., 1996]
7. A project consists of a series of tasks labelled A , B, ... , I with the following relationships. Draw the
network diagram.
A < D, E ; B, D < F ; C < G ; B < H ; F, G < I.
Also find the minimum time of completion of the project, when the time in days of completion of each
task is as follows:
Task A B C D E F G H I
Time 23 8 29 16 24 18 19 4 10
[PU. MBA Feb., 2009]
8. For the following activity data draw the network, find the critical path and the three floats for each
activity:
Activity 1-2 1-4 2-3 3-5 3-8 4-8 5-6 5-8 6-7 7-8 7-9 8-9 9-10
Duration (days) 4 36 2 15 10 2 4 9 9 9 8 20 20
[PT.U. B.Tech. April, 2012]
(Ans. 83 days.)
9. The following tasks are to be completed on vehicles at a service station:
Task Description Preceding tasks Time (secs.)
A Driver arrives and stops 20
B Driver selects brands of oil and petrol A 10
C Fill petrol tank B 100
D Prepare bill C and L 50
E Receive payment D 50
F Wash wind screen A 20
G Polish windscreen F 20
H Check tyre pressure A 100
J Inflate tyre H 90
K Open bonnet A 20
L Check oil requirement K 80
M Fill oi l Band L 20
N Add distilled water to battery K 30
0 Fill radiator K 30
p Close bonnet M, N, P 10
R Driver departs from forecourt E, G, J, Q 20
Draw the CPM network and find the total float, independent float and free float for each activity.
10. The activity durations for a project are given below. Draw the network and identify the critical path.
Compute the earliest and latest occurrence times of the events and slack on each event. Perform the
forward and backward computations in the tabular form. Durations of the activities are in days.
1268 •:• OPERATIONS RESEARCH

Activity Duration Activity Duration

10-20 7 30-60 10
10-30 10 40-60 7
20-30 4 50-70 10
20-40 5 60-70 8
30-40 6 60-80 12
30-50 11 70-80 10
11. Draw a network diagram corresponding to the following information. Obtain the early and late start
and completion times. Also determine the critical path and duration of the project.
Activity 1-2 1-3 2-6 3-4 3-5 4-6 5-6 5-7 6-7
Duration (days) 4 6 8 7 4 6 5 19 10
[PT U. B. Tech. April, 20 I 2; Osmania U. MBA July, 20 JO]
12. A project schedule has the following characteristics :
Activity 1-2 1-3 2-4 3-4 3-5 4-9 5-6 5-7 6-8 7-8 8-9 8-10 9-10
Time (days) 4 6 5 4 8 2 8 7
(i) Construct the network diagram.
(ii) Find the critical path and total project duration.
(iii) Calculate free float and independent float of each activity.
[UP Technological U. MBA , 2009; G.N.D.U. B.Com. , 2009]
(Ans. (ii) 1-3-5-7-8-10 and 1-3-5-7-8-9-10; 25 days.)
13. For the network of example 14.2, find the minimum time of completion of the project when the time
in days of completion of each task is as follows :
Task A B C D E F G H I
Time 27 9 22 18 22 19 20 6 12
[G.N.D.U. B.Com. April, 2006]
14. The following table lists all the activities which together constitute a small engineering project :
ActMty A B C D E F G H I J
Immediate predecessor A A A B C, D D B E,P, G G
Duration (days) 2 3 4 5 6 4 7 2 3 3
(a) Construct an activity network.
(b) Draw the critical path.
(c) Compute total float for each activity.
(d) Find the effect on the project if activity F were to take 6 days.
(e) Determine project completion time. [G.N.D.U. B.Com. April, 2005]
(Ans. A-D-G-J or A-D-G-I; 17 days.)
15. Draw the network diagram on the basis of the following data :
Activity 1-2 1-4 1-7 2-3 3-6 4-5 4-8 5-6 6-9 7-8 8-9 9-10
Time (days) 2 2 4 5 8 4 3 3 5 2
Find the critical path, total duration and activity slacks. (Ans. 1-4-8-9-1 O; 17 days.)
16. Determine the critical path for the activity data given below :
Initial node 1 1 2 2 3 3 4 4 5
Final node 2 3 3 4 5 6 5 6 6
Duration (days) 5 6 3 8 2 11 0 1 12
Calculate EST, EFT, LSI, LFT, TF and FF for each activity. [VT U. Karnataka B.E. Dec., 2011]
17. A project consists of the following activities with their precedence relationship and duration in days:
(i) Draw the network of the project.
(ii) Identify the critical path and project duration.
(iii) Calculate EST, EFT, LSI, LFT, TF, FF and IF for each activity.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1269
Activity A B C D E F G H
Precedence - A A B B B, C B, C D, F
Duration (days) 10 8 7 9 6 10 4 12
[VTU. Karnataka B.E. June, 2012]
18. A small project consists of six activities. The duration (in days) of each activity and their immediate
predecessors are shown below :
Activity A B C D E F
Immediate predecessor - - - A, B B B, C
Duration (days) 5 3 7 8 4 5
(i) Draw the network.
(ii) Find the critical path.
(iii) Verify the critical path by earliest time and latest time values. [VT U. Karnataka B.E. Dec. , 2011]
19. (a) Define : (i) Critical path (ii) Total slack (iii) Free slack.
(b) Draw the network for the following project. Identify the critical path and calculate the total slack
and free slack.
Activity A B C D E F G H I J
Precedence - - A A B, C B, C E E D, G F,H,I
Time (weeks) 15 15 3 5 8 12 1 14 3 14
[VTU. Karnataka B.E. Dec., 2010]
20. (a) Construct the network and calculate project duration and critical path and find out TF, FF and IF
for non-critical activities:
Activity Depends on Duration in days
A I 05
B H, F 10
C D 03
D I 12
E C,G 08
F A,D 10
G A, D 05
H A 11
I - 05
[R.TM Nagpur U. B.E. (I.T) 2009]
(b) Explain the following terms in PERT/CPM :
(i) Earliest time (ii) Latest time (iii) Total float for each activity
(iv) Event slack, and (v) Critical path. [Kuru U. B.E. (Mech.) June, 2012]
21. (a) Explain the following in the context of project management :
(i) Activity variance (ii) Project variance.
(b) For a small project of 12 activities, the details are given below :
Activity Precedence Duration (in hours)
A - 14
B A 22
C B 10
D B 16
E B 12
F C 10
G C 6
H F, G 8
I D, E, H 24
J I 16
1270 •:• OPERATIONS RESEARCH
(i) Draw an arrow diagram for this project.
(ii) Identify the critical path. What is its length ?
(iii) Find the total float and free float for each task. [R.TM Nagpur B.E. (Mech.) Dec. , 2008]
22. The network for a project is given in Fig. 14.27. The contractual obligation time for the project is
50 weeks. Compute the slack for each event and identify the critical path. If the activity of 12 weeks
duration is constrained to start after 15 weeks, what would be the earliest completion time of the
project? Find the critical path for this situation.
11

8 8 8

Fig.14.27

23. Consider a project comprising of 12 activities with following precedence relationships and durations:
Activity A B C D E F G H I J K L
Immediate
predecessor A A A D C D E,F B,I G,H J,K
Duration
(weeks) 4 8 2 4 9 7 3 2 2 5 4
(i) Draw the network and find the critical path.
(ii) List the total float, free float and independent float for all the activities.
[P U.B.E. (Tl. T) Dec., 2008]
24. A project has the following characteristics:
Activity Preceding activity Duration (weeks)
A 5
B A 2
C A 6
D B 12
E D 10
F D 9
G D 5
H B 9
I C, E
J G 2
K F, I, J 3
L K 9
M H,G 7
N M 8
(a) Draw network for this project.
(b) Find the various paths, the critical path and the project completion time.
(c) Prepare an activity schedule showing the ES, EF, LS, LF and float for each activity.
(d) Will the critical path change if activity G takes 10 weeks instead of 5 weeks ? If so, what will be
the new critical path? [PU. B.Com. April, 2008; Dayalbagh Edu. Inst. Agra MBA May, 2005]
(Ans. (b) l-2-3-4-5-8-10-11; l-2-3-4-6-9-10-11; 42 weeks. (d) l-2--3-4-6-7-9-11; 44 weeks.)
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1271
25. A person P has been commissioned by the food manufacturer XYZ to carry out market research in a
new product development project prior to a test match launch. The table below lists required activities
and their durations in weeks.
Activity Immediate Predecessor Duration
A 6
B 40
C A 20
D B 12
E B 11
F C 5
G C, D, E 4
H E 30
I G 8
J G 10
K F, I 7
L H, J, K 6
M H, J, K 4
N L 10
p M, N 3
(a) Draw the product development network; state and explain the critical path and its duration.
(b) Prepare a table of the earliest start and finish times, the latest start and finish times and the total
and free float. Explain the importance of the 'float ' for management.
(Ans. (a) A-C-R-G-I-K-L-N-P & B-E-H-L-N-P; 64 weeks.)
26. A project which is about to start consists of the activities listed below:

Activity Immediate Predecessor Duration

A None 4
B A 13
C A 5
D C 11
E C 3
F D, E 4
G None 3
H A, G 5
I G 4
J H 17
K H 2
L J, K 3
M F, L 3
N B, M 3
0 L, M 2
p 0 3
Q N, P 4
The project should be completed by the end of week 38. If the project is delayed beyond this date, it
is estimated that it will cost the firm t 30,000 a week.
(a) Draw a network to represent the project and determine the critical path. What is the earliest time
at which the project can be completed and what penalty cost, if any, will be incurred ?
(b) Activity K is a two-week course to train new salesmen. The hotel which will be used for the
course has been booked for weeks 12 and 13. In the light of your analysis, should this booking be
changed? (Ans. (a) A-H-J-L-M-0-P-Q, 41 weeks, t 90,000 (b) No.)
1272 •:• OPERATIONS RESEARCH
27. A project has the following activities with their durations:
Activity A B C D E F G H
Time (days) 1 2 2 2 4 1 4 8
Preceding activity A, B B, C C D E, F, G
(a) Draw the project network and indicate the critical path.
(b) What is the minimum project completion time?
(c) During the second day of the work it is discovered that activity F will take 4 days instead of 1.
Will this delay the project? If this activity takes 6 days, will the project be delayed?
(d) The company has limited number of men available to work on the project. Only two activities can
be under way at the same time. Will this delay the project over what the time would have been
with unlimited resources? Activity F takes 6 days to complete.
(Ans. (a) B-D-G-H (b) 16 days (c) No (d) Yes.)
28. Construct a network representing the following project consisting of activities A , B, C, D, E, F, G, H,
I and J whose durations of completion are 6, 11 , 6, 3, 2, 6, 10, 10, 7 and 8 respectively.
(a) Activities A , B and C are first to start simultaneously.
(b) E and D follow A , and F and G follow Band D.
(c) H follows C and F.
(d) I follows E.
(e) J follows I and G.
(j) J and H are terminal activities.
Use CPM method to compute critical path and minimum duration of completion of the project. Do the
numbering of the nodes by Fulkerson's method. Find C.P. using EST and LCT. [BITS Pilani, 2000]
29. A small project consists of seven activities for which the relevant data is given below :

Activity Preceding activities Duration (days)

A 4
B 7
C 6
D A, B 5
E A,B 7
F C, D, E 6
G C, D, E 5
(i) Draw the network and find the project completion time.
(ii) Calculate the three floats for each activity. [H.P U.B. Tech. (Mech.) Nov. , 2007;
G.N.D.U. B.Com. April, 2003; PU. MCom., 2001; B.E. (Mech.) 1999]
(Ans. (i) 20 days, C.P.: B-E-F (1-3-5-6-7.)
E=4 E = 12 E =20
L=7 L = 14 L = 20

E =20
7 L = 20

Fig.14.28

(ii) Activity :1-2 1-3 1-5 2-3 3-4 3-5 4-5 5-6 5-7 6-7
TF. :3 0 8 3 2 0 2 0 1 0
FF. :0 0 8 0 0 0 2 0 0
1.F. :0 0 8 0 0 0 0 0 0
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1273
30. The following data for the activities of a project are available :

Activity Dependence Duration (days)

A 6
B 4
C 7
D A, B, C 5
E A , B, C 6
F D 9
G E 4
H F, G 8
I F, G 6
J H 7
(i) Draw the network, number the nodes, find the project completion time and calculate total , free
and independent floats for the activities.
(ii) When the activity duration of G is doubled, identify the critical path. [ICWA, 1996]
31. The following table gives the activities of a project, their times and precedence relationships. Draw the
project network, find the critical path and the three floats of each activity.
Activity A B C D E F G H I J K L
Immediate A A A D C B, F F E, I, J K
predecessor G, H
Activity time 6 20 4 6 11 3 9 5 4 4 7 6
(days) [H.PU. B.Tech. (Mech.) Nov. , 2010]
32. A list of activities, precedence relations and activity completion times is given in the following table:
Activity A B C D E F G H I J K
Predecessor A B A, C D E C D, E C G, H F, H, J
activities G, I
Time (days) 5 4 2 6 8 5 4 13 2 6
(i) Draw an activity on node network diagram.
(ii) Compute the early start (ES), late start (LS), early finish (EF) and late finish (LF) and slack times
for each activity in the network.
(iii) What is the critical path and expected completion time for the project?
[Dayalbagh Edu. Inst. Agra MBA May, 2011; /GNOU MBA Dec., 1998]
5 6

Fig.14.29
(Ans. A-B-C-D-E-H-J-K; 45 days.)
33. A small maintenance project consists of the following 10 jobs whose precedence relationships are
identified by their node numbers:
1274 •:• OPERATIONS RESEARCH
kb a b c d e f g h j
(i - j) 1-2 2-3 2-4 3-5 3-6 4-6 4-7 5-8 6-8 7-8
Duration (days) 2 3 5 4 6 2 8 7 4
(a) Draw the arrow diagram representing the project.
(b) Calculate early and late start and finish time for each job.
(c) How much slack does job 3-5 have? Job-4-6? Job 7-8?
(d) Which jobs are critical ?
(e) If job 2-3 were to take 6 days instead of 3, how would the project finish date be affected?
(j) Do any jobs have free slack ? If so, which ones and how much ? [PU. B.E. (E. & Ee.) Dec., 1996]
34. Given below are the different activities associated with a project consisting of 12 tasks (A,B,... ,L) in
which the following precedence relationship must hold:
A < C , A < B , B < D; B < G, B < K , C < D, C < G , D < E, E < F, F < H , F < I, F < L, G < I,
G < L, H < J, I < J and K < L.
The times for the various activities are:
Activity A B C D E F G H I J K L
Time(days) 30 7 10 14 10 7 21 7 12 15 30 15
Draw the network diagram, determine the critical path and the project duration.
[PUB.Com. April, 2001 ; Kuru. U. B.E.(Mech.)1992]
35. The data regarding the activities of a project are given below :

Activity Precedes Duration (days)

start a,b,c
a d 5
d f 6
f g 2
b e 5
e f 9
C h 4
h g, 1 6
0
0
end 3
end
Draw the A-0-A network diagram. Identify the critical path. Determine the project duration and slack
period for each activity. [Dayalbagh Edu. Inst. Agra MBA May, 2010]
36. The Rand D department is planning to bid on a large project for the development of a new communication
system for commercial planes. The accompanying table shows the activities, times and sequences
required .
Activity Immediate predecessor Time (weeks)
A 3
B A 2
C A 4
D A 4
E B 6
F C,D 6
G D, F 2
H D 3
I E, G, H 3
(a) Draw the network diagram.
(b) What is the critical path?
(c) Suppose you want to shorten the completion time as much as possible and have the option of
shortening any or all of B, C, D and G each by two weeks. Which would you shorten?
(d) What is the new critical path and earliest completion time?
[PTU. B.Tech. Dec., 2011; JGNOU MBA June, 2004]
(Ans. (b) A-C-F-G-I and A-D-F-G-I. (c) C, D, Geach by 2 weeks.
(d) A-B-E-I, A-C-F-G-I, A-D-F-G-I, 14 weeks.)
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1275
37. Given below is the information regarding a project:
Activity A B C D E F G H I J K L
Preceding activity - A, B B B F, C B E, H E, H C, D, F, J K
Duration (days) 3 4 2 5 1 3 6 4 4 2 1 5
Draw the network and find the project critical path. [PU. M.Com. Sept., 2004]
(Ans. B-H-J-K-L; 16 days.)
38. An architect has been awarded a contract to prepare a plan for an urban renewal project. The job
consists of the following activities and their estimated times:
Activity A B C D E F G
Immediate A A,B C,D B,D E,F
predecessor
Time (days) 2 3 2 3
(i) Draw an arrow diagram for this project.
(ii) Indicate the critical path. Find the total float and free float for each activity.
[SVSM PGDM, 2009; PT U. MBA June, 2003]
39. Draw the network for the following project:
Activity A B C D E F G H I J K L
Preceded by A A B B C C F D G, H E I
Time (Weeks) 10 9 7 6 12 6 8 8 4 11 5 7
Find the critical path, event slacks, total, free and independent floats. [PU .B.Com. April, 2004]
40. The details of a project are as follows :

Activity Immediate predecessor Duration (weeks)

A 4
B 3
C 2
D A, B,C 5
E A, B, C 6
F D 7
G D, E 6
H D, E 9
I F 4
J G 6
K H 8
Find the critical path and the corresponding project completion time. [Chennai U. B.C.A. Nov., 2010]
(Ans. A-D-Dm- H- K; 27 weeks.)
41. A construction project is broken down into the following 10 activities:
Activity 1 2 3 4 5 6 7 8 9 10
Immediate predecessor 1 1 2, 3 3 4 5 6, 7 8, 9
Time (weeks) 4 2 4 3 5 6 2 3 5 7
(i) Draw the network diagram.
(ii) Find the critical path.
(iii) If activities 1 and 10 cannot be shortened, but activities 2 through 9 can be shortened to a minimum
of one week at a cost oft 50,000 per week, which activities would you shorten to cut the project
by 4 weeks? [IGNOU MB.A. Dec., 2004]
(Ans. (ii) 1-3-6-9-10 (iii) 3, 6 and 9.)
42. Describe the following by network:
A~B A~C B~C B~D C~F D~E E~G E~H F~H G~H
2 3 4 3 3 12 3 5 8 0
The times are in days. There is a constraint that activity F~H cannot start till the activity D~E is
completed. Determine the critical path and tabulate the earliest start time, earliest finish time, latest
start time, latest finish time, total float and free float for the activities. [PU. M.B.A.,j 2000]
1276 •:• OPERATIONS RESEARCH
43. Activities in the following table describe the construction of a new house. Construct the associated
project network and find the critical path.
Activity D escription Predecessor Duration (days)
A Clear site 1
B Bring utilities to site 2
C Excavate A
D Pour foundation C 2
E Outside plumbing B,C 6
F Frame house D 10
G Do electric wiring F 3
H Lay floor G
I Lay roof F
.T Inside plumbing E, H 5
K Shingling I 2
L Outside sheathing insulation F, .T
M Install windows & outside doors F 2
N Do brick work L, M 4
0 Insulate walls & ceilings G, .T 2
p Cover walls & ceilings 0 2
Q Insulate roof I, p
R Finish interior p 7
s Finish exterior I, N 7
T Landscape s 3
[PT U. B.Tech., 2000]

14.13 PROGRAMME EVALUATION AND REVIEW TECHNIQUE (PERT)

Time Estimates
The CPM system of networks omits the probabilistic considerations and is based on a Single
Time Estimate of the average time required to execute the activity.
In PERT analysis, time duration of each activity is no longer a single time estimate, but is
a random variable characterised by some probability distribution - usually a ~-distribution. To
estimate the parameters of the ~-distribution (the mean and variance), the PERT system is based
on Three Time Estimates of the performance time of an activity. They are
(i) The Optimistic Time Estimate (t0 or a) : The shortest possible time required for the
completion of an activity, if all goes extremely well. No provisions are made for delays or setbacks
while estimating this time.
(ii) The Pessimistic Time Estimate (tP or b) : The maximum possible time the activity will
take if everything goes bad. However, major catastrophes such as earthquakes, floods, storms and
labour troubles are not taken into account while estimating this time.
(iii) The Most Likely Time Estimate (tm or m) : The time an activity will take if executed
under normal conditions. It is the modal value. It is assumed that the situation is normal with usual
setbacks or lapses.
For determining the single time estimates used in CPM, some historical data may be
available, but the best way of predicting the three time estimates is by intelligent guessing. The
experienced person who may be an engineer, foreman or worker having sufficient experience and
technical competence is asked to guess the various time estimates. For estimation the activity
should be taken randomly, so that the guess of the assessor is not prejudiced by the predecessor
and the successor activities.
Frequency Distribution Curve for PERT
We have three time estimates for a PERT activity, the optimistic (t0), pessimistic (tP) and
the most likely time Um). In the range from optimistic to pessimistic, there can be a number of
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1277
time estimates for the activity. If a frequency distribution curve for the activity times is plotted,
it will look like the one shown in figure 14.30. It is assumed to be a ~-distribution curve with a
unimodal point occurring at tm and its end points occurring at t0 and tP. The most likely time need
not be the midpoint of t0 and tP and hence the frequency distribution curve may be skewed to the
left, skewed to the right or symmetric. The assumption of ~-distribution, however, is not flawless
and the calculations made on this assumption may, sometimes, be in error to the tune of 30%.

Make the
changes

tm tm tm
Symmetric Skewed to left Skewed to right

Fig.14.30

Though the curve is not fully described by the mean(µ) and the standard deviation (CT), yet
in PERT the following relations are approximated for µ and CT:
2
(
tP - t0 )
Variance V =CT2= -6-

tp - t0
or CT= --6- ,
to+4tm +tp
and µ=
6
Expected time or average time of an activity is taken equal to mean. This is the time that
the activity is expected to consume while executed. Thus
t0 +4tm+tp
te = µ = 6 .

The expected time is then used as the activity duration and the critical path is obtained by
the analytical method explained earlier.
The variance or standard deviation is used to find the probability of completing the whole
project by a given date. The underlying procedure is as follow:
Compute the variance of all the activity durations of the critical path. Add them up and take
the square root to find the standard deviation of the total project duration and denote it by CT. Now,
while a ~ -distribution curve approximately represents the activity-time frequency distribution, the
project expected time follows approximately a normal distribution curve. The standard normal
distribution curve has an area equal to unity and a standard deviation of one and is symmetrical
about the mean value as shown in Fig. 8.8. ±3 CT give the limits of the total possible duration
with 99 per cent confidence i.e., 99 per cent of the area under normal distribution curve is within
± 3 CT from the mean. In other words, to find the probability of completing the project in time T,
we calculate the standard normal variate,
T-Tcp
Z= - - - ,
CT
where Z is the number of standard deviations the scheduled time or target date lies away from the
mean or expected date. Here, T is called the desired time or due time or contractual obligation
time and Tep is the expected time to complete the project i.e., duration of the critical path.
The probability is then read from the standard normal probability distribution table (table
C.2 at the end of the book) for the value of Z calculated above.
1278 •!• OPERATIONS RESEARCH

EXAMPLE 14.13·1
Consider the network shown Fig. 14.31. For each activity, the three time estimates t(J tm
and tp are given along the arrows in the t0 - tm - tp order. Determine variance and expected time
for each activity.

Fig.14.31
Solution
We put the events in a tabular form and calculate the variance and expected times. These
calculations can be carried on the network also.
TABLE 14.6
Activity i-j 2 ( tP - to12 t0 + 4tm + t P
Predecessor Successor t0 tm tp a = V=l-6- ) te =
6
event i event)
10 20 6 9 12 1.00 9.0
10 50 4 7 8 0.44 6.7
20 30 14 17 20 1.00 170
20 40 7 10 13 1.00 100
20 50 3 5 9 1.00 5.33
30 70 13 18 25 4.00 18.33
40 60 10 14 16 1.00 13.67
40 70 12 15 18 1.00 15.00
50 60 9 11 12 0.25 1083
60 70 17 20 25 1.78 20.33
The entry in the tabular form starts with the initial event, by entering first number (10 in
this case) in the first row under the column 'predecessor event i. ' Then the activities emerging
out from the initial event (here 10-20 and 10-50) are entered in the ascending order. Then, we go
to the next higher number (here 20) in the predecessor event column and enter all the activities
emerging out from this event i.e. , 20-30, 20-40 and 20-50. This procedure is repeated until all the
events are entered.
The variance a 2 and the expected activity time te are then computed by employing the relations:

a2 = cp ~to J,
t0 + 4tm + t p
and t =-----
e 6

EXAMPLE 14.13·2
Consider the network shown in Fig. 14.32. The three time estimates for the activities are
given along the arrows. Determine the critical path. What is the probability that the project will
be completed in 20 days?
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1279

Fig.14.32

[PUB. Com. April, 2006; Karn. U.B.E. (Mech.) 1995]

Solution
First step is to number the events. In this network the events are already numbered. The
calculations can be performed on the network itself or in the tabular form. After calculating the
expected times and the variances of the activities they are put along the arrows as shown in
Fig. 14.33. By carrying the forward pass and backward pass computations E and L values are
determined for all the events. By applying the conditions of critical activities (method 3 of example
14.12-1 ), it is determined that 1-2-3-4-5-6 and 1-2-4-5-6 are the two critical paths.
E=6
L=6

E = 19
L= 19

E=6
L=6
Fig.14.33

::::::::::::,::n~=~ec~,~ry ~y~
9
::ce cr' = ('' ; 1' Jand 1, = 1' + •; + 1'
Standard deviation of the project,
cr = g for all i-j on the critical path.

:. cr for path 1-2-4-5-6 = .Jt+l.36+0.l l+0.44 = 1.70,

cr for path 1-2-3-4-5-6 = .J1+2.8+0+0.ll+0.44 = 2.08.
:. cr = 2.08 is chosen as it is higher of the two values.
T -Tep 20-19
:. Normal deviate, Z= - - - = - - - = 0.48.
cr 2.08
From table C-2, probability = 68.44%.
1280 •!• OPERATIONS RESEARCH
EXAMPLE 14.13·3
Consider the network shown in Fig. 14.34. The three time estimates, the expected activity
durations and the variances are shown along the arrows. The earliest expected times and the
latest allowable occurrence times are computed and put along the nodes. What is the probability
of completing the project in (i) 12 days (ii) 14 days (iii) JO days ?
[VTU. Karnataka B.E. June, 2011; H.PU.B. Tech. (Mech.) Nov., 2010]
E=6
L=6

1-2-3 E = 12
1 )====I-'.
L = 12
19 =2 , cr 2 = 1/9

4
E=5
L=6
Fig.14.34

Solution
We identify that the path 1-2-3-5-6 is the critical path and expected project length is 12 days.
(i) Here, Tep= 12 days, T = 12 days.
Standard deviation for the project length, cr = ~ for all ij on the critical path.

cr = ~1/9 + 1 + 16/9 + 1/9 = 1.73.

T-Tcp 12-12
:. Normal deviate, Z=--=--=0.
(J 1.73
:. Probability of completing the project (from table C.2) = 50%.
(ii) Here, T = 14 days.
14-12
Z= - - = 1.16.
1.73
:. Corresponding probability = 87.7%.
(iii) Here, T = 10 days.
10-12
Z = - - =-1.16.
1.73
:. Corresponding probability = 1 - 0.877 = 0.123 = 12.3%.
EXAMPLE 14.13·4
Consider the PERT network given in Fig. 14.35. Determine the float of each activity and
identify the critical path if the scheduled completion time for the project is 20 weeks. Also identify
the sub-critical path and slacks for events.
[Kuru.U. B.E.(Mech.) June, 2012; H.PU.B.Tech. (Mech.) Sept., 2009;
PTU. B.E., 2001; R.E.C. Hamirpur, 1998]
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1281
E = 12
L = 11
8 =-1

E =O E =2
L =-1 L= 1
8 = -1 8 = -1 E = 21
1-2-3 L = 20
1 Oil=====-'.;
t. = 2 8 = -1

Fig.14.35

Solution
First the expected activity times and then the earliest expected times of the events are
calculated. For the end event, E = 21. The scheduled completion time is 20 weeks. Taking L =
T = 20 for the end event, the latest occurrence times of events are calculated by the backward
pass method. Slack for an event is (L-E) for that event. The usual network analysis table follows.
TABLE 14.7

t0 + 4t m + tp Start Finish Total

Activity ta tm tp te =
6 Earliest Latest Earliest Latest float
10-20 2 3 2 0 -1 2 -1
20-30 8 10 12 10 2 12 11 -1
20-40 3 4 6 4.2 2 3.8 6.2 8 1.8
20-50 3 5 7 5 2 7 7 12 5
30-60 4 5 6 5 12 11 17 16 -1
40-60 7 8 9 8 6.2 8 14.2 16 1.8
50-70 6 8 10 8 7 12 15 20 5
60-70 4 7 4 17 16 21 20 -1
The most negative slack is - 1 and it is for events 10, 20, 30, 60 and 70. The path joining
these events 10-20-30-60-70 is the critical path.
Sub-critical path. The path with the next least floats is the sub-critical path. As activities
20-40 and 40-60 have floats of 1.8 each, path 20-40-60 is the sub-critical path.
EXAMPLE 14.13·5
The time estimates (in weeks) for the activities of a PERT network are given below.
Activity to Im IP
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
1282 •!• OPERATIONS RESEARCH
(a)Draw the project network and identify all the paths through it.
(b)Determine the expected project length.
(c)Calculate the standard deviation and variance of the project length.
(d)What is the probability that the project will be completed
(i) at least 4 weeks earlier than expected time?
(ii) no more than 4 weeks later than expected time?
(e) If the project due date is 19 weeks, what is the probability of not meeting the due date?
(!) Find the probability that the project will be completed on schedule if the scheduled
completion time is 20 weeks.
(g) What should be the scheduled completion time for the probability of completion to be
90%? [R.TM. Nagpur U. B.E. (Mech.) 2011, 08, 06, 05; P.U. B. Com.
April, 2010, 2007; G.N.D.U. B.Com. April, 2004; Jammu U. B.E (Mech.) 2004]
Solution
(a) The network for the given data is drawn in Fig. 14.36. The various paths through the
network are 1-2-5-6, 1-3-5-6, and 1-4-6.

Fig.14.36

(b) For determining the expected project length, the expected activity times need to be
calculated. The same, along with the variances, are computed below.

Activity to tm tp te =
t0 +4tm +tp
6
CT 2 = c p ; to J
1-2 7 2
1-3 4 7 4
1-4 2 2 8 3
2-5 0
3-5 2 5 14 6 4
4-6 2 5 8 5
5-6 3 6 15 7 4
Length of path 1-2-5-6 = 2 + l + 7 = 10,
length of path 1-3-5-6 = 4 + 6 + 7 = 17 , and
length of path 1-4-6 = 3 + 5 = 8.
Since 1-3-5-6 has the longest duration, it is the critical path of the network.
:. The expected project length = 17 weeks.
(c) Variance of the project length is the sum of the variances of the activities on the critical
path.
Vcp =Vl-3 + V3_5 + Vs-6 = 1 + 4 + 4 = 9.
a= 3 weeks.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1283
(d) (i) Probability that the project will be completed at least 4 weeks earlier than expected time:
Expected time = 17 weeks,
and scheduled time = 17 - 4 = 13 weeks.
The standard normal deviate,
13 -17
Z= - - = - 1.33.
3
For Z = -1.33 , probability is l - 0.9082 = 0.0918 or the probability of completing the project
at least 4 weeks earlier than expected time i.e. , within 13 weeks is.::; 9.18%.
(ii) Probability that the project will be completed no more than 4 weeks later than expected
time:
Expected time = 17 weeks.
Scheduled time = 17 + 4 = 21 weeks.
21-17
Z= - - = 1.33.
3
p = 0.9082.
Therefore, the probability of completing the project in not more that 21 weeks is.::; 90.82%.
(e) When the project due date is 19 weeks:
19-17
Z = -3- = 0 .667 ~ 0 .67 ,

for which, p = 0.7486 or 74.86%.

:. The probability of meeting the due date is 74.86% and the probability of not meeting the
due date is 25.14%.
(j) Scheduled time = 20 weeks.
20-17
Z= 3 = l , for which p = 84.13%.

(g) Value of Z for p = 0.9 is= 1.28.

T-17
1.28 = - 3- or T = 17 + 3.84 = 20.84 weeks.

EXAMPLE 14.13·6
A PERT network is shown in Fig. 14.37. The activity times in days are given along the
arrows. The scheduled times for some important events are given along the nodes. Determine the
critical path and probabilities of meeting the scheduled dates for the specified events. Tabulate
the results and determine slack for each event.
1-5-8
2!------------11
/fo
/t;i.
'v
5-6-14
4 >--------,., 8

3- 6- 9
T5 = 24

4- 6-1 0

4- 5- 7

Fig. 14.37
[H.P U. B. Tech. (Mech.) June, 2007]
1284 •!• OPERATIONS RESEARCH

Solution
The expected activity times and variances are computed below.

Activity t0 tm tp te a2

1-2 2 4 12 5.00 2.78

1-3 2 4 25 7.17 14.69
2 - 11 5 8 4.83 1.36
3-4 3 6 3.17 0.69
3-5 4 9 4.33 178
3-6 2 5 12 5.67 2.78
3-7 2 3 5 3.17 0.25
4-8 5 6 14 7.17 2.25
5 - 12 3 6 9 6.00 1.00
6-9 4 6 10 6.33 1.00
7 - 10 4 5 7 5.17 0.25
8 - 11 2 4 6 4.00 0.44
9 - 12 2 4 2.17 0.25
10 - 12 4 8 4.17 1.36
11 - 12 3 4 11 5.00 178

The arrow diagram for the given data is shown in Fig. 14.38. The expected activity times
are shown along the arrows. The earliest and latest occurrence times as well as the slacks of the
events are also written along the nodes.
E = 5.00 E = 21.51
L = 16.68 L = 21.51
8 = 11.68 8 =0
4.83
E = 10.34
L = 10.34
c§) 8=0
VJ" 7. 17
I;
E = O ,~
L=O
8 =0 Ts = 12 Ts = 24
---- 5 6.00 12 E = 26.51
E = 11.50 L = 26.51
L = 20 .51 8=0
8 = 9. 01
6.33
6 1--------
E = 12.84
L = 18.00
8 = 5. 16 5.17

Fig.14.38

Table 14.8 represents the network analysis. Floats for the activities in question are
calculated in the last column. Critical path is 1-3-4-8-11-12 and the project completion time
is 26.51 days.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1285
TABLE 14.8
Activity Expected Start time Finish time Tota/float
duration Earliest Latest Earliest Latest
1-2 5.00 0 11.68 5.00 16.68 11.68
1-3 7.17 0 0 7.17 7.17 0
2 - 11 4.83 5.00 16.68 9.83 21.51 11.68
3-4 3.17 7.17 7.17 10.34 10.34 0
3-5 4.33 7.17 16.18 11.50 20.51 9 01
3-6 5.67 7.17 12.33 12.84 18.00 5.16
3-7 3.17 7.17 14.00 10.34 17.17 6.83
4-8 7.17 10.34 10.34 17.51 17.51 0
5 - 12 6.00 11.50 20.51 17.50 26.51 9 01
6-9 6.33 12.84 18 01 19.17 24.34 5.17
7 - 10 5.17 10.34 17.17 15.51 22.34 6.83
8 - 11 4.00 17.51 17.51 21.51 21.51 0
9 - 12 2.17 19.17 24.34 21.34 26.51 5.17
10 - 12 4.17 15.51 22.34 19.68 26.51 6.83
11 - 12 5.00 21.51 21.51 26.51 26.51 0
Probability of completing the project in the scheduled completion time of 24 days (since
Ts (12) = 24):
24- 26.51 -2.51
Z= = - - =-0.5634.
~14.69 + 0.69 + 2.25 + 0.44 + 1.78 .J19.85
p (Ts.::; 24) =I-value of probability for Z = 0.5634 = 1-0.7146 = 29.54%.
Probability that event 3 will occur on the scheduled date:
Ts (3) = 4, E = L = 7.17.
4- 7.17
Z = ~=~ = -0.8271.
.J14.69
:. p = l - value of probability for Z = 0. 8271 = 1 - 0.7956 = 20.44%.
Probability of meeting the scheduled date for event 5:
The earliest occurrence time of event 5 is 11.50, while the scheduled time is 12. Event 5 is
not on critical path and hence its occurrence can be delayed by 9 days.
Variance of path 1-3-5 = 14.69 + 1.78 = 16.47.
Ts= 12, T5 = 12,
E = 11.50. L = 20.51.
12 -11.50 12- 20.51
Z = .J16.47 = 0.123. Z= ~=~ =-2.1.
.J16.47
:. Probability = 54.89%. :. Probability = 1-0.982 = O.Gl8 = 1.8%.
Thus the probability of meeting the scheduled date in case of event 5 is less than or equal
54.89% with minimum of 1.8% i.e., it lies between 1.8% and 54.89%.
EXAMPLE 14.13-7
In the PERT network shown in Fig 14.39, the activity time estimates (in weeks) are given
along the arrows. If the scheduled completion time is 23 weeks, calculate the latest possible
occurrence times of the events. Calculate the slack for each event and identify the critical path
What is the probability that the project will be completed on the scheduled date ?
[PUB.Com. April, 1998; G.ND.U B.Com. April, 1998;
HP UB. Tech (Mech) Nov., 2007]
1286 •!• OPERATIONS RESEARCH

I
I
\o
d::,
I I
,o 7
I
I
I
I
I

4-6- 8
4 1----------. 6
Fig.14.39

Solution
The expected time of the activities and their variances are computed below.

Activity c,2

1-2 3 3 3 3 0
2-3 3 6 9 6
2-4 2 4 6 4 4/9
3-5 4 6 8 6 4/9
4-6 4 6 8 6 4/9
5-6 0 0 0 0 0
5-7 3 4 5 4 1/9
6-7 2 5 8 5
The earliest occurrence times of the events have been computed on the network of Fig. 14.40,
taking the earliest time of event 1 as zero. The earliest occurrence time of event 7 is 20. But the
scheduled completion time of the project is 23 weeks and hence the latest occurrence times of the
events have been computed taking L(7) = 23. Slacks for the events have been shown along the
nodes. Path 1-2-3-5-6-7 is the critical path.
E=9 E=15
L=12 L=18
8 =3 8 =3

E= 20
L= 23
8=3

Fig.14.40

Probability of completing the project on scheduled date:

T = 23 weeks, E = 20 weeks.
Variance of the critical path = 0 + 1 + 4/9 + 0 + 1 = 22/9 = 2.444.
23-20
z = .)2.444 = 1.n.
Probability = 97.26%.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1287
EXAMPLE 14.13·8
The optimistic, most likely and pessimistic times of the activities of a project are given
below. Activity 40-50 must not start before 22 days, while activity 70-90 must end by 35 days. The
scheduled completion time of the project is 46 days. Draw the network and determine the critical
path. What is the probability of completing the project in scheduled time?
Activity t0 - t m - tp Activity t0 - t m - tp
10-20 4- 8-1 2 50-70 3- 6- 9
20-30 1- 4- 7 50-80 4- 6- 8
20-40 8-1 2-16 60-100 4- 6- 8
30-50 3- 5- 7 70-90 4- 8-12
40-50 0--0- 0 80-90 2- 5- 8
40-60 3- 6- 9 90-1 00 4-1 0--16
[H.P U. B.Tech. (Mech.) Dec., 2009; PT U. Dec., 1998]
Solution
The expected times and variances of the activities are given below, while network for the
given data is shown in Fig. 14.41. The expected activity times are written along the activity arrows.
Activity te c:,2 Activity te c:,2

10-20 8 1. 77 50-70 6 1.00

20-30 4 1.00 50-80 6 0.44
20-40 12 1.77 60-100 6 0.44
30-50 5 0.44 70-90 8 1.77
40-50 0 000 80-90 5 1.00
40-60 6 1.00 90-100 10 4.00

,,,,
,,,, ,,
0 ,,,,
,,,,
,,
12 ,/'
J 5 = 22/'
,,,,

Fig.14.41

In this problem the earliest start time of 40-50, which is dummy activity, is 22 days.
In other words the earliest occurrence time of event 40 is 22. The latest completion time of
activity 70-90 is given as 35 days. Or, the latest occurrence time of event 90 is 35. These two
intermediate schedule times are also shown in Fig. 14.41. Thus E (40) = 22 and L (90) = 35
have been fixed.
1288 •!• OPERATIONS RESEARCH
The computations of earliest and latest times are carried by the forward and backward pass
computations. The E and L values for different events along with slacks are shown along the
nodes. Events 40, 50, 70 and 90 have slack of -1 day, activities 40-50, 50-70 and 70-90 are thus
the most critical. Event l 00 has zero slack, while events l O and 20 have a positive slack of l day
each. Thus the path l 0-20-40-50-70-90-100 is the critical path of this network.
Since the scheduled completion time of the project is the same as the expected completion
time, probability of completion in scheduled time is 50%.
EXAMPLE 14.13·9
A civil engineering firm has to bid for the construction of a dam. The activities and their
time estimates are given below:

Activity Optimistic Most likely Pessimistic

1-2 14 17 25
2-3 14 18 21
2-4 13 15 18
2-8 16 19 28
3-4 (dummy) 0 0 0
3-5 15 18 27
4-6 13 17 21
5-7 (dummy) 0 0 0
5-9 14 18 20
6-7 (dummy) 0 0 0
6-8 (dummy) 0 0 0
7-9 16 20 41
8-9 14 16 22
The policy of the firm with respect to submitting bids is to bid the minimum amount that will
provide a 95% of probability of at best breaking-even. The fixed costs for the project are eight
lakhs and the variable costs are 9,000 every day spent working on the project. The duration is in
days and the costs are in rupees.
What amount should the firm bid under this policy? (You may perform the calculations on
duration etc., upto two decimal places). [H.P U. B.Tech. (Mech.) June, 201 O]
Solution
The network is drawn in Fig. 14.42. The expected durations of all the activities and variances
of critical activities are calculated below:

Fig. 14.42
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1289
Duration
t0 +tp+4tm
Activity Optimistic
(to)
Pessimistic
(tp)
Most likely
(tm)
te =
6 (~J
1-2 14 25 17 17.83 3.36
2-3 14 21 18 17.83 1.36
2-4 13 18 15 15.17
2-8 16 28 19 20
3-4 0 0 0 0
3-5 15 27 18 19 4
4-6 13 21 17 17
5-7 0 0 0 0
5-9 14 20 18 17.67
6-7 0 0 0 0
6-8 0 0 0 0
7-9 16 41 20 22.83 17.36
8-9 14 22 16 16.67
Various paths are
1-2-3-5-7-9 77.49 days,
1-2-3-5-9 72.33 days,
1-2-3-4-6-7-9 75.49 days,
1-2-3-4-6-8-9 69.33 days,
1-2-8-9 54.5 days,
1-2-4-6-8-9 66.67 days,
1-2-4-6-7-9 72.83 days.
Hence 1-2-3-5-7-9 is the critical path with project duration of 77.49 days. Variances of the
critical activities have been calculated.
Variance of the critical path, V = 26.08.
:. SD. of the critical path, cr = '126.08 = 5.106 days.
Now we are to determine the time within which the project should be completed so as to
provide 95% probability of break-even.
Now p = 0.95.
:. Normal variate, Z = 1.65.
T - 77.49
1.65= - - -
5.106
or T = 85.91 days - 86 days.
The fixed cost of the project is~ 8 lakhs and the variable cost is~ 9,000 per day.
:. The amount to bid = ~ (8,00,000 + 9,000 x 86) = ~ 15,74,000.

EXAMPLE 14.13-10
(a) A mother notes that when her teenage son uses the telephone, he takes no less than JO
minutes for a call and sometimes as much as one hour. Twenty-minutes calls are more .frequent
than calls of any other duration. If sons phone call were an activity in a PERT project:
(i) What would be the phone calls expected duration?
(ii) What would be its variance?
(iii) In scheduling the project, how much time would be allocated for the phone call?
1290 •!• OPERATIONS RESEARCH
(b) For the project network shown in Fig. 14.43,
(i) Calculate for each activity its earliest start, earliest
finish, late start, late finish, total float and free float for each
activity.
(ii) Identify the critical path.
(iii) If the project manager finds that either of the
activities 2-6 or 4-5 can each be speeded up by two days at
the same cost, which of the two activities should be speeded
up? Explain.
Fig.14.43
(c) Assuming that the time estimates in days indicated
in the above network represent the expected duration based on three time estimates and suppose
the variance along the critical path is 81 days, what is the probability that the project will be
completed within 33 days? Within 44 days?
[C.A.(Final) Nov., 1990]
Solution
(a) (i) t0 = 10 minutes, tP = 60 minutes and tm = 20 minutes.
t0 +tp +4tm 10+60+20x4 150 .
t = ----- = ------= - = 25 mmutes.
e 6 6 6
2 2
.
Vanance (tp -t
- 0 (60-10)
- 6- (25) 2 625 69.45.
(ii) = - 6 )
= = 3 9 =

(iii) For scheduling the project, obviously one should allocate expected duration for the
phone call i.e. , 25 minutes.
(b) (i) The earliest and latest occurrence times for each event are calculated in Fig. 14.44.
E=7
L = 11

E = 35
L= 35

4
E = 12
L= 12
Fig. 14.44
The various values are calculated in the table below.
TABLE 14.9
Activity Duration ES LS EF LF Total float Free float
(days)
1-2 4 0 0 4 4 0 0
1-3 7 0 4 7 11 4 0
1-4 10 0 2 10 12 2 2
2-3 3 4 8 7 11 4 0
2-4 8 4 4 12 12 0 0
2-5 11 4 10 15 21 6 6
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1291
2-6 13 4 9 22 27 5 5
3-5 10 7 11 17 21 4 4
3-6 16 7 11 23 27 4 4
4-5 9 12 12 21 21 0 0
5-6 6 21 21 27 27 0 0
5-7 11 21 24 32 35 3 3
6-7 8 27 27 35 35 0 0
(ii) The critical path is 1-2-4-5-6-7 with project duration of 35 days.
(iii) Activity 4-5 should be speeded up since it is a critical activity and speeding it up will
reduce the project duration.
(c) (i) T = 33 days,
Tep= 35 days,
S.D. = .Jv = .,/81 = 9 days.
I-Tep 33-35
:. Normal variate, Z = ------=-- = - - = - 0.222.
S.D 9
From table C.l , p = 1-0.5871 = 0.4129 = 41.29%.
(ii) T = 44 days.
44-35
Z=--=l.
9
p = 0.8413 = 84.13%.

EXERCISES 14.3
1. Explain the term PERT. [Chennai Univ. B.B.A. Nov., 2010]
2. Explain the terms: (i) optimistic time (ii) pessimistic time (iii) most likely time and (iv) expected time
in PERT networks. [PTU. MBA, 2009; C.A.(Final) Dec., 1990;
G.N.D.U.B.Com. April, 2004; PU. B.E. (Mech.) 1997; Nov., 1996]
3. How will you make use of PERT in installation of a distribution transformer in a new locality?
[PU. B.E. (Elect.) 1998]
4. What does the critical path actually signify ? In what ways does it differ from other paths and in what
ways are its activities particularly important? [G.N.D.U. B.Com. 2004, 2007]
5. How will you find the probability of completing a PERT project by a particular due date?
[PU. B.Com. Jan., 2005]
6. The following table lists the jobs of a network along with their time estimates:
Job (i - j) Duration (days) Job (i - ;) Duration (days)
ta tm tp ta tm tp
1-2 3 6 15 3-5 5 11 17
1-6 2 5 14 4-5 3 6 15
2-3 6 12 30 5-8 1 4 7
2-4 2 5 8 6-7 3 9 27
7-8 4 19 28
(a) Draw the project network.
(b) Calculate the length and variance of the critical path. [Univ. of Madras BEA April, 2012]
(c) What is the probability that the jobs on the critical path will be completed in 41 days?
(d) What is the probability that the jobs on the next most critical path will be completed by the due
date of 41 days? [VTU. Karnataka B.E. June, 2010; R.TM Nagpur U.B. Tech.
Dec. , 2004; Pondicherry U.MB.A. June, 2007]
[Ans. (b) 36 days, 25 (c) 0.8413 (d) 0.8508.]
1292 •!• OPERATIONS RESEARCH
7. Project sched ule has the following characteristi cs :
Activity to tm tp Activity to tm tp
1-2 2 3 5-7 4 5 6
2-3 2 3 6-7 6 7 8
2-4 3 5 7-8 2 4 6
3-5 3 4 5 7-9 4 6 8
4-5 2 3 4 8-10 2 3
4-6 3 5 7 9-10 3 5 7
(a) Construct the project network.
(b) Find expected duration and variance for each activity.
(c) Find the critical path and expected project length.
(d) What is the probability of completing the project in 30 days? [Ans. (c) 28 (d) 92%.]
8. Consider a project for which the following acti vities and time estimates in weeks apply:
Activity t0 tm tp Activity t0 tm tp
1-2 3 5 8 3-4 3 6
1-3 2 3 5 3-5 2 4 6
1-5 2 3 4 4-5 2 4
2-3 2 5 5-6 2 3
2-6 7 8 9
(a) Draw the project network.
(b) Compute expected time and variance for each activity.
(c) Compute slack for each event and find the critical path.
(d) Find the length of the critical path and the project duration.
(e) Approximate the probability that activity 3--4 wil have positive slack. What is the managerial
implication of that probability?
9. (a) Construct a PERT network from the following information and determine the critical path:
Activity Immediate
predecessor to tm tp
A 2 3
B A 2 4 6
C A 2 6 10
D B 6 8 10
E C 4 6 8
F C 6 10 14
G E 8 10 12
H F 12 14 16
I G, H 4 8 12
.T G, H 10 12 14
K I 2 4 6
L .T 6 10 14
(b) Assuming that the schedule allows 40 days to complete the whole project, calculate the probability
of completion by the scheduled date.
(c) The contractor wants a scheduled completion date that will give him 98% chance of attaining, how
many days should be allowed in his schedule? [H.P U.B.E. (Mech.) 2008]
(Ans. (a) A-C-F-H-.T-L, 54 days (b) 88.3% (c) 59.2 days.)
10. The activity data for a project are given below:
Activity A B C D E F G H I
( 1-2) (1-3) (1 -4) (2-5) (2-6) (3-6) (4-7) (5-7) (6-7)
Least time 5 18 26 16 15 6 7 7 3
Greatest time 10 22 40 20 25 12 12 9 5
Most likely time 8 20 33 18 20 9 10 8 4
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1293
Determine the following:
(a) expected task times and variances.
(b) the earliest and latest expected times to reach each node.
(c) the critical path, and
(d) the probability of node occurring at the proposed completion date if the original contract time of
completing the project is 41.5 weeks. [PTU. B.Tech. (Mech.) Dec., 2011; R.TM
Nagpur U. B.Tech. , June 2005]
[Ans. (c) CG (1-4-7), 42.8 weeks (d) 30%.]
11. Consider the network consisting of the following activities:
Activity t0 tm tp Activity t0 tm tp
1-2 2 9 4-5 4 6 8
2-3 4 7 4-6 3 5 7
2-4 2 4 12 5-6 1/2 3/2
3-4 0 0 0 5-7 5 7 15
3-5 2 3 4 6-7 3 5 13
3-7 6 8 16
Find the probability of completing the project in 25 days. (Ans. 86%.)
12. For the following project, find the critical path by constructing a network.
Activity Times (days) Activity Times (days)
10 - 20 4, 8, 12 20 - 30 1, 4, 7
20 - 40 8, 12, 16 30 - 50 3, 5, 7
40 - 50 0,0,0 40 - 60 3, 6, 9
50 - 70 3, 6, 9 50 - 80 4, 6, 8
60 - 100 4, 6, 8 70 - 90 4, 8, 12
80 - 90 2, 5, 8 90 - 100 4, 10, 16
The scheduled completion time for the project is 48 days. Calculate the probability of finishing the
project within this time, given that 89.5% probability corresponds to a normal deviation of + 1.25.
[PTU Dec., 1998]
(Ans. 0.894.)
13. Following table lists the data for a PERT network:
Activity 1-2 1-3 1-4 2-3 2-5 3-4 3-6 4-6 5-6
(i - j)
a (days) 2 6 6 2 11 15 3 9 4
m (days) 4 6 12 5 14 24 6 15 10
b (days) 6 6 24 8 28 45 9 27 16
(i) Draw the network, estimate the earliest and latest event times for all nodes and hence derive critical
path.
(ii) Estimate the expected duration of the project and the corresponding variance.
(iii) What is the probability that the project duration will exceed 60 days?
[Osmaina U.MBA July, 2010; H.PU.B. Tech. (Mech.) Nov., 2010; PU. MCom., 2001]
14. The following table gives the data for the activities of a small project:
Job (i - j) 1-2 1-3 2-4 2-6 3-4 3-5 4-5 5-6
Optimistic time (days) 5 3 8 2 5 2
Most likely time (days) 4 10 3 4 15 4 5 5
Pessimistic time (days) 7 17 3 7 26 8 5 8
(i) Draw the network and find the expected project completion time.
(ii) What is the probability that it would take 5 days more than the expected duration?
(iii) Find the project completion time which will have 95% confidence.
[PU. B.Com. April, 2009; H.PU. B.Tech. (Mech.) June, 2010]
(Ans. (i) 36 days (ii) 90.9% (iii) 42.16 days.)
1294 •:• OPERATIONS RESEARCH
15. A project has the following characteristics:
Activity 1-2 2-3 2-4 3-5 4-5 4-6 5-7 6-7 7-8 7-9 8-10 9-10
t0 (weeks) 1 1 1 3 2 3 4 6 2 5 1 3
tp (weeks) 5 3 5 5 4 7 6 8 6 8 3 7
tm(weeks) 1.5 2 3 4 3 5 5 7 4 6 2 3
Construct a PERT network. Find the critical path and variance for each event. Find the project duration
at 95% probability. [P U. B.Com., 2002; M.B.A., 2003]
(Ans. (i) 1-2-4-6-7-9-10.
(ii) 0, 4/9, 5/9, 8/9, 1, 12/9, 13/9, 17/9, 61/36, 19/9.
(iii) 30.64 weeks.)
16. The expected times and variances for the activities of a PERT network are given below. Determine the
slack time for each event and the critical path. If the scheduled completion time is 32 months, find the
probability of completion on schedule.
Activity 1-2 1-3 2-4 2-5 3-4 3-6 4-5 4-6 5-7 6-7
Expected time (months) 4 5 2 12 3 8 10 6 8 10
Variance 8 3 5 2 4 4 2 8
[Chennai Univ., 2002]
17. A project is composed of the following 7 activities:
1-2, 1-3, 1-4, 2-5 , 3-5, 4-6, and 5-6.
The time estimates in days for the activities are as follows:
Activity 1-2 1-3 1-4 2-5 3-5 4-6 5-6
12 3 12 2 4 5
15 4 22 5 5 6
tp 17 7 28 14 8 10
(i) Draw the network.
(ii) Identify all the paths through it.
(iii) Identify critical path through it.
(iv) Find the expected project length. [PU. B.E. (Mech.) 1998]
(Ans. (ii) 1-2-5-6, 1-3-5-6, 1-4-6 (iii) 1-2-5-6 (iv) 22.33 days.)
18. Given the following network and activity time estimates, determine the expected project completion
time and variance.
Time estimates (days)
Activity
t0 tm tv
1-2 5 8 17
1-3 7 10 13
2-3 3 5 7
2-4 1 3 5
3-4 4 6 8
3-5 3 3 3
4-5 3 4 5
[UP Tech.U. MBA, 2010]
19. A project is composed of 7 jobs whose time estimations are given below :
Activity 1-2 1-3 1-4 2-5 3-5 4-6 5-6
Most likely time 7 16 7 9 20 14 2
Optimistic time 8 18 9 10 24 16 3
Pessimistic time 9 20 11 11 28 18 4
(i) Draw the network and calculate the length and variance along the critical path.
(ii) Find the probability of completing the project one day earlier and 2 days later.
[VTU. Karnataka B.E. June, 2012]
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1295
20. Time estimates for a particular activity are provided by two engineers A and B as follows :
Engineer Optimistic time Most likely time Pessimistic time
A 3 6 7
B 4 5 9
State who is more certain about his estimation.
21. A project is expected to take 12 months with a standard deviation of 4 months. What is the probability
of completing the project within (i) 10 months (ii) 16 months? [VTU. Karnataka B.E. Jan., 2010]
22. Assuming that the expected times are normally distributed, find the probability of meeting the scheduled
date as given for the network :
Activity Days
(i - ;) Optimistic Most likely Pessimistic
1-2 2 5 14
1-3 9 12 15
2-4 5 14 17
3-4 2 5 8
4-5 6 6 12
3-5 8 17 20
Schedule project completion date is 30 days. A lso find the data on which the project manager can
complete the project with a probability of0.90. [R.TM Nagpur U. B.Tech. Dec., 2006]
23. Table below gives list of activities along with predecessors and three time estimates in weeks.
Activity Predecessor activity Optimistic time Most likely time Pessimistic time
A - 1 2 9
B A 2 3 4
C A 2 4 6
D A 3 5 7
E C 5 7 9
F D 1 3 5
G B 1 4 7
H G 2 6 10
I E, H 4 8 6
J F 2 6 10
(a) Draw the project network. (b) Find the critical path.
(c) Find the probability of completion in 21 weeks and 25 weeks.
[R.TM Nagpur B.E. (Mech.) Sept., 2010]
24. Draw the network and indicate the critical path in the network :
Activity Depends Activity duration in hours
on t0 tp tm
A - 80 150 100
B F 10 30 20
C - 10 30 20
D G 10 40 20
E G, D, F 40 60 50
F G, C 20 40 30
G - 20 50 30
[R. T M Nagpur B.Tech. Dec., 2004]
25. (a) A small project consists of seven activities, the details of which are given below :
Activity Duration (in days) Immediate
Most likely Optimistic Pessimistic predecessor
A 3 1 7 -

B 6 2 14 A
1296 •:• OPERATIONS RESEARCH

C 3 3 3 A
D 10 4 22 B, C
E 7 3 15 B
F 5 2 14 D, E
G 4 4 4 D
(i) Draw the network, number the nodes, find the critical path, the expected project completion
time and the next most critical path.
(ii) What project duration will have 95% confidence of completion?
(a) What is float ? What are the different types of floats ? Discuss total float and free float; explain
their uses in network. [R.TM. Nagpur U.B. Tech. Dec. , 2003]
26. A small project consists of the following activities :
Activity Immediate Time (days)
predecessor Optimistic Most likely Pessimistic
A - 4 6 8
B A 5 7 15
C A 4 8 12
D B 15 20 25
E B 10 18 26
F C 8 9 16
G E 4 8 12
H D, F 1 2 3
I G, H 6 7 8
(i)Construct an arrow diagram for this problem.
(ii)Determine the critical path and compute the expected completion time.
(iii)Determine the probability of completing the project within 52 days.
(iv) What project duration will have 40% confidence of completion of project?
[R. TM. Nagpur U. B. Tech. June, 2003]
27. The table below shows the expected time and variance for each activity involved in a process:
Predecessor Successor te cr 2
event i event j (days)
10 20 2 1/9
10 30 3 1/8
20 40 3
30 40 4 1/1 6
30 50 4 1/8
40 50 3 16/9
50 60 2 1/9
(i) Find out which of the activities involved in the process should be completed in time so that the
project is completed in minimum time.
(ii) Find the critical path.
(iii) For a similar process the time estimates are same but the standard deviation for the network is
1.9. For which case the uncertainty involved in completion of the project will be more?
28. Consider a task of obtaining IS0-9000 quality system certification for an organisation. The activities
involved , dependence and estimated durati ons are given below:
A ctivity D ependence Estimated duration
(weeks)
IP t,,, to
A 7 4 1
B 9 6 3
C A 14 5 2
D C 3 2
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1297
E A, B 18 9 6
F D 27 18 9
G D, E 40 20 10
H F, G 18 9 6
I D, E 28 10 4
J A, B 5 5 5
(i) Draw the network and find the expected duration of the task which will have 95% confidence of
completion.
[given p (Z < l.645) = 0.95.]
(ii) What is the minimum duration of completing the task? Compute its probability.
[givenp (Z > 3) = l.] [H.PU. B.Tech. (Mech.) June, 2007]
(Ans. (i) 47.7 weeks, 57.2 weeks;
(ii) 25 weeks, p = 0.5.)
29. Draw a PERT network for the following events and number the events.
A is the start event and L the last event.
B and D are successor events to A.
D precedes E and F.
C succeeds B.
E restricts the occurrence of C.
E and F precede G.
H is a successor event to C and E.
G restricts the occurrence of H.
J succeeds I and I succeeds H.
I & J precede K.
L is a successor event to K.
For the above network if three time estimates (days) for the activities are as under, find
(i) Earliest expected time and latest allowable occurrence time of each event.
(ii) Earliest expected time for the project.
(iii) Critical path.
Activity t0 tm tv
A-B 2 4 6
B - C 6 8 12
C -H 4 8 12
H- I 3 6 9
I - K 1 2 3
K - L 6 8 10
A - D 3 6 9
D - E 8 10 12
E -H 6 8 10
E - G 14 16 18
D - F 7 9 11
F - G 6 9 12
G - J 3 4 5
J - K 1 3 5
[PU. B.E. (E. & Ee.) June, 1993]
[Hint. The network for the problem is drawn below.]

Fig.14.45
1298 •:• OPERATIONS RESEARCH
30. Consider the following table:
Activity Predecessor Time in weeks
activity t0 tm tp
A 2 3 10
B 2 3 4
C A 2 3
D A 4 6 14
E B 4 5 12
F C 3 4 5
G D, E 7
(i) Draw the network diagram.
(ii) Find the critical path and variance of each event.
(iii) What is the probability that the project will be completed in 16 weeks?
[PU. B.Com. April, 2003]
31. A proj ect has the fo llowing activities and other characteristics:
Activity Preceding Time in weeks
activity t0 t111 tu
A 4 7 16
B 5 15
C A 6 12 30
D A 2 5 8
E C 5 11 17
F D 3 6 15
G B 3 9 27
H E, F 4 7
I G 4 19 28
(i) Draw the PERT network.
(ii) Identify the critical path.
(iii) Determine the mean project completion time.
(iv) Find the probability that the project is completed in 36 weeks.
(v) If the project manager wishes to be 99% sure that the project is completed on June 30, 2013 , when
should he start the project work? (Ans. (ii) A-C-E-H (iii) 37 weeks (iv) 0.4207
(v) 48.65 weeks before June 30, 2013; i.e, around 26th July, 2012.)
32. Swaraj Ltd. is planning a project to introduce a new product and has listed the following activities,
their normal, optimistic and pessimistic times and costs:
Activity Preceding Time and Cost
activity Normal Optimistic Pessimistic
Days ~ Days ~ Days ~
A 8 32 7 28 9 36
B A 11 33 7 21 15 45
C A 6 30 7 25 7 35
D C 4 24 3 18 5 30
The probab ilities associated with normal, optimistic and pessimistic times are 0.6, 0.2 and 0.2
respectively for each activity and the outcome for each activity is independent of the outcome of the
other activities. The site costs are ~ 50 per day.
You are required to compute and state:
(a) Critical path, time and cost of completion of the project if normal times are achieved.
(b) The cost and time if all the activities were completed in the pessimistic times.
(c) The probability of the project being completed in less than (i) 16 days (ii) 21 days.
[/CWA (Final) 2000]
(Ans. (a) A-B, 19 days, ~ 1,069. (b) 24 days, ~ 1, 346.
(c) t, : A- 8, B- 11 , C-6.4, D-4 days, T ep = 19 days, crcp = 1.37, (i) p = 0.014 (ii) p = 0.928.)
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1299
33. Three time estimates (in months) of all the activities of a project are given below.
Activity t0 t111 tp
1-2 3 4 5
2 -3 6 8 10
2 -4 2 3 4
3 -4 4 5 12
4 - 5 5 7 9
5-6 9 16 17
(a) Find the expected duration and standard deviation of each activity.
(b) Construct the project network.
(c) Determine the critical path, expected project length and variance of the project.
[PT U. MBA, 2008]
(Ans. (a) (i) 4 , 8, 3, 6, 7, 15 months. (ii) ½,½,½,½,½,½months.
(c) 1-2-3-4-5-6; 40 months; 4½)
34. A project comprising of eight tasks ( A to H) has the following characteristics :
Task Predecessor Time duration (weeks)
Optimistic Most likely Pessimistic
A 2 4 12
B 10 12 26
C A 8 9 10
D A 10 15 20
E A 7 7.5 11
F B, C 9 9 9
G D 3 3.5 7
H E, F, G 5 5 5
(a) Calculate the time duration of each activity and the variance.
(b) Draw the network diagram, determine the critical path and mark it in the network. What is the
total project duration ?
(c) What is the probability of achieving the project completion with the deadline of 30 weeks ?
[G.N.D.U. B.Com.April, 2007; PTU. MBA, 2005]
(Ans. (a) (i) 5, 14, 9, 15, 8, 9, 4 , 5 weeks. (ii) 2¾ ,6½ ,½,2¾ ,½,o,½0 ..
(b) A- D- G- H; 29 weeks.(c) 65.6%.)
35. For the data given below, find the following:
(i)The expected task times and their variances.
(ii)The earliest expected and latest allowable occurrence times of each event.
(iii)The critical path.
(iv) The probability that each task will be completed on schedule.
Task ABCDE F GH I J KL
Least time
(days) 3 2 6 8 0 5 6 3 8 2
Most likely
time (days) 5 2 4 8 12 0 7 9 2 6 15 4
Greatest
time (days) 6 3 6 12 17 0 9 12 3 8 20 6
Precedence relationship:
A and B can start immediately; C , D > A ; E > B, C; F, H > E ; G > D, F ; J > G; I, K > H; L > J, I.
(Ans. Critical path = A-C-E-H-K.)
36. In the PERT network shown in Fig. 14.46, the activity time estimates (in weeks) are given along
the arrows. If the scheduled completion time of the project is 23 weeks, calculate the latest possible
occurrence times on the basis of the scheduled date of final event. Calculate the slack for each event
and identify the critical path. What is the probability that the project will be completed on the scheduled
date?
1300 •:• OPERATIONS RESEARCH

Fig.14.46
[Ans. 97. 26 %. ]
37. A PERT network is shown in Fig. 14.47. The activity times (in hours) are given along the arrows.
The scheduled times for some important events are given along the nodes. Determine the critical path
and the probabilities of meeting the scheduled dates for the specified events. Tabulate the results and
determine the slacks. [Kuru. U. B.Tech. Dec., 1988]

1-5-8

3-6-9 T5 = 12
T 5 =8
4- 6-1 0

4-5-7

Fig. 14.47
(Ans. 20.3%, 19.5%, 0.07%.)
38. PERT calculations yield a project length of 60 weeks with variance of 9. Within how many weeks
would you expect the project to be completed with probability of 0.99? (Ans. 69 weeks.)

14.14 COST ANALYSIS AND CRASHING THE NETWORK

14.14·1 Project Cost
Each activity of the project consumes some resources and hence has cost associated with
it. In most of the cases cost of an activity will vary to some extent with the amount of time
consumed by the activity. The cost of total project, which is the aggregate of the activity costs
will also depend upon the project duration. Thus by increasing the costs, the project duration can
be cut down to some extent. The aim is always to strike a balance between the costs and time,
and to obtain an optimum project schedule. An optimum project schedule implies lowest possible
cost and the associated time for the project. The total cost of any project consists of the direct and
indirect costs involved in its execution.
Direct Cost
This cost is directly dependent upon the amount of resources involved in the execution of the
individual activities. This is the cost of the materials, equipment and labour required to perform
the activity. If the activity is performed by a subcontractor, the price of the subcontract will be the
activity direct cost. It can be seen from the direct cost-time relationship shown in Fig. 14.48 that
the activity duration can be varied by varying the cost. Point N, referred to as the ' normal point'
corresponds to the normal activity time. If the duration is further increased, the decrease in cost is
insignificant. As the activity is compressed, the direct cost goes on increasing. If it is compressed
beyond C, the cost increases very rapidly for insignificant change in the activity duration. This
point is called ' crash point'. Crash time is thus the minimum activity duration to which an activity
can be compressed by increasing the resources and hence by increasing the direct cost.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1301
To make the calculations simple, the direct cost-time curve is approximated to either a single
straight line or multi-straight lines (segments), as shown in Fig. 14.49(a) and 14.49(b) respectively.
The slope of the line (or a segment of line) gives the increase in direct cost per unit time for
expediting the activity. This is called cost slope.
For the straight line approximation in figure 14.49 (a),

Cc -Cn = i1C
cost slope =- --
In - Tc 11T

C (Crash point)

Tc Tn
Activity duration ---+-
Fig. 14.48

The choice between the single straight line and segmented approximation depends upon the
non-linearity of the cost curve. Also the segmented approximation is adopted only when the activity
can be broken down into subactivities. Above all, it is the judgment of the executive whether to
approximate the curve by segments and go through involved calculations or to use a little rough
single slope approximation and save calculation work.

Fig. 14.49 (a) Fig. 14.49 (b)

Indirect Cost
Project indirect cost can further be sub-divided into two parts: fixed indirect cost and variable
indirect cost. The fixed indirect cost is due to the general and administrative expenses, licence
fee , insurance cost and taxes and does not depend upon the progress of the project. The variable
indirect cost depends upon the time consumed by the project and consists of overhead expenditure,
supervision, interest on capital and depreciation, penalty for delays (if any), etc. It is assumed that
the indirect cost increases linearly with time as shown in figure 14.50.
The sum of the direct and indirect cost gives the project total cost. As the direct cost
decreases with time and indirect cost increases with time, the project total cost curve will have a
point where the total cost will be minimum (Fig. 14.51). The time corresponding to this point is
called the optimum duration and the cost, the optimum cost.
1302 •:• OPERATIONS RESEARCH
5\
C,
0
I

t t Min: cost
I
I
I
I

Time- Project duration -

Fig.14.50 Fig.14.51

14.14·2 Crashing (Contracting or Compressing) the Network

Often there may be compelling reasons to complete the project earlier than would be the case
with the duration of the critical path computed on the basis of normal activity times. Examples are
war situations or market introduction of a new product. The motive in hastening the project might
be to ensure that the competitors do not steal a march. Also the managements often want to reduce
the target time so that the saved time can be used for some extra work. In such situations, our
concern is to find the project cost if some or all the activities are crashed. From the knowledge of
the normal direct cost and crashed direct cost, the cost slope for each activity can be determined.
If the indirect cost/time is known, the total cost of the project can be found by adding the direct
and indirect costs.
The normal time (tn) for the completion of the project will be the sum of the normal time
durations of the critical activities and the normal direct cost (Cn) of the project will be the sum of
the normal cost of all the activities since each and every activity has to be executed to complete
the project.
The minimum time (tc) that the project will take for its completion will be sum of the crashed
time durations of the activities along the critical path. If all the activities (critical as well as non-
critical) are crashed, the cost will be very high without any additional advantage over and above
the one obtained by crashing only the critical activities. Therefore, the non-critical activities need
not be expedited since their crashing is not going to decrease the project duration further.
However, in the process of crashing the critical activities, it may so happen that some of the
non-critical activities become critical. It is, therefore, essential to proceed step by step, crashing
one activity at a time and examine whether any other non-critical activity has also become critical.
Obviously, first the critical activity with minimum cost slope should be selected for crashing and
so on till all the critical activities are fully crashed or no further crashing is possible.
The time-cost trade off method consists of systematic analysis of the project time and cost.
At each step of crashing, the direct cost is calculated; it would naturally be higher than the normal
direct cost as it includes the additional cost of crashing too. However, the indirect cost will reduce
as the project duration has been reduced. The total cost is then found at each step. A table or a
curve may be constructed between the total cost and time. It is found that as the project duration
is decreased, the total cost may also decrease, reaching the minimum value, beyond which it may
increase. This minimum cost is called the optimum project cost and the corresponding time, the
optimum project time. In emergencies and during sudden rush of orders from the customers, the
crashing may be further continued to get the minimum or crash project time and the corresponding
crash cost.
14.14-3 Time-Cost Trade Off Procedure
It consists of the following steps :
l. Draw the project network, identify the critical path and calculate the normal cost of the
project.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) +!• 1303
2. Determine the cost slope for each activity.
Crash cost - Normal direct cost
Cost slope=
Normal time - Crash time
The cost slope represents the additional cost incurred per unit time (saved) in reducing the
duration of the activity.
3. Crash the critical activity with minimum cost slope. Calculate the new direct cost by
adding the additional cost of crashing to the normal cost.
4. As the crashing is done, it is possible some non-critical activities also become critical.
Thus we may have multiple or parallel critical paths. If so, choose an activity from each
such path for crashing.
5. Of the various available combinations, select the one with least cost.
6. Revise the network by adjusting the time and cost of the crashed activity/activities. Identify
the critical path (s) again.
7. Continue the process till no more crashing is possible. This gives the crash time. Calculate
the associated total cost (by adding the normal direct cost, additional crash cost and
indirect cost). This is the corresponding crash cost.
8. Prepare the total cost table corresponding to different project durations.
9. The minimal total cost is called the optimum cost and the associated time is called the
optimum time.
EXAMPLE 14.14·1
List of activities for erecting a canteen in a factory is given below with other relevant
details. Job A must precede all others while job E must follow others. Apart from this, jobs can
run concurrently.
Code Job description Normal Crash
Duration Cost Duration Cost
(days) ~) (days) ~)
A Lay foundation and build walls 5 3,000 4 4,000
B Tile roofing 6 1,200 2 2,000
C lnstal electricity 4 1,000 3 1,800
D lnstal plumbing 5 1,200 3 2,000
E Connect services to finish 3 1,600 3 1,600
8,000
(i) Draw the network and identify the critical path.
(ii) Crash the network fully to find out minimum duration.
(iii) If indirect costs are ~ 300 per day, determine time-cost trade offfor the project.
[Dayalbagh Edu. Inst. Agra MBA May, 2013; I.C.W.A. (Final) June, 1987]
Solution
First, the cost slope for each activity and the normal direct cost of the project is calculated.
This is shown in the table below.
Job A(l-2) B (2-3) C (2-5) D (2-4) E (5-6)
Cost slope 1,000 200 800 400
~/day)
Normal direct cost from the given table=~ 8,000.
Next, the network is drawn and the critical path is determined. An activity (i - j) is critical
only if E = L for its tail event, E = L for its head event and E1 - E; = L1 - L; = tif Critical path is
shown in Fig. 14.52.
1304 •:• OPERATIONS RESEARCH
E = 11
L = 11

E=O E = 11
L=O L = 11

E = 10
L = 11
Fig.14.52
(i) Critical path is 1-2-3-5-6.
Normal duration= 14 days.
Normal cost= ~ (8,000 + 300 x 14) = ~ 12,200.
(ii) Represent the network on time-scaled diagram. This is shown in Fig. 14.53 Activities
along the critical path are arranged along the horizontal line 1-2-3-5-6.
Early start times for the activities have been assumed. Dotted lines show the floats for the
non-critical activities.
Project length can be reduced by crashing the critical activities. This will involve extra
direct-cost. While crashing a critical activity, it is possible that some associated non-critical activity
(or activities) may also have to be crashed. If float is available no extra cost for such activity
(or activities) will be involved; if not, the cost of crashing such activity (activities) will also
be considered and the total cost will be calculated. Then the critical activity involving the least
associated cost will be selected for crashing.
While crashing a critical activity, only those non-critical activities will require crashing
which start from the tail event of the critical activity under consideration or earlier and finish
at the head event of the critical activity or later than that. This rule may be kept in mind while
crashing the activities.
1---A--~21----B_ ____,~3
5(4) , 1,000 6(2) , 200 I
I
C
4(3) , 800 -- t
2~/c\
3(3) \0
D 1 A
5(3) , 400 -·~

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Fig.14.53
Crash activity B (2- 3), C (2- 5) and D (2- 4) by one day each.
The various alternative critical activities and their crash costs are given below
Activity Cos t(~) Activity Cost(~)
A(l-2) 1,000 B (2-3) 200
D (2-4) Nil
C (2-5) Nil
200
Since activity 2-3 has the lower associated crash cost of~ 200 per day, it is crashed by one
day. With this activity, activities 2-4 and 2-5 will also have to be crashed. Since these activities
have floats, crash cost for one day of crashing will be nil for either of them. This is shown in the
table above.
Crash cost=~ 200,
project duration = 13 days.
The network is shown in Fig. 14.54.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1305
A B
2 3
5(4) , 1,000 5(2) , 200
C 1 l E
4(3) , 800 - ~
D
4
5(3) , 400
0 1 2 3 4 5 6 7 8 9 10 11 12 13
Fig.14.54
Crash activities B, C and D by one day each.
The various activities and their crash costs are given below.
Activity Cost( ~) Activity Cost( ~)
A (1-2) 1,000 B (2-3 ) 200
D (2-4) 400
C (2-5) Nil
600
Crash cost = ~ (200 + 600) = ~ 800,
project duration= 12 days.
The network is shown in Fig. 14.55.
B
1------'-'A'---!lo!
5(4) , 1,000
2
4(2) , 200 q) I

C ~
,___4(-3)-,-80-o·y 3(3) · ~

4(3) , 4~0 0
0 1 2 3 4 5 6 7 8 9 10 11 12
Fig.14.55
Crash activity A (1-2) by one day.
The various activities and their crash costs are given below.
Activity Cost~) Activity Cost~)
A (1-2) 1,000 B (2-3 ) 200
D (2-4) 400
C (2-5) 800
1,400
Crash cost = ~ (1 ,000 + 800) = ~ 1,800,
project duration = 11 days.
The network is shown in Fig. 14.56
,___~A'--_ 2 ,____B_ _ 3
4(4) , 1,000 4(2) , 200
C
4(3), 800
D
4(3), 400
0 2 3 4 5 6 7 8 9 10 11
\ Fig.14.56
Crash activities B, C and D by one day each.
Crash cost=~ (1,400 + 1,800) = ~ 3,200,
project duration = 10 days.
1306 •:• OPERATIONS RESEARCH

l--~A-- 2 B 3
4 (4), 1,000 3(2), 200

C
3(3), 800
D
3(3) , 400
0 2 3 4 5 6 7 8 9 10

Fig.14.57
The network is shown in Fig. 14.57. All activities are fully crashed. Thus minimum project
duration is 10 days. The complete crashing of the network from 14 days to 10 days can be shown
in a single diagram (Fig. 14.58) to save time.
A B
1 4.5(4) , 1 ,00 0 2 3456(2) , 20 0 7
I

)-----,-
3 --,,
C
.4'C(3..,..
"C ) ,--,8....,. y~
O ;f ~~
0-,-0......

D o;r A
3.4'.5(3) , 4 00 -~

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Fig.14.58
The above results are summarised in the table below
Duration Normal direct Crash cost Indirect cost Total cost
(days) cost ( ~) ( ~) ( ~) ( ~)
14 8,000 0 4,200 12,200
13 8,000 200 3,900 12,100
12 8,000 800 3,600 12,400
11 8,000 1,800 3,300 13,100
10 8,000 3,200 3,000 14,200
(iii) Thus time-cost trade off exists at 13 days when B is crashed by l day and the total
minimum cost is~ 12,100.
EXAMPLE 14.14·2
The following table gives data on normal time and cost and crash time and cost for a project:
Activity Normal Crash
Tim e (days) Cost~) Time (Days) Cost ( ~)
1-2 6 60 4 100
1-3 4 60 2 200
2-4 5 50 3 150
2-5 3 45 1 65
3-4 6 90 4 200
4-6 8 80 4 300
5-6 4 40 2 100
6-7 3 45 2 80
47 0
The indirect cost per day is ~ I 0.
(i) Draw the network for the project.
(ii) Find the critical path.
(iii) Determine minimum total time and corresponding cost.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1307
[H.P U.B. Tech. (Mech.) Nov., 2006; M.D. U. Rohtak B.E. (Mech.) Dec., 2006;
PU. B.E. (Mech.) 1999; Kum. U. B.E.(Mech.) 1993]
Solution
First, the cost slope for each activity and the normal direct cost of the project is calculated.
This is shown in the table below.
Activity 1-2 1-3 2-4 2-5 3-4 4-6 5-6 6-7
Cost slope
~ /day) 20 70 50 10 55 55 30 35
(i) Next, the network is drawn and the critical path is determined. This is shown in Fig.
14.59.

E = 22
L = 22

E=4
L=5 Fig.14.59
(ii) The critical path is 1-2-4-6-7.
(iii) Normal duration = 22 days.
Normal cost=~ (470 + 22 x 10) = ~ 690.
Now represent the network on time-scaled diagram. This is shown in Fig. 14.60.
3(1) , 10 4(2), 30 6
>-----------------
6(4), 20 8(4), 55

4(2), 70

0 1 2 3 4 5 6 7 8 9 101112131415161718192021 22
Fig. 14.60
Crash activity 1-2 by 1 day.
The various alternative activities and their crash costs are given below.
(a) Activity Cost( ~) (b) Activity Cost( ~) (c) Activity Cost ( ~) (d) Activity Cost(~)
1-2 20 2-4 50 4-6 55 6-7 35
1-3/3-4 Nil 2-5/5-6 Nil 2-5/5-6 Nil
1-3/3-4 Nil
20 50 55 35
Since activity 1-2 has the lowest associated crash cost of~ 20 per day, it is crashed by one day.
Crash cost = ~ 20,
project duration = 21 days.
The network is shown in Fig. 14.61
1308 •!• OPERATIONS RESEARCH
3(1) , 10 4(2) , 30 6
.---"'-15 ---------------1
I
5(3), 50 8(4) , 55

6(4) , 55

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Fig.14.61
Crash activity 6-7 by 1 day.
The various alternative activities and their crash costs are given below.
(a) Activity Cost(~) (b) Activity Cost(~) (c) Activity Cost(~) (d) Activity Cost(~)
1-2 20 2-4 50 4-6 55 6-7 35
1-3/3-4 55 2-5/5-6 Nil 2-5/5-6 Nil
1-3/3-4 55
75 105 55 35
Since activity 6-7 has the lowest associated crash cost of~ 35 per day, it is crashed by one
day.
Crash cost= ~ (20 + 35) ~ 55,
project duration = 20 days.
Crash activity 4-6 by 4 days.
As evident from the above table, next activity 4-6 has the lowest associated crash cost of ~
55 per day and as seen from Fig. 14.61 it can be crashed by 4 days.
Crash cost=~ (55 + 4 x 55) = ~ 275,
project duration= 16 days.
The network is shown in Fig. 14.62.
3(1) , 10 4(2) , 30 2
5

5(4) , 20 5(3) , 50 4(4) , 55

4

4(2) , 70 6(4) , 55
3

0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Fig.14.62
Crash activity 1-2 by 1 day.
Next, activity 1-2 is crashed by l day at a cost of~ 75 per day.
Crash cost=~ (275 + 75) = ~ 350,
project duration= 15 days.
The network is shown in Fig. 14.63.
3(1) , 10 5 4(2) , 30 2

5(3), 50 4(4) , 55

5(4) , 55

0 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Fig.14.63
Crash activity 2-4 by 1 day.
Now activity 2-4 is crashed by l day at a cost of~ 105 per day.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1309
Crash cost=~ (350 + 105) = ~ 455,
project duration= 14 days.
The network is shown in Fig. 14.64. No further crashing is possible.
3(1), 10 4(2), 30
5 > - - - - - - -·········

4(4) , 20
I-----~ 2
4(3), 50
1---~-- , 5_5_~ 6 ~
1--4_(4_)_
35'-'..J
4(2) , 70 4(4) , 55
'------'--'----- 3 1---~--~

0 2 3 4 5 6 7 8 9 10 11 12 13 14
Fig.14.64
The complete crashing of the network from 22 days to 14 days can be represented in a
single diagram (Fig. 14.65).
3(1), 10 4(2), 30 2 f5
>----------------1
4.5,6'(4), 20 4.8'(4) , 55

4(2), 70

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Fig.14.65
Minimum total time = 14 days,
corresponding cost=~ (470 + 14 x 10 + 455) = ~ 1,065.
EXAMPLE 14.14·3
The following table gives data on normal time and cost and crash time and cost for a project.
(a) Draw the network and identify the critical path.
(b) What is the normal project duration and associated cost?
(c) Find out total float for each activity.
(d) Crash the relevant activities systematically and determine the optimum project time and
cost.
Activity Normal Crash
Time (weeks) Cost (~) Time (weeks) Cost~)
1-2 3 300 2 400
2-3 3 30 3 30
2-4 7 420 5 580
2-5 9 720 7 810
3-5 5 250 4 300
4-5 0 0 0 0
5-6 6 320 4 410
6-7 4 400 3 470
6-8 13 780 JO 900
7-8 JO 1,000 9 1,200
4,220
Indirect costs are ~ 50 per week. [Univ. of Madras MBA April, 2012; R.TM. Nagpur
U. B.E. (Mech.) 2011, 05; Dec., 2003; J.C.WA. (Final) Dec., 1988]
1310 •!• OPERATIONS RESEARCH

Solution
First, the cost slope for each activity and the normal direct cost of the project are calculated.
This is shown in the table below.
Activity 1-2 2-3 2-4 2-5 3-5 4-5 5-6 6-7 6-8 7-8
Cost slope ~ /week) 100 80 45 50 45 70 40 200
Normal direct cost=~ 4,220.
Next, the network is drawn and the critical path is found. This is shown in Fig. 14.66.
(a) The critical path is 1-2-5-6-7-8.
(b) Normal project duration= 32 weeks,
normal project cost=~ (4,220 + 32 x 50) = ~ 5,820.

E =32
L= 32
Fig.14.66

(c) Total float for each activity is found in the table below.
Start Finish Total
Activity Duration Earliest Latest Earliest Latest fl.oat
1-2 3 0 0 3 3 0
2-3 3 3 4 6 7
2-4 7 3 5 10 12 2
2-5 9 3 3 12 12 0
3-5 5 6 7 11 12
4-5 0 10 12 10 12 2
5-6 6 12 12 18 18 0
6-7 4 18 18 22 22 0
6-8 13 18 19 31 32
7-8 10 22 22 32 32 0
(d) Since the indirect cost is~ 50/ week and the network is to be crashed only upto optimum
time and cost, only those activities need to be crashed for which the total cost slope is ::; ~ 50/
week. The time-scaled diagram of the network is shown in Fig.14.67.
5(4) , 50 1
3 I
I
10(9), 200
------ 8
1I
, 4_o_ _ _ J
~---1_3(_1_0)_

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32
Fig.14.67
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1311
Crash activity 5-6 by 2 days at a crash cost of< 45/week.
Crash cost = < (2 x 45) = < 90,
project duration = 30 weeks.
Crash activity 2-5 by 1 day at a crash cost of< 45/week.
Crash cost=< (90 + 45) = < 135,
project duration = 29 weeks.

,-;,..
0>------·
10(9), 200
y
(8)

13(1 0),40
11

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 29

Fig.14.68

If the activities are crashed further, the crash cost/week will be more than < 50 and hence
further crashing is not done. The project is shown in Fig. 14.68.
The crashing of the network from 32 weeks to 29 weeks can be represented in a single
diagram (Fig. 14.69).
0
5(4), 50 .Y

10(9), 200
1-------8

1 I
13(10),40 I

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

Fig.14.69

The above results are summarised in the table below :

Duration Normal direct Crash cost Indirect cost Total cost
(weeks) cost(<) ( <) ( <) ( <)
32 4,220 1,600 5,820
31 4,220 45 1,550 5,815
30 4,220 90 1,500 5,810
29 4,220 135 1,450 5,805
Optimum project duration = 29 weeks,
optimum total project cost=< 5,805.
EXAMPLE 14.14·4
The following table gives the various activities, their duration and direct costs. The indirect
cost is <2,000 per week. Find the optimum cost schedule using CPM technique.
Activity Time in weeks Cost in < Cost in < to
expedite
Normal Crash Normal Crash per week
1-2 8 4 3,000 6,000 750
1-3 5 3 4,000 8,000 2,000
1312 •!• OPERATIONS RESEARCH

2-4 9 6 4,000 5,500 500

3-5 7 5 2,000 3,200 600
2-5 5 1 8,000 12,000 1,000
4-6 3 2½ 10,000 11 ,200 2,400
5-6 6 2 4,000 6,800 700
6-7 10 7 6,000 8,700 900
5-7 9 5 4,200 9,000 1,200
45,200 70,400
Does your answer vary, if the objective is to minimize the project duration ? In that case
what is the cost and duration ? [PT U. B.Tech. (Mech.) 2008]

E=O
L=O
E = 30
L= 30
E=5
L = 14
Fig.14.70
Solution
First, the network is drawn and the critical path is found. This is shown in Fig. 14.70.
Critical path is 1-2-4-6-7 and normal duration is 30 days. Next, the time-scaled diagram of
the network is drawn, which is shown in Fig. 14.71.
9(5); 1,200 8

6(2) , 700 1

10(7), 900
>-------7

2,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Fig.14.71
Crash activity 2- 4 by one week.
The various alternative activities and their crash costs are given below :
Activity Cost {( ) Activity Cost {() Activity Cost {() Activity Cost {( )
1-2 750 2-4 500 4-6 2,400 6-7 900
3-5 Nil 5-6 Nil 5-6 Nil 5-7 Nil
5-7 Nil 5-7 Nil
750 500 2,400 900
Since activity 2-4 has the lowest associated cost of ( 500/week, it is crashed by one week.
Additional crash cost = ( 500,
project duration = 29 weeks.
The crashed network is shown in Fig. 14.72.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1313
______
9(5) ; 1,200 .._ _______
7 _

6(2), 700

10(7), 900
1--~-----l- 7
I
I

7(5), 600 1:
2,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 29
Fig.14.72
Crash activity 1-2 by one week.
The various alternative activities and their crash costs are given below :
Activity Cost~) Activity Cost~) Activity Cost(() Activity Cost~)
1-2 750 2-4 500 4-6
2,400 6-7 900
3-5 Nil 5-6 700 5-6
700 5-7 Nil
5-7 Nil 5-7
Nil
750 1,200 3,100 900
Since activity 1-2 has the lowest associated cost of ( 750/ week, it is crashed by one week.
:. Total additional crash cost = ( (500 + 750)
= ( 1,250,
project duration = 28 weeks.
The crashed network is shown in Fig. 14.73 .
9(5); 1,200 ___ ? ___ ,

10(7), 900
1-------7

2,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
Fig.14.73
Crash activity 6-7 by 3 weeks.
The various alternative activities and their crash costs are given below :
Activity Cost( () Activity Cost(( ) Activity Cost( () Activity Cost( ()
1-2 750 2-4 500 4-6 2,400 6-7 900
3-5 600 5-6 700 5-6 700 5-7 Nil
5-7 Nil 5-7 Nil
1,350 1,200 3,100 900
Since activity 6-7 has the lowest crash cost of ( 900/ week, it is crashed by 3 weeks.
Total additional crash cost= ( (1 ,250 + 900 x 3)
= (3 ,950,
project duration = 25 weeks.
1314 •!• OPERATIONS RESEARCH
Crash activity 2-4 by 2 weeks.
Now activity 2-4 has the next higher crash cost of ~ 1,200/ week. Therefore, it is crashed
by 2 weeks.
Total additional crash cost=~ (3 ,950 + 2 x 1,200) = ~ 6,350,
project duration = 23 weeks.
The resulting crashed network is shown in Fig. 14.74.
9(5) ; 1,200 2

2,000

0 2 4 6 8 10 12 14 16 18 20 22 23
Fig.14.74
Crash activity 1-2 by 2 weeks.
Next, activity 1-2 can be crashed by 2 weeks at an extra crash cost of~ 1,350 per week.
Total additional crash cost= ~ (6,350 + 2 x 1,350)
= ~ 9,050,
project duration = 21 weeks.
Crash activity 1-2 by 1 week.
Activity 1-2 can be further crashed by l week. Since activity 3-5 has been fully crashed to 5
weeks, activity 1-3 can be crashed along for l week; the crash cost of this activity is ~ 2,000/week.
Total additional crash cost= ~ (9,050 + 2,750)
= ~ 11 ,800,
project duration = 20 weeks.
9(5) ; 1,200 1½

0 2 4 6 8 10 12 14 16 1819.5
Fig.14.75
Crash activity 4-6 by ½ week.
Next, activity 4-6 can be crashed for 1/2 week. The cost slope of this activity is ~ (2,400 +
700) = ~ 3,100/week. The resulting crashed network is shown in Fig. 14.75.

Total additional crash cost=~ ( 11,800 + -3,100)

2-
= ~ 13,350,
l
project duration = 19 2 weeks.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1315
The project cannot be crashed further.
The complete crashing of the network from 30 days to 19.5 days can be shown in a single
diagram (Fig. 14.76) also.

9(5); 1,200
------------
3½
-- -
}',,6(2), 700
51----+,
~
I
I
I 7
¼(7) , 900
1---------;- 7

2,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Fig.14.76
The following table representing the total cost for different durations of the project is now
constructed:
Week Direct cost ~) Indirect cost ~) Crash cost ~) Total cost ~)
30 45,200 60,000 0 1,05,200
29 45,200 58,000 500 1,03,700
28 45,200 56,000 1,250 1,02,950
27 45,200 54,000 2,150 1,01,350
26 45,200 52,000 3,050 1,00,250
25 45,200 50,000 3,950 99,150
24 45,200 48,000 5,150 98,350
23 45,200 46,000 6,350 97,550
22 45,200 44,000 7,700 96,900
21 45,200 42,000 9,050 96,250
20 45,200 40,000 11 ,800 97,000
1
19 - 45,200 39,000 13 ,3 50 97,550
2
From the above table, minimum cost = ~ 96,250,
minimum cost schedule = 21 days.
l
Minimum project duration = 19 2 days,

corresponding total cost= ~ 97,550.

EXAMPLE 14.14·5
The following is a table showing details of a project :
Task Imm ediate Normal Crash
predecessor Time (weeks) Cost ( ~ '000) Time (weeks) Cos t ( ~ '000)
A 10 20 7 30
B 8 15 6 20
1316 •!• OPERATIONS RESEARCH

C B 5 8 4 14
D B 6 11 4 15
E B 8 9 5 15
F E 5 5 4 8
G A, D, C 12 3 8 4
Indirect cost is ~ 400 per day. Find the optimum duration and the associated minimum
project cost. [R.TM. Nagpur U. B.Tech. June, 2006, 05; Dec., 2004; H.P U.B.
Tech. (Mech.) June, 2007; PU. B.E. (Mech.) Nov., 2006]
Solution
The total normal direct cost of the project
=~(20+ 15+8+ 11 +9+5+3) X l ,QQQ
= ~ 71,000.
The cost slope for each activity is calculated below :
Activity A B C D E F G
Cost slope 10/3 2.5 6 2 2 3 0.25
(~ '000/week)
Next, the network is drawn and the critical path is found. This is shown in Fig. 14.77. Project
duration is 26 weeks and 1-2-3-4-6 is the critical path.
E = 14
L = 14

E =26
L= 26

E = 16
L = 21
Fig.14.77

To crash the network, time-scaled diagram is drawn first. This is shown in Fig. 14.78.

G, 12 (8)

~
0.25

I
F, 5(4) 5
5 - -----I
2 3

0 2 4 6 8 10 12 14 16 18 20 22 24 26
Fig.14.78

Since the network is to be crashed to find the optimum duration and the indirect cost is ~
400/day or ~ 2,800/week, the critical activities will be crashed so long as the cost of crashing
them/week does not exceed~ 2,800.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1317
Crash activity 4-6 by four weeks.
The various alternative activities and their crash costs are given below:
Activity Cost ( t ) Activity Cost ( t ) Activity Cost ( t )
1-2 2,500 2-3 2,000 4-6 250
1-4 Nil 2-4 Nil 5-6 Nil
1-4 Nil
2-5/5-6 Nil
2,500 2,000 250
Since activity 4-6 has the lowest associated cost of t 250/week, it is crashed by 4 weeks.
Project duration = 22 weeks.
Additional crash cost= t (4 x 250) = t 1,000.

A, 10(7); 10/3 G, 8 (8)

0.25

B, 8(6)
2.5

5
F, 5(4) _,
1I
2 3

0 2 4 6 8 10 12 14 16 18 20 22
Fig.14.79

The crashed network is shown in Fig. 14.79.

Crash activity 2-3 by one week.
As seen earlier, activity 2-3 can be crashed by one week at an additional crash cost oft
2,000 per week.
Project duration = 21 weeks,
total additional crash cost = t (1 ,000 + 2,000) = t 3,000.
The crashed network is shown in Fig. 14.80.
A, 10(7); 10/3 G, 8 (8)
0.25

B, 8(6)
2.5
E, 8(5) F, 5(4)
5
2 3

0 2 4 6 8 10 12 14 16 18 20 21
Fig.14.80
Crash activity 1-2 by 2 weeks.
As indicated earlier, activity 1-2 can be crashed by 2 weeks at an additional crash cost of
t 2,500 per week.
Project duration = 19 weeks,
total additional crash cost= t (3,000 + 2,500 x 2)
= t 8,000.
The crashed network is shown in Fig. 14.81.
Activity 2-3 can be crashed further by one week but the crash cost will be more than the
indirect cost of t 2,800 per week. Therefore, it is not crashed.
1318 •!• OPERATIONS RESEARCH
Minimum cost project duration
= 19 weeks,
optimum project cost
= Normal direct cost + total
additional crash cost + indirect cost of 19 weeks
= ~ [71 ,000 + 8,000 + 2,800 X 19]
= ~ 1,32,200.
The complete crashing of the network from 26 0 2 4 6 8 10 12 14 16 18 19
weeks to 19 weeks is represented in a single diagram Fig.14.81
(Fig. 14.82).
8
G, ;1 (8)
0.25
6
B,,!!'(6)
2.5
F, 5(4)
~ - -2- - - - 5 - -3----- - ----

0 2 4 6 8 10 12 14 16 18 20 22 24 26
Fig.14.82

EXERCISES 14.4
1. Explain crashing of project networks.
[G.N.D.U. B.Com. April, 2006; Sept. , 2000; G.JU. B.E. (Mech.) 1998]
2. Explain project time-project cost trade off [Osmania U.MBA , 2010; Nagpur U. B.E. (Mech.) 2003]
3. As the project manager of Quick Construction Company, you are involved in drawing a PERT network
for laying the foundation of a new art museum. The relevant information for all the activities of this
project is given in the table below:
Activity Time estimates (in Normal cost/or Crash Immediate
weeks) expected duration cost predecessors
to tm tp (~) ( ~)
A 2 3 4 6,000 8,000 -

B 4 5 6 12,000 13,500 A
C 3 5 7 16,000 22,000 A
D 2 4 6 8,000 10,000 A
E 1 2 3 6,000 7,500 C, D
F 1 3 5 14,000 20,000 B, E
62,000
(i) Construct the PERT network for the project and determine the critical path and the expected
duration of the project.
(ii) The Director of the company is not impressed by your PERT analysis. He draws your attention that
the project must be completed by seven weeks and refers to the penalty clause in the agreement
which provides for payment of penalty at the rate of~ 2,500 for every week or part there of
exceeding seven weeks. Your Director also strongly believes that the time duration of various
activities of the project can be crashed to their optimistic time estimates with the crashing costs
mentioned in the above table. Determine the optimum duration of the project if your objective is
to minimize the sum of the project execution cost and the penalty cost.
[P TU. June, 1999]
(Ans. (i) l - 2-4- 5-6, 13 weeks (ii) ll weeks, ~ 75 ,500.)
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1319
4. The activity data for a project are given in the table below :
Task Predecessor Normal time Minimum time Crash cost per
(weeks) (weeks) week(~')
A 8 7 1,000
B A 3 2 500
C A 5 4 1,200
D B, C 6 5 1,500
E D 3 2 800
F D 5 4 900
G E, F 6 5 3,000
(a) What is the minimum possible project duration attainable ?
(b) If the project is to be shortened by two weeks, which tasks should be crashed and how much while
minimizing direct costs ? [U.P Tech. U. MBA, 2009]
5. The following table gives the activities of the project along with their normal durations and costs as
well as crash durations and costs :
Normal Crash
Activity
(i - j) Duration Cost Duration Cost
(days) ( ~) (days) ( ~)
1-2 5 560 4 600
2-3 8 1,640 6 1,820
2-4 11 2,360 7 2,580
2-5 9 1,320 7 1,800
3-5 10 600 8 1,000
4-5 7 1,800 5 1,970
5-6 5 680 4 960
The indirect cost is ~ 160 per day.
(a) Draw the project network and determine the critical path based on normal durations of the activities.
(b) What is the total normal cost of the project?
(c) Suitably crashing the activities, obtain the optimum duration and the corresponding cost.
[Mumbai U. MBA, 2010]
6. Relevant information about the project undertaken by Best Construction Company is given in the
following table :

Immediate Time in weeks Cost in ~

Activity
predecessor Normal Crash Norma l Crash
A - 3 2 6,000 8,000
B A 5 4 12,000 13,500
C A 5 3 16,000 22,000
D A 4 2 8,000 10,000
E C, D 2 1 6,000 7,500
F B, E 3 1 14,000 20,000
(a) Construct the network and determine the critical path.
(b) Find the duration of the project.
(c) The Director of the company wants the project to be completed within 7 weeks and refers to the
penalty clause in the agreement that provides for payment of penalty at the rate of~ 25 ,000 for
every week exceeding 7 weeks. Determine the optimal duration of the project so as to minimize
the sum of the project execution cost and the penalty cost. [Mumbai U. MBA , 2010]
1320 •!• OPERATIONS RESEARCH
7. The following table contains details of activities in a construction project and other relevant information:
Normal Crash
Activities Time (days) Cost ( t ) Time (days) Cost (t)
1- 2 20 600 17 720
1- 3 25 200 25 200
2- 3 10 300 8 440
2- 4 12 400 6 700
3- 4 5 300 2 420
4- 5 10 300 5 600
4- 6 5 600 3 900
5- 7 10 500 5 800
6- 7 8 400 3 700
(a) Draw network diagram for the project.
(b) Crash the activities step-by-step until all the paths are critical.
[G.N.D.U. B.Com. April. 2010; R.T.M Nagpur U. B.Tech. Dec., 2006]
8. The following table gives the activities and other relevant data for a project :
Normal time Crash time Normal cost Crash cost
Activity
(days) (days) (t) (t)
1- 2 4 3 600 800
1- 3 2 2 400 400
1- 4 5 4 750 900
2- 3 7 5 400 600
2- 5 7 6 800 1,000
3- 5 2 1 500 650
4- 5 5 4 600 850
Indirect cost per day for the project is t 200.
(a) Draw the project network.
(b) Find the normal duration and cost of the project.
(c) Find the optimum duration and cost of the project. [G.N.D.U. B.Com. April, 2008]
9. The following table shows for each activity, the normal time, the shortesttime and the cost per day for reducing
the time. The contract includes a penalty clause oft 100 per day over 17 days. The overhead cost per day is
t 160.
Normal time Shortest time Cost of reduction
Activity
(days) (days) per day ( t )
1- 2 6 4 80
1- 3 8 4 90
1- 4 5 3 30
2- 4 3 3 -

2- 5 5 3 40
3- 6 12 8 200
4- 6 8 5 50
5- 6 6 6 -

The cost of completing the eight activities in normal time is t 6,500. Calculate the normal duration, its
cost and the critical path. Also calculate the cost per time function for the project and state the lowest
cost and associated time. [G.N.D.U. B.Com Sept., 2008]
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1321
10. The relevant data for a project are given below :
Time in days Direct cost in ~
Activitiy
Normal Crash Normal Crash
1- 2 16 13 12,000 19,500
1- 3 18 15 9,000 13,500
2- 3 14 11 11,000 14,000
2- 4 15 13 13,000 20,000
3- 4 15 15 10,000 10,000
Indirect cost is t 8,000 per week. Determine
(a) Normal duration and normal cost.
(b) Optimum duration and cost.
(c) Minimum duration and associated cost. [GD.NU. B.Com. Sept., 2002]
11. The data for a project is given in the table below :
Time in days Direct cost in ~
Activitiy
Normal Crash Normal Crash
1- 2 4 3 60 90
1- 3 2 1 38 60
1- 4 6 4 150 250
2- 4 5 3 150 250
2- 5 7 5 115 175
3- 4 2 2 100 100
4- 5 4 2 100 240
Indirect cost also varies as follows :
Days 15 14 13 12 ll lO 9 8 7 6
Cost (t) 600 500 400 250 175 100 75 50 35 25
Draw the network. Find the optimal cost and duration. Also find the minimum duration and the
associated cost. [R.T.M Nagpur U. B.Tech. (Mech.) June, 2007, G.N.D.U. B.Com.
Sept. , 2000; PU. MCom. , 2001 ; Delhi U. MBA, 1989]
(Ans. t 943, 10 days ; t 1,093, 8 days.)
12. The utility data fo r a network is given below :
Normal Crash
Activities
Time (days) Cost(~) Time (days) Cost(~)
1- 2 8 100 6 200
1- 3 4 150 2 350
2- 4 2 50 1 90
3- 4 5 100 1 200
Indirect cost is ~ 100 per day. Crash systematically and determine the optimum project duration and
cost. [VT.U. Karntaka B.E. Jan. , 2010]
13. Normal and crash durations with costs for various activities involved in a repair work are given in the
table below. The indirect cost per day is ~ 2,000
Time (days) Cost ( ~)
Activities
Normal Crash Normal Crash
1-2 6 2 4,000 12,000
1- 3 8 3 3,000 6,000
2-4 7 4 2,800 4,000
3-4 12 8 9,000 11 ,000
4-6 3 1 10,000 13,000
5-6 5 2 4,900 7,000
1322 •!• OPERATIONS RESEARCH

3- 5 7 3 l ,800 5,000
5- 7 ll 5 6,600 12,000
6-7 lO 6 4,000 8,400
(a) Draw network diagram for these activities indicating earliest and latest start and finishing times.
(c) What is the optimum time and cost?
(d) What is the minimum time and cost? [R.T.M. Nagpur B.E. (Mech.) Sept., 2010]
14. Find optimum schedule for a project for which data are given below :
Normal Crash
Activity
Time (hr.) Cost(~) Time (hr.) Cost~)
I -2 80 1,000 60 2,000
I - 3 40 1,500 20 350
2 - 4 20 500 10 900
2 - 5 100 1,000 50 4,000
3 - 4 50 1,000 10 2,000
4 - 5 30 800 10 1,000
Find and indicate cost slopes. [R. T.M. Nagpur U. B. Tech. Dec., 2004]
15. The required data for a small project consisting of different activities are given below :
Normal duration Normal cost Crash duration Crash cost
Activity Dependence
(days) ( ~) (days) ~)
A - 6 300 5 400
B - 8 400 6 600
C A 7 400 5 600
D B 12 1,000 4 1,400
E C 8 800 8 800
F B 7 400 6 500
G D, E 5 1,000 3 1,400
H F 8 500 5 700
(i) Draw the network and find out the normal project length and minimum project length.
(ii) If the project is to be completed in 21 days with minimum crash cost which activities should be
crashed and by how many days ? [R. T.M. Nagpur U. B. Tech. Dec., 2003]
16. The table below provides cost and time estimates of the seven activities of a project.
Activity Time estimates Direct cost estimates
(i-;) (weeks) (~ in thousands)
Normal Crash Normal Crash
1-2 2 10 15
1-3 8 5 15 21
2-4 4 3 20 24
3-4 1 7 7
3-5 2 1 8 15
4-6 5 3 10 16
5-6 6 2 12 36
(i) Draw the project network corresponding to normal time.
(ii) Determine the critical path and the normal duration and normal cost of the project.
(iii) Crash the activities so that the project completion time reduces to 9 weeks , with minimum
additional cost. [PT.U. B.Tech. (C.Sc.) 2000; Jammu U. B.E. (Mech.) 2004]
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1323
17. Table below shows jobs, their normal time and cost and crash time and cost estimates for a project.
Job Normal time (days) Cost(~) Crash time (days) Cost(~)
1-2 6 1,400 4 1,900
1-3 8 2,000 5 2,800
2-3 4 1,100 2 1,500
2-4 3 800 2 1,400
3-4 Dummy - - -

3-5 6 900 3 1,600

4-6 10 2,500 6 3,500
5-6 3 500 2 800
9,200
Indirect cost for the project is ~ 300 per day.
(i) Draw the network of the project.
(ii) What is the normal duration and cost of the project ?
(iii) If all activities are crashed, what will be the minimum project duration and corresponding cost ?
(iv) Find the optimal duration & minimum project cost.
[R.T.M Nagp ur U. B.E. (I.T.) 2009; /GNOU MBA , 2000; Karn. U. B.E. (Mech.) 1998]
(Ans. (ii) 20 days, ~ 15,200 (iii) 12 days, ~ 16,534.34
(iv) 17 days ; ~ 15,000.)
18. The following time-cost table (time in weeks, cost in rupees) applies to a project. Use it to arrive at
the network associated with completing the project in minimum time at minimum cost.
Normal Crash
Activity Time Cost Time Cost
1-2 2 800 1,400
1-3 5 1,000 2 2,000
1-4 5 1,000 3 1,800
2-4 500 500
2-5 5 1,500 3 2,100
3-4 4 2,000 3 3,000
3-5 6 1,200 4 1,600
4-5 3 900 2 1,600
(Ans. Crash activity 1-3 by 3 weeks, 4-5 by 1 week and 3-4 by 1 week,
giving an optimal 7-weeks duration project at a cost of~ 11 ,800.)
19. The utility data for a network are given below. Crash the network to minimum project duration and
determine the project cost for that duration.
Normal Crash
Activity
Time (weeks) Cost~) Time (weeks) Cost~)
0-1 5,000 5,000
1-2 3 5,000 2 12,000
1-3 7 11 ,000 4 17,000
2-3 5 10,000 3 12,000
2-4 8 8,500 6 12,500
3-4 4 8,500 2 16,500
4-5 5,000 5,000
[Jammu U. B.E. (ii/Jech.) 2004]
(Ans. 10 days, ~ 74,000.)
1324 •:• OPERATIONS RESEARCH
20. Consider a network problem for which the utility data are given in the table. Crash systematically the
activities and determine the optimum project duration and cost.
Normal Crash /'.I)
Activity t-.T t-.C -
Time (days) Cost(~) Time (days) Cost(~) t-.T
1-2 8 100 6 200 2 100 50
1-3 4 150 2 350 2 200 100
2-4 2 50 1 90 1 40 40
2-5 10 100 5 400 5 300 60
3-4 5 100 1 200 4 100 25
4-5 3 80 1 100 2 20 10
Total 580
Indirect cost = ~ 70 per day. (Ans. 11 days; ~ 1,760.)
21. The utility data for a network are given in the table. Crash the network to minimum possible duration.
and find the corresponding optimal project cost. The total normal cost of the project is~ 9,00,000 only.
Activity Duration (weeks) Cost slope
Normal Crash (thousands of~)
1-2 4 2 7
1-3 7 4 4
2-3 7 4 3
2-4 5 3 12
3-5 6 3 6
4-5 4 1 8
4-6 10 6 10
5-6 6 6 -

5-7 8 6 10
6-8 6 4 12
7-8 5 2 7
22. The activity data for a project are given in the table. Find the
(a) normal duration and the normal cost.
(b) optimal duration and the minimum total cost.
(c) minimum duration and the associated project cost.

Activity Normal Crash t-.T t-.C t-.C

-
t-.T
Time (weeks) Cost~) Time (weeks) Cost~)
1-2 8 7,000 3 10,000 5 3,000 600
1-3 4 6,000 2 8,000 2 2,000 1,000
2-3 0 0 0 0 0 0 0
2-5 6 9,000 1 11 ,500 5 2,500 500
3-4 7 2,500 5 3,000 2 500 250
4-6 12 10,000 8 16,000 4 6,000 1,500
5-6 15 12,000 10 16,000 5 4,000 800
5-7 7 12,000 6 14,000 1 2,000 2,000
6-8 5 10,000 5 10,000 0 0 -

7-8 14 6,000 7 7,400 7 1,400 200

7-9 8 6,000 5 12,000 3 6,000 2,000
8-9 6 6,000 4 7,800 2 1,800 900
Total 86,500 1,15,700
Indirect cost = ~ 1,000 per week. [P U. MBA, 2000]
(Ans. (a) 41 days; ~ 1,27,500 (b) 30 days; ~ 1,25,700 (c) 25 days;~ 1,32,700.)
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1325
23. (a) The following data pertains to a CPM network. It is desired to compress the project to the least
possible duration day by day and estimate the extra cost.
0 ~ ~ ~~s~e
1-2 3 2 700
1-3 7 4 200
2-3 5 3 100
2-4 8 6 200
3-4 4 2 400
(b) If there is an indirect cost of~ 800 per day, what will be the least project duration and the associated
cost? (Ans. (a) 8 days, ~ 2,100;
(b) 9 days, ~ 8,400.)
24. A small maintenance project consists of jobs in the table below. With each job is listed its normal time
and a minimum or crash time in days. The cost in~ per day of each job is also given.
Job Normal Minimum (crash) Cost/day
i-j duration duration (~)
1-2 9 6 20
1-3 9 5 25
1-4 15 10 30
2-4 5 3 10
3-4 10 6 15
4-5 2 40
(a) What is the normal project length and the minimum project length ?
(b) Determine the minimum crashing cost of schedules ranging from normal length down to , and
including, the minimum length schedule. That is, if L = length of the schedule, find the costs of
schedules which are L, L - 1, L - 2 and so on.
(c) Overhead costs total ~ 60 per day. What is the optimum length schedule in terms of both crashing
and overhead cost? List the scheduled duration of each job for your solution.
[PU. B.E. (Elect.) 1999; 1998; JGNOU MBA, 1999]
(Ans. (a) 20 days, 12 days;
(b) 12 days, Cc = ~ 335, CT = ~ 1,055
(c) 15 days.)
25. The utility data for a network are given below. The activity durations are in days and the cost in rupees.
The indirect cost per day is ~ 250. Determine the optimum project schedule.
Activity Norma l Crash
Time (days) Direct cost (~) Time (days) Direct cost ( ~)
1- 2 4 600 2 800
1-3 2 500 1 900
2--4 6 1,000 3 1,750
2- 5 4 1,200 4 1,200
3- 5 5 1,000 3 1,200
3- 7 10 2,500 5 3,500
4- 5 5 1,300 5 1,300
5- 6 8 2,000 6 2,100
5- 7 0 0 0 0
6- 8 7 2,000 7 2,000
7- 8 8 1,600 5 1,780
[Kuru. U. B.Tech. (Mech.) 1992]
(Ans. Crash 1-2 by 2 days, 2-4 by 1 day, 5-6 by 2 days;
~ 13,000, 25 days.)
26. Table below gives the data for a network of a product development project. The marketing department
realises that if the project is introduced in the market ahead of its completion date, additional profits
are available. What would be the additional cost to crash the project by 6 weeks?
1326 •:• OPERATIONS RESEARCH

Activity Time Cost

Normal (weeks) Crash (weeks) Normal ( ~) Crash ( ~)
10-20 3 2 2,000 4,500
10-30 6 5 2,000 5,000
- 4 9,000
20-40 6 5 4,000 9,000
20-50 10 8 9,500 12,000
7 15,000
30-70 9 8 7,000 8,000
7 10,500
30-80 10 8 9,500 12,000
7 15,000
40-60 6 5 3,500 4,000
40-90 6 4 2,000 4,000
3 7,000
60-11 0 7 6 3,000 4,000
5 8,000
70- 100 Dummy
80-1 00 5 4 3,500 4,000
2 8,000
90-11 0 Dummy
100-1 20 6 3 6,000 9,900
110-120 5 4 2,000 4,000
120-130 2 1 2,500 4,000
(Ans.~ 17,100.)
27. Following table gives the activities in a construction project and other relevant information:
Activity Predecessor Time (days) Direct cost ( ~)
Normal Crash Normal Crash
A 4 3 60 90
B 6 4 150 250
C 2 38 60
D A 5 3 150 250
E C 2 2 100 100
F A 7 5 115 175
G D,B, E 4 2 100 240
Indirect costs vary as follows :
Days 15 14 13 12 11 10 9 8 7 6
Cost(~) 600 500 400 250 175 100 75 50 35 25
(a) Draw an arrow diagram for the project.
(b) Determine the project duration which will return in minimum total project cost.
28. A Project has 7 activities . The relevant data are given below. [PU. M Com., 2001]
Normal duration Crash duration Normal cost Crash cost
Activity D ep endence
(day s) (days) ( ~) ( ~)
A 7 5 500 900
B A 4 2 400 600
C A 5 5 500 500
D A 6 4 800 1,000
E B, C 7 4 700 1,000
F C, D 5 2 800 1,400
G E, F 6 4 800 1,600
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1327
The project manager wishes to complete the project in the minimum possible time. However, he is not
authorised to spend more than t 5,000 on crashing. Suggest the least cost schedule. Assume that there
is no indirect or utility cost.
[H.P U. B. Tech. (Mech.) Dec., 2009; P U. B.E. (Mech.) 1995]
(Ans . 14 weeks; cost: t 4 ,600.)
29. The time and cost estimates of different activities of a project and their precedence relationships are
given below.
Activity Preceding Time (weeks) Cost(~)
Normal Crash Normal Crash
A 6 4 10,000 14,000
B 4 3 5,000 8,000
C A 3 2 4,000 5,000
D B 8 3 1,000 6,000
E B 14 6 9,000 13,000
F C,D 8 4 7,000 8,000
Overhead costs amount to ~ 1,000 per week.
(i) Draw the network and show the critical path.
(ii) Crash the network to the minimum possible duration. What will be the critical activities after such
crashing? [H.P U. B.E. (Mech.) 2008; /GNOU MBA , 2003]
(Ans. (i) B-D-F (ii) 10 weeks; A-C-F, B-D-F.)
30. The basic cost-time data fo r jobs in a project are given below.
Normal Crash Crashing cost per
Job
Time (days) Cost(~) Time (days) Cost ( t ) day (Vday)
A 3 140 2 210 70
B 6 215 5 275 60
C 2 160 240 80
D 4 130 3 180 50
E 2 170 250 80
F 7 165 4 285 40
G 4 210 3 290 80
H 3 110 2 160 50
The activities dependencies are as below:
(i) A , B , C are starting activities, (ii) Activities D , E and F can start when A is completed, (iii) C can
start after B and D are completed, (iv) H can start after C and E are completed, (v) G , H and F
are final activities. Draw the network and indicate the critical path and the total time of completing
the project. If the project is to be completed in 8 days, what is the minimum cost to be incurred?
Indicate the cheapest schedule.
[P U. B.B.A., 2002; M.B.A ., 2001; Kuru. U. B. Tech. (Ind!. Engg. ) 1997]
31. A list of activities along with their precedence requirement, normal time and cost and crash time and
cost is given in the table below.
Immediate Normal Crash
Activity
predecessor Time (days) Cost ( t ) Time (days) Cost ( t )
A 4 300 2 450
B A 9 600 5 960
C A 6 620 4 780
D B 4 320 3 395
E B, D 6 1,440 3 1,980
F C, D 4 350 2 470
G E, F 3 270 2 335
1328 •:• OPERATIONS RESEARCH
(a) Draw the network.
(b) What are the normal and crash costs and durations of the project ? How many days will be saved and
what will be the project cost if all the activities are crashed to the maximum possible extent?
It is expected that earlier completion of the project will result in additional profit oft 50 per day. The
indirect cost is t 80 per day.
(c) Analyse the project for optimum duration cost. [Karn. U. B.E. (Mech.) 1994]
32. A maintenance foreman has given the following estimate of times and costs for jobs in a motor overhaul
project:
Normal Minimum
Job Description Preceding Duration Cost Duration Cost
job (hours) (t) (hours) (t)
A Remove and disassemble 8 80 6 100
motor
B Clean and paint frame A 7 40 4 94
C Rewind armature A 12 100 5 184
D Replace bearings A 9 70 5 102
E Assemble and instal motor B, C, D 6 50 6 50
(a) Assume that the jobs can be done at either normal or fast pace, but not any pace in-between. Plot
the relationship between project completion time and minimum total project cost.
(b) Assume that a linear cost relationship exists between job duration and job cost and that job may be
scheduled not only at the normal and minimum durations but at any integer duration in-between.
With overhead cost oft 25 per hour plot the cost-time relationship.
[PU. B.E. (Elect.) 1997]
33. The following data refer to various activities of a project. Determine the least time schedule .
Normal Crash
Activity Preceding Following Time Cost Time Cost
activity activity (days) ~) (days) ~)
A D,F 4 1,000 3 2,000
B G 7 2,800 5 5,200
C E,H 3 500 2 1,000
D A G 5 2,000 3 3,600
E C G 2 1,600 2 1,600
F A 10 2,300 8 3,500
G B, D,E 7 2,000 5 4,800
H C 2 1,000 2,000
34. The following table gives the activities in a construction project and other relevant information :
Activity Immediate Time (months) Direct cost ( t '000)
Predecessor Norma l Crash Normal Crash
A 4 3 60 90
B 6 4 150 250
C 2 1 38 60
D A 5 3 150 250
E C 2 2 100 100
F A 7 5 115 175
G D,B,E 4 2 100 240
Indirect costs vary as follows :
Month 15 14 13 12 11 10 9 8 7 6
Cost~) 600 500 400 250 175 100 75 50 35 25
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1329
(a) Draw an arrow diagram for the project.
(b) Determine the project duration which will result in minimum total project cost.
[G. N. D.U. B.Com. Sept., 2000; Delhi U.MBA, 1989; Osmania MBA, 1990]
[Ans. 10 months, ~ 943.]
35. The following is the table showing details of a project :
Normal Crash
Task Immediate Time (days) Cost(~) Time (days) Cost( ~)
predecessor
A - 10 2,000 7 3,000
B - 8 1,500 6 2,000
C B 5 800 4 1,400
D B 6 1,100 4 1,500
E B 8 900 5 1,500
F E 5 500 4 800
G A,D, C 12 300 8 400
Indirect cost is ~ 40 per day. Find the optimum duration as well as the least duration and
the corresponding costs. [H.P U. B.Tech. (Mech.) June, 2010]
(Ans. T0 = 22 days, C0 = ~ 8,080; Tc= 18 days, Cc=~ 9,620.)
36. The activities of a project are tabulated below with immediate predecessors, normal and crash time as
well as cost.
Activity Immediate Normal Crash
Predecessor
Cost ( ~) Time (Days) Cost(~) Time (Days)
A - 200 3 400 2
B - 250 8 700 5
C - 320 5 380 4
D A 410 6 800 4
E C 600 2 670 1
F B,E 400 6 950 1
G D 300 11 400 9
H B,E 550 12 1,000 6
(a) Draw the network corresponding to normal time
(b) Determine the critical path and normal duration and cost of the project.
(c) If the activities are fully crashed, what is the least project time and the corresponding cost ?
[R.T.M Nagpur U. B.Tech. June, 2005; PT.U. B.Tech. (Mech.) 2009]

14.15 RESOURCE SCHEDULING

During the development of PERT and CPM networks we have generally assumed that
sufficient resources are available to perform the various activities. At a certain time the demand
on a particular resource is the cumulative demand of that resource on all the activities being
performed at that time. Going according to the developed plan, the demand on a certain type of
resource may fluctuate from very high at one time to a very low at another. If it is a material or
unskilled labour which has to be procured from time to time, the fluctuation in demand will not
much affect the cost of the project. But if it is some personnel who cannot be hired and fired
during the project or machines which are to be hired for the total project duration, the fluctuation in
their demand will affect the total project cost due to high idle times. To reduce the idle period, the
activities on non-critical paths are shifted by making use of the floats , so as to make the demand
of resources as uniform as possible.
Further, in some situations we may be faced with a demand for some critical resource
which may be limited in supply. For example, the only bulldozer available may be needed for two
activities at two places at a time. This makes the schedule infeasible and calls for a re-examination
with the object of generating an alternate plan with feasible scheduling of the limited resource.
1330 •:• OPERATIONS RESEARCH
Thus the object of resource scheduling is two-fold: it aims at bringing down the costs and
at the same time reduces pressure on the limited resources in conflicting demands.
Depending upon the type of constraint the resource scheduling situation may be of two types:
(a) The constraint may be the total project duration. In this case the resource scheduling
only smoothens the demand on resources in order that the demand of any resource is as uniform
as possible.
During the smoothing process, the start times of the activities on the non-critical paths are
shifted, while the project duration remains unchanged. In this case the resource scheduling is
called resource smoothing.
(b) The second type of constraint may be on the availability of certain resources. Here the
project duration may be extended but the demand on certain specified resources should not go
beyond the specified level. This operation of resource scheduling is called 'Resource Levelling' .
14.15-1 Resource Smoothing
The first step in resource smoothing is to determine the maximum requirement. One way
is to draw the time-scaled version of the network and assign resource requirements to activities.
Then, below the time-scaled network, the cumulative resource requirements for each time unit are
plotted. The result is a 'Load Histogram ' . The load histogram which is also known as 'force curve '
may be plotted on the basis of early start times or the late start times of the activities. These load
histograms establish the framework within which smoothing must occur. Lastly, the start times of
non-critical activities first having largest float are shifted to smoothen the requirement of resources.
EXAMPLE 14.15-1.1
A network with the following activity durations and manpower requirement is given. Analyse
the project from point of view of resources to bring out the necessary steps involved in the analysis
and smoothing of resources.
Activity 1-2 2-3 2-4 3-5 4-6 4-7 5-8 6-8 7-9 8-10 9-10
Duration (weeks) 2 3 4 2 4 3 6 6 5 4 4
No. of men required 4 3 3 5 3 4 3 6 2 2 9
E=5 E=7
L=8 L=10

E =20
L= 20
3
4

7 - - -5- - - - 9
E=9 E=14
L=11 L=16
Fig.14.83

Solution
The earliest and latest occurrence times of events have been calculated and are indicated
along the nodes in Fig. 14.83. The critical path is identified as 1-2-4-6-8-10, with the total
project duration of 20 weeks. In the time-scaled version of the network which is also called squared
network, first of all the critical path is drawn along a straight line.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1331

6 3
----,
3M I
I

6
6M
I
4 2 I
(a)
9M

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
No.of~~~~~~~~~~~~~~~~~~~~
men
reqd .
I I 4 4 16 I I I I I I I I I I I I I I I I I I
6 6 8 12 10 10 8 11 11 11 8 15 15 11 11 2 2

:hi;~,.-~ " ~
} :~ (b)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(c) Time (Weeks)---+-
Load histogram
Fig. 14.84 (a), (b), (c)
Then the non-critical paths are added as shown in Fig. 14.84 (a). The resource requirements
are indicated along the arrows. Below the squared network are shown the loading chart
[Fig. 14.84 (b)] and the load histogram [Fig. 14.84 (c)]. This is based on the earliest start times,
and is obtained by vertically summing up the manpower requirements for each week. We observe
that the maximum demand of 15 men occurs in the 15th and 16th weeks.

3 6
3M 3M

6 4
8 10
I
6M 2M
I
I

:1 3 1 5 4
- 7 9
(a) 4M 2M 9M

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
No. of~~~~~-~~~~~-~~~~~-~~~~~~

reqd.
I I I I I I I I I I I I I I I I I I I I
men 14 4 6 6 6 8 8 3 7 7 9 11 11 11 11 11 11 11 11 11
(b)
Fig. 14.85. (a), (b)
To smoothen the load, the activities will have to be shifted depending upon the floats. Path
4-7-9-10 has a float of two weeks, and the activities 7-9 and 9-10 are shifted to the right so that
the start of each is delayed by two weeks. Similarly, activity 5-8 can be shifted to the right so
that it starts on 11th day instead of starting on 8th day. After making the necessary shifting, the
network is drawn as shown in Fig. 14-85 (a). The loading chart for this network drawn in Fig.
14.85 (b) indicates that the maximum manpower required is 11 men. Thus with the new schedule,
the same project can be accomplished in the same duration of 20 weeks by 11 men as compared
to 15 for the previous schedule.
EXAMPLE 14.15-1.2
Consider the network shown in Fig. I 4.86, having 14 activities. Durations of the activities are
marked along their arrows. Table 14. l O shows the requirement of masons (M) and labourers (L)
for each activity. Analyse the project and smoothen the requirement of the resources.
1332 •:• OPERATIONS RESEARCH
E=S E=9
L = 10 L = 14

E=4
L = 11
Fig.14.86

TABLE 14.10
Activity Duration Masons (M) Labourers (L)
(weeks)
1-2 2 1 2
2-3 3 2 2
2-4 4 3 2
2-5 2 1 3
3-10 4 2 2
4-6 2 3 2
4-7 4 3 3
5-9 4 5 3
6-8 2 1 2
7-9 5 I 3
8-9 3 -
4
9-11 2 1 1
10- 11 3 1 2
11-12 2 1 2
Solution
The earliest and latest occurrence times for the events are marked along their nodes. Critical
path is 1-2-4-7-9-11-12 and the project duration is 19 weeks.
Fig.14.87 (a) represents the time-scaled version of the network, assuming early start times
for the activities. The activities along the critical path are arranged along horizontal line. The
dotted lines show the total float of each activity. Durations and requirements of masons (M) and
labourers (L) for each activity are marked along the activity arrows. The loading chart below the
time-scaled diagram shows the total numbers of masons as well as labourers required each day.
It is seen that the requirement of these resources is not uniform; for masons it is as high as 13 on
7th and 8th day, 10 on 5th and 6th day and as low as 1 from 13th to 19th day. By inspection we
find that activities 2-5 and 5-9 have a total float of 7 days. The start time of activity 5-9 can be
shifted by 7 days so that it starts on 12th day instead of 5th day. Fig. 14.88 represents the modified
network along with the loading chart.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1333

3 2
4L
5
1M, 3L
4 I 7
l----------------------
5M , 3L
(a)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
M 1 1 6 6 10 10 13 13 6 5 2 2 1 1 1 1 1 1 1
L 2 2 7 7 7 7 10 10 7 7 9 9 7 3 3 1 1 2 2
(b)
Fig. 14.87 (a), (b)
3 3 5
2M , 2L

3 2
4L
5
1M, 3L

4
5M , 3L

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
M 1 1 6 6 5 5 8 8 6 5 2 7 6 6 6 1
L 2 2 7 7 4 4 7 7 7 7 9 12 10 6 6 1 1 2 2
(b)
Fig. 14.88 (a), (b)

From Fig. 14.88 we find that the demand for masons has decreased from 13 to 8 on the
7th and 8th days. However, the demand of labourers has increased from 9 to 12 on the 12th day.

2 3

3M , 2L 1M, 3L
7 4
--------------~----~
5M, 3L
(a)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
M 6 6 5 5 8 8 6 5 2 7 6 6 6
L 2 2 7 7 4 4 7 7 7 7 5 8 10 10 10 1 1 2 2

(b)
Fig. 14.89 (a), (b)
1334 •:• OPERATIONS RESEARCH
Next, the start time of activity 8-9 can be shifted from 11th day to 13th day by utilising the
float available for 2 days. This is shown in Fig. 14.89 wherein the requirement of labourers has
also decreased from 12 to 10. The requirement of resources is thus smoothed without affecting
the project duration.
14.15-2 Resource Levelling
In the load smoothing operation, the duration of the project was kept constant and the non-
critical activities were shifted within the available floats to smoothen the resource requirements.
In resource levelling, the constraint is on the availability of resources while the project duration
can be extended. In this method the activities are so rescheduled that the maximum requirement
of resources does not cross their availability. However, the available resources should not be
less than the maximum number or quantity required by any activity of the project otherwise that
activity cannot be completed. Three types of resource levelling procedures are usually followed.
I. Variable Resource Levelling : As already discussed, the requirement of resources (say
manpower) over the project duration is usually non-uniform [Fig. 14.90 (a)]. To make it uniform,
the usual procedure is to engage a reasonable number of workers at the beginning and then to
increase it gradually, reaching a peak near the end of the project. Once the maximum is reached,
there is a gradual reduction of the work force. This is shown in Fig. 14.90 (b).

t ,:;
-0 0-
Ql
0 ~
z Ql
E

Project duration - - .
(a)

t -0
~
C: 0
Ql -

-
Ei Ql
~ >,
zo=Ol ::s
0
Ol

Project duration - - .
(b) Variable resource levelling

Project duration - - .
(c) Combined resource levelling

Fig. 14.90 (a), (b), (c)

 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1335
2. Fixed Resource Levelling : Here, the number of workers remains constant throughout the
project duration. As the requirement is highly fluctuating, there can be both excessive overtime
as well as idle work force at different times. The aim, here, is to select the optimum number of
workmen so that both overtime as well as unproductive standby persons are minimised.
3. Combined Resource Levelling : Here, fixed no. of persons are initially engaged and to
satisfy the increasing needs, the number is increased in accordance with the pattern of variable
resource levelling. This is represented in Fig. 14.90(c).
Thus in resource levelling process, whenever the resources available are less than their
maximum requirement, the only recourse is to delay the activity which has the largest float. If two
or more activities require the same resources, then the activity with minimum duration is chosen
for resource allocation. Whenever there is a surplus resource, it should be shifted elsewhere in
such a manner as to maximize its utilisation.
14. 15-3 Analogy of Queuing Phenomenon to Resource Allocation Problem
The resource allocation problem can be assumed to be analogous to the queuing problem.
In a queuing problem there is a service station; customers arrive and form a queue at the service
station and are selected for service according to a specific service discipline or rule, e.g. , first come,
first served. In the resource allocation problem, the resources e.g. , men, machines, etc. , constitute
the service station. Activities 'arrive' and form queue, waiting to be taken up for execution. Float
provides the rule by which they are to be selected for execution; activity with the least float to be
given top priority, activities with higher floats to be given lesser priorities.
There may be time when the resources are idle but there is no activity in the queue. At
other times, there may be too many activities in the queue and all may not be taken at the same
time. Therefore, some of them have to be delayed. If the delay is within the free float, it would
not affect the subsequent activities; if it is more than the free float, it would cause repercussions
on the subsequent activities.
At each time period, therefore, it is to be ascertained if there are activities in the queue and
resources are also available. If yes, the activities will be allocated to the resources. If either no
activity is to be taken up or no resource is idle, we may simply skip to the next period. A heuristic
programme based on the above discussion can be developed to solve resource allocation problems.
EXAMPLE 14.15-3.1
The activities in a project along with their durations are given below. Each activity requires
one labourer. Analyse the network from the point of view of levelling of resources so that the project
is completed in the shortest possible time.
Activity (i-j) 1-2 1-3 1-5 2-3 2-6 3-4 4-7 5-6 6-7
Duration (days) JO 6 4 0 8 JO JO 6 6
[M.D. U. Rohtak B.E. (Mech.) Dec., 2006]

E = 10 E =20
L = 10 L = 20

E=O E =30
L=O L = 30

Fig.14.91
1336 •:• OPERATIONS RESEARCH
Solution
The heuristic programme to be used for solving the problem consists of the following steps:
Step 1 : Draw the project network and identify the critical path. This is shown in Fig. 14. 91.
The critical path is 1-2-3-4-7.
Step 2 : Constrnct the network analysis table (Table 14.11). The labourers required for each
activity are shown under the M-column. Man-days required by each activity are noted under the
M x D-column.
TABLE 14.11
Network Analysis Table (NAT)
Activity Duration Men Man-days Start Finish Float
(i-j) (D) (M) (MxD) E L E L
1-2* 10 1 1 X 10 = 10 0 0 10 10 0
1-3* 6 1 1X6=6 0 4 6 10 4
1-5* 4 1 1 X 4 = 4 0/6 14 4/10 18 14/8
2-3* 0 0 OxO=O 10 10 10 10 0
2-6* 8 1 1 X 8 = 8 10 16 18 24 6
3-4* 10 1 lxlO=lO 10 10 20 20 0
4-7* 10 1 l x lO=lO 20 20 30 30 0
5-6* 6 1 1 X 6 = 6 4/10/18 18 10/16/24 24 14/8/0
6-7* 6 1 1 X 6 = 6 18/24 24 24/30 30 6/0
The total man-days requirement is 60 and since project duration is 30, the no. of men required
to complete the project are 60/30 = 2.
Step 3 : Construct resource allocation table and loading chart : Table 14.12 shows the
resource allocation table followed by the loading chart. Their explanation is given below.
TABLE 14.12
Resource Allocation Table (RAT)
Halting Available Activities in the queue Allocated to
time resource i-j M x D Float Priority resource
0 Rl , R2 1-2 lxlO=lO 0 I Rl
1-3 1X6=6 4 II R2
1-5 1X4=4 14 III
6 R2 1-5 1X4=4 8 I R2
10 Rl , R2 2-6 1X8=8 6 II R2
3-4 l xlO =lO 0 I Rl
5-6 1X6=6 8 III
18 R2 5-6 1X6=6 0 1 R2
20 Rl 4-7 lxlO=lO 0 I Rl
24 R2 6-7 1X6=6 0 I R2
Loading Chart

::t\1_+;t:;~+~·-~+'.·TI
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Fig.14.92
Halting time O: Halt at a time when there are both available resources and queuing activities.
At time 0, both the labourers denoted by resources Rl and R2 are available. Activities 1-2, 1-3
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) +!• 1337
and 1-5 each have zero earliest start times. As their floats are 0,4 and 14, the priorities assigned to
them for execution are I, II and III respectively. Resource RI is, accordingly, allotted activity 1-2,
which he will perform in 10 days. This is shown in the loading chart (Fig.14.92). Activity 1-3 is
allocated to resource R2, which he will perform in 6 days; this is shown in the loading chart. ctivity
1-5 cannot be taken at time zero and has to be delayed or floated out. The earliest it can possibly
be taken is time 6 when resource R2 will become free, as seen from the loading chart. Activities
1-2 and 1-3 have been allotted and are marked (*) in the network analysis table. Activity 1-5 is
floated out in that table by changing its earliest start time from O to 6, its earliest finish time from
4 to 10 and its float from 14 to 8. Delaying activity 1-5 for start by 6 days may have repercussions
on the following activities 5-6 and 6-7 and it has to be seen whether they also need to be floated
out. Since activity 1-5 now finishes at time 10, activity 5-6, cannot start at time 4 and, therefore,
its earliest start time is changed to 10. Consequently, its earliest finish time is changed to 16 and
float decreased to 8 in the NAT. As the earliest start time of the successor activity 6-7 is 18, there
are no repercussions on this activity. As seen from the loading chart, next halting time is 6.
Halting time 6 : Resource available is R2, activity due to be taken up is 1-5 and is allotted
to this resource for 4 days. This is shown in the loading chart. Activity 1-5 is marked(*) in NAT.
Halting time 10 : Resources RI and R2 are available. Activities having earliest start time
10 are 2-3, 2-6, 3-4 and 5-6. However, activity 2-3 is dummy; requires no resources and need
not be considered and is marked (*) in NAT. The remaining activities have floats of 6, 0 and 8
respectively and are, therefore, assigned priorities II, I and III in the resource allocation table
(RAT) 14.12. Accordingly, activity 3-4 having duration 10 days is allocated to resource R 1 and
activity 2-6 requiring 8 days for completion is allotted to resource R2. This is shown in RAT as
well as loading chart (LC).
The next halting time is 18. Activities 2-6 and 3-4 are marked (*) in NAT and activity
5-6 is floated out to earliest start time 18. The earliest finish time of this activity is changed to 24
and float to 0. Floating out of activity 5-6 has repercussions on the succeeding activity 6-7. Its
earliest start time is increased to 24, its earliest finish time to 30 and float is decreased to zero.
Halting time 18 : Resource available is R2, activity due to be taken up this time is 5-6 and
is loaded on resource R2 for 6 days. This is shown in RAT as well as LC. Activity 5-6 is marked
(*) in NAT.
Halting time 20 : Resource available is RI, activity 4-7 can be taken up at this time. Its
man-days are 10 and is allocated to resource RI for 10 days. This is shown in RAT as well as
LC. This activity is then marked (*) in the NAT. Next halting time is 24.
Halting time 24 : Resource available is R2. Activity due to be started at time 24 is 6-7.
Its duration is 6 days. Resource R2 is, therefore, allotted activity 6-7 for 6 days. This completes
the resource allocation within 30 days. There is no delay in the project. The project can, thus, be
completed in 30 days with limited resources (2 labourers) if the activities are allocated as shown in
the LC.
Note. The following points are worth noting for developing the algorithm for resource
allocation :
1. Halt when both resources and activities are available.
2. Prior to allocation at a halt, update the E.S., E.F. and float of the activities not allocated at
earlier halt time and their succeeding activities. The repercussions may have to be traced
right upto the last event.
3. (a) Priorities are assigned on the basis of floats e.g., 1st priority to activity with least
float, 2nd to the activity with the next higher float and so on.
(b) In case of tie in floats, assign priorities on the basis of man-days of the activities e.g.,
1st priority to the activity with highest M x D.
(c) In case of tie in man-days even, assign 1st priority to the activity with highest M
(gang size).
(d) In case of tie in M's even, assign 1st priority to the activity with lower i, where i is
the tail event number of the activity.
1338 •!• OPERATIONS RESEARCH
4. When an activity requires more than one man, it may so happen during allocation that
the activity requires more number of persons than that available at the halt time under
consideration. In such cases, the resources are allocated to the job with next priority for
which they are sufficient.
5. During the floating out of activities, the float of an activity may go negative which means
that the project duration is going to be extended beyond the critical path. Once the float
of an activity becomes negative, therefrom the float criterion for ascertaining priorities
is invalidated. The priorities are then fixed on the basis of M x D, gang size and lower i
criteria respectively.
These points are made clear in the next examples.
EXAMPLE 14.15-3.2
Activities, their durations and crew sizes required to implement them are given below:
Activity (i-j) 1-2 1-3 1-5 2-3 2-6 3-4 4-7 5-6 6-7
Duration (days) 10 6 5 0 8 10 10 7 5
Crew size (M) l 2 3 0 l 2 3 l 2
Schedule the project when only 3 men are available for executing it.
Solution
It consists of the following steps:
Step 1 : Draw the project network and identify the critical path. This is shown in Fig. 14.93.
Critical path is 1-2-3-4-7.
Step 2: Construct the network analysis table. This is done in Table 14.13.
E = 10 E = 20
L = 10 L = 20

E=O E= 30
L=O L= 30

Fig. 14.93

TABLE 14.13
Network Analysis Table
Activity Duration Men Man -days Start F in ish F loat
I I I I
(i-j) (D) (M) (M X D) E L E L
1-2* 10 1 1X 10 = 10 0 0 10 10 0
1-3* 6 2 2 X 6 = 12 0 4 6 10 4
1-5* 5 3 3 X 5 = 15 0/6/10/18/20/30 13 5/11/15/23/25/35 18 13/7/3/-5
2-3* 0 0 Ox O= O 10 10 10 10 0
2-6* 8 1 1X 8=8 10 17 18 25 7
3-4* 10 2 2 X 10 = 20 10 10 20 20 0
4-7* 10 3 3 X 10 = 30 20 20 30 30 0
5-6* 7 1 1X 7=7 5/11/15/23/25/35 18 12/18/22/30/32/42 25 13/7/3/-5
6-7* 5 2 2 X 5 = 10 18/22/30/32/42 25 23/27/35/37/47 30 7/3/-5
Step 3 : Construct resource allocation table and loading chart.
Table 14.14 represents the resource allocation table and Fig. 14.94 shows the loading chart.
The procedure to draw them is explained in example 14.15-3 .1.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1339
TABLE 14.14
Resource Allocation Table (RAT) with 3 M en
Halting Available Activities in Allocated
time resource the queue to resource
i-i M x D Float Priority
1-2 l x lO = lO 0 I Rl
0 Rl , R2, R3 1-3 2 X 6 = 12 4 II R2, R3
1-5 3 X 5 = 15 13 III
6 R2, R3 1-5 3 X 5 = 15 7 I -

10 Rl , R2, R3 1-5 3 X 5 = 15 3 II -
2-6 1X8=8 7 III R3
3-4 2 X 10 = 20 0 I Rl , R2
18 R3 1-5 3 X 5 = 15 - I -

20 Rl , R2, R3 1-5 3 X 5 = 15 - II
4-7 3 X 10 = 30 - I Rl, R2, R3
30 R l , R2, R3 1-5 3 X 5 = 15 - I Rl , R2, R3
35 Rl , R2, R3 5-6 1X 7=7 - I R2
42 Rl, R2 6-7 2 x 5 = 10 - I Rl , R2
Since after time 35 days, three persons are not required to complete activities 5-6 and
6-7, one crew, say R3 can be relieved from the job. The project is delayed from 30 days to 47 days
if 3 crews only are available. The activities should be allocated to the crew as per the schedule of
Fig. 14.94. Shaded portions show the rest periods of the crew.

0 56 10 15 1820 25 30 35 4042 45 47
Fig.14.94
EXAMPLE 14.15-3.3
A project with the following activities, durations and manpower requirements is given:
Activity 1-2 1-3 1-4 2-5 2-6 3-7 4-8 5-9 6-9 7-8 8-9
Duration (days) 2 2 0 2 5 4 5 6 3 4 6
Manpower
requirement 5 4 0 2 3 6 2 8 7 4 3
E=7
L = 13

E = 16
L = 16

Fig.14.95
(a) Draw the network diagram of the project indicating the earliest start, earliest.finish, latest
finish and float of each activity.
1340 •!• OPERATIONS RESEARCH
(bJ There are 11 persons who can be employed for this project. Carry out the appropriate
manpower levelling so that the fluctuation of work force requirement from day-to-day is
as small as possible. [IC.WA. June, 1979]
Solution
It consists of the following steps:
Step l Draw the project network and identify the critical path.
Project network is drawn in Fig. 14.95. Critical path is 1-3-7-8-9.
Step 2 Construct the network analysis table. This is done in table 14.15.
TABLE 14.15
Network Analysis Table
Activity Duration Men Man-days Start Finish Float
(i-jJ (DJ (M) (M X DJ E L E L
1-2* 2 5 5 x 2 = 10 0 6 2 8 6
1-3* 2 4 4 X 2=8 0 0 2 2 0
1-4* 0 0 O x O= O 0 5 0 5 5
2-5* 2 2 2 X 2=4 2/5 8 4/7 10 6/3
2-6* 5 3 3 X 5 = 15 2 8 7 13 6
3-7* 4 6 6 X 4 = 24 2 2 6 6 0
4-8* 5 2 2 x 5 = 10 0 5 5 10 5
5-9* 6 8 8 X 6 = 48 4/7/10 10 10/13/16 16 6/3/0
6-9* 3 7 7 X 3 = 21 7/10/16 13 10/13/19 16 6/3/- 3
7-8* 4 4 4 X 4 = 16 6 6 10 10 0
8-9* 6 3 3 X 6 = 18 10 10 16 16 0
Step 3 : Construct resource allocation table and loading chart.
Table 14.16 represents the resource allocation table and Fig. 14.96 shows the loading chart.
The procedure to draw them is explained in example 14.15-3 .1.
It is apparent from the loading chart that five persons remain idle from 8th to 10th day and
four persons remain idle from 17th to 19th day. The Project cannot be completed in the normal
time duration of 16 days and has to be delayed by 3 days if 11 persons only are to be employed.
TABLE 14.16
Resource Allocation Table
Halting Available Activities in the queue Allocated to
time resource resource
(no.) i-j M x D Float Priority
1-2 5 x 2 = 10 6 III SM
0 llM 1-3 4 X 2=8 0 I 4M
4-8 2 x 5 = 10 5 II 2M
2 9M 2-5 2 X 2=4 6 III -

2-6 3 X 5 = 15 6 II 3M
3-7 6 X 4 = 24 0 I 6M
5 2M 2-5 2 X 2=4 3 I 2M
6 6M 7-8 4 X 4 = 16 0 I 4M
7 SM 5-9 8 X 6 = 48 3 I -
6-9 7 X 3 = 21 6 II -
5-9 8 X 6 = 48 0 1 8M
10 llM 6-9 7 X 3 = 21 3 III -
8-9 3 X 6 = 18 0 II 3M
16 llM 6-9 7 X 3 = 21 - I 7M
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1341

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

I11 I11 I11 I11 I11 I11 I 111 e I e I e I11 I11 I11 I11 I11 I11 I 41 4 14 I
Fig. 14.96. Loading chart

EXAMPLE 14.15-3.4
For a project consisting of several activities, the durations and required resources for
carrying out each of the activities and their availabilities are given below.
(a) Draw the network, identify critical path and compute the total float for each of the
activities.
(b) Find the project completion time under the given resource constraints.
Resources required
Activity Equipment Op erators Duration (days)
1-2 X 30 4
1-3 y 20 3
1-4 z 20 6
2-4 X 30 4
2-5 z 20 8
3-4 y 20 4
3-5 y 20 4
4-5 X 30 6
Resources availability :
No. of operators = 50,
equipment X = 1,
equipment Y = 1,
equipment Z = 1. [C.A. (Final) Nov., 1985]

E=4
L=4

E = 14
L= 14

Fig. 14.97

Solution
It consists of the following steps :
Step 1 : Draw the project network and identify the critical path.
Project network is drawn in Fig. 14.97. Critical path is 1-2-4-5.
Step 2 : Construct the network analysis table.
This is done in table 14.17.
1342 •!• OPERATIONS RESEARCH

TABLE 14.17
Network Analysis Table
Ac- Dura- Men Man-days Equip .
tivity tion Start F inish Float
(i-j) (D) (M) (M X D) E L E L
1-2 4 30 30 X 4 = 120 X 0 0 4 4 0
1-3 3 20 20 X 3 = 60 y 0 1 3 4 1
1-4 6 20 20 X 6 = 120 z 0/3 2 6/9 8 2/-1
2-4 4 30 30 X 4 = 120 X 4 4 8 8 0
2-5 8 20 20 X 8 = 160 z 4/8/9 6 12/16/17 14 2
3-4 4 20 20 X 4 = 80 y 3/4/8 4 7/8/12 8 1
3-5 4 20 20 X 4 = 80 y 3/4/8/9/12/17 10 7 /8/12/13 /l 6/2 l 14 7
4-5 6 30 30 X 6 = 180 X 8/9/1 2 8 14/15/18 14 0/-1
Step 3 : Construct resource allocation table and loading chart.
Table 14.18 represents the resource allocation table and loading chart is drawn in Fig. 14.98.
The procedure is explained in example 14.15-3.1.
Activities 1--2, 1--3 are taken up at time O while 1--4 is delayed to start at time 3. Float of
activity 1--4 becomes negative and therefore float will not be the criterion for finding priorities
henceforth. At time 3, activities 3--4 and 3--5 have the same man-days, gang size and activity
sequence. Therefore, activity 3--4 is arbitrarily assigned priority II and activity 3--5, priority III.
TABLE 14.18
Resource Allocation Table
H alting Available Activities in the queue A llocated to
time resources resources
(i--.;) Equip . M x D Float Priority
0 SOM ; X , Y, Z 1--2 X 30 X 4 = 120 0 I 30M ,X
1--3 y 20 X 3 = 60 I II 20M , Y
1--4 z 20 X 6 = 120 2 III
3 20M; Y, Z 1--4 z 20 X 6 = 120 - I 20M , Z
3--4 y 20 X 4 = 80 - II
3--5 y 20 X 4 = 80 - III
4 30M ; X , Y 2--4 X 30 X 4 = 120 - II 30M , X
2 --5 z 20 X 8 = 160 - I -

3--4 y 20 X 4 = 80 - III
3--5 y 20 X 4 = 80 - IV
8 30M ; X , Y 2--5 z 20 X 8 = 160 - I -

3--4 y 20 X 4 = 80 - II 20M , Y
3--5 y 20 X 4 = 80 - III
9 30M; X , Z 2 --5 z 20 X 8 = 160 - I 20M, Z
3--5 y 20 X 4 = 80 - II
12 30M; X , Y 3--5 y 20 X 4 = 80 - II
4 --5 X 30 X 6 = 180 - I 30M, X
17 20M; Y, Z 3--5 y 20 X 4 = 80 - I 20M, Y
At time 4, available resources are 30M, X and Y Activity 2--5 has the highest man-days and
is assigned priority I. However, since it requires equipment Z, it cannot be taken up and, instead,
activity 2--4 with priority II is selected for execution. From Fig. 14.98 it can be seen that the project
requires 21 days for completion and is, therefore, delayed by 7 days beyond normal completion
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1343
time. The idle man-days are shown shaded. It may be observed that during 19th, 20th & 21st days
only 20 persons are required. The remaining 30 persons can be relieved/shifted to other project after
18 days. Day-by-day requirement of operators and equipment is also shown on the loading chart.

10M
10M 3 -5-
y
10M 3 -5-
y
10M
10M
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

~~~~~~~~~~~~~~~~~~~~~~~
Equipm- x,y x,y x,y X,Z X,Z X,Z X,Z X,Z y,z y,z y,z y,z X,Z X,Z X,Z X,Z X,Z x,y y y y
ent
Fig. 14.98. Loading chart

EXAMPLE 14.15-3.5
The following table gives for each activity of a project its duration and corresponding
resource requirements as well as total availability of each type of resource :
Activity Duration Resources required
(days) Machines Men
1-2 7 2 20
1-3 7 2 20
2-3 8 3 30
2-4 6 4 30
3-6 9 2 20
4-5 3 2 20
5-6 5 2 20
Machines Men
Minimum available resources : 4 40
(i) Draw the network, compute earliest occurrence time and latest occurrence time for each
event, the total fl.oat for each activity and identify the critical path assuming that there are no
resource constraints.
(ii) Under the given resource constraints find out the minimum duration to complete the
project and compare the utilisation of resources for that duration.
Solution
E=7
L=7

E =24
L = 24

E = 15
L = 15
Fig. 14.99
1344 •!• OPERATIONS RESEARCH
(i) The network is drawn in Fig 14.99. Earliest occurrence time and latest occurrence time
for each event are shown on the network.
Total float for each activity is calculated in the network analysis table (NAT) below.
Network analysis table
Activity Duration Men Man- Machines Start Finish Total
(days) reqd days required Earliest Latest Earliest Latest float
1-2 7 20 7x20~l40 2 0 0 7 7 0
1-3 7 20 7x20~l40 2 0 8 7 15 8
2- 3 8 30 8x30~240 3 7 7 15 15 0
2-4 6 30 6x30~1 so 4 7/ 15 10 13/21 16 3/-5
3--6 9 20 9x20~1 so 2 15/21 15 24/30 24 0
4-5 3 20 3x20~60 2 13/21 16 16/24 19 3/-5
5--6 5 20 5x20~1 00 2 16/24 19 21/29 24 3/-5
Critical path under conditions of no resource constraints is 1- 2- 3--6.
(ii) Resource allocation table is constructed below.
Resource allocation table
Halting Resources Activities in the queue Allocated to
time available Activity Man-days Machines Float Priority resource
0 4 Ma, 40 M 1- 2 7x20~l40 2 0 1 2Ma, 20M
1- 3 7x20~l40 2 8 II 2Ma, 20.M
7 4Ma, 40 M 2- 3 8x30~240 3 0 I 3Ma, 30M
2-4 6x30~1 so 4 3 II
15 4Ma, 40 M 2-4 6x30~1 so 4 I 4Ma, 30M
3- 6 9x20~1 so 2 II
21 4Ma, 40 M 3- 6 9x20~1 so 2 I 2Ma, 20M
4- 5 3x20~60 2 II 2Ma, 20M
24 2Ma, 20 M 5- 6 5x20~100 2 I 2Ma,20M
Loading chart is drawn in Fig. 14,100. Due to constraint of resources, the project gets
delayed to 30 days.

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Men 4040 40 40 40 40 40 30 30 30 30 30 30 30 30 30 30~ 30 30 30 40 40 40 40 40 40 40 40 20

Machines 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 2

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Fig.14.100

Fig. 14. lOO(a) represents the order in which activities are taken up for execuation while Fig.
14. lOO(b) represents the number of men as well as machines required each day of the project.

14.16 UPDATING
After the planning and scheduling of a project, when the actual execution starts, a regular
review should be made to check the continuous validity of the schedule. In the actual execution
it generally happens that the time schedule developed for the project is not exactly followed.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1345
Some of the jobs take more time than estimated and some others are completed in period lesser
than estimated. There may be a number of reasons for this, such as the non-availability of the
resources, break down of machinery, labour strikes, wrong estimations of the planner and natural
calamities, etc. All these will delay the jobs. On the other hand, jobs may be expedited due to the
commissioning of a new machine, development of a better process and wrong estimations of the
planner, etc. The review of the situation presents a clear picture of the progress and helps in making
the necessary changes in the schedule thus adding dynamism to the nature of the network. This
process of making review and adding necessary clarifications to the network is called updating.
How often the updating should be done? There is no special rule to decide about the frequency
of updating. This depends upon the nature and the size of the project and upon the attitude of the
management. Updating may be done every fortnight or every month or every three months and
so on. However, a general observation can be made that frequency of updating may be less at the
initial stages but should be more frequent near the completion of the project. Some slippages at
the beginning can be absorbed, but a slip near completion will delay the project. In small projects,
as the time for absorbing the slippages is less, more frequent updating is called for.
Updating can be done in two ways. The first is to use the revised time estimates and compute
from the initial starting event the earliest and latest completion time of each event in the usual
manner to determine the project completion time. The second method, which is more convenient,
is to change the completed work to zero duration and bunch all the jobs already performed into
one arrow called the elapsed time arrow. The nodes in the new network are numbered in a different
fashion. The time duration assigned to the activities are the revised times.
Both these methods are explained with the help of examples.
EXAMPLE 14.16·1
After 15 days of working the following progress is noted for the network of an erection job:
(a) Activities 1-2, 1-3 and 1-4 completed as per original schedule.
(b) Activity 2-4 is in progress and will be completed in 3 more days.
(c) Activity 3-6 is in progress and will need 18 days more for completion.
(d) Activity 6-7 appears to present some problem and its new estimated time of completion
is 12 days.
(e) Activity 6-8 can be completed in 5 days instead of originally planned for 7 days.
18
5
8
20

12

Fig. 14.101

Update the above network after 15 days of start of work. Find the critical path and project
duration of the updated network. [P U.BBA, 2001]
Solution
This problem will be solved by method l. Activities 1-2, 1-3, 1-4 have already been
completed and nothing needs to be done about them. Activities 2-4 and 3-6 are in progress; their
revised durations will be calculated.
Revised duration of activity 2-4 = (15 + 3) - 9 = 9 days, and revised duration of activity
3-6 = (15 + 18) - 10 = 23 days.
1346 •!• OPERATIONS RESEARCH
Activities 6-7 and 6-8 have not started on 16th day ; they are assigned the new estimated
times of 12 days and 5 days respectively in the updated network. The durations of the remaining
activities are kept unchanged in the updated network (Fig. 14.102).
E=9 E= 27
L = 16 18 L = 37
5
8

20

23 E = 51
L = 51
E = 10 E = 33
L= 10 L= 33
Fig.14.102
The project duration is 51 days. Critical path is 1-3-6-7-8.
Example 14.16-2
The network for a project is shown in Fig. 14.103. A review of the project after 10 days
reveals that
(i) activities 0-1, 0-2 and 1-3 are completed.
3/6 14/ 14 1O 24/24

4/4 16/ 18 32/32

Fig.14.103
(ii) activity 2-3 is in progress and will take 6 days more,
(iii) activity 2-4 is in progress and will take 7 days more,
(iv) also it is estimated that due to the arrival of a new machine, activity 3-5 will take only
6 days. Update the network and find the critical path.
Solution
This problem will be solved by method 2. The information can be put into a tabular form,
as shown in table 14.19.
TABLE 14.19
Review time after JO days
Activity More time required (days) Situation
0-1 0 Completed
0-2 0 Completed
1-3 0 Completed
2-3 6 In progress
2-4 7 In progress
3-5 6 Not started
4-5 6 Not started
4-6 9 Not stmted
5-6 8 Not started
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1347
This table represents the situation of the project after 10 days. The time durations assigned
to the activities are revised times. In the new network shown in Fig. 14.104, activity 10-20 shows
the elapsed time of 10 days. Activities 20-30 and 20-40 are assigned the times they need for their
completion. Along other activities are put their new time estimates.
16/17 23/23

10/ 10 17/17
Fig. 14.104
After computing the earliest expected times and the latest allowable times for events, we
find that the critical path has changed to 20-40-50-60. The total duration has also come down by
one day.
EXAMPLE 14.16·3
The network for a project is given in Fig. 14.105. A review of the project after 15 days
reveals that
(a) Activities 1-2, 1-3, 2-3, 2-4 and 3-4 are completed.
(b) Activities 3-5 and 4-6 are in progress and need 2 and 4 days but 7-9 will need JO days.
Formulate a new network after updating the project and determine the new critical path.
3

Fig.14.105
Solution
The activities completed upto 15th day viz. 1-2, 1-3, 2-3 , 2-4 and 3-4 are combined into one
activity called the elapsed time activity. The same is represented in the updated network of Fig.
14.106 by the arrow 10-20. The activities in progress are taken to emanate from the head of elapsed
time activity. Activities 3-5 and 4-6 which need 2 and 4 days more respectively are represented by
the arrows 20-5 and 20-6 in the updated network. The remaining network is drawn for the changed
19/19

17/ 18
Fig. 14.106
activity durations. The earliest and latest event times are given along the nodes. The critical
path of the updated network is 10-20-6-8-9 and the project duration is 35 days.
1348 •!• OPERATIONS RESEARCH
EXERCISES 14.5
1. Write notes on resource levelling and resource smoothing.
[R.TM Nagpur U. B.Tech. Dec., 2005; PTU. MBA , 2005; Nagpur U. MBA, 1998]
2. Explain updating of the project networks.
[PTU. MCA , 2010; Karn. U. B.E. (Mech.) 1999; Kuru. U. B.Tech. (Ind!. Engg.) 1997]
3. The activities comprising a certain project have been identified as follows:
Activity Preceding activity Duration (weeks) No. of men required
A 4
B 7
C 8 2
D A 5 3
E C 4
F B,E 4 2
G C 11 2
H G, F 4
(a) For the above project, draw the network. Determine the critical path and its duration.
(b) If there were only three men available at anyone time, how long would the project take and how
would you allocate the men to the activities?
(c) If there were no restrictions on the amount of labour available, explain how you might schedule
the activities. (Ans. (a) C-G-H, 23 weeks. (b) Project duration increases to 32 weeks.)
4. A project has the following activities and their durations:
Activity Time (days) Preceding activity
A 1
B 2
C 2
D 2 A, B
E 4 B, C
F C
G 4 D
H 8 G,E,F
(i) Draw the project network and indicate the critical path.
(ii) What is the minimum completion time?
(iii) During the second day of work it is discovered that activity F will take 4 days instead of 1. Will
this delay the project? If this activity takes 6 days, will the project be delayed?
(iv) The company has limited number of men available to work on the project. Only two activities can
be under way at the same time. Will this delay the project over what the time would have been
with unlimited resources? (Activity F takes 6 days to complete).
(Ans. (i) B-D-G-H (ii) 16 days (iii) No (iv) Yes.)
5. The following table gives the activities in a small project and other relevant information:
Activity Duration Immediate Resources required
(days) predecessor Operators Mechanics
A 3 None 2 -

B 2 A 2 2
C 4 A 4 4
D 6 A 5 5
E 3 B 2 2
F 2 E 2 -
G 6 C - 2
H 4 D 2 2
I 4 G 4 2
J 2 D 2 -
K 2 J 2 2
L 4 F, H , I 4 4
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1349
(a) Draw the network, compute earliest start time and latest finish time for each of the activities and
find out the project completion time and identify the critical path.
(b) Draw the time-scaled diagram with resource accumulation table. Comment on demand for the
operators and mechanics for the entire project duration and suggest the method of smoothing the
resources. [CA. (Final) May, 1988]
(Ans. (a) 21 days, A-C-G-I-L.)
6. Duration and requirement of work force for each activity is tabulated below for a network.
Activity Duration No. of men
1-2 3 5
2-4 2 3
2-3 3 7
3-4 0 0
3-5 3 2
4-5 7 2
3-6 2
5-6 6 6
4-6 5 5
(a) Draw the network and comment on the scheduling of activities to smoothen the deployment of
the work force.
(b) Indicate the maximum crew size in each case.
(c) Re-schedule the activities for smooth development. [I.C.WA. (Final) June, 1977]
7. Following are the manpower requirements for each activity in a project:
Activity Normal time Manpower required
(days) per day
1-2 10 2
1-3 11 3
2-4 13 4
2-6 14 3
3-4 10
4-5 7 3
4-6 17 5
5-7 13 3
6-7 9 8
7-8 11
(i) Draw the network and find out total float and free float for each activity.
(ii) The contractor stipulates that during the first 26 days only 4 to 5 men and during remaining days
8 to 11 men only can be made available. Rearrange the activities suitably for levelling the man
power resource satisfying the above conditions. [Nagpur U. MBA, 1998]
8. Consider the project whose details are given below:
Activity 1-2 2-3 2-4 3-4 3-5 3-6 4-5 4-6 5-6
Duration (days) 3 3 2 0 3 2 7 5 6
Resources 5 7 3 0 2 2 5 6
(a) Find the duration of the project.
(b) Find the resource level of the project.
(c) Find the resource allocation using 7 resources by series method i. e., make the complete allocation
table. [BITS Pilani, 2000]
9. A project schedule has the fo ll owing characteristics:
Activity Time Activity Time
1-2 2 4-5 5
1-4 2 4-8 8
1-7 1 5-6 4
2-3 4 6-9 3
3-6 1 7-8 3
8-9 5
1350 •!• OPERATIONS RESEARCH
(a) Construct network and find critical path and time duration of the project.
(b) Activities 2- 3, 4- 5 and 6- 9 each require one unit of the same key equipment to complete it. Do
you think availability of one unit of the equipment in the organisation is sufficient for completing
the project without delaying it? If so, what is the schedule of these activities?
[G.N.D.U. B.Com. April. , 2006]
(Ans. (a) Critical path is 1-4-8-9, 15 time units;
(b) 4-5, 2-3 , 6-9 in this order.)
10. A simple project has the following time and resource data:
Activity Preceding activity Duration (days) Labour requirement
A 1 2
B 2
C A
D 5
E B
F C
(a) Determine the minimum project schedule.
(b) Find the project schedule if only 2 men are available.
(c) Determine the number of men required if the project duration in (a) cannot be extended.
(Ans. (a) 5 days; (b) 6 days; (c) 3 men from day 2 to day 4.)
11. A project has the following activities and their durations:
Activity 12 13 14 24 25 34 36 47 57 67 68 78
Duration 13 15 9 10 27 7 18 30 12 10 10 9
(days)
(a) Draw the network of the project and find its duration.
(b) At the end of 25 days it is observed that
(i) activities 12, 13, 14 have been completed,
(ii) activity 24 is being done and will be completed in 5 more days,
(iii) activity 36 is in progress and will need 20 more days for completion,
(iv) activity 67 is presenting some problem and will take 15 days.
Draw the updated network and find out its revised duration, 12 denotes activity 1-2 and same is true
for other activities.
12. The network for a project is given in Fig. 14.107.
Suppose the progress of work is checked after 15 days, that is at the end of 15th day, and it is observed
that
8/8 16/20
1 - -_ _8 _ __,., 5

10 16
8

4 1 - - -5----1~ 7
10/ 12 15/17
Fig. 14.107
- activities 1-2, 1-3, 1-4 and 2-5 are completed,
- activity 2-6 is in progress and needs 2 days more,
- activity 3-6 is in progress and needs 5 days more,
- activity 4-7 is in progress and needs 1 day more, and
- activity 5-9 is in progress and needs 14 days more.
Also, it is estimated that due to the non-availability of fast setting cement, activity 7-8 will take 12
days while due to the arrival of a new crane, activity 8-9 will now require only 10 days.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) •!• 1351
Formulate the new network after updating the project and determine the new critical path.
(Ans. Critical path: 10-20-70-80-90,
project duration : 38 days.)
13. For the network shown in Fig. 14.108, a review of the project after 15 days reveals the following
situation:
(a) Activities 1-2, 1-3, 2-3, 2-4 and 3-4 are completed.
(b) Activities 3-5 and 4-6 are in progress and need 2 and 4 days more respectively.
(c) The revised estimate shows that activity 8-9 will take only 8 days, but activity 7-9 will need 10
days.
Formulate a new network after updating and determine the new critical path. Show the progress of the
project on a bar chart and indicate the modification based on updating.
3

Fig. 14.108
(Ans. Critical path remains unchanged.)
14. The estimated cost for work packages and the activity duration in each work package pertaining to a
certain project are shown below:
Work package Activities in work package Duration (weeks)
Engineering design 1-2, 2-3 , 3-4, 3-7, 7-8 4, 3, 2, 6, 2
Steel and other materials 4-5 , 5-6, 6-11 , 9-12, 12-13, 13-14 1, 1, 24, 1, 1, 16
Fabrication 8-9, 9-10, 10-11 , 11-14, 14-15, 2, 4, 1, 3, 5,
15-16, 16-17, 17-18 1, 1, 1
(a) Draw the network diagram indicating earliest occurrence times and latest occurrence times of the
events. Find the critical path and project duration.
(b) The physical progress of activities at the end of 16 weeks reported is as under:
Completed 1-2 2-3 3-4 3-7 4-5 5-6 7-8
activities
Actual 3 4 2 7 2 2
duration
Activities in progress are:
8- 9 : Estimated to complete in 2 weeks from now.
6- 11 : Estimated to complete in 18 weeks from now.
Draw the original as well as updated networks and find their critical paths.

14.17 OBJECTIVES OF NETWORK ANALYSIS

Some of the main objectives of network analysis are:
(i) to complete the project within the stipulated period.
(ii) optimum utilization of the available resources.
(iii) minimization of cost and time required for the completion of the project.
(iv) minimization of idle resources and investments in inventory.
(v) to identify the bottlenecks, if any, and to focus attention on critical activities.
(iv) to reduce the set-up and changeover costs.

14.18 ADVANTAGES OF NETWORK TECHNIQUES

l. They are most valuable and powerful for planning, scheduling and control of operations
in large and complex projects.
1352 (+ OPERATIONS RESEARCH
2. They are useful tools to evaluate the level of performance by comparing actual performance
against the planned targets.
3. They help to determine the interdependence of various activities for proper integration
and coordination of various operations.
4. They help to evaluate the time-cost trade off and determine the optimum schedule.
5. These techniques are simple and can be easily oriented towards computers.
6. The networks clearly designate the responsibilities of different supervisors. Supervisor of
an activity knows his time schedule precisely and also the supervisors of other activities
with whom he has to coordinate.
7. These techniques help the management in achieving the objective with minimum of time
and least cost and also in predicting the probable project duration and the associated cost.
8. Applications of PERT and CPM have resulted in saving of time which directly results in
saving of cost. Saving in time or early completion of the project results in earlier return
of revenue and introduction of the product or process ahead of the competitors, resulting
in increased profits.
9. They help to foresee well ahead of actual execution the difficulties and problems that are
likely to crop up during the execution of the project.
10. They also help to minimize the delays and holdups during execution. Corrective action
can also be taken well in time.
11. Application of network techniques has resulted in better managerial control, improved
utilisation of resources, improved communication and progress reporting and better
decision-making.

14.19 LIMITATIONS OF NETWORKS

1. Construction of networks for complex projects is complicated and time consuming due to
trial and error approach.
2. Estimation of reliable and accurate durations of various activities is a difficult exercise.
3. With too many resource constraints the analysis becomes very difficult.
4. Time-cost trade off procedure, in many situations, is complicated.

14.20 DIFFICULTIES IN USING NETWORK METHODS

Following are some of the problems faced in the managerial use of network methods :
1. Difficulty in securing the realistic time estimates. In the case of new and non-repetitive
type projects, the time estimates are often mere guesses.
2. The natural tendency to oppose changes results in the difficulty of persuading the
management to accept these techniques.
3. The planning and implementation of networks require personnel trained in the network
methodology. Managements are reluctant to spare the existing staff to learn these techniques
or to recruit trained personnel.
4. Developing a clear logical network is also troublesome. This depends upon the data input
and thus the plan can be no better than the personnel who provides the data.
5. Determination of the level of network detail is another troublesome area. The level of
detail varies from planner to planner and depends upon the judgement and experience.

14.21 COMMENTS ON THE ASSUMPTIONS OF PERT/CPM

1. In PERT analysis 13-distribution curve is assumed for expected times of all the activities.
However, actually 13-distribution curve may not be applicable to each and every activity.
2. The formulae for the expected duration and standard deviation are simplified. In certain
cases the errors, due to these simplifications, may even be of the order of 33%.
3. PERT analysis assumes independence of activities. Limitation of resources may invalidate
the independence of activities.
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) +!• 1353
4. It is not always possible to sort out completely identifiable activities and their start and
finish times.
5. Time estimates have an element of subjectiveness in them. The whole analysis, being based
on them is, therefore, weak. The analysis can, at best, be as good as the time estimates.
6. The CPM model has an assumption that the duration of an activity is linearly and inversely
related to the cost of resources consumed for the activity. Cost-time trade off relationships
are difficult to obtain in many cases either because data are not available or because their
estimation is too complex and expensive. A great deal of effort and expertise is required
to estimate them.

14.22 APPLICATIONS OF NETWORK TECHNIQUES

Networks provide a comprehensive study of the entire project in terms of precedence and
succession of various activities as well as resources available to perform them to evolve some better
and quicker plan to complete the project. They can be used for complicated large scale projects
involving financial and administrative problems.
The list containing PERT and CPM applications is very large and the applications are
expanding to many new areas. Following are a few typical areas in which these techniques are
widely accepted:
1. Construction Industry : It is one of the largest areas in which the network techniques of
project management have found application. These techniques are used in the construction
of buildings, roads, highways, bridges, dams and irrigation projects.
2. Manufacturing: The design, development and testing of new machines, installing machines
and plant layouts are a few examples of how it can be applied to the manu-facturing
function of a firm. It has been used in manufacturing of ships, aeroplanes, etc.
3. Maintenance planning: Rand D has been the most extensive area where PERT has been
used for development of new products, processes and systems. It has been used in missile
development, space programmes, strategic and tactical military operations, etc.
4. Administration: Networks have been used by the administration for streamlining paperwork
system, for making major administrative system revisions, for long range planning and
developing staffing plans, etc.
5. Marketing: Networks have been used for advertising programmes, for development and
launching of new products and for planning their distribution.
6. Inventory planning : Installation of production and inventory control, acquisition of spare
parts, etc. have been greatly helped by network techniques.
7. Other areas of application are preparation of budget and auditing, installation of computers
and large machinery, best traffic flow patterns, organisation of big conferences and public
works, advertising and sales promotion strategies, etc.

14.23 DISTINCTION BETWEEN PERT AND CPM

The PERT and CPM techniques are similar in terms of their basic structure, rationale and
mode of analysis. However, there are certain distinctions between PERT and CPM networks which
are described below:
1. CPM is activity oriented i.e, CPM network is built on the basis of activities. Also results
of various calculations are considered in terms of activities of the project. On the other
hand, PERT is event oriented. Here, emphasis is on the completion of a task rather than
the activities required to be performed to reach a particular event or task.
2. CPM is a deterministic model. It does not take into account the uncertainties involved in
the estimation of time for the execution of an activity. Each activity is assigned a single
time based on past experience. PERT, however, is a probabilistic model. It uses three
estimates of the activity time, namely, optimistic, pessimistic and most likely, with a
1354 + OPERATIONS RESEARCH
view to take into account uncertainty in time. Thus expected duration of each activity is
probabilistic and expected duration indicates that there is 50% chance of completing the
activity within that time.
3. CPM places dual emphasis on project time as well as cost and finds the trade-off between
project time and project cost. By employing additional resources, it helps to manipulate
project duration within certain limits so that it can be reduced at optimum cost. On
the other hand, PERT is primarily concerned with time only. It helps to schedule and
coordinate various activities so that project can be completed in scheduled time.
4. CPM is primarily used for projects which are repetitive in nature and comparatively small
in size. PERT is generally used for projects where time required to complete the activities
is not known a priori. Thus PERT is used for large, one-time research and development
type of projects.
These distinctions, however, have become less important over time because cost considerations
have also been brought in PERT analysis. Differences are insignificant and of academic interest
only and both PERT and CPM are treated to be synonymous for the purpose of analysis.

14.24 LINEAR PROGRAMMING FORMULATION

A project, as discussed earlier, consists of a large number of activities resulting in a number
of constraints. It may, therefore, be desirable to formulate the problem in linear programming
format. Problems may involve either of the following situations:
1. Given a project involving n activities with their normal durations, crash durations and cost
slopes, determine the duration of each activity so that the total cost is minimum.
2. Given a project involving n activities with their normal durations, crash durations, cost
slopes and indirect cost, determine the project duration so that the total cost is minimum.
If xi' x2, ... , xn denote the durations of the n activities and cl' c2, ... , en are their associated
costs per unit time, the L.P. formulation of the problem is
minimize Z = c 1 x 1 + c 2 x2 + ... + en xn,
subject to constraints
x 1 + x2 + ... + xn::,; normal time,
x 1 + x2 + ... + xn ~ crash time,
where xi' x2, ... , xn ~ 0.

EXERCISES 14.6
1. Discuss the similarities and differences of CPM and PERT.
[Chennai U. B.C.A. Nov., 2010; P.T.U.B.E. (Mech.) 2008; May, 2006; P.U. B.Com.
April, 2007; B.E. (T. & I.T.) Nov., 2005; Nov., 2004; B.E. (Mech.) 2002; M.Com. Sept., 2004;
Univ. of Madras MBA Nov., 2012; Univ. of Mumbai PGDM, 2012; VT.U. Karanatka
B.E. June, 2010; R.T.M. Nagpur U.B.E. (J.T.) 2009,05; Dec., 2004; Dec., 2003]
2. Discuss applications of PERT/CPM in project planning and explain the difference between them.
[P.T.U. MBA, 2008; P.U. M.Com., 2002; B.E. (Elect.) 2001; B.Com., 2000; B.E. (Mech.) 1995;
MBA, 2000; IGNOU MBA, 1999, 97; GNDU B.Com., 1995]
3. State the requirements for the application of PERT technique and practical limitations of using PERT.
How does PERT differ from CPM? [G.N.D.U. B.Com. April, 2008; RC.C. CHD., 2002;
GNDU B.Com., 1991]
4. Write a detailed note on the applications of network techniques.
[R.T.M. Nagpur U.B.Tech. Dec., 2004; P.U.B.E. (T.I.T.) Nov., 2006; M.Com., 2001]
5. Answer the following :
(i) Advantages of network models [P. T. U. MBA, 2009]
(ii) Difficulties in using network models [P.U. B.E. (TIT) Dec., 2008]
 NETWORK ANALYSIS IN PROJECT PLANNING (PERT AND CPM) +!• 1355
(iii) Applications of network techniques [M.D. U. Rohtak B.E. (Mech.) Dec., 2006]
(iv) Compare and contrast CPM and PERT models. [Univ. ofMadras MBA, 2012; Univ. of
Mumbai MBA, 2012; P.T.U. MBA, 2009; Nellore MBA, 2002]
6. Write short note on assumptions in PERT technique.
[P.T.U. MBA, 2009; P.U. B.E. (Elect.) 1997; C.A. (Final) 1995]
7. What is PERT/CPM? What does each involve ? How are they similar ? Different ? What particular
advantages does PERT have over CPM ? State the situations where CPM is better technique than PERT.
[G.N.D.U. B.Com. April, 2007; P.U. MB.A., 2003]
8. Describe the role of network models of operations research for managerial decision-making.
9. Which model (PERT or CPM) do you advocate for execution of ultra mega power projects in India ?
[P.T.U. MBA, 2009]
(Ans. PERT.)
10. State the circumstances where CPM is a better technique of project management than PERT.
[Kuru.U. B.E. (Mech.) June, 2012]