OR Unit 5
OR Unit 5
Network analysis
Network analysis, as stated above, is a technique
related to sequencing problems which are concerned with minimizing some
measure
or performance of the system such as the total completion time of the project, the
overall cost and so on. The technique is useful for describing the elements in a
complex situation for the purpose of designing, planning, coordinating
controlling
and making decision. Network analysis is especially suited for projects which are
not routine or repetitive and which will be conducted only once or a few time.
It allows the total requirements
of men, materials, and money, machinery and space resources to be readily
calculated and also indicates where the delaying of non-critical jobs (i.e., jobs
which do not immediately affect the duration of the project) may be used for
optimal utilisation of resources.
Network scheduling is a technique used for planning and scheduling large
projects in the field of construction, maintenance, fabrication, etc. It is a tool for
minimizing problems in the execution and controlling critical factors in a project.
Program Evaluation Review Technique (PERT) and Critical Path Method (CPM)
are two planning and control techniques for keeping a project schedule on track
to complete within the scheduled time.
The Critical Path Method (CPM), or Critical Path Analysis (CPA), is
an algorithm for scheduling a set of project activities. It is commonly used in
conjunction with the Program Evaluation and Review Technique (PERT). A
critical
path is determined by identifying the longest stretch of dependent activities and
measuring the time required to complete them from start to finish. The Program
(or project) Evaluation and Review Technique (PERT) is a statistical tool used
in project management, which was designed to analyse and represent
the tasks involved in completing a given project.
Objectives
The main objectives of network analysis are:
1. To foster increased orderliness and consistency in the planning and evaluating
of all areas in the project.
To provide an automatic mechanism for the identification of potential trouble
spots in all areas which arise as a result of a failure in one.
3. To structure a method to give operational flexibility to the programme by
allowing for experimentation in a simulated sense.
4. To effect speedy handling and analysis of the integrated data, thus allowing
for expeditious correction of recognised trouble areas in project management.
Network analyses, thus, plays an important role in project management.
Through network analysis, which is a graphic depiction of ‘Activities’ and
‘Events’ related to a project, planning, scheduling and control of project
becomes easier and effective.
Basic Terms
To understand the network techniques one should be familiar with few basic
terms of which both CPM and PERT are special applications.
Network: It is the graphic representation of logically and sequentially connected
arrows and nodes representing activities and events of a project. Networks are
also called arrow diagram.
Activity: An activity represents some action and is a time consuming effort
necessary to complete a particular part of the overall project. Thus, each and
every activity has a point of time where it begins and a point where it ends.
Event: The beginning and end points of an activity are called events or nodes.
Event is a point in the time and does not consume any resource. It is represented
by a numbered circle. The head event called the jth event has always a number
higher than the tail event called the ith event.
Merge and Burst Events: It is not necessary for an event to be the ending event
of only one activity but can be the ending event of two or more activities. Such
event is defined as a merge event.
If the event happens to be the beginning event of two or more activities it is
defined as a burst event.
Common Errors
Following are the three common errors in a network construction:
Looping (cycling): In a network diagram looping error is also known as cycling
error. Drawing an endless loop in a network is known as error of looping. A loop
can be formed if an activity were represented as going back in time.
CPM
uses two time and two cost estimates for each activity (one time-cost estimate for
the normal situation and the other estimate for the crash situation) but does not
incorporate any statistical analysis in determining such time estimates. CPM
operates on the assumption that there is a precise known time that each activity
in
the project will take.
Time Analysis
Once the network of a project is constructed the time analysis of the network
becomes essential for planning various activities of the project. An activity time
is
a forecast of the time an activity is expected to take from its starting point to its
completion (under normal conditions).
We shall use the following notation for basic scheduling computations.
(i, j) = Activity (i, j) with tail event i and head event j
Tij = Estimated completion time of activity (i, j)
(ES)ij = Earliest starting time of activity (i, j)
(EF)ij = Earliest finishing time of activity (i, j)
(LS)ij = Latest starting time of activity (i, j)
(LF)ij = Latest finishing time of activity (i, j)
Merge and Burst Events: It may be pointed out that it is not necessary for
an event to be the ending event of only one activity but an event can be the
ending event of two or more activities in which case the said event is technically
described as merge event. Similarly, if the event happens to be
the beginning event of two or more activities it is technically called as the
‘Burst Event’.
Preceding, Succeeding and Concurrent Activities: The activities can be
classified as preceding activities; succeeding activities and the concurrent
activities. Activities which most be accomplished before a given event can
occur are termed as preceding activities; activities which cannot be
accomplished until an event has occurred are termed as succeeding
activities and activities which can be accomplished concurrently are known
as concurrent activities. This classification is relative which means that
one activity can be preceding to a certain event and the same activity can be
succeeding to some other event or it may be a concurrent activity with one
or more of the activities.
Dummy Activities: Some times we use dummy activities in the preparation
of network diagram. Such activities are to designate a precedence
relationship and in the network diagram are shown as broken lines. They
are characterized by their use of zero time and zero resource. Their main
function is to help in assuring that the activities and events in a network
diagram are in proper sequence.
Path and Critical Path: A path is continuous chain of activities through a
network which connects the first event to the last event. Critical path consists
of the sequence of those events and connected activities that require the
maximum time in the completion of the project. It is that path which takes
the longest time. It is known as critical because it controls the completion
date of the project. The length of this path determines the minimum time in
which the project may be completed.
Critical Activities or Bottleneck Activities: All the activities associated
with the critical path are called as critical or bottleneck activities. Any
delay in the completion of one or more of these activities will cause delay in
the completion date of the project. Hence, such activities require special
attention of the project incharge.
Earlier Start Time or Est: Est for an activity is the earliest possible time an
activity can begin on the assumption that all activities preceding to it started
at the earliest possible times.
Earliest Finish Time or Eft: Eft is the sum of the earliest start time and the
estimated time to perform the concerning activity.
Latest Finish Time or Lft: Lft for an activity is the latest possible time an
activity can finish without delaying the project beyond its dead line on the
assumption that all the subsequent activities are performed as planned.
Latest Start Time (or Lst): Lst for an activity is the difference between the
latest finish time and the estimated time for the activity to be performed.
Float (Total, Interfering Independent and Free floats): Total float is the duration
by which an activity can be
delayed without delaying the project and can be worked out as either (Lst-
Est) or (Lft-Eft). Interfering float is that part of the total float which causes
a reduction in the float of the successor activity or activities.
Free float is that portion of
the total float within which an activity can be manipulated without affecting
the float of subsequent activities. It is worked out by subtracting the head
event slack from the total float.
Independent float is that portion of
the total float within which an activity can be delayed for started without
affecting float of the preceding activities.
Float may be positive or negative. Positive float indicates that the activities
concerned have certain amount of spare time and can be delayed without
effecting the project duration. On the other hand, negative float highlights
the situation in which the activities concerned are short of time and unless
their duration (to the extent of negative float) is reduced, completion of the
project by the target time cannot be assured. Thus, negative float indicates
the extent of criticality of the activities.
Slack: The term slack is normally associated with events. It indicates the
amount of latitude that is available for an event to occur. It is worked out as
under:
Slack of an event = (Latest occurence time of the event) – (Earlier occurence
time of the event) or simply slack of event = (LT – ET). Slack can be positive or
negative depending upon whether the targetted date of completion is later or
earlier
than the earliest finish time of the task respectively.
When used for activities, the term slack should be used for activity slack
(activity slack is synonymous to float). Since slack is associated with the events,
each activity will have two slacks which includes the slack of its head event or
the
head slack and the slack of its tail event or the tail slack.
PERT
The network methods discussed so far may be termed as deterministic, since
estimated activity times are assumed to be known with certainty. However, in
research project or design of gear box of a new machine, various activities are
based on judgement. It is difficult to obtain a reliable time estimate due to the
changing technology. Time values are subject to chance variations. For such cases
where the activities are non-deterministic in nature, PERT was developed. Hence,
PERT is a probabilistic method where the activity times are represented by a
probability distribution. This probability distribution of activity times is based
upon
three different time estimates made for each activity. These are as follows:
(i) Optimistic time estimate
(ii) Most likely time estimate
(iii) Pessimistic time estimate
Optimistic Time Estimate: It is the smallest time taken to complete the activity
if everything goes on well. There is very little chance that activity can be done in
time less than the optimistic time. It is denoted by t0 or a.
Most Likely Time Estimate: It refers to the estimate of the normal time the
activity would take. This assumes normal delays. It is the mode of the probability
distribution. It is denoted by tm or (m).
Pessimistic Time Estimate: It is the longest time that an activity would take if
everything goes wrong. It is denoted by tp or b. These three time values are shown
in the following figure.
COMPARISON AND LIMITATIONS OF PERT
AND CPM
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.
2. CPM is a deterministic model, i.e., it dose not take into account the
uncertainties
involved in the estimation of time for execution of a job or an activity. It
completely ignores the probabilistic element of the problem. PERT however
is a probabilistic model. It uses three estimates of the activity time- optimistic,
pessimistic and most likely with a view to take into account time uncertainty.
Thus the expected duration of each activity is probabilistic indicates that there
is fifty percent probability of getting the job done within the time.
3. CPM places dual emphasis on time and cost and evaluates the trade off
between project cost and project time. It allows the project manager to
manipulate project duration within certain limits so that project duration can
be shortened to an optimal cost. On the other hand PERT is primarily
concerned with time. It helps the manager to schedule and coordinate various
activities so that the project can be completed on scheduled time.
4. Since the Critical Path Method does not account for uncertainty, it is best
used in projects where the activity time estimate can be predicted fairly
accurately. For example, for repetitive projects you can estimate the time
for each activity quite accurately from past experience. Whereas for projects
that have a higher degree of uncertainty, use the PERT Network. Most
software projects will require you to account for a high degree of uncertainty.
5. Another difference in PERT and CPM is in how the diagrams are drawn. In
PERT, events are placed in circles or rectangles to emphasize a point in
time. Tasks are indicated by the lines connecting the network of events. In
CPM the emphasis is on the tasks, which are placed in circles. The circles
are then connected with lines to indicate the relationship between the tasks.
CPM use has become more widespread than the use of PERT applications.
PERT and CPM are used together because they have similarities. For example,
PERT and CPM both assume that a small set of activities, which make up the
longest path through the activity network control the entire project. In addition to
that, PERT and CPM also share the following six key assumptions:
1. All tasks have distinct beginning and end points.
2. All estimates can be mathematically derived.
3. Tasks must be able to be arranged in a defined sequence that produces a
pre defined result.
4. Resources may be shifted to meet the need.
5. Cost and time share a direct relationship, i.e., cost of each activity is evenly
spread over time.
6. Time, of itself, has no value.
When used together, PERT and CPM can provide:
A range of time estimates (by PERT).
Likely time estimates (by PERT and CPM).
Limitations of PERT/CPM
Clearly defined, independent and stable activities.
Specified precedence relationships.
Over emphasis on critical paths.
Deterministic CPM model.
Activity time estimates are subjective and depend on judgment. If the
estimates are subjective, then it compromises the purpose of the formula.
The weighted estimate and standard deviation will not accurately depict the
amount of time required for each task. In case where there is little experience
in performing the activity, these estimates may be only a guess. Moreover if
the person or group performing the activity estimates the time, there may be
a bias in the estimate.
PERT assumes a beta distribution for these time estimates, but the actual
distribution may be different.
Even if the beta distribution assumption holds, PERT assumes that the
probability distribution of the project completion time is the same as that of
the critical path. PERT consistently underestimates the expected project
completion time due to alternate paths becoming critical. Under estimation
of time can cause huge problems in project management. Not only can it
cause the project to fall behind, but it can also cause overages in budget
when employees are either forced to pull overtime to meet project deadlines
or the project might over extend what was budgeted resource wise, thus
causing a problem with over allocation.