DR.

MAHADEO GHADGE

The first phase of project management is network planning, including: information gathering, task descriptions, constraints, timing, sequencing and resources required. The result of network planning is the project network. The network alone is a useful device for project management because: Communication is structured and sequencing is portrayed graphically. Preparation for network planning includes: determination of project objectives, responsibilities, organization and information.

Basic Terms Activity = an elemental part of a project that consumes time or resources and has a definable beginning and ending. Event = beginning or ending point of an activity Project= a collection of interrelated activities leading to the accomplishment of a major objective.

The Project Network Use of nodes and arrows Arrows An arrow leads from tail to head directionally Indicate ACTIVITY, a time consuming effort that is required to perform a part of the work.

Nodes A node is represented by a circle - Indicate EVENT, a point in time where one or more activities start and/or finish.

AOA(Activity on arrow) Project Network for House 3

Lay foundation Dummy

3
Design house and obtain financing

Order and receive materials

4
Select paint

Build house

6
1
Select carpet

Finish work 1

AON (Activity on node) Project Network Build house for House Lay foundations 4
2 2 3 Start 1 3
Design house and obtain financing

Finish work

7 1 6 1

3 1
Order and receive materials

Select paint darla/smbs/vit

5 1

Select carpet
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Situations in network diagram

A

B
A must finish before either B or C can start C

A C B both A and B must finish before C can start

B Dummy

A must finish before B can start both A and C must finish before D can start

darla/smbs/vit

NETWORK ANALYSIS entails group of techniques information related to planning, scheduling, controlling, time & resources for projects. An information is represented by a network that includes the sequence, inter-dependencies & criticality of various activities of the project.

OBJECTIVES OF NETWORK ANALYSIS

It is a powerful tool for planning, scheduling & control. It helps to correlate the technological & interdependencies of various activities & so on integrating the project planning. It minimizes total time. It minimizes cost of given total time & viceversa. It minimizes the ideal resources.

Critical Path Method (CPM) Programme Evaluation & Review Techniques (PERT).

A successful implementation of any project involves planning, coordination & control of the activities. Therefore time management of project assumes great importance. This is dealt by

An event represents a particular accomplishment in the project & takes place at a certain instance of time & does not consume time or resources. An events in a network is a time oriented reference point which signifies the end of one activity & beginning of second. Various events - Merge events, Burst events, Merge & Burst events. Events are generally described by start, complete, issue, approve, tested etc. It means total cycle time involved in activities from start to finish.

EVENT

DUMMY ACTIVITY In any project, it is possible that 2 activities can be simultaneously performed. Therefore only one activity between two events & dummy activity consumes no time & resources. To identify & maintain the proper process relationship between activities that are not connected by events.

Example
Activity A B C D E F G Time 10 7 5 13 4 12 14 Preceded By --A A B,C D E

Activity A B C D

Description Install Machine Hire operator Train Operator Inspect Machine

Predecessors ----A,B A

Network Diagram

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Early Start and Finish Times

Latest Start and Finish Times

Activity Slack Time TES TLS TEF TLF = = = = earliest start time for activity latest start time for activity earliest finish time for activity latest finish time for activity

Activity Slack = TLS - TES = TLF - TEF

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CRITICAL PATH METHOD (CPM)

This method assumes that activity durations are known. The method computes the earliest possible start time & latest possible start time for each activity. It also identifies the critical activities. These activities are critical - means if completion of any of these activities is delayed even by short period of time, the whole project will be delayed.

COMPUTATION OF EARLY START & EARLY FINISH TIME FOR THE ACTIVITIES
This means all the activities can start at same time Exmp - A, B, C, D, E, F etc. The earliest time by which an activity can be completed will be denoted by earliest finish time. Activity D can be started only on completion of activity C, while activity E can be started only if both activities A & D are finished. Thus the activity F will be completed (exp on 17th week) hence the entire project can be completed by 17th week from its start.

SLACK (FLOAT)
During calculation of activity time, the difference between Latest Start Time & Earliest Start Time is known as slack or total float on an activity. This indicates the delay that is permitted in the completion time of the activity without affecting the project completion. This delay can either be due to delay in completion of its preceding activities or in the execution of this activity.

Where the activity times are known (like project planning & control) with certainty we can use CPM. But in certain projects like R & D project it is unrealistic to assume the time duration in which activities can be completed. In such cases we can use PERT.

PROGRAMME EVALUATION & REVIEW TECHNIQUE (PERT)

PERT was developed by the US Navy for the planning and control of the Polaris missile program and the emphasis was on completing the program in the shortest possible time. In addition PERT had the ability to cope with uncertain activity completion times (e.g. for a particular activity the most likely completion time is

Benefits of CPM/PERT
Useful at many stages of project management Mathematically simple Give critical path and slack time Provide project documentation

Limitations to CPM/PERT Clearly defined, independent and stable activities Specified precedence relationships Over emphasis on critical paths

Comparison Between CPM and PERT

CPM PERT Same as CPM

Uses network, calculate float or slack, identify critical path and activities, guides to monitor and controlling project
Uses one value of activity time

Requires 3 estimates of activity time Calculates mean and variance of time

Used where times can be estimated Used where times cannot be estimated with confidence, familiar activities with confidence. Unfamiliar or new activities Minimizing cost is more important Example: construction projects, building one off machines, ships, etc Meeting time target or estimating percent completion is more important Example: Involving new activities or products, research and development etc

4 5

Example of Simple Network Survey

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Example of Network More Complex

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