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Network Analysis OR MBA PPT 2

Network analysis is a technique used in project management to schedule activities and resources. A network diagram graphically shows the sequence and dependencies of activities. Common techniques are Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT). CPM finds the critical path with the longest duration to determine the minimum project time. PERT uses three time estimates per activity - optimistic, most likely, and pessimistic - to calculate time and probability of completion.

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Babasab Patil (Karrisatte)
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1K views20 pages

Network Analysis OR MBA PPT 2

Network analysis is a technique used in project management to schedule activities and resources. A network diagram graphically shows the sequence and dependencies of activities. Common techniques are Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT). CPM finds the critical path with the longest duration to determine the minimum project time. PERT uses three time estimates per activity - optimistic, most likely, and pessimistic - to calculate time and probability of completion.

Uploaded by

Babasab Patil (Karrisatte)
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Network Analysis

Module 4

What is network analysis?


The techniques of operations research used for planning, scheduling, and controlling large and complex projects are often referred as network analysis Objective-It is all about scheduling the required activities in an efficient manner so as to complete it on or before a specified time limit at a minimum cost of its completion

network
A network is a graphical plan consisting of a certain configuration of arrows and nodes for showing the logical sequence of various activities to be performed to achieve project objectives

Techniques used in network analysis


PERT-program evaluation review technique CPM-critical path method

event
Events in the network represents the project milestones such as Start or completion of an activity or activities and occur at a particular instant of time at which some specific part of the project has been or is to be achieved Events are commonly represented by circles (nodes) in the network diagram

activity
Activities in the network diagram represent project operations or tasks to be conducted Note: except dummy activity each activity consumes time and resources and incur cost An arrow is used to represent the direction of the activity activities are identified by the numbers of their starting event and ending event

Pictorial representation of an activity


Tail of the arrow Head of the arrow

i
Starting event

Activity

j
Completion event Activity

Activity

node

node

Classification of activity
Predecessor activity-an activity which must be completed before one or more other activities start is known as predecessor activity Successor activity-an activity which started immediately after one or more of other activities are completed is known as successor activity Dummy activity-an activity which does not consume either an resources and/or time is known as dummy activity

Rules for network construction


Length of arrow is of no significance Each activity should be represented by only one arrow and must start and end in a circle called event The tail of the activity represents the start and the head of the activity represents the completion of work The event numbered 1 denotes the start of the project and is called initial event

Rules contd.
All activities emerging from event should not be preceded by any other activities Event carrying the highest number denotes the completion of the project A network should have only one initial event and only one terminal event The general rule for numbering is that the head event should always be numbered larger than that at its tail .i.e. i<j

Rules contd.
An event number should not be repeated or duplicated Two activities should be identified by the same completion event An event can not occur until all the incoming activities into it have been completed An activity can not start unless all the preceding activities on which it depends have been completed Dummy activity also should follow all the rules

e.g. for network diagram


activity A B C D E F Preceeding activity A A A B C

G
H I

D
E,F,G H

Soln.
3 B 1 A 2 D 5 C 4 F G

E
6 H 7 I 8

CPM(CRITICAL PATH METHOD)


It can be found out by going through forward pass and backward pass Earlier start E Points to be noted Earlier finish Latest start L Latest finish Critical activities-are those activities in which E & L are same

ACTIVITY

DURATION(DAYS) 2 7 8 3 6 10 4 6 2 5

Finding CPM and project completion time

1-2 1-3 1-4 2-5 3-5 3-6 3-7 4-6 5-7 6-8

7-8

Soln.
E=2 L=11

E=13 L=14

From the network, Critical path is 1 3 6 8 And duration of critical path is 7+10+5=22 days

2 1 8
E=8 4 L=11

2 7
E=7 L=7

E=0 L=0

E=15 L=16

7 10

E=22 L=22

5 6
E=17 L=17

Activity 1-2 2-3 2-4 3-6 3-5 4-6 5-7 6-7 7-8

to 4 5 4 15 10 8 4 1 6

tm 6 7 8 20 18 9 8 2 7

tp 8 15 12 25 26 16 12 3 8

PERT (Program Evaluation Review Technique)

Soln.
8
1
E=0 L=0

E=14 L=14

18 20 6

E=32 L=32

5 8 2
E=34 L=38

2
E=6 L=6

7
E=40 L=40

8
E=47 L=47

8
4
E=14 L=28

10
From the network, Critical path is 1 2 3 5 7

Soln. contd.
te = to+ tm+ tp 6 to= optimistic time te= most likely time tp= pessimistic time
2

Probability that the project will be Completed in x days P(DX)= P Z GT-AT Where, Z = value under normal curve = standard deviation GT = Given Time AT = Actual Time

variance (2 )= tp-to 6 Standard deviation=variance

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