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Construction Project Planning Overview

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17 views209 pages

Construction Project Planning Overview

Uploaded by

bikila meko
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EiABC

Chair of Construction Management


Construction planning and Scheduling (CoTM 3402)

Lecture 1

1
Project planning scope
Contents of the lecture
Plan development
Process
Time planning process
Work scheduling process
Resource planning
process
Project control process
 Importance of planning,
scheduling and controlling
projects
2
1. Plan development process
PLANNING process
Planning aims at formulation of a time-based plan of action for
coordinating various activities and resources to achieve
specified objectives. Planning is the process of developing the
project plan. The plan outlines how the project is to be
directed to achieve the assigned goals. It specifies a
predetermined and committed future course of action, based
on discussions and decisions made on the current knowledge
and estimation of future trends.

3
Scheduling means putting the plan on a calendar time scale.
During execution stage, monitoring brings out the progress
made against the scheduled base line. Control deals with
formulation of and implementation of corrective actions
necessary for achieving project objectives. In the construction
phase of project development, planning and controlling are in
separable. During project implementation, the plan-do-
monitor-communicate re-plan(when necessary) is a
continuous processes. In this context , the term planning
broadly includes the plan-making, scheduling and controlling
processes. (E.g. project management process, relation and
interaction of the process groups)

4
• Process involved in construction planning can
broadly be divide in two;

5
• The construction planning process is stimulated through the study
of documents.
• These documents include-but not limited to;
 The available technical and commercial studies and investigations
 Designs and drawings
 Estimate of quantities
 Construction method statements
 Project planning data
 Contract documents
 Site conditions
 Working regulations
 Market survey
 Local resource
 Project environment and,
 The client’s organization
The planning process takes into account the strengths and weakness of
the organization as well as the anticipated opportunities and risks.

6
• Planning follows a systematic approach. Various planning techniques are employed to
systematize and transform the mental thought process into a concrete project plan.
Project Planning Process

Planning data collection Where to look for data? Studying the relevant documents
Planning time What is to be done? Define scope of the work
What are the activities involved? Breakdown project into activities
How it can be done? Developing network plans
When it is to be done? Scheduling work
Where it is to be done? Charting site layout

Planning resource What is needed to do it? Forecasting resource requirement


Planning the 4M’S
Who is to do it? Designing organizational structure
Allocate tasks and resource
Establishing responsibility centers
Planning implementation How to account performance? Designing control systems
How to monitor performance? Formulating monitoring methodology

How to communicate information? Developing project management


information system(PMIS)

7
Project Planning Techniques
Stages Planning process Techniques/methods

Planning time Breaking down project work Work breakdown


Developing time network plan Network Analysis, BC&LOB

Scheduling Time limited scheduling


Resource limited scheduling
Planning resources Forecasting resource requirement Forecasting
Planning manpower requirement Manpower scheduling
Planning materials requirement Materials scheduling
Planning equipment procurement Equipment selection and
scheduling
Budgeting costs Cost planning and budgeting
Designing organizational structure Organization design
Allocating tasks and resources Resource allocation
Planning Formulating monitoring methodology Resource productivity control
implementation Time control
Contribution control
Budgetary control

8
Types of project plans
Planning the entire project from its inception to completion requires
a vast coverage, varied skills, and different types of plans. The nature
of plan encountered in a typical construction projects are;

Project plan

Inception stage Engineering stage Implementation stage


Project feasibility Project preliminary Project
plan plan construction Plan

9
• Project feasibility plan
Planning by the client begins as soon as he gets the
idea about developing the facility to fulfill certain
motives. His early thought process conceptualize the
cost, time and benefit implications of the project. Only
when he is convinced about the soundness of his idea
does, he decide to go ahead with the feasibility studies.
The feasibility study team examines the needs of the
client and ways to fulfill them. It defines the over all
scope of work, and assess the time and costs of
accomplishing the project. This outline plan, developed
by the feasibility team during inception stage, forms
the basis for identifying projects objectives and
developing the project plan.

10
• Project preliminary plan

Acceptance of the feasibility studies marks the commencement of


the preliminary plan-making process. It main aim is to provide
direction to the client mangers and staff employed during the
development phase of the project. The project preliminary plan
forms the basis for developing the project construction plan. The
preliminary plan includes;
 A project time schedule and skeleton network to highlight the work
dependencies, project milestones and the expected project
completion time
 The project design and drawings preparation schedule
 A breakdown of project work into contracts, along with a schedule
of contracting activities, including the tender preparation period,
tender finalization period, and the contracted works
commencement and completion dates.
 A resource preliminary forecast indicating the phased requirements
of men, important materials, plant and machinery.
 Resource procurement system
 Project organization and staffing pattern
 Preliminary forecast of funds requirement 11
• Project construction plan
the project construction plan includes;
Time plan it depicts the schedule of project
activities for completion of the project within the
specified time.
Resource plan it forecasts the required input
resources of men, Machinery and money for achieving
the project completion time target and cost objective.
Plan for controlling project  it encompasses the
design of control system, monitoring system,
codification system and the computerized information
system.
• The construction projects plan development
process is divided into three parts; time planning,
resource planning and project control system
planning. These parts are interdependent and not
mutually exclusive. 12
2. Time planning process
• A plan prepared well before the commencement of construction in
a project, can be instrumental in formulating directions,
coordinating functions, setting targets, forecasting resources,
budgeting costs, controlling performance and motivating people.
However, the absence of a project time plan almost makes certain
that a project can not be completed on schedule without incurring
extra costs.(Benefit of planning)
• The time planning process involves the following three stages;
(a) Project work breakdown this means breaking sown the scope of
project work into its constitute sub-projects, tasks, work packages
and activities.
(b) Modeling and analyzing networks this include developing logic
diagrams or sub-networks; integrating these to develop a time-
planning model(Usually a network), and; analyzing this model to
determine the project completion time.
(c) Scheduling work programme this involves putting the time plan
on a calendar basis, and using the scheduled programme to
forecast inputs and out puts.

13
3. Work scheduling process
• Scheduling means putting the plan on calendar basis. A project
network shows the sequence and interferences of activities, their time
durations and earliest and latest completion time, but this needs to be
scheduled to determine commence and termination dates of each
activity, using optimum resources or working within resource
constraints. A time schedule outlines the project work programme, it
is a time table of work.

• Scheduling procedure
 The scheduling methodology varies with the planning techniques and
the nature of the task to be performed. A tool containing the
commonly used techniques for planning, scheduling and monitoring is
indicated in the next slide.
 Each Scheduling Techniques has its own merits and demerits. But
ultimately scheduling are best presented in the bar chart form for ease
of comprehension and communication. These bar charts are
supplemented with appropriate planning technique for monitoring
the progress of the projects.
14
Commonly used time planning techniques in
construction project management
SI.N Nature of the project Planning Scheduling Monitoring Displaying
O

1 Simple project/sub
project
(a)Non-repetitive work Bar Chart Bar Chart Bar Chart Bar Chart
(b)Repetitive work
LOB LOB LOB LOB/Bar chart

2 Complex sub-projects
(a)Deterministic Time scale
(b)Probabilistic
CPM Bar Chart
PERT Network CPM
>> >>

3 Complex Projects
(a)Non-repetitive W. PNA Bar Chart PNA Bar Chart
(b)Repetitive work PNA LOB LOB Bar Chart/LOB
(c)Probabilistic PERT Time Scale network PERT Bar Chart

CPM-Critical Path
PERT-Programme Evaluation and Review Techniques BC-Bar Chart
PNA- Precedence Network Analysis TSN-Time Scale Network/Logic Bar Chart
LOB-Line of Balance 15
• The scheduling procedures, depending upon
type of project can be broadly divided into
two categories;
1. Scheduling non-repetitive network based
projects
2. Scheduling repetitive projects using line of
balance techniques

16
1. Procedure for Scheduling non-repetitive network
based projects
 Outline scheduling constraints
 Design scheduling calendar
 List activities in order of sensitivity
 Draw earliest start time schedule
 Determine resource optimization criteria
 Schedule critical activities
 Schedule non-critical activities
 validate time objectives
 Schedule other resource
 Schedule within resource constraints
 Schedule repetitive work projects

17
2. Procedure for Scheduling repetitive projects
using line of balance techniques
 Outline schedule constraints
 Tabulate scheduling data of a unit work cycle
 Prepare a logic diagram of a unit work cycle
 chart scheduling calendar
 Prepare earliest start time schedule
 Analyze earliest start time schedule
 Prepare optimum schedule leaving adequate
buffer
 Draw Line-of-Balance work schedule

18
4. Resource planning Process
• Forecasting inputs and outputs
The inputs and output forecast includes the data-wise requirement of project
manpower, major materials, costly equipment, production costs, earned value of
work done and the expected income. The basis of forecasting is the schedule of
work.
 Inputs and outputs forecast aids in conceptualization of project. It indicates the
quantum of resources required for executing is project the output expected. The
pattern of input resource form the base for evaluating such needs as workers’
accommodation, materials storage, equipment work-load and project funding
pattern.

• Planning construction work force


the project manpower planning primarily focuses on determining the size of the
project work force, its structuring into functional groups and workers’ teams, and
scheduling the manpower recruitment/induction to match the task requirements.
 This process chiefly involves identifying the trades or the skills required,
establishing productivity standards to determine the number of workers needed to
perform a given job in the specified time, data-wise forecasting of the workers’
requirements for accomplishing the project work, and , finally, organizing the
planned workforce into operating work-teams having assigned programmed tasks.

19
Resource planning Process
• Planning construction materials

the construction materials planning involves identifying the materials


required, estimating quantities, defining specifications, forecasting
requirements, locating sources for procurement, getting material samples
approved, designing materials inventory, and developing the procurement
plan to ensure a smooth flow of materials till the connected construction
works are completed at the project site.

• Planning construction equipments


 Equipment planning for a project aims at identifying the construction tasks
to be undertaken by mechanical equipment, assessing the equipment
required, exploring the equipment procurement options and, finally,
participating in the decision-making for selecting the equipment

• Planning construction standard costs & planning construction Budgets.


the construction cost plan uses standard cost concept for costing work-
packages, work items or activities. The standard cost technique finds wide
applications in estimating, forecasting, budgeting, accounting and
controlling costs.
20
5. Project Control Process
• Control involves organizing the control responsibility centers,
designing accounting and monitoring methodology, codifying data
and developing the information system so as to make-decisions
speedily. It also includes identifying the problem areas, making risk-
taking decision to tackle the problem, organizing and directing
resources needed to carry out these decisions, and measuring the
results of these decisions against targeted expectations through
organized and systematic feedback.

• An efficient control system improves productivity of men and


materials, economizes employment of resources, enables
understanding of time and cost behaviors, provides yard-stick for
measuring performance, generates information for updating
resource planning and costing norms, prevents pilferage and frauds
and assists in formulating bonus or incentives scheme for
motivating people.

21
Project Control Process
• Project control Methodology
the project control follows the system concept. Each organizational unit in a project,
usually referred to as the responsibility center, can be viewed as a sub-systems are
highly interdependent and interactive. The performance objective of a sub-system are
stated in terms of the parameters to the controlled. These parameters include the time
progress targets, resource productivity standards and the work-package standard costs
and sales target. Each sub-system accounts for its performance and reports its actual
performance to the monitor. And it is these reports that serve as early warning signals of
ensuing dangers.
• Control resource productivity
productivity control aims at ensuring efficient utilization of inputs of men, materials and
equipments by identifying cases of their wastage as well as affecting improvement to
minimize it. The case of wastage are located by analyzing variances and efficiency of
planned and on-site actual productivity;
Productivity performance variance=planned productivity-actual productivity
Productivity performance index=planned productivity/actual productivity

The methodology used for controlling the parameters (Labor productivity, equipment
productivity and material productivity) can be divided into four stages;
Defining the control purpose, measuring the actual performance, computing the
productivity performance variance and identifying their causes for effecting
improvements.

22
Project Control Process
• Control Costs
It involves the processing of reports received from various
responsibility centers or operating divisions, relating the costs
incurred with the set standards, analyzing the reason for any
variances and presenting the results to the project management for
decision-making and initiating remedial measures.
• Controlling time
the project time control aims at timely execution of work as per the
work programme and applications of corrective measures in case of
deviations.
 The time control process involves the monitoring of time status by
updating the project network and time schedules, reviewing
durations of balance activities, computing deviations and evaluating
the implication of deviations on project time objective by time-
analyzing the project network. It includes formulating remedial
measures including what-if analysis, time crashing, re-planning, re-
forecasting and re-mobilizing resources under changed situations
with a view to accomplish the time objective.
23
[Link] of planning , Scheduling and controlling
projects
• Planning benefit
 Project plan clearly defines project scope of work. It breaks down project
objectives into clear, identifiable, quantifiable, attainable and verifiable
goals which are assigned to individuals and responsibility centers for
accomplishment.
 Project plan aids the management in performing its functions efficiently
and effectively.
 Project plan forms the basis of a project operations and directions and
shows how the project is to be run. It also specifies the committed future
course of actions on the basis of current decision made with available
knowledge of future.
 Project plan identifies critical activities, thus enabling the managing of
project by exception.
 Project plan provides the yard-stick for measuring progress and evaluating
resources performances
 project plan has build in flexibility in the form of floats, to navigate
changes in the planned path for meeting fast changing environment.
 Project plan creates healthy environment. It promotes unity of purpose
among functional diversities to make people time and cost conscious. It
commits individuals to asks and motivates them to achieve challenging
targets. 24
Importance of planning , Scheduling and controlling
projects
• Schedule Benefits
 Schedule simplifying a project plan.
 Schedule validates time objective. work
schedule shows the planned sequence of
activities, data-wise.
 Schedule aid in optimization of resource
employed.
 Schedule enables forecasting of input resources
and earned value to indicate the pattern of
requirement and the financial state of the project
in terms of investment, expenditure, output and
income.
 Schedule brings out implication of time and
resource constraints. 25
Importance of planning , Scheduling and controlling
projects
• Control Benefit
 The control system aids the management at various levels to perform its
functions efficiently and effectively for achieving the overall project objectives.
 The benefits which can be derived at each level of management through an
effective control system are;

Director

GM/PM

Managers

Supervisor/Operators
26
• Operational control at Supervisory Level

In improves productivity by;


 Minimize unproductive man hours
 Preventing wastage of materials
 Economizing plant and machinery utilization
 Reducing activity execution time

• Administrative control at managerial level: it assists in ensuring project


organization efficiency and effectiveness by;

updating the work quantities status and determining the balance scope of
work
analyzing project time status and its implication on project time objectives.
evaluating production cost status and forecasting future trends.
calculating income status and forecasting cash inflows
computing budget status and forecasting cash inflows
 Computing budgets status and analyzing the implication of variance of
future expenditure.

27
• Directional control at general manager's/ project manager’s level

It helps in formulating and directing polices for achievement of project


objectives
 Analyzing project time cost behavior and making decisions on time saving
when required
 Reviewing project costs and profitability, and making profitability
improvement decisions concerning wastage reductions through rigorous
cost control, value engineering techniques, cost benefits analysis, workers
incentive schemes and alternate methods of construction which cost less.

• Strategic control at corporate level


It provides information concerning corporate goals and assistance in
formulating corporate strategies by;

Determining overall profitability


budgeting and allocating funds and resources.
 Updating the company’s planning norms and unit rates for securing future
works.

28
Lecture-2
Chapter two(Time planning)
Project work Breakdown
Project Network Analysis (part I
CPM&PERT)

29
Project work Breakdown
Project work-breakdown methodology enables
splitting of the project work into hierarchical
work-breakdown levels of;
sub-projects
tasks
Work packages
Activities
Each activity represents an identifiable lower-level
job which consumes time, and possibly resource.
Construction projects are best organized by tasks into
task responsibility centers. They are best managed by
work packages and best planned and mentored by
activities.

30
Project work Breakdown levels
the project work-breakdown process involves breaking
down of the project work into manageable parts arranged
in a hierarchical order till the desired level is reached.
work-breakdown levels;
 Sub-project level-Mini project/task groups
 Tasks level-a task is an identifiable and deliverable major work, is used
in the project-summary plan, the design-Preparation plan and the
contract tendering plan.
 Work package level-Each work package contains a sizable, identifiable,
measurable, costable and controllable package of work. In the project
master plan or the contracted works-plan, each work package is
assigned its performance objective. These are generally stated in
terms of its completion period, standard cost and resource
productivity standard.
 Activity level
 Operational level
the work breakdown structure of a project forms the basis
for listing of activities, modification of systems, storing data
by hierarchy levels, structuring of work organization and
managing similar-scope multi-projects 31
Mega project
Real Estate Development
(Programme)

Residential Buildings Service Buildings Recreation Centers


Sub projects

Educational Buildings Health Centre Shopping centre

Tasks
Sub structure Super Structure Roofing Finishing

Base construction Footing Con Plinth wall Con Ground floor Con Work package

Earth work Base preparation Blinding

Activities
Layout Excavation Leveling/compactin
g
• Example, Operation involved in concreting
are;
Cleaning and preparing inner side of the raft for
concreting
Pumping concrete
Spreading and vibrating concrete
Finishing of top concrete surface

33
Assessing Activity Duration
Duration of an activity is defined as the expected economical
transaction time. The estimation of time is based upon the current
practices carried out in an organized manner under the normal
prevailing conditions, and its assessment is done preferably, by the
person responsible for its performance.
 duration estimation is based on current practices this implies
that the estimation is based on the present knowledge of the
method of transaction in an economical way; it may undergo a
change with the passage of time or with improved techniques.
 Under normal prevailing site condition using economical resource
 activity is Performed in an organized manner  breaking down
activity into elements, matching optimum resource for each
elements, laying down a systematic way method of execution,
specifying objectives and assigning responsibility .
 Responsible person this makes the duration estimate realistic
and meaningful.

34
the construction activity accomplishment process combines resources: men,
materials, and machinery. the first step in duration estimation is the methodology
to be used for transforming these input resources into the desired activity.  the
method of choosing and combining these resource may vary!
Duration Estimation methods
1. one time estimate
the estimation of duration is based on one of the following;
i. Planning data
ii. Past experience or execution of a similar project
iii. Average time assessed by a group of executives.
2. Three time estimate
 When the exact duration of an activity, like research and development, is not
certain, the three-times estimate is used to compute its expected duration.
 Application in construction projects -->in certain areas of construction
projects where time is the main criterion and the resources employed
are of secondary consideration;

Te=[To+4Tm+Tp]/6 To, everything goes extremely well with


no delays, Tp everything goes wrong
 Application in Construction Projects
1. Planning of the projects especially, at the feasibility stage
2. The Skelton networks enclosed with the tender documents.
3. The contracted works, where time is the main consideration for management 35
4. The complex structures, where the exact duration estimate is difficult to assess.
3. Trapezoidal distribution estimate
in practice, the profile of most activities takes the
shape of trapezoidal distribution. The build-up and
rundown phase can be expressed in terms of total
activity duration.

36
Duration Estimation procedure
Estimating the quantity of work
Deciding the labor and material constants
Assessing the effective activity-wise
employment of resource
Estimate the activity completion period

Completion period=Quantity of work/[output per unit of resource x


resource earmarked]
t=Q/(nXp)

37
Network analysis
CPM-> is best suited for activities with
deterministic single-time duration
PERT->useful for project feasibility reports or
tasks involving uncertainties.
PN->commonly used technique for time planning
of construction projects.

38
CPM Network analysis Fundamentals
Network elements
•Event or Milestone
–A point in time when certain conditions have been fulfilled,
such as the start or completion of one or more activities
–Unlike an activity, does not consume time or resources
–Hence, expresses a state of being
–Activities take place between events
•Activity
–An item of work that consumes time and resources to
produce some result

39
Dummy Activity
• This activity does not involve
consumption of resources, and therefore
does not need any time to be
‘completed’.
• It is used to define interdependence
between activities and included in a
network for logical and mathematical
reasons as will be shown later.

40
Illustration of event, activity, and dummy activity

A B

10 30 50

C D

20 40 60

41
• Critical Path
– The series of activities all of which must finish on
time for the whole project to finish on time
– Sometimes described as the longest path through
a network, hence the shortest project time
– A critical path has zero float
– A critical path assumes that the network logic is
sound

42
• Float or Slack Time
– The additional time available to complete a non-
critical activity
• Leads and Lags
– An imposed modification of the logical
relationship between activities
– To accelerate or delay the apparent natural order

43
Illustration for TF, IF, and FF calculation

TLi T.F TLj


Duration

Duration
I.F
TEi TEj
Duration F.F

44
Total Float
• Total Float in an activity (i,j) [TF(i,j)]
• Total float is the amount of time by which the
start of an activity may be delayed without
causing a delay in the completion of the
project. This is calculated as (TF(i,j) = [LST(i,j)]–
[EST(i,j)]) or ([LFT(i,j)]– [EFT(i,j)])

45
Free Float
• Free float is the amount of time by which the
start of an activity may be delayed without
delaying the start of a following activity.
• Free Float = (Earliest start time of the
following activity – Duration of the activity –
Earliest start time of the activity) that is Free
Float = TEj- TEi -D

46
Independent Float
• It is defined as the difference in Total Float
and Free Float. In other words: Interference
Float= Total Float – Free Float.

47
Network Preparation
tabulate the network logic drawing the arrow diagrams step-by-step.
Logic activity can be tabulated as
-> which activity/ies preceded & Succeed this activity?
->Are there any logical constraints imposed on this activity?
->Is it the final activity?

Example
Activity Preceding Succeeding Remarks
A - B,H
B A G,J
C - H
D - E,G
E D F
F E - Last activity
G B,D - Last activity
H A,C J
J B,H - Last activity 48
Logic diagram of activities
B
G
A
C H J

D E F

Rearrange to avoid crossing of arrows, inserting events to mark the start


and completion of activities and writing the duration of each activity.
E
2 F
1
D G
5
3
A B J
4 3
C 2
H
2
3

49
Numbering Events

B
G
A
C H J

D E F

E
2
1 2 F
1
D G
5 5 8
3
A B J
0 3 4
4 3
C 2
H 7
2 6
3

50
Event Timings, Activity Timings and
Associated Terms
• Start and finish times
• Earliest Start Time of an activity (i,j) [EST(i,j)]
• This is the earliest that the activity (i,j) can be
started, i.e., all the necessary preconditions are met.
• Earliest Finish Time of an activity (i,j) [EFT(i,j)]
• This is the earliest that an activity can be completed.
Mathematically, the relationship can be expressed as
• EFT (i,j)= EST(i,j) + D(i,j)

51
• Latest Finish Time of an activity (i,j) [LFT(i,j)]
– the latest time that an activity needs to be
completed in order that there is no delay in the
project completion.
• Latest Start Time of an activity (i,j) [LST(i,j)]
– the latest time when an activity must be started, in
order that there is no delay in the project
completion.

LST(i,j) = LFT(i,j) – D(i,j)

52
Path and critical path
• Any series of activities connecting the starting
point to the finishing point can be said to
define a ‘path’ and indeed in a project having
several activities, several such ‘paths’ can be
identified.
• Among these paths, the ‘critical path’ is
defined as one that gives the longest time of
completion (of the project), which also defines
the shortest possible project time.

53
Forward and Backward Pass
• The forward pass moves from the ‘start’ node towards the
‘finish’ node, and basically calculates the earliest occurrence
times of all events.
• Considering that the project starts at time zero, the earliest
occurrence time at each node is found by going from node to
node in the order of increasing node numbers keeping in
mind the logical relationships between the nodes as shown by
the connecting arrows.
• The earliest occurrence time for any node can be estimated
from the (maximum) time taken to reach that node from the
different incoming arrows.

54
EXAMPLE
Task ID Duration Dependency

A 7
B 3

C 6 A
D 3 B
E 3 D,F
F 2 B
G 3 C
H 2 E,G
55
Network of the example
C
2 6 3 G
A 3
7
H
A
B D 6 E 7 8
1
4
3
4 3 3 2
F
2
5

56
Network of the example
C
2 6
3
G
A 3
7
H
A
B D 6 E 7 8
1
4
3
4 3 3 2
F
2
5

57
Computations
Act. Duration EST EFT LST LFT TF

A 7 0 7 0 7 0
B 3 0 3 7 10 7
C 6 7 13 7 13 0
D 3 3 6 10 13 7
E 3 6 9 13 16 7
F 2 3 5 11 13 8
G 3 13 16 13 16 0
H 2 16 18 16 18 0 58
Project Network Analysis PERT
Project Work Scheduling

59
PERT
Example of three time estimate
• For an activity “design foundation”
– the optimistic time = 14 days
– the most likely time = 18 days and
– the pessimistic time estimates = 28 days
• The PERT technique assumes that the three
time estimates of an activity are random
variables and the frequency distribution of
duration of an activity takes the shape of Beta
distribution
60
Beta distribution for the activity ‘design foundation’

Expected Time te
te=19

to=14 tm=18 tp=28

Activity duration (in days)

61
• The average or expected time it is given by
• te= (to+4tm+tp)/6
• For the case of ‘design foundation’, te can be
worked out to be 19 days [(14 + 4 x18 +
28)/6].
• The fact that te > tm in this case, is a reflection
of the extreme position of tp and the
asymmetry in the Beta distribution, even
though computationally the weights given to
to and tp is the same.

62
• There has been a lot of criticism on the approach of
obtaining three ‘‘valid’’ time estimates to put into
the PERT formulas.
• It is often difficult to arrive at one activity-time
estimate; three subjective definitions of such
estimates do not help the matter (how optimistic
and pessimistic should one be).
• Nevertheless, the three time estimate also provides
the advantages of ascertaining the variability or
uncertainty associated with a particular set of
estimate.
63
• For example, suppose we have two sets of
estimate provided by the different estimator
for the same ‘design foundation’ activity.
• In order of (te, tm,tp), let the first set of
estimate (14, 18, 28) and the other set of
estimates be (17, 18, 25).
• There is large variability in the estimates of
first estimator compared to the second one,
even though the expected or average activity
duration turns out to be 19 in both the cases
(verify!!!).

64
• In order to measure the uncertainty
associated with the estimate of duration of an
activity, the standard deviation (St) and the
variance Vt are determined, which in PERT are
defined as:
• St = (tp-to)/6 and
• Vt = (St)2
• The formula for St indicates that it is one sixth
of the difference between the two extreme
time estimates.

65
• Further, the greater the uncertainty in time
estimates, the greater the value of (tp-to), and
the more spread out will be the distribution
curve.
• A high St represents a high degree of
uncertainty regarding activity times. In other
words there is a greater chance that the actual
time required to complete the activity will
differ significantly from the expected time te.

66
• For the two sets of estimate used in ‘design
activity’, the St and Vt would be 2.33 days and
5.44 respectively for first set of estimates
while 1.33 days and 1.77 are the
corresponding values of St and Vt for the
second set of estimates.
The expected length or duration of project Te
is calculated by summing up the expected
duration te’s of activities on the critical path.

67
• The critical path is determined following the
forward pass and backward pass explained
earlier.
• The variance associated with the critical path
is the sum of variances associated with the
activities on the critical path.

68
In case, there is more than one critical path in
a project network, then the path with the
largest variance is chosen to determine the VT
and ST. Mathematically,
• Te= ∑te
• VT = ∑Vt and
• ST=SVT

69
• VT and ST represent variability in the expected
project duration. The higher the VT and ST
values, the more likely it is that the time
required to complete the project will differ
from the expected project length Te.
• As was pointed earlier, to, tm, and tp are
assumed to be a random variable following
Beta distribution in the PERT technique.

70
• Now that, te is the weighted sum of to, tm, and
tp, it is also treated as a random variable.
Since, Te is the sum of te’s it indeed is a
random variable.
• The distribution of Te follows normal
distribution according to the Central Limit
Theorem of statistics.

71
• The behavior of normal distribution is well
known and a number of assumptions can be
drawn which could be useful to a planner or a
project manager.
• For example, it is possible to compute the
probability (index) of whether a project (or a
key stage therein) will be completed on or
before their schedule date(s).
• Of course, all this is possible under the
assumption that the activities of the projects
are statistically independent of each other.

72
• Suppose, it is required to compute the probability of
completing the project within a target duration of TD
days.
• Now given the Te of the project it is possible to
calculate the deviation of TD from Te in units of
standard deviation.
• This is calculated from the normal distribution table.
To adopt the table, a ratio called the standardised
deviation or more often the normal deviate, Z, is
derived. Z is defined as the ratio of the difference in
TD and Te to ST. Mathematically, Z= (TD- Te)/ ST,

73
Z= (TD- Te)/ ST

Here Z is the number of standard deviations by which TD exceeds Te.


Note that TD might be less than Te, in which case Z is negative. Now the
probability measure the originally sought may be obtained by referring to
the following table, extracted from a standard normal table:

Z Probability of meeting Z Probability of meeting


Due Date Due Date
3.0 .999 1.0 .841
2.8 .997 0.8 .788
2.6 .995 0.6 .726
2.4 .992
0.4 .655
2.2 .986
0.2 .579
2.0 .977
0.0 .500
1.8 .964
1.6 .945
1.4 .919
74
1.2 .885
Z= (TD- Te)/ ST

Z Probability of meeting Z Probability of meeting


Due Date Due Date

-0.2 .421
-2.2 .014
-.4 .345
-.6 .274 -2.4 .008
-.8 .212
-2.6 .005
-1.0 .159

-1.2 .115 -2.8 .003


-1.4 .081
-3.0 .001
-1.6 .055
-1.8 .036
-2.0 .023

75
Example: PERT Diagram

E (5,14, 17)
30 50
13
H(1, 4,7)
B (2,5,14) F (2,5,14) 2
6 D (1,2,3) 2 6

A
C (6, 15, 30) 40 G (4, 5, 12) 60
10 A (3,12,21) 20
4
12 16 6

76
Expected duration, standard deviations and
variances for activities
Duration (days) Expected Standard Variance Vt
Activity Optimisti Most Pessimisti duration deviation St = (St)2
Id c likely c duration (days) te= = (tp-to)/6
duration duration tp (to+4tm+tp)/6
to tm
Col 1 Col 2 Col 3 Col 4 Col 5 Col6 Col 7
10-20 3 12 21 12 3 9
20-30 2 5 14 6 2 4
20-40 6 15 30 16 4 16
30-40 1 2 3 2 1/3 1/9
30-50 5 14 17 13 2 4
40-50 2 5 14 6 2 4
40-60 4 5 12 6 4/3 16/9
77
50-60 1 4 7 2 1 1
Computation of early occurrence and late
occurrence times

No Early occurrence time Late occurrence time Slack


de

10 0 12-12=0 0
20 0+12=12 Min of [(21-6)=15 and (28 - 0
16)=12]=12
30 12+6=18 Min of [(34-13)=21 and (28 - 3
2)=26]=21
40 Max of [(12+16)=28 and Min of [(36-6)=30 and (34 - 0
(18+2)=20]=28 6)=28]=28
50 Max of [(18+13)=31 and 36-2=34 0
(28+6)=34]=34
60 Max of [(34+2)=36 and 36 0
(28+6)=34]=36 78
• Now, the problem of computing the
probability of meeting target duration (TD),
such as 42 days shown in the figure is quite
simple. Since the total area under the normal
curve is exactly one, the cross hatched area
under the normal curve is directly the
probability that the actual completion time,
will be equal to, or less than, 42 days.

• In this case Z= (TD- TE)/ ST, = (42-36)/ 5.48 =


1.09 standard deviations.

79
• In other words, the target duration TD is 1.09
standard deviations greater than the expected
time TE=36 days.
• The equivalent probability P(Z=1.09) can be
read off a normal probability distribution. This
corresponds to a probability of 0.862
(86.2%)which implies that there is a 86.2%
chance that the project will get completed
within 42 days.

80
Meeting a Target Duration TD

1.09 Standard Deviations

P(t  42 days)
 82.6%

36 42

Time - days
81
Meeting a Target Duration TD

0 Standard Deviations

P(t  36 days)
 50%

36
36
Time - days
82
Meeting a Target Duration TD

0.55 Standard Deviations

P(t  33 days)
 29.1%

33 36

Time - days
83
• Assuming that time now is zero, one may expect this
project to end at time 36 days (corresponding
probability of achieving this target being 50%,
verify!!! Hint: TD=36, TE=36 ); and the probability
that it will end on or before the target duration of 42,
without expediting the project is approximately
86.2%.
• On the other hand, if one were to schedule towards
TD= 33 days; herein TD<TE; i.e. Z=-0.55 (Note the
negative sign); the corresponding probability would
be 0.291, which is really a very bleak situation.

84
• In the above, the phrase ‘without expediting’ is very
important.
• In certain projects schedules always may be met by
some means or another,
• for example,
– by changing the schedule,
– by changing the project requirement,
– by adding further personnel or facilities, etc.
• However, here it is implied that the probability being
computed hereinabove is the one that the original
schedule will be met without having to expedite the
work in some way or another.
85
• The feature in PERT on the computation of
probability of completing the project in a
particular duration is quite useful especially
for negotiating the duration with an owner by
the executing agency.
• For example, while agreeing on a particular
duration, the executing agency would like to
judge his chances on completing the project in
that duration.

86
• For being reasonably sure of a particular duration, he
would like to attain a probability of more than 95%.
• Thus for the same example, suppose the executing
agency is asked to provide the projected duration for
the project, the agency would find out the duration
corresponding to Z(P=0.95)= 1.65, thus the target
duration for this case could be TD= TE + 1.65 x ST= 36
+ 1.65 x 5.48= approximately 45 days. In other
words, the executing agency would be quite
confident of completing the project in 45 days.

87
LECTURE 3
PRECEDENCE NETWORK ANALYSIS

88
PRECEDENCE NETWORK
 it is AON diagram with activities on nodes or boxes and
precedence relationship shown as arrow but precedence
network without arrows also is possible!
 numbering of activity also follows rules similar to that followed
in PERT and CPM
 time estimate for the activity could be one time estimate or
three time estimate
 But the three time estimate needs to be converted into single
time before using in the network, by computing the expected time!
89
PRECEDENCE NETWORK LAYOUT

 many variants of the boxes or nodes in a precedence network

possible based on information the user desires


 For illustration, a typical box used for all the preceding
examples
• has been divided into three horizontal parts, top, middle and
bottom
• top & bottom are again divided vertically into three
compartments, left, center and right

 Sample network diagram given in the following slide

90
PRECEDENCE NETWORK
 Common type of relationship used in CPM and PERT
• FS – Finish to Start relationship
 In reality, other relationships are possible, i.e.
• SS – Start to Start
• SF – Start to Finish
• FF – Finish to Finish
 Precedence networks incorporates the mentioned four types of
relationships

91
FS – Finish to Start relationship
 Task ‘B’ can’t start unless Task ‘A’ is completed
 For (e.g.) consider a project with two tasks
• Task 1 – Laying bricks
• Task 2 – Plastering
• Plastering can’t start until laying bricks is complete (common dependency)
 Case ‘a’:

12 5 17 17 15 32
FS=0
Laying Bricks Plastering
12 0 17 17 0 32

•There is no lead or lag


• Plaster commences after complete laying of bricks 92
FS – Finish to Start relationship (contd.)
 Case ‘b’:
12 5 17 24 15 39
FS=7
Laying Bricks Plastering
12 0 17 24 0 39
• There is a lead of 7 days
• Plaster commences 7 days after laying bricks

 Case ‘c’:

12 5 17 FS=-5
12 15 27
Laying Bricks Plastering
12 0 17 12 0 27
•There is a lag of 5 days
• Plaster commences 5 days before completion of laying bricks 93
PRECEDENCE NETWORK (contd.)
 Lead – Lag factors portrayed in two ways:

• lead-lag factors shown on arrow joining the two boxes


• introduction of ‘pseudo activity’ between the two
activities
 Pseudo activity method similar to the one adopted in CPM, PERT
 But this method results in a lengthy network and increases the
computational efforts

94
FS – Finish to Start relationship (pseudo
activity)
 Case ‘b’:
 Lead of 7 days described as a pseudo activity

12 5 17 FS=0 17 7 24 FS=0 24 15 39
Laying Bricks Pseudo activity
Plastering
12 0 17 17 0 24 24 0 39

95
FF – Finish to Finish relationship

 Task ‘B’ can’t finish unless Task ‘A’ finishes


 For (e.g.) consider a project with two tasks
• Task 1 – Add wiring
• Task 2 – Inspect electrical work
• “Inspect electrical work" can't finish until "Add
wiring" finishes

 Lead-Lag factors shown on the arrow

96
FF – Finish to Finish relationship (contd.)

 represented using a pseudo activity

97
SS – Start to Start relationship
 Task ‘B’ can’t start unless Task ‘A’ start

 For (e.g.) consider a project with two tasks


• Task 1 – Pour foundation
• Task 2 – Level concrete
• “Level concrete" can't begin until "Pour
foundation" begins
 Lead-Lag factors shown on the arrow

98
SS – Start to Start relationship (contd.)
 Represented using two activities- preceding activity in two
components and then proceeded
 disadvantage would be the additional list of activities and a
lengthy network. Similar to approach used in PERT/ CPM in
order to accommodate such type of relationships

99
SF – Start to Finish relationship
 Task ‘B’ can’t finish unless Task ‘A’ start

 SF dependency can be created between the task we want to


schedule just in time (the predecessor) and its related task (the
successor)
 If successor task updated also, it won't affect the scheduled
dates of the predecessor task
 Can be used for just-in-time scheduling up to a milestone or the
project finish date to minimize the risk of a task finishing late if its
dependent tasks slip
 SF not commonly used in precedence networks, but included
here to have a complete discussion. 100
SF – Start to Finish relationship (contd.)
 the two ways of representing the SF activity are as follows:

101
Illustration of dual relationship in
precedence network
SS =7

12 5 17 19 15 34
PCC C Raft
12 0 17 19 0 34
FF =1
more than one type of relationships has been assigned
between two activities in the given network, which is an
additional advantage of precedence network
102
Important Points
• Determination of critical path is not that simple as
compared to network techniques such as PERT and
CPM.
• The process is identical if only FS relationship is used
in the network.
• If the activities have SS, FF, and SF relationship in the
network, then determining critical path becomes
difficult especially if manual computations are
performed.

103
Important Points
• Further, in precedence network, the activities on
critical path may not be connected clearly in a
sequence!
• Also, the total slack definition adopted (LS-ES or LF-
EF) for networks such as PERT/CPM may or may not
give same values!

104
SAMPLE PRECEDENCE NETWORK (contd.)

105
PRECEDENCE NETWORK LAYOUT (contd.)
 top left compartment – earliest start time

 top centre compartment – activity duration


 top right compartment – earliest finish time
 middle left portion – activity description
 middle right – node number
 bottom left compartment – latest start time
 bottom centre compartment – total float
 bottom right compartment – latest finish time

106
PRECEDENCE NETWORK PROCEDURE

For the above sample example the Forward and


Backward passes is computed in similar manner as
CPM & PERT since only FS type relationship is used!
 Critical path(s) is (are) identified next

 This has activities with zero float logically linked between


the start activity and finish activity
 Float is the difference between the late start and early
start

107
Explanation of determination of early start and early
finish activity times

Nod Activit Duratio ES Remarks EFT Remarks


e y n T
10 EW1 2 0 0 start activity, 2 EFT10=EST10+d10
EST10=0
20 EW2 2 2 EST20=EFT10+FS10-20 4 EFT20=EST20+d20
Hence, EST20=2+0 Hence, EFT20=2+2

108
Explanation of determination of late finish and late
start activity times

Node Activity Duration LFT Remarks LST Remarks

109
EXAMPLE
SS = 4
2 5

7 12 FF = 8
FS = 0 SS = 7
FF = 5
FS = 1 FS = 3 SS = 5 SS = 3
1 3 7 8 9

8 FS = 2 11 6 5 8
FF = 4
FS = 0
4 FS = 4 6

10 4

110
FORWARD PASS
Node Duration ESTi Remarks EFT Remarks
duri

1 8 0 0,Start Activity 8 EFT1 = EST1 +


dur1
EST1 = 0
=0+8=0
2 7 8 EST2 = EFT1 + FS1-2 10 EFT2 = EST2 +
dur2
=8+0=8
= 8 + 7 = 15
4 10 10 EST4 = EFT1 + FS1-4 20 EFT4 = EST4 +
dur4
= 8 + 2 = 10
= 10 + 10 =
20
3 11 13 EST3 = EFT1 + FS1-3 24 EFT3 = EST3+
(Max dur3
=8+1=9
of
= 13 + 11 =
9,13) EST3= EFT4 + FF3-4-dur3
24
=20 + 4-11=13
111
FORWARD PASS

Node Duration ESTi Remarks EFT Remarks


duri

5 12 20 (Max EST5 = EST2 + SS2-5 32 EFT5 = EST5 +


of 12, dur5
= 8 + 4 = 12
20,17)
= 20 + 12 =
EST5= EST3 + SS3-5
32
=13 + 7=20
EST5= EFT3 + FF3-5-dur5
=24 + 5-12=17
6 4 24 EST6 = EFT4 + FS4-6 28 EFT6 = EST6 +
dur6
= 20 + 4 = 24
= 24 + 4 =
28

112
Node Duration ESTi Remarks EFT Remarks
duri

7 6 34 EST6 = EFT3 + FS3-7 40 EFT7 = EST7+


dur7
Max of = 24 + 3 = 27
(27,34) = 34 + 6 =
EST6= EFT5 + FF5-7-
40
dur7
=32 + 8-6=34

8 5 39 EST8 = EFT6 + FS6-8 5 EFT8 = EST8 +


dur8
Max of = 28 + 0 = 28
(28, = 39 + 5 =
EST8= EST7 + SS7-8
39) 44
=34 +5 = 39
9 8 42 EST9= EST8 + SS8-9 50 EFT9 = EST9 +
dur9
=39 +3 = 42
= 42 + 8 = 50
113
BACKWARD PASS
Node Duration LFTi Remarks LST Remarks
duri
9 8 50 42

8 5 44 LFT8=LST9-SS8-9 + 39 44-5 =39


dur8
=42 -3 +5 = 44
7 6 40 LFT7=LST8-SS7-8 + 34 40-6= 34
dur7
=39 -5 +6 = 40

6 4 39 LFT6=LST8-FS6-8 35 39-4 =35


=39-0 =39
5 12 32 LFT5=LFT7-FF5-7 20 32-12 =20
=40-8 =32

114
BACKWARD PASS
Node Duration LFTi Remarks LST Remarks
duri
3 11 24 LFT3=LST5-SS3-5 + 13 24-11=13
dur3
Min
(24, 27, =20-7+11 = 24
31)
LFT3=LFT5-FF3-5
= 32 – 6 = 27
LFT3=LST7-FS3-7
=34-3 =31
4 10 20 LFT4=LFT3-FF3-4 10 20-10= 10
Min = 24 – 4 = 20
(20,31)
LFT4=LST6-FS4-6
=35-4 =31

115
BACKWARD PASS
Node Duration LFTi Remarks LST Remarks
duri
2 7 23 LFT2=LST5-SS2-5 + 16 23-7=16
dur2
=20-4+7 = 23
1 8 8 LFT1=LST2-FS1-2 0 8-8 = 0

Min =16-0 =16


(16,12,
LFT1=LST3-FS1-3
8)
=13-1 =12
LFT1=LST4-FS1-4
=10-2 =8

116
CRITICAL PATH is the path in which
• total float = 0
• is given by 1 – 4 – 3 – 5 – 7 – 8 – 9
Calculation of floats of activities

Node EST EFT LST LFT Float (LST-EST)


1 0 8 0 8 0
2 8 15 16 23 8
3 13 24 13 24 0
4 10 20 10 20 0
5 20 32 20 32 0
6 24 28 35 39 11
7 34 40 34 40 0
8 39 44 39 44 0
9 42 50 42 50 0
117
Critical Path

1 4 3 5 7 8 9

118
JOB
NU
MB 2 5
ER

1 3 7

4 6 8

TIME:
0 10 20 30 40 50

DAYS

119
JOB 1 4
NU
MB 3
ER
5

TIME:
0 10 20 30 40 50
DAYS

120
PRECEDENCE NETWORK PROCEDURE (contd.)
The procedure of forward and backward passes change if there
are relationships of type FF and SF
 In the forward pass
 activity start time is calculated with FS and SS relationships
 finish time is calculated with FF and SF relationship, along with the
activity duration

 If the early start and early finish so calculated differ by more


than the activities duration then the activity is split according to the
rules outlined in the algorithm!

121
Example – PRECEDENCE NETWORK PROCEDURE

 For illustrating the set of rules used in forward


pass and backward pass for illustrating activity time
computations and critical path determination, we
take up the following network
 relationships between different activities are self
explanatory

122
Example of a precedence network with FS, FF, SS, and SF relationships

123
FORWARD PASS EXPLANATION FOR THE
NETWORK
 We start from the first node and move to the last node
 Node 1
• EST (start) is set to 0 to commence the forward pass computations
• However, any other number can also be assigned for this purpose
• Since ‘start’ is not consuming any time, also the EFT of node 1 = 0
• EFT = EST + Duration (0) = 0 + 0 = 0
 Node 2
• EST2 = EFT1 + lead lag factor = 0 + 0 = 0
• EFT2 = EST2 + duration = 0 + 10 = 10
 Node 3
• EST3 = EFT1 + lead lag factor = 0 + 0 = 0
• EFT3 = EST3 + duration = 0 + 5 = 5

124
FORWARD PASS EXPLANATION FOR THE
NETWORK (contd.)

 Node 4
• EST4 = EFT1 + lead lag factor = 0 + 0 = 0
• EFT4 = EST4 + duration = 0 + 5 = 5
 Node 5
• Relationship with predecessor – FS
• EST5 = EFT2 + lead lag factor = 10 + 2 = 12
• EFT5 = EST5 + duration = 12 + 5 = 17

125
FORWARD PASS EXPLANATION FOR THE
NETWORK (contd.)

 Node 6
• It has 2 predecessors and hence we have to compute EST for each
• Relationship with predecessor (3) – FS
• EST6 = EFT3 + lead lag factor = 5 + 1 = 6
• Relationship with predecessor (5) – SF
• EST5 = EST5 + lead lag factor – duration = 12 + 1 - 1 = 12
• We select the Max(EST) which we obtain from the predecessor 5
• EFT6 = EST6 + duration = 12 + 1 = 13

126
FORWARD PASS EXPLANATION FOR THE
NETWORK (contd.)

 Node 7
• It has 2 predecessors and 3 relationships hence we have to compute EST for
each
• Relationship with predecessor (5) – SS
• EST7 = EST5 + lead lag factor = 12 + 7 = 19
• Relationship with predecessor (5) – FF
• EST7 = EFT5 + lead lag factor – duration = 17 + 1 - 15 = 3
• Relationship with predecessor (6) - FS
• EST7 = EFT 6 + lead lag factor = 13 + 0 = 13
• We select the Max(EST) which we obtain from the predecessor 5
• EFT6 = EST6 + duration = 19 + 15 = 34

127
FORWARD PASS EXPLANATION FOR THE
NETWORK (contd.)

 Node 8
• It has 2 predecessors and 2 relationships hence we have to compute EST for
each
• Relationship with predecessor (4) – FS
• EST8 = EFT4 + lead lag factor = 5 + 1 = 6
• Relationship with predecessor (7) – SF
• EST8 = EST7 + lead lag factor – duration = 19 + 1 - 1 = 19
• We select the Max(EST) which we obtain from the predecessor 7
• EFT6 = EST6 + duration = 19 + 1 = 20

128
FORWARD PASS EXPLANATION FOR THE
NETWORK (contd.)

 Node 9
• It has 2 predecessors and 3 relationships hence we have to compute EST for
each
• Relationship with predecessor (7) – SS
• EST9 = EST7 + lead lag factor = 19 + 1 = 20
• Relationship with predecessor (7) – FF
• EST9 = EFT7 + lead lag factor – duration = 34 + 3 - 45 = - 8
• Relationship with predecessor (8) - FS
• EST9 = EFT8 + lead lag factor = 20 + 0 = 20
• We select the Max(EST) which we obtain from the predecessors 7, 8
• EFT6 = EST6 + duration = 20 + 45 = 65

129
FORWARD PASS EXPLANATION FOR THE
NETWORK (contd.)

 Node 10
• EST10 = EFT9 + lead lag factor = 65 + 0 = 65
• EFT10 = EST10 + duration = 65 + 5 = 70

130
BACKWARD PASS EXPLANATION FOR THE
NETWORK
 We start from the last node and move to the first node
 Node 10
• LFT of node 10 is set to EFT 10 to commence the backward pass
computations
• LST = LFT - Duration = 70 – 5 = 65
 Node 9
• Relationship with successor (10) – FS
• LFT 9 = LST10 - lead lag factor = 65 – 0 = 65
• LST 9 = LFT9 - duration = 65 - 45 = 20
 Node 8
• Relationship with successor (9) – FS
• LFT 8 = LST9 - lead lag factor = 20 – 0 = 20
• LST 8 = LFT8 - duration = 20 - 1 = 19
131
BACKWARD PASS EXPLANATION FOR THE
NETWORK (contd.)
 Node 7
• It has 2 successors and 3 relationships hence we have to compute LFT for
each
• Relationship with successor (9) – SS
• LFT 7 = LST9 – lead lag factor + duration = 20 -1 + 15 = 34
• Relationship with successor (9) – FF
• LFT 7 = LFT5 - lead lag factor = 65 - 3 = 62
• Relationship with successor (8) - SF
• LFT 7 = LST 8 - lead lag factor + duration = 20 – 1 + 15 = 34
• We select the Min(LFT) which we obtain from the successors 8, 9
• LST 7 = LFT7 - duration = 34 - 15 = 19

132
BACKWARD PASS EXPLANATION FOR THE
NETWORK (contd.)
 Node 6
• It has 1 successor
• Relationship with successor (7) – FS
• LFT 6 = LST7 – lead lag factor = 19 - 0 = 19
• LST 6 = LFT6 - duration = 19 - 1 = 18
 Node 5
• It has 2 successors and 3 relationships hence we have to compute LFT for
each
• Relationship with successor (7) – SS
• LFT 5 = LST7 – lead lag factor + duration = 19 -7 + 5 = 17
• Relationship with successor (7) – FF
• LFT 5 = LFT7 - lead lag factor = 34 - 1 = 33
• Relationship with successor (6) - SF
133
BACKWARD PASS EXPLANATION FOR THE
NETWORK (contd.)
 Node 5 (contd.)
• LFT 5 = LST 6 - lead lag factor + duration = 19 – 1 + 5 = 23
• We select the Min(LFT) which we obtain from the successor 7
• LST 6 = LFT6 - duration = 17 – 5 = 12
 Node 4
• Relationship with successor (8) – FS
• LFT 4 = LST8 - lead lag factor = 19 – 1 = 18
• LST 4 = LFT4 - duration = 18 - 5 = 13
 Node 3
• Relationship with successor (6) – FS
• LFT 3 = LST6 - lead lag factor = 18 – 1 = 17
• LST 3 = LFT3 - duration = 17 - 5 = 12

134
BACKWARD PASS EXPLANATION FOR THE
NETWORK (contd.)
 Node 2
• Relationship with successor (5) – FS
• Relationship with successor (5) – FS
• LST 2 = LFT2 - duration = 10 - 10 = 0
 Node 1
• Since it is a start dummy activity hence its LST
• LFT = 0 which can be computed using
• LFT 1 = LST2 - lead lag factor = 0 – 0 = 0
• LFT 1 = LST3 - lead lag factor = 12 – 0 = 12
• LFT 1 = LST4 - lead lag factor = 13 – 0 = 13
• Choose the Min(LFT)
• LST1 = LFT1 – duration = 0 – 0 = 0

135
conclusion

 Evident from the above example that manual calculations are tedious
when there are relationships other than FS in precedence networks

Total slack / float for each activity has been computed in the figure using
the formulae
• TF = LST – EST
• TF = LFT – EFT

136
FORWARD PASS

Node Activity Duration ESTi Remarks EFT Remarks


duri
1 Start 0 0 0,Start Activity 0 EFT1 = EST1 + dur1
EST1 = 0 =0+0=0

2 EW 10 0 EST2 = EFT1 + FS0-1 10 EFT2 = EST2 + dur2


=0+0=0 = 0 + 10 = 10

3 StlFab 5 0 EST3 = EFT1 + FS1-3 5 EFT3 = EST3+ dur3


=0+0=0 =0+5=5

4 ShutrFab 5 0 EST4 = EFT1 + FS1-4 5 EFT4 = EST4 + dur4


=0+0=0 =0+5=5

5 PCC 5 12 EST5 = EFT2 + FS2-5 17 EFT5 = EST5 + dur5


FS2-5= 2, EST5 = 12 = 12 + 5 = 17

137
FORWARD PASS (contd.)

6 Rebar 1 12 Taking Max EST 13 EFT6 = EST6 + dur6


Trans
= 12 + 1 = 13

7 CRaft 15 19 Taking Max EST 34 EFT7 = EST7 + dur7


= 19 + 15 = 34

8 Wall Raft 1 19 Taking Max EST 20 EFT8 = EST8 + dur8


= 19 + 1 = 20

9 C Wall 45 20 Taking Max EST 65 EFT9 = EST9 + dur9


= 20 + 45 = 65

10 Fencing 5 65 EST10 =EFT10+ FS1- 70 EFT10


10
= EST10 + dur10
FS1-10= 0
= 65 + 5 = 70

138
BACKWARD PASS
Node Activity Duration LFTi Remarks EFT Remarks
duri
10 Fencing 5 70 Taking LFT10 65 LST10=LFT10 – dur10
same as EFT10
= 70- 5 = 65
9 C Wall 45 65 LFT9 = LST1 – 20 LST9=LFT9 – dur9
FS9-10
= 65- 45 = 20
= 65- 0 = 65
8 Wall Raft 1 20 LFT8 = LST9– 19 LST8=LFT8 – dur8
FS8-9
= 20- 15 = 19
= 20- 0 = 20
7 CRaft 15 34 Taking Min of all 19 LST7=LFT7 – dur7
LFT’s
= 34- 15 = 19
6 Rebar 1 19 LFT7 = LST7– 18 LST6=LFT6 – dur6
Trans FS6-7
= 19- 1 = 18
= 19- 0 = 19

139
BACKWARD PASS (contd.)

5 PCC 5 17 Taking Min of all LFT’s 12 LST5=LFT5 – dur5


= 17- 5 = 12

4 ShutrFab 5 18 LFT4 = LST8– FS4-8 13 LST4=LFT4 – dur4


= 19- 1 = 18 = 18- 5 = 13

3 StlFab 5 17 LFT3 = LST6– FS1-6 12 LST3=LFT3 – dur3


= 18- 1 = 17 = 17- 5 = 12

2 EW 10 10 LFT2 = LST5– FS2-5 0 LST2=LFT2 – dur2


= 12- 2 = 10 = 10- 10 = 0

1 Start 0 0 Taking Min of all LFT’s 0 LST1=LFT1 – dur1


= 0- 0 = 0

140
CONCLUSION

 Precedence network is becoming popular these days in construction industry


 Most of the latest software's such as PRIMAVERA and MS PROJECT etc. are
fast becoming a standard around the world are based on this type of network
 Of course Primavera and Microsoft project can also produce bar charts from
the precedence networks automatically, if it is desired!!

141
LECTURE 4

BAR CHART
SCHEDULING THE NETWORK
RESOURCE LEVELING
RESOURCE ALLOCATION
NETWORK CRASHING /COST TIME TRADE
OFF
142
Bar Chart
In the bar chart method, works are first split in to activities.
These activities are then listed in the order of construction
priorities, generally on the left-hand side column, while the
time scale is plotted horizontally on the top and/or bottom of
the chart.
The bar against each activity represents its schedule of work
The start of the bar marks the commencement of the activity
and the end of the bar its completion. The length of the bar
on the calendar scale represents the duration of the activity.
Bar Chart
No Work
description
Residential
Bldg.

1
2
3
4
5
6
7
8
9
10
11
12
13

Months

` Working days
in month
Working days
cumulative
Bar Chart
Bar charts are easy to plot, comprehend and communicate, and are most
appropriate for presentation of schedules. However, as planning
technique, the bar chart is not suitable for complex projects due to the
following reasons:
(a) It does not reflect the relationship between various activities which are a
common feature of all complex projects.
(b) It cannot identify and highlight the emerging critical tasks needing special
attention for preventing schedule slippages, time overruns, and other
bottlenecks.
(c) In complex projects, time durations are often educated guesses. Any
change in schedule or time duration would require a redrawing of the
multi-task bar chart schedule.
 thus, it can be said that the bar chart format is most useful for
presentation of schedules, but as a planning technique, it is
not suitable for scheduling complex projects.
SCHEDULING THE NETWORK
• A scheduling aims at optimizing resources for completion of the project
within stipulated time objectives.
• Resource optimization implies scheduling of resources according to the
given pattern of their employment.
• Optimization is achieved by suitably adjusting the schedule of non-critical
activities using available floats in such a manner that fluctuations from the
desired pattern of resource utilization are minimized.
The scheduling of network plan involves the following steps;
– Outlining scheduling constraints(Time constraint or Resource Constraint)
– Identifying the floats of each activities to order of (ascending order of floats)
sensitivity.
– Preparing the earliest start time(EST) schedule.
– Determining resource scheduling criteria
– Scheduling critical activities at their EST
– Scheduling non critical activities
– Optimizing other resources
– Validating time objective.

146
RESOURCE LEVELING

• In resource leveling, the constraint is the fixed


project duration.
• That is the project must get completed by a fixed
date.
The attempt of such heuristic is to reduce peak
requirement of resources and to smooth out period
to period assignments.
– Such problems are also referred to as ‘time limited
resource considerations’ problems.
• The assessment of resources is done using resource
loaded or resource aggregation chart.
Example to illustrate the concept of
resource leveling.

B(3) F (3)
4 2

A
A (2) D (4) 5 G (4) 6
1 2
4
3 4 5
C (4) E (3)
3 5
4
3 4 7 7 2 9
B F

5 2 9 9 2 11

0 3 3
3 4 7 11 5 16
A G
D
0 0 3 11 0 16
7 4 11

3 3 6 6 5 11
C E
3 0 6 6 0 11
• Let’s assume that there are a total of 7 activities A to G in the
example network.
• The duration of each of the activities are written below the
arrow while the resource requirement of the activities is
shown in the bracket adjacent to the activity name.
• For example, the duration for activity A is 3 days while the
resource required by this activity is 2 units.
• The early start and late start time of events or nodes are also
shown in the network from which the float available in a
particular activity can be calculated thus critical activities can
be identified.
• The critical path of the network is 1-2-4-5-6 and it consists of
activities A, C, E, and G. The critical path is shown by bold
arrows in the network.
Steps in Resource leveling
• The project network is prepared based on the data provided
for each activity. Event times and activity times are computed
as illustrated earlier thus total float is also computed for each
of the activities.
The list of activities are ranked in order of their EARLIEST START
date (refer Table in the next slide).
The resources required on daily basis for each of the activities
are summed up and shown in the form of a chart called
resource aggregation or resource loading chart.
Fig 3.2 shows resource loading chart based on the earliest
start time of all the activities. The project takes a total of 87
man days to complete and the daily requirement varies from a
minimum of 2 resources on days 1 to 3 to a maximum of 11
resources on days 4, 5, and 6.
Resource loading table showing daily requirement of workers
based on EARLY START order

EST T Res. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Act. i
m
e

1-2 0 3 2 2 2 2

2-4 3 3 4 4 4 4

2-3 3 4 3 3 3 3 3

2-5 3 4 4 4 4 4 4

4-5 6 5 3 3 3 3 3 3

3-5 7 2 3 3 3

5-6 11 5 4 4 4 4 4 4

Total 2 2 2 11 11 11 10 6 6 3 3 4 4 4 4 4
Resource aggregation or resource loading
chart based on early start.
Steps in Resource leveling contd..
• Now the activities are ranked in order of their LATEST START
DATE (refer Table below). It may be noted that the latest start
date of an activity is the latest time of the finish event less the
duration.
• Thus latest start times of activities 1-2, 2-4, 2-3, 4-5, 2-5, 3-5,
and 5-6 are on days 0, 3, 5, 6, 7, 9 and 11 respectively in the
ascending order.
• The resource loading chart shown in Fig below is prepared
based on the ascending order of latest start time of each
activity. It can be noticed that the requirement of resources
varies from a minimum of 2 to a maximum of 10 resources.
Table 3.2 Resource loading table showing daily requirement of workers
based on LATE START order

LST T Res 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Act.

1-2 0 3 2 2 2 2
2-4 3 3 4 4 4 4
2-3 5 4 3 3 3 3 3
4-5 6 5 3 3 3 3 3 3
2-5 7 4 4 4 4 4 4
3-5 9 2 3 3 3
5-6 11 5 4 4 4 4 4 4
Total 2 2 2 4 4 7 6 10 10 10 10 4 4 4 4 4
Resource aggregation or resource loading
chart based on late start.
Steps in Resource leveling contd..
• The two resource loading charts obtained from steps 2 and 3 are
compared.
• The two charts provide the two extreme arrangements of resource
requirements.
• In the case that PEAKS AND VALLEYS are seen in the utilization pattern for
a resource, the activities are manipulated by visual inspection and an
acceptable resource requirement is found between the two extremes.
• The bottom-line is to ensure continuous deployment of resources and to
avoid large variations in the utilization pattern.
• One such compromise solution is shown in Fig below (also refer Table
below ). This figure has been obtained by delaying activity 2-5 , 2- 3 and 3-
5 by the number of the float days beyond its early start time and leaving
the rest of activities intact as given in Table first table.
• It has resulted in reducing the peak requirement (from 11 to 10) besides
bringing a gradual change in resource requirement.
Resource loading table showing daily requirement of workers
AFTER LEVELING

t Res. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
ACT.

1-2 3 2 2 2 2
2-4 3 4 4 4 4
2-3 4 3 3 3 3 3
4-5 5 3 3 3 3 3 3
2-5 4 4 4 4 4 4
3-5 2 3 3 3
5-6 5 4 4 4 4 4 4
Total 2 2 2 4 4 7 10 10 10 10 6 4 4 4 4 4
Resource leveled chart
12

10 Act 5-6
Act 3-5
8
Act 2-5
6 Act 4-5
Act 2-3
4
Act 2-4
2 Act 1-2

0
1 3 5 7 9 11 13 15
Discussion
• As can be understood from this example, it would be
extremely difficult to employ this technique of visual
examination for large problems.
• Also, for simple problem though the leveling exercise can be
completed in one attempt, however for larger problems the
resource leveling cannot be carried out in a single step, and is
a largely iterative process.
• Computers can be employed to a good advantage for leveling
of resources under time constrained situation.
• A number of heuristics have been developed for this purpose.
RESOURCE ALLOCATION
• Here availability of resources is a constraint.
• In other words, the resources have fixed limits.
• For illustrating resource allocation, we take the same problem
(Project network of Fig above, that of the resource leveling)
which was used for illustrating resource leveling.
• The difference here however is resource constraint. Let’s take
the maximum availability of resources be 8.
In case it is not possible to resolve the resource over-
allocation on a particular day, some activities may have to be
delayed.
• The basic objective here is to find out which activities can be
delayed and by how much and finally to arrive at the shortest
possible time to complete the project satisfying the resource
constraints.
RESOURCE ALLOCATION contd..
Basic assumptions/ Heuristic
• When the resource requirement on a particular day exceeds 8
we decide the priority of competing activities on a predefined
set of rules.
• Let the activities with earliest start time gets the first priority.
• In case, there is a tie between two or more activities, the
priorities are decided on the basis of float available in the
activities.
• That is the activity with the minimum float gets first priority.
• Further, non critical activities may need to be rescheduled in
order to free the resources for critical activities. Also, let’s not
stop an activity in between once it has started.
The network of Fig 3.1 redrawn to the
time scale

1 2 4 5 6
6
Day 1
Only activity 1-2 is scheduled for day 1 and only 2 resources are required
which is less than the maximum.
Thus: on day 1, requirement – 2, availability – 8, remaining – 6.
Day 2 and 3
Activity 1-2 continues. Requirement – 2, availability – 8, remaining – 6.
Day 4
• The three activities 2-3, 2-4, and 2-5 can be started on day 4. Thus
resource requirement would become 3 + 4 + 4 = 11, which is more than 8,
the maximum limit. The decision rule ‘activity with least float gets priority’
for resource assignment comes into play here.
• Activity 2- 4 lies on the critical path i.e float =0 and hence resources need
to be allocated to it first. The activity 2- 4 requires 4 unit of resources,
availability is 8, thus resources remaining after assigning to 2-4 is 4 (8-4).
Next in queue is activity 2-3 with float = 2 days. Thus resources are
assigned to 2-3. The requirement of this activity is 3, while now the
availability is 4, thus 1 resource is left out after this allocation.
• Activity 2-5 is left out since it needs 4 resources but the available resource
is just 1, hence we need to postpone this activity. Also, the float of this
activity is reduced to 3 now.
Day 4

1 2 4 5 6
Day 5
Activity 2- 4. Requirement -4 Availability – 8 Remaining – 4
Activity 2- 3. Requirement -3 Availability – 4 Remaining – 1
Activity 2-5 again has to be postponed because of the
unavailability of resources.
Also, the float of this activity is reduced to 2 now.

1 2 4 5 6
Day 6
Activity 2- 4 . Requirement -4 Available – 8 Remaining – 4
Activity 2- 3 . Requirement -3 Available – 4 Remaining – 1
Activity 2-5 again has to be postponed because of the unavailability of resources.
The float remaining for this activity is 1.

1 2 4 5 6
Day 7
Activity 2- 3 . Requirement -3 Availability – 8 Remaining – 5
Activity 4 -5 lies on the critical path and hence needs to be allocated resources.
Requirement – 5 Availability – 5 Remaining – 0
Activity 2-5 again has to be postponed because of the unavailability of resources.
The float left for this activity is now 0.
Day 8

Activity 4- 5 continues. Requirement -5, availability – 8, remaining – 3.


Activity 2-5 is now critical. The resources required are 4 but the availability is
only 3.
Hence we need to postpone this activity by a day. This increases the duration
of the project by 1 day.
Day 9
Activity 4- 5 . Requirement -5 Available – 8 Remaining – 3
Activity 2 -5 . No resources are available. Hence we need to postpone this activity by a
day again.
The total project duration now becomes 18 days
Day 10
Since activities in progress can’t be stopped in between,
hence resources must be allocated to them first.

Activity 4- 5 . Requirement -5 Available – 8 Remaining – 3


Activity 2 -5 . Not sufficient resources available. Hence we need to postpone
this activity by a day again.
As per the given heuristic the activity 3-5 can’t be scheduled now. Postpone
activity 3-5.
The total project duration now becomes 19 days.
Day 11
Since activities in progress can’t be stopped in between,
hence resources must be allocated to them first.

Activity 4- 5 . Requirement -5 Available – 8 Remaining – 3


Activity 2 -5 . Not sufficient resources available. Hence we need to postpone
this activity by a day again.
Again as per the given heuristic the activity 3-5 can’t be scheduled now.
Postpone activity 3-5.
The total project duration now becomes 20 days.
Day 12
Activity 2 -5 . Requirement – 4. Availability – 8. Remaining – 4
Activity 3 –5. Requirement – 3. Availability – 4. Remaining – 1
Day 13
Activity 2 – 5 continues. Requirement – 4. Availability – 8. Remaining – 4
Activity 3 –5 continues . Requirement – 3. Availability – 4. Remaining – 1
Day 14
Activity 2 – 5 continues. Requirement – 4. Availability – 8. Remaining – 4
Day 15
Activity 2 – 5 continues. Requirement – 4. Availability – 8. Remaining – 4
Day 16

Activity 5 – 6. Requirement – 5. Availability – 8. Remaining – 3.


Day 17
Activity 5 – 6. Requirement – 5. Availability – 8. Balance – 3.
Day 18
Activity 5 – 6. Requirement – 5. Availability – 8. Remaining – 3.
Day 19
Activity 5 – 6. Requirement – 5. Availability – 8. Remaining – 3.
Day 20
Activity 5 – 6. Requirement – 5. Availability – 8. Remaining – 3.
Discussion
• the project duration has been increased by 4 days from original 16 days
with no resource constraint to 20 days with resource limit of 8.
• The resource requirement varies from ____to 8. The resource loading
chart for the total project duration is shown in Fig______.
• The steps illustrated above can be carried out manually only if the project
is small. For large projects involving multiple resources we need to look to
computer programs.
• The examples presented for resource leveling and resource allocation are
that of very simplistic nature.
• First of all, we have considered only a single type of resource which is used
for all types of activities.
• Further we have considered that the resource is interchangeable across
different activities.
• Unfortunately in real life situations both these assumptions do not hold
true. In practice we have to deal with different types of resources such as
equipment, materials, and labours etc. and further a single activity may
require more than one type of resources.
NETWORK CRASHING AND COST TIME
TRADE OFF
• CPM is based on the assumption that duration of an
activity can be reduced or crashed to a certain extent
by increasing the resources assigned to it.
• As is known the execution of an activity involves both
the direct costs and indirect costs.
• However, there is no point in attempting to crash all
the activities by increasing the resources.
• Any reduction in duration of critical path
activities can reduce the project duration.
• An activity can be performed;
at its normal or most efficient pace or
‘normal duration’
 it can be performed at higher speed.
‘crash duration’
• Some activities along the critical path sometime
need to be shortened in order to reduce the overall
duration of the project.
• This leads to a decrease in the indirect expenses (due
to decrease in duration) and an increase in the direct
expenses (due to more mobilization of resources).
• The relationship between the cost of the job and the
duration has been assumed to be linear. The steeper
the slope of the line, the higher the cost of
expediting the job at an earlier date.
Time cost trade off

Direct Cost vs Time Indirect Cost vs Time

120 300
100 250
Direct Cost

80

Indirect Cost
200
60 150
40
100
20
50
0
0
0 2 4 6
0 2 4 6
Time
Time
Crashing
• This expedition of activity at an earlier time is
referred to as Crashing.
• There are 3 cases that normally arise –
– Line sloping down to the right – The steeper the
slope, the higher the cost of crashing.
– Horizontal line – No cost of crashing.
– Vertical line – The activity can’t be shortened
regardless of the extra resources applied to it.
3 CASES

Case-3 Case-1 Case-2

Direct Cost vs Time

250
200
Direct Cost

150
100
50
0
0 2 4 6
Time
EXAMPLE
Crash time
Cost
slope 3
F (1500)
B(2000)
4(2) 2(1)

2
D (4000)
5 G (-) 6
1
4
A (2000)
3(2) 4(3) 5(5)
C (4000) E (3000)
3(1) 5(2)

4
Normal time
Details of activity cost and duration
Computation of slope for direct Expense!
Normal Crash Cost
Activity slope
Duration Cost Duration Cost Br./ day
1-2 (A) 3 5000 2 7000 2000
2-3 (B) 4 6000 2 10000 2000
2-4 (C) 3 9000 1 17000 4000
2-5 (D) 4 5000 3 9000 4000
4-5 (E) 5 7000 2 16000 3000
3-5 (F) 2 8000 1 9500 1500
5-6 (G) 5 20000 5 20000 -

•The indirect expenses are Br. 6000 / day.


Network used for illustrating crashing

3
F (1500)
B(2000)
4(2) 2(1)
G (-)
A
A (2000)
2
D (4000)
5 6
1
4
4(3)
3(2)
C (4000) E (3000) 5(5)
3(1) 5(2)

4
Critical path : A-C-E-G or 1-2-4-5-6
Project Duration-16 days
Important points
• The point of the minimum cost of project is
known as the optimum point.
• In order to find the optimum point, the
project network is drawn based on the normal
duration of the activities. This is the
maximum length schedule.
• The duration of the project is thus noted.
Important points
• It can be shortened by expediting jobs along
the critical path. If the added cost of
expediting the job is less than the saving in
the indirect expenses which result from
shortening the project, then a less expensive
schedule can be found.
• New schedules are found as long as there is a
reduction in the cost of the project.
Important points
• As can be observed from this small example, it
is possible to crash some activities such as 1-2,
2-3, 2-4, 2-5, 4-5, and 3-5, while it may not be
possible for some activities to be crashed such
as 5-6 (both normal and crash duration are
same here).
Solution
• The total project cost if all the activities are
executed at their normal pace would be =
normal costs of activities 1-2, 2-3, 2-4, 2-5, 4-
5, 3-5, and 5-6 + (indirect cost per day x
duration of project) = (5000 + 6000 + 9000 +
5000 + 7000 + 8000 + 20000) + 6000 x 16 =
60,000 + 96,000 = 156,000.
Solution contd..
• To shorten the project duration, we have to
shorten the duration of activities along the
critical path (1-2-4-5-6).
• We observe that the activity 1-2 is on the
critical path and has the least slope (Br.
2000/day) and hence can be crashed first. This
activity can be crashed by 1 day, thus the
project duration reduces by a day. Project
duration has become 15 days now.
Revised Network after crashing by 1
day
Critical path : A-C-E-G or 1-2-4-5-6
Project Duration-15 days
3
F (1500)
B(2000)
4(2) 2(1)
G (-)
A
A (2000)
2
D (4000)
5 6
1
4
4(3)
3,2(2)
C (4000) E (3000) 5(5)
3(1) 5(2)

4
The project cost =
156,000 + 2000 – 6000 = 152,000.
Revised Network after crashing by
additional 1 day
Critical path : A-C-E-G or 1-2-4-5-6
Project Duration-14 days
3
F (1500)
B(2000)
4(2) 2(1)
G (-)
A
A (2000)
2
D (4000)
5 6
1
4
4(3)
2(2)
C (4000) E (3000) 5(5)
3(1) 5,4 (2)

4
The project cost =
152,000 + 3000 – 6000 = 149,000. .
Revised Network after crashing by
additional 1 day
Critical paths : A-C-E-G or 1-2-4-5-6 and 1-2-3-5-6
Project Duration-13 days
3
F (1500)
B(2000)
4(2) 2(1)
G (-)
A
A (2000)
2
D (4000)
5 6
14
4(3)
2(2)
C (4000) E (3000) 5(5)
3(1) 5,3(2)

4
The project cost =
149,000 + 3000 – 6000 = 146,000. .
Crashing option now
Option Cost ( Rs /day )

C and B 4000 + 2000 = 6000

C and F 4000 + 3000= 7000

E and B 3000 + 2000= 5000

E and F 3000 + 1500=4500


Revised Network after crashing by
additional 1 day
Critical paths : A-C-E-G or 1-2-4-5-6 and 1-2-3-5-6
Project Duration-12 days
3
F (1500)
B(2000)
4(2) 2,1(1)
G (-)
A
A (2000)
2
D (4000)
5 6
14
4(3)
2(2)
C (4000) E (3000) 5(5)
3(1) 5,2(2)

4
The project cost =
146,000 + 4500 – 6000 = 144,500. .
Revised Network after crashing by
additional 1 day
Critical paths : A-C-E-G or 1-2-4-5-6 and 1-2-3-5-6
and 1-2-5-6
Project Duration-11 days 3
F (1500)
B(2000)
4,3(2) 2,1(1)
G (-)
A
A (2000)
2
D (4000)
5 6
14
4(3)
2(2)
C (4000) E (3000) 5(5)
3,2(1) 5,2(2)

4
The project cost =
144,500 + 6000 – 6000 = 144,500. .
Option available now
• to crash activities B, C and D together by 1 day
• the cost of crashing the three activities
together is equal to the sum of cost slopes of
activities 2-3, 2-4, and 2-5 that is Br. 10,000.
• Thus project duration becomes 10 days.
Revised Network after crashing by
additional 1 day
Critical paths : A-C-E-G or 1-2-4-5-6 and 1-2-3-5-6
and 1-2-5-6
Project Duration-10 days 3
F (1500)
B(2000)
4,2(2) 2,1(1)
G (-)
A
A (2000)
2
D (4000)
5 6
14
4,3(3
2(2) )
C (4000) E (3000) 5(5)
3,1(1) 5,2(2)

4
The project cost =
144,500 + 10000 – 6000 = 148,500. .
Time Vs cost for the example problem

158,000
156,000
Total project cost (B r.)

154,000
152,000
150,000
148,000
146,000
144,000
142,000
140,000
138,000
16 15 14 13 12 11 10
Project duration (days)
Exercise
Crashing Exercise: The network and durations given below
shows the normal schedule for a project. You can decrease
(crash) the durations at an additional expense. The Table
given below summarizes the time-cost information for the
activities. The owner wants you to finish the project in 110
days. Find the minimum possible cost for the project if you
want to finish it on 110 days. (Assume that for each activity
there is a single linear, continuous function between the
crash duration and normal duration points).

208
Exercise

209

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