2. What is a project?
“A project is a series of activities or
tasks or operations directed to
accomplishment of a desired objective.”
“A project is a temporary endeavour
undertaken to create a "unique" product or
service.”
HRM In A Dynamic Environment
3. earLY techNiQUes oF project
MaNaGeMeNt
1. Gantt’s Bar Chart
2. Milestone Chart
HRM In A Dynamic Environment
4. NetWorK aNaLYsis
Network Analysis refers to a number of techniques
for the planning and control of complex projects.
The two most frequently used forms of network planning
are:
1. Programme Evaluation and Review Technique (PERT)
2. Critical Path Method (CPM)
HRM In A Dynamic Environment
5. What is a NetWorK?
A network is a graphical diagram
consisting of certain configuration of
“Arrows” (²) and “Nodes” (( ) for showing
the logical sequence of various tasks to be
performed to achieve the project
objective.
HRM In A Dynamic Environment
6. pert / cpM
techNiQUes
The initial step in PERT/CPM project
scheduling process is the determination of
all specific activities that comprise the
project and their relationships.
HRM In A Dynamic Environment
7. eXaMpLe
Activity Description Duration (in Immediate
weeks) predecessor
A Obtain the budget 2 -
approval
B Obtain the machine 5 A
C Hire the operator 1 A
D Install the machine 1 B
E Train the operator 6 C
F Produce the goods 1 D,E
HRM In A Dynamic Environment
8. terMs UseD iN a NetWorK
n Activity: An effort that is required to complete a
part of the project. It is represented by “²”.
2. Node: It represents the beginning or completion of
an activity. It is represented by “a”
HRM In A Dynamic Environment
9. rULes oF NetWorK coNstrUctioN
1. Each defined activity is represented by one and only one arrow
in the network.
2. Before an activity can be undertaken, all activities preceding it
must be completed.
3. The arrows depicting various activities are indicative of logical
procedure only. The length and bearing of the arrows are of no
significance.
HRM In A Dynamic Environment
10. rULes oF NetWorK
coNstrUctioN
1. The arrow direction indicates the general progression in time.
Head events and Tail events.
3. When a number of activities terminate at one event, it
indicates that no activity emanating from that event may start
unless all activities terminating there have been completed.
5. Events are identified by numbers.
7. The activities are identified by the numbers of their starting
and ending events or by alphabets.
HRM In A Dynamic Environment
11. rULes oF NetWorK coNstrUctioN
1. A network should have only one initial and terminal
node.
A
3.
C Merge Event
B
B
A Burst Event
C
HRM In A Dynamic Environment
12. rULes oF NetWorK
coNstrUctioN
10. Parallel activities between two events, without intervening
events, are prohibited. When two or more parallel
activities in a project have the same head and tail events,
dummy activities are needed in constructing the network.
Dummy activities do not consume time or
resources. An efficient network contains a minimum
number of dummy activities required to portray the
correct precedence relationships.
11. Looping is not permitted in a network.
HRM In A Dynamic Environment
13. 3-2
Network analysis
It is a Planning project Management
It means construction of Variances
It is process Technique
It is outsourcing analysis
HRM In A Dynamic Environment
14. 3-2
What is Network
Network analysis is a system which plans projects both large
and small by analyzing the project activities
Projects are broken down to individual tasks or activities,
which are arranged in logical sequential order
A network diagram is constructed which presents the
Relationship b/w all the activities are involved
HRM In A Dynamic Environment
15. 3-2
Meaning and Definition
According to author – “Network analysis helps to designing,
Planning, Coordinating and decision making in order to accomplish
the project economically in the minimum available time with the
limited available resources.”
HRM In A Dynamic Environment
16. 3-2
Techniques of Network
PERT
CPM
RAMS
DEP
COPAC
MAP Project analysis
RPSM
LCS
MOSS
PCS
GERT
HRM In A Dynamic Environment
17. 3-2
Key concepts of Network
Activity
Event
Predecessor Event
Successor Event
Net work
Dummy activity
Construction of Project
network
HRM In A Dynamic Environment
18. 3-2
Key concepts of Network
ACTIVITY
Activity means a work. A project consists of several
activities. An activity takes time. It is represented by an
arrow in a diagram of the network. Eg. An activity in house
construction can be flooring.
Flooring
HRM In A Dynamic Environment
19. 3-2
Key concepts of Network
Event
It is the beginning or the End of an activity. Events
are represented by circles in a project network diagram.
The events in a network are called the nodes.
Start Stop
Punching
HRM In A Dynamic Environment
20. 3-2
Key concepts of Network
Predecessor Event
The event just before another event is called the
predecessor event
HRM In A Dynamic Environment
21. 3-2
Key concepts of Network
Successor Event
The event just following another event is called the
successor event
3
1 2 4 6
5
HRM In A Dynamic Environment
22. 3-2
Key concepts of Network
Successor Event
In this diagrams
Event 1 is predecessor for the event 2
Event 2 is successor to event 1
Event 2 is predecessor for the events 3,4 and 5
Event 4 is predecessor for the event 6
Event 6 is successor to events 3, 4 and 5
HRM In A Dynamic Environment
23. 3-2
Key concepts of Network
Network
A network is series of related activities and events which
result in an end product or service.
The activities shall follow a prescribed sequence.
It is construction area of network path
HRM In A Dynamic Environment
24. 3-2
Key concepts of Network
Dummy activity
A dummy activity is an activity which does not consume any
time.
sometimes it may be necessary to introduce a dummy
activity in order to provide connectivity to a network only.
HRM In A Dynamic Environment
25. 3-2
Key concepts of Network
Construction of a project network
A project network consists of a finite number of events and
activity by adhering to a certain sequential order.
It is a path way of network
HRM In A Dynamic Environment
26. 3-2
Problem 1
Construct the network diagram for a project with the following activities
Activity Number of Predecessor
Event-Event Activity Activity
1-2 A -
1-3 B -
1-4 C -
2-5 D A
3-6 E B
4-6 F C
5-6 G D
HRM In A Dynamic Environment
27. 3-2
Solution
2
A
B
1 3
C 4
HRM In A Dynamic Environment
28. 3-2
Solution
A D
1 2 5
HRM In A Dynamic Environment
29. 3-2
Solution
B E
1 3 6
HRM In A Dynamic Environment
30. 3-2
Solution
G G
2 5 6
HRM In A Dynamic Environment
31. 3-2
Solution
5
G
E
3
6
4 F
HRM In A Dynamic Environment
32. 3-2
Solution
2
D
5
A G
B E
1 3 6
C 4 F
HRM In A Dynamic Environment
33. 3-2
CRITICAL PATH METHOD (CPM)
The critical path method (CPM) aims at the
determination of the time to complete a project and the
important activities on which a manager shall focus attention.
HRM In A Dynamic Environment
34. 3-2
Problem 1
The following details are available reading a project
Activity Predecessor Duration
Event-Event Activity (Weeks)
A - 3
B A 5
C A 7
D B 10
E C 5
F D,E 4
First let us construct the network diagram for the given
project. We mark the time estimates along the arrows
representing the activities
HRM In A Dynamic Environment
35. 3-2
Solution
Start Event 3 D End Event
B
A 5 10
1 2 F
5 6
3 C E 4
7 4
5
HRM In A Dynamic Environment
36. 3-2
Solution
Path I
A B D F
1 2 3 5 6
3 5 10 4
with a time of 3+5+10+4 =22 weeks
HRM In A Dynamic Environment
37. 3-2
Solution
Path II
A C E F
1 2 4 5 6
3 7 5 4
with a time of 3+7+5+4 =19 weeks
HRM In A Dynamic Environment
38. 3-2
Solution
Compare the times for the two paths. Maximum of {22,19} =
22. we see that path I has maximum time of 22 weeks. The
critical activities are A,B,C,D and F, finally the project
completion time is 22 weeks.
HRM In A Dynamic Environment
39. 3-2
Problem 2
Find out the completion time and the critical activities for the following
project.
D 5
2
20 G 8
A
8
K 6
1 B 3 E 6 H 11 8 10
10 16
I L
C 5
F J 9
7 4 7
25 10
HRM In A Dynamic Environment
40. 3-2
Problem 3
Draw a network diagram and determine the critical path for the
following project.
Activity Duration
Event-Event (Weeks)
1-2 5
1-3 6
1-4 3
2-5 5
3-6 7
3-7 10
4-7 4
5-8 2
6-8 5
7-9 6
8-9 4
HRM In A Dynamic Environment
41. 3-2
Solution
We have the following network diagram for the project.
5
D
2 H
A 5 2
5 I
1 B 3 E 6 8 K
6 7 5 9
4
C
3 F 10 J
4 G
7 6
4
HRM In A Dynamic Environment
42. 3-2
Problem 4
The following details are available reading a project
Activity Predecessor Time estimates
Activity (Weeks)
A - 4
B - 7
C - 3
D A 6
E B 4
F B 7
G C 6
H E 10
I D 3
J F,G 4
K H,I 2
Draw a project network diagram
HRM In A Dynamic Environment
43. 3-2
PERT analysis
INTRODUCTION
Programme Evaluation and Review Technique (PERT) is a tool
that would help a project manager in project planning and control. It
would enable him in continuously monitoring a project and taking
corrective measures wherever necessary. This technique involves
statistical methods.
HRM In A Dynamic Environment
44. 3-2
PERT analysis
The PERT analysis includes 3 Aspects
3. Pessimistic time estimate (tp)
4. Optimistic time estimate (to)
5. Most likely time estimate (tm)
Formulae te = to + 4tm + tp
6
HRM In A Dynamic Environment
45. 3-2
Problem 1
Predecessor Optimistic Time Most likely time Pessimistic time
Activity
Activity estimate (to days) estimate (tm days) estimate (tp days)
A - 2 4 6
B A 3 6 9
C A 8 10 12
D B 9 12 15
E C 8 9 10
F D,E 16 21 26
G D,E 19 22 25
H F 2 5 8
I G 1 3 5
HRM In A Dynamic Environment
46. 3-2
Solution
From the three time estimates tp, tm, to calculate te for each activity.
4 *Most likely time Pessimistic time Time estimate
Optimistic Time
Activity estimate (tm days) estimate (tp to + 4tm +tp Te = to+4tm+tp
estimate (to days)
days) 6
A 2 16 6 24 4
B 3 24 9 36 6
C 8 40 12 60 10
D 9 48 15 72 12
E 8 36 10 54 9
F 16 84 26 126 21
G 19 88 25 132 22
H 2 20 8 30 5
I 1 12 5 18 3
HRM In A Dynamic Environment
47. 3-2
Solution (contd..)
3 D 6 H
F
B
A 12 21 5
1 2 6 5 8
4 22 3
10 9
E G 7
C 4 I
HRM In A Dynamic Environment
48. 3-2
Path I
A B D F H
1 2 3 5 6 8
4 6 12 21 5
Time for the path : 4+6+12+21+5=48 days
HRM In A Dynamic Environment
49. 3-2
Path II
A B D G I
1 2 3 5 7 8
4 6 12 6 3
Time for the path : 4+6+12+6+3=31 days
HRM In A Dynamic Environment
50. 3-2
Path III
A C E F H
1 2 4 5 6 8
4 10 9 21 5
Time for the path : 4+10+9+21+5=49 days
HRM In A Dynamic Environment
51. 3-2
Path IV
A C E G I
1 2 4 5 7 8
4 10 9 6 3
Time for the path : 4+10+9+6+3=32 days
HRM In A Dynamic Environment
52. 3-2
Final
Compare the times for the four paths.
Maximum of { 48,31,49,32} = 49
HRM In A Dynamic Environment
53. 3-2
Problem 2
Optimistic Time Most likely time Pessimistic time
Activity estimate (to days) estimate (tm days) estimate (tp days)
1-2 3 6 9
1-6 2 5 8
2-3 6 12 18
2-4 4 5 6
3-5 8 11 14
4-5 3 7 11
6-7 3 9 15
5-8 2 4 6
7-8 8 16 18
HRM In A Dynamic Environment
54. 3-2
Solution
From the three time estimates tp, tm, to calculate te for each activity.
4 *Most likely time Pessimistic time Time estimate
Optimistic Time
estimate (tm days) estimate (tp to + 4tm +tp Te = to+4tm+tp
estimate (to days)
days) 6
Activity
1-2 3 24 9 36 6
1-6 2 20 8 30 5
2-3 6 48 18 72 12
2-4 4 20 6 30 5
3-5 8 44 14 66 11
4-5 3 28 11 42 7
6-7 3 36 15 54 9
5-8 2 16 6 24 4
7-8 8 64 18 90 15
HRM In A Dynamic Environment
55. 3-2
Solution (contd..)
3 F
C
12 11
2 5 I
A 5 7
6 D 4
4 G
1 8
5
15
B
E H
6 7
9
HRM In A Dynamic Environment
56. 3-2
Problem 3
Optimistic Time Most likely time Pessimistic time
Predecessor
Activity estimate (to estimate (tm estimate (tp
Activity
days) days) days)
A - 2 5 8
B A 2 3 4
C A 6 8 10
D A 2 4 6
E B 2 6 10
F C 6 7 8
G D,E,F 6 8 10
HRM In A Dynamic Environment
57. 3-2
Solution
From the three time estimates tp, tm, to calculate te for each activity.
4 *Most likely time Pessimistic time Time estimate
Optimistic Time
estimate (tm days) estimate (tp to + 4tm +tp Te = to+4tm+tp
estimate (to days)
days) 6
Activity
A 2 20 8 30 5
B 2 12 4 18 3
C 6 32 10 48 8
D 2 16 6 24 4
E 2 24 10 36 6
F 6 28 8 42 7
G 6 32 10 48 8
HRM In A Dynamic Environment
58. 3-2
Solution (Network)
3
B E
6
3 4
F
C 7
8
A D G
1 2 5 6
5 4 8
HRM In A Dynamic Environment
59. 3-2
Problem 4
Optimistic Time Most likely time Pessimistic time
Predecessor
Activity estimate (to estimate (tm estimate (tp
Activity
days) days) days)
A - 12 14 22
B - 16 17 24
C A 14 15 16
D A 13 18 23
E B 16 18 20
F D,E 13 14 21
G C,F 6 8 10
HRM In A Dynamic Environment
60. 3-2
Problem 5
Optimistic Time Most likely time Pessimistic time
Predecessor
Activity estimate (to estimate (tm estimate (tp
Activity
days) days) days)
A - 2 4 6
B - 3 5 7
C A 5 6 13
D A 4 8 12
E B,C 5 6 13
F D,E 6 8 14
HRM In A Dynamic Environment
61. 3-2
INTRODUCTION TO PROJECT CRASHING
1.The process of shortening the time to complete a project is called crashing
and is usually achieved by putting into service additional labor or machines
to one activity or more activities.
2. Crashing involves more costs. A project manager would like to speed up a
project by spending as minimum extra cost as possible.
HRM In A Dynamic Environment
62. 3-2
STEPS IN PROJECT CRASHING
Step:1
Find the critical path with the normal times and normal costs for the activities and
identify the critical activities.
Step:2
Find out the crash cost per unit time for each activity in the network. This is calculated
by means of the following formulae
Activity Cost
Crash Time & Cost
Crash Time
Normal Time Normal Time & Cost
Activity Time
Crash Time Normal Time
HRM In A Dynamic Environment
63. 3-2
STEPS IN PROJECT CRASHING
Crash cost/Time period = Crash cost-Normal cost/Normal time-Crash time
Step:3
Select an activity for crashing
HRM In A Dynamic Environment