PART 3:
NETWORKING
PERT/CPM
PRESENTED BY:
ENGR. HADJI PEEJAY ARANDA CE/RMP
INTRODUCTION
● As indicated in the previous slides the following must
be obtained during the planning phase
– Network diagram
– Duration of activities
– Cost Estimates
– Resource Estimates
– Trade indicators or responsibility for activity
grouping
● In order to conduct proper planning activity, the project
management team must possess the necessary
planning skills
NETWORK FUNDAMENTALS
● The making and reading of network diagram requires
some familiarity of the network convention. The
network or precedence diagram clearly indicates what
activities must be performed in sequence and also to
know which activities must be performed
independently with each other
● There are two slightly different convention for making
a network diagram. These are:
– Activity on Arrow (AOA)
uses arrow to designate activities
– Activity on Node (AON)
using nodes to designate activities
NETWORK FUNDAMENTALS
● The nodes in the AOA approach represents the
beginning and the end of activities which are called
events.
● Events are point in time, it neither consume resources
or time
● Activities are work required to move from one event to
the next in your project. Activities take time and
consume resources.
The arrows should always point to the right. And arrow
which represent activity is identified by a number circle at
its tail and another number circle at its point. The
description of the activity is written along the arrow.
ELEMENTS OF NETWORK
DIAGRAM
● Work B cannot start until after work A is completed
A B
● C cannot start until both A and B are completed.
A
C
● A must be completed before either B or C can start
C
A
B
ELEMENTS OF
NETWORK DIAGRAM
● Both A and B must be completed before either C or D
can start.
A C
B D
● Both A and B must be completed before D can start. C
depends on A only. D depends only on B and A, X is
called dummy.
A C
X
B D
PRINCIPLES IN
NETWORK DIAGRAM
● Principle No. 1:
Everything in the Network or Arrow Diagram must have
a meaning.
● Principle No. 2:
That an activity has a single definite starting point and a
single definite ending point.
● Principle No. 3:
The Network (Arrow diagram) does not describe time
relationships but rather dependency relationships.
● Principle No. 4:
That the network (arrow diagram) is hardly ever done
by a single person.
DEVELOPING A
NETWORK MODEL
● Define activities
● Order activities
● Establish activity relationships and draw a network
diagram
● Determine quantities and assign durations to activities
● Assign resources and costs
● Calculate ES & LS / Finish times
● Compute float values and identify the critical path
● Schedule activity start / finish time.
DEFINING ACTIVITIES
● Production/construction
– traditional resource utilization
– Involve labor and materials
– Curing of concrete is a viable activity
● Procurement
– The acquisition of materials, money, equipment and
manpower.
● Management
– Extra/management activities (preparing inspection
report, processing shop drawing approval, tracking
submittal approval, as-built drawings, cert. on
factory tests etc.)
ORDERING ACTIVITIES
● Which activities must proceed it?
● Which activities must follow it?
● Which activities can be concurrent with it?
Once the preceding activities are defined, the
activity relationships can now be established and
the network diagram can now be drawn
EXAMPLE
For the footing concreting work, the following activities
are presented below
Activity Description Precedence
A Layout foundation
B Dig foundation
C Place formwork
D Place concrete
E Purchase steel reinforcement
F Cut and bend steel reinforcement
G Place steel reinforcement
H Order concrete
● Complete the table by indicating the preceding activity.
● Make a precedence diagram based on the given table.
EXAMPLE
For the footing concreting work, the following activities
are presented below
Activity Description Precedence
A Layout foundation -
B Dig foundation A
C Place formwork B
D Place concrete G,H
E Purchase steel reinforcement -
F Cut and bend steel E
reinforcement
G Place steel reinforcement C,F
H Order concrete -
EXAMPLE
B
1 4
A
C
E F
START 2 5
D
H
6 END
DURATION
● Estimated time that will be required to complete an
activity.
● Typically in construction activities the unit of time is
day.
DURATION
● Labor Cost and Duration Estimate may be developed
as follows:
QUANTITY OF WORK COST
∗ =COST
QUANTITY CREW HOUR
CREW HOUR
QUANTITY OF WORK
=CREW HOUR
QUANTITY
CREW HOUR
CREW HOUR
=DAYS
HOUR
DAY
DURATION
● When estimating the duration of an activity , the
manager has to be realistic.
● Unrealistically short span time estimates can actually
cause an activity to take longer because:
– Not identifying the reasons why an activity will take
a certain amount of time makes it difficult for you to
come up with strategies that may reduce time;
– If people believe estimates are totally unrealistic,
they won’t even try to meet them.
ASSIGNING RESOURCES
AND COST
● Include evaluation of temporal (time) distribution of
resources and costs.
● Associate each activity with amount of resources
(labor, equipment, materials).
● There are two ways to conduct resource management
– Resource Allocation
If the resources are limited, it has to be allocated
judiciously.
– Resource Levelling
If the project duration is not adjustable
ASSIGNING RESOURCES
AND COST
● Include evaluation of temporal (time) distribution of
resources and costs.
● Associate each activity with amount of resources
(labor, equipment, materials).
● There are two ways to conduct resource management
– Resource Allocation
If the resources are limited, it has to be allocated
judiciously.
– Resource Levelling
If the project duration is not adjustable
SCHEDULING ACTIVITIES WITH
LIMITED RESOURCES
● Schedule activity to start as soon as their predecessors
have been completed.
● If more than one activity is using a specific limited
resources, priority is given with earliest late start.
● If activity are tied for the early late start date, give
priority to the activity with the least total float.
● If activity are tied for total float give priority with the
largest number of resources.
● If the activity are tied with the number of resources,
give priority with the activity that has already started.
● If no activity has been selected with the above rules,
simply start the activity that occurs first in the input
order.
EXAMPLE
● Draw a network for a house construction project. The
sequence of activities with their predecessors are
given below.
ACT START/FINISH DESCRIPTION PREDECESSOR DURATION
EVENT
A 1-2 PREPARATION OF PLANS - 4
AND DESIGN
B 2-3 HOUSE CONSTRUCTION A 58
C 3-4 DOORS AND WINDOWS B 2
D 3-5 ELECTRICAL WIRING B 2
E 4-6 PAINTING C 1
F 5-6 POLISH DOORS AND D 1
WINDOWS
EXAMPLE
PROCEDURE FOR SCHEDULING A
PROJECT
● Identify each activity to be done in the project, and
estimate how long it will take to complete each activity.
● Determine the required sequence of activities, and
construct a network reflecting the precedence
relationships.
● Determine the critical path.
● Determine the early start/finish and late start/finish
schedule.
ESTIMATING TIME OF
COMPLETION
● Planning the schedule of the project time estimates
includes the following:
– Total time for completion.
– ES - Earliest start time:
the earliest time at which the activity can start given
that its precedent activities must be completed first.
– EF - Earliest finish time:
equals to the earliest start time for the activity plus
the time required to complete the activity.
– LF - Latest finish time:
the latest time in which the activity can be
completed without delaying the project.
ESTIMATING TIME OF
COMPLETION
– LS - Latest start time:
equal to the latest finish time minus the time
required to complete the activity.
– FORWARD PASS:
The early start and early finish times are calculated
by moving forward through the network and
considering the predecessor activities
Considers maximum
– BACKWARD PASS:
The latest start and finish times are calculated by
moving backward through the network.
Considers minimum
ESTIMATING TIME OF
COMPLETION
– SLACK TIME:
Slack time for an activity is the difference between
its earliest and latest start time or between the
earliest and latest finish time.
Critical path is the path of activities having zero
Slack time.
EXAMPLE
Develop the network diagram for the warehouse
project below.
EXAMPLE
The solution will be as follows:
EXAMPLE
Using the following network diagram, compute for the
value of ES and EF
C
A 8 days
1 2 4
10 days
F
D
B 4 days
13 days
6 days
E G
3 5 6
12 days 2 days
Determine the Early Start / Early Finish
Determine the Late Start / Late Finish
EXAMPLE
● Taking and Early start of 0 for the activities without
predecessors, Activities A and B are assigned to 0
EFA = 0 + 10 = 10
EFB = 0 + 6 = 6
● The EF of activity A becomes the ES for the two
activities C and D
ESC = 10
ESD = 10
● Similarly, the EF of activity B becomes the ES for
activity E
ESE = 6
EXAMPLE
● The corresponding time for these activities are
EFC = 10 + 8 = 18
EFD = 10 + 13 = 23
EFE = 6 + 12 = 18
● Activity F has an early start ESF equal to EFC hence
EFF = 18 + 4 = 22
● Activity G, which has 3 predecessors whose EF are
18, 22 and 23
EFG = 2 + 23 = 25
EXAMPLE
● The summary of the computations above are as
follows:
ACTIVITY DURATION ES EF
A 10 0 10
B 6 0 6
C 8 10 18
D 13 10 23
E 12 6 18
F 4 18 22
G 2 23 25
EXAMPLE
● In the first part of the example, the EFG is determined to
be 25 and this automatically becomes the LF
EFG = LFG = 25
● Solve for the value of the Late Start LS by going
backwards starting from day 25
LSG = 25 – 2
● For activity G to start not later than day 23 all immediate
preceeding activities must be finished by that time
hence
LSF = 23 – 4 = 19 LSB = 11 – 6 = 5
LSD = 23 – 13 = 10 LSC = 19 – 8 = 11
LSE = 23 – 12 = 11 LSA = 10 – 10
EXAMPLE
● The summary of the computations above are as
follows:
ACTIVITY DURATION LF LS
G 2 25 23
F 4 23 19
E 12 23 11
D 13 23 10
C 8 19 11
B 6 11 5
A 10 10 0
EXAMPLE
Using the following network diagram, compute for the
value of ES and EF
C
A 8 days
1 2 4
10 days
F
D
B 4 days
13 days
6 days
E G
3 5 6
12 days 2 days
Determine the Length of each path
Determine the Critical Path
Amount of Float
EXAMPLE
● The summary of the computations above are as
follows:
PATH Length (Days) Float / Slack
1–2–4–5-6 24 25 – 24 = 1
1–2–5-6 25 25 – 25 = 0
1–3–5–6 20 25 – 20 = 5
PROBABILISTIC DURATION
● In the CRITICAL PATH METHOD, the duration of an
activity is considered to be know with certainty but in
the case of PERT, the duration of an activity is seen
with consideration to uncertainty hence its is
probabilistic.
● The probabilistic duration of an activity can be
classified as follows:
– Optimistic Time To
– Most likely time Tm
– Most Pessimistic Time Tp
PROBABILISTIC DURATION
PROBABILISTIC DURATION
● Taking all these time estimates into consideration, the
expected time of an activity is arrived at.
– The average or mean (Ta) value of the activity
duration is given by:
– The variance σ of the activity time is calculated
using the formula,
PROBABILISTIC DURATION
● Taking all these time estimates into consideration, the
expected time of an activity is arrived at.
– The average or mean (Ta) value of the activity
duration is given by:
– The variance σ of the activity time is calculated
using the formula,
PROBABILISTIC DURATION
● The probability of completing the project within the
scheduled time (Ts) or contracted time may be
obtained by using the standard normal deviate where
Te is the expected time of project completion.
● Probability of completing the project within the
scheduled time is,
EXAMPLE
An R & D project has a list of tasks to be performed whose time estimates
are given in the Table as follows.
● Draw the project network.
● Find the critical path.
● Find the probability that the project is completed in 19 days. If the
probability is less that 20%, find the probability of completing it in 24 days.
EXAMPLE
The expected time for each activity corresponds to the
mean time that were computed using the equation
● Likewise the variance will now be computed using the
equation
EXAMPLE
The network diagram is shown below
EXAMPLE
The results are now tabulated as follows:
The highlighted activities represents the critical
path
EXAMPLE
The probability of completing the project within 19 days is
given by, P (Z< Z0)
● Thus, the probability of completing the R & D project in 19
days is 9.01%.
● Since the probability of completing the project in 19 days is
less than 20% As in question, we find the probability of
completing it in 24 days.
EXAMPLE
For the given project shown below:
● Determine the
probability that the
project will be
completed in 40 days
COST ESTIMATE DESIRED
OUTCOMES
● Has to be COMPLETE
Missing scope is probably the major risk for cost
estimating.
● Has to be DETAILED
A detailed cost estimate should provide the proper
level of detail
● Has to be VALIDATED
A cost estimate should never be approved without the
ability to validate the data within the cost estimate.
COST ESTIMATE DESIRED
OUTCOMES
● How do we mitigate the risk of missing scope?
– Cost estimate development planning
– Allocate proper resources to complete the cost
estimate
– Collect all relevant project information
– Develop and review the Work Breakdown
– Structure before starting any cost estimating
activities
– Implement take-off and cost estimating procedures
that minimize the risk of errors
COST ESTIMATE DESIRED
OUTCOMES
● The level of detail in an estimate must be on such
level that
– Validate scope completeness
– Allow for desired reporting
– Accommodate the high and detailed level cost
reviews
– Allow for data feed to the preliminary construction
schedule
– Allow for data validation
COST ESTIMATE DESIRED
OUTCOMES
● How do we validate cost estimate data?
– By developing a proper price sourcing strategy
– By comparison against existing, in-house similar
project cost data
– By using commercially available similar projects
cost data
– By consulting with construction professionals within
the company
– If there is data within the cost estimate which
cannot be validated, it should be registered as risk
and priced accordingly.
