NETWOR

KS
 INTRODUCTION

• Network is a technique used for planning and scheduling of large projects in the
fields of construction, maintenance, fabrication, purchasing, computer system
instantiation, research and development planning etc.
• There is multitude of operations research situations that can be modeled and
solved as network. Some recent surveys reports that as much as 70% of the real-
world mathematical programming problems can be represented by network related
models.
• Network analysis is known by many names _PERT (Programme Evaluation and
Review Technique), CPM (Critical Path Method), PEP (Programme Evaluation
Procedure), LCES (Least Cost Estimating and Scheduling), SCANS (Scheduling
and Control by Automated Network System), etc
 NETWORK
• It is a graphical representation of logical and sequentially connected
activities and events of a project. Network is also called arrow
diagram.
• PERT (Programme Evolution Review Technique) and (Critical Path
Method) are the two most widely applied techniques.
 CONTD.
• Network planning techniques first developed in the
1950s and included techniques such as: The Critical Path
Method (CPM). The Program Evaluation and Review
Technique (PERT).
• PERT and CPM are two famous managerial techniques.
PERT is an abbreviation of the Program Evaluation and
Review Technique. CPM is an abbreviation of the Critical
Path Method.
 PERT

• IT is a method to analyze the involved tasks in completing a given project,

especially the time needed to complete each task, and identifying the
minimum time needed to complete the total project.
• PERT is based on the assumption that an activity’s duration follows a
probability distribution instead of being a single value
• So, PERT is a method to evaluate and estimate the time required to
complete a task

• • PERT: E = (O + 4M + P) / 6
 PERT uses three estimates to define an
approximate range for a task’s duration:

• Most likely estimate (M): This estimate is based on the duration of the task,
given the resources likely to be assigned, their productivity, realistic expectations
of availability for the activity, dependencies on other participants and
interruptions.
• Optimistic (O): The task duration based on analysis of the best-case scenario
for the task. This will tell the minimum time the task may take.
• Pessimistic (P): The task duration based on analysis of the worst-case scenario
for the task. This will tell the maximum time a task can potentially take.
 ADVANTAGES OF PERT

• Planning for Large Project: It is used in scheduling large project by the project manager
• PERT chart explicitly defines and makes visible dependencies (precedence relationships) between
the work breakdown structure (WBS) elements.
• PERT facilitates the identification of early start, late start, and slack for each task.
• Optimistic and Pessimistic times considered in the calculation. More weightage is given to most-
likely time. Helps in better estimation
• PERT provides for potentially reduced project duration due to a better understanding of
dependencies leading to improved overlapping of activities and tasks where feasible.
• A large amount of project data can be organized and presented in a diagram for use in decision
making.
 DISADVANTAGES OF PERT

• There can be potentially hundreds or thousands of tasks and individual

dependent relationships.
• PERT is not easily scalable for smaller projects.
• The network charts tend to be large and unwieldy, requiring several pages to
print and requiring specially sized paper.
• Time Focused Method: PERT is a time-bound method, so finishing projects or
activities on time is of high importance. If it does not happen than a problem
can arise
 CPM
• Critical Path Method (CPM) is one of the Tools & Techniques of
Project Time Management. It is used to develop a schedule.
Schedule network analysis is a technique that generates the project
schedule. It uses analytical techniques.
• Example: Critical path method, critical chain method, what-if
analysis and resource optimization.
• These techniques calculate the early and late, start and finish
dates, for the remaining portions of project tasks.
CONTD.
• The critical path method is used to estimate the minimum
project duration. This will help determine the amount of
scheduling flexibility available on network paths. It
calculates the early start, early finish, late start, and late
finish dates for all tasks. These do not consider any
resource limitations by performing a forward and
backward pass analysis through the schedule network. We
would be using the term task and activity interchangeably.
 ADVANTAGES OF CPM

• Provides an outline for long term coordination and planning of a

project.
• Recognizes critical activities
• Easy to plan, schedule, and control project
• It improves productivity
• Manages the resource needed
 DISADVANTAGES OF CPM

• People who are not aware of this method may find it difficult to
understand
• Software used can be expensive
• At times it may take a long time to structure CPM
• CPM may not be able to form or control the schedule of a person
allocated to the project
• Allocation of resources cannot be monitored properly.
 PERT CPM
PERT is that technique of project management CPM is that technique of project management
which is used to manage uncertain (i.e., time is not which is used to manage only certain (i.e., time is
known) activities of any project. known) activities of any project.

It is event oriented technique which means that It is activity oriented technique which means that
network is constructed on the basis of event. network is constructed on the basis of activities

It is a probability model. It is a deterministic model.

It majorly focuses on time, as meeting time target It majorly focuses on Time-cost trade off, as
or estimation of percent completion is more minimizing cost is more important.
important.
It doesn’t use any dummy activities. It uses dummy activities for representing sequence
of activities
 NETWORK TERMINOLOGIES
Activity-
Any individual operation, which utilizes resources and has an end and a beginning, is called activity.
• A task or a certain amount of work required in the project
• Requires time to complete
• Represented by an arrow
 These are usually classified into four categories:
• Predecessor activity
• Successor activity
• Concurrent activity
• Dummy activity
 DUMMY ACTIVITY
• An activity which does not consume any kind of resource but
merely depicts the technological dependence is called a
dummy activity.
• It Indicates only precedence relationships and does not
require any time of effort
• The dummy activity is inserted in the network to clarify the
activity pattern in the following two situations
1. · To make activities with common starting and finishing points
distinguishable
2. · To identify and maintain the proper precedence
relationship between activities that is not connected by events.
 EVENT
• An event represents a point in time signifying the
completion of some activities and the beginning of new ones.
This is usually represented by a circle in a network which is
also called a node or connector.
• The events are classified in to three categories
1. Merge event
2. Burst event
3. Merge and Burst event
 CONTD.
• 1. Merge event – When more than one activity comes
and joins an event such an event is known as merge event.
• 2. Burst event – When more than one activity leaves an
event such an event is known as burst event.
• 3. Merge and Burst event – An activity may be merge
and burst event at the same time as with respect to some
activities it can be a merge event and with respect to
some other activities it may be a burst event.
 CONTD.
• Earliest starting time of activity (i, j) is the
earliest event time of the tail end event i.e. (Es)ij = Ei
• Earliest finish time of activity (i, j) is the earliest
starting time + the activity time i.e. (Ef)ij = (Es)ij + Dij or
(Ef)ij = Ei + Dij
• Critical event – The events with zero slack times are called critical
events.
• Event slack - It is defined as the difference between the latest event and
earliest event times.
• Critical activity – The activities with zero total float are known as
critical activities. In other words an activity is said to be critical if a delay
in its start will cause a further delay in the completion date of the entire
project.
• · Critical path – The sequence of critical activities in a network is
called critical path. The critical path is the longest path in the network
from the starting event to ending event and defines the minimum time
required to complete the project.
• Total float – The amount of time by which the completion
of an activity could be delayed beyond the earliest
expected completion time without affecting the overall
project duration time.
• Free float – The time by which the completion of an
activity can be delayed beyond the earliest finish time
without affecting the earliest start of a subsequent
activity.