AR 523A: PROJECT MANAGEMENT

Finals Handouts
1.

Procurement Processes
In project construction, the importance of the procurement liability for getting the right materials delivered from the suppliers to the site
on time cannot be taken for granted. A minor item or low value material not available when needed can stop the construction activities,
put people out of work and delay of completion. For instance, in the absence of a common wire nails carpentry work activities could be
paralyzed. In general, the purchasing agent is made responsible for maintaining the following major procurement factors:
1.
Quality of the materials
2.
Quantity of the materials
3.
Time of delivery
4.
Price of the materials
The procurement department and his agent are expected to:
1.
Know and maintain records showing the materials and their possible substitute, sources of-supply, prices and quantities
available.
2.
Review specifications for possible simplifications and standardization of materials as for unreasonable requirements.
3.
Negotiate with suppliers for possible extension of credit.
4.
Gather and analyze price quotations and fluctuations'
5.
Place orders with suppliers
6.
Follow up purchase orders for delivery as specified
7.
Audit invoices to check compliance with agreed terms and conditions
8.
Maintain records of all purchases
9.
Coordinate with other departments on all matters pertaining to Procurement.
The prerequisite of any purchasing contract is meeting of the minds "at to the exact nature of the materials required and to be furnished.
Material standard which define; the major requirements such as; size, color, forms, composition, performance of the materials and also
the state acceptance terms' and shipping conditions requires purchase specifications. These are materials which are purchased by
catalogue number, description or by its name. This practice is practically simple but because of specifications of banded catalogue
items are often subject to change.
Purchase order usually starts from a Purchase requisition. It specifies the kind, quantity and when is to be delivered. Purchase
requisitions are serially numbered as an in filing and follow up. For items ordered regularly, a travelling requisition is used. This is a
card carrying the usual information on the purchase requisition but with space for the word repeat order. This is used over and over
again without the retrying data. This procedure, eliminate clerical works and the need for a separate purchase history record.
Materials bought under continuing contract or those purchased repeatedly do not require quotations from the supplier since all the
necessary information is already available to both parties. In case of repeat order, the purchase order form might include the phrase
"as previously furnished on our PO No. __. The unit price and discount expected will likewise be shown as with the purchase order
number and that of the original requisition.
a.

Inventory Control

Effective inventory control is aimed at providing an adequate but not excessive supply of materials at hand at all times to meet operating
requirements. However, for most companies, inventories perform two functions:
1.
2.

2.

They act as safety stock of materials or in effect, short term insurance against fluctuations in supply.
Inventories permit a company to operate with disconnected processes in the construction and disbursement cycle.

Site Management of the Work

Safety in the project construction must be given primary considered from the mechanical side to the legal angles of workmen's
compensation or even as a matter of training and motivation toward safe work practices for workers.
The immediate supervisor's responsibility is to see to it that the working place is properly arranged and maintained wherein the
equipment, scaffoldings and the like are all in safe operating conditions. He should strictly see to it, that all workers do follow the safe
working habits.
Regardless of the exact percentage relationship, influencing human motivation to work safely is an important responsibility of the
foreman and supervisors. Safety must begin from the drawing board. In the original design of the layout of work place or tools, accident
hazards may be built in or eliminated. A safety minded project engineer will make adequate provisions for safety measures to:

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 1 of 16

1.
2.
3.
4.
5.

Minimize manual handling hazards of materials.

Will locate control and fuse panels where they can be reached safely.
Will install strong and rigid forms and scaffoldings
Will insulate all live wires and screen high pressure areas.
Will adequately guard belting and line shafting even if it is normally accessible.

The safety minded engineer is one representative of management whose interest is primarily on safety. In addition to accident
prevention, a complete safety program has to do with promotion of workers health, with prevention of such occupational diseases and
fire prevention. Fire protection as safety function, is highly important for some of the materials being used might be flammable.
a.

Planned Maintenance

Effective maintenance of the plant and construction equipment is a prerequisite to efficient operation and uninterrupted construction
activities. 'While deterioration of building cannot be stopped, it can be retarded by maintenance.
Machine and equipment likewise, are subject to wear and tear from use. Machine tend to got out of adjustment not only as the result of
use, but also because of temperature changes, vibration, seasoning of machine parts and a host of other causes.
Time is likewise a factor as corrosion forms in-bodies and on various vital parts of the machine. Dirt gradually finds its way into many
types of equipment. Moisture seeps into electrical windings and breaks down insulation. To counteract the effect of all these inherent
diseases in equipment, the only wonder drug that could be prescribed is proper periodic maintenance.
Planned maintenance is an organized attempt to prevent sudden breakdown in equipment and periodic shut down for repairs. It is
accomplished under the program of preventive maintenance, a definite program of periodic cleaning, servicing, inspection and
replacement of worn parts.
Preventive maintenance has long been an economic necessity for construction equipment which must operate on a continuous process.
When failure does occur, investigation is made to know the cause, and statistical records are kept to indicate whether or not the
preventive maintenance program is effective and working. Maintenance for the machine and equipment is very costly. Continuity of
operations demand that the following general procedures should be carried but:
1.
2.
3.
4.

Down time of each equipment for servicing is planned in advance.

Important items of equipment that requires regular cleaning and maintenance or liable to sudden failure should be ready at
hand for substitution at any time of failure or signs bf approaching failure.
Records should be maintained and analysis made of repetitive failure.
Regular and prescribed inspections should be made for signs of impending failure.

A number of engineers feel that in the long run, the cost of regular inspections of equipment exceeds the cost of failures that are hereby
prevented. They pointed out, that many break downs occur suddenly and without warning. Hence, predicting the approach of such
failures is statistical improbable.
How does one foresee a fractured drive shaft, a sticky hydraulic valve, a limit switch that suddenly fails to operate a transformer that
blows up? These are only few of equipment breakdown head ache which are difficult if not impossible to cure by the inspection
medicine. Thus, every case of preventive maintenance inspection must be weighed on the balance scale of cost. The question is: does
an ounce of prevention really affect a pound of cure, or does a pound of prevention result in only an ounce of cure?
Where machine and equipment have been in operation for a considerable period of time, records of the timing and extent of failures are
available. Knowing the probability of breakdowns and their associated costs, the expected expenses of different maintenance policies
are calculated. Preventive maintenance program is indicative of the value of calculation, which revealed the interval between overhauls
that minimizes maintenance costs.
Economic reasoning frequently must bow to other considerations. On some items of equipment, failure is prohibitive from the standpoint
both of property damage and of employee safety. The frequency of inspections will depend upon the name of, the facility or item being
checked" its importance to the continuity of operations or to the safety at the plant and workers and the time interval from the first
indication of trouble to the actual failure. General inspection of machinery can be scheduled at intervals of perhaps 3 to 4 months
depending upon the volume of service or operations.
Equipment Rental
The trend in construction business is to have equipment rented. In very recent years there has been a significant swing toward the
rental of equipment as opposed to outright purchase.
This trend has found particular favor in rental plans for construction equipment delivery trucks, materials handling trucks and office
equipment.
tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 2 of 16

Renting equipment offers the advantages of no capital outlay, no maintenance or servicing worries for the user, and rental cost fully
deductible on income tax classified as current business expense. Whether the long range cost of such rentals compared with
ownership is lower is a debatable point which each company must decide on the merits of its own case.
3.

Program Evaluation and Review (PERT) and Critical Path Method (CPM)
Introduction
What is PERT and what is CPM?
PERT is a Program Evaluation and Review Technique. CPM is the Critical Path Method.
PERT and CPM were developed independently in the later part of 1950's. These two are networks. A Technique, used for planning and
coordinating large scale projects.
The use of PERT began in 1958 through the joint efforts of the Lockheed Aircraft, the U.S. Navy Special Project Office and the
consulting firm of Booz, Allen & Hamilton in the efforts of the U.S. government to speed up the Polaris Missile project.
The U.S. government's apprehension that the Soviet Union, might gained nuclear superiority over the U.S., early completion of the
project was given top priority. A Special operations research team was directed to formulate a new approach considering that the
management concepts and methods at that time were not adequate, the concept was formulated by the research team and is then
called Program Evaluation and Review Technique, which is simply called PERT.
The Polaris Missile project is a large one involving over 3,000 contractors and 11,000 sub-contractors with several thousands of work
activities. The use of PERT in this large scale project was proven successful in shortening the length of the project completion time.
In 1956, prior to the development of PERT, the Critical Path Method which is simply called CPM was developed by J.E. Kelly of the
Remington Rand Corp. and M.R. Walker of Du Pont in an effort by commercial industry to make an advanced scheduling and cost
control methods. By April 1958, CPM in application was demonstrated in a real success.
CPM was designed as a tool for planning, scheduling, and control of construction work. Its emphasis was on the work or activities to be
managed. The network diagram defined and focused attention on the job to be accomplished. The schedule derives the earliest and the
latest times for their start and finish.
PERT was developed as a result of looking for an improved method of planning and evaluating progress of a large scale research and
development program. It was designed to provide the management a periodic reporting of current status and an outlook for the future
on meeting approved plans and schedules. It answers the questions such as: "Is this a feasible schedule? And what are the
probabilities of making it?
Although PERT and CPM were developed independently, yet, they have a great deal in common. Users adopted certain features from
one technique for use with the other. For instance, PERT originally stressed probabilistic activity time estimate because the field in
which it was developed was typified by high uncertainty. In contrast, CPM originally made no provisions for variable time estimates.
However, from a conceptual analysis, most of these differences were relatively minor. For practical purposes, the two techniques are
the same. Thus, comments and procedures described will apply to both PERT and CPM project analysis.
PERT/CPM is a control tool for defining the parts of construction job and then putting them together in a network form. It serves as an
aid to the construction manager but it does not make decision for him nor does it guarantee good management. PERT/ CPM only
serves the project manager to see the whole picture of the entire job. It encourages periodic re-evaluation and providing an accurate
measure of progress. Thus, a person in charge of each work and the project manager know what is supposed to happen and when it is
supposed to happen.
PERT/CPM Project Requirements
Today, ether of the two techniques can be used with deterministic or probabilities of time. The remarkable historical record of PERT and
CPM on large scale projects accomplishment has gained worldwide acceptance. In all major projects of the government, PERT and
CPM network is a mandatory requirements.
Under Presidential Decree (PD) 1594, Prescribing Policies, Guidelines, Rules and Regulations for government infrastructure contracts
provides that:
"The program of work shall include, among others things, estimates of the work items, quantities, costs and a PERT/CPM network of the project
activities, in the preparation of the bidding documents, the government shall make an estimate of the actual number of working days required to
complete the project through PERT/CPM analysis of the project activities and corrected for holidays and weekends."

On January 27, 1968, President Ferdinand E. Marcos issued Memorandum Circular No. 153 which provides that:
"In order that the performance discipline on the field could be controlled and easy reporting system could be made to facilitate the monitoring,
evaluation, inspection completion of infrastructure projects, all heads of departments and chief of bureaus and offices concerned are hereby required to
tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 3 of 16

change the old system of preparing the work programs of said projects from the Gantt Chart (Bar Type) to the PERT/CPM network. Strict compliance
herewith is enjoined."

On June 19, 1968, the Executive Committee for Infrastructure Program implemented the Presidential Order in a letter to all
implementing agencies to wit:
"Your attention is invited to a Presidential Order requiring the preparation of a PERT/CPM diagram for every major project prior to their actual
construction."

Section 6 of R.A. 5979 requires the application of PERT/ CPM technique to all projects with an estimated cost of P100,000 or more.
Thus, PERT/CPM now has become an integral part as requirement of project construction management.
With the use of PERT/CPM, the project manager can easily obtain the following information:
1.
The graphical display of project activities
2.
An estimate of how long will the project last
3.
Determine which activities are the most critical to timely project completion.
4.
Determine how long any activity can be delayed without lengthening the project.
4.

Phases of PERT/CPM
The three phases of PERT/CPM are:
1.
Planning
2.
Scheduling
3.
Control-Monitor
PLANNING is defined as determining the relationship between the work operation and the sequence in which they are to be performed.
Scheduling or sequence involves distribution of work time to each work operation and determining when to start and when to finish.
Each work operation can be performed in different ways at different costs and in different time duration. Most construction projects
have specified time of staff and time of completion. When the contract time is less, in effect it requires higher indirect costs. Thus, in
order to catch-up with the allotted time, some of the operations must be speeded-up. Consequently, to speed up construction work
requires higher direct cost because of overtime, shift of work, additional manpower and equipment and various expensive methods
which are not done on normal construction operations with sufficient time duration.
However, there is a danger that shortening a single operation may only increase project cost but may not shortened construction time
considering that other operations have not been shortened. On the other hand, shortening all operations at the same time may only
increase project cost more than what is necessary to obtain the desired decrease of construction time.
The Critical Path Method (CPM) offers the solution through systematic approach. The specific information provided by the CPM are
enumerated as follows:
PERT/CPM pinpoints the particular work operations whose completion times are responsible for controlling the completion
date.
2.
It provides a means of speeding up a project without excessive costs for overtime. Without the use of PERT/CPM when
speeding up the project overtime expenditures may be in total waste.
3.
It gives a time leeway or float available for each of the non-critical work operation. The information on float time will give the
project manager that opportunity to maneuver in their planning and control of the operations.
4.
It establishes time boundaries for operations with possibilities of shifting resources' equipment and manpower to meet time
requirements.
5.
PERT/CPM indicates the earliest starting date for each work operations and sub-contracts for supply and delivery of
materials.
6.
It shows the most advantageous scheduling for all operations. This gives planning information as to time and cost in choosing
methods, equipment, crew, and work hours.
7.
It offers a means of assessing the effect on the overall project variations in one operation such as change orders.
8.
In case of change order where the owner would not want to extend the contract time, PEM/CPM offers a means of rescheduling the operations but still to be completed at the least increase in cost.
9.
With the critical path schedule as revised to reflect the change order, any claim if any, for additional payment will be
understood both by the owner and the contractor.
10. In case of serious delay due to weather, late material or equipment delivery the network can be revised at that stage and new
computation is made to determine the new critical operation if any and revised float times determined for the non-critical
operations.
1.

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 4 of 16

In any project construction undertaking s, planning is the most important consideration which includes:
1.
2.
3.
4.
5.
6.
7.

Gathering of all the necessary input data to make the PERT/CPM works.
Planning phase is the main work of the contractor for being familiar and knowledgeable of his costing methods of doing
business.
The contractor can seek assistance for the accomplishment of his work particularly the gathering of data, but his basic
responsibility on this matter cannot be delegated to any outsider group.
The contractor has the complete perception, experiences, resources, and interest in getting the project done in the best
possible time and cost.
The planning stages give the contractor a "Dry Run" on the construction of the project
If the contractor wants an effective approach and use of the construction management, he must do it himself.
By performing the work personally, one obtains intimate firsthand knowledge of the job and gain insight and details of
anticipated problems.

SCHEDULING is defined as the process of translating the arrow diagram into time table of calendar days. This is done by the day date
table converting working days into calendar days which permits the inclusion of weekends, holidays, weather and other time lost.
The PERT/CPM schedule shows the relationships between the operations and the leeway limitations. All activities should be checked
with the day to day table. All crew and management restraints along the critical path should be verified and the restraints should be
adjusted to give satisfactory project completion. Non critical activities can be scheduled to more efficiently utilize manpower and
available resources.
Job control through the use of PERT/CPM give the management a reliable system identifying job problems within days instead of
months. Progress along the arrow diagram should be up dated for immediate references. The diagram must show the status of the
project at any time and indicate which activiti6s can be started and to pinpoint the cause of the delay.
The PERT/CPM diagram should be updated periodically to account for:
1.
Time discrepancies
2.
Deliveries
3.
Weather
4.
Change orders
5.
Unexpected events or conditions.
Updating of the diagram is based on the number of, days the project is out of schedule.
CONTROLLING and MONITORING
Flexibility and updated re-computations brought about by changing conditions is the key to a successful network programming. To keep
the schedule more up to date and meaningful, it can be done by hand but is more easier and less in cost if it is done with the assistance
of computer to have the following output.
1.
2.
3.
4.

The contractor is supplied with time status reports showing the overall status of the project in general and in particular.
The contractor is provided with revised schedules which reflect the actual work conditions and the project status.
The contractor is supplied with cost status reports showing how much money is being disbursed for what type of expenses.
The contractor should be supplied with those reports as frequently as desired or required to maintain control over the project.

In the Planning Phase, there are five inputs that can be obtained:
1.
2.
3.
4.
5.

A network diagram defining the activities in the project.

The duration of activities
Cost estimates of the activities for monitoring cost, cash flow requirements
Resource Estimates
Trade indicators (responsibility) for activity grouping.

From the Schedule Phase, there are four outputs that can be obtained:
1.

The schedule of activities in the network showing the following:

a. The Critical Activities
b. The Earliest Start date for each activity
c. The Earliest Finish date for each activity
d. The Latest Start date for each activity
e. The Latest Finish date for each activity

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 5 of 16

The Float which refers to the amount of extra time available for an activity.
A Bar Chart or a Time Scaled Network (arrow diagram network for the project).
A Resource Analysis showing the number and kind of resources, manpower, equipment and others that are required for each
day of the project.
A Cash Requirement prediction indicating how much cash to be disbursed for the job and the amount of money that will be
collected as a result of work accomplishment.
f.

2.
3.
4.

The Control Monitor Phase uses actual data which includes:

1.
Additions to the project - This refers to the new activities
2.
Deletion from the project
3.
Changes as to duration, description, trade indicators, cost estimates or resource estimates.
4.
Actual starting dates
5.
Actual finishing dates.
The Output Phase consists of the following:
1.
Time status report
2.
Revised schedules
3.
Revised Bar Charts/ Arrow Diagram or Network
4.
Revised resource analysis
5.
Revised cash flow predictions
6.
Cost status reports
There are three major reasons for construction failure:
1.
Unbalanced organization due to lack of planning and scheduling.
2.
Lack of financial planning
3.
Poor cost control
5.

THE NETWORK FUNDAMENTALS

Network Conventions
The making and reading of a network diagram requires some familiarity of the network conventions. One of the main features of PERT
and CPM is their use of a network or precedence diagram which is the key in solving typical problems. The precedence diagram,
clearly indicate which of the activities must be performed in the sequence and which can be performed independently with each other.
The network diagram is composed of a number of Arrows and Nodes.
There are two slightly different conventions for making a network diagram" They are:
The Nodes in the AOA approach represents the beginning
and the end of activities, which are called event. Events
are point in time. Unlike activities, they do not consume
either resources or time. Activities can be referred to in
two ways.
One is by their end points such as activity 1-2 and the
other is by a letter assigned to an arrow such as activity
a,b,c, etc. The network describes sequential relationships
among different activities of the project. For instance,
activity 2-3 cannot be started according to the network
until activity 1-2 has been completed

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 6 of 16

The Elements of Networking Diagramming

Principles in Networking or Arrow Diagram

Principle No. 1
That everything in the network or arrow diagram must have a meaning. Thus;
In this figure, pouring of footing slab and pedestal
depends upon completion of the two activities that
enter into their common starting point 3. Hence, it is
impossible to pour concrete on footing slab or
pedestal until after making both forms and delivery of
cement have been completed.

In this diagram (Figure 5-6), the three activities of

staking, batter boards and digging which start from
event 5 must wait until all activities entering event 5
have been entirely completed.
Principle No. 2
That an activity has a single definite starting point and a single definite ending point.
An arrow in the network must satisfy two basic questions:
1.
2.

What activities must be completed before this one can start?

What activities cannot be started if this one is not completed?

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 7 of 16

From the figure 5-7, block laying cannot be started until

after the pouring of concrete footing is finished. Similarly,
pouring of footing cannot be done unless the forms and
digging have been completed. In short, the interrelationships of the activities were; block laying precedes
pouring of footing; pouring of footing pre- cedes forms
assembling and forms assembling precede digging.

Principle No. 3
The network (arrow diagram) does not describe time relationships but rather dependency relationships.
The length and direction of an activity arrow has no relationship with the amount of time required to accomplish the work presented by
it. Similarly, two activities starting with the same event do not necessarily occur at the same time.
Figure 5-8: The arrow diagram defines the activity
dependency situations that exist. Activities B and C does
not mean that both activities must be conducted at the
same time. They might but probably will not. What is
important to note here is that these two activities are
independent.

Principle No. 4
That the network (arrow diagram) is hardly ever done by a single person.
The accomplishment of the schedule made in the network diagram is influenced by several number of people who have something to
do with the project and should be consulted when making the network.
Likewise, the sub-contractors and suppliers should be asked to review the network to be sure that the activities affecting their
participation are accurately and realistically described.
Fundamental Elements of PERT/CPM Networking
The fundamental elements of PERT/CPM networking activities are: Activity, Event and Time
Activity - Is the work operations required to complete a task or in some cases, a segment of that task. In short, it is the actual work
between events.
For example: each particular work such as clearing, excavation, foundation and concreting works are indicated by an arrow on the
project network.
The arrows should always point to the right. And arrow which represents activity is identified by a numbered circle at its tail and
another number circle at its point. The description of the activity is written along the arrow.
Events - Is a point in time signifying the beginning or end of one or more activities. It denotes the completion of all preceding or
predecessor activities and the beginning of one or more succeeding activities.
The event is indicated on the network as a circle, square, ellipse or any form of geometrical symbols with a number written therein
for identification.
1.
Numbering the events follows the construction of the network.
2.
No two events shall have the same identification number in the network.
3.
For this reason, one or more dummy activities may be used in a network.
tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 8 of 16

Activities can either be:

1.
By their end points such as l-2; 2-4; etc.
2.
By letter assigned to an arrow such as; a, b, c, etc.
The network diagram indicates sequence of relationships
among major activities on a project. For instance, activity
2-4 cannot be started according to the network until after
activity 1-2 is completed.

Dummy Activity - Is an arrow on a network showing the dependent relationship between two activities. However, dummy activity does
not represent actual work efforts, and do not consume time. Dummy activity may be used in the network to distinguish between two or
more parallel activities.
Duration of an Activity - Is the time it takes an activity to be finished. In short, this is the normal time duration of a task. Duration
activity is the span of time from the Early Start to its Early Finish or from its Late Start to its Late Finish.
Path - A Path is a sequence of activities that leads from the starting node to the finishing node. Thus, the sequence I-2-4-6 in the
network of Figure 5-9 is a path. There are two paths from the starting node to the finishing node. They are:
a. Path l-2-4-6
b. Path l-3-5-6
Comment:
1.
2.
3.
4.
5.
6.
7.
8.
9.

The length or time of any path can be determined by adding the expected time of the activities along that path.
The path with the longest time catches management interest because it governs the project completion time.
In short, the expected duration of a project is equal to the expected time of the longest path.
If there are delays along the longest path, naturally there is also a corresponding delay in project completion time.
Therefore, any attempt to shorten the project completion time must concentrate on the longest sequence of activities because
of its relation to the completion time.
The longest path is the critical path and, its activities are called the critical activities.
Paths that are shorter than the critical path may experience some delay but may not affect the overall project completion time
as long as the ultimate path time does not exceed the length of the critical path.
The allowable slippage for any path is called the path slack or floats time. It indicates the difference between the length of a
given path and the length of the critical path.
The critical path then has a zero slack or float.

The Network Diagram

a.

Introduction

All kinds of project be it engineering, administrative or construction have their own unique characteristics. However, there are certain basic
characteristics, which are common to any project. Every project is composed of works, activities, tasks or functions that are related to one or
the other in some manner.
But generally, they must all be completed because the main goal is to finish the project under the following objectives.
1.
To complete the project at the earliest minimum time.
2.
To use any available manpower, equipment and other resources
3.
To complete the project with a minimum capital investment without causing undue delay.
For management to function effectively, the project planning system used must consider all available alternatives. The options could be a
possibility of utilizing its full resources such as money, manpower, facilities and equipment. Only when management knows and learn how to
use these options can it discharge its responsibilities.

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 9 of 16

This is a management problem of how to select the plan, which will utilize all resources effectively as possible. The answer is PERT/CPM.
A basic tool that will tell the management how to build a project on a pre-determined activities and number of days at a projected cost.
Construction management basically considers Time as the controlling factor of all available resources from money, manpower, facilities and
equipment. As the controlling factor:
Time versus number of manpower
Time versus number of equipment
Time versus Peso

b. Planning and Scheduling

In Planning, the logical sequence of the job to be performed must be formalized under the following considerations:
1.
The logic of its sequence must be reviewed for correctness.
2.
A further review should be entertained to ascertain that all phases of works should appear.
3.
That the scope of work is correctly interpreted.
Resources which are required in performing each job must be in place and available when needed. Resources can be time, manpower,
equipment, facilities and money. Management must review the plans and the resource requirements and then select a project plan that
offers the best for the project.
Planning Objectives
The project manager's objective in planning could be summarized as follows:
1.
To represent graphically the specific job and the proper sequence of the job.
2.
To establish a medium for estimating the time, manpower or other resources necessary for each job.
3.
To have available sequential arrangement of the jobs, an accurate estimate of resources and the alternative plans based on the
scope of work.
Scheduling - is only secondary to planning. It is the process of allocating calendar dates to jobs based on the approved plan. General time
boundaries are determined for each job during the process of planning.
c.

Definition of Terms

In developing a Network Diagram, there are important terms that we must be familiar with because of their importance and functions in the
network. Unless these terms are known, we will be lost in the process of network diagramming.
Critical Path - Is the longest route in the network of activities representing a project. The sum of the activities duration along this route
is the duration of the project.
In other words, the time required to complete a project is numerically equal to the length of the route which is called critical path.
Activities along the critical path are called Critical Activities of the project and any delay in their completion may result in the delay of the
entire project.
There may be more than one critical path in a network and the critical path may shift as the project moves toward the completion.
Earliest Event - Is the earliest time occurrence of an event sometimes called Earliest Event Time or Early Event Time. It is the earliest
time an event can happen without delaying the Earliest Start of any activity.
The Earliest Event time is numerically equal to the longest path of activities in series from the project start to the finish. Unless
specified, the Earliest Event Time of the starting event is assumed to be zero.
The Earliest Start of an activity cannot be earlier than the earliest event time of the event. In other words, the Earliest Start of any
activity is always equal to the Earliest Event at the beginning of an arrow which is sometimes called i-node. The point of an arrow is
called j-node.
i- node

j- node

Early Start is not necessarily the point in time that the activity will be over, but it is the earliest time that it can occur. It is the first day
after the physical assumption of the activity.
The Earliest Finish of an activity is equal to its Earliest Start plus its duration or time. Therefore:
ES = ES + Duration or
EF = Early Event + Duration

The Latest Event time - is the latest time the event may occur without delaying project completion. It is numerically equal to the length
of the critical path minus the longest path from the project and event to the event in question.

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 10 of 16

The Latest Finish of an activity cannot be later than the latest event time of its j-node. In short, all activities with the same J-node have
the same late finish which is the same as the latest event time at their common node.
The Latest Start plus Duration is equals the Latest Finish.
LS + D = LF or
LS = LF - D

Activity Total Float or Activity Total Slack - Is the span of time an activity can be delayed after its earliest start time without delaying the
project completion. It is numerically equal to the total time for the activity minus the activity duration.
LF - EF = Total Float or
LS + D - (ES+D) or
LS - ES = Total Float

The activity Free Float - is the span of time an activity can be delayed after its Early start without delaying the Earliest start of any
succeeding actual activity that may be availed of and still allow its succeeding real activities to begin at their Earliest Start time.
It is numerically equal to the ES of any of its succeeding rear activities minus the Earliest Finish (EF) of an activity in question.
Activity Free Float is equals the Early Event time at the i-node of the next succeeding real activity minus the EF of the activity.
FF = ES - (ES+D)

Independent Float - Is that portion of the activities Free Float that would remain if all its preceding activities used up all their float. It is
numerically equal to the ES of the succeeding real activities minus the LF of the preceding activities minus the duration of activity in
question.
IF = ES - (LF-D)

When the result of applying this formula is negative, it means that there is no independent float. The independent float is equal to zero.

d.

Computing the Early Start and the Early Finish

For large project networks which contain hundreds or even thousands of activities, computers are used to analyze the programs
considering that the computation is exceedingly complex and time consuming which could not be done manually.
An algorithm is used to develop four types of informations about the network activities, they are:
ES
The Early Start of time activity. This is assuming that all preceding activities start at the earliest time.
EF
Early Finish of time activity.
LS
Latest time the activity can Start and not delay the project
LF
Latest time the activity can Finish and not delay the project.
After determining the value of each activity, we can proceed to find the following.
1.
Expected duration of the project
2.
The slack time
3.
Determine which activity falls under the critical path.
Rules in computing the ES and the EF
Rule No. 1

The Earliest Finish @F) for any activity is equal to its earliest starting time plus its expected duration time t.
EF = ES + t

Rule No. 2

For nodes with one entering arrow' ES for activities at such node is equal to EF of the entering arrow, for nodes with
multiple entering arrows, the ES for activities leaving such node is equals the largest EF of the entering arrow.

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 11 of 16

ILLUSTRATION 1
Using the following network diagram, compute for the value of ES and EF times.

SOLUTION:
Assume an Early Start (ES = 0) for activities-without predecessors or we start from 0. Hence, activities l-2 and 1-3 as starting
activities are assigned to 0.
The EF time for these activities are:
1.
The EF 1-2 = 0 + 10 = 10 and
EF 1-3 = 0 + 6 = 6
2.
The Early Finish (EF) of activity 1-2 becomes the ES for the two activities 2-4 and2-5 that follows it.
3.
Similarly, the EF of activity 1-3 becomes the ES for activity 3-5. Therefore:
ES 2-4 = 10
ES 2-5 = 10
ES 3-5 = 6
4.
The corresponding time for these activities are:
EF 2-4 = 10 + 8 = 18
EF 2-5 = 10 + 13 = 23
EF 3-5 = 6 + 12 = 18
5.
The activity 4-5 has an early starting time ES equal to EF2-4 = 18 and an early finish time of 18 + 4 = 22.
6.
Activity 5-6 with three predecessors has an early starting time ES equal to 18, 22, and 23. Select the largest
number which is 23 plus duration 2 = 25, the early finish EF.
Summary of the above computations:
Activity

Duration

Early Start ES

Early Finish EF

1-2
13
24
25
35
45
5-6

10
6
8
13
12
4
2

0
0
10
10
6
18
23

10
6
18
23
18
22
25

Note: The Latest Finish is the duration of the project. Therefore, the expected length of the project is 25 weeks.
e.

Computing the Last Start and the Last Finish

The Latest Start (LS) of an activity plus the duration is equal the Latest Finish (LF)
LF = LS + Duration or
LS = LF - Duration
ILLUSTRATION 2
Determine the Latest Starting time (LS) and the Late Finish (LF) for each activity of the following network.

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 12 of 16

SOLUTION:
1.
2.
3.
4.
5.

6.

7.

8.
9.

It was found in illustration 1 that EF 5-6 = 25 and this EF is automatically becomes the LF.
Thus, EF= LF = 25 weeks
Solve for the values of LS going Backward from node (6) starting from 25 weeks.
LS 5 - 6 = 25 - 2 (time)
= 23
For activity 5-6 to start not later than week 23 all immediate predecessors must be finished not later than that time.
For activity 4-5, subtract ;
LS 4 5; = 23 - 4
= 19
For activity 3 - 5, subtract ;
LS 4 5; = 23 - 12
= 11
In the same manner:
For activity 2 - 5 subtract ;
LS 2 5; = 23 - 12
= 10
For activity 2 - 4 subtract; LS 2 4; = 19 8 = 11
For activity 1 - 4 subtract; LS 1 3; = 11 6 = 5
For activity 1 - 2 subtract; LS 1 2; = 10 10 = 0
Take note that in node (2) we use the smallest value of 10 not 11 weeks in solving backward for LS/LF. Unlike that
in illustration 6-1 we use the largest value of ES as we go forward for the next value of EF.
Since there are two arrows leaving Node 2, that is activity 2-4 with LS = 11 and activity 2-5 with LS = 10 the Latest
Finish (LF) for activity 1-2 which is 10 will be used being the smallest LS for a leaving arrow.

The value of LF and LS found will be tabulated as follows:

Activity

Duration

Late Finish LF

Late Start LS

56
45
35
25
24
13
1-2

2
4
12
13
8
6
10

25
25
23
23
19
11
10

23
19
11
10
11
5
0

The activity oriented CPM network diagram is made under the following Rules:
1.

When an activity is the only predecessor of one or more successors, the activity's Early Finish (EF) is equal to the
Early Start (ES) of any of its successors. This is true because a successor activity cannot start until its predecessor
activity has not been completed.

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 13 of 16

2.

When two or more activities have a common successor, the latter's Early Start (ES) is equal to the Latest Early
Finish of its predecessors. In short, when an activity has more than one predecessor, its Early Start @S) is equal to
the Latest Early Finish of its predecessors. This is true because an activity cannot start until all of its predecessor
activities have been completed.

3.

'When an activity has only one Successor Activity, its Latest Finish (LF) is equal to the Latest Start (LS) of the
Successor. This is so because a Successor activity cannot start until its predecessor activity has been finished.

4.

When two or more activities have only one successor activity, the Latest Start (LS) of the successor activity is equal
to the Latest Finish (LF) of any of its predecessor activities. This is true because a successor activity can only start
after all its predecessor activities have been completed, and provided that their LF do not exceed the LS of their
predecessor, project completion will not be delayed.

5.

When an activity has two or more successors, the Latest Finish (LF) of the activity is equal to the Earliest of the
Latest Start of its successor activities. This is so because the Latest Finish (LF) of an activity cannot be later than
the Latest Start (LS) of any of its successor activities.

ILLUSTRATION 3
From the following network diagram, determine the following:
a. The Early Start (ES) - in days
b. The Early Finish (EF) - in days
c. The Latest Start (LS) - in days
d. The Latest Finish (LF) - in days

SOLUTION:
A. Solve for the Early Start (ES) and the Early Finish (EF)
1.
Activity l-2can start at ES = 0 with a time of 5 days it can finish at EF + 5 = 5 days
2.
This value 5 days being the EF of activity 1-2 is at the same time the ES for the activity 2-5 and 2-4. Thus,
activity 2-4 and activity 2-5 cannot start earlier than 5 days.
3.
At this point, the question is:
What will be the Earliest Start for activity 4-5? Will it be after activity 3-4 which is 4 + 2 = 6 or after activity 2-4
which is 5+3 = 8?
4.
Note that, if two or more activities are entering the node the Earliest Start ES is the Largest value of EF. In this
case we will adopt 8 days being larger than 6. Hence, activity 4-5 has an ES of 8 and an EF of 8 + 3 = 11
days.
5.
Take note again that the EF's of the activities entering the final Node (5) has 9 and 11 days. The largest value
which is 11 is the expected project duration. Thus, both activities must be finished by that time.
B. Solve for the Late Start (LS) and Late Finish (LF)
1.
Determine the value of LS and LF by working back starting from Node (5) using EF = 11
tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 14 of 16

2.
3.
4.
5.
6.

7.

In the case of Activity 4-5, the LS will be 11 - 3 = 8. This means that activity 2-4 and 3-5 must have been both
finished not later than 8 days. Therefore, their LF times are 8 days.
Activity 3-4 now has an LS time of 8 - 4 = 4 making the LF of activity l - 3 equals 4 and its LS is equal to 4-2 = 2
days.
Activity 2-4 with LF time of 8 days has an LS of 8 - 3 = 5 days.
Activity 2-5 has an LF of 9 days minus 4 days = 5 days. Therefore, the Latest Start of activity 2-5 is 5 days and
the latest activity 2-4 can start is 8 - 3 = 5 days
Since activity 1-2 precede both of these activities, it can finish not later than the Smallest Value of LS at Node
(2) which is 5.
Therefore, activity 1-2 has LF of 5 and an LS of 5-5 = 0
Compute the Slack Time using the equation LS - ES or LF - EF.

FIGURE 6-5 SHOWING ES EF AND LS - LF

Activity

LS

ES

Slacks or

LF

EF

Slacks

12
13
24
25
34
45

0
2
5
5
4
8

0
0
5
5
2
8

0
2
0
0
2
0

5
4
8
9
8
11

5
2
8
9
6
11

0
2
0
0
2
0

The activities with Zero Slack Time indicate the critical path. In this particular problem, the critical paths are activities I-2-4-5
having 11 days duration.
For Nodes with several entering activities- the Early Start (ES) time for leaving activities of that Node is the Largest EF of the
entering activities.
f.

Solving the Float or Slack Time

The term Slack is used by PERT which is equivalent to Float of CPM network system.
Slack or Float is the word used for those activities which do not fall on the critical path. Meaning, that these activities have
scheduling Time Leeway that can be used without adverse effect on the project time completion.
The Slack or Float Time is computed by using either of the following equations:
Float = LS - ES or
Float = LF - EF

tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 15 of 16

ILLUSTRATION 4
From the following diagram determine each of the following:
a. The length of each path.
b. The critical path and
c. The amount of float time for each path.

Path

Length in Weeks

Float / Slack

12456
1256
1356

10 + 8 + 4 + 2 = 24
10 + 13 + 2 = 25*
6 + 12 + 2 = 20

25 24 = 1
25 25 = 0
25 20 = 5

* Critical Path - Length in Weeks = Float or Slack

LLUSTRATION 5
From Illustration 6-4, Figure 6-6, solve for the value of Float or Slack.
SOLUTION:
We have two options to use in solving the value of Float. By the use of formula ( LS -ES ) or ( LF -EF ).
Referring to the previous tabulation of activities in Illustration l and 2 we can tabulate the result of LS and ES to find the value
of Float as follows:
Activity

LS

ES

Float ( LS ES )

12
13
24
25
35
45
5-6

( 10 10 ) = 0
( 11 6 ) = 5
( 19 8 ) = 11
( 23 13 ) = 10
( 23 12 ) = 11
( 23 4 ) = 19
( 25 2 ) = 23

At (1) = 0
(66) = 0
( 0 + 10 ) = 10
( 0 + 10 ) = 10
(0+6) = 6
( 10 + 8 ) = 18
( 10 + 13 ) = 23

0
5
1
0
5
1
2

The Critical Path using the above tabulation is indicated by activities with Zero Float Time.
Thus, activities L-2; 2-5; and 5-6 are all critical activities.
Knowing the float time, the manager has a wider detail for planning the allocation of limited resources and for directing control
towards those activities that are susceptible to delaying the project.
The activity float time are based on the 4ssumption that all of the activities on the same path should be started as early as
possible and never to exceed their expected time;
If two activities are both on the same path like activities 1-3 and 3-5 with a .float of 5 and activities 2-4 and 4-S with float of
one week respectively, those number of weeks will be the total float available for both activities. In other words, said activities
have a Shared Slack or Shared Float.
Thus, if one of the activity consume all this float time, the other activities will have a zero float for all the following activities on
that same direction.
Source:

Project Construction Management

Max B. Fajardo, Jr.

Dennis C. de Villa
February 2012
tip\ 523A\ lesson\ prelims.doc\ 11/2/2014\ 9:51:40 PM

Page 16 of 16