N~G~IN~E~ER~S~

C----------.:::M:.::::A:.::NA~G~E=M!:!EN!!T..!:F~OR~E
a also facilitates the
.. tes Varia ble Anal ysis: Its struc tured phen omen
tnitia . l 11-011 and fi ltrati on of the relevant data .
.1n, .,,c;tI<'c
,. n
Used :
-rerm••nologies
term s used in the
unde rstan d some of the relevant conc epts and
Lei uS
decision tree:
it is then divid ed into
Root Node: A ro_o t node c~mp iles the whol e samp le,
bles.
multiple sets w hich comp rise of hom ogen eous varia
er possibilities, can
Decision Node: That sub-n ode whic h diverges into furth
be denoted as a decis ion node .
me whic h cann ot be
Terminal Node: The final node show ing the outco
nal node.
catego rized any furth er, is term ed as a value or termi
s avail able with the
Branch: A branc h deno tes the vario us altern ative
decision tree make r.
cted by a node or sub-
Splitting: The divis ion of the avail able optio n (depi
node) into mult iple sub- node s is term ed as splitting.
decis ion tree make r can
Prunjng: It is just the rever se of splitting, wher e the
decision node .
eliminate one or more sub- nodes from a parti cular

limitations of decision trees

• Only one decis ion crite rion can be cons idere d.
tion of the real
• The decis ion tree is an abstr actio n and simp lifica
are inclu ded.
prob lem. Only the impo rtant decis ions and even ts
even t outco mes
• Mana gers cann ot use decis ion trees if the chan ce
mes so tha t
are conti nuou s. Instead, they must redef ine the outco
there is a finite set of possibilities.

tree is to choo se the best

The significant resul t of the ana lysis of a decision
After thls stage , some
alternative in the first stage of the decision process.
ional infor matio n can
changes in the decis ion situa tions can come, a n addit
decis ion tree and to
be obtained, and usually, it is essen tial to actua lize the
is requ ired befor e every
determine a new optim al strate gy. This proc edur e
fu rther stage.

Question 29:
ital, is suffe ring from
There is 40 % chan ce tha t a patie nt admi tted to the hosp
us opera tion shou ld be
cance r. A docto r has to decid e w hethe r a serio
cancer, and the serio us
performed or not. If the pa tient is suffe ring from
er is 70%, other wise it
??era tion is perfo rmed the chan ce that he will recov
1
I', 3- % suffering from cance r and the
:> · On the othe r hanJ , if the patie nt is not

,Mo,iu(rJ i Page 3.51

Illa--
 [ MANAGEMENT FOR ENGINEERS

scri0us 0pcratio n i~ pl.'rfornw d , the ch ntKl.' tha t he wi ll recover is 20'¼,

J
o therwise it is 100°,,. Ass unw th.it rL'coveri ng and death a re the only possibl~
res ults. C m ,s tru ct ,m ,1ppr<'pr inl'L' dec is ion tree. What decision s hould the
doct0r t.1 kc?

Solution :

P 1 = Prob.1bil itv tha t the patient s ha ll recover after opera tion

= 0.28 + 0.12 =0.4

P: = Probc1bility tha t the patient will recover without any operatio n

= 0.14 + 0.60 = 0 .74

Since P 2>P1, doctor should not take a decision for operatio n to the patient.

.48

.60

Questio n 30:
A firm owner is seriou sly corn,iJer ing of drilling a farm well. In thi s pas t,
only 70% of the well s drilled were s uccessfu l at 200 feet of depth in the ,ir1'•1·
Moreove r on findin g no water a t 200 ft, som e persons <..frilled it f urtlwr 1111 tn
250 feet but o nly 20% s truc k water a t 250 ft. The prevai ling cos t of d r ill inf, '. ~
t 50 per foot. T he fa rm owne r h a s es tim a leJ th nt in case he do<.''> not i~d lw,

'Motfu{e J Page 3.52

? MANAGEMENT fO
,,, ,, ,, l,\\ .. '" ' " ''
R ENGIN EERS l
' ,,, " " ·"·l: h ' \'•'Y
\• ' '' • ,r '" " " ii "' m•1 ~ h ~ 15 0 \\ \/l'I' lh l' \W
lw . T lw 00
f.,l\.,wi , I ,, , XI Il l . '
np, '- n '",.10"" l\Y" '' "· '" I V k rm
I
11 '

,) n,, 1h'\ 1.\rill ,m y wl'I ll \ ht• 11plim

,1\ , lo
,,) \
Drill u p t,, 200
,n) Ii'"' w ~,t cr is fof\u n d at
200 ft ' dr il l f u r 1cr u p tu
,. t\ 250 f\.
'"' ·" ' ., p p ro p
d at e d ec is io n tr ee
\1 an d d ete rm in
\\\ W I.
1 ,r £ MV "n n ro
ac h . e th e f ar m o w n er 's st ra te gy
rt

solution:
-~ 15 00 0
<>" I
o"
<:'
0 2 ~ 5~a
0 '-e0
< 15000+250x
~\ O 50=27500
24 50 0 o<·~\ ~ ~O
,.,_c,()~ o.s
~ o ..,i1;\e.< D 0 .2
2 Wate
0.3 00 ' 250x50=12500
I')Ot
Dr;// 15000+1000
0=25 000
07
200x50=10000

~ D2P oi nt
Dec ision: a) dr il l u p to 25 b) D o n o t dr il l
0 feet
Event: a) N o w at er b) W at er
Probabilities ar
e 0.2, 0.8
EMV for dr il li ng
u p to 250 fe et
= (12500 X 0 .2) + (27000 X
0 .8) == 24500
EMV for d o n o t
drill== 2500 0 (f ro m th e tree
EMV is sm al le )
r for th e ac t dr
il l u p to 250 feet. S o it is
op ti m a\ act.
At Di Point
T h e de ci si on ar
e dri\1 u p to 20
0 fe e t an d d o n
o t dr il l . Events
3" those of 0 2 po are sa n1e
in t.
P ro ba bilities a
rc 0 .7 an d 0.3
f:MV for drill up
t.o 200 feet = (1
0000x0 .7) + (245
00 x0 .3) = \4 350
l:MV for Ju not
Jr i\ l =- 1500 (fro
m the ln•e)
'I h,• o pt imal d,
•cis ion is drill
u p lu 2110 1,·,•l (,>
' Ii"' FM V i, ,. ,,,
,ll <' r)
•~1 11dult .1 \ Pag
e 3 53
 L(..!!M!.:A~NA:;G:::;E~M:.:,E:.:,;NT:...:F..:O;.:.:R..=E~NG~l~NE;..E_R_S_ _ _ _ _ _ _ _ _ _ _ _ :J
Therefore combining D 1 and D2 the optimal strat:8?' is to drill the well upto
200 feet and if no water is struck, then further drill 1t upto 250 feet.

Question 31:
A firm is planning to develop and market a new drug. The cost of extensive
resea rch to develop the drug has been estimated at~ 100000. The manager
of the research program has found that there is a 6? % chance that the drug
will be developed successful ly. The market potenhal has been assessed as
follows.

Present value of
Market condition Probabilit y
p rofit (~ )
Large Market potential 0.1 50000
Moderate market potential 0.6 25000
Low market potential 0.3 10000

The present value figures do not increase the cost of research. While the firm
is considerin g this proposal, a second proposal almost similar comes up for
considera tion. The second one also requires an investmen t of t100000, but
the present value of all profits is ~ 12000. The return on investmen t in the
second proposal is certain.
i) Draw a decision tree indicating all events and choices of the
firm
ii) What decision the firm should take regarding the investmen t
of~ 100000?

Solution:
PV of profit
Rs 50000
-a<'4S,\ 01
e~ .
Developed and \.a<~
Market New drug Developed successfully Market market Rs 25000
0.6

Rs 10000

Stop
Do not enter market

At point D2

Decisions are (1) Enter market (2) Do not enter market

Events: (1) Large market (2) Moderate market (3) Low market

Probabiliti es 0.1, 0.6, 0.3

a) Enter market
EMV = Expected PV = (50000x0.1) + (25000x0.6) + (10000x0.3) =
5000 + 1 5000 + 3000 = 23000

?,1.od"ufe 3 Page 3.54

c::===: MANAGEMENT FOR ENGINEERS ]

l)li ,wt l ' llll' r m,lt'l-.l'I

t,) H , IV • 1:, l w,:t,·d PV = Ox I == 0
l),•,i~i 111,: EnlL'r nl.lrkL'l sincl' EMV is mor e.

~ t D,
.\ IJ'''in
. . . "l'l' ( I) OL'v clop new drug (2) Acce pt prop osal II
L)l',T ''on: -"
. ·t ,re (I) succ L'ssf ul (2) no t s ucce ssful
l· \ ' l 't1 -s '
Proba biliti es 0.6, 0.6
,,) Dev elop new drug
(13000+0) = 1300 0
EMV = Exp ecte d PV = (23000x0 .6) + (0x0.4) =
b) Acce pt prop osa l 11
EMV = Exp ecte d PV = 1200 0x1 = 1200 0
is to deve lop and mar ke t the
Using EMV crite rion , the opti mal d ecisi on a t 0 1
new drug.

Question 32:
A Com pany is pla nnin g to la unch a new prod
uc t whic h can be intro duce d
coun try. If the prod uct is
initially in Wes tern Indi a or in the who le
nt outl ay will be Rs 12
introduced only in W este rn Indi a, the inve stme
the proj ect to dete rmin e
millio n. Afte r two year s, com pany can eval uate
such an expa nsio n it will
whet her it shou ld cove r the who le coun try. For
mill ion. To intro duce the
have to incu r an addi tion al inve stme nt of Rs 10
ng wou ld invo lve an outl ay
prod uct in the who le coun try righ t in the beg inni
have a life of 5 year s, after
of Rs 20 milli on. The prod uct, in any case , will
whic h the pla nt will have zero net valu e.

If the prod uc t is intro duce d only in Wes te rn

Indi a, dem and wou ld be high
ectiv ely and annu al cash
or low with the prob abili ties of 0.8 and 0.2, resp
ely.
inflow of Rs 4 mill ion and Rs 2.;5 mill ion, resp ectiv

lf the prod uct is intro duce d in the who le coun

try righ t in the beg inni ng the
abili ties of 0.6 a nd 0.4,
dema nd wou ld be high or low with the prob
mill ion and Rs 5 mill ion,
respectively and annu al cash inflo ws of Rs 8
respectively.
if the prod uct is intro duced
Based on the o bser ved d e m a nd in Wes tern Indi a,
in th e entir e coun try the follo wing prob
a biliti es wou ld exis t for hig h a nd low
dema nd on an a ll Indi a basis:
Weste rn India Who le C o untry
1":..:.":..:.d:..____
D~c:!..rn~n~n~l:.'_I- - - -~L~o'..:w~ U~c~n.:.:
H~igo:1~1..!:
- - - -.-;- :-;--; ---- - - - -- -~ 0.10
1figh d eman d 0.90
0.40 0.hO
- - - I ,0w D<-'mand

·i h.._, hurtl l . .
c rat.(: a ppli cable lo thi s proj ect i~ l 2'X,.

',Hod11I,· I Page 3 55
 [L~M~AN~A!!:G~EM:,:E:::,:N:.:.,T.:,.:FO::;.R;:.:E~N~Gl;,;.;.N;;.;.EE;...R_S_ _ _ _ _ _ _ _ _ _ _ _ :J
a) Setup a decision tree for the investment situation.
b) Advise the company o n .the investment
. policy it should folio w.
Support your advice with appropria te reasoning.

Solution:
The decision tree based ·on the information given in the problem is depicted
in the following figure.
EH!m~nd
,,,---:1-=-o_-9,::-- - - - - - - - - - - - - I s o.9•8=72

(0 .1)
0.1•5• 05
demand

o
No expan sion

- - - - --
No t-x p,1ns,o n
- - -- - -- - - - - - - 8
0 0

fhgh drmand
-4)_ _ _ _ _ _ _ _ _ , 9
.-----""-,-0. 0 0.4•8 : J /
Rs 8.6

(0,6)
11 b•S •3.0
fMV , 8.6
l ow d 111nar1d
Mlgh d,mand
0 .6•8• 4.8
(0.6)

low d~rnand

(0.4)
0 0.4•S • / o

Conditional Value Expected Value

Decision Point Outcome Probability
(Rs million) (Rs million)
D, (i) Expansion High demand 0.9 8 7.2
Low demand 0.1 5 0.5
7. 7 • 3 years= 23.1
(II) Stop Less : Cost 10.0
13.1
0
13.1
D1 (i) Expansion High demand 0.4 8 3.2
Low demand 0.6 5 3.0
6.2 • 3 years= 18.6
Less: Cost 10.0
8.6
(ii) No Expansion 0
8.6
D1 (i) Introduction In High demand 0.6 8 4.8
whole country Low demand 0.4 5 2.0
6.8 • 5 years= 34
Less : Cost 20
14
(Ii) Introd uction In High demand 0.8 13.68
(4 + 13.1)=
Western India Low demand 0.2 2.22
(2 .5 + 8.6) =
15.90
(111) Do not hing
Less : Cost 12.00
3.90

:M.od'u[e 3
~ Page 3.56
 J
C MANAGEMENT FOR ENGINEERS
111,,kl• ,1 dl'ci~ i
th. Fl\1\/ ,,t 1Hllll' 2 is l,1r gl'S l , . on 1o 1,1u nd1 tlw pro du< t ,n
~1n,'l' l tn·
·lH lk Cll\1 11 • .
till' \\
LS : RATIONA
J.lO DE CI SI ON M AK IN G MO DE LA ND
. BE HA VI OU R M OD EL
dit ' d . . s.
,n' \\!e r has to ma ke dec isio ns un der dif fer ent con ion s a n s1tua t1on
a . . . • gs, h ow d oes
cei ve th e ti1m
,.\ 111<
, . , t ,km g a dec 1s1on how doe s a m a nag er per •

\\ 1 11 1l • is hun ia,1 beh av,·o ur. T wo

•

doe s he h . y to res olv e, a ll this

L

·,>a ct a nd how .
l1l' 1 ~ beh avi our of the dec isio n ma ker
model s or app roa ches exp la m the
':
1. Ra
tional or 'Ec ono mi c Ma n Mo del
u sed the
ssic al app roa ch to dec isio n ma kin g in eco nom ics has
The cla ic ma n is
dit ion s of cer tain ty. Th e eco nom
'eco nomic ma n' mo del un der con pro ces s of
a ma nag er sho uld beh ave in the
completely rat ion al. It sta tes how bec aus e it
bes ide s rat ion al, is als o ide alis tic
decision ma kin g. Th is app roa ch, por ted
be full y app lie d to a pra ctic al situ atio n. Th is app roa ch is sup
can not
by scie ntific and log ica l me tho ds.
fol low ing fea tur es:
This eco nom ic ma n mo del has the
l of rea son ing ,
(i) The app roa ch is log ica l and ful he wa nts to
fie s cle arl y the end s to wh ich
(ii) Eco nom ic ma n alw ays ide nti
ava ilab le for the pur pos e,
reach and the me ans wh ich are wil l be in a
The ma nag er kn ow s of var iou s alte rna tiv es ava ilab le and
(iii)
ally ,
position to eva lua te the m rat ion pre fer enc e,
be obj ect ive , not allo w any bia s,
(iv) The ma nag er is s up po sed to
kin g pro ces s,
liking or dis lik ing in dec isio n ma
goa ls wit h pos itiv e att itu de.
(v) Ma nag er sho uld try to rea ch exi stin g
A ma nag er mu st hav e a cle ar und ers tan din g of the
(vi)
env iro nm ent .
dec isio ns
eco nom ic ma n mo del is app lica ble to rou tin e and rep etit ive
The ced ure s are
pre -de ter mi ned rul es and pro
which are pro gra mm ed . Th e an
tak ing rou tin e dec isio ns. Eco nom ic ma n is a lwa ys in sea rch of
app lied for ben efit s.
nal sol uti on or bes t wa y of do ing thi ngs for ma xim isin g his d
O pti?
by eco nom ic con sid era tio ns and use s m a the ma tica l ao
He is gov ern ed
'> lati . .
st,caJ too ls for sol vin g pro ble ms

2. Behaviour Mo del :
11
ity ,' Ad rni nis -tra tiv c Ma n'. Rat ion alit y app roa ch "'Y not
~)U oc.lcd Ra tio nal ~ h,l\ 'l'
be app lica ble in pra ctic a l s itu atio ns. Manngc111L't1t cxp l·rt
: way.., d,• m,l lld Pl
ch' wh ich is renlis tic ,is rwr tlw
th~~dop c~ 'bl'11nvioura l app roa

I
t ., 111,r n,1~ ,•1
d t1 on . Thi ., a pp roa c h i~ pr. igm .iti c ,1nd hol d ~ tlw Vi l'\\/ th,,
l ~Jtu

:Mm/u/r I Paga 3 57
 ( MANAGEMENT FOR ENGINEERS
J
is a human being and cannot be fully rational because he is confronted with
many constraints, problems, limitations and inadequacies.

Taking into consideration various factors of real-life decision-making.

Herbert Simon has proposed a theory of "Bounded Rationality". This theory
states that the real-life decision maker must cope with inadequate
information about the nature of problem and its solution. The norm of
rationality is bounded by many limitations and, therefore, the concept is
known as 'bounded rationality'.

The manager's rationality is bounded by the following major limitations:

(i) A manager may not have access to all type of required information or
information may not be available.

(ii) A rational decision-making requires the search and analysis of various

alternatives before reaching a decision. In real situation time available to a
decision maker may not be sufficient to go through the rational process. A
decision may have to be taken immediately without going through various
formalities.

(iii) There may be a situation where multiple and conflicting objectives may
be involved, a process of compromise and adjustment becomes necessary for
taking decisions rather than rationality.

(iv) Decisions are made to be implemented in future. The future

environment is full of complexities and uncertainties and cannot be
predicted with a high degree of accuracy. ·A manager may have to
accommodate the changing situations in decision making process.

(v) The problem requiring a solution may be complex and unstructured, it

may not be defined with rationality. In such situations a manager may rely
on intuition than on rationality.

In real life situation decision-making is sub-rational, fragmented and

pragmatic activity. According to Herberton Simo), the norm of 'satisfying'
repr~sents and des~ribes actual decision-making behaviour of the manager
and mvolves choosmg a course of action that is satisfactory or good enough
under the circumstances.

'Morfu(c 3 f,1 Page 3.58

!
c=-=====================JM~A~N~AG~E~M~E~NT~F~O~R~EN~G~IN~E~ER~sJ]

MODULE 4: PROJECT MANAGEMENT

~ >Jl',·t l\ la11agcmc11t, Nc twor_k cons tructio 11, A rrow diagram, J{edund an cy. C l'M
a1 l( l l 'FHT . Scheduling comJ
· . Networks, . )Utations • PFHT
~
- t es, I-' ro ha 1,r·i·,ty
t1·111e es t·1111a
ofconipkt1011 o f pro.1 ect, l11t roduct1 011 to cras hing.

4.1 PROJECT MANAGEMENT

Project management focuses on planning and organizing a project and its
resources. This includes identifying and managing the lifecycle to be used,
applying it to the user-centered design process, formulating the project
team, and efficiently guiding the team through all phases until project
completion.

Today, project management is used for projects of several activities or jobs

wi th:

i. Specific objectives to be completed within certain specifications,

ii. Defined start and end dates, and
iii. Funding limits.

A successful project management can therefore be defined as having

achieved the project objectives like; within the time limits, within estimated
cost, desired pe rformance/ technology level, and utilized the assigned
resources effectively and efficiently.

Project management is a tool of m anagement for planning a nd control. The

objective of which has been defined as an attempt to make the most efficient
and effective use of resources; v iz., manpowe r, equipment, facilities,
rn~terials, money, technology and informa tion, so that the organisation
objectives and goals can be achieved within budget, on schedule a nd a t the
:esi_red performance/ technology level, while adheri~~ to the ever c~ang ing
nv1ronmental input factors, like legal, social, poltttcal, econom1cal and
technological.

Project ma nagement can be defined as the planning, o rgan ising, directing

and controlling of compa ny reso urces for a relatively short-term nbjl•diVl'
tha t ha., lx·t>n establi'ihcJ to complete s pecific goals nnd objL·ctiw~. l'hl'

'.Modi1fr -I Page 4.1

 L[..!M~A~N:;AG~E:.::M::.::E::.:,NT~FO:,:R:..:E:.:.:N:.::G~IN;;;;E,;,;.ER_S_ _ _ _ _ _ _ _
:J
____
projec t manag emen t utilize s the system s appro ach to manag
ement by
havin g functi onal person nel assign ed to specific tasks.

Projec t can be define d as under:

1. A group of multip le interd epend ent activi ties that requir

e peopl e and
resour ces. It has a defini te start and end data and specif ic set of criteri
a that
define successful compl etion.

2. A projec t is a uniqu e task, is design ed to attain a specific result

, requir es a
variet y of resour ces, and is limite d in time.

3. A projec t is a one time job that has define d startin g a nd endin

g dates, a
clearly specif ied objective or scope of work to be perfor med, a pre-de
fined
budge t, and usuall y a te mpora ry organ isatio n that is disma ntled
once the
projec t is compl ete.

Some examp le of projec ts a re: Const ructio n of Highw ay, bridge , ca

nal, dam,
hydro powe r or therm al power project, cemen t fa ctory, a
utomobile
manu factur ing plant, sugar factory etc.

Results Expected from Project Management:

i. Attain ment of projec t objectives in a timely mann er within budge

t.
ii. Progr ess report s with deviat ions from plan highli ghted .
iii. Signif icant decisi ons from top mana gemen t for a pproval.

Tools and Techn iques for Project Management:

Follow ing are the impor tant tools and techni ques for effecti
ve project
manag ement :

1. Project select ion techni ques.

(a) Cost-b enefit a nalysis.
(b) Risk and sensit ivity analysis.

2. Project imple menta tion (execu tion) plann ing techni ques.
(a) Work break down struct ure (WBS-),
(b) Project imple menta tion plan,
(c) Project respo nsibility matrix .
(d) Project m anage ment manu al(s),

3. Project sched uling techni ques.

(a) Line of balanc e (LOB) (b) Bar charts,
(c) Netwo rk techni ques (CPM /PERT ),

'Mocfit{e 4 Page 4.2

A
c= . t Monitoring Techniques.
MANAGEMENT FOR ENGINEERS ]

pro1eC
~- (a) Progress mea s urement technique.
(b) Performance monitoring technique,
(c) Updating, reviewing and reporting technique .

. ct cost and productivity techniques .

- rrojC . .
J. (a) Va lue engmeenng,
(b) Budgetary control,
(c) Cost/WBS,

Project communication techniques,

6
· (a) Computerised information system,
(b) Control room, and
(c) MIS.

Benefits from Project Management:

1. Identification of responsibilities to ensure that all activities are accounted

for.
2. Minimizing the need for continuous reporting.
3. Identification of time limits for scheduling.
4. Measurement of accomplishment against plans.
5. Early identification of problems so that corrective actions can be taken.
6. Improved estimating capability for future planning.
7. Knowing the circumstances when objectives cannot be achieved.

4.2 NETWORK ANALYSIS

Graphic representation of a project's operations is called a network. It is the
combination of activities and events which are require to reach the end
objective of a project.

Various activities are performed at the same time and there are various
a~tivities which can be started only at the completion of other activities in a
big project. The main work for detailed study of the product is to determine
th
~ information about the project and then discover a new, better and
l~ 1
~~er way to g~t the w?rk done. Thus thorough _study o~ ~r_oject is do~e
. _gh some suitable diagram which shows various activ1hes and their
~osittons in the project. It is also helpful to know that in what way the delay
in any
nu
r .
ac iv,ty can affect the whole project in terms of time and money. A
n mber of nodes (typically shown as small circles or rectangles) and a
r . of arcs (shown as arrows) that connect two different no d es exist
aurnber ·
· m
p OJect network (figure).

'Modide -1 Page 4.3

 I MANAGEMENT FOR ENGINEERS J
( L'
5 6
~ 8
J
7 r-
s~ ~
' 4 ~ ~
S~ 9 ,
6

0-Start E-Ex te ri or Plumbing K-Flooring

1-Finish F-lnterior Plumbing L- lnte rio r Painting
A-Exca vate G-Exterior Siding M-Exterior Fixtures
B-Foundation H -Ex te rior Pninting N- lnte rior Fixtures
C-Rough Wall 1-Elcctrirn l Work
D-Roof ]-Wa ll boa rd

Fig 4.1 Network diagram for the cons truction of a building

Network analysis involves a group of techniques which are used for

presenting information about the time and resources in volved in the project
so as to assist in the planning, scheduling and controlling of the project. The
information usually represented by a ne twork includes the sequences,
interdependencies, interrelationships a nd critica l ac ti vi ty of va riou s
activities of the project.

Objectives of Network Analysis:

1) Minimize Production Delay, Interru ptions ,rnd Conflicts:

This is achieved by identifying all activities involved in the project, thei r
precedence constraints, etc.

2) Minimization of Total Project Cost :

After calculating the total cost of the project the next step is to minimise the
total cost. It is done through the calculation of cost of delay in the completion
of an activity of the project and calculating the cost of the resources which
are required to complete the project in a given time period.

3) Trade-off between Time and Cost of Project :

The duration of same activity can be reduced if additional sources are
employed and this is the main idea on which the trade-off between time and
cost of project is based. Due to technical reasons, the duration can be reduced
in a specific limit. Similarly, there is also a most cost efficient duration called
'normal point' stretching the activity beyond it may lead to a rise in direct
cost.

:Mod'u{e 4 Page 4.4

C MANAGEMENT FOR ENGINEERS J
.. ,iz
t,.\tt111' , ,1tio n of Tot.1\ Prn ·L'c l Du rat ion .
~ , , · ·hl'cki n~ \hL' .1d ual PL'rfnrn-1 ·
,\It\ 1 l an cc aga ins t the pl lh .
, l , ·onln,\IL'l\ ,H"IL:\ mm · · · :\ lf
,-.,,, ,x: l 1m 1zeL . an y ma jor dif fcr an c prn1ect dur nli on
.. , cn , . f
, ,ss:1ry rL' ~d1 L'd uk pt.ncc ss
\\ll' t1L'l l , · '
, .
by up d ntm g .i nJ rcvicc· 1s th ou nJ the n app l
.
.
\'ll)f \\lll
, of \hl' nWJL'Cl. ' sing c uncom pletedY
t

5).hll!.,i,ni z,1\ion of \di e Resou rce

s:
~i thl'rL' is ,my variatio~1 _in the ~se
of sca rs res ou rce s the n it can dis
l'ntirL' pla n and he nce 1~ 1s tur b the
req uir ed tha t effort s sho uld be
. . ..,, e in cos t du e to ma de to avoid any
\ \)l 1.:.u 5 idl e res ou rce s.
A.dvantages of Ne tw ork An aly sis
:
• For pla nn ing , sch edu lin g and
con tro llin g of ope rat ion s in lar ge
com pli cat ed pro jec ts net wo rk and
ana lys is is ver y im por tan t and
pow erf ul too l.
• For eva lua tin g the per for
ma nce level of act ual per for ma
com par iso n to pla nn ed tar get net nce in
wo rk ana lys is is a ver y useful too
• Wi th the use of net wo rk ana l.
lys is tec hno log ica l int erd epe nde
dif fer ent act ivi tie s can be det erm nce of
ine d for pro per int egr ati on and
ord ina tio n of var iou s ope rat ion co-
s.
• Ne tw ork ana lys is giv es
the pro per co- ord ina tio n
com mu nic ati on bet we en var iou and
s par ts of the project.
• Ne tw ork ana lys is dea ls wi
th the tim e-c ost tra de- off and pro
the op tim um sch edu le of the pro vid es
ject.
• Th is tec hni que is ver y sim ple
and sui tab le for the com put er use
rs.
Disadvantages of Ne tw ork An aly
sis :
• Ne tw ork con str uct ion of com
ple x project is ver y difficult and
con sum ing in net wo rk ana lys is. time
• Actual tim e est im ati on of var iou
s activities is a difficult exercise.
• Analysis of the pro jec t is a ver y
difficult wo rk because a num ber
res our ce con str ain ts exi st in the of
project.
• 1n ma ny situ ati ons tim e-c ost tra
de off pro ced ure is complicated.
4.3 TECHNIQUES IN NE 1W OR K
ANALYSIS
The two com mo n tec hni que s wh
ich are use d in net wo rk ana lys is
in figu re bel ow : are sho wn

Techniques for
Ne two rk
Analysis

CP M PERT

•IIV<i"I.: • 1Page 4.5

 '-(..:.:M;:.:.A~N.:..:.AG:.:E:.:;M:.:.:E~N~T.:..FO:.:R~E:.:.N.:.:G~IN.:.:E:.;;E~RS~-----------:J
The ma nagers a rc supportcJ by two well-know n network anal ysis
techn iq ues, viz, Critirn l Path Method (CPM) a nd Prog ra m Eva lu ation and
Review Techn ique (PE RT) in pl anning a nd contro lling of la rge scale
constructio n projects, resea rch a nd developm ent, and so on.

Network diagra ms a re of two types 1) Event oriented diagram 2) Activity

nriented diagram.

Event oriented diagrams are also known as PERT network diagrams. Here
emphasis is g iven to the events of the project. The events tha t are to be
included in tha t plan are first selected. The events in such network fall in a
logical sequence.

Activity oriented diagrams are also known as CPM network diagrams. Here
emphasis is given to activities of the project. The activities are arranged in a
logical order.

4.3.1 Networki ng Components:

1) Events:
In a network diagram events represent the project milestones . For example,
start or completio n of an activity or activities, and occurrence of the events
at a particular instance of time at which some specific portion of project has
been or is to be achieved. In the network events are represente d by the circles
(nodes). The events can be further classified into the following two
categories:

i) Merge Event:
The joint completio n of more than one activity which shows an activity is
called merge event. This is shown in figure.

ii) Burst Event :

An event which shows the beginning of more than one activity is known as
burst event. This is shown in figure.

The numbers are used in a network diagram for representi ng events. For
indicating progress of the work, each event is identified by a number which
is higher than its immediate preceding event. The numbering of events in
the network diagram must start from left (start of the project) to the right
(completio n of the project) and top to the bottom. It is noted that there
should not be any duplicatio n in the numbering of events.

1. Merge Event s 2. Burst Events

'.Motfu{c -I Page 4.6

 AG,;;:,:E::::M
N.;.,;, N:.:..
:.:.:E:::: FO~R:_!:!
T..:.; ~]
EN~G~IN!!E~E~RS
- - _M_A.:...;
C:---------

ob~ Act ivil y/fa sk:

~l ~.
1 l'rl,jl'l·t ppcr.1tiu11s (o '.· 1,is ks) .'ll'L' rep rese n ted
by ncli vitie., whi l h <1rc•
s_e ,ic tivi ties tnke a ce rtai n .:imount of
,, ,nd uctl·d in ._1 ,wt wnr l-. d1.:1br,rn1 . rhe rcse nted by cJn
nd rl'1._Jt1trL' reso. urc. es fo r co mpl .
etio n. An acti v ity is• ren,-
l
e proj ect. The
c~ tes t_h ~ _d irec tion of pro gres s in th
(1tlll ' •
,lfl'\H \' .ind its hea ~ 1nJ1
event a nd e ndi ng (hea d or te rmi na l)
nuinlx'ring of star tm g (tatl or 1111h a l)
le, a n a rrow (i, j) betw een two eve n ts
l•,·cnl iden tifies acti viti es. For exa mp
s tarting of the acti vity a nd the hea d
, how s that the ta il eve nt i repr ese nts re.
~'vent j repr esen ts the com ple tion
of the acti vity whi ch is sho wn in figu
d into the foll owi ng thre e cate gor ies:
The dctivitie s can be furt her clas sifie

U. Predecessor Act ivi ty :

ch is com plet ed befo re one or mo re
Predecessor acti vity is an acti vity whi
other acti vitie s star t.

ii) Successor Act ivit y :

s tart s imm edia tely afte r one or mo re
Successo r acti vity is an acti vity whi ch
of other acti viti es are com plet ed.

Activity

Starting even t Com pleti on even t

a) Activity node relat ions hip

iii) Dum my Act ivit y:

e or reso urce for com plet ion is call ed
The activity whi ch doe s not use any tim
is use d in a netw ork to esta blis h the
dummy acti vity . A dum my acti vity
s acti viti es of the proj ect. It is nee ded
preceden ce rela tion ship amo ng var iou
when :
proj ect hav e sam e - the hea d and tail
a) Two or mor e para llel acti viti es in a
events.
e (bu t not all) of thei r imm edia te
b) Two or mor e acti viti es hav e som
pred eces sor acti viti es in com mo n.

/\ Activity / ~
Node )1 -- -- --.~ ode
Activity ~ ~ Act ivity
- -.{ Node ·
-:..' r -~. -...-
.. ' "1.
. '
'--..-.. 'C,,;,._,. Dum my
"- '1- Ae1 Ivity
laol of rhe a,row

t◄ u d o f t he • 11ow
'
\ Nod e\

b) Activ ity node rrla11om hlp

''°"111,, -1 Page 4 7
 [MANAGEMENT FOK t:Numu:.1-1w . . ~

t' ·ty is re presented by a dotted lme m the network diag rarn as

Dummy ac 1v1 f
show n in the previou s page ,g ure.

4.3.2 Precedence Relationship:

Di ag ra ma ti c re presenta tion of projec t as ~ ~~twork need s the ~stablishrnent
o f preced ence re la tionships between achv1ttes. For undertaking activities
preced ence re lationship ~rovid~s. a sequence. It states that any acti vi~
ca nnot sta rt until a preceding activity has been completed.

For example:

Brochures announcing a conference for executives mus.t fir_s t be designed by

the program committee (activity A) before they can be prmted (activity B).
In other words, activity A must precede activity B. For large projects, this
task is essential because incorrect or omitted precedence relationships will
result in costly delays. The precedence relationships are represented by a
network diagram.

The following two types of precedence networks are used by network

models to show precedence requirements of the activities in the project:

1) Activity-on-Arc (AOA):
In an AOA network, arrow is used for representing the activity and both the
ends of the arrow which are called nodes shows the start and end of the
activity.

0_I------.{~~) Activity ~
2
Activities are represented by an arc and events are represented by a node.
An activity is separated by a node (an outgoing arc) from each of its
immediate predecessors (an incoming arc). One or more activities can be
completed at the starting point of any event and one or more events can start
from this point. Neither time nor resources are consumed by any event.

AOA approach is an event oriented approach because it focuses on the

activity connection points. The precedence relationship explains that an
event does not occur until all preceding activities have been completed.
AOA approach uses a convention that events are numbered from left to
right. This is also known as Activity-On-Arrow.

2) Activity-on-Nod e (AON) :
The second approach in the project network is called Activity -on-Node
(AON) in which activities are shown on the nodes and precedence
relationship between them is represented by a rcs. In other words, acti vities
are represented on the nod es a nd sequ encing connection between two

:Motfu[e 4 Page 4.8

 MANAGEMENT FOR
ENGINEERS J
C 'l'l'SL'nled by th l' nr
ro w s Tl .
111
!\ O J\ J1 t.1 gr, 1n1 of
ti,·il iL '~ i~ l'L'F lU S,
f 1•rent ,K · ·

' ' ' ' ·in•· t y 11L' :

1,'11''" " . r

.
ca us e th is ap pr oa ch is ac tivity ba sed
du m m y ac ti :i ty be becaus e it is similar
to the
There is no_ne ed o~ al pr es en ta tio n
be tt er fo r vi su is do ne be tte r w ith
th e use
An AON di ag ra m ts ti on of a pr oj ec t
bar chart. T hu s, v
is ua l pr es en ta
k di ag ra m .
oi an A O N ne tw or ly
O N A pp ro ac he s for Several C om m on
ow s A O A a nd A
Follov,,in g Fi gu re Sh
ity R el at io ns hi p.
Encountered A ct iv
w or k :
4.3.3 D ra w in g N et uc ti on ar e as follo
ws :
ns tr sks.
The st ep s of ne tw or k co
t an d it' s al l im po rt an t activities or ta
fi ne th e pr oj ec ecide which
Step 1 : Pr op er ly de ip s am on g th e activities. D
th e re la ti on sh
Step 2 : D ev el op
ed e th e ot he rs .
ac tivi ties m us t pr ec th e ne tw or k.
ct al l th e ac tiv iti es an d draw
Step 3 : C on ne tivity .
st es ti m at es ar e as si gn ed to ea ch ac
Step 4 : Ti m e an d /
or co this is called
w hi ch ha s th e lo ng es t tim e an d
th e pa th
Step 5 : C al cu la te
an d
critica l pa th . r pl an ni ng , sc he du lin g, m on ito ri ng
ne tw or k fo
Step 6 : U se th e
ec t.
co ntrolling th e pr oj
gram :
.4 R ul es fo r D ra w in g N et w or k Dia
4.3 or k th er e ar e v~rioth
us
of a pr oj ec t ne tw
an d ac tiv iti es . It pr ov id es he lp .
e
For ha nd lin g ev en ts
in
fo llo w ed I
w hi ch sh ou ld be m en t,one1.
an d ru le s th em ar e as
concepts ur e. So m e of
lo pm en t of a co rr ec t ne tw or k st ru ct
deve
below : tivitv·
t . g ea" ch defined ac
en m ,m
w is us ed. f.or re pr es t be p re se nt ed mor e th
J. 0 ne an d on ly on e ar ro ty ca nn o re
·
111 th e ne tw or k.
H e nce, a ny act1v1 .
or k. 1-. 1 1.. . .,f or e se lt.- ctin g ,u n nl "\ '
on ce in a ne. tw . . .
J
~
2 m g ac t1v 1t1 es m us t be co m p c eu th t•
A ll pr eceJ . . .1 ·11, Ii, •,ti, t' ut
vity " 1.
1 ~c t, vi ty. ch i~ us cJ fo r sh ow in g tlw ac ti
1lw M ro w w hi · 1 111 11111,·
. 1,• -.- .ll'' • th .it 11,,
J,J~i\.aJ pr ca :d cn ce on ly . 1· ti ll• hl• •nL•r1' l 1lr P~
. n of th ti a rr o w Hl l 1ca le' > 1 hd h '>
., r,_,( tm I 111 1 •t• Vt 'll l ' ti
4 Ith t 1t h-'..,
J h t• ui ·
1l 'rm 1n .i1 t·" '
tf, •..,., " 11 "' t\
WI l•• n nu m lx•r of ..K tiv ili l·'> I 111 u,
,J
, •n t lll d ) .., '
1,1 tin g fr w n th .it t •v
J< l1v, 1y ••m,11
, v, · l>t •,·n t 11111pl •1t·d
1

n 111n<J t11 1g tJ w n · h,
t,,• ,., ,•n h
, ., .J n • u ... e d (01 n •1111·-., •n t111g llw
\u 111J ,..
H, ,J uh ' I page 4 9
 ◄
[ MANAGEMENT FOR ENGINEERS

Activity-on-Arc Activit y-on-N ode

J
Activity
AOA) (AON) relations hi
A precede s B,
which precedes
C.

A and B must be
comple ted
before C can be
started.

B and C cannot
begin until A
has been
comple ted.

A y0 C and D cannot
begin until both
D A and B have
been comple ted .

C cannot begin
until both A and
B have been
comple ted, D
cannot begin
until B has been
comple ted.
B and C cannot
begin until A
has been
comple ted, D
cannot begin
until both B and
C have been
com leted.

:Modi1(e 4 r Page 4.10

11
j
 _E _E.;,;.N;.;.
_M R.=.
O.:.:
T..:..F.::. NG
. E.:.:. N::.:
::.:l:.:.:.EE:.:.R.:.:S'._J)
- - - -M_A_N_AG
c: := --- - - - - - -
the
· ti v itiL' S .1 r L' idL •nli fiL•d by lhL
• nur n bL' rs o f llw ir <, LMl i rw,.., nnd
~
ThL' j\ L

' fi1Wr, L' VL'l1lS. . .. I J.

o nL' le rm inn l nnJ t• inn net wo rk.
/•
I l1a a n
T hL'l'L' slw uld be on y on L' 1111
l lh
an atl ivi ty
The join t co mp le tio n of m o_rc
tha n o ne ac li~ ity wh ich ~how<,
inn ing of
n e ve nt wh i ch s ho w s the beg
i.; ca lled me rge e ve nt, w hile a
•c> tl,a n o ne act
iv ity is kn o wn as burs t e ven t. a rc
nts , wit ho ut in te rve nin g e ve n lc;
,
I\\O l t:: G

llel act ivit ies be twe en two e ve

Pa ra
I 0. .
pro hib ited . . .
ow e d . Th e ref ore , 1f A pre ced es 8, a nd
In a ny net wo rk loo pin g 1s no t alld A
1I. e .
B pre ced es C, the n ca nn ot pre ce
a re no t
it mu st be e nsu red tha t loo ps
In the dev elo pm ent of a ne tw ork
present.
in Ne tw ork :
4.3.5 Co mm on Errors an d Du mm ies
:
ors in a net wo rk con str uct ion
Follow ing are thr ee com mo n err

1) Loo pin g:
ow n as loo pin g,
A case of end les s loo p in a net
wo rk dia gra m, wh ich is als o kn
A, Ba nd C form a cyc le:
is sho wn in fig ure , wh ere act ivi ties
tha t e ver y
, it app ear s fro m fig ure 4.5
Due to pre ced enc e rel atio nsh ips thi s case, it is
in loo pin g (or cyc le) is a pre dec ess or of itse lf. In
acti vity nd C so as to
ass oci ate d w ith act ivi ty A, Ba
difficu lt to num ber thr ee eve nts
net wo rk.
sati sfy rul e 6 of con str uct ing the

_ _ , 1 A
2~
C ~- --- Dangling

I
a) Loo pin g b) Da ng ing
anJ ·Jn T .•
~
A
l'> ~ :::: tJi sco nne
1101 ),iv (:':onwn as d a
cte d act ivi ty bef o re the com ple tio n of a ll activi ties
n gli ng, is s h o wn in fig u re. In
, wh ich
this cas t.•, ,1c tivi ty C ~ll~·s
0v1>iJ,.J b Y re& ult as per the rul es o f thL· ne tw
ork . T he d ,rnb li n ~ m,\ \ ~-
Y aJo p ti ng rul e 5 o f con -.tr uc
tin g tlw rw tw n rk .
,
'Jl"• du1 j
l ,JIJ< Jf)s, It JIii A<ti vity :
J \,y •
·
,) . .l /i• lh1• t w,, t,l l>I''> 111 . tl\ h1e•l~--i 1n
w h1d 1 tl w ll 'i l ' ol d11 nun v ,h t,v
llhl V
tJ,
<.11fv111 ,, 11 k1
,., ll • llt•I w 1 1u 11 ., r ull .., :
'> I 11rr t>t tl y, .. ., f'l'f th, · v.1

•\f(),/11 /,· 1 Page411

 ( MANAGEMENT FOR ENGINEERS J
and
i) When two or more paralle l acti v ities in a project have the same head
In
tail events, i.e., two events a re connec ted w ith more than one arrow.
the
figure, activi ties B a nd C ha ve a comm on predec essor - activit y A. At
sa me time, they ha ve acti vity Das a com mon succes sor. To derive correct
that
networ k, a dumm y activit y for the ending event B is require d to show
D may not s tart before· B and C, is compl eted. This is shown in fig ure:
8 A /- 8 / _D_ , 2
___, 1 - 3 )..__, .
,/ ,/
D
/ 8'
,,----../ / Dummy
. J2 ',
i

C Dummy Act ivity

Dummv At1iv 1ty
P•r• ll•I Actlv,tle,

or
ii) When two chains of activiti es have a commo n event, yet a re w holly
y w hich is
partly indepe ndent of each other, as shown in fi g ure. A dumm
n
used in such a case, to establi sh proper logica l relatio ns hips, is a lso know
as Logic Dumm y Activity.
of
In figure, if head event of C a nd E do not depen d on the compl etion
activiti es A and B, then the networ k can be re-draw n, as shown in figure.
Otherw ise, the pattern of figure must be adhere d to.

Dependent Events Independe nt Events

Dependen t Events & Independe nt Events

Question 1:
Draw the networ k diagra m to the follow ing activiti es.

Activities (i,i) Time duration

1-2 2
1-3 4
1-4 3
2-5 1
3-5 6
4-6 5
5-6 7

Solution:
The networ k diagra m is

:Mocfu[e 4 I Page4 .12

 NA
M_A....;
-- T.:.
N:.:..
..;.G;;;_;E;:,;;M;;.:E:.:.: E:.:;
R..::,
F.::.0:.: RS~
NG~l~N,:::EE:.:~
C-------------

Question 2:
ng set of acti vities
Draw a netw ork diag ram to the foll owi
Act ivit ies Pre ced ing acti viti es
A -
B -
C A
D A
E B& C
F B& C
G B& C
H D& E
I F
J F
K G
L H& l
M H &I
N J, K & L

Solution:

----
The netw ork diag ram is
7 ---- --- •,
~- - - - -
H -
'
D 4

y E sf_ , N

f-1~/ C\ ( ~ - - .( B)
B \ ,,/ /" K ~

;-3 ),, / G
i, 6)

•\fod 11I,· ., I Page 4 13

 [ MANAGEMENT FOR ENGINEERS
J
Question 3:
A project consists of six acti vities Gobs) designated from A to F, wi th the
following relationships. Draw the network diagram.

i) A is the first job to be performed

ii) Band C can be done concurrently and must follow A
iii.) B mu st precede D
iv) E must succeed C but it cannot start until B is completed
v) The last operation F is dependent on the completion of D & E.

Solution:
The network diagram is

Here 3-4 is a dummy ac tivity

4.3.6 Earliest and Latest Event times

Earliest Event Time (TE): The ea rli es t occurrence time o r earli es t event time
(TE) is the ea rliest at which a n event ca n occ ur. Ea rli es t occurrence of c1 n
event say '2' is denoted by Ei.

Latest Event Time (TL): The la test a llowable occurrence time or the la tes t
event time (T1.) is the lates t time by which an event must occur to kee p the
project on schedule. Latest occurrence of a n event, say, '2' is denoted by L2.

4.3.7 Start and Finish times of an Activity

The following activity times are useful in network computation

1. Earliest start time

11. Earliest finish time
lit. Latest start time
iv. Latest finish time

1. Earliest Start Time (EST): The earliest start time of an activity is

the ea rliest time by which it can commence. This is naturally equal to the
ea rli est event time associated with the tail event of the activity.

The EST of a n activity= Earliest occurrence of the tail event of the activity.
So, for the activity 2-~, EST is E2.
:Motfu(e 4 Page 4.14
 NA
M_A_ _G N~
;.:.:E:.:.:
;.;;E;;,;.M ..:.::0:IN
:.:R.:..:E:.:N
.T .:. .:FO R.:=_S...J)
::.::E:.::E~
----
C---------
llw ,KI i\ II\' j'n> l l'l•d -. ,I I ,,., l',ll l'r
lllll t'
r.1rlit.•~I Fin ish rin w (E171'): It , t•,,r l 'r
,)..c, ilw l•,1 1m ,1ll 'd du r.1l inn
fnr l·t1111pll'liu11 , tlw n 11 wil l h,i vt• 111
: (or tlll ,1ll iv1t y ,., dl'f inl• d ' l', tlw
1 1 I" I I'" ' (1-• 1'1')
.
.I "11' hI. 11 l 'lh'\ ' r.ir lll'" ' ' """ l lllll
1
tt:h it c ,111 bt• lini s lwd . l'hi.,. i-..
evi dl'n ll ·v l'lfUal to tlw e.irlit''-1
11111 w b, "h .
i\11 1ll" .
tun e pltt~ l'!-l 1m, 11l' d A du,-.111011 of thl' ,1el1 v ll y
1 - ·1· . . D . l.
, 1.1r :. [FT = 1-~ + l"tl\ ' tly urcl lHll
.:rc li vi ty ic;
Lat es t Fin ish Tim e (LF T): Thl ' lc1te s t fini sh tim e for .:rn
l ng the
y ca n be fini s hed wit hou t Jel.:iyi
;ht' l,ltl'SI tim l' by wh ich ,in <1ctivit
tur a lly the 1.:ites l (ini sh tim e for
.:in ,Kli vity wil l
,, mip ll•li on of the pro jec t. Na nt. I kn ee
occ urre nce tim e of the hec1d eve
~- l'-Judl to the lates t a ll ow abl e
I rr 0f an act ivit y 2-3, LFT = L-..
st
s tart tim e of an act ivity is the !.,te
4. L.-:ltest Sta rt Tim e (LS T): Lat est co mp le tio n of
hmc lw wh ic h an acti vity can
be s tar ted wit hou t d e lay ing the
e min u s the
the rroj ecl. It sh o uld be nat ura
lly equ al to the late st fini sh tim
acn ,·itv dur atio n.

:. L.ST = LFT - Ac tiv ih· dur atio n

4.3.8 Sla ck and Flo at ge wit hin

.. is a term ass oc iate d wit h eve n ts. It d e no tes the flex ib ili ty ran
Siad we en the
k of an eve nt is the dif fere nce bet
"hK h an eve nt ca n occ ur. i.e. s lac is L2 - E2.
nt tim e. i.e. s lnc k of the eve nt '2'
eJrl iest eve n t tim e an d late s t eve
the ran ge
the act ivity tim es. Flo at den ote s
The term floa t is ass oci a ted wit h y flu c tua te wit hou t
' lhi n wh ich act ivi ty
1 1 s ta rts tim e o r its fini sh tim e ma
jec t.
affecting the co mp leti o n of the pro

Floa ts arc of Uie fo llO\•\'i n g ty p

es:

I. Tot al Flo at
ii. Fre e Flo a t
ii 1. lnd epe nde nt Flo at
I\ . Inte rfer ing Flo a t
e spe nt by wh ich the s tart ing (orf
:· Tot al Float: Tot al Flo at is the tim d e I ay ·mg t h e co mp I c t·1011 o
in,~ hm g) of · · n be del aye J wit hou t
ti)( a n a cbv tt) ca ..·
fou nd tha t the re 1s J d1ffert..~nu
t,.1: rOJl<(.I. Jn ( ert. ain act i, itie s, it w ill be act u.11 tim e rt..>qu areJ to pcr tor m
anJ the
u, t-t-n lh.l>.im um ti me ava i lab le
.-. act.J , ~ fht ' d1f fer enu: 1~ kno
11 wn as the tot<ll flo._1 t
J '>t.lJ fl t1 m1..• o, t•r
°'"' 1
uf an a t l1 v 1l\ 1<, U,e exc ess of tht..> m,n .1m um u, ,11l~1bk·
tlo1 .
.. IJ \ I l I
-' l lllt' I hu<.,, Jow l l
loa t = U J - f I I or L'-,1 - J ', 1
i 1t th ..1t , ,1n
u ,. J f 1-re e IJu iit : l H"t' flo. JI,.. , th.i i por l11 m o f p-0-,1 11,1..• 101~11 thi.
I~ l lw , ~,th , ••t
.Ill } :.m , eeJ mh ..tl ta, t i \
' • • n d • " ll y ""'J tho ul J t: IJ} 111~
1
 f..__M_A_NA_G_E_M_E_N_T_FO_R_E_N_G_IN_E_E_RS_ _ _ _ _ _ _ _ _ _ _ _ _ J
of free floa t is based on the floa t is based on the possibility tha t a ll the events
occur a t their ea rliest time. (i.e. all activity start as early as possible). Hence
free float for an activity is the difference between its earlies t fini sh tim e and
the earliest start time of its successor activity. Thus it is excess of the avni lable
time over the required time when the activity, as well as its successor activity
sta rt as early as possible.

Free Floa t= EST of successor - EFT of the present activity

3. Independent Float: The independent float is defined as the excess

of minimum available time over the required activity duration. Tha t is,
independent float is the amount of time an activity could be delayed if
preceding activities finish at their latest and subsequent activities sta rt at
their earliest.

Independent float is equal to the free float minus tail event slack. If the tail
event slack is zero, free float and independent float are equal. It is to be noted
that if a negative value of independent float is obtained, then inde pendent
float is taken as zero.

Independent float= EST for subsequent activity - LFT for preceding activity
- duration

4. Interfering Float: Interfering float is just another name given to th e

head event lack specially in CPM networks which are activity oriented.
Interfering float is equal to the difference between total float and the free
float.

Uses of floats
Floats are useful to solve resource leveling and resource allocation problems.
Floats give some flexibility in rescheduling some activities so as to smoothe n
the level of resources or allocate the limited resources a best as possible. ·

4.3.9 Critical Path

While analyzing a network of activities, it is often necessary to estima te the
total project time. The total project time is the maximum of the elapsed times
among all paths originating from the initial event and terminating a t the
terminal event, indicating completion of the project.

Therefore, critical path is that sequence of activities which determines the

total project time. In a project network, there may be a number of paths
starting from the initial event and ending in terminal event. These pa ths
connect activities. Among these paths that which is longest on the bas is of
final duration is called critical path.

For example, a ne twork has 3 pa ths.

1) 1-2-5-6 with duration 10 days

:Moaufe4 Page4.16
 =-=- =- =-=: ~
_::i~
M ~
A~N ~
A M
~E
O ~~E~N~F
~T ~R
;;:;O ;-N
fr"r~ N
1o-,!~~C
-C sJ
-D
!R
c~=-=-=-=-=- =
=- -~~~=-=-=-=
.~-
1r,,ti11 17 I
I -' ~ -(iwi th d1 11 L 1 1)'',
2)
_\) 1--1 (i w ith du r,1t io n H d ,iy..,

-.11 p ,1 tl1.
l'lw n t-,l -5-(, is lhl ' LT ilil
.
c b ,K li v itil, ', I1,1v1n
p,1 th is tlw u, w wh ich L·on iw g /t' ro fin.it
. c,11
\ l 1111

Cr itic al Activ ity s .

os l' flo ,1t is Zl' ro is c.i llc d r rit ic,11 nc ti v ity . , oa ny Lt• 1 int lw
1 .:iy
.\ n ,K tiv it\' wh . . 1 o ( t•n t,n•
· :. . .
I Sl' n fu rth er dl'l<-1
y in th,.... L"<>tll ptI ' 1101
t ot cn t1c-.1I Jc l 1v 1ty w ill C'clL
. .
, tir . . . . v ilil'"·
'
1t1 c s ly m g on the c nt icn l p n th .ire c riti c.1 1 J c ti
pro jec t. Ac t1v
H O D (CPM)
4.4 C R IT IC A L PA TH M ET
tec hn iqu e . It w.:i<,
th M eth od , kn ow n a s C PM , is n ne tw or k
The C rit ica l Pa tri a l s itu a lio ns lik e
dis co ve re d fo r a pp lic a ti o n s to ind us Jc
origin a lly
tu rin g, m n int c n c1 n cc etc . Sin ce the n it wa s fo un J wi
con str uc tio n, m a nu fac dge~, J am i,,
n s tru c tio n in du s try w ith ap pli ca tio n to bri
accep tan ce by co
wa ys, po we r pla nts e tc.
tun ne ls, bu ild in gs , hi g h
u en ce of
hn iq ue wh i c h co n s is ts of (I) pla nn ing the seq
CPM is a n e tw or k tec e an J res o urce<;
p e rfo rm ed in a n e tw o rk (2) sc he d uli ng the tim
activitie s to be so tha t the y arc
e rat io ns a nd (3) co nt ro lli ng the p e rfo rm an ce
to va rio u s o p
an s.
not de via tin g fro m th e pl
for tho se pro jec ts for
ll y u se d fo r rep e titi ve typ e pr oje c ts o r
CPM is ge n era
mp le tio n of ac ti v ity ca n
be ma J c
es tim a te of tim e for co
which fa irl y ac cu ra te m ad e wi th fa ir d eg ree of
ac c ura cy . Th e
co st es tim a tio n ca n be roa d
and for w hic h c ti ve ly in pr od uc tio n pla nn ing,
n be us e d e ffe
critica l pa th m e tho d ca mm un ica ti on ne tw ork
e tc. C PM
ffic sc h e du les , co
system s an d tra es to sh or~e~ the
la tio ns hi p be tw ee n ap ply ing mo re res o urc
em ph asize s the re a dd1t1 o na l
s in a pr oje c t a nd inc rea se d co s t of these
du rat ion of g ive n job
resou rce s.

5tep s inv olv ed in Cr iti ca l Pa th M eth od

n etw or k di agra m .
1 Lis t all the ac ti v itie s (ta sk s) a nd dr aw a eac h ev en t
La tes t ev en t tim e (T r) of
2· Find the Ea rli es t ev en t tim e (T F) an d
dnd sho wi·n t h e n e tw or k dia g ram . · h t,· m e, La tes t s ta rt tim
e ,-ind
f ' s
1 Cale u Ja le Ear lies t sta rt tim e, Ea rli es t sni
. e fo r ea c h ac tiv ity .
f..c! l.(-.,t f ini.s h tim
. .
4 DL-l(,r m .ine l h e fl o a t for ea ch ac ti vity.
_ s).
vi tie'> (h av ing ze ro flo at thr ou h h , nt1 , .ii
) ldl•ntify llw tri lic a l ac ti 1m pa t.s
.
ing
r, I) r d ne tw or k dia 8rc
w 0 <>U bll• Ji ne s in th e ·· c a l p,1t I1 .
" ' , 1tu °'> J) , , . Jo ub lc.• Jim•<, .,J, o w
11 th t' c rit1
.
I ( .(l I< u I ti. I Iw lok a l p roi.t·<. t du r..1 tm n .
<.J

, Hod ult I Pago 4 I 7