MANAGEMENT TOOLS

For managing a construction project different management tools are used. Different bar
charts and softwares are used for effective competition of a project. By proper utilization of
these tools projects can be easily managed in construction industry. Critical Path Method
(CPM), Project Evaluation and Review Technique (PERT) are the mainly used methods for
construction project management.

3.1 CPM AND PERT

CPM : CPM stands for “Critical Path Method”. In CPM, the whole project consists of a
number of clearly recognizable jobs or operations called activities. Activities are usually the
operations which take time to carry out, and on which resources are expended. CPM networks
are generally used for repetitive type projects or for those projects for which fairly accurate
estimate of time for completion of each activity can be made.
PERT : PERT stands for “Program Evaluation and Review Technique”. The method was
basically developed by the Navy Special Projects Office in co-operation with Booz, Allen and
Hamilton, a management consulting firm and Lockheed Missile system Division for evaluating
the feasibility of existing schedules on Polaris Missile program and for reporting progress.
PERT system is preferred for those projects or operations which are of non-repetitive nature
or for those projects in which precise time determination for various activities cannot be
made. In such projects, management cannot be guided by the past experience. They are
referred to as once through operations or project.

3.2 Advantages of CPM and PERT

CPM and PERT networks are very powerful tools. These tools facilitate good management
of work at different phases.
Advantages of CPM are :

1. Management control becomes easy.

3. Allows tracking of critical activities.

4. It encourages discipline.

5. Provides a visual presentation of the project.

6. It identifies most critical elements and more attention can be

paid on those activities.
Advantages of PERT are :

1. PERT are very useful in large, complex studies where

overlooking details may create unresolvable problems.

2. PERT facilitates identification of the critical path and

makes this visible.
 3. It incorporates risk analysis in project network

4. PERT determines critical activities in the project.

5. PERT determines the most economical scheduel for a fixed

project duration.

3.3 GANTT BAR CHART

These Bar Charts were introduced by Henry Gantt around 1900. This method is the first
attempt to show the position of various works during the execution and still being used in
many major projects. This Bar chart mainly consists of two co-ordinate axes. One co-
ordinate represents the name of the work, activity or job performed and other represents the
time elapsed. Each bar represents one specific job or an activity of the project. The
beginning and end of each bar represents the time of start and time of finish of that activity.
The length of the bar represents the time required for the completion of that job or activity.
1. Excavation in Time in Weeks
foundation
2. Laying of concrete in
foundation
3. Brick work in
foundation &
basement
4. Lying D.P.C & B.W
in super
5. Lying of roof
6. Fixing of doors &
windows
7. Finishing works 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
8. Electrical fittings
Limitations of Bar Charts
The bar chart is an inadequate management tool and suffers because of the following
limitations.
1. Inability to depict interdependencies of activities.
2. Absence of critical and non critical activities.
3. No cost optimization.
4. No controlling and monitoring and updating.
5. No Resource leveling/smoothing.
6. No reflection of uncertainties on time.
Salient Features of Bar Char
1. Best suitable for simple and small projects.
2. Each item of work (activity) is shown separately.
3. The chart is simple to prepare and interpret.
4. Modification to the chart as on required basis can be carried out
easliy.
3.4 Terms used in CPM
1. Network of Flow Diagram : It is a diagrammatic representation of
the entire project. In this diagram, the various items of work are shown
in order in which they are to be performed.
D
2 6
8
A E G
6 5 8
B K
1 3 J 0 7 8
7 10
C H
4 7
F
4 5
9

2. Activity : An activity is a part of the project denoted by an arrow

on the network. The tail of the narrow shows the start of the
activity and the head, the end of the activity.
3. Event : An event is a stage or point whose all previous jobs
merging in it are completed and all further jobs bursting out are
still to be completed.
4. Dummy Activity : It is a fictions activity with zero duration and
no cost. It is used to maintain the sequential order of the activities
in the network.
 5. Earliest Start Time (EST) : It is the earliest possible time for the
activity to start without changing the sequence of the activities of
the network.
6. Earliest Finish Time (EFT) : It is the earliest time by which the
activity can be completed. EFT of an activity = EST + Duration of
an activity (T).

7. Earliest Event Occurrence Time (Te): It is the earliest time that

the event start can occur.
8. Latest Start Time (LST): It is the latest time by which an activity
can be started without delaying the project.
9. Latest Finish Time : It is the latest time by which an activity can
be completed without delaying the project.
10. Latest Allowance Event Occurrence Time : It is the latest time,
the even can occur.
11. Total Float (TF) : It is the difference between the maximum time
allowed for an activity and its duration time.
TF = LST – EST = LFT EFT = TL EFT

12. Free Float : The free float of an activity is an amount of time by

which the activity completion time can be delayed without
interfering with the start of succeeding activities.
FF = TE = EFT

13. Interfering Float : It is the difference between total float and free
float.
14. Critical Path : The events which have no float or slack are the
critical events (TE = TL). The path joining such critical event is
called the critical path.
15. Critical Activities : The activities lying on the critical path are
called critical activities. Critical activity has a zero float.
3.5 FORMATION OF NETWORK
The following steps are found to be useful in the development of a network for a proposed
project:
1. Objective.
2. Plan break down.
3. Sequencing.
4. Development.
5. Drawing.
6. Check.
7. Re draw and Introduce.
8. Number.
Objective : Objective specifies the task to be undertaken and policy of its execution. This
specification defines the project and determines the way in which it is to be carried out.

Plan Break Down : After establishing objective of the task, the planner has to adopt either
forward planning or backward planning to achieve the goal. This backward or forward
thinking will give a list of activities and events to be performed to achieve the task. To get
the list of activities we need to study the difficulties which are to be overcome and we need
to arrange proper facilities for facing the difficulties. We need to safeguard the facilities.
Sequencing : In the above step we got a list of activities which are to be done for the
completion of the project. In these activities similar activities are sub-grouped for easy
understanding and fast completion of the project.
Development : The activities listed above should be located on paper so that a visual effect of
movement along the time scale is obtained. Events should be located in such a way that they
represent initial picture of the relation amongst them. This relationship gives the details of
manpower, money, material and other resources required during a particular period of time.

The following points must be kept in view while locating the nodes :

(i) First event must be located by the left most node.

(ii) Events occurring earlier must be represented to the lest side

with respect to the events occurring later.

(iii) Serial events must be represented by nodes along horizontal

plane.

(iv) No event should be located in position to the left of the

vertical axis of any preceding event.
Drawing : Events having close and direct relationship are joined to each other by arrows
representing activity to be performed for passing from one stage of the project to the other.
Check : At this stage, the diagram is checked with respect to Content, Sequence, Sense,
Start point, Project completed, Degree of details.
Redraw and Introduce : The errors found in the previous step are removed, and the
diagram is redrawn, by introducing uniqueness dummies, if necessary.
Number : After drawing the final network, the events are numbered.

Basic Rules

The following rules should be followed for forming the network.

1. Initial node has only outgoing arrow, there must be single
initial node in a network.
2. An event cannot occur twice.
3. There must be only one single final node.

4. No activity can start until its tail end event has occurred.
5. Any arrow should represent singular situation.
6. Representation of the network should be such that every
activity is completed to reach the end objective.
7. All constrains and indeterminacies should be shown properly
on the network by use of appropriate dummies.
8. All constrains and indeterminacies should be shown properly
on the network by use of appropriate dummies.
9. Logic of network should always be maintained.
10. It is usual practice to show the time flow from left to right.

3.6 Calculates time on CPM network identifying critical activities, critical path, free float and total float.
Draw the Network diagram for a project based on the following data

(a) A and B can be performed concurrently and start of the

project
(b) A must precede C and D
(c) G must follow C
(d) M is dependent on both D and G
(e) Neither E nor F can start before B is completed but E and F
can be performed concurrently
(f) D must precede H
(g) J is dependent on both E and F
(h) K can begin only after J, M and H are completed
(i) L is the lost operation which follows K
 G
4 8
C
M
2
A D
H K L
5 9 10 11
1 J

B E 7

3
F
6

FIG 3.1 : Network Diagram

2. Construct the arrow network for the following data

(a) A, B and C operations at the beginning of the Project and
can be carried out simultaneously
(b) Activity D succeeds A
(c) Activity G follows C
(d) Activities E and F are dependent on B and C
(e) Activity J is dependent on D and E
(f) Activity K follows F
(g) Activity L is dependent on F and G
(h) Activity J, K, L are the last operations

D
2 6
J
A E

B F K
1 3 5 8
L
C
G 7
4

Identify the critical path. Find the total duration of the Project. Drawing the Tabular form
sharing EST, LST, EFT, LFT and FLOAT.
Draw the CPM Network diagram for the following data
Activity Duration in Days

1–2 3

1-3 4

2-4 2

3-4 3

3-5 6

3-6 4

4-7 4

5-7 5

5-8 7

6-8 4

6-9 3

7-9 2

8-9 3
Draw the CPM Network diagram for the following data
Activity 1-2 1-3 1-4 2-5 3-6 3-7 4-7 5-6 5-8 6-9 7-9 8-10 9-11 10-11
Duration 8 9 8 4 6 7 5 4 8 4 6 6 9 7

Identify the critical path. Find the total duration of the project.
Draw the Tabular form showing EST, LST, EFT, LFTand FLOAT.
8 8 12 12 20 20

2 4 5 8 8 26 26
6
10
8 4
0 0 9 11 16 20 7 33
1 3 6 9 11
9 6 4 9
24 24 33
8
6
4 7
5
8 13 16 18

CPM Network Diagram

Critical Path 1-2-5-8-10-11
Total Duration of the Project = 33 Days

S.No. Activity Duration EST EFT LST LFT Total Free

Float Float

1 1-2 8 0 8 0 8 0 0

2 1-3 9 0 9 2 11 2 0

3 1-4 8 0 8 5 13 5 0

4 2-5 4 8 12 8 12 0 0

5 3-6 6 9 15 14 20 5 1

6 3-7 7 9 16 11 18 2 0

7 4-7 5 8 13 13 18 5 3

8 5-6 4 12 16 16 20 4 0

9 5-8 8 12 20 12 20 0 0

10 6- 9 4 16 20 20 24 4 2
11 7- 9 6 16 22 18 24 2 2
12 8 - 10 6 20 26 20 26 0 0
13 9 - 11 9 22 31 24 33 2 2
14 10 - 11 7 26 33 26 33 0 0

A project has eleven activities. The expected time of each activity is given below.
S.No. Activity Duration in Days
1. 1-2 4
2. 2-3 3
3. 2-4 5
4. 2-5 6
5. 3-6 4
6. 5-6 7
7. 5-7 8
8. 4-7 8
9. 6-8 5
10. 7-8 7
11. 8-9 9

Draw the project network and identify the critical path. Draw the
tabular form showing EST, LST, EFT, LFT and Float.

7 6 17 20

3 6
4

4 4 3 10 10 7 5 25 25 34

1 2 5 8 9
4 6 9
0 0 5 8 34
7
4 7
8
19 10 18 18
 Critical Path : 1-2-5-7-8-9
Total Duration of the Project = 34 Days
S.No. Activity Duration EST EFT LST LFT Total Free
Float Float

1 1-2 4 0 4 0 4 0 0

2 2-3 3 4 7 13 16 9 0

3 2-4 5 4 9 5 10 1 0

4 2-5 6 4 10 4 10 0 0

5 3-6 4 7 11 16 20 9 6

6 5-6 7 10 17 13 20 3 0

7 5-7 8 10 18 10 18 0 0

8 4-7 8 9 17 10 18 1 1

9 6-8 5 17 22 20 25 3 3

10 7-8 7 18 25 18 25 0 0

11 8-9 9 25 34 25 34 0 0

The table given below represents the activities of the network for construction of a rolling
mill. The expected duration of the activities for the network also given.

(a) Prepare the network diagram

(b) Find the critical path and time of completion of the project

(c) Prepare time schedule indicate EST, LST, EFT, LFT and Float

Activity 0-1 1-2 2-3 2-4 2-7 3-4 3-7 4-5 4-6 5-6 6-7 7-8

Duration 6 12 10 36 6 8 10 14 16 8 12 8

Critical Path : 0-1-2-4-5-6-7-8

Total Duration of the Project = 96 Days
S.No. Activity Duration EST EFT LST LFT Total Free
Float Float

1 0-1 6 0 6 0 6 0 0

2 1-2 12 6 18 6 18 0 0

3 2-3 10 18 28 36 46 18 0

4 2-4 36 18 54 18 54 0 0

5 2-7 6 18 24 82 88 64 64

6 3-4 8 28 36 46 54 18 18

7 3-7 10 28 38 78 88 50 50
 8 4-5 14 54 68 54 68 0 0

9 4-6 16 54 70 60 76 6 6

10 5-6 8 68 76 68 76 0 0

11 6-7 12 76 88 76 88 0 0

12 7-8 8 88 96 88 96 0 0

3.7 The limitations of CPM.

The critical path method is a project management tool developed in the U.S. in 1957. CPM
may not be appropriate for all projects. There are some limitations for CPM which we need
to check. The major limitations are given below.

1. CPM is not suitable for the projects which cannot be broken into
discrete activities with known completion times. For example, on a
new project, activity durations may be hard to estimate.

2. Some comments say that it takes too much time to identify all
activities and inter relate them to get multiple project paths. This
cases user frustration throughout the project.
3. CPM stops working in practical situations in which employees are
often re-allocated across projects and activities. This

reallocation changes activity completion time and disrupts the

CPM plan.

4. Identifying a single critical path is difficult to determine parallel

paths with similar durations. Project teams may confuse on which
path to choose or which activities are more critical than others.

3.9 Distinguishes between CPM and PERT.

 CPM
It is basically having DETERMINISTIC
approach in the design of network.
Only one time estimate is required for
each activity.
It is built-up of activity oriented diagram
Time and cost both are controlling
factors. There is an optimum duration
of the project at which the project cost
is minimum and this can be obtained by
crashing the network.
Critical events must have zero slack.
It is recommended for repetitive nature
of work where past experiences are
adequately available.
PERT
It is bascially having PROBABILISTIC
approach in the design of network.
Three Time Estimate (in the form of
Pessimistic time, Optimistic Time and
Most likely time) for each activity.
It is built-up of event oriented diagram.
Time is only the controlling factor and
the cost is assumed proportional to the
project duration.
Critical events may be positive/Zero/
negative depending upon the project
scheduled completion time.
It is recommended for research and
development project where no past
experiences are available or where
great uncertanity lies in the time
estimation.