Project Management and Economy-

: Activity in NODES
Step 1: Define activities, durations and dependencies
Create a list of all your project activities and estimate their duration.
Then define the chronological order of the activities, i.e.
the dependencies between them. Enter everything into a table. See the
example:
Step 2: Display all activities in nodes (rectangles) and enter the
duration (d) into the node.
Each node is displayed as follows:
EST = Earliest Start Time = When can I start the activity at the earliest?
EFT = Earliest Finish Time = When can I complete the activity at the
earliest?
LST = Latest Start Time = When is the latest possible date to start the
activity if I want to complete the project on time?
LFT = Latest Finish Time = When is the latest possible date to complete
an activity if I want to complete the project on time?
d = duration of an activity (here in hours)
CBT = Cumulative buffer time = extra time you can use to complete an
activity without compromising the project end date
BT = free buffer time = extra time you can use to complete an activity
without compromising the completion time of its direct successor(s)
• Step 3: Link activities
• Define the dependencies between activities. Predecessor and successor activities
are linked by an arrow – this enables you to see which activity or activities you
have to complete before you can start the next activity. No. Activity name Proceeding Normal
activity time (days)
1 Date/ location - 1
2 Hotel booking 1 25
3 Arrival 1 15
4 On-site offer 1 20
5 On-site program 4 10
6 Send info to participant 2,3,4 1
7 Approval 5,6 30
8 Event start 7 5
• Step 4: Forward planning
No. Activity name Proceeding Normal
• Forward planning means that you start at the first activity and go through the activities #1-#8 activity time (days)
chronologically. Add the EST (earliest start time) and EFT (earliest finish time). Here’s how you
calculate the times: 1 Date/ location - 1
2 Hotel booking 1 25
• EST of activity #1 is always 0 3 Arrival 1 15
4 On-site offer 1 20
• EFT of an activity is the sum of its EST and duration >> EFT of activity #1 is: 0 + 1 (EST = 0, d = 1) 5 On-site program 4 10
• EFT of an activity is automatically the EST of its successor activity 6 Send info to participant 2,3,4 1
7 Approval 5,6 30
• If a node has more than one predecessor activity, the HIGHEST EFT is used >> EST of activity #6 is: 8 Event start 7 5
26 (taken from EFT of activity #2)

Going forward..
• Step 5: Backward planning
• This step enables you to calculate the latest start time (LST) and the latest end time (LFT). Start from activity #8 and continue until
you reach activity #1. Here’s how you calculate the times:
• LFT of activity #8 is the same as its EFT and represents the starting point of the backward planning: EFT = 66 = LFT
• LST of an activity is: LFT – duration >> LST of activity #8 = 66 – 5 = 61
• LST of an activity is also always the LFT of the predecessor activity >> LST of activity #8 = 61 so the LFT of activity #7 = 61
• If a node has more than one successor activity, the LOWEST LST is used >> activity #1 has 3 successor activities (activity #2,3,4).
Out of the three successors, activity #4 has the lowest LST (=1) so the LFT of activity #1 = 1.
• You can check whether your backward planning is correct if LST = EST = 0 for activity #1.
Going backword
• Step 6: Calculate the buffer times
• The next step is to identify the cumulative buffer time (CBT) and the free buffer time (BT) for all activities.
• Cumulative buffer time
• Formula for the CBT is: LST – EST >> So CBT for activity #6 is: 30 (LST) – 26 (EST) = 4
• The cumulative buffer time indicates how much delay there can be in completing an activity before it
jeopardizes the project’s completion.
• Free buffer time
• Formula for the BT is: EST of the successor activity minus the current activity’s own EFT. BT of
activity #3 is: 26 – 16 = 10 (EST of activity #4 = 26; EFT of activity #3 is 16)
• If an activity has more than one successor, take the LOWEST EST for the calculation. E.g. activity
#4 has 2 successors (activity #5 and #6). EST of activity #6 = 26, EST of activity #5 = 21 >> BT of
activity #4 is 21 – 21 = 0
• The free buffer time indicates how much delay there can be in completing an activity before it has
an impact on the completion time of the next activity.
• Step 7: Determine the critical path
• The critical path is the longest path (i.e. the path with the longest duration) from project start to
finish. The activities and milestones on this path have no buffer time. Which means that even the
slightest delay of one activity, the project’s completion will be delayed accordingly.
• In a network diagram every activity (node) without any cumulative or free buffer time belongs to
the critical path: CBT = BT = 0. In our case those are activity #1, #4, #5, #7 and #8.
• So the critical path determines the minimum project duration and
enables the project manager to identify activities that are particularly
risky should delays arise there.
• This helps them to devise countermeasures from the start. It’s
important the they keep a close eye on the activities on the critical
path.
• On the other hand, if you manage to complete a critical activity
earlier than planned, you can decrease the duration of the project
accordingly.
• Conclusion
• The network analysis is a very precise method but that means that it is also pretty
complex.
• For smaller projects with a smaller number of activities such as our teambuilding
event, it’s feasible. But if you have a complex project plan with a lot of activities,
it’s not only complex to create a network diagram but it’s also complex and time-
consuming to keep it up to date.
• Which is why most use a project management software to create a network
diagram. Though it’s still helpful to know how to conduct a network analysis
manually as it helps you to understand your project plan better.
• The biggest advantage of a project management tool is that it calculates end and
start times automatically according to the dependencies and constraints you’ve
defined, calculates the critical path automatically and – most importantly – it
takes much less time and effort to create a project plan.
Quiz – determine the activity on the NOD, critical
path, buffer time etc.

No. Activity name Proceeding activity Normal time (hours)

1 Motorcycle assembly - 1

2 Power train 1 18

3 chassis 1 10

4 Motor assembly 2 15

5 Gear transmission assembly 2 7

6 Exhaust assembly 2 3

7 Front and rear wheel 3 2

8 Frame / brake 3 14