“Failing to plan is planning to fail”

by J. Hinze, Construction Planning and Scheduling

Prepared by Simret T. (Ph.D.) 1

Planning in Construction

• Construction projects involve using different —

human, equipment and material, money, etc.,
• At all times, the task of a construction planner is to draw up
plans for optimum utilization of all these resources and to
ensure appropriate preparedness at all times.
• Some of the activities involved in construction planning
are briefly discussed below:

Prepared by Simret T. (Ph.D.) 2

Planning in Construction
• Defining the scope of work: Since all activities involve
consumption of different resources to different extents, it is
important that the scope of work involved is properly and,
to the extent possible, completely defined.
• Identifying activities involved: This part of planning is
very closely linked to defining the scope, and involves
identifying activities in a particular job.
• Since different activities involved consume different physical
resources to varying extents, it is crucial that these activities
are exhaustively listed, along with the resources required.
Prepared by Simret T. (Ph.D.) 3
Planning in Construction
• Establishing project duration: This can be done only
with a clear knowledge of the required
✓Resources , Productivities and Interrelationships.
• This information is used to prepare a network and other
forms of representations outlining the schedules.
• Duration required for any activity is related to the resources
committed, and it may be possible to reduce the project
duration by increasing the resource commitment, even at
additional cost. Prepared by Simret T. (Ph.D.) 4
Planning in Construction
• Defining procedures for controlling and assigning
resources: It is important that the planning document
prepared is followed by others involved in the execution of
the project, or in its individual phases.
• Thus, the procedures to be followed for procurement and
control of resources for different activities—manpower,
machines, material and money—are also laid down

Prepared by Simret T. (Ph.D.) 5

Planning in Construction
• Developing appropriate interfaces: The planner needs to
devise an appropriate system for management information
system (MIS) reporting.
• Tools such as computers and formats for reporting are widely
used, and it may be noted that several software are readily
available to aid the planner.
• Updating and revising plans: Although a construction
plan needs to be continuously updated and revised during
monitoring, some basic issues should be borne in mind
before drawing up a full-fledged plan.
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Planning in Construction

• The planning should also identify milestones and targets for

the different agencies to facilitate proper monitoring during
execution.
• Inclusion of features identifying risks associated with a
project, and the appropriate responses for mitigation
enhance the quality of the project plan.

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Types of Project Plans
• Schedule, cost, quality and safety can be identified as
specific items on which the success of any (construction)
project is evaluated.
• At times it makes sense to have different plans for each of
these criteria—and draw up (separately)
✓A time plan (or schedule)
✓Cost plan
✓Quality plan and
✓A safety plan.
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Types of Project Plans
• Of course, depending upon the nature and stage of the
project, one may also need to deal with a plant and
equipment plan, a maintenance plan and a staff deployment
plan.
• It should be emphasized that all ‘independent’ plans should
always be in line with an overall ‘master plan’ that lays down
the overall plan of the project.
• A brief description of some of the commonly used plans in
the construction industry is given in the following slides.
Prepared by Simret T. (Ph.D.) 9
Types of Project Plans
• Time Plan: Time is the essence of all construction projects.
• Contracts often have clauses outlining awards as bonus
payments or penalties as liquidated damages for completing
a work ahead or later than a scheduled date.
• Several reasonably well-established techniques are available
and commonly used for time planning or ‘scheduling’
activities—for example,
Critical path method (CPM), programme evaluation and review
technique (PERT), precedence network analysis (PNA), line-of-
balance technique (LOB), linear programme chart (LPC) and time
scale network (TSN) Prepared by Simret T. (Ph.D.) 10
Types of Project Plans
• Manpower Plan: This plan focuses on：
✓Estimating the size of workforce
✓Division in functional teams and
✓Scheduling the deployment of manpower.
• It may be noted that manpower planning also involves：
✓Establishing labour productivity standards,
✓Providing suitable environment and financial incentives
for optimum productivity, and
✓Grouping the manpower in suitable functional teams in
order to get the optimum utilization
Prepared by Simret T. (Ph.D.) 11
Types of Project Plans
• Material Plan: The material plan involves
✓Identification of required materials
✓Estimation of required quantities
✓Defining specification and forecasting material requirement,
besides identification of appropriate source(s)
✓Inventory control
✓Procurement plans and monitoring the usage of materials

Prepared by Simret T. (Ph.D.) 12

Types of Project Plans
• Construction Equipment Plan: Modern construction is
highly mechanized and the role of heavy equipment in
ensuring timely completion of projects cannot be over
emphasized.
• Machines are used in modern construction for mass
excavation, trenching, compacting, grading, hoisting,
concreting, drilling, material handling, etc.
• Heavy equipment are very costly and should be optimally
utilized in order to be productive.
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Types of Project Plans
• Finance Plan: Given the fact that large construction
projects require huge investments, and a long time to
complete, it is obvious that all the money is not required at
any one point in time.
• Contractors fund their projects from their working capital, a
part of which is raised by the contractors using their own
sources (e.g., bank loans secured against assets, deployment
of resources from their inventory).
• Thus, a careful analysis needs to be carried out to determine
how the requirement of funds varies with time.
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Work-Break Down Structure
• Work-breakdown structure (or WBS), or simply ‘work
breakdown’, is the name given to a technique in project
management in which the project is broken down into
‘manageable chunks’.
• WBS represents ‘a task-oriented “family tree” of activities
and
• It organizes, defines, and graphically displays the total work
to be accomplished in order to achieve the final objectives of
the project.
Prepared by Simret T. (Ph.D.) 15
Work Breakdown Structure
• Therefore, the WBS is a foundational project management
component, and as such is a critical input to other project
management processes.
• It is an input for deliverables such as
✓Activity definitions
✓Project network diagrams
✓Project and program schedules
✓Performance report,
✓Risk analysis and response
✓Control tools for project organization.
Prepared by Simret T. (Ph.D.) 16
Methodology of WBs
• A project is split into different levels from top to bottom
• It shows the ‘whole to part’ relation between the project,
sub- projects, work packages, tasks and activities.
• The WBS does not go into the details of activity at the
operational level.
• The term ‘subprojects’, ‘work packages’, and ‘tasks’ are used
interchangeably.
• However, in this text, the sub- projects are assumed to be at
higher level than the work packages, and tasks are assumed
at lower level than the work packages.
Prepared by Simret T. (Ph.D.) 17
Work Breakdown Structure
• Work packages are the smallest self-contained grouping of
work tasks considered necessary for the level of control
needed, and may typically last a week to a month in
duration.

Prepared by Simret T. (Ph.D.) 18

Work Breakdown Structure

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Scheduling In Construction
• The planning portion of a construction project relates to
developing the logic of how a project will be constructed.
• While scheduling consists of integrating that plan with a
calendar or a specific time.
• Project scheduling is the process of
✓Determining the sequential order of the planned
activities
✓Assigning realistic durations to each activity, and
✓Determining the start and finish dates for each activity.
Prepared by Simret T. (Ph.D.) 20
Tools of Scheduling In Construction
• Bar charts (Gantt Charts)
• Networks
✓Critical path method (CPM)
✓Program evaluation and review technique (PERT)
✓Precedence Diagram Method (PDM) r Precedence Network
Analysis (PNA)
• Line of balance technique (LOB)
• The ladder networks
Prepared by Simret T. (Ph.D.) 21
Bar charts
• The bar chart is graphical representation of project schedule.
• They are easy to understand and very useful in reviewing
progress.
• It is one of the oldest methods and an effective technique for
overall project planning.
• These charts were developed by Henry L. Gantt during the
World War I, and are also sometimes referred as a Gantt
chart.

Prepared by Simret T. (Ph.D.) 22

Bar charts
• It give an idea of duration of activities/project and hence can
be useful in preparing strategy for working.
• In a bar chart the activities are shown as horizontal bars on a
horizontal time scale, where the start and end locations of
the bars coincide with the start and finish dates of the
activities.
• A bar chart representation of the illustrative example of the
construction of a boundary wall is given in Figure below.
Prepared by Simret T. (Ph.D.) 23
 Bar charts
Sl. Activity Time in months
No. Description 1 2 3 4 5 6 7 8 9 10 11 12
1 Excavation
2 PCC
3 RCC for footing
4 RCC for wall
5 Plastering
6 Painting
7 Fencing
Prepared by Simret T. (Ph.D.) 24
Bar charts
• It can be seen from the bar chart that excavation starts at the
beginning of month 1 and is supposed to get completed at
the end of month 3.
• Similarly, PCC is planned to start at the beginning of month 2
and is supposed to get completed at the end of month 6.
• As is clear, though bar charts are an excellent tool for visual
representation of the plan of the project, there is no way of
knowing logical interdependency of activities using bar charts.
• Also the criticality of an activity or any cascading effect of
delay in an activity cannot be easily assessed from bar charts.
Prepared by Simret T. (Ph.D.) 25
Network Techniques
• Networks consisting of nodes and arrows are the graphical
representation of activities, showing logical dependence
between them.
• While drawing a network, certain rules are followed while
numbering the events or nodes. For example:
✓ Same node number is not to be used twice in the network;
✓ Tail node number is smaller than the head node;
✓ Numbering starts from left hand top and ends in right hand
bottom.
Prepared by Simret T. (Ph.D.) 26
Network Techniques
• Types of networks
1. AOA (Activity-on-Arrow) and
2. AON (Activity-on-Node).
• It may be noted that before an activity begins all activities
preceding it must be completed.
• An arrow implies only a logical precedence, and its length
or direction does not have any significance as far as project
duration is concerned.
Prepared by Simret T. (Ph.D.) 27
Example of AoA network
6,15,30
G
D 50
30

0,0,0
2,5,14 B 5,6,7 0,0,0
E

20 60 70
10 40
A C F H I

3,12,21 5,14,17 1,4,7 5,14,17

Prepared by Simret T. (Ph.D.) 28

Example of an AoN

B D F
A

C E G H

Prepared by Simret T. (Ph.D.) 29

Network Techniques
• In AOA, the activities are shown as arrows leading from one
node to another node, and here nodes represent either the
starting or the end point of an activity.
• In AON, the activities are denoted by nodes and the
immediate predecessor relationship between two activities
is shown by an arrow connecting two nodes.

Prepared by Simret T. (Ph.D.) 30

Preparation of Network Diagram

• Creating a network diagram involves:

i. Preparing a work break down structure for the project
ii. Determining the interdependency among the activities
iii. Estimating the duration for each activity and
iv. Finally drawing the network.

Prepared by Simret T. (Ph.D.) 31

Preparation of Network Diagram

• Once an initial draft of the network is prepared, the analysis

is carried out using a forward pass followed by a backward
pass to determine the critical path in the project and the
activities lies on it.
• The draft network is then revised to finalize the details.
• Some additional details involved in these steps are discussed
in the following sections.
Prepared by Simret T. (Ph.D.) 32
Preparing the work breakdown structure
• This involves defining the constitute activities of the project.
• It may be recalled that work break down structure divides the
work based on similarity of nature of works.
• For example, works requiring similar labor, similar plant and
equipment, etc. may be classified in same group.
• Each activity under different divisions of WBS should be in
manageable unit of work which can be clearly identified and its
relationship with other activities suitably defined.
• Resources should be considered while defining the activities, and
their requirement estimated.
Prepared by Simret T. (Ph.D.) 33
Inter dependence of activity
• Dependence could arise on account of a variety of reasons
• The need for earthwork to precede carrying out brickwork in
foundation is an example of a requirement for physical and
logical sequencing of activities.
• However, if a crane or a dozer at site can be used for ____
<please add some examples>, and whether the equipment is
used for one or the other (which leads to a ‘dependence’ – in
the sense that one can be taken up only when the equipment
is free from the other one) is an example where the need to
share common resources, is at the root of dependence.
Prepared by Simret T. (Ph.D.) 34
Inter dependence of activity
• For each activity the planner must know which activity
precedes or succeeds a particular activity and
• Which activity can be taken up concurrently with this
particular activity.
• The answer to these questions will furnish the dependency
relationships between the activity in question and its
immediately following activities.

Prepared by Simret T. (Ph.D.) 35

Inter dependence of activity
• Such considerations define a certain logic for the network
and the plan of construction of the project.
• The interdependence is often represented in the form of
a table for ease of referencing and understanding.
• The ability to define appropriate dependence requires
substantial experience, intuition and judgment on part of
the planner.
• Several difficulties and revisions in the network can be
avoided by foresight in defining dependences.
Prepared by Simret T. (Ph.D.) 36
Estimating duration for an activity
• The duration for an activity can be estimated using several
approaches:
• One-time estimate: Such type of estimation of duration is
based on one or more of the following:
✓Data planning
✓Past experience on execution of a similar project; and
✓Average time assessed by a group of executives.

Prepared by Simret T. (Ph.D.) 37

Estimating duration for an activity
• The time required to complete an activity should depend not
only on the quantum of work to be executed (𝑄) but also the
resources allocated (𝑅) and the (unit) productivity of the
resources (𝑃).
• The experience of the planner comes to the fore not only in
cases when such data is not available, but also when the
data is to be interpreted to account for geographical
differences, age of equipment, operating conditions, etc.
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Estimating duration for an activity
• Simply put, the time required (𝑇) to complete an activity can be
calculated using the following relationship, provided care is taken
to ensure proper units for all the quantities.
T = Q / ( R  P)
• For example, the time taken to paint 100 m2 (𝑄) using 2 painters
(𝑅) and assuming each painter can do 5 m2 in an hour (𝑃), is
simply 10 hours (𝑇).

Prepared by Simret T. (Ph.D.) 39

Estimating duration for an activity
• Life in real projects is however, not as simple, and there
could be uncertainties involved in the estimation of
quantities, resources, and the productivity of a resource.
• For example, in a project in the absence of accurate ground
data it would be very difficult to estimate the quantities of
activities associated with underground works.
• Similarly in dewatering works the time taken to dewater up
to a particular depth is difficult to estimate.
• The productivity of a resource is dependent on a number of
parameters. Prepared by Simret T. (Ph.D.) 40
Estimating duration for an activity
• it is really a very challenging task to estimate the productivity
of a particular resource.
• Needless to say, in the absence of the accurate estimate of
productivity figures, there could be uncertainties involved in
the estimate of resource requirement as well.
• Statistical data stored over a period of time for a number of
similar construction projects plays an important role in the
estimation of the three parameters namely, 𝑄, 𝑅, and 𝑃 and
consequently helps in estimating the duration of an activity.
Prepared by Simret T. (Ph.D.) 41
Estimating duration for an activity:
• Three-time PERT estimate: When the exact duration of an
activity, like research and development, is not certain, the
three-time estimate is used to compute its expected
duration.
• The following relation is used to calculate the expected
duration of such an activity.

Prepared by Simret T. (Ph.D.) 42

Estimating duration for an activity
(To + 4Tm + Tp )
Te =
6
𝑇𝑒 = expected completion time
𝑇𝑜 = optimistic time, assuming that everything goes extremely well
with no delays
𝑇𝑝 = pessimistic time, assuming that everything goes wrong
𝑇𝑚 = most likely time, assuming normal conditions
Prepared by Simret T. (Ph.D.) 43
Estimating duration for an activity
• The three-time estimate can effectively be used in certain
areas of construction projects where time is the main criteria
and the resources employed are of secondary consideration.
• Some of these are as follows:
✓The planning of projects especially, at the feasibility stage
✓The contracted works, where time is the main
consideration for the management; and
✓The complex structures, where the exact duration
estimate is difficult to assess.
Prepared by Simret T. (Ph.D.) 44
Estimating duration for an activity:
• Non-Linear distribution estimate: The one-time activity
duration estimation methodology, assumes average daily
uniform manpower (or effort) of work throughout the
execution of activity.
• But execution of some activities may need effort in a non-
linear pattern.
• Such non-linear distributions may follow triangular,
trapezoidal, binomial, beta, gamma, normal or other pattern.
Prepared by Simret T. (Ph.D.) 45
 Estimating duration for an activity:

Statistics Normal Beta Triangular Uniform

Expected Value or
mean (a + b)/2 (a + 4m + b)/6 (b + m + a)/3 a + (b - a)/2
[(b - a) 2 + (m - a) * (b (b 3 - a 3 )/[3*(b - a)]-
Variance (b - a) 2 /36 (b - a) 2 /36 - m)]/18 (b - a) 2 /4

Standard Deviation (b - a)/6 (a - b)/6 √v √v

Note: a = Optimistic value, b = Pessimistic value, m = Most likely value, v = variance

Prepared by Simret T. (Ph.D.) 46

Drawing the network

• An arrow diagram drawn as a network follows the decision

about dependency relationships.
• All activities having no proceeding activities are started
from a common (start) node and can be called ‘starting’
activities.
• Similarly, all ‘’terminal’’ activities, which have no following
(or succeeding) activities, are terminated at a common
(end) node.
Prepared by Simret T. (Ph.D.) 47
Drawing the network
• By definition, therefore, for all other activities there must
be at least one preceding activity and one succeeding (or
following) activity.
• Mathematical ease and visual clarity require that the
network uses a minimum number of nodes and is an
elegant representation of the activities and their
dependence.
• Now, such networks can be drawn manually only with
sufficient experience and ingenuity.
Prepared by Simret T. (Ph.D.) 48
Fit in and review
• The durations used in the above steps are closely related to
the resources committed for the activity
• And therefore the preliminary estimates of finishing a project
may not always meet the ‘desired’ time of completion for a
project.
• In such an event, the exercise needs to be reviewed keeping
in mind the desired time,
• Once the discrepancy is removed and the activities on the
critical path identified, the network is frozen for the
purpose of resource allocation and monitoring.
Prepared by Simret T. (Ph.D.) 49
Recast network
• Based on the finalized network, resources are assigned to all
activities, keeping in mind especially those on the critical
path.
• In the event that it is found that the resources required are
in excess of a realistic estimate of availability, alternative
methods and resources are sometimes identified, which may
at times necessitate reworking of the network.

Prepared by Simret T. (Ph.D.) 50

Review and monitoring
• This phase reflects the monitoring phase, when the project is
already underway.
• The objective is to ascertain whether the progress is as per
the predetermined schedule and if any readjustment is
required.
• At the time of review, it may at times happen that the
duration of an activity may need to be revised.
• In such cases, the network may need to be reanalyzed
including carrying out the forward and backward passes to
ascertain any change in the critical path.
Prepared by Simret T. (Ph.D.) 51
Review and monitoring
• During the review and monitoring, the task of a planning
engineer is made easy by presenting the information at a
given date in the form of
✓ Activities started but yet to be completed
✓ Activities that should have been in progress but have not
started
✓ And future activities to be taken in the next week,
fortnight, month, quarter, etc.
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Review and monitoring
• The revised list of critical activities, and list of activities with
ascending order of floats etc. (to be used in resource
leveling).
• It may be pointed out that as far as a contractor is
concerned, these are some of the efforts that are made
before it is finally concluded that an extension in the project
duration should be sought!!

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Network Advantages
• Facilitates focusing attention on specific objectives.
• The results of planning activities can be clearly seen.
• Mathematical computation for determining parameters such
as early and last start and finish dates can be easily carried
out.
• In fact, the exercise can be computerized for large projects,
and enable construction management to benefit from the
higher speeds of calculation available, data storage and
retrieval, etc.
Prepared by Simret T. (Ph.D.) 54
Network Advantages Cont’d…
• Activities on the critical path and those with float can be
easily identified.
• This enables the manager to draw a list of activities that
require closer attention, and taking timely corrective action
in case of slippage. In other words, ‘ ’
is made possible.
• Facilitate identification of possible conflicts in the schedule
of activities, in terms of sharing of resources, etc.
• As a corollary, resources can be dynamically reallocated
taking account of emerging changes in the criticality of
activities, etc. Prepared by Simret T. (Ph.D.) 55
Network Advantages Cont’d…
• Facilitates drawing up of summaries, monitoring and review
reports for consultants, clients, etc.
• Provide an overall graphic master plan of a complex project
clearly showing job inter-relationships.
• Helps in drawing up alternative plans of work – different
alternatives can be examined by varying the pattern of
resources allocation, (which in turn changes the time
estimates for the constituent activities).
Prepared by Simret T. (Ph.D.) 56
Network Advantages Cont’d…

• Cost-time studies can be carried out and an optimum project

duration depending upon different levels of resource
commitment can be found.

Prepared by Simret T. (Ph.D.) 57

Terminology Used in Planning Techniques
• Event or Milestone
▪ A point in time when certain conditions have been
fulfilled, such as the start or completion of one or more
activities
▪ Unlike an activity, does not consume time or resources
▪ Hence, expresses a state of being
▪ Activities take place between events
• Activity
▪ A item of work that consumes time and resources to
produce some resultPrepared by Simret T. (Ph.D.) 58
Terminology Used in Planning Techniques cont’d….

• Dummy activity
• This activity does not involve consumption of resources,
and therefore does not need any time to be ‘completed’.
• It is used to define interdependence between activities
and included in a network for logical and mathematical
reasons as will be shown later.

Prepared by Simret T. (Ph.D.) 59

Illustration of event, activity, and dummy activity

A B

10 30 50

C
D

20 40 60

Prepared by Simret T. (Ph.D.) 60

Terminology Used in Planning Techniques cont’d….

• Critical Path
▪ The series of activities all of which must finish on time for
the whole project to finish on time
▪ Sometimes described as the longest path through a
network, hence the shortest project time.
▪ A critical path has zero float
▪ A critical path assumes that the network logic is sound.

Prepared by Simret T. (Ph.D.) 61

Terminology Used in Planning Techniques cont’d….

• Float or Slack Time

▪ The additional time available to complete a non-critical
activity
• Leads and Lags
▪ An imposed modification of the logical relationship
between activities to accelerate or delay the apparent
natural order
Prepared by Simret T. (Ph.D.) 62
Network Logic
C

Fig_b
Fig_a
Dummy activity
A 2

B
2
1 1 4
C Dummy activity

Prepared by Simret T. (Ph.D.) 63

Network Logic A

A B
B

Fig____

A
C
C
A

B D
Fig__
Prepared by Simret T. (Ph.D.) 64
Network Logic
A L
A C
B

B D M
C

A L A L

M B M

N C N
C Prepared by Simret T. (Ph.D.) 65
Network Logic

A L

B M

C N
Prepared by Simret T. (Ph.D.) 66
Terminology Used in Planning Techniques cont’d….
Duration of an activity [D(i,j)]
• The length of time required to carry out an activity (i,j) from the
beginning to its end.
• The duration may be expressed in days, weeks or months- depends
on the activity and the level of detail
• The actual duration depends, in principle, on the quantum of work
involved in the activity and the resources deployed, it is not really
necessary that the relationship is exactly linear.
• A duration cannot be really fixed or given as a final number, and as
such remains only an estimate, based on past experience with
productivity, etc. Prepared by Simret T. (Ph.D.) 67
Terminology Used in Planning Techniques cont’d….

• Most likely time: The most probable or likely time for

completion of an activity.
• A symbol 𝑡𝑚 is often used to denote this time.
• Optimistic and pessimistic times: The minimum and
maximum time for completion of an activity, respectively.
• In the parlance of project scheduling, the times are referred
to as 𝑡𝑜, and 𝑡𝑝

Prepared by Simret T. (Ph.D.) 68

Terminology Used in Planning Techniques cont’d….
Earliest Start Time of an activity (i, j) [EST(i, j)]
• This is the earliest that the activity (I, j) can be started, i.e.,
all the necessary preconditions are met.
Earliest Finish Time of an activity (i,j) [EFT(i, j)]
• This is the earliest that an activity can be completed.
Mathematically, the relationship can be expressed as

EFT ( i, j ) = EST ( i, j ) + D ( i, j )
Prepared by Simret T. (Ph.D.) 69
Terminology Used in Planning Techniques cont’d….

Latest Finish Time of an activity (i,j) [LFT(i,j)]

• The latest time that an activity needs to be completed in
order that there is no delay in the project completion.
Latest Start Time of an activity (i,j) [LST(i,j)]
• The latest time when an activity must be started, in order
that there is no delay in the project completion.
LST ( i, j ) = LFT ( i, j ) – D ( i, j )
Prepared by Simret T. (Ph.D.) 70
Terminology Used in Planning Techniques cont’d….
Path and critical path
• Any series of activities connecting the starting point to the
finishing point can be said to define a ‘path’ and indeed in a
project having several activities, several such ‘paths’ can be
identified.
• Among these paths, the ‘critical path’ is defined as one
that gives the longest time of completion (of the project),
which also defines the shortest possible project time.
Prepared by Simret T. (Ph.D.) 71
Terminology Used in Planning Techniques cont’d….
Forward and Backward Pass
• The forward pass moves from the ‘start’ node towards the ‘finish’
node, and basically calculates the earliest occurrence times of all
events.
• Considering that the project starts at time zero, the earliest
occurrence time at each node is found by going from node to node in
the order of increasing node numbers keeping in mind the logical
relationships between the nodes as shown by the connecting arrows.
• The earliest occurrence time for any node can be estimated from the
(maximum) time taken to reach that node from the different
incoming arrows. Prepared by Simret T. (Ph.D.) 72
Example of a small network

3
B D 2
5
A
A 2 F 6
1
4
4 5
5
C E
7 3
4

Prepared by Simret T. (Ph.D.) 73

Terminology Used in Planning Techniques cont’d….
Total Float in an activity (i, j) [TF(i, j)]
• Total float is the amount of time by which the start of an
activity may be delayed without causing a delay in the
completion of the project.
• This is calculated as:

TF (i, j ) = [ LST (i, j )  –  EST (i, j )  or  LFT (i , j )  –  EFT (i , j )]

Prepared by Simret T. (Ph.D.) 74

Terminology Used in Planning Techniques cont’d….

Free float
• Is the amount of time by which the start of an activity may
be delayed without delaying the start of a following activity.
• Free Float = (Earliest start time of the following activity –
Duration of the activity – Earliest start time of the activity)
that is
Free Float = TE j − TEi − D

Prepared by Simret T. (Ph.D.) 75

Terminology Used in Planning Techniques cont’d….
Independent float
• Is the amount of time by which the start of an activity may
be delayed without affecting the preceding or the following
activity.
• Independent Float = Earliest date for succeeding event –
Latest date of preceding event – Activity duration that is
Independent Float.
Independent Float = TE j − TLi − D
Prepared by Simret T. (Ph.D.) 76
Terminology Used in Planning Techniques cont’d….

Interference Float
• It is defined as the difference in Total Float and Free Float. In
other words:
• Interference Float= Total Float – Free Float.

Prepared by Simret T. (Ph.D.) 77

Illustration for TF, IF, and FF calculation

T.F TLj
TLi Duration

Duration
I.F
TEi TEj
Duration F.F

Prepared by Simret T. (Ph.D.) 78

Project CPM and PERT Network Analysis

Prepared by Simret T. (Ph.D.) 79

Critical path method
• NASA used the critical path method to help determine an
efficient schedule for the tasks that led to the moon landing.
• CPM undermines the uncertainty involved in any type of
projects and hence it ignores the usage of probabilistic job
times, as a result CPM is a “deterministic” rather than a
“Probabilistic” model.
• Nevertheless, CPM takes into account of uncertainty or
variations involved in a job at the planning stage itself.
Prepared by Simret T. (Ph.D.) 80
Critical path method Cont’d…
• In CPM also, the workflow can be shown schematically by
the means of an arrow, where the logical relationships
between the various activities can clearly be seen.
• For CPM, activity durations are considered more
deterministic.
• Accordingly instead of the three time estimates for an
activity, in CPM single time estimate for an activity is
adopted which are assumed proportional to the resources
allocated for each activity.
Prepared by Simret T. (Ph.D.) 81
Critical path method Cont’d…
• In CPM also, the similar process of forward and backward
paths calculations to find out the start and finish times, the
floats, the critical activities, and the length of the critical
path are adopted.
• CPM is mostly in use for the construction projects.
• Network charts and CPM analysis used to be carried out by
hand.
• Software is now available to perform CPM calculations.
Prepared by Simret T. (Ph.D.) 82
Critical path method Cont’d…
• Critical Path Method (CPM): is a procedure for using
network analysis to identify those tasks which are on the
critical path. i.e. where any delay in the completion of these
tasks will lengthen the project timescale, unless action is
taken.
• For all tasks off the critical path, a degree of tolerance is
possible (eg. late start, late completion, early start, etc.).

Prepared by Simret T. (Ph.D.) 83

Why the CPM?
• The CPM formally identifies tasks which must be completed
on time for the whole project to be completed on time
• Identifies which tasks can be delayed for a while if resource
needs to be reallocated to catch up on missed tasks
• It helps you to identify the minimum length of time needed
to complete a project
• The CPM determines both the early start and the late start
date for each activity in the schedule.
Prepared by Simret T. (Ph.D.) 84
Why the CPM? Cont’d…

• CPM is best suited for developing the sub-networks of sub-

groups and task having activities with deterministic single-
time duration.
• The sub-networks can then be systematically integrated into
a project network using the PNA techniques.

Prepared by Simret T. (Ph.D.) 85

How to use the CPM?

• List the activities and relationships.

• Create a start node.
• Draw arrows from Start node to the First activity’s node
• Sequentially Arrange all Activities from “Start”
• Repeat process from successors for all activities.
• Double check for missed relationships.

Prepared by Simret T. (Ph.D.) 86

CPM example -1
Task ID Duration Dependency
A 7 -
B 3 -
C 6 A
D 3 B
E 3 D,F
F 2 B
G 3 C
H 2
Prepared by Simret T. (Ph.D.)
E,G 87
CPM example -1
C
3 5
6 G
A
3
7
H
B D E
8
1 2 6 7
3 3 3 2
F
2
4

Prepared by Simret T. (Ph.D.) 88

CPM example -1
Act. Duration EST EFT LST LFT TF
A 7 0 7 0 7 0
B 3 0 3 7 10 7
C 6 7 13 7 13 0
D 3 3 6 10 13 7
E 3 6 9 13 16 7
F 2 3 5 11 13 8
G 3 13 16 13 16 0
H 2 16 18 16 18 0
Prepared by Simret T. (Ph.D.) 89
CPM example -2

3
B F
4 2
A
A D 5 G 6
14
2
3 4 5
C E
3 5
4

Prepared by Simret T. (Ph.D.) 90

CPM example -2

Act. Duration EST EFT LST LFT TF

A 3 0 3 0 3 0
B 4 3 7 5 9 2
C 3 3 6 3 6 0
D 4 3 7 7 11 4
E 5 6 11 6 11 0
F 2 7 9 9 11 2
G 5 11 16 11 16 0
Prepared by Simret T. (Ph.D.) 91
Exercise
Activity Preceding Succeeding Remarks
A - B, H Start activity
B A G, J
C - H Start activity
D - E, G Start activity
E D F
F E - Last Activity
G B, D - Last Activity
H A, C J
J B, H - Last Activity
Prepared by Simret T. (Ph.D.) 92
Exercise

Prepared by Simret T. (Ph.D.) 93

Project evaluation and review technique (PERT)
• Commonly used in manufacturing industry especially in the
research and development types of programs.
• It is assumed that activities and their interdependence are
well defined though it recognizes uncertainty in the time
estimate of an activity.
• PERT incorporates uncertainties in activity durations by
requiring three durations for each activity.
• The most probable,
• The optimistic (shortest), and
• The pessimistic (longest) duration.
Prepared by Simret T. (Ph.D.) 94
PERT

• For an activity “design foundation”

• The optimistic time = 14 days
• The most likely time = 18 days and
• The pessimistic time estimates = 28 days
• The PERT technique assumes that the three time
estimates of an activity are random variables and the
frequency distribution of duration of an activity takes
the shape of Beta distribution.
Prepared by Simret T. (Ph.D.) 95
PERT Cont’d….
Expected Time, 𝑇𝑒 = 19

Prepared by Simret T. (Ph.D.) 96

PERT Cont’d….

• The average or expected time 𝑇𝑒 is given by

(To + 4Tm + Tp )
Te =
6

• For the case of ‘design foundation’, 𝑇𝑒 can be worked out to be

19 days [(14 + 4 x18 + 28)/6].
• The fact that 𝑇𝑒 > 𝑇𝑚 in this case, is a reflection of the extreme
position of 𝑇𝑝 and the asymmetry in the Beta distribution, even
though computationally the weights given to 𝑇𝑜 and 𝑇𝑝 is the
same. Prepared by Simret T. (Ph.D.) 97
PERT Cont’d….
• There has been a lot of criticism on the approach of
obtaining three ‘‘valid’’ time estimates to put into the PERT
formulas.
• It is often difficult to arrive at one activity-time estimate;
three subjective definitions of such estimates do not help
the matter (how optimistic and pessimistic should one be).
• Nevertheless, the three time estimate also provides the
advantages of ascertaining the variability or uncertainty
associated with a particular set of estimate.
Prepared by Simret T. (Ph.D.) 98
PERT Cont’d….
• For example, suppose we have two sets of estimate provided
by the different estimator for the same ‘design foundation’
activity.
• In order of (𝑡𝑒, 𝑡𝑚, 𝑡𝑝), let the first set of estimate (14, 18, 28)
and the other set of estimates be (17, 18, 25).
• There is large variability in the estimates of first estimator
compared to the second one, even though the expected or
average activity duration turns out to be 19 in both the cases
(verify!!!). Prepared by Simret T. (Ph.D.) 99
PERT Cont’d….

• In order to measure the uncertainty associated with the

estimate of duration of an activity, the standard deviation
(𝑆𝑡) and the variance 𝑉𝑡 are determined, which in PERT are
defined as:
(t p − to )
St = Vt = ( St ) 2

• The formula for 𝑆𝑡 indicates that it is one sixth of the

difference between the two extreme time estimates.
Prepared by Simret T. (Ph.D.) 100
PERT Cont’d….

• Further, the greater the uncertainty in time estimates, the

greater the value of (𝑡𝑝 − 𝑡𝑜), and the more spread out will
be the distribution curve.
• A high 𝑆𝑡 represents a high degree of uncertainty regarding
activity times.
• In other words there is a greater chance that the actual time
required to complete the activity will differ significantly from
the expected time 𝑡𝑒.
Prepared by Simret T. (Ph.D.) 101
PERT Cont’d….
• For the two sets of estimate used in ‘design activity’, the 𝑆𝑡
and 𝑉𝑡 would be 2.33 days and 5.44 respectively for first set
of estimates
• While 1.33 days and 1.77 are the corresponding values of
𝑆𝑡 and 𝑉𝑡 for the second set of estimates.
• The expected length or duration of project 𝑇𝑒 is calculated by
summing up the expected duration 𝑡𝑒’s of activities on the
critical path.
Prepared by Simret T. (Ph.D.) 102
PERT Cont’d….
• The critical path is determined following the forward pass
and backward pass explained earlier.
• The variance associated with the critical path is the sum of
variances associated with the activities on the critical path.
• In case, there is more than one critical path in a project
network, then the path with the largest variance is chosen to
determine the 𝑉𝑇 and 𝑆𝑇. Mathematically,

Te =  te , VT =  Vt and ST = vt
Prepared by Simret T. (Ph.D.) 103
PERT Cont’d….
• 𝑉𝑇 and 𝑆𝑇 represent variability in the expected project
duration.
• The higher the 𝑉𝑇 and 𝑆𝑇 values, the more likely it is that the
time required to complete the project will differ from the
expected project length 𝑇𝑒.
• As was pointed earlier, 𝑡𝑜, 𝑡𝑚, and 𝑡𝑝 are assumed to be a
random variable following Beta distribution in the PERT
technique.

Prepared by Simret T. (Ph.D.) 104

PERT Cont’d….
• Now that, 𝑡𝑒 is the weighted sum of 𝑡𝑜, 𝑡𝑚, and 𝑡𝑝, it is also
treated as a random variable.
• Since, 𝑇𝑒 is the sum of 𝑡𝑒’s it indeed is a random variable.
• The distribution of 𝑇𝑒 follows normal distribution according
to the Central Limit Theorem of statistics.
• The behavior of normal distribution is well known and
• A number of inferences can be drawn which could be useful
to a planner or a project manager.
Prepared by Simret T. (Ph.D.) 105
PERT Cont’d….

• For example, it is possible to compute the probability (index)

of whether a project (or a key stage therein) will be
completed on or before their schedule date(s).
• Of course, all this is possible under the assumption that the
activities of the projects are statistically independent of each
other.

Prepared by Simret T. (Ph.D.) 106

PERT Cont’d….
• Suppose, it is required to compute the probability of completing
the project within a target duration of 𝑇𝐷 days.
• Now given the 𝑇𝑒 of the project it is possible to calculate the
deviation of 𝑇𝐷 from 𝑇𝑒 in units of standard deviation.
• This is calculated from the normal distribution table. To adopt
the table, a ratio called the standardised deviation or more often
(TD − Te )
the normal deviate, 𝑍, is derived. Z =
S T

• 𝑍 is defined as the ratio of the difference in 𝑇𝐷 and 𝑇𝑒 to 𝑆𝑇.

Mathematically,
Prepared by Simret T. (Ph.D.) 107
Example: PERT Diagram

E (5,14, 17)
30 50
13
B (2,5,14) H(1, 4,7)
2 F (2,5,14) 2
6 D (1,2,3) 6

A A (3,12,21) 60
C (6, 15, 30) G (4, 5, 12)
10 20 40
4
12 16 6

Prepared by Simret T. (Ph.D.) 108

 Example: PERT Diagram
Duration (days) Expected duration Standard Variance Vt =
Activity Id Optimistic Most likely Pessimistic (days) te= deviation St = (tp- (St)2
duration to duration tm duration tp (to+4tm+tp)/6 to)/6

Col 1 Col 2 Col 3 Col 4 Col 5 Col6 Col 7

10-20 3 12 21 12 3 9
20-30 2 5 14 6 2 4
20-40 6 15 30 16 4 16
30-40 1 2 3 2 1/3 1/9
30-50 5 14 17 13 2 4
40-50 2 5 14 6 2 4
40-60 4 5 12 6 4/3 16/9
50-60 1 4 7 2 1 1
Prepared by Simret T. (Ph.D.) 109
Computation of early occurrence and late occurrence times
Node Early occurrence time Late occurrence time Slack

10 0 12-12=0 0
20 0+12=12 Min of [(21-6)=15 and (28 -16)=12]=12 0
30 12+6=18 Min of [(34-13)=21 and (28 -2)=26]=21 3
40 Max of [(12+16)=28 and Min of [(36-6)=30 and (34 -6)=28]=28 0
(18+2)=20]=28
50 Max of [(18+13)=31 and 36-2=34 0
(28+6)=34]=34
60 Max of [(34+2)=36 and 36 0
(28+6)=34]=36
Prepared by Simret T. (Ph.D.) 110
PERT Cont’d….
• Now, the problem of computing the probability of meeting
target duration (𝑇𝐷), such as 42 days shown in the figure is
quite simple.
• Since the total area under the normal curve is exactly one,
the cross hatched area under the normal curve is directly the
probability that the actual completion time, will be equal to,
or less than, 42 days.
• In this case 𝑍 = (𝑇𝐷 − 𝑇𝐸)/ 𝑆𝑇, = (42-36)/ 5.48 = 1.09
standard deviations. Prepared by Simret T. (Ph.D.) 111
PERT Cont’d….

• In other words, the target duration 𝑇𝐷 is 1.09 standard

deviations greater than the expected time 𝑇𝑒=36 days.
• The equivalent probability 𝑃(𝑍 = 1.09) can be read off a
normal probability distribution.
• This corresponds to a probability of 0.862 (86.2%) which
implies that there is a 86.2% chance that the project will get
completed within 42 days.

Prepared by Simret T. (Ph.D.) 112

PERT Cont’d….

Prepared by Simret T. (Ph.D.) 113

PERT Cont’d….

1.09 Standard Deviations

P(t  42 days)
= 82.6%

36 42

Time - days
Prepared by Simret T. (Ph.D.) 114
PERT Cont’d….

0 Standard Deviations

P(t  36 days)
= 50%

36
36
Time - days
Prepared by Simret T. (Ph.D.) 115
PERT Cont’d….

0.55 Standard Deviations

P(t  33 days)
= 29.1%

33 36

Time - days
Prepared by Simret T. (Ph.D.) 116
PERT Cont’d….
• Assuming that time now is zero, one may expect this project to
end at time 36 days (corresponding probability of achieving
this target being 50%, verify!!! Hint: 𝑇𝐷=36,𝑇𝑒=36 ); and the
probability that it will end on or before the target duration of
42, without expediting the project is approximately 86.2%.
• On the other hand, if one were to schedule towards 𝑇𝐷= 33
days; herein 𝑇𝐷 < 𝑇𝐸; i.e. 𝑍=-0.55 (Note the negative sign);
the corresponding probability would be 0.291, which is really a
very bleak situation.
Prepared by Simret T. (Ph.D.) 117
 PERT Cont’d….
• In the above, the phrase ‘without expediting’ is very important.
• In certain projects schedules always may be met by some
means or another, for example,
✓ by changing the schedule,
✓ by changing the project requirement,
✓ by adding further personnel or facilities, etc.
• However, here it is implied that the probability being
computed hereinabove is the one that the original schedule
will be met without having to expedite the work in some way
or another. Prepared by Simret T. (Ph.D.) 118
PERT Cont’d….

• The feature in PERT on the computation of probability of

completing the project in a particular duration is quite useful
especially for negotiating the duration with an owner by the
executing agency.
• For example, while agreeing on a particular duration, the
executing agency would like to judge his chances on
completing the project in that duration.

Prepared by Simret T. (Ph.D.) 119

PERT Cont’d….
• For being reasonably sure of a particular duration, he would
like to attain a probability of more than 95 %.
• Thus for the same example, suppose the executing agency is
asked to provide the projected duration for the project, the
agency would find out the duration corresponding to 𝑍(𝑃 =
0.95) = 1.65, thus the target duration for this case could be
𝑇𝐷 = 𝑇𝐸 + 1.65 𝑥 𝑆𝑇 = 36 + 1.65 𝑥 5.48= approximately
45 days.
• In other words, the executing agency would be quite confident
of completing the project in 45 days.
Prepared by Simret T. (Ph.D.) 120
PRECEDENCE NETWORK

Prepared by Simret T. (Ph.D.) 121

Precedence network
• Resembles an AON diagram with activities on nodes or boxes
and precedence relationship shown as arrow. But precedence
network without arrows is also possible
• Numbering of activity also follows rules similar to that followed
in PERT and CPM
• Time estimate for the activity could be one time estimate or
three time estimate
• But the three time estimate needs to be converted into single
time before using in the network
Precedence network Cont’d…
• Many variants of the boxes or nodes in a precedence
network are possible based on information the user desires.
• For illustration, a typical box used for all the preceding
examples:
• Has been divided into three horizontal parts, top,
middle and bottom.
• Top & bottom are again divided vertically into three
compartments, left, center and right.
• Sample network diagram given in the following slide.
Precedence network Cont’d…
• Top left compartment – • Middle right – node number
earliest start time
• Bottom left compartment –
• Top center compartment latest start time
– activity duration
• Bottom center compartment
• Top right compartment – – total float
earliest finish time
• Bottom right compartment –
• Middle left portion – latest finish time
activity description
Precedence network Cont’d…
• Common type of relationship used in CPM, PERT & Ladder
diagrams
• FS – Finish to Start relationship
• In reality, other relationships are possible, i.e.
• SS – Start to Start
• SF – Start to Finish
• FF – Finish to Finish
• Precedence networks incorporates the mentioned four types of
relationships
 FS – Finish to Start relationship
• Task ‘B’ can’t start unless • Case ‘a’:
Task ‘A’ is completed
✓ There is no lead or lag
• For (e.g.) consider a project
✓ Plaster commences after
with two tasks
complete laying of bricks
✓ Task 1 – Laying bricks
✓ Task 2 – Plastering
12 5 17 17 15 32
• Plastering can’t start until FS=0
Laying Bricks Plastering
laying bricks is complete 17 0 32
12 0 17
(common dependency)
 FS – Finish to Start relationship

• Case ‘b’:
12 5 17 24 15 39
✓ There is a lead of 7 days FS=7
Laying Bricks Plastering
✓ Plaster commences 7 24 0 39
12 0 17
days after laying bricks
• Case ‘c’:
✓There is a lag of 5 days
✓Plaster commences 5 12 5 17 12 15 27
FS=-5
days before completion Laying Bricks Plastering
of laying bricks 12 0 27
12 0 17
FS – Finish to Start relationship Cont’d…
• Lead – Lag factors portrayed in two ways:
✓ Lead-lag factors shown on arrow joining the two boxes.
✓ Introduction of ‘pseudo activity’ between the two activities.
• Pseudo activity method similar to the ‘Dummy‘ one adopted in
CPM, PERT
• But this method results in a lengthy network and increases the
computational efforts.

128
FS – Finish to Start relationship (pseudo activity)

• Case ‘b’:
▪ Lead of 7 days described as a pseudo activity

12 5 17 17 7 24 24 15 39
FS=0 FS=0
Laying Bricks Pseudo activity Plastering
12 0 17 17 0 24 24 0 39

129
FF – Finish to Finish relationship
• Task ‘B’ can’t finish unless Task ‘A’ finishes
• For example, consider a project with two tasks
✓ Task 1 – Add wiring
✓ Task 2 – Inspect electrical work
• “Inspect electrical work" can't finish until "Add wiring" finishes
• Lead-Lag factors shown on the arrow
10 5 15 19 3 22
FF=7
Add wring Inspect EW
10 0 15 19 0 22
Prepared by Simret T. (Ph.D.) 130
FF – Finish to Finish relationship (cont’d…)

• Represented using a pseudo activity

10 5 15 15 4 19 19 3 22
Add wring Pseudo activity Inspect EW
10 0 15 15 0 19 19 0 22

Prepared by Simret T. (Ph.D.) 131

SS – Start to Start relationship
▪ Task ‘B’ can’t start unless Task ‘A’ start
▪ For (e.g.) consider a project with two tasks
• Task 1 – Pour foundation
• Task 2 – Level concrete
• “Level concrete" can't begin until "Pour foundation" begins
▪ Lead-Lag factors shown on the arrow

10 5 15 13 4 17
SS=3
PF LC
10 0 15 13 0 17
Prepared by Simret T. (Ph.D.) 132
SS – Start to Start relationship (cont’d…)
▪ Represented using two activities- preceding activity in two
components and then the successor.
▪ Disadvantage would be the additional list of activities and a lengthy
network. Similar to approach used in PERT/CPM in order to
accommodate such type of relationships

10 3 13 13 2 15
PF LC
10 0 13 13 0 15

13 2 15 15 2 17
PF LC
13 0 15
Prepared by Simret T. (Ph.D.) 15 0 17 133
SF – Start to Finish relationship
▪ Task ‘B’ can’t finish unless Task ‘A’ start
▪ SF dependency can be created between the task we want to schedule
just in time (the predecessor) and its related task (the successor)
▪ If successor task updated also, it won't affect the scheduled dates of
the predecessor task.
▪ Can be used for just-in-time scheduling up to a milestone or the
project finish date to minimize the risk of a task finishing late if its
dependent tasks slip
▪ SF not commonly used in precedence networks, but included here to
have a complete discussion Prepared by Simret T. (Ph.D.) 134
SF – Start to Finish relationship (contd.)
▪ The two ways of representing the SF activity are as
follows:
10 4 14 15 3 18
SF=8
A B
10 0 14 15 0 18

10 4 14 14 1 15 ` 3 18
A Pseudo activity B
10 0 14 14 0 15 15 0 18
Prepared by Simret T. (Ph.D.) 135
Dual relationship in precedence network
• More than one type of relationships has been assigned between
two activities in the given network, which is an additional
advantage of precedence network
SS =7

12 5 17 19 15 34
PCC C Raft
12 0 17 19 0 34

FF =1
Prepared by Simret T. (Ph.D.) 136
Important Points
• Determination of critical path is not that simple as compared to
network techniques such as PERT and CPM.
• The process is identical if only FS relationship is used in the
network.
• If the activities have SS, FF, and SF relationship in the network,
then determining critical path becomes difficult especially if
manual computations are performed.

Prepared by Simret T. (Ph.D.) 137

Important Points

• Further, in precedence network, the activities on critical path

may not be connected clearly in a sequence.
• Also, the total slack definition adopted (LS-ES or LF-EF) for
networks such as PERT/CPM may or may not give same values.
• Whenever an activity is interrupted and the period of
interruption differs in the early and late start schedules, the two
methods of calculating total slack will yield different results

Prepared by Simret T. (Ph.D.) 138

Example
SS = 4
2 5

FS = 0 7 12 FF = 8
SS = 7
FF = 5

FS = 1 FS = 3 SS = 5 SS = 3
1 3 7 8 9

11 6 5 8
8 FS = 2
FF = 4
FS = 0
4 6
FS = 4
10 4

Prepared by Simret T. (Ph.D.) 139

Prepared by Simret T. (Ph.D.) 140
Node Duration EST Remarks EFT Remarks

1 8 0 0,Start Activity 8 EFT1 = EST1 + dur1

EST1 = 0 =0+8=0
2 7 8 EST2 = EFT1 + FS1-2 15 EFT2 = EST2 + dur2
=8+0=8 = 8 + 7 = 15
4 10 10 EST4 = EFT1 + FS1-4 20 EFT4 = EST4 + dur4
= 8 + 2 = 10 = 10 + 10 = 20

3 11 13 EST3 = EFT1 + FS1-3 24 EFT3 = EST3+ dur3

(Max of 9,13) =8+1=9 = 13 + 11 = 24
EST3= EFT4 + FF3-4-dur3
=20 + 4-11=13
Prepared by Simret T. (Ph.D.) 141
Node Duration ESTi Remarks EFT Remarks

5 12 20 EST5 = EST4 + SS2-5 32 EFT5 = EST5 + dur5

(Max of 12, = 8 + 4 = 12 = 20 + 12 = 32
20,17) EST5= EST3 + SS3-5
=13 + 7=20
EST5= EFT3 + FF3-5-dur5
=24 + 5-12=17
6 4 24 EST6 = EFT4 + FS4-6 28 EFT6 = EST6 + dur6
= 20 + 4 = 24 = 24 + 4 = 28

Prepared by Simret T. (Ph.D.) 142

Node Duration EST Remarks EFT Remarks

7 6 34 EST6 = EFT3 + FS3-7 40 EFT7 = EST7+ dur7

Max of = 24 + 3 = 27 = 34 + 6 = 40
(27,34) EST6= EFT5 + FF5-7-dur7
=32 + 8-6=34
8 5 39 EST8 = EFT6 + FS6-8 44 EFT8 = EST8 + dur8
Max of = 28 + 0 = 28 = 39 + 5 = 44
(28, 39)
EST8= EST7 + SS7-8
=34 +5 = 39
9 8 42 EST9= EST8 + SS8-9 50 EFT9 = EST9 + dur9
=39 +3 = 42 = 42 + 8 = 50
Prepared by Simret T. (Ph.D.) 143
Prepared by Simret T. (Ph.D.) 144
Node Duration LFT Remarks LST Remarks

9 8 50 42 50-8

8 5 44 LFT8=LST9-SS8-9 + dur8 39 44-5 =39

=42 -3 +5 = 44
7 6 40 LFT7=LST8-SS7-8 + dur7 34 40-6= 34
=39 -5 +6 = 40

6 4 39 LFT6=LST8-FS6-8 35 39-4 =35

=39-0 =39
5 12 32 LFT5=LFT7-FF5-7 20 32-12 =20
=40-8 =32
Prepared by Simret T. (Ph.D.) 145
Node Duration LFT Remarks LST Remarks

3 11 24 LFT3=LST5-SS3-5 + dur3 13 24-11=13

Min (24, =20-7+11 = 24
27, 31) LFT3=LFT5-FF3-5
= 32 – 6 = 27
LFT3=LST7-FS3-7
=34-3 =31
4 10 20 LFT4=LFT3-FF3-4 10 20-10= 10
Min = 24 – 4 = 20
(20,31) LFT4=LST6-FS4-6
=35-4 =31
Prepared by Simret T. (Ph.D.) 146
Node Duration LFT Remarks LST Remarks

2 7 23 LFT2=LST5-SS2-5 + 16 23-7=16
dur2
=20-4+7 = 23
1 8 8 LFT1=LST2-FS1-2 0 8-8 = 0
Min =16-0 =16
(16,12,8) LFT1=LST3-FS1-3
=13-1 =12
LFT1=LST4-FS1-4
=10-2 =8

Prepared by Simret T. (Ph.D.) 147

Prepared by Simret T. (Ph.D.) 148
Prepared by Simret T. (Ph.D.) 149
Ladder Network
• A ladder network is more or less an extension of the arrow
network.
• useful in cases where a repetitive works, such as piping jobs,
railways electrification, and construction of storm water drains,
or roads.
• In such projects, the number of activities is small, but each
activity is repeated several times.
• The completed network looks almost like a ladder, and hence the
name of this network.
Prepared by Simret T. (Ph.D.) 150
Ladder Network Cont’d…
• An illustrative example of a ladder network is given in Figure
below, which has been drawn for a project of construction of
retaining wall having the activities: earthwork (EW), concrete raft
(CR), concrete wall (CW), and fencing (FE).
• Let the length of the retaining wall is 500 m and it is desired to
divide it in a stretch of 100 m thus a total of five stretches.
• Let the activities be named as EW1, EW2, EW3, EW4, and EW5
for earthwork activity in stretch 1, 2, 3, 4, and 5 respectively.
Prepared by Simret T. (Ph.D.) 151
Ladder Network Cont’d…
• Similarly, let the activities CC1 to CC5, CR1 to CR5, CW1 to CW5,
and FE1 to FE5 represent plain cement concrete in the base of
wall, concrete raft, concrete wall, and fencing activities in stretch
1 to 5 respectively.
• Further, assume that each stretch of wall takes 2 days for
earthwork, 1 day for cement concrete, 7 days for concrete raft,
10 days for concrete wall, and 2 days for fencing.
• There is 1 day of delay between earthwork and cement concrete
activity, 1 day of delay between cement concrete and concrete
raft, 7 days of delay in concrete raft and concrete wall, and 7 days
of delay in concrete wall activity and fencing activity.
Prepared by Simret T. (Ph.D.) 152
Prepared by Simret T. (Ph.D.) 153
 Obtained by forward operation

Float=42-10=40-80
For example. The other also don
e by the similar manner

Back ward operaton

Prepared by Simret T. (Ph.D.) 154

Prepared by Simret T. (Ph.D.) 155
Ladder Network Cont’d…
Remarks
• The ladder network is simple to draw and understand especially
for projects of repetitive types.
• It is possible to separate out the activities belonging to one type
of work.
• One major limitation with the ladder network, however, is the
difficulty in identifying the activities on critical path.

Prepared by Simret T. (Ph.D.) 156

The line-of-balance (LOB)
• The LOB technique was originated by the Goodyear Company in
the early 1940's and was developed by the U.S. Navy in the early
1950's for the programming and control of both repetitive and
non-repetitive projects (Turban 1968, Johnston 1981, Lutz and
Halpin 1992).
• It was first applied to industrial manufacturing and production
control. The basic concepts of LOB have been applied in the
construction industry as a planning and scheduling method
(Lumsden 1968, Khisty 1970).
• The LOB technique is based on the underlying assumption that
the rate of production for an activity is uniform.
• In other words, the rate ofPrepared
production
by Simret T. (Ph.D.)
of an activity is linear. 157
LOB
• In LOB, the time is usually plotted on horizontal axis, and units or stages
of an activity on the vertical axis.
• The production rate of an activity is the slope of the production line and
is expressed in terms of units per time.
• The method uses man-hour estimate and the optimum crew or gang
size.
• The LOB diagram can be plotted once the man hour estimates and
optimum size of crew are determined by the planner based on his or her
experience or in consultation with the implementing agencies such as
vendor or subcontractor.
Prepared by Simret T. (Ph.D.) 158
LOB Cont’d….
• Two oblique and parallel lines, whose slope is equal to the actual
rate of output will denote the start and finish times respectively
of each activity in all the units from the first to last.
• This technique can be applied to construction projects for
repetitive unit projects such as mass housing, high rise buildings,
tunnels, etc.
• A typical LOB diagram is shown in the Fig__ for housing
construction.
Prepared by Simret T. (Ph.D.) 159
LOB Example
• Consider an example to illustrate the construction of LOB for
scheduling of a housing project, where 10 houses are to be
constructed.
• For simplicity let’s assume that substructure, superstructure, and
finishing are the only three activities involved in the construction
of a house.
• Further, let’s assume that substructure, superstructure, and
finishing take 10, 20, and 15 days, respectively, for a single
house.
Prepared by Simret T. (Ph.D.) 160
LOB Example
• To provide for the margin of error in the time taken to complete each
of these operations, the time buffer is usually placed in between the
two activities.
• Let’s assume the buffers in this case to be of 5 days. Thus the
construction of a single house needs 55 days to complete (10 + 5 + 20
+ 5 + 15 = 55).
• That is the first house is completed in all respect on 55th day from
start. It is further assumed that now onwards every 5th day one
house is to be completed i.e. second house on 60th day from start,
third house on 65th day and so on and the last house or 10th house
gets completed on 100th day.
Prepared by Simret T. (Ph.D.) 161
LOB Example Cont’d…
• This is called the rate of construction, thus rate of construction
here is one house every 5 days.
• This rate is represented diagrammatically, for all the three
activities where completion dates is drawn for each of the 10
houses. Thus, the substructure, superstructure and finishes of all
houses are joined by sloping lines.
• These form a series of bands which are the LOB schedules, for
each activity.
• It can be seen that in this case, all the sloping lines are parallel to
the handover line. Each activity is proceeding at the rate of 1
house per week at the same rate as the handover schedule.
Prepared by Simret T. (Ph.D.) 162
LOB Example Cont’d…

Prepared by Simret T. (Ph.D.) 163

LOB Example Cont’d…
• Buffer: In practice, each time buffer would probably be different.
• The construction manager selects the buffer according to his own
experience and his own forecast of the risk or difficulties in delays
that may occur.
• For example, if in a particular locality, carpenters are known to be in
short supply, longer buffers would be inserted after activities
involving carpenters. Conversely, only very small buffers may be
required when little difficulty is expected in reaching planned gang
size and output.
• The crew size is determined in such a way that production rate of all
the activities become more or less uniform.
Prepared by Simret T. (Ph.D.) 164
Drawing LOB
• Construction of network logic diagram for one segment
• As a first step, usually a logic or network diagram for one of the many
units to be produced is prepared and incorporated into the LOB
schedule.
• The logic diagram for one segment of retaining wall is as given below.
• The notations and durations of activities are assumed to be the same
as for the previous illustrations.
EW1 CC1 CR1 CW1 FE1

2 B=1 1 B=2 7 B=3 10 B=4 2

Prepared by Simret T. (Ph.D.) 165

Drawing LOB
• The estimation of duration is dependent on the quantity of each
of the activities and the associated crew.
• The quantities involved and the number of workers assumed is
shown for all the activities associated with the construction of
retaining wall in the following table.
• It is assumed that there will be work for 12 hours each day. It is
also assumed that the formwork, reinforcement and concreting
would be done by the same set of workers.

Prepared by Simret T. (Ph.D.) 166

Activity Quantity for one Productivity Man Hours No. of Theoretical Duration (t)
segment assumed per activity workers duration (days) days taken for
C=a*b assumed LOB
a b d e=c/(13*12) schedule
f
Earthwork 100 cum 3 MH / cum 300 13 1.92 2
PCC 8 cum 20 MH/cum 160 13 1.03 1
Concrete Raft 70 sqm 4 MH/sqm 880 11 6.67 7
formwork
2 MT 60 MH/MT
reinforcement
24 cum concrete 20 MH/cum

Concrete wall 500 sqm 4 MH/sqm 3515 30 9.76 10

Formwork
4.4MT 60 MH/MT
reinforcement
62.5 cum 20 MH/cum
concrete Prepared by Simret T. (Ph.D.) 167
Buffer estimation and ‘start’ and ‘end’ buffer
identification
• The buffers are estimated in such a manner that crew of one
activity does not interfere with the crew of other activity.
• The buffers B for this illustration have been estimated and shown
under the dotted arrows. For example B=1 means a buffer of one
day between the earthwork and plain cement concrete activities.
• It would be pertinent here to distinguish between a start and end
buffer.
• In case the rate of construction (speed) of the following activity is
faster than the activity under consideration buffer is kept at the
end. Prepared by Simret T. (Ph.D.) 168
Buffer estimation and ‘start’ and ‘end’ buffer identification
• Conversely, if the rate of production of following activity is slower
than the activity under consideration then the buffer is placed at
the start.
• For example, completion of earthwork is achieved in 2 days while
the completion of plain cement concrete is achieved in 1 day
itself.
• Naturally the speed of the later activity is faster than the former.
Thus in order to avoid the interference of the later crews with
the crews of earthwork activity, it is desired to have the end
buffer. Prepared by Simret T. (Ph.D.) 169
Buffer estimation and ‘start’ and ‘end’ buffer
identification
• Now considering the case of plain cement concrete and
concrete raft it is clear that the speed in the later is slow
(concrete raft is taking 7 days to complete) thus requiring a
start buffer.
• Using the concept of start and end buffer the start and finish
of first segment and the fifth segment are computed for each
of the activities involved with the construction of retaining
wall.
Prepared by Simret T. (Ph.D.) 170
 Duratio Time (T) Buffer Type of Start day of Start day of
Activity n (t) (n-1) Days buffer wall 1 wall 5
days walls

Earthwork 2 8 1 End 0 0+8=8

PCC 1 4 2 Start 11– 4=7 0+2+8+1= 11

Concrete 7 28 2 Start 7+1+2= 10 10+28=38

Raft

Concrete 10 40 3 End 10+7+2=19 19+40=59

wall

Fencing 2 8 59+10+3- 64+8=72

8=64
Prepared by Simret T. (Ph.D.) 171
LOB Schedule for construction of retaining wall

LOB

3
Walls

0
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
Days
Prepared by Simret T. (Ph.D.) 172
Adjusting the schedule of the LOB
• It can be noted from Fig that the rate of construction of different
activities are not uniform.
• In other words, these are not ‘balanced’ thus some improvement is
desirable.
• In order to bring about a more ‘balanced’ schedule a number of steps
can be taken.
• For example, the crew size can be adjusted since we can neither
make changes in the quantity nor in the assumed productivity.
• From the above figure it can be seen that we can reduce the speed of
plain cement concrete activity by reducing the number of crew.
Prepared by Simret T. (Ph.D.) 173
Adjusting the schedule of the LOB
• Also, we can try to increase the speed of the activities ‘concrete
raft’ and ‘concrete wall’. This can be achieved by increasing the
speed of construction of these activities by increasing the
number of crews.
• It is also possible to achieve a parallel scheduling by decreasing
the speed of plain cement concrete activity and increasing the
speed of concrete raft and concrete wall activities to 2 days per
segment, and thereby reducing the overall duration for the
construction.
Prepared by Simret T. (Ph.D.) 174
Adjusting the schedule of the LOB
• The ideal situation would be to aim for ‘parallel scheduling’ as
shown in Fig for housing construction example wherein the rate
of construction of each of the activities is same.
• However, such reduction in duration should be checked for its
technological feasibility as well as its cost saving potential.
• For example if it is found that the extra cost incurred in
increasing the crew size and thereby reducing the overall
duration has more cost associated with it than the saving it
generates by decrease in indirect cost, there is no point in such
reduction in duration.
Prepared by Simret T. (Ph.D.) 175
Adjusting the schedule of the LOB
• Thus there could be many possible schedules and the choice of a
particular schedule will be dependent on the decision maker and
the situation prevailing at that time.
• Needless to say the computations for start and finish times of
some of the activities may undergo change.
• The revised computations for start and finish times after
adjusting the crew size is shown in Table___.

Prepared by Simret T. (Ph.D.) 176

Revised computations of line of balance schedule for the
construction of retaining wall
Duration Time Buffer Type of Start day of Start day of
Activity (t) days (T) Days buffer wall 1 wall 5
(n-1)
walls
Earthwork 2 8 1 End 0 0+8=8
PCC 2 8 2 Start 0+2+8+1– 0+2+8+1=
8=3 11
Concrete 2 8 2 Start 3+2+2= 7 7+8=15
Raft
Concrete 3 9 4 End 7+2+2=11 11+9=20
wall
Fencing 2 8 20+3+4-8=19 19+8=27
Prepared by Simret T. (Ph.D.) 177
Revised line of balance schedule for the
construction of retaining wall
LOB

3
Walls

0
0 4 8 12 16 20 24 28 32
Days
Prepared by Simret T. (Ph.D.) 178
Adjusting the schedule of the LOB

• The overall completion time is now 29 days as against 74 days.

Please also note that the buffer between the activities concrete
wall and fencing has now been changed to 4 days from previous
buffer of 3 days.
• The revised LOB schedule based on these computations for our
retaining wall example is shown in Fig__. As explained earlier,
there could be further improvements possible.

Prepared by Simret T. (Ph.D.) 179

Some of the challenges associated with LOB scheduling
identified by Arditi et al. (2002)
• Developing an algorithm that handles project acceleration efficiently and
accurately,
• Recognizing time and space dependencies,
• Calculating LOB quantities,
• Dealing with resource and milestone constraints,
• Incorporating the occasional nonlinear and discrete activities,
• Defining a radically new concept of criticalness,
• Including the effect of the learning curve,
• Developing an optimal strategy to reduce project duration by increasing
the rate of production of selected activities,
• Performing cost optimization, and
• Improving the visual presentation of LOB diagrams.
Prepared by Simret T. (Ph.D.) 180
Prepared by Simret T. (Ph.D.) 181
Resource scheduling
• The problem of scheduling activities so that none of the
precedence relationships are violated and none of
the resource availabilities are exceeded is a difficult
task and it could result into a number of combinations of
possible early start and late start schedules.
• In literature, scheduling problems with limited resources is
classified as a large combinatorial problem.

Prepared by Simret T. (Ph.D.) 182

Resource scheduling
• A number of programs based on some rules of thumb (also
called heuristic) have been developed to solve such
problems.
• These heuristic programs for resource scheduling can
broadly be classified under two categories:
1. Resource leveling and
2. Resource allocation

Prepared by Simret T. (Ph.D.) 183

Resource leveling
• In resource leveling, the constraint is the fixed project
duration.
• That is the project must get completed by a fixed date.
• The attempt of such heuristic is to of
resources and to period to period assignments.
• Such problems are also referred to as ‘time limited resource
considerations’ problems.
• The assessment of resources is done using resource loading
or resource aggregation chart.
Prepared by Simret T. (Ph.D.) 184
Example to illustrate the concept of resource leveling.

B(3) F (3)
4 2

A
A (2) D (4) 5 G (4) 6
1 2
4
3 4 5
C (4) E (3)
3 5
4

Prepared by Simret T. (Ph.D.) 185

 3 4 7 7 2 9
B F

5 2 9 9 2 11

0 3 3
3 4 7 11 5 16
A G
D
0 0 3 11 0 16
7 4 11

3 3 6 6 5 11
C E
3 0 6 6 0 11
Prepared by Simret T. (Ph.D.) 186
Resource leveling Cont’d…

• Let’s assume that there are a total of 7 activities A to G in the

example network.
• The duration of each of the activities are written below the
arrow while the resource requirement of the activities is
shown in the bracket adjacent to the activity name.
• For example, the duration for activity A is 3 days while the
resource required by this activity is 2 units.

Prepared by Simret T. (Ph.D.) 187

Resource leveling Cont’d…
• The early start and late start time of events or nodes are also
shown in the network from which the float available in a
particular activity can be calculated thus critical activities can be
identified.
• The critical path of the network is 1-2-4-5-6 and it consists of
activities A, C, E, and G. The critical path is shown by bold arrows
in the network.
• The project network is prepared based on the data provided for
each activity. Event times and activity times are computed as
illustrated earlier thus total float is also computed for each of the
activities. Prepared by Simret T. (Ph.D.) 188
Resource leveling Cont’d…
• The list of activities are ranked in order of their earliest start date
(refer Table below).
• The resources required on daily basis for each of the activities
are summed up and shown in the form of a chart called resource
aggregation or resource loading chart.
• Fig below shows resource loading chart based on the earliest
start time of all the activities. The project takes a total of 87 man
days to complete and the daily requirement varies from a
minimum of 2 resources on days 1 to 3 to a maximum of 11
resources on days 4, 5, andPrepared
6. by Simret T. (Ph.D.) 189
 Table - Resource loading table showing daily requirement of workers
based on early start order

EST t Res. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Act.

1-2 0 3 2 2 2 2
2-4 3 3 4 4 4 4
2-3 3 4 3 3 3 3 3
2-5 3 4 4 4 4 4 4
4-5 6 5 3 3 3 3 3 3
3-5 7 2 3 3 3
5-6 11 5 4 4 4 4 4 4
Total 2 2 2 11 11 11 10 6 6 3 3 4 4 4 4 4
Prepared by Simret T. (Ph.D.) 190
Resource aggregation or resource loading chart based on
‘Early start’.

Prepared by Simret T. (Ph.D.) 191

Resource leveling Cont’d…
• Now the activities are ranked in order of their latest start date
(refer Table below).
• It may be noted that the latest start date of an activity is the
latest time of the finish event less the duration.
• Thus latest start times of activities 1-2, 2-4, 2-3, 4-5, 2-5, 3-5, and
5-6 are on days 0, 3, 5, 6, 7, 9 and 11 respectively in the
ascending order.
• The resource loading chart shown in Fig below is prepared based
on the ascending order of latest start time of each activity. It can
be noticed that the requirement of resources varies from a
minimum of 2 to a maximum of 10 resources.
Prepared by Simret T. (Ph.D.) 192
 Table _ Resource loading table showing daily requirement of
workers based on late start order
LST T Res 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Act.

1-2 0 3 2 22 2
2-4 3 3 4 4 4 4
2-3 6 4 3 3 3 3 3
4-5 6 5 3 3 3 3 3 3
2-5 7 4 4 4 4 4 4
3-5 9 2 3 3 3
5-6 11 5 4 4 4 4 4 4
Total 2 2 2 4 4 Prepared
7 by6Simret T. (Ph.D.)
10 10 10 10 4 4 4 4193 4
Resource aggregation or resource loading chart based
on late start.

Prepared by Simret T. (Ph.D.) 194

Steps in Resource leveling Cont’d…
• The two resource loading charts obtained from steps 2 and 3 are
compared.
• The two charts provide the two extreme arrangements of
resource requirements.
• In the case that peaks and valleys are seen in the utilization
pattern for a resource, the activities are manipulated by visual
inspection and an acceptable resource requirement is found
between the two extremes.
• The bottom line is to ensure continuous deployment of resources
and to avoid large variations in the utilization pattern.
Prepared by Simret T. (Ph.D.) 195
Steps in Resource leveling Cont’d…
• One such compromise solution is shown in Fig below (also refer
Table below).
• This figure has been obtained by delaying activity 2-5 to 3 days
beyond its early start time and leaving the rest of activities intact
as given in Table below.
• It has resulted in reducing the peak requirement (from 11 to 10)
besides bringing a gradual change in resource requirement.

Prepared by Simret T. (Ph.D.) 196

 Table _ Resource loading table showing daily requirement of workers
after leveling
t Res. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
ACT.

1-2 3 2 2 2 2
2-4 3 4 4 4 4
2-3 4 3 3 3 3 3
4-5 5 3 3 3 3 3 3
2-5 4 4 4 4 4 4
3-5 2 3 3 3
5-6 5 4 4 4 4 4 4
Total 2 2 2 4 4Prepared
7 by Simret
10 T. (Ph.D.)
10 10 10 6 4 4 4 4197 4
Resource leveled chart

12

10 Act 5-6
Act 3-5
8
Act 2-5
6 Act 4-5
Act 2-3
4
Act 2-4
2 Act 1-2

0
1 3 5 7 9 11 13 15
Prepared by Simret T. (Ph.D.) 198
Discussion
• As can be understood from this example, it would be extremely
difficult to employ this technique of visual examination for large
problems.
• Also, for simple problem though the leveling exercise can be
completed in one attempt, however for larger problems the resource
leveling cannot be carried out in a single step, and is a largely iterative
process.
• Computers can be employed to a good advantage for leveling of
resources under time constrained situation. A number of heuristics
have been developed for this purpose.
Prepared by Simret T. (Ph.D.) 199
Prepared by Simret T. (Ph.D.) 200
Resource allocation
• Here availability of resources is a constraint. In other words, the
resources have fixed limits.
• For illustrating resource allocation, we take the same problem
(Project network of) which was used for illustrating resource
leveling.
• The difference here, however, is resource constraint. Let’s take
the maximum availability of resources be 8.
• In case it is not possible to resolve the resource over-allocation
on a particular day, some activities may have to be delayed.
Prepared by Simret T. (Ph.D.) 201
Resource allocation Cont’d…
• The basic objective here is to find out which activities can be
delayed and by how much and finally to arrive at the
shortest possible time to complete the project satisfying the
resource constraints.
• When the resource requirement on a particular day exceeds
8 we decide the priority of competing activities on a
predefined set of rules.

Prepared by Simret T. (Ph.D.) 202

Resource allocation Cont’d…
• Let the activities with earliest start time gets the first priority.
• In case, there is a tie between two or more activities, the
priorities are decided on the basis of float available in the
activities. That is the activity with the minimum float gets
first priority.
• Further, non critical activities may need to be rescheduled in
order to free the resources for critical activities. Also, let’s
not stop an activity in between, once it has started.
Prepared by Simret T. (Ph.D.) 203
The network of Fig redrawn to the time scale
3

1 2 4 5 66

Prepared by Simret T. (Ph.D.) 204

 Day 1
▪ Only activity 1-2 is scheduled for day 1 and only 2 resources are
required which is less than the maximum.
▪ Thus: on day 1, requirement – 2, availability – 8, remaining – 6.

Prepared by Simret T. (Ph.D.) 205

Day 2 and 3
▪ Activity 1-2 continues. Requirement – 2, availability – 8, remaining
–6

Prepared by Simret T. (Ph.D.) 206

Day 4
• The three activities 2-3, 2-4, and 2-5 can be started on day 4.
• Thus resource requirement would become 3 + 4 + 4 = 11, which
is more than 8, the maximum limit.
• The decision rule ‘activity with least float gets priority’ for
resource assignment comes into play here.
• Activity 2- 4 lies on the critical path i.e. float =0 and hence
resources need to be allocated to it first.
• The activity 2- 4 requires 4 unit of resources, availability is 8, thus
resources remaining after assigning to 2-4 is 4 (8-4).

Prepared by Simret T. (Ph.D.) 207

Day 4

• Next in queue is activity 2-3 with float = 2 days. Thus resources

are assigned to 2-3. The resource requirement of this activity is 3,
while now the availability is 4, thus 1 resource is left out after
this allocation.
• Activity 2-5 is left out since it needs 4 resources but the available
resource is just 1, hence we need to postpone this activity. Also,
the float of this activity is reduced to 3 now.

Prepared by Simret T. (Ph.D.) 208

Day 4

1 2 4 5 6

Prepared by Simret T. (Ph.D.) 209

Day 5
• Activity 2- 4. Requirement -4 Availability – 8 Remaining – 4
• Activity 2- 3. Requirement -3 Availability – 4 Remaining – 1
• Activity 2-5 again has to be postponed because of the unavailability of
resources. Also, the float of this activity is reduced to 2 now.

1 2 4 5 6

Prepared by Simret T. (Ph.D.) 210

Day 6
• Activity 2- 4 . Requirement -4 Available – 8 Remaining – 4
• Activity 2- 3 . Requirement -3 Available – 4 Remaining – 1
• Activity 2-5 again has to be postponed because of the unavailability of
resources. The float remaining for this activity is 1 …

1 2 4 5 6

Prepared by Simret T. (Ph.D.) 211

Day 7
• Activity 2- 3 . Requirement -3, Availability – 8 , Remaining – 5
• Activity 4 -5 lies on the critical path and hence needs to be allocated
resources. Hence, rrequirement – 5, Availability – 5 Remaining – 0
• Activity 2-5 again has to be postponed because of the unavailability of
resources. The float left for this activity is now 0.

Prepared by Simret T. (Ph.D.) 212

Day 8
• Activity 4- 5 continues. Requirement -5, availability – 8, remaining – 3.
• Activity 2-5 is now critical. The resources required are 4 but the
availability is only 3.
• Hence we need to postpone this activity by a day. This increases the
duration of the project by 1 day.

Prepared by Simret T. (Ph.D.) 213

Day 9
• Activity 4- 5 . Requirement -5, Available – 8, Remaining – 3.
• Activity 2 -5 . No resources are available. Hence we need to postpone
this activity by a day again. The total project duration now becomes
18 days

Prepared by Simret T. (Ph.D.) 214

Day 10
• Since activities in progress can’t be stopped in between, resources must be
allocated to them first.
• Activity 4- 5, Requirement -5, Available – 8 , Remaining – 3
• Activity 2 -5. Not sufficient resources available. Hence we need to postpone
this activity by a day again.
• As per the given heuristic the activity 3-5 can’t be scheduled now.
Postpone activity 3-5.

Prepared by Simret T. (Ph.D.) 215

Day 11
• Since activities in progress can’t be stopped in between, hence resources
must be allocated to them first.
• Activity 4- 5, Requirement -5, Available – 8 , Remaining – 3
• Activity 2 -5. Not sufficient resources available. Hence we need to postpone
this activity by a day again.
• As per the given heuristic the activity 3-5 can’t be scheduled now.
Postpone activity 3-5.

Prepared by Simret T. (Ph.D.) 216

Day 12

• Activity 2 -5 . Requirement – 4. Availability – 8. Remaining – 4

• Activity 3 –5. Requirement – 3. Availability – 4. Remaining – 1

Prepared by Simret T. (Ph.D.) 217

Day 13
• Activity 2 -5 . Requirement – 4. Availability – 8. Remaining – 4
• Activity 3 –5. Requirement – 3. Availability – 4. Remaining – 1

Prepared by Simret T. (Ph.D.) 218

Day 14
• Activity 2 -5 . Requirement – 4. Availability – 8. Remaining – 4

Prepared by Simret T. (Ph.D.) 219

Day 15

• Activity 2 – 5 continues. Requirement – 4. Availability – 8. Remaining

–4

Prepared by Simret T. (Ph.D.) 220

Day 16 to Day 20

• Activity 5 – 6. Requirement – 5. Availability – 8. Remaining – 3.

Prepared by Simret T. (Ph.D.) 221

Discussion
• The project duration has been increased by 4 days from original
16 days with no resource constraint to 20 days with resource
limit of 8.
• The resource requirement varies from ____to 8. The resource
loading chart for the total project duration is shown in
Fig______.
• The steps illustrated above can be carried out manually only if
the project is small. For large projects involving multiple
resources we need to look to computer programs.
• The examples presented for resource leveling and resource
allocation are that of very simplistic nature.
Prepared by Simret T. (Ph.D.) 222
Discussion
• First of all, we have considered only a single type of resource
which is used for all types of activities.
• Further we have considered that the resource is interchangeable
across different activities.
• Unfortunately, in real life situations both these assumptions do
not hold true. In practice we have to deal with different types of
resources such as equipment, materials, and labors etc. and
further a single activity may require more than one type of
resources.
Prepared by Simret T. (Ph.D.) 223
Prepared by Simret T. (Ph.D.) 224
Other schedules derived from construction
schedules
• From a project schedule, the following schedules can be prepared.
❑ Invoice schedule
❑ Cash inflow and cash outflow schedule
❑ Staff schedule
❑ Labor schedule
❑ Material schedule
❑ Specialized subcontractor schedule
❑ Plant and equipment schedule
❑ Working capital schedule
❑ Estimation of direct andPrepared
indirectby Simret T.costs
(Ph.D.) 225
Example
• Let’s assume that a contractor has been awarded a contract
for the expansion of a hospital.
• The contract value is Birr. 5,000,0000.00
• The contract duration is 10 months from the receipt of letter
of intent
• The bill of quantities for the project is given in Table____.

Prepared by Simret T. (Ph.D.) 226

 Unit
Unit of Amount
Sl, Item description Quantity Rate
measurement ×104
No. Rs.
1 Earthwork - All Soils Cum 5000 100 5
2 Concrete - PCC & RCC Cum 2000 4000 80
3 Centering & Shuttering Sqm 14000 300 42
4 Reinforcement & Structural steel MT 250 45000 112.5
5 Brickwork Cum 1700 2000 34
6 Plastering - All types Sqm 20000 75 15
7 Painting - All Types Sqm 5000 100 5
8 Flooring - All Types Sqm LS LS 110
9 Waterproofing works Sqm LS LS 12
10 Aluminium work Sqm 300 4500 13.5
11 Electrical work Pkg 1 LS 35
12 Sanitary & Plumbing works Pkg 1 LS 20
13 Road Works Sqm LS LS 16
Total Amount 500
Prepared by Simret T. (Ph.D.) 227
 The bar chart and break up of planned quantity of different items in percent
S. Item description Dur 1 2 3 4 5 6 7 8 9 10

5 15 20 25 25 10

1 Earthwork - All Soils 6

10 20 20 25 15 10

2 Concrete - PCC & RCC 6

10 20 20 25 15 10

3 Centering & Shuttering 6

10 20 20 25 15 10

Reinforcement & Structural

4 6
steel Prepared by Simret T. (Ph.D.) 228
 10 15 20 20 20 10 5

5 Brickwork 7

10 15 20 20 20 10 5

6 Plastering - All types 7

10 15 20 20 20 10 5

7 Painting - All Types 7

10 15 20 20 20 10 5

8 Flooring - All Types 7

Prepared by Simret T. (Ph.D.) 229
 50 50

9 Waterproofing works 2

25 25 25 25

10 Aluminium work 4

25 25 25 15 10

11 Electrical work 5

5 10 15 20 15 15 10 10

12 Sanitary & Plumbing works 8

50 50

13 Road Works 2
Prepared by Simret T. (Ph.D.) 230
The steps involved in the preparation of
invoice schedule
• From the quantities of items/ activities taken from Bill of
Quantities, a month wise or week wise quantities to be
executed every month is prepared corresponding to the
project schedule.
• Based on the quantities and unit rates (to be obtained from
quoted rates) for each month, calculate invoicing amounts
for all the activities.

Prepared by Simret T. (Ph.D.) 231

The steps involved in the preparation of invoice
schedule Cont’d…
• One of the major problems that may be faced in the preparation
of this schedule could be insufficient details in the drawings and
bills of quantities available at the time of scheduling.
• The above steps are easy to carry out for an item rate contract.
But for other types of contract such as lump sum contracts, spilt-
up of lump sum price for each stage of payment will be taken
into account since payment may not be based on quantities of
work done.
• The total invoicing figure will also include escalations as per
accepted terms in the contract.
Prepared by Simret T. (Ph.D.) 232
The steps involved in the preparation of invoice
schedule Cont’d…
• Further a distinction should be made between the invoice figure and actual
payment due.
• The entire bill amount is not payable to the contractor. There are certain
percentages only of the total work done that is paid to the contractor. The
rest of the money is kept as either the retention money or as certain
deductions in lieu of the advances drawn earlier by the contractor and
certain taxes.
• The percentage payment and deduction applicable are as per the agreed
terms of payment and should be taken into account in arriving at invoicing
figures.
• The week wise and finally month wise invoice schedule is prepared for the
case project and is shown in the next slide.
Prepared by Simret T. (Ph.D.) 233
 Table ____ Distribution of quantities to be executed for the case project
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10
Item Description

Earthwork - All Soils 0.25 0.75 1 1.25 1.25 0.5

Concrete works 8 16 16 20 12 8

Formwork 4.2 8.4 8.4 10.5 6.3 4.2

Reinforcement works 11.25 22.5 22.5 28.125 16.875 11.25

Brickwork 3.4 5.1 6.8 6.8 6.8 3.4 1.7

Plastering - All types 1.5 2.25 3 3 3 1.5 0.75

Painting - All Types 0.5 0.75 1 1 1 0.5 0.25

Prepared by Simret T. (Ph.D.) 234
 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10
Item Description

Flooring - All Types 11 16.5 22 22 22 11 5.5

Waterproofing works 6 6

Aluminum work 3.375 3.375 3.375 3.375

Electrical work 8.75 8.75 8.75 5.25 3.5

Sanitary & Plumbing 1.00 2.00 3.00 4.00 3.00 3.00 2.00 2.00
works

Road Works 8.00 8.00

Total 0.25 24.2 52.3 68.25 92.55 92.6 85.375 50.525 21.95 12.00

Cumulative 0.25 24.45 76.75 145 237.55 330.15 415.525 466.05 488 500
Prepared by Simret T. (Ph.D.) 235
Schedule of Milestone Events
• Milestone events are very important events in the proposed
schedule of a project.
• Top management is more concerned with the scheduled
completion of a milestone event.
• Some example of milestone events are: completion of
foundation, completion of superstructure, completion of sanitary
and plumbing works etc.
• Thus from the schedule of the project, the details of milestone
events are separated and are reported in the schedule of
milestone events.
Prepared by Simret T. (Ph.D.) 236
Schedule of Milestone Events
• The slippage, if any, and its financial implications are closely
monitored and the impact of slippage on other activities is also
studied.
• The corrective actions to be taken to bring the slipped milestone
event back on track are proposed. The person responsible for
correcting the slippage is also identified in such reports.
• A typical format for preparing this report is given on the next
slide.
• The schedule of milestone events has gained importance these
days as any slippage from the scheduled completion date of a
milestone event also is the cause of invoking liquidated damages
clause by the owner. Thus from the perspective of a contractor
this schedule is very important.
Prepared by Simret T. (Ph.D.) 237
Sl Description of Estima Proje Descriptio Actio Person Latest Projected
No. milestone ted cted n of n to responsibl estimate slippage in
events date of slippa impact of be e d project weeks
comple ge in problems taken completi
tion week on date
s
1 Completion of
Foundation

2 Completion of
Superstructure

3 Completion of
sanitary and
plumbing works

Prepared by Simret T. (Ph.D.) 238

 Schedule of Plant and Equipment
Sl Plant and equipment Description Nos. required Requirement Remarks
No.
From To
1 Earth rammer of capacity 8 tonnes 2 M6 M7 2 months

2 Concrete mixer 500 LTR of 5 cum 1 M2 M7

capacity

3 Builders hoist 2 M3 M7
4 Front end dumper 1 M1 M10 7
5 Theodolite with optical plummet 1 M1 M10

6 Tilting/ dumpy level 2

Prepared by Simret T. (Ph.D.) M1 M10 239
Sl Plant and equipment Description Nos. Requirement Remarks
No. required
From To

7 1 M2 M7
Compression testing machine 100 t
8 Bar bending machine 1 M2 M7
9 Bar shearing machine 1 M2 M7
10 1 M2 M7
Wood surface planner - Horizontal
11 1 M2 M10
Water pump centrifugal multistage
12 Mobile diesel compressor 1 M2 M10
Prepared by Simret T. (Ph.D.) 240
Schedule of project staff
• The number of staff is dependent on the nature of activity,
quantum of work, and the working hours adopted by the
organization, the proportion of work which the main contractor
is planning to subcontract etc.
• A large number of project staff is needed for performing different
activities. Some of the staffs are specialized in some areas such
as planning, billing and so on.

Prepared by Simret T. (Ph.D.) 241

 Schedule of project staff
Staff category Nos. Requirement Remarks
Sl required From To
No.
1 Project Manager 1 M1 M10
2 Resident Engineer 1 M1 M10

3 Civil Engineer 1 M2 M10

4 Jr Engineer - 1 M6 M10
Electrical
5 Jr. Engineer- Civil 1 M2 M7
Prepared by Simret T. (Ph.D.) 242
 Schedule of project staff
Staff category Nos. Requirement Remarks
Sl required
No. Fro To
m
6 Jr. Engineer- Civil 1 M6 M7 For road works
7 Foreman 1 M2 M7 For formwork
activities
8 Foreman 1 M2 M7 For concreting
activities
9 Accountant 1 M1 M10
10 Time Keeper 1 M2 M10
Prepared by Simret T. (Ph.D.) 243
Schedule of Labor requirement
• From the split up of quantity, labor requirement is
calculated.
• The requirement of labor is estimated for each activity.
• The number of laborer's is dependent on the quantity
involved in an activity and the productivity of laborer's.
• For example, the quantity of earthwork involved in month 1
is ____cum. If the productivity of laborer's for this work is
assumed to be _____manhours per cum, the total manhours
required for this activity alone would be _______manhours.
Prepared by Simret T. (Ph.D.) 244
Schedule of Labor requirement cont’d….
• If it is assumed that each day consists of 10 working hours, the number
of workers required for this activity alone would be ______for month 1.
The requirement of workers for other months for the same activity is
also computed.
• Similar exercise is carried out for other activities also. The monthly
requirement of laborer's is obtained by summing up the
requirement for each activity planned for a month.
• Care should be taken that computations for different types of
workers (for example, unskilled, semi skilled, and skilled laborer's )
are carried out separately.
• This way one can find out the requirement of workmen of
different categories and present it in
Prepared by Simret the form of a schedule.
T. (Ph.D.) 245
 Schedule of Labor requirement cont’d….
Description Total M1 M2 M3 …. M6 Remark
Sl (Labor Man- s
No. category) months

1 Unskilled

2 Semi skilled

3 Skilled

Prepared by Simret T. (Ph.D.) 246

Schedule of Materials requirement
• Based on the quantity of a particular item, the type and quantity
of materials to be purchased is established.
• The schedule helps project manager to understand the timing at
which a particular material is desired for the project and thus
taking the procurement action well in time thereby realizing
advantages such as discounts, etc. from the material supplier.
• If on the other hand material is procured on an emergency basis,
chances are that one may compromise on quality besides getting
the material at higher prices.
• The material requirement as a function of time shown month
wise in the schedule (could be any other duration such as week
etc.) are predetermined based
Prepared byon
Simret the
T. (Ph.D.) bar chart of the project. 247
 Description Unit Qty M M M M M M M M M M Remarks
Sl 1 2 3 4 5 6 7 8 9 10
No.

1 17,825 10 20 20 25 15 10 [2000 x 6.5 +

1700 x 1.25
+ 20000 x
0.109]x1.03

Cement Bags
2 3010 [2000 x0.60
+1700 x 0.66
+20000 x
Sand - 0.030]x1.03
Coarse,
Fine &
Filling Cum Prepared by Simret T. (Ph.D.) 248
 Description Unit Qty M M M M M M M M M M Remarks
Sl 1 2 3 4 5 6 7 8 9 10
No.

3 1854 [2000 x 0.9]

Aggregat x 1.03
es - 40,
20,
12/10,
6mm &
above
40mm for
roads Cum
4 850000 1700 x 500
Bricks - including
75 Class wastage
designati
on Each Prepared by Simret T. (Ph.D.) 249
 Descripti Unit Qty M M M M M M M M M M Remarks
Sl on 1 2 3 4 5 6 7 8 9 1
No. 0

5 Reinforc 258 250 x 1.03

ement -
TMT
Bars MT

Prepared by Simret T. (Ph.D.) 250

Schedule of Materials requirement
• Cement is required for concreting, brickwork, and plastering.
• For concrete the per cum requirement is approximately assumed
to be 6.5 bags,
• For one cum of brickwork (with 1:6 cement mortar) it is assumed
to be 1.25 bags,
• And for plastering (1:4 cement mortar) it is assumed to be 0.109
bags per sqm.
• The exact requirement would come from the design mix.
• Wastage factor of 3% is also added on top of this to get the total
requirement.
Prepared by Simret T. (Ph.D.) 251