Quantitative Mehod in Construction L Borama

AMOUD UNIVERSITY
School of PGSR
DEPT. OF CONSTRUCTION MANAGEMENT .
Quantitative Method in Construction

Management
Werku Koshe Hareru (Ph.D, PE)
Construction Engineering
Email: wkgoldcot6@gmail.com
Mobile: +252 637048441
Date: 27/03/2022
MSO H.K. Werku AU, SPGSR MSc. in CM
Management

Components of the Assessment
• The final course Grade will be made up as
follows:
» Project 30%
» Quiz 10%
» Final Exam 60%
Total = 100%
Fixed Grading system
MSO H.K. Werku AU, SPGSR MSc. in CM 1

Class Rules
• Try to come on time

• No disturbance during lecture
• Bring your note book, pen and calculator
• DO NOT MISS YOUR PROJECT AND FINAL
EXAM
• No cell phone calls, No SMS
• Copying of assignments is strictly prohibited
• Meet the deadlines of assignments
• Maintain your attendance

Course Content
1. Introduction to quantitative method/ OR
2. Formulation and application Linear Programming
in construction project
2.1. General Introduction to LP
2.2. Graphical method
2.3. The Simplex Method
2.4. Transportation problems
2.5. Assignment problems
3. GOAL Programming

Course Content
4. Network Models
 network – nodes, arcs
 evaluated network
 minimal distance, maximal flow etc.
5. Inventory Models
 how much to order?
 when to order?
 deterministic/probabilistic models
6. Computer Simulation

Management
What do you expect from

this Course ?
&
Why should you take this course?

Chapter – one

Management

Quantitative Method
Alternative Names
 operational research
 operations analysis
 quantitative analysis
 systems analysis
 decision analysis
 decision science

Management Science and operation
Alternative Names
 operational research
Operations Research = Management Science
Software TORA
 MS Excel (FRONTLINE SOLVERS)
 SIMPROCESS
 SIMUL
 Matlab & other

Quantitative Method in Construction Management
Definition
1.QM/OR is the application of scientific methods,
techniques and tools to problems involving the operations
of systems, so as to provide those in control of the
operations with optimum solutions to the problems.
2. QM/OR is the application of the scientific methods to the

study of the operations of large, complex organizations
or activities.
3. MS/OR is the application of the scientific method to the

analysis and solution of managerial decision problems.

MS/Quantitative Method
Definition - Summary
 Application of SCIENTIFIC METHOD
 Study of LARGE & COMPLEX SYSTEMS

 Analysis of MANAGERIAL PROBLEMS
Finding OPTIMAL SOLUTION
 Use of MATHEMATICAL MODELS

 Use of COMPUTERS & SPECIAL SW

MS/OR/Quantitative Method
Modeling Process
Recognition and Formulation and

Real-World Definition of the Construction of the
Problem Problem Mathematical
Model
Interpretation
Validation and Solution
Implementation Sensitivity Analysis of the Model
of the Model

Modeling Process
Recognition and
Real-World Definition of the
Problem Problem
 Processes
 Restrictions
 Goal

Modeling Process
Formulation and  Variables
Construction of the
Mathematical  Constraints (equations, inequalities)
Model
 Objective function
Reality Model
Finding a proper balance between
the level of simplification of reality
is good representation of reality.
 Deterministic
 Probabilistic
Modeling Process

Problem Mathematical Model
Problem
Solution
of the Model
 Feasible
 Optimal
 Infeasible
Modeling Process

Problem Problem Mathematical
Model
Interpretation
Validation and Solution
Implementation Sensitivity Analysis of the Model
of the Model

• To make overall arrangement of the limited
resources of human, financial and material
in the economic system by using analytical,
experimental and numerical methods,
aiming to provide optimal plans for
decision makers to achieve the most
effective management.1
Encyclopedia of the Chinese Enterprise
1
Management

Linear Programming
Formulation and application Linear Programming

in construction project
2.1 General Introduction to LP Todays’
2.2 Graphical Method Agenda
2. 3 The Simplex Method

2.4 Transportation problems
2.5 Assignment problems

INTRODUCTION to LP
• Linear programing was developed by George

Dantzing in year 1947 while working on
research projects for the USA air Force.
• Early application of LP was mainly in
military operations.
• Subsequently its application spread in
solving a number of business problems
including CONSTRUCTION.

Linear Programming (LP)
LP is a mathematical technique for optimum
allocation of scarce or limited resources to
several competing activities on the basis of
given principle of optimality, which can be
either performance, ROI, cost, utility, time,
distance etc.

INTRODUCTION
• In construction projects the PM has ensure that
the project objectives are achieved within the
limited resources and various environmental
and social issue.
• LP tries to address this problem mathematically
by converting the objective and constraints in
the form of equation and inequalities
• LP assumes liner relation ship among various
variables considered in a problem, which may
not be true or justifiable.
Linear Programming
In order to apply LP certain requirements have to be
made
1. Objective function must be a linear function of
decision variables
2. Constraints should be linear function of decision

variables
3. All the decision variables must be nonnegative
29
Linear Programming (LP)
Steps
1. Formulate the objective function
2. Formulate the constraints
3. Define decision variables
4. Mention the non-negativity criteria

Formulation of Linear Programming
Problems
Objective function
Constraint functions
Standard form of LP problems
• Standard form of LP problems must have
following three characteristics:
1. Objective function should be of maximization type
2. All the constraints should be of equality type
3. All the decision variables should be nonnegative

INTRODUCTION
• We shall try to explore the fundamental of
linear programming by the help of an
examples.

Case study to understand LP
• Consider a contractor who manufacture door
and window
Window
Door
Window
Door
Profit $ 600
Profit $ 500
Details of manufacturing process is given:
Items Working Hrs. carpentry Working Hrs. for painting
Window 3 hours 1 hours
Door 2 hours 4 hours

Details of manufacturing process is given:
Items Working Hrs. carpentry Working Hrs. for painting

Window 3 hours 1 hours
Door 2 hours 4 hours
Department Employed labor Total working

hours per day
Carpentry 8 Carpentry working 8 hours daily 64 hours
Department
Painting 8 Painter working 8 hours daily and 1 64+4= 68 hours
Department painter working 4 hours (per time)
daily

Analysis:
Product Hrs. required per pieces Max possible Profit Total

production based on per profit
Total Hrs. Available unit
Carpentry Painting Carpentr Painting
y
(1) (2) (3) (4) (5) (6) (7)

Window 3 1 64/3=21.3 68/1=68 $500 21.3*500
=10666.7
Door 2 4 64/2=32 68/4=17 $600 17*600=
10200

Solutions that contractors will seek
• Does the option giving a profit of $ 10,666.7 represent
the optimum solution or the maximum profit?
• Can the profit be increased by combination of
production of Door and Window?
• What will be change in profit if we add one hour of
working?

LP: Graphical method steps
Step 1: Draw each constraint on the graph

Step 2: Determine the feasible region
Step 3 : Determine the corner points of the
feasible region
Step 4: Substitute each corner point in the
objective function
Step 5: Select point that realize objective
function as optimal solution.

Example 2
• A small company produces construction materials for the commercial
and residential construction industry. The company produces two
products: a universal concrete patching product (CON) and a
decorative brick mortar (MORT). The company can sell the CON for a
profit of $ 140/ton and the MORT for a profit of $160/ton. Each ton of
the CON requires 2 m3 of the red clay and each ton produced of the
MORT requires 4 m3. A maximum of 28 m3 of the red clay could be
available every week. The machine used to blend these products can
work only a maximum of 50 hours per week. This machine blends a
ton of either product at a time, and the blending process requires 5
hours to complete. Each material must be stored in a separate curing
vat, thus limiting the overall production volume of each product. The
curing vats for CON and MORT have capacities of 8 and 6 tons,
respectively. What is optimal production strategy for the company
given this information?

Example
Maximize Z 6x5
subject to y (c-1)
2x3y (c-2)
5
4 x  y  15 (c-3)
x  3 y  11
x, y  0 (c-4 & c-5)

Graphical method: Step - 1
Plot all the constraints

one by one on a graph
paper

Identify the common

region of all the
constraints.
This is known as
‘feasible region’

Plot the objective function

assuming any constant, k,
i.e. 6 x  5 y 
k
This is known as ‘Z line’,
which can be shifted

perpendicularly by
changing the value of k.

Notice that value of the objective
function will be maximum when

it passes through the intersection
x  3 y  11 and 4 x  y  15
of
(straight lines associated with 2nd
and 3rd constraints).
This is known as ‘Optimal Point’

Thus the optimal point of the

present* problem is
x  3.091
y *  2.636
And the optimal solution is

6x*  5 y *  31.726

Graphical Method
• Minimization problem

Simplex Method
• Maximization problem

•

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AMOUD UNIVERSITY

Quantitative Method in Construction

MSO H.K. Werku AU, SPGSR MSc. in CM

MSO H.K. Werku AU, SPGSR MSc. in CM 1

• Try to come on time

MSO H.K. Werku AU, SPGSR MSc. in CM 2

MSO H.K. Werku AU, SPGSR MSc. in CM 3

MSO H.K. Werku AU, SPGSR MSc. in CM 4

What do you expect from

MSO H.K. Werku AU, SPGSR MSc. in CM 5

Quantitative Method in Construction

MSO H.K. Werku AU, SPGSR MSc. in CM 6

MSO H.K. Werku AU, SPGSR MSc. in CM 7

MSO H.K. Werku AU, SPGSR MSc. in CM 8

2. QM/OR is the application of the scientific methods to the

3. MS/OR is the application of the scientific method to the

MSO H.K. Werku AU, SPGSR MSc. in CM 9

 Application of SCIENTIFIC METHOD

 Study of LARGE & COMPLEX SYSTEMS

 Use of MATHEMATICAL MODELS

MSO H.K. Werku AU, SPGSR MSc. in CM 10

Recognition and Formulation and

MSO H.K. Werku AU, SPGSR MSc. in CM 11

MSO H.K. Werku AU, SPGSR MSc. in CM 12

Recognition and Formulation and

Recognition and Formulation and

MSO H.K. Werku AU, SPGSR MSc. in CM 11

MSO H.K. Werku AU, SPGSR MSc. in CM

Formulation and application Linear Programming

2. 3 The Simplex Method

MSO H.K. Werku AU, SPGSR MSc. in CM

• Linear programing was developed by George

MSO H.K. Werku AU, SPGSR MSc. in CM

MSO H.K. Werku AU, SPGSR MSc. in CM

2. Constraints should be linear function of decision

3. All the decision variables must be nonnegative

1. Formulate the objective function

2. Formulate the constraints

3. Define decision variables

4. Mention the non-negativity criteria

1. Objective function should be of maximization type

2. All the constraints should be of equality type

3. All the decision variables should be nonnegative

MSO H.K. Werku AU, SPGSR MSc. in CM 31

MSO H.K. Werku AU, SPGSR MSc. in CM

MSO H.K. Werku AU, SPGSR MSc. in CM

Items Working Hrs. carpentry Working Hrs. for painting

Department Employed labor Total working

MSO H.K. Werku AU, SPGSR MSc. in CM

Product Hrs. required per pieces Max possible Profit Total

(1) (2) (3) (4) (5) (6) (7)

MSO H.K. Werku AU, SPGSR MSc. in CM

• Does the option giving a profit of $ 10,666.7 represent

the optimum solution or the maximum profit?

• Can the profit be increased by combination of

production of Door and Window?

• What will be change in profit if we add one hour of

MSO H.K. Werku AU, SPGSR MSc. in CM

Step 1: Draw each constraint on the graph

MSO H.K. Werku AU, SPGSR MSc. in CM

MSO H.K. Werku AU, SPGSR MSc. in CM

MSO H.K. Werku AU, SPGSR MSc. in CM 38