Navana

Construction

Group no. 18
Case Summary
• Navana Construction with a project of $5.4mill for the Pran –RFL- Group.
• Deadline for the construction is 47 weeks
• Failing to meet the deadline would result in a penalty of $300,000
• If the project is completed within 40 weeks the company will be rewarded $150,000
• Project manager is Engr. Abul Kalam Azad
• Now its up to him to figure out, if it is feasible to finish the project within the 40 weeks
time frame.
• He is considering PERT/CPM to find the project’s feasibility.
 Difference between PERT and CPM
PERT CPM

PERT is a project management technique, whereby planning, scheduling, CPM is a statistical technique of project management in which planning,
organizing, coordinating and controlling uncertain activities are done. scheduling, organizing, coordination and control of well-defined activities take
place.

PERT is a technique of planning and control of time. CPM is a method to control costs and time.

PERT is evolved as a research and development project. CPM is evolved as a construction project.

PERT is set according to events. CPM is aligned towards activities.

PERT uses a probabilistic model. A deterministic model is used in CPM.
There are three times estimates in PERT, i.e. optimistic time (to), most likely There is only one estimate in CPM.
time and pessimistic time.

PERT technique is best suited for a high precision time estimate. CPM is appropriate for a reasonable time estimate.

PERT deals with unpredictable activities. CPM deals with predictable activities.
PERT is used where the nature of the job is non-repetitive. CPM involves the job of repetitive nature.

PERT is best for research and development projects. CPM is for non-research projects like construction projects.

The crashing concept is not applicable to PERT. Crashing is a compression technique applied to CPM, to shorten the project
duration, along with the least additional cost.
 Activity list for Navana Construction
Limited project
Activity Activity Description Imme Optimistic Most Likely Pessimistic Time Time (Crash) Cost $ (Normal) Cost $ Maximum
diate Estimate Estimate Estimate (Normal) (Crash) Reduction in Time
Predece- a m b
ssors
A Excavate - 1 2 3 2 weeks 1 weeks 180,000 280,000 1 week
B Lay the foundation A 2 3 8 4 weeks 2 weeks 320,000 420,000 2 weeks
C Put up the rough wall B 6 9 18 10 weeks 7 weeks 620,000 860,000 3 weeks
D Put up the roof C 4 5 10 6 weeks 4 weeks 260,000 340,000 2 weeks
E Install the exterior C 1 4 5 4 weeks 3 weeks 410,000 570,000 1 weeks
plumbing
F Install the interior E 4 4 10 5 weeks 3 weeks 180,000 260,000 2 weeks
plumbing
G Put up the exterior siding D 5 6 11 7 weeks 4 weeks 900,000 1,020,000 3 weeks

H Do the exterior painting E, G 5 8 17 9 weeks 6 weeks 200,000 380,000 3 weeks

I Do the electrical work C 3 7 9 7 weeks 5 weeks 210,000 270,000 2 weeks

J Put up the wallboard F, I 3 9 9 8 weeks 6 weeks 430,000 490,000 2 weeks

K Install the flooring J 4 4 4 4 weeks 3 weeks 160,000 200,000 1 weeks
L Do the interior painting J 1 5 7 5 weeks 3 weeks 250,000 350,000 2 weeks

M Install the exterior H 1 2 3 2 weeks 1 weeks 100,000 200,000 1 weeks

fixtures
N Install the interior K, L 5 5 9 6 weeks 3 weeks 330,000 510,000 3 weeks
fixtures
The project manager requires the answer to the following questions to check the project feasibility.
1. How can the project be displayed graphically to better visualize the flow of the
activities?

2. What is the total time required to complete the project if no delays occur?

3. When do the individual activities need to start and finish (at the latest) to meet this
project completion time?

4. When can the individual activities start and finish (at the earliest) if no delays occur?

5. Which are the critical bottleneck activities where any delays must be avoided to
prevent delaying project completion?

6. For the other activities, how much delay can be tolerated without delaying project
completion?

7. Given the uncertainties in accurately estimating activity durations, what is the

probability of completing the project by the deadline?

8. If extra money is spent to expedite the project, what is the least expensive way of
attempting to meet the target completion time (40 weeks)?
1. Graphical Representation of The Project
2. Time Needed to Finish the Project

• Critical path identified at A-B-C-E-F-J-L-N

• Time needed to finish the project is 2+4+10+4+5+8+5+6= 44 weeks.
3. The latest starting and finishing time for
individual activities is shown as follows:
Activity Latest Start Time (weeks) Latest Finish time (weeks)
A 0 2
B 2 6
C 6 16
D 20 26
E 16 20
F 20 25
G 26 33
H 33 42
I 18 25
J 25 33
K 34 38
L 33 38
M 42 44
N 38 44
4. Individual Activities start and finish (at
the earliest) Without Delays
Activity Earliest Start Time (weeks) Earliest Finish time (weeks)
A 0 2
B 2 6
C 6 16
D 16 22
E 16 20
F 20 25
G 22 29
H 29 38
I 16 23
J 25 33
K 33 37
L 33 38
M 38 40
N 38 44
5. Critical Bottleneck Activities
Path Length

STARTABCDGHMFINISH 2+4+10+6+7+9+2 = 40 weeks

STARTABCEHMFINISH 2+4+10+4+9+2 = 31 weeks

STARTABCEFJKNFINISH 2+4+10+4+5+8+4+6 = 43 weeks

STARTABCEFJLNFINISH 2+4+10+4+5+8+5+6 = 44 weeks

STARTABCIJKNFINISH 2+4+10+7+8+5+6 = 42 weeks

• ‘’START-A-B-C-E-J-L-N-Finish” is the longest path or critical path.

• Each of the activities in the path is Critical Bottleneck Activities.
• Changes should be made in these activities in case duration is reduced.
6. Tolerable Delay in Activities Without
Delaying The Project
Activity Slack On
(LF – EF) Critical Path?
A 0 Yes
B 0 Yes
C 0 Yes
D 4 No
E 0 Yes
F 0 Yes
G 4 No
H 4 No
I 2 No
J 0 Yes
K 1 No
L 0 Yes
M 4 No
N 0 Yes

• D,G,H,M activities can be delayed up to 4 weeks.

• I and K activities can be delayed 2 and 1 week respectively.
7. The Probability of Completing The
Project Within The Deadline
Activities on Mean
Mean Variance
Critical Path
A 2

B 4 1

C 10 4

E 4

F 5 1

J 8 1

L 5 1

N 6

Project duration b = 44 b2 = 9

7. The Probability of Completing The
Project Within The Deadline

Project duration
(In weeks)
44 47
(Mean) (Deadline)

• Project deadline=47 weeks

• Mean project duration= 44 weeks and Std is 3
• Z= = 1
• The z value becomes 0.84134 or 84.13%
8. The Least Expensive Way of Attempting to Meet
The Target Completion Time
Maximum
Time Time Cost $ Cost $ Crash Cost per
Activity Reduction in
(Normal) (Crash) (Normal) (Crash) week saved $
Time
A 2 weeks 1 weeks 180,000 280,000 1 week 100,000
B 4 weeks 2 weeks 320,000 420,000 2 weeks 50,000
C 10 weeks 7 weeks 620,000 860,000 3 weeks 80,000
D 6 weeks 4 weeks 260,000 340,000 2 weeks 40,000
E 4 weeks 3 weeks 410,000 570,000 1 weeks 160,000
F 5 weeks 3 weeks 180,000 260,000 2 weeks 40,000
G 7 weeks 4 weeks 900,000 1,020,000 3 weeks 40,000
H 9 weeks 6 weeks 200,000 380,000 3 weeks 60,000
I 7 weeks 5 weeks 210,000 270,000 2 weeks 30,000
J 8 weeks 6 weeks 430,000 490,000 2 weeks 30,000
K 4 weeks 3 weeks 160,000 200,000 1 weeks 40,000
L 5 weeks 3 weeks 250,000 350,000 2 weeks 50,000
M 2 weeks 1 weeks 100,000 200,000 1 weeks 100,000
N 6 weeks 3 weeks 330,000 510,000 3 weeks 60,000
8. The Least Expensive Way of Attempting to Meet
The Target Completion Time
Activity Decreased by Associated Cost $

J 2 weeks 30,000 * 2

F 2 weeks 40,000 * 2

Total Crashing Cost 140,000

• The incentive for finishing within 40 weeks is $150,000

• Remaining incentive after the costs = $150,000-$140,000 = $10,000
8. The Least Expensive Way of Attempting to Meet
The Target Completion Time