Project Management

Project- Project is defined as the combination of interrelated activities

which must be carried out in a certain order to complete the project in
minimum possible time
A) By CPM method we can find
1) Draw Network Diagram
2) Critical Activities
3) Critical Paths
4) Earliest start time and Letest finish time for each activity
5) Float time for each activity
6) Total Project Duration
B) By PERT method
1) Probability of completion of project in given time
2) The completion time of project for a givin probability
Network Logics
1) Event - The start and end of activities called as event or node.

2) Activity Duration of activity

Node
tij Node
i j
3) Start and finish Time
Ei Ej
Li Lj

i j

START TIME FINISH TIME

Ei Li Ej Lj
Earliest Letest Earliest Letest
Start Start Finish Finish
time Time time time
4) Float or Stock
The Total free time for an activity is called as float
i) Total Float (TF)
TF = (Lj-Ei) - tij
ii) Free Float (FF)
FF = (Ej-Ei) - tij
iii) Independent Float (IF)
IF= (Ej-Li) - tij

-ve float - Activity cannot be completed in given time

No resources are available

Zero float - Activity can be completed in time

Sufficient resources

+ve float - Activity can be completed before given time

Extra Resources
Rules to construct the network
1) Every activity must be represented by an single arrows

A ALLOWED
i j
2) No looping is allowed

In this there is same

activity activity
represented by two NOT ALLOWED
arrows. i j
It is not similar to dummy
activity
3) No Dangling is allowed

1 5 6

Dangling
4
Dummy Activity
When in a Network if two different activities having different time durations are
having same head event or same event, the dummy activity is used to draw the
network
Activity A

5 weeks
NOT ALLOWED
1 2

6 weeks
Activity B

Dummy activity (0) ALLOWED

1

3
Precede Activity
The activity which is just completed before staring a new activity is called an preceded activity
Preceded
Activities
Activity
2 D
A A -

B -

C -
B E H
1 3 5 6 D A

E B,F
F
F C
C
G G C
4 H D,E,G
Calculation of E and L

1) Forward Pass Method (Earliest Start Time)

a) Start calculations from origin (First time) (in forward direction)
b) Calculate earliest start time for each activities at every node
c) Earliest start time at any node is maximum of all earliest start times
E2=4
2 E(5)
E1=0 A(4)
D(2) E5=12 E7=18
E8=22
B(5) F(6) I(3) K(4)
1 3 5 7 8
E3=6 J(7)
G(5)
C(3)

E4=3 E6=11
4 H(8)
6
2) Backward Pass Method (Letest Finish Time)
a) Start calculation form finish point in the backward drection
b) Calculate Letest Finish time of every action at every note.
c) Letest finish time at any node is the minimum of all letest finish times
E2=4
L2=7
2 E(5)
E1=0 A(4)
E5=12 E7=18
L1=0 E8=22
L5=15 L7=18
B(5) F(6) I(3) K(4) L8=22
1 3 5 7 8
E3=6 J(7)
G(5)
C(3) L3=9

E4=3 E6=11

L4=3
4 H(8)
6 L6=11
 E2=4
L2=7
2 E(5)
E1=0 A(4)
E5=12 E7=18
L1=0
L5=15 L7=18
B(5) F(6) I(3) K(4) L8=22
1 3 5 7 8
E3=6 J(7)
G(5)
C(3) L3=9

E4=3 E6=11

L4=3
4 H(8)
6 L6=11

Critical Path -: 1-4-6-7-8

Critical activity -: C, H, J, K
Total Project Duration -: 22days
A project consists of 10 activities. The time duration for each activity is
given in following table

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

Duration(
15 15 3 5 8 12 1 14 3 14
week)
Find 1) Critical path
2) Critical activities
3) Total project Duration
4) Earliest Start Time
5) Letest Finish Time
6) Float for each activity in a tabular form
 2
15

1
 2
15

1
15

3
 2
15

3
1
15

3
 2
15

3
1 4
15
8

3
 5
2
15
5
3
1 4
15
8

3
 5
2
15
5
3
1 4
15
8 6
3 12
 5
2
15
5
3
1 4 14

15
8 6
3 12
 5
2
15
1 5
3
1 4 14

15
8 6
3 12
 5
2
15
1 5
3
1 4 14
14
15
8 6 7
3 12
 5
2
15
1 5
3 3
1 4 14
14
15
8 6 7
3 12
 E2=15

E5=27
5
2
E1=0 15 E4=26
1 5
3 3
1 4 14
E7=54

14
15
8 6 7
3 12
E6=40

E3=18
 E2=15
L2=15
E5=27
5
L5=37
2
E1=0 15
L1=0
E4=26
L4=26 1 5
3 3
1 4 14
E7=54
L7=54
14
15
8 6 7
3 12
E6=40
L6=40
E3=18
L3=18
 E2=15
L2=15
E5=27
5
L5=37
2
E1=0 15
L1=0
E4=26
L4=26 1 5
3 3
1 4 14
E7=54
L7=54
14
15
8 6 7
3 12
E6=40
L6=40
E3=18
L3=18
1) Critical Path 1-2-3-4-6-7
2) Critical Activities 1-2,2-3,3-4,4-6,6-7
3) Total Project Duration- 54weeks
 Start Time Finish Time
Activity Duration Total Float Free Float
(i-j) (tij) Lj-Ei-tij Ej-Ei-tij
Ei Li Ej Lj

1-2 15 0 0 15 15
1-3 15 0 0 18 18
2-3 3 15 15 18 18
3-4 8 18 18 26 26
2-5 5 15 15 27 37
3-6 12 18 18 40 40
4-6 14 26 26 40 40
4-5 1 26 26 27 37
6-7 14 40 40 54 54
 Start Time Finish Time
Activity Duration Total Float Free Float
(i-j) (tij) Lj-Ei-tij Ej-Ei-tij
Ei Li Ej Lj

1-2 15 0 0 15 15 0 0
1-3 15 0 0 18 18 3 3
2-3 3 15 15 18 18 0 0
3-4 8 18 18 26 26 0 0
2-5 5 15 15 27 37 17 7
3-6 12 18 18 40 40 10 10
4-6 14 26 26 40 40 0 0
4-5 1 26 26 27 37 10 0
6-7 14 40 40 54 54 0 0
A project consist of 8 activities. The precedence relation and the activitytimes are
given in the following table. Draw the network diagram and calculate the critical
path. Find out the slack for each activity in a tabular fom.
Activity Immediate Predecesser Activity Times (weeks)
P - 12
Q - 20
R - 28
S R 12
T P,Q 28
U T,S 12
V T,S 8
W U,V 8
 2
P(12)

1
 2
P(12)

Q(20)
1 3
 2
P(12)

Q(20)
1 3

R(28)

4
 2
P(12)

Q(20)
1 3
5
R(28)

S(12)

4
 2
P(12)
Dummy(0)

Q(20)
1 3 T(28)

5
R(28)

S(12)

4
 2
P(12)
Dummy(0)

Q(20)
1 3 T(28)

5 U(12) 7
R(28)

S(12)

4
 2
P(12)
Dummy(0)
6
Q(20)
1 3 T(28) V(8)

5 U(12) 7
R(28)

S(12)

4
 2
P(12)
Dummy(0)
6
Dummy(0)
Q(20)
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28)

S(12)

4
 2
P(12)
Dummy(0)
E1=0 6
Dummy(0)
Q(20)
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28)

S(12)

4
 E2=12

2
P(12)
Dummy(0)
E1=0 6
Dummy(0)
Q(20)
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28)

S(12)

4
 E2=12

2
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20)
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28)

S(12)

4
 E2=12

2
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20)
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28) E4=28
S(12)

4
 E2=12

2
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28) E4=28
S(12)

4
 E2=12

2
E6=56
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28) E4=28
S(12)

4
 E2=12

2
E6=56
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
S(12)

4
 E2=12

2
E6=56
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) V(8)

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
S(12)

4
 E2=12

2
E6=56
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
S(12)

4
 E2=12

2
E6=56
P(12)
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
S(12) L7=60

4
 E2=12

2
E6=56
P(12) L6=60
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
S(12) L7=60

4
 E2=12

2
E6=56
P(12) L6=60
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) L5=48
V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
S(12) L7=60

4
 E2=12

2
E6=56
P(12) L6=60
Dummy(0)
E1=0 E3=20 6
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) L5=48
V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
L4=36 S(12) L7=60

4
 E2=12

2
E6=56
P(12) L6=60
Dummy(0)
E1=0 E3=20 6
L3=20
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) L5=48
V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
L4=36 S(12) L7=60

4
 E2=12
L2=20
2
E6=56
P(12) L6=60
Dummy(0)
E1=0 E3=20 6
L3=20
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) L5=48
V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
L4=36 S(12) L7=60

4
 E2=12
L2=20
2
E6=56
P(12) L6=60
Dummy(0)
E1=0
L1=0
E3=20 6
L3=20
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) L5=48
V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
L4=36 S(12) L7=60

4
 E2=12
L2=20
2
E6=56
P(12) L6=60
Dummy(0)
E1=0
L1=0
E3=20 6
L3=20
Dummy(0)
Q(20) E5=48 E8=68
1 3 T(28) L5=48
V(8) L8=68

5 U(12) 7 W(8)
8
R(28) E4=28 E7=60
L4=36 S(12) L7=60

4
1) Critical Path = 1-3-5-7-8

2) Critical Activities = Q,T,U,W

3) Total Project Duration = 68weeks

 Start Time Finish Time
Activity Duration Total Float Free Float
(i-j) (tij) Lj-Ei-tij Ej-Ei-tij
Ei Li Ej Lj

P 12 0 0 12 20
Q 20 0 0 20 20
R 28 0 0 28 36
0
S 12 28 36 48 48
T 28 20 20 48 48
U 12 48 48 60 60
V 8 48 48 56 60
W 8 60 60 68 68
 Start Time Finish Time
Activity Duration Total Float Free Float
(i-j) (tij) Lj-Ei-tij Ej-Ei-tij
Ei Li Ej Lj

P 12 0 0 12 20 8 0
Q 20 0 0 20 20 0 0
R 28 0 0 28 36 8 0
0
S 12 28 36 48 48 8 8
T 28 20 20 48 48 0 0
U 12 48 48 60 60 0 0
V 8 48 48 56 60 4 0
W 8 60 60 68 68 0 0
Total activities A,B,C,D,E,F,G,H,I consists of a project.
Draw the network to represent the sequence of activities and the minimum time of
completion of project, when the time in days is given
Activity Predecessor Time(days)
A - 8
B - 10
C - 8
D A 10
E A 16
F B,D 17
G C 18
H C 14
I F,G 9
 2
A(8)

1
 2
A(8)

B(10)
1 3
 2
A(8)

B(10)
1 3

C(8)

4
 2
A(8)
D(10)

B(10)
1 3

C(18)

4
 2
E(16)
A(8)
D(10)

B(10)
1 3

C(8)

4
 2
E(16)

B(10) F(17)
1 3 5

C(18)

4
 2
E(16)
A(8)
D(10)

B(10)
1 3 5

G(18)
C(18)

4
 2
E(16)
A(8)
D(10)

B(10) F(17) I(9)

1 3 5 6

G(18)
C(18) H(14)

4
 E2=8

2
E(16)
A(8)
D(10)
E1=0 E6=44
E3=18 E5=35

B(10) F(17) I(9)

1 3 5 6

E4=8 G(18)
C(8) H(14)

4
 E2=8
L2=8

2
E(16)
A(8)
D(10)
E1=0 E6=44
L1=0 E3=18 E5=35 L6=44
L3=18 L5=35
B(10) F(17) I(9)
1 3 5 6

E4=8 G(18)
C(18) H(14)
L4=17

4
 E2=8
L2=8

2
E(16)
A(8)
D(10)
E1=0 E6=44
L1=0 E3=18 E5=35 L6=44
L3=18 L5=35
B(10) F(17) I(9)
1 3 5 6

E4=8 G(18)
C(18) H(14)
L4=17

4
Project Duration = 44days
Critical Path = 1-2-3-5-6
Critical Activities = A(1-2),D(2-3),F(3-5),I(5-6)

Identify All paths

1) 1-3-5-6 = 36 days
2) 1-2-6 = 24 days
3) 1-4-5-6 = 35 days
4) 1-4-6 = 22 days
Find E and L; Total Float and free float for the activities
Start Time Finish Time
Activity Duration Total Float Free Float
(i-j) (tij) Lj-Ei-tij Ej-Ei-tij
Ei Li Ej Lj

A 8 0 0 8 8
B 10 0 0 18 18
C 8 0 0 8 17
D 10 8 8 18 18
E 16 8 8 44 44
F 17 18 18 35 35
G 18 8 17 35 35
H 14 8 17 44 44
Find E and L; Total Float and free float for the activities
Start Time Finish Time
Activity Duration Total Float Free Float
(i-j) (tij) Lj-Ei-tij Ej-Ei-tij
Ei Li Ej Lj

A 8 0 0 8 8 0 0
B 10 0 0 18 18 8 8
C 8 0 0 8 17 9 0
D 10 8 8 18 18 0 0
E 16 8 8 44 44 20 20
F 17 18 18 35 35 0 0
G 18 8 17 35 35 9 9
H 14 8 17 44 44 22 22
PERT- Project Evaluation and Review Technique
1) CPM method is based on single time estimate where as PERT method is three
time estimate method
2) The three time, involved in PERT method are
a) Optimistic Time (to) - Shortest possible time when energy goes according to
the plan.
b) Most Likely Time(tm) - Most frequent time
c) Pessimistic Time (tp) - Longest time when every thing goes wrong
3) The expected time durations
t o  4t m  t p
tc 
6
4) Standard Deviation (σ)

t p  to

6
5) Variance (v or σ2)
2
 t p  to 
v   
2

 6 
6) Standard Normal Variate (Z)
Ts  Tc
Z
p
Ts= Scheduled Time

Tc= Expected CompletionTime

σp= Standard Deviation of Project

7) From Normal Distribution table, the given probability of completion

of project can be calculated
The three time etimate in weeks for the activity of a PERT network are given below
1) Draw Network Diagram
2) Find expected project length
3) Calculate the standard deviation and varence for all activities in tabular form
4) Probabilty of completion of project in 13 weeks
5) Probability of completion in 23 weeks

Activity to tm tp
1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/4 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7 4 1
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/4 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7 4 1
1-4 2 2 8 3 1
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/4 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7 4 1
1-4 2 2 8 3 1
2-5 1 1 1 1 0
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/4 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7 4 1
1-4 2 2 8 3 1
2-5 1 1 1 1 0
3-5 2 5 14 6 4
4-6 2 5 8
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/4 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7 4 1
1-4 2 2 8 3 1
2-5 1 1 1 1 0
3-5 2 5 14 6 4
4-6 2 5 8 5 1
5-6 3 6 15
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 1 1 7 2 1
1-3 1 4 7 4 1
1-4 2 2 8 3 1
2-5 1 1 1 1 0
3-5 2 5 14 6 4
4-6 2 5 8 5 1
5-6 3 6 15 7 4
 2
2

1
 2
2

4
1 3
 2
2

4
1 3

4
 2
1
2

4
1 3 5

4
 2
1
2

6
4
1 3 5

4
 2
1
2

6
4
1 3 5 6

4
 2
1
2

6
4
1 3 5 6

4
 E2=2

2
1
2
σ2=1 σ2=0
E1=0
E3=4 E5=10 E6=17
6
4
1 3 σ =4
2
5 σ =4
2
6

5
σ2=1
3 σ2=1

4
E4=3
 E2=2
L2=9

2
1
2
σ2=1 σ2=0
E1=0
E3=4 E5=10 E6=17
L1=0
L3=4 6 L5=10 L6=17
4
1 3 σ =4
2
5 σ =4
2
6

5
σ2=1
3 σ2=1

4
E4=3
L4=12
 E2=2
L2=9

2
1
2
σ2=1 σ2=0
E1=0
E3=4 E5=10 E6=17
L1=0
L3=4 6 L5=10 L6=17
4
1 3 σ =4
2
5 σ =4
2
6

5
σ2=1
3 σ2=1

4
E4=3
L4=12
Critical Path= 1-3-5-6

Critical Activities = 1-3,3-5.5-6

Total Project Duration = 17weeks

Standard Deviation of the project = σp=√Σσ2ij (for all critical activities)

= √(12+22+22) = 3
4) ∵Ts=13weeks,Tc=17weeks

∴ Standard Normal Variate(Z)

Ts  Tc 13  17
Z 
p 3

Z = -1.33
From Normal Distribution Table
for Z = -1.33, p = 0.0918
∴ p =9.18%
5) ∵Ts=23weeks,Tc=17weeks

∴ Standard Normal Variate(Z)

Ts  Tc 23  17
Z 
p 3

Z=2
From Normal Distribution Table
for Z = 2, p = 0.9772
∴ p =97.72%
A civil engineering field has to bid for the construction of a dam the activities and the time
estimates are given below.The policy of the firm with respect to the submission of bid is to bid
maximum amount that would provide 95% probability of Braking even ( i.e. no loss no profit).
The fixed cost of the project are 8 lakh and variable cost are 9000 per day. The duration is in day.
What amount the firm bid under this policy.
Activity to tm tp
1-2 14 17 25
2-3 14 18 21
2-4 13 15 18
2-8 16 19 28
3-4 0 0 0
3-5 15 18 27
4-6 13 17 21
5-7 0 0 0
5-9 14 18 20
6-7 0 0 0
6-8 0 0 0
7-9 16 20 41
8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25

2-3 14 18 21

2-4 13 15 18

2-8 16 19 28

3-4(dummy) 0 0 0

3-5 15 18 27

4-6 13 17 21

5-7(dummy) 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21

2-4 13 15 18

2-8 16 19 28

3-4(dummy) 0 0 0

3-5 15 18 27

4-6 13 17 21

5-7(dummy) 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18

2-8 16 19 28

3-4(dummy) 0 0 0

3-5 15 18 27

4-6 13 17 21

5-7(dummy) 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28

3-4(dummy) 0 0 0

3-5 15 18 27

4-6 13 17 21

5-7(dummy) 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28 20 4

3-4(dummy) 0 0 0 00 0

3-5 15 18 27

4-6 13 17 21

5-7(dummy) 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28 20 4

3-4(dummy) 0 0 0 00 0

3-5 15 18 27 19 4

4-6 13 17 21

5-7(dummy) 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28 20 4

3-4(dummy) 0 0 0 00 0

3-5 15 18 27 19 4

4-6 13 17 21 17 1.77

5-7(dummy) 0 0 0 0 0

5-9 14 18 20

6-7(dummy) 0 0 0

6-8(dummy) 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28 20 4

3-4(dummy) 0 0 0 00 0

3-5 15 18 27 19 4

4-6 13 17 21 17 1.77

5-7(dummy) 0 0 0 0 0

5-9 14 18 20 17.67 1

6-7(dummy) 0 0 0 0 0

6-8(dummy) 0 0 0 0 0

7-9 16 20 41

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28 20 4

3-4(dummy) 0 0 0 00 0

3-5 15 18 27 19 4

4-6 13 17 21 17 1.77

5-7(dummy) 0 0 0 0 0

5-9 14 18 20 17.67 1

6-7(dummy) 0 0 0 0 0

6-8(dummy) 0 0 0 0 0

7-9 16 20 41 22.83 17.36

8-9 14 16 22
 Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

1-2 14 17 25 17.83 3.36

2-3 14 18 21 17.83 1.36

2-4 13 15 18 15.17 0.69

2-8 16 19 28 20 4

3-4(dummy) 0 0 0 00 0

3-5 15 18 27 19 4

4-6 13 17 21 17 1.77

5-7(dummy) 0 0 0 0 0

5-9 14 18 20 17.67 1

6-7(dummy) 0 0 0 0 0

6-8(dummy) 0 0 0 0 0

7-9 16 20 41 22.83 17.36

8-9 14 16 22 16.67 1.78

1 2
17.83
 3
17.83

1 2
17.83
 3
17.83

1 2 15.17
4
17.83
 3
17.83

1 2 15.17
4
17.83

20

8
 3
17.83 0

1 2 15.17
4

20

8
 19
5
3
17.83 0

1 2 15.17
4
17.83

20

8
 19
5
3
17.83 0

1 2 15.17
4 17 6
17.83

20

8
 19
5
3
0
17.83 0

1 2 15.17
4 17 6 7
17.83

20

8
 19
5
3 17.66
0
17.83 0

1 2 15.17
4 17 6 7 9
17.83

20

8
 19
5
3 17.66
0
0

1 2 15.17
4 17 6 0
7 9
17.83

20

8
 19
5
3 17.66
0
17.83 0

1 2 15.17
4 17 6 0
7 9
17.83

20

8
 19
5
3 17.66
0
17.83 0

1 2 15.17
4 17 6 0
7 22.83 9
17.83

20

8
 19
5
3 17.66
0
17.83 0

1 2 15.17
4 17 6 0
7 22.83 9
17.83

20 16.67

8
 E3=35.66 E5=54.66
19
5
3 17.66
0
17.83 0
E1=0
E6=52.66 E7=54.66 E9=77.49
E4=35.66

1 2 15.17
4 17 6 0
7 22.83 9
17.83

E2=17.83

20 16.67

8 E8=52.66
 E3=35.66 E5=54.66
L3=35.66 19 L5=54.66
5
3 17.66
0
17.83 0
E1=0
E6=52.66 E7=54.66 E9=77.49
L1=0 E4=35.66
L6=54.66 L7=54.66 L9=77.49
L4=37.66

1 2 15.17
4 17 6 0
7 22.83 9
17.83

E2=17.83
L2=17.83
20 16.67

8 E8=52.66
L8=60.82
 E3=35.66 E5=54.66
L3=35.66 19 L5=54.66
5
3 17.66
0
17.83 0
E1=0
E6=52.66 E7=54.66 E9=77.49
L1=0 E4=35.66
L6=54.66 L7=54.66 L9=77.49
L4=37.66

1 2 15.17
4 17 6 0
7 22.83 9
17.83

E2=17.83
L2=17.83
20 16.67

8 E8=52.66
L8=60.82
Project completion Duration = 77.49days

Critical Path = 1-2-3-5-7-9

Critical Activities = 1-2,2-3,3-5,5-7,7-9

Standard Deviation of the project = σp=√Σσ2ij (for all critical activities)

= √(3.36+1.36+4+0+17.3) = 5.11
∵ The project Duration for 95% of completion
∵p=95% or p=0.95
2 values are available 0.9495 and 0.9505
From normal distribution table for p=0.95
Ts  Tc
Ts  77.49 Z
1.64  p
5.11
TS  85.87  86days
The firm wants to bid the project for 86days

∴ Project cost = Direct Cost + Indirect Cost

∴ Project Cost = Rs800000+Rs 9000per day × 86 days

= 1574000Rs
A project consist of following activities. Find the critical path.
a) Assumming that the schedule allows 40 days to complete the project. Calculate the probability of completion of
project.
b) The contractor wants project to be completed with 98% chances. How many days it will take?

Immediate
Activity to tm tp
Predessesor
- A 1 2 3
A B 2 4 6
A C 2 6 10
B D 6 8 10
C E 4 6 8
C F 6 10 14
E G 8 10 12
F H 12 14 16
G,H I 4 8 12
G,H J 10 12 14
I K 2 4 6
J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3

A B 2 4 6

A C 2 6 10

B D 6 8 10

C E 4 6 8

C F 6 10 14

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6

A C 2 6 10

B D 6 8 10

C E 4 6 8

C F 6 10 14

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10

B D 6 8 10

C E 4 6 8

C F 6 10 14

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10

C E 4 6 8

C F 6 10 14

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8

C F 6 10 14

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12 10 0.44

F H 12 14 16

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12 10 0.44

F H 12 14 16 14 0.11

G,H I 4 8 12

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12 10 0.44

F H 12 14 16 14 0.11

G,H I 4 8 12 8 1.78

G,H J 10 12 14

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12 10 0.44

F H 12 14 16 14 0.11

G,H I 4 8 12 8 1.78

G,H J 10 12 14 12 0.44

I K 2 4 6

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12 10 0.44

F H 12 14 16 14 0.11

G,H I 4 8 12 8 1.78

G,H J 10 12 14 12 0.44

I K 2 4 6 4 0.44

J L 6 10 14
Immediate
Predessesor
Activity to tm tp tc=(to+4tm+tp)/6 v=σ2=((tp-to)/6)2

- A 1 2 3 2 0.11

A B 2 4 6 4 0.44

A C 2 6 10 6 1.77

B D 6 8 10 8 0.44

C E 4 6 8 6 0.44

C F 6 10 14 10 1.78

E G 8 10 12 10 0.44

F H 12 14 16 14 0.11

G,H I 4 8 12 8 1.78

G,H J 10 12 14 12 0.44

I K 2 4 6 4 0.44

J L 6 10 14 10 1.78
 A(2)
1 2
 3
B(4)

A(2)
1 2
 3
B(4)

A(2)
1 2
C(6)
4
 3
D(8)

B(4)

A(2)
1 2
C(6)
4
 3
D(8)

B(4)

A(2) E(6) 5
1 2
C(6)
4
 3
D(8)

B(4)

A(2) E(6) 5
1 2
C(6)
4
F(10)
6
 3
D(8)

B(4)

A(2) E(6) 5 G(10)

1 2
C(6)
4 7
F(10)
6
 3
D(8)

B(4)

A(2) E(6) 5 G(10)

1 2
C(6)
4 7
F(10)
6 H(14)
 3
D(8)

B(4)

A(2) E(6) 5 G(10) 8

1 2
I(8)
C(6)
4 7
F(10)
6 H(14)
 3
D(8)

B(4)

A(2) E(6) 5 G(10) 8

1 2
I(8)
C(6)
4 7
J(12)
F(10)
6 H(14)
9
 3
D(8)

B(4)

K(4) 10
A(2) E(6) 5 G(10) 8
1 2
I(8)
C(6)
4 7
J(12)
F(10)
6 H(14)
9
 3
D(8)

B(4)

K(4) 10
A(2) E(6) 5 G(10) 8
1 2
I(8)
C(6)
4 7 L(10)

J(12)
F(10)
6 H(14)
9
 E3=6

3
D(8)
E10=54
B(4)

E1=0 E5=14 E8=40

K(4) 10
A(2) E4=8
E(6) 5 G(10) E7=32 8
1 2
I(8)
E2=2
C(6)
4 7 L(10)

J(12)
F(10)
6 H(14)
9
E6=18 E9=44
 E3=6

3 L3=46

D(8)
E10=54
B(4) L10=54

E1=0 E5=14 E8=40

L1=0 L5=22 L8=50 K(4) 10
A(2) E4=8
E(6) 5 G(10) E7=32 8
1 2 L4=8 L7=32

I(8)
E2=2
C(6)
4 7 L(10)
L2=2
J(12)
F(10)
6 H(14)
9
E6=18 E9=44
L6=18 L9=44
 E3=6

3 L3=46

D(8)
E10=54
B(4) L10=54

E1=0 E5=14 E8=40

L1=0 L5=22 L8=50 K(4) 10
A(2) E4=8
E(6) 5 G(10) E7=32 8
1 2 L4=8 L7=32

I(8)
E2=2
C(6)
4 7 L(10)
L2=2
J(12)
F(10)
6 H(14)
9
E6=18 E9=44
L6=18 L9=44
Critical Path = 1-2-4-6-7-9-10

Critical activities = 1-2, 2-4, 4-6, 6-7, 7-9, 9-10

Total Project Duration = 54days

Standard Deviation of the project = σp=√Σσ2ij (for all critical activities)

= √(0.11+1.77+1.78+0.11+0.44+1.78) = 2.45

σp = 2.45
a) Probability to complete in 40 days

Ts = 40 days

Tc = 54 days

Normal Variance (Z)

Ts  Tc 40  54
Z 
p 2.45
Z = -5.71
The probability for Z = -3 is 1.4%
b) Days to complete the project with 98% probability

Here p=0.98,
By Normal Distribution table (taking nearest) Z = 2.05
Ts  54
2.05 
2.45 Ts  Tc
Z
Ts  59.022 p
Ts = 59 days
 Crash Analysis
1) Crashing of the project means to reduce the project duration
2) To reduce the project duration we have to shorten the activities
3) To shorten the activities we need extra resources. Therefore the crashing of the
activity is associated with increse in the cost
Find the optimum project duration and cost of project by crash analysis. Take the indirect cost Rs
80 per day. Penalty cost Rs185 per day. If project duration exceeds over 16 days

Time(days) Cost (Rs)

Preceding
Activity
Activity Normal (TN) Crash (TC) Normal (CN) Crash (CC)

A - 3 2 650 800

B A 5 3 1200 1360

C B,F 7 4 900 1200

D C,E,G 7 5 4500 5100

E B 5 2 750 1350

F A 3 1 120 360

G F 5 2 570 570
 3
B(5) E(5)

DUMMY

A(3) C(7) D(7)

1 2 5 6 7
DUMMY

F(3)
G(5)

4
 E3=8
L3=8

3
B(5) E(5)

E1=0 E5=8 E6=15 E7=22

E2=3 DUMMY
L1=0 L5=8 L6=15 L7=22
L2=3
A(3) C(7) D(7)
1 2 5 6 7
DUMMY

F(3) E4=6
L4=8 G(5)

4
Critical Path = 1-2-3-5-6-7
Critical Activities = A,B,C,D
Total Project Duration = 22days

Critical Activities
1-2 (A)
2-3 (B)
3-5 (DUMMY)
5-6 (C)
6-7 (D)

Cost of Project-
Cost = Direct cost + Indirect Cost + Penalty
Cost = Rs8690 + 22 × 80 + (22-16)×185
Cost = Rs11560 for 22days
Crashing 1
Let us calculate cost slope of all critical activities

Maximum Crashing Possible Cost Slope

Critical Activities ΔT = TN-TC ( day) CS = (CC-CN)/(TN-TC) (per day)

A(1-2) 3-2=1 CS = (800-650)/(3-2) = Rs 150

B(2-3) 5-3=2 CS = (1360-1200)/(5-3) = Rs 80

C(5-6) 7-4=3 CS = (1200-900)/(7-4) = Rs 100

D(6-7) 7-5=2 CS = (5100-4500)/(7-5) = Rs 300

Minimum cost slope

The cost slope of B is minimum E3=6
∴ Let us crash B by 2 days L3=6

3
B(3) E(5)

E1=0 E5=6 E6=13 E7=20

E2=3 DUMMY
L1=0 L5=6 L6=13 L7=20
L2=3
A(3) C(7) D(7)
1 2 5 6 7
DUMMY

F(3) E4=6
L4=6 G(5)

4
∴ Cost of project

Cost = Direct Cost + Indirect Cost + Penalty + Crashing Cost

= Rs8690 + Rs 20×80 + (20-16) ×185 + 2×80

= 11190Rs for 20 days

Crashing 2
Let us calculate cost slope of all critical activities
Maximum Crashing Possible Cost Slope
Crtical Activities ΔT = TN-TC ( day) CS = (CC-CN)/(TN-TC) (per day)

A(1-2) 3-2=1 CS = (800-650)/(3-2) = Rs 150

B(2-3) 5-3=2
×
C(5-6) 7-4=3 CS = (1200-900)/(7-4) = Rs 100

D(6-7) 7-5=2 CS = (5100-4500)/(7-5) = Rs 300

F(2-4) 3-1=2 CS = (1350-750)/(3-1) = Rs 120

Minimum cost slope

The cost slope of C is minimum, hence
Let us crash 'C' by 3 days

Critical Path 1-2-3-5-6-7 or 1-2-4-5-6-7

Total Project Duration = 20days

Critical Activities
1-2 (A)
2-3(B)
5-6(C)
6-7(D)
2-4(F)
 E3=6
L3=6

3
B(3) E(5)

E1=0 E5=6 E6=11 E7=18

E2=3 DUMMY
L1=0 L5=7 12 L6=11 L7=18
L2=3
A(3) C(4) D(7)
1 2 5 6 7
DUMMY

F(3) E4=6
L4=6 G(5)

4
∴ Cost of project

Cost = Direct Cost + Indirect Cost + Penalty + Crashing Cost

= Rs8690 + Rs 18×80 + (18-16) ×185 + (2×80+3×100)

= 10960Rs for 18 days

Crashing 3
Let us calculate cost slope of all critical activities
Maximum Crashing Possible Cost Slope
Crtical Activities ΔT = TN-TC ( day) CS = (CC-CN)/(TN-TC) (per day)

A 1 CS = (800-650)/(3-2) = Rs 150

B
× ×
E 3 CS = (1350-750)/(7-4) = Rs 200

D 2 CS = (5100-4500)/(7-5) = Rs 300

F 2 CS = (1350-750)/(3-1) = Rs 120

G 3 0

Minimum cost slope

 E3=6
L3=6

3
B(3) E(5)

E1=0 E5=6 E6=11 E7=18

E2=3 DUMMY
L1=0 L5=7 12 L6=11 L7=18
L2=3
A(3) C(4) D(7)
1 2 5 6 7
DUMMY

F(3) E4=6
L4=7 G(2)

4
Critical Path = 1-3-6-7

Total Project Duration = 18 days

Critical Activities
A(1-2)
B(2-3)
E(3-6)
D(6-7)

∴ Cost of Project = Direct + Indirect + Penalty + Crash

= 8690+(18×80)+(18-16)×185+(2×80+3×100+0)
= Rs10960 for 18 days
Crashing 4
Let us calculate cost slope of all critical activities
Maximum Crashing Possible Cost Slope
Crtical Activities ΔT = TN-TC ( day) CS = (CC-CN)/(TN-TC) (per day)

A 1 CS = (800-650)/(3-2) = Rs 150

B
× ×
E 3 CS = (1350-750)/(7-4) = Rs 200

D 2 CS = (5100-4500)/(7-5) = Rs 300

Minimum cost slope

Let us crash activity A by 1 day
 E3=5
L3=5

3
B(3) E(5)

E1=0 E5=5 E6=10 E7=17

E2=2 DUMMY
L1=0 L5=6 12 L6=10 L7=17
L2=2
A(2) C(4) D(7)
1 2 5 6 7
DUMMY

F(3) E4=5
L4=6 G(2)

4
Cost = Rs8690 + (17×80)+(17-16)×185+(2×80+3×100+1×150)
Cost = Rs10845 for 17 days

Critical Path = 1-2-3-6-7

Critical Activities = A,B,E,D
Time Duration = 17 days
Crashing 5
Let us calculate cost slope of all critical activities
Maximum Crashing Possible Cost Slope
Crtical Activities ΔT = TN-TC ( day) CS = (CC-CN)/(TN-TC) (per day)

A
× ×
B
× ×
E 3 CS = (1350-750)/(7-4) = Rs 200

D 2 CS = (5100-4500)/(7-5) = Rs 300

Minimum cost slope

Let us crash activity E by 3 days
 E3=5
L3=5

3
B(3) E(2)

E1=0 E5=5 E6=9 E7=16

E2=2 DUMMY
L1=0 L5=5 12 L6=9 L7=16
L2=2
A(2) C(4) D(7)
1 2 5 6 7
DUMMY

F(3) E4=5
L4=5 G(2)

4
Cost = Direct Cost + Indirect Cost+ Penalty + Crashing

= 8690+16×80+0+ (2×80+3×100+1×150+3×200)
= Rs 11180

Since cost is increasing in crashing 5

∴ Ans obtained in crashing 4 is the optimum answer
Optimum Duration = 17days
Optimum cost 10845Rs
Note-
1f it is asked the project till 16days
Cost - 11180Rs

If it is asked to crash the course entirely then crash the remaining

activitiies D and F also