MODULE -3 NETWORK

ANALYSIS AND EXECUTION

PLAN

PROJECT CONSTRUCTION
ALTERNATIVES

FACTORS IN THE CHOICE OF

PROJECT CONSTRUCTION
ALTERNATIVES

CONCEPT OF NETWORK
Conceptually, it can be said that a network diagram is a graphical
presentation of all the activities of a project, arranged in a proper sequence
and with clearly established interdependencies .The network diagram
provides a full picture of the project . The diagram can be presented as:

PERT
There are two basic network techniques: PERT and CPM. PERT is the,
acronym for Program Evaluation Review Technique has a
probabilistic orientation. CPM, an acronym for Critical Path Method
has a deterministic orientation
The common characteristics of
the projects which make them
amenable to analysis by PERT or
CPM are :

1. The project can be broken down into a well-defined set of jobs or

activities.
2. The activities must be performed in a certain sequence which is
technologically ordered.
3. Within a defined sequence, the activities may be started and
stopped in an independent manner.

DEVELOPMENT OF PROJECT NETWORK

Receiv
e
guests

in
v
Se
nd

Network Diagram for a

Dinner Project

ita

tio

ns

Basic to PERT as well as CPM is the network diagram. The network

diagram, also referred to as the project graph, shows the activities and
events of the project and their logical relationships. A simplified net work
diagram for a dinner project is shown below

e
ar
ep er
Pr nn
di

Take
dinner

Development of Project Network

Basic to PERT as well as CPM is the network diagram. The network
diagram, also referred to as the project graph, shows the activities and
events of the project and their logical relationships. A simplified net work
diagram for a dinner project is shown below

Network Diagram for a

Dinner Project

Se
nd
inv
ita
t

ion
s

2
Receive
guests

e
Pr
r
pa
ed
r
ne
in

Take dinner

The network diagram is constructed in terms of activities and events.

1.An activity is a definite task, job, or function to be performed in a project. For
example, prepare dinner is an activity. An activity is represented by an arrow. The
head of the arrow marks the completion of the activity and the tail of the arrow marks
its beginning. (The length and compass direction of the arrow have no significance).
2.An event is a specific point in time indicating the beginning or end of one or more
activities. It represents a milestone and does not consume time or resources. For
example, event 2 marks completion of the activity send invitation.

Development of Project Network

Basic to PERT as well as CPM is the network diagram. The network
diagram, also referred to as the project graph, shows the activities and
events of the project and their logical relationships. A simplified net work
diagram for a dinner project is shown below

Beginning
Beginning of
of
activity
activity

t at

io

ns

Ac
t-1

Network Diagram for a Dinner Project

Arrow
Arrow head
head
End
of
End of
activity
activity

Se

nd

in

vi

Receive
guests Act-3

1
ar
ep
Pr
ed
-2
ct
rA
ne
in

Take dinner Act-4

Development of Project Network

in
vi

ta
t

io

ns

Ac
t-

Basic to PERT as well as CPM is the network diagram. The network

diagram, also referred to as the project graph, shows the activities and
events of the project and their logical relationships. A simplified net work
diagram for a dinner project is shown below
Network Diagram for a Dinner
Project
Arrow
Arrow
Beginning
Beginning
head
head End
End
of
of activity
activity
of
activity
of activity

Se
nd

Receive
guests Act3

e
ar
ep 2
Pr ctA

di
er
nn

Take dinner Act-4

Steps for building net work

Rules for Network Construction

1. Each activity must have a preceding and a
succeeding event. There are 4 activities . Each
activity has preceding and succeeding events
Send invitations 1-2

Prepare dinner 1-3

Receive guests Act- 2-3

Take dinner Act-3-4

2. Each event should have a distinct number.

3. There should be no loops in the project network.
1
3

Loop
2

4. No more than one activity can have the same preceding

and succeeding events.

EXERCISE
A building project consists of the following
activities:
A.Lay foundation
B.Erect frame work
C.Install mill work
D.Install wiring
E.Install plumbing
F.Plaster walls
G.Install sidings
H.Decorate the interior
I.Finish the exterior
Inter relation ship among these activities are:
1.A should precede B
2.B should precede C,D,E,F and G
3.C,D,E,F should precede H
4.G should precede I

Install
Millwork

Erect
Foundation

Install Wiring

lls
Wa

al l
Inst g
in
Sid

r
ste
Pla

l
g
al i n
st b
In lum
P

Decorate
Interior

Fin
ex ish
te
rio
r

Lay
Foundation

ESTIMATION
TIME

Once the logic and detail of the network have been

established, time estimates must be assigned to each
activity. Generally, three time values are obtained for
each activity:
1.

Optimistic time (to)

The optimistic time, to, is the time required if no
hurdles or complications arise.

2.

Most likely time (tm)

The most likely time, tm, is the time in which the
activity is most likely to be completed. This estimate
takes into consideration normal circumstances, making
allowance for some unforeseen delays

3.

Pessimistic time (tp)

The pessimistic time, tp, is the time required if unusual
complications and / or unforeseen difficulties arise.

OBTAINING TIME ESTIMATES

Time estimates should be obtained by the PERT planner from

persons who are responsible for estimation. The following points
should be borne in mind while obtaining time estimates:

Average Time
Once the three estimates for each activity are
obtained, the expected value of activity duration
is calculated. The expected value, te, is usually
obtained by the formula

te =

to + 4 tm + tp
6

Where te = weighted arithmetic average time

to = optimistic time
tm = most likely time
tp = pessimistic time

Activit
y

Opt
te

Most
Likely
tm

Pessimi
stic
tp

Average T0
t0
+4tm+tp/6

1-2

12

21

9+4*12+21/6
=13

1-3

12

18

12

2-4

1.5

3-4

8.5

10

2-5

10

14

24

15

4-5

13

15

12

8
3

2
13

13

15

13

1
0

0
28

12

3
12

18

20

26

28

Critical and Slack Paths

Critical Path = No Slack , No cushion= 1-2-5

2
13

13
a
c
i
t
i
Cr

13

th
a
lP

Cr
it

ica

lP
at
h

1
0

15

0
28

12

3
12

18

20

26

28

Activity Floats

Event Slacks
The slack for an event is the difference between its LOT and
EOT. The slacks for various events of our illustrative project
are shown below.
Event

LOT
In Weeks

EOT
In Weeks

Slack
LOT-EOT
In Weeks

28

28

26

20

18

12

13

13

00

00

2
13

13

15

13

1
0

0
28

12

3
12

18

20

26

28

Critical and Slack Paths

Critical Path = No Slack , No cushion= 1-2-5

2
13

13
a
c
i
t
i
Cr

13

th
a
lP

Cr
it

ica

lP
at
h

1
0

15

0
28

12

3
12

18

20

26

28

Activity Floats

Event Slacks
The slack for an event is the difference between its LOT and EOT. The slacks for
various events of our illustrative project are shown below.

Event

LOT
In Weeks

EOT
In Weeks

Slack
LOT-EOT
In Weeks

28

28

26

20

18

12

13

13

00

00

PURPOSE OF NETWORK ANALYSIS

BASIC DECISIONS
Two basic decisions are important before the network
techniques are deployed:

MULTI-LEVEL SCHEDULING
Different levels of management need different degrees of details in the
schedule plan and network diagram.
When schedules are prepared at multiple levels , it is known as multi
level scheduling. Three to four level schedules can be prepared
depending upon the requirements:

MULTI-PROJECT SCHEDULING

A firm, handling more than one project simultaneously, may

require multi-project planning and resource allocation.

In multi-project scheduling, all projects collectively are

treated as a single project for the breakdown of work
packages, their sequencing and resource allocation.
Activities of one project may have predecessor activities
and/or successor activities
in other projects. It becomes imperative for multi-project
scheduling to follow multilevel scheduling also and plan
for a greater degree of communication, reporting and
coordination.

CATS AND RATS

The term CATS stands for Critical Activity Time Schedule and
the term RATS for Realistic Activity Time Schedule.

CATS can be used to provide stringent time standards for

project execution and can be useful for setting targets for
project teams, machine fabricators and other project
contractors for the completion time.
RATS provide a more realistic time planning; therefore, it
can be used for negotiations with funding agencies, who
would expect timely attainment of major milestones in the
project construction before they would release additional
installment of loan.

STEPS INVOLVED IN NETWORK

TECHNIQUES AND ANALYSIS

APPLICATION OF NETWORK
TECHNIQUES

RESOURCE PLANNING

BUDGETING

PROJECT PLANNING SOFTWARE

Project-management software packages offer facilities to accept
project network data, perform resource analysis, scheduling and
cost analysis, along with generating reports for monitoring of a
project. Popular project management packages are MS Project,
Intellisys Project, Open Mind, Project Kick Start, INSTAPLAN, PRISM
and
many others.

Fig: Ranking of Project Management Software ,2008

DETAILED PROJECT REPORT (DPR)

CONTRACTING
A substantial portion of project is typically executed
through contracts assigned to the external contractors.

Types of Contracts

PROJECT ORGANIZATION
A firm would require the right type of organizational
structure for the construction of a project . The firm would
have that organizational structure, which would suit the
needs
of
routine
operations.
Project
structure
is
superimposed on the existing organizational structure. The
overlapping of the two structures does create problems.
The firm has to answer the following questions while making
the choice of project organization:
a) How much independence should be given to the project
team?
b) Where should a project organization fit in the total
organization?
c) How should people be assigned to the project?

TYPES OF ORGANIZATIONS

PROJECT SUB-TEAMS AND

EMPOWERMENT
Each activity is planned, its relationship
with other activities, if any are
determined, resources for performing
each activity are determined and then
each activity is assigned to a project subteam. Sub-teams have to be formed as
per the expertise needed and activities
are assigned to each sub-team. Their
powers and responsibilities have to be
determined based on the criticality of the
activities assigned to them.