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    FORMATION OF NETWORKDIAGRAM AND

    CPM

    Presentation by : Vandana TibbaniSourabh Harwani

    Mamta Singh

    Shrijika Jain

    MBA(FA) SEM III

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    NETWORK DIAGRAM

    Network analysis is the general name given to certain specific

    techniques which can be used for the planning, management

    and control of projects

    The aim of planning is to develop a sequence of activities ofthe project , so that project completion time and cost are

    properly balanced and excessive demand of key resources is

    avoided.

    PERT AND CPM are techniques used for planning scheduling

    and controlling of large complex projects .

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    SITUATIONS IN WHICH PERT

    AND CPM is used The project consist of well defined collection of

    activities or tasks.

    The activities can be started and terminatedindependently of each other .

    The activities are ordered so that they can be

    performed in a technological sequence.

    Thus a precedence relationships exist whichpreclude the start of certain activities until others

    are completed.

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    Why PERT/CPM?

    Prediction of deliverables

    Planning resource requirements

    Controlling resource allocation

    Internal program review

    External program review

    Performance evaluation Uniform wide acceptance

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    Project Network Use of nodes and arrows

    Arrows An arrow leads from tail to head directionally

    Indicate ACTIVITY, a time consuming effort that is required toperform a part of the work.

    Nodes A node is represented by a circle

    - Indicate EVENT, a point in time where one or more activities startand/or finish.

    5

    Activity

    A task or a certain amount of work required in the project

    Requires time to complete

    Represented by an arrow

    Dummy Activity

    Indicates only precedence relationships

    Does not require any time of effort

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    Event Signals the beginning or ending of an activity

    Designates a point in time

    Represented by a circle (node) Network

    Shows the sequential relationships among activitiesusing nodes and arrows

    6

    Activity-on-node (AON)

    nodes represent activities, and arrows show precedence

    relationships

    Activity-on-arrow (AOA)

    arrows represent activities and nodes are events for points intime

    Project Network

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    Basic Logic Patterns for Arrow Diagrams

    i jActivity

    Event

    (a) Basic Activity

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    Basic Logic Patterns for Arrow Diagrams (cont.)Basic Logic Patterns for Arrow Diagrams (cont.)

    2A

    (b) Independent Activities

    4 10B

    12

    3A

    6B

    9

    (c) Dependent Activities

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    RULES :

    Events are identified by numbers successors

    event no. > preceding nos.

    No duplication of events numbers in anetwork.

    A network should have only one initial & one

    terminal node.

    The length & bearing of arrow are of no

    significance.

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    Basic Logic Patterns for Arrow Diagrams (cont.)Basic Logic Patterns for Arrow Diagrams (cont.)

    2

    A

    (d) A Merge

    4

    6B

    8

    (e) A Burst

    C

    Activity C depends upon the completion of both Activities A & B

    8

    A

    6

    2

    B

    4C

    Activities B and C both depend upon the completion of Activity A

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    Basic Logic Patterns for Arrow Diagrams (cont.)

    (f) A Cross

    20

    18C

    16 D

    14

    A12

    B

    Activities C and D both depend upon the completion of Activities A and B

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    The use of dummy to maintain unique numbering of activitiesThe use of dummy to maintain unique numbering of activities

    10

    8C

    6D

    4

    A2

    B

    10

    8C

    6

    4

    A2

    Divide node to correct

    (a) Incorrect Representation

    (b) Correct Representation

    D5

    B

    Dummy

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    The use of dummy to maintain unique numbering of activities (cont.)The use of dummy to maintain unique numbering of activities (cont.)

    4 10

    4 10

    11

    A

    B

    A

    B

    Divide node to correct

    Dummy

    (a) Incorrect Representation

    (b) Correct Representation

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    Removal ofRedundant Dummies

    A

    A

    A

    A

    B

    B

    B

    B

    C C

    Original Diagram Diagram after removal of

    redundant dummies

    (a)

    (b)

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    Removal of Redundant Dummies (cont.)

    A

    A

    A

    A

    C

    C

    B

    C

    B B

    Original Diagram Diagram after removal of

    redundant dummies

    (c)

    (d)

    B E

    C

    E

    E E

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    Combining Beginning and Ending Nodes (cont.)Combining Beginning and Ending Nodes (cont.)

    2 8 12A E

    4 14

    6 10 16C F

    B

    2

    10

    8

    16

    (a) Incorrect Representation

    (b) Correct Representation

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    AOA Project Network for House

    darla/smbs/vit 17

    3

    2 0

    1

    3

    1 1

    11 2 4 6 7

    3

    5

    Lay foundation

    Design house

    and obtain

    financing

    Order and

    receive

    materials

    Dummy

    Finishwork

    Select

    carpet

    Select

    paint

    Buildhouse

    AON Project Network for House

    1

    3

    2

    2

    4

    3

    3

    1 5

    1

    6

    1

    7

    1Start

    Design house and

    obtain financing

    Order and receivematerials Select paint

    Select carpet

    Lay foundations Build house

    Finish work

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    EXAMPLE :A work consist of projects consist of twelve labeled A through L .Upon

    being asked to specify the order in which the jobs had been done ,themanager laid down following steps:

    And the precedence relationship between them is as follows :

    Activity Immediate Predecessor

    A -

    B -C -

    D A,B

    E B

    F B

    G C,F

    H B

    I E,H

    J E.H

    K C,D,F ,I

    l K

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    AN EXAMPLE

    1

    4

    5

    A

    C

    6 9

    E

    3 7 8

    B

    F

    2

    H

    I

    D

    G

    J

    K

    L

    Activi

    ty

    Immediate

    Predecess

    or

    A -

    B -

    C -

    D A,B

    E B

    F B

    G C,F

    H B

    I E,HJ E.H

    K C,D,F ,I

    l K

    Tasks are Arrows

    Events are Circles

    Critical Tasks are Thick Arrows

    Dummy Tasks are Dashed Arrows

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    CPM calculation

    Path

    A connected sequence of activities leading from

    the starting event to the ending event

    Critical Path

    The longest path (time); determines the project

    duration Critical Activities

    All of the activities that make up the critical path

    20

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    Generate Initial CPM Diagram

    Must strictly enforce all prerequisite relationships.

    Number of events is initially unknown

    Critical path is initially unknown

    Iterative Process

    Try to minimize number of Dummy Tasks

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    So according to diagram seen

    the critical paths will be :Activity Immediate

    Predecessor

    Time(DAYS)

    A - 6

    B - 4

    C -10

    D A,B 1

    E B 1

    F B 3

    G C,F 14

    H B 6

    I E,H 9

    J E.H 2

    K C,D,F ,I 7

    l K 5

    PATHS LENGTH

    1-3-7-8-9 19

    1-2-3-7-8-9 17

    1-2-4-5-7-8-9 19

    1-2-5-7-8-9 24*critical

    1-2-5-9 19

    1-2-4-5-9 14

    1-2-6-7-8-9 19

    1-2-6-9 211-6-7-8-9 22

    1-6-9 24*critical

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    Forward Pass Earliest Start Time (ES)

    earliest time an activity can start

    ES = maximum EF of immediate predecessors Earliest finish time (EF)

    earliest time an activity can finish earliest start time plus activity time

    EF= ES + t

    23

    Latest Start Time (LS)

    Latest time an activity can start without delaying critical path time

    LS= LF - t

    Latest finish time (LF)

    latest time an activity can be completed without delaying critical path time

    LS = minimum LS of immediate predecessors

    Backward Pass

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    CPM analysis Draw the CPM network

    Analyze the paths through the network

    Determine the float for each activity

    Compute the activitys float

    float = LS - ES = LF - EF

    Float is the maximum amount of time that this activity can

    be delay in its completion before it becomes a critical

    activity, i.e., delays completion of the project

    Find the critical path is that the sequence of activities and

    events where there is no slack i.e.. Zero slack Longest path through a network

    Find the project duration is minimum project completion time

    24

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    EXAMPLE :FOR FLOATATION

    1

    5

    7

    6

    8

    4

    3

    2

    F,10F,10

    A,2A,2 E,6E,6

    B,7B,7

    C,8C,8

    D,3D,3

    G,4G,4

    H,6H,6

    J,5J,5

    K,6K,6

    I,2I,2

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    EXAMPLE :ES- EF TIME

    1

    5

    7

    6

    8

    4

    3

    2

    F,10F,10

    A,2A,2

    E,6E,6

    B,7B,7

    C,8C,8

    D,3D,3

    G,4G,4

    H,6H,6

    J,5J,5

    K,6K,6

    I,2I,2

    20

    0 7

    52

    137

    80 148

    177

    117

    1513

    2217

    2115

    Projects EF =Projects EF = 2222

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    EXAMPLE :CRITICAL PATH

    1

    5

    7

    6

    8

    4

    3

    2

    F,10F,10

    A,2A,2

    E,6E,6

    B,7B,7

    C,8C,8

    D,3D,3

    G,4G,4

    H,6H,6

    J,5J,5

    K,6K,6

    I,2I,2

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    DETERMINATION OF CRITICAL PATH

    RULES :

    1) If an activity the ES times equals LF time at the head

    of the arrow and if the ES time equals the LF Time at

    the tail of the arrow ,the activity is possibly a critical

    activity path

    1) The e difference between the ES time at the head of

    the arrow and the ES time at the tail of the arrow is

    equal to the duration of the activity

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    We have seen that critical activities should have float

    has 0 which is determined by total float whichrepresents amount of time by which it can be delayed

    without delaying the project completion date

    TOTAL FLOAT = LF-EF or LS ES or

    LF- ES duration of activityEXAMPLE in activity 2-5 it is 14-2-3= 9 days

    INTERFERING FLOAT :the part of total float which

    causes a reduction in the float of the successoractivates.

    EX- for activity 2-5 the the lf=14 while 5-7 is ES=13 the

    interfing float is 14-13 =1

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    FREE FLOAT : total float which can be used without affecting

    the float of succeeding activitiesFor example: activity 2-5 total float is 9 days the free float is 8( LS

    of succeeding activity 13 Ef of the activity 5)

    FREE FLOAT= Total float head slack

    Head slack can be defined as the difference between the earliestand latest event times (14-13=1;9-1=8)

    Independent float=

    ES for following activity LF for preceding activity duration of

    present activity the amount of float which can be used without

    affecting either head or the tail events

    For example for activity 2-5 13-11-3=-1

    It is taken as zero as negative not considered

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    33

    PROJECT MANAGEMENT:

    THE 3 PHASES AND 10 STEPS

    Step 1: Project Decomposition

    Step 2: Specification of the Precedence Relationships

    Step 3: Estimation of the Activity DurationsPhase I: Project Formulation

    Step 4: Construction of the Project Network

    Step 5: Computation of Each ActivitysEarliest Start

    Time and Earliest Finish Time

    Step 6: Computation of Each Activitys Latest Start Timeand Latest Finish Time

    Step 7: Computation of Each Activitys Total SlackandIdentification of the Critical Path

    Phase II: Planning & Scheduling

    Step 8: Scheduling the ActivitiesStep 9: Monitoring of the Projects Activities

    Phase III: Monitoring & Replanning Step 10: Replanning of the Remaining Portion of theProject

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    THANK U