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    Operational Research Level 4Operational Research Level 4

    Prepared byPrepared by T.M.J.A.CoorayT.M.J.A.CoorayDepartment ofDepartment of MathematicsMathematics

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 11

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    Given:Given: Statement of workStatement of work written description of goalswritten description of goals

    work & time frame of projectwork & time frame of project Work Breakdown StructureWork Breakdown Structure

    Be able to: develo recedenceBe able to: develo recedencerelationship diagram which showsrelationship diagram which showsse uential relationshi of ro ect activitiesse uential relationshi of ro ect activities

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    Popular tool for project schedulingPopular tool for project scheduling Gra h with bar re resentin time for eachGra h with bar re resentin time for each

    tasktask

    Also shows slack for activitiesAlso shows slack for activities amoun o me ac v y can e e ayeamoun o me ac v y can e e aye

    without delaying project)without delaying project)

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    20 4 106 8Month

    Activity

    Design house andobtain financing

    Lay foundation

    Order and receivematerials

    Build house

    Select paint

    Select carpet

    Finish work

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    31 5 7 9

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    Critical Path Method (CPM)Critical Path Method (CPM) -- u on em ng onu on em ng on-- anan

    -- deterministic task timesdeterministic task times -- -- --

    Pro ect Evaluation & Review Techni uePro ect Evaluation & Review Techni ue(PERT)(PERT)

    -- U.S. Navy, Booz, Allen & HamiltonU.S. Navy, Booz, Allen & Hamilton -- multiple task time estimates( probabilistic)multiple task time estimates( probabilistic)

    -- activityactivity--onon--arrow network construction (AOA)arrow network construction (AOA)

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    In AON, nodes represent activities &In AON, nodes represent activities &arrows show recedence relationshi sarrows show recedence relationshi s In AOA, arrows represent activities &In AOA, arrows represent activities &

    nodes are events for oints in timenodes are events for oints in timeAn event is the completion or beginningAn event is the completion or beginning

    of an activitof an activitA dummy shows precedence for twoA dummy shows precedence for two

    activities with same start & end nodesactivities with same start & end nodes

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    Network consists of branches & nodesNetwork consists of branches & nodes

    Branch

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    1 32Construct forms Pour concrete

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    Consider the following table which describesConsider the following table which describesthe activities to be done to build a housethe activities to be done to build a house

    ActivityActivity predecessors Durationpredecessors Duration

    Design house and obtain financingDesign house and obtain financing --

    BB Lay foundationLay foundation A 2A 2Order and receive materialsOrder and receive materials

    DD Build houseBuild house B,C 3B,C 3

    Select paintSelect paint ,,

    FF Select carpetSelect carpet E 1E 1

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    n s wor n s wor ,,

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    3

    DummyLayLay foundation

    422 3

    Order materialr er ma er a

    Incorrect Correctprecedence

    relationshipprecedence

    relationship

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    3Lay foundation Dummy

    1 2 4 6 73

    2

    1

    3 1Desi n house Order and

    Finish

    work

    Build

    house

    5

    1

    and obtain

    financing

    receive

    materialsSelect

    carpet

    Select

    paint

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    A path is a sequence of connected activitiesA path is a sequence of connected activities

    running from the start to the end node in arunning from the start to the end node in a

    The critical path is the path with the longestThe critical path is the path with the longesturation in t e networuration in t e networ

    time of the critical path (under normaltime of the critical path (under normalcircumstances)circumstances)

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    path1:path1: 11--22--33--44--66--773 + 2 + 0 + 3 + 1 = 9 months; the critical path3 + 2 + 0 + 3 + 1 = 9 months; the critical path

    path2:path2: 11--22--33--44--55--66--77

    3 + 2 + 0 + 1 + 1 + 1 = 8 months3 + 2 + 0 + 1 + 1 + 1 = 8 monthspa :pa : -- -- -- --

    3 + 1 + 3 + 1 = 83 + 1 + 3 + 1 = 8 monthsmonths

    -- -- -- -- --

    3 + 1 + 1 + 1 + 1 = 73 + 1 + 1 + 1 + 1 = 7 monthsmonths

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    (Housebuilding example)(Housebuilding example)

    ESES -- earliest time activity can startearliest time activity can start

    network to determine ES timesnetwork to determine ES times= ac v y me= ac v y me

    ESESijij = maximum (EF= maximum (EFii)) i

    EFEFijij = ES= ESijij + t+ tijij ESES1212 = 0= 0

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    EFEF1212 = ES= ES1212 + t+ t1212 = 0 + 3 = 3 months= 0 + 3 = 3 months

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    --ESES

    2323

    = max (EF= max (EF22

    ) = 3 months) = 3 months

    -- ESES4646 = max (EF= max (EF44) = max (5,4) = 5 months) = max (5,4) = 5 months

    -- EFEF4646 = ES= ES4646 + t+ t4646 = 5 + 3 = 8 months= 5 + 3 = 8 months

    -- EFEF6767 =9 months, the project duration=9 months, the project duration

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    LSLS -- latest time activity can be startedlatest time activity can be started

    without delaying the projectwithout delaying the project

    Backward pass starts at end of network toBackward pass starts at end of network to

    determine LS timesdetermine LS times LFLF -- latest time activity can be completedlatest time activity can be completed

    without delaying the projectwithout delaying the project LSLSijij = LF= LFijij -- ttijij LFLFijij = minimum (LS= minimum (LSjj))

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    If a deadline is not given take LF of theIf a deadline is not given take LF of the

    project to be EF of the last activityproject to be EF of the last activity 6767 ==

    LSLS6767 = LF= LF6767 -- tt6767 = 9= 9 -- 1 = 8 months1 = 8 months 5656 66

    LSLS5656 = LF= LF5656 -- tt5656 = 8= 8 -- 1 = 7 months1 = 7 months

    2424 44 ,,monthsmonths

    LSLS = LF= LF -- tt = 5= 5 -- 1 = 4 months1 = 4 months

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    3ES=3, EF=5LS=3, LF=5

    = , =

    LS=5, LF=5

    = = ES=8, EF=9

    1 2 4 6 73

    2

    1

    3 1ES=0, EF=3

    LS=5, LF=8 LS=8, LF=9

    ES=3, EF=4

    5

    1LS=0, LF=3 ES=6, EF=7

    LS=7, LF=8

    LS=4, LF=5

    ES=5, EF=6

    = =,

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    Activit SlackActivit Slack

    -- --

    Activities on critical path have ES = LS &Activities on critical path have ES = LS &==

    SSijij = LS= LSijij -- ESESijij

    ijij == ijij -- ijij

    SS = LS= LS -- ESES = 4= 4 -- 3 = 1 month3 = 1 month

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    Total slack/float or Slack of an activityTotal slack/float or Slack of an activity

    TotalTotal slack/slack/ floatfloat meansmeans thethe amountamount ofof

    withoutwithout affectingaffecting thethe entireentire projectprojectcomp e oncomp e on meme..

    TheThe activitactivit onon aa iveniven athath shareshare thethemaximummaximum possiblepossible slackslack of of thethe activityactivity

    .. SumSum of of thethe possiblepossible slacksslacks of of thethe

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 2020

    ac v esac v es cancan nono exceeexcee ee max mummax mumslackslack alongalong thatthat pathpath..

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    an activity which does not affect itsan activity which does not affect itsimme iate successors.imme iate successors.

    FSFSijij = ES= ESjj EFEFijijFF34=ES4FF34=ES4--EF34 =5EF34 =5--5=05=0FF24=ES4FF24=ES4--ES24=5ES24=5--4=14=1

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    ActivityActivity ESES LSLS EFEF LFLF Slack (S) Free slackSlack (S) Free slack

    11--2*2* 00 00 33 33 0 00 0

    22--33 33 33 55 55 0 00 0

    --

    33--4*4* 55 55 55 55 0 00 0

    44--55 55 66 66 77 1 01 0

    44--6*6* 55 55 88 88 0 00 0

    55--66 66 77 77 88 1 11 1

    --

    * Critical path* Critical path

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    0 2 4 6 8 10

    Activity

    Design house and

    Lay foundation

    Order and receivema er a s

    Build house

    Select aint

    Select carpet

    Finish work

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    1 3 5 7 9

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    Reflect uncertainty of activity timesReflect uncertainty of activity times Beta distribution is used in PERTBeta distribution is used in PERT

    a + 4m + bt =

    b - a

    6

    (Variance: 2 =

    where

    2

    a = optimistic estimate

    m = most likely time estimate

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    b = pessimistic time estimate

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    (tim

    e)

    (tim

    e)

    ba m btam

    ime)

    t

    P(

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 2525

    m = t ba

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    Equipment testingand modification

    DummyEquipmentinstallation

    Finaldebugging

    1 83 5 9

    System

    Training

    TestingSystem

    Testing

    development

    changeover

    Job

    Orientation

    oston

    recruitingtraining

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    Activit InformationActivit InformationTime estimates (wks) Mean Time Variance

    Activity a m b t 2

    1 - 2 6 8 10 8 .44

    1 - 3 3 6 9 6 1.001 - 4 1 3 5 3 .44

    2 - 5 0 0 0 0 .00

    2 - 6 2 4 12 5 2.78

    3 - 5 2 3 4 3 .11

    4 - 5 3 4 5 4 .11

    4 - 7 2 2 2 2 .00

    5 - 8 3 7 11 7 1.785 - 7 2 4 6 4 .44

    7 - 8 0 0 0 0 .00

    -

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 2727

    .

    8 - 9 1 10 13 9 4.00

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    Early And Late TimesEarly And Late Times

    Activity t ES EF LS LF S FS?

    11 -- 22 88 0.440.44 00 88 11 99 11

    11 -- 33 66 1.001.00 00 66 00 66 00

    --

    22 -- 55 00 0.000.00 88 88 99 99 11

    22 -- 66 55 2.782.78 88 1313 1616 2121 88-- ..

    44 -- 55 44 0.110.11 33 77 55 99 22

    44 -- 77 22 0.000.00 33 55 1414 1616 1111

    -- ..55 -- 77 44 0.440.44 99 1313 1212 1616 33

    77 -- 88 00 0.000.00 1313 1313 1616 1616 33

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 2828

    -- ..

    88 -- 99 99 4.004.00 1616 2525 1616 2525 00

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    ( )ES=8, EF=13LS=16 LF=21

    ( )ES=8, EF=8LS=9, LF=9

    ( )

    E = , EF=

    LS=1, LF=98

    0

    5

    4( )

    ES=13, EF=17

    LS=21 LF=25

    1 83 5 9= =

    ( )ES=0, EF=6

    LS=0, LF=6 93

    ( )ES=9, EF=16

    LS=9, LF=16= =

    ( ),

    LS=6, LF=9

    ES=0, EF=3 04 ( )ES=9, EF=13

    LS=12, LF=16

    ( ),

    LS=16 LF=25

    LS=2, LF=53 4

    2

    ( )= , =

    LS=5, LF=9( )

    ,

    LS=16 LF=16

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 2929

    ( )ES=3, EF=5LS=14, LF=16

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    Project variance is theProject variance is the sum of the variancessum of the variancesalong the critical pathalong the critical path

    22 22 22 22 221313 3535 5858 8989

    = 1.00 +0.11 + 1.78 + 4.00= 1.00 +0.11 + 1.78 + 4.00

    = 6.89 weeks= 6.89 weeks

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    completed (project completion time is )completed (project completion time is )within a s ecified eriod of timewithin a s ecified eriod of time

    wherewhere

    == ==

    Z =x -

    pp = project standard deviation= project standard deviation

    Z = number of standard deviations of x fromZ = number of standard deviations of x from

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    Probability),(~ X

    =z

    Z

    = t Timex

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    Standard Normal Distribution OfStandard Normal Distribution Of

    transformed Project Timetransformed Project TimeProbability

    )1,0(~ NZ

    Z

    =0 Timez

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    What is the probability that the project isWhat is the probability that the project is

    completed within 30 weeks?completed within 30 weeks?

    P(XP(X 30) = ?30) = ?22 = 6.89 weeks= 6.89 weeks

    == 6.896.89 = 2.62 weeks= 2.62 weeks

    Z = xZ = x -- =30=30 -- 25 = 1.9125 = 1.91

    P ZP Z 1.91 = ?1.91 = ?

    2.62

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    Determining Probability

    From Z Value

    Z 0.00 0.01 .. 04 0.09. . .

    +0.4719

    . . . .

    1.9 0.4713 0.4767

    .. .. ..

    P( x < 30 weeks) = 0.50+ 04719

    = 0.9719

    MA 4020MA 4020 --Network AnalysisNetwork Analysis 3535

    = 25 Time (weeks)x = 30

    What is the probability that the project willWhat is the probability that the project will

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    What is the probability that the project willWhat is the probability that the project will

    22 - 25 -32.62 2.62=Z = = -1.14

    P(Z< -1.14) = 0.1271

    P( x< 22 weeks) = 0.1271

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    Useful at many stages of projectUseful at many stages of projectmana ementmana ement Mathematically simpleMathematically simple

    Gives critical path & slack timeGives critical path & slack time

    Provides project documentationProvides project documentation Useful in monitorin costsUseful in monitorin costs

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    Networks generated provide valuableNetworks generated provide valuableproject documentation and graphicallyproject documentation and graphicallypoint out who is responsible for variouspoint out who is responsible for various

    project activitiesproject activitiesApplicable to a wide variety of projectsApplicable to a wide variety of projects andand

    industriesindustriesUseful in monitoring not only schedules, butUseful in monitoring not only schedules, but

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    Assumes clearly defined, independent,Assumes clearly defined, independent,& stable activities& stable activities Specified precedence relationshipsSpecified precedence relationships

    beta distributionbeta distribution

    u v m mu v m m

    OverOver--emphasis on critical pathemphasis on critical path

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