Unit 2

Network Techniques in Project Management

By:
Dr. Jitendra Singh Yadav
Assistant Professor, Dept of Civil Engineering
National Institute of Technology Hamirpur

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 Network Methods
•It is a graphical depiction of project tasks and their inter-relationships.
•The distinguishing feature of a network diagram is that the ordering of tasks is shown by connecting
with its predecessor and successor tasks.
•The deficiencies of bar charts can be eliminated to a large extent by showing the interdependence of
various activities by means of connecting arrows called network technique.
•Network analysis is the general name given to certain specific techniques which can be used for the
planning, management and control of projects.
•Network diagramming is a critical path scheduling technique used for controlling resources.
Critical path scheduling technique: A Scheduling Technique whose order and duration of a
sequence of task activities directly affect the completion date of a project.
Two Major Network systems:
CPM - Critical Path Method
- Project Evaluation & Review Techniques.
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 Why PERT and CPM
The PERT/CPM is capable of giving answers to the following questions to the project manager :
•When will the project be finished ?
•When is each individual part of the scheduled to start and finish ?
•Of the numerous jobs in the project, which one must be timed to avoid being late ?
•Is it possible to shift resources to critical jobs of the project from other non-critical jobs of the project
without affecting the overall completion time of the project ?
•Among all the jobs in the project, where should management concentrate its efforts at one time ?

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 COMPONENTS of PERT/CPM NETWORK
PERT / CPM networks contain two major components
i. Activities, and
ii. Events
Activity: An activity represents an action and consumption of resources (time, money, energy)
required to complete a portion of a project. Activity is represented by an arrow,

•An activity is the actual performance of a task.

•It requires time and resources for its completion.
Examples:-
Excavate Trench, Mix Concrete, Prepare Specifications, Assemble parts, Preparing Budget

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 COMPONENTS of PERT/CPM NETWORK
Event: An event (or node) will always occur at the beginning and end of an activity. The event
has no resources and is represented by a circle (generally). The ith event and jth event are the tail
event and head event respectively.

•An event is either start or completion stage of an activity.

•It indicates a point in time and does not require any resources.
•An event is that particular instant of time at which some specific part of a plan is to be achieved.
Examples of Events:- Design completed, Excavation completed, Lathe installed, Parts assembled

It is represented by nodes in a network which may be-

Circular Square Rectangular

Oval
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The activates and event are connected logically and sequentially to form a network.
Ex:

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 Network Methods: CPM - Critical Path Method
•E I Du Pont de Nemours & Co. (1957) for construction of new chemical plant and maintenance shut-down.
•CPM is a network diagramming technique used to predict total project duration.
•A critical path for a project is the series of activities that determines the earliest time by which the project can
be completed.
• CPM is primarily concerned with the trade-off between cost and time.
•It has been applied mostly to projects that employ fairly stable technology and are relatively risk free.
•Hence its orientation is ‘deterministic. (activity orientated)
• Used for repetitive type of work.
USED IN :
Production management - for the jobs of repetitive in nature where the activity time estimates can be predicted
with considerable certainty due to the existence of past experience.

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 Network Methods: PERT - Project Evaluation & Review Techniques
•PERT stands for Project Evaluation and Review Technique developed during 1950’s.
•The technique was developed and used in conjunction with the planning and designing of the Polaris
missile project.
•Project management - for non-repetitive jobs (research and development work), where the time and
cost estimates tend to be quite uncertain.
•This technique uses probabilistic time estimates.
•PERT is a technique used to calculate the Expected Time for a tasks.
•Event orientated successive events are joined by arrows.
•Example : foundation layout construction: “Foundation excavated; “ side broad fixed, “ Concreting
completed, etc.

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 Network Methods: PERT - Project Evaluation & Review Techniques
USED IN :
•PERT is suitable for research and development and programmes, aerospace projects, other projects involving new
technology.
•In such projects the time required for completing various jobs or activities can be highly variable.
•Hence the orientation of PERT is probabilistic.

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 Ex. Project of purchasing a new heavy duty lathe machine and disposal of the old lathe.
•Await delivery of lathe
•Remove existing lathe,
•Install power supply,
•Install lathe
•Connect to power,
•Test,
•Dispose of existing lathe. Event oriented

Activity oriented

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 Advantages and Limitations of CPM and PERT
ADVANTAGES: •A critical path for a project is the series of activities that
– Precedence relationships
determines the earliest time by which the project can be
– large projects
– more efficient completed.
•The critical path is the longest path through the network
Benefits of CPM/PERT
diagram and has the least amount of slack or float.
•Useful at many stages of project management
•Mathematically simple •Slack or float is the amount of time an activity can be delayed
•Give critical path and slack time without delaying a succeeding activity or the project finish date.
•Provide project documentation
•Useful in monitoring costs

Limitations to CPM/PERT
•Clearly defined, independent and stable activities
•Specified precedence relationships
•Over emphasis on critical path
•It is difficult to estimate accurate time & cost of various activities involved in a project.
•Errors in estimation makes the PERT charts unreliable as a control aid.
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 Comparing CPM and PERT
Both CPM and PERT provide the user with project management tools to plan , monitor and update their project
as it progress.
Similarities between CPM and PERT
•Both follow the same steps and use network diagrams.
•Both are used to plan the scheduling of individual activates that make up project.
•They can be used to determine the earliest/ latest start and finish times for each activity.
Differences between PERT and CPM
•PERT is probabilistic whereas CPM is deterministic
•In CPM, estimates of activity duration are based on historical data
•In PERT, estimates are uncertain and we talk of ranges of duration and probability that an activity duration will
fall into the ranges.
•CPM concentrates on Time/cost trade off.

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 Summary
•Critical Path Method (CPM)
–Deterministic task times
– Activity oriented network diagram
–Repetitive nature of jobs
•Project Evaluation and Review Technique (PERT)
–Multiple task time estimates (probabilistic nature)
–Event oriented network diagram
–Non-repetitive jobs (R & D work)

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 Difference Between CPM and PERT
CPM PERT
CPM network is Activity Oriented. PERT network is Event Oriented.
There is single computation of activity completion time There are 3 time estimates made on the basis of which
which is called activity time. activity expected completion time is computed
It is based on deterministic approach. It is based on probabilistic approach in which time
uncertainty can be accounted.
Time & Cost are related in which minimum cost occur at In PERT cost is directly proportional to time, hence
optimum time. minimum cost will be achieved corresponding to minimum
completion time.
Here emphasis is laid on breaking the projects into various Here emphasis is laid on breaking project in terms of
activities . milestones which were planned to occur completion of
project
Minimizing cost is more important (cost is the Meeting time target or estimating percent completion is
controlling factor) more important (time is controlling factor)
Used where times can be estimated with confidence, Used where times cannot be estimated with confidence.
familiar activities Unfamiliar or new activities
CPM is suitable for repetitive type of work such as PERT technique is suitable for new type of projects which
construction projects. are non repetitive in nature.
Ex. Research Work.
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 GANTT CHART vs. PERT CHART
•GANTT chart visually shows the duration of Tasks whereas a PERT chart visually shows the sequence
dependencies between tasks.
•GANTT visually shows the Time overlap of Tasks whereas a Network does not show time overlap but
does show which tasks could be done in parallel.
•Some form of GANTT chart can visually show Slack Time available within an Earliest Start and Latest
finish time..
•Most Project Managers find PERT very helpful for scheduling, monitoring and controlling Projects.
•PERT is recommended for Large Projects with high inter task dependencies and the GANTT chart for
simpler Projects.
•Most Project Management Case Tools nowadays (eg. MS-Project ) allow the best feature of PERT to be
incorporated into GANTT Charts.
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 Characteristics of CPM/PERT Projects
•The project to be planned by network technique should consist of clearly recognizable jobs or operations
, usually called as Activates.
•These jobs, operations or activates must have definite commencement and completion. The start or end
of a job or operation or activity is called an event.
•The events must occur in a definite pattern and must be performed in a logical sequence .

PERT / CPM networks contain two major components

i. Events
ii. Activities

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 COMPONENTS of PERT/CPM NETWORK
Event: An event (or node) will always occur at the beginning and end of an activity. The event
has no resources and is represented by a circle (generally). The ith event and jth event are the tail
event and head event respectively.

•An event is either start or completion stage of an activity.

•It indicates a point in time and does not require any resources.
•An event is that particular instant of time at which some specific part of a plan is to be achieved.
Examples of Events:- Design completed, Excavation completed, Lathe installed, Parts assembled

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 COMPONENTS of PERT/CPM NETWORK
Properties of event
•Either the start or completion of an activity.
•Act as control point in a project.
•An event is an accomplishment occurring at an instantaneous point in time, but requiring no time or
resources itself.
Required Following:
•Must be positive, specific, tangible and meaningful to the project. Square
•Definitely distinguishable as a specific point in time. Rectangular

•Readily understood by all concerned with the project.

It is represented by nodes in a network which may be-
Circular
Oval

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 COMPONENTS of PERT/CPM NETWORK
Types of Events:
• Tail Event: A tail event is the one which marks the beginning of an activity. It has only outgoing
arrows.
Represent the start of project

• Head Event: All activates have ending i.e again a specific point of time and is marked by an event.
Events which has only incoming arrows.

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 COMPONENTS of PERT/CPM NETWORK
Types of Events:
• Dual role event: Other than head and tail events, which has both incoming and outgoing arrows are
known as Dual role events.
• It is head event to some activity and tail event to other activity.
• All event except initial and final events are dual role event.

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 COMPONENTS of PERT/CPM NETWORK
Example:

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 COMPONENTS of PERT/CPM NETWORK
Inter-relationship between Events
The order or sequences related to various event:
Successor event: The event/events follow other event
Predecessor event: The event/events that occur before another event.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Activity: An activity represents an action and consumption of resources (time, money, energy)
required to complete a portion of a project. Activity is represented by an arrow,

•An activity is the actual performance of a task.

•It requires time and resources (man power, materials, space, facilities) for its completion.
Examples:-
Excavate Trench, Mix Concrete, Prepare Specifications, Assemble parts, Preparing Budget

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Properties of activities:
• a positive, specific, and meaningful effort.
•Primary responsibility of effort can be determined.
•Having a description understandable by all concerned with the project.
•Having time span
It is represented by arrow usually drawn from left to right. It is not vector quantity.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Inter-relationship between activities : Depending upon the interdependency
•Parallel activities
•Serial activities

Parallel Activities : Performed simultaneously and independently to each other.

Serial Activities: Performed one after the other in succession.

Cannot performed independently.
P : Preceding Activity
Q: Successor Activity

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Inter-relationship between activities :
Preceding Activity: Performed before another job or activity can begin
Successor Activity: Performed after the performance of other activity

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Dummy Activity
•An imaginary activity which does not consume any resource and time is called a dummy activity.
•Dummy activities are simply used to represent a connection between events in order to maintain a
logic in the network.
•It is represented by a dotted line in a network.
•Indicates only precedence relationships.
•Does not require any time of effort

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Dummy Activity

Set 1 : A- A wait delivery of new machine

B- Install new machine
Set 2: C- Remove existing machine
D- Dispose of existing machine.

D of set 2 cannot performed unless activity A of set 1 is completed.

Activity D cannot be started unless event 2 is over.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Uses of Dummies
Grammatical purpose: According to network rules two arrows can’t start and finish from same
event. This inconvenience leads to mistake.

Logical Purpose: Dummy is required to establish relation in a network having activity common to
two sets of operations running parallel to each other.

Activity P cannot have dual

identity.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Rules for Provision of Dummies: Removal of unnecessary dummies
1. If a dummy job is the only one coming from its initial node, then that dummy can be removed and
merged with finishing node.
Ex. Here dummy P1 can be eliminated and node 1 and 3 can be merged.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Rules for Provision of Dummies
2. If the dummy job is the only one terminating into a node, the dummy can be removed and the
two node can be merged into one.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Rules for Provision of Dummies
3. If two or more activities coming from different nodes, have identical set of predecessors
nodes and that nodes also have some other nodes as a successor then the two activities should
come from a single node.
Ex. Activity B, D have same predecessor so nodes 5,6 can be merged.
As 1,2 nodes also have some other successor nodes 3,4 so 1,2 can’t be merged.
If 1,2 nodes only have 5,6 successor nodes then 1,2,3,4 can be merged to one node.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Rules for Provision of Dummies
If two or more activities, terminating into different nodes, have identical set of successors, the latter
having other predecessors as well, the two activities should terminate into one single node.
Ex. 1,2 nodes can be merged into one node.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Rules for Provision of Dummies
5. Such dummies which are used to show predecessor relations already implied by other activities
are known as redundant dummies.
Redundant dummies should be eliminated.

Redundancy exists when, among the predecessor set of any job, one of the jobs is a predecessor for
some other job in the same set.

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 COMPONENTS of PERT/CPM NETWORK (in detail)
Rules for Provision of Dummies

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 RULES FOR DEVELOPING NETWORKS
1. Initial node has only outgoing arrows. There must be only single initial node in a network.
2. An event can’t occur unless all the preceding activities are completed.
3. An event can’t occur twice. It means there should be no close cyclic loop.

4. There must not be any dead end left except the final node.
5. No activity can start until its tail end event has occurred.

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 RULES FOR DEVELOPING NETWORKS
6. Any arrow should represent singular situation. Number of arrows should be equal to number of
activity. There should not be two arrow for 1 activity.
E/A ratio= total no. of event/ total no, of activities.

In a good network , E/A lie between 1 to 1.6.

7. Representation of the network should be such that every activity is completed to reach the end
objective
8. All constraints and interdependencies should be shown properly on the network by use of
appropriate dummies.
9. Logical Network- arrow heads point correct way to indicate the true control situation.
10. It is usual practice to show the time flow from left to right.
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 ERRORS TO BE AVOIDED IN CONSTRUCTING A NETWORK
•Two activities starting from a tail event must not have a same end event. To ensure this, it is absolutely
necessary to introduce a dummy activity.
•Looping error should not be formed in a network, as it represents performance of activities repeatedly in
a cyclic manner.
•In a network, there should be only one start event and one ending event.
• The direction of arrow from left to right. Avoid mixing of the direction.

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 GRAPHICAL GUIDELINES FOR NETWROK
•Arrows are not vectors.
• Angle between arrows should be chosen to suit drafting convenience.
• Straight arrows should be used.
•Arrows should normally not cross each other.

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 SITUATIONS IN NETWORK DIAGRAM

•B is controlled by A. Operation B can’t begin until

operation A is completed.
• C is controlled by A and B. Operation C cannot begin
until operations A and B are completed.
• Activities B and C are controlled by activity A. Neither
of activities B and C can start unless A is completed.
•Activities C and D are controlled by activities A and B.
Neither of activities C and D can start until A and B are
completed. However, C and D can be started independent
of each other.

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 SITUATIONS IN NETWORK DIAGRAM

•Activity B is controlled by A and C. However, Activity D is

controlled by Activity C only.

• Activity D is controlled by A and B, While activity E is

controlled by activity B and C.

•Activity D is controlled by A, B and C. However, activity E is

controlled by B and C.

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 SITUATIONS IN NETWORK DIAGRAM

•Activity A controls C and D, while activity B controls D and

E. Thus, D is controlled by both A and B.

• Activity X is controlled by D and A; activity Y is controlled

by A, B and C, while activity Z is controlled by D only.

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 NUMBERING THE EVENTS USING FULKERSON'S RULE
•Event number should reflect their logical sequence.
•D.R. Fulkerson rules for numbering the events.
1. Initial event should be numbered like 1 or 10 or a.
2. Neglect all the out going arrows of the initial event. Doing so will apparently provide one or
more new initial events.
3. Number these apparently produced new initial events as 2, 3, 4 etc.
4. Again neglect all out going arrows from these numbered events: this will create few more
initial events.
5. Follow step 3.
6. Continue this until the last event is numbered.
Skip Numbering: Numbering the event as 10, 20, 30 etc. If an event later, it can be assigned a
number (Such as Say 21) which lies between the number of immediate predecessor event and
immediate successor event.
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 NUMBERING THE EVENTS USING FULKERSON'S RULE: Questions?????
Q-1 Using Fulkerson rule, number the events of the network shows in fig

1. Event m is the initial event; hence number it as 1.

2. Neglect the arrow coming out of the initial event. Due to this
event n will be the new initial event. Number it as 2.
3. There are two arrows B and C coming out of event 2. by
neglecting these, two more new initial events are obtained at
node o and p. Number these as 3 and 4 respectively.
4. Consider event 3. Neglect two arrows D and E emerging out
of it. New event at node q; assign number 5 to it. Note that
node r still have G and F with it.
5. Consider event 4. neglect arrow F still G arrow is there.
6. Consider event 5. neglect arrow G and H. Now new initial
event r is obtained. Number it 6.
7. Consider event 6. Neglect arrow I. now new initial event is s.
number it 7.
8. Consider event 7. neglect arrow J. Now new initial event is t so
number it 8

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NUMBERING THE EVENTS USING FULKERSON'S RULE: Questions?????

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NUMBERING THE EVENTS USING FULKERSON'S RULE: Questions?????

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NUMBERING THE EVENTS USING FULKERSON'S RULE: Questions?????

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 NUMBERING THE EVENTS USING FULKERSON'S RULE: Questions?????
Q-Draw a Network diagram for the project having 9 activities, with the following inter-relationships:
(i) C follows D but precede F.
(ii) C follows B but precedes H.
(iii) G follows F but precedes I.
(iv) E follows A but precedes I.
(v) D follows A.
(vi) H and I terminate at the same time.
(vii) A and B start at the same time.

Q- A project consists of six activities(jobs) designated from A to F, with the following relationships
I. A is the first job to be performed.
II. B and C can be done concurrently, and must follow A.
III. B must precede D.
IV. E must succeed C but it cannot start until B is complete.
V. The last operation F is dependent on the completion of both.
Draw the network diagram.

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 DEVELOPMENT OF NETWORK

•A project to be planned by network technique should consist of well specified and clearly definable
jobs Operations or activities.
•A project is broken down into activities in order to draw the network.
•The decomposition of project into activities is necessary for performing the basic calculations
required for scheduling and analysis purpose.
•Listing each of activities and predecessor-successor relationship amongst them will be our major
concern.

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 DEVELOPMENT OF NETWORK
Network can be constructed by following ways.
1. Forward Planning: In this method, the planner starts from the initial event and builds up the
events and activities logically and sequentially until the end event is reached.
In this method, following questions are asked:-
What event comes next?
What are dependent events?
What events can take place concurrently?
2. Backward Planning: In this method, the planner starts with the end events, and arranges the events
and activities until the initial event is reached.
3. Combined Planning: A combination of both forward planning and backward planning is called
combined planning.
What event or events must be completed before the particular event can start?
What event or events follow this?
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 DEVELOPMENT OF NETWORK
Modes of Network Construction
There are basically two modes of network diagrams:
Selection of mode depends on nature of the project.
•Event oriented diagrams : The interest is focused upon the start or completion of events rather than
the activities.
•Activity oriented diagrams :Emphasis is placed on activities of the project.
•In a particular network, whether event oriented or activity oriented, one can include both events and
activities. Both of these are important for planning.
•While events are used to show the milestones or stages in a project, activities are the actual performance
of a task to achieve the event.

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
•Objective: Set down in words
•Plan break down : depending upon the management level of use, activities and events identified and
listed in general list.
•Sequencing : the activities and events thus prepared, i.e. marshalling the data.
•Development: of predecessor and successor relationship in events through location of nodes in rough
layout, giving events usual relative time effect through position
•Drawing: Activities by connecting pair of events with arrows.
•Check: network diagram (a) in respect of content, sequence and sense and (b) for degree of detail.
•Redraw and Introduce: network diagram to eliminate errors and attain style.
•Number : events for identifications

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
Step 1 :Objective: i) to define the project (ii) to decide the way in which it is to be carried out.
•Specific, definite, complete and well defined verbal statement.
•Objective specifies the task to be undertaken and policy of its execution.
•Example: Specification for a lathe installation project
“ A new lathe is to be installed at a location by removing the existing machine to clear the floor.
Existing machine is to be disposed off and the complete installation is to be tested.”

Step 2: Plan Breakdown: List the activities and events

Example: For lathe installation project, plan breakdown is done by examining specification under
the above mentioned questions:

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
(a) What is the way in reaching the objective?
New lathe is to be purchased. Existing machine is to be removed and disposed off.
(b) What is the help available?
Power supply for testing
Finance for purchasing the lathe
Implements for removal of existing machine.
Disposal facilities.
(c) What safeguards are necessary ?
Removal of existing machine is necessary to clear off the site for installation.
Events: order new machine placed; Existing machine removed; power supply installed, existing
machine disposed, lathe installed, Installation tested.
Activities: Await delivery of lathe, install lathe, remove existing machine, dispose off existing
machine, Install power supply-connect the lathe to power, Test complete installation.

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
Step 3. Sequencing- Marshalling the data
After you have developed your rough activity/event list in no specific order, you must now put the
activities into a "logical" sequence to be performed.

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
There are five types of activities associated with the development of a finished activities list. Keeping
these activities in mind will help you in your logical thinking to develop the activity list on paper.
■ Starting activities. (beginning activity)
■ Preceding activities. (previous activity)
■ Concurring activities. (occurring at the same time)
■ Succeeding activities. (following activity)
■ Lagging activities. (slow or lingering activities)

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
Events Activities
(i) Subgroup IE (i) Subgroup 1A
Order for new lathe placed Await delivery of lathe
Lathe received Install lathe
Lathe installed Connect to power
Lathe tested Test the installation
(ii) Subgroup 2E (ii) Subgroup 2A
Existing machine removal commenced Remove existing machine
Existing machine removed Dispose existing machine
Existing machine disposed
(iii) Subgroup 3E (iii) Subgroup 3A
Power supply applied Obtain power supply
Power supply obtained Install power supply
Power supply installed
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Steps of Development of Network
Step 4. Location of nodes:
The following points must be kept in view while locating the nodes:
•First event must be located by left most node.
•Events occurring earlier must be represented to left side with respect to the events occurring events.
•Serial events must be represented by nodes along horizontal plane while simultaneous events are
presented up or down the vertical plane.
•No events should be located in position to left of the vertical axis of any preceding event.

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
Step 5. Drawing Arrows: Events having close and direct relationship are joined to each other by
arrows representing activity to be performed for passing form one stage to other.
These activities should fall in logical sequence.

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
Step 6. Checking: Diagram is checked with respect to (a) content, sequence, and sense (b) Degree in
details.
Content: the operation “test lathe’ cannot commence before connecting the lathe to power. Hence one
operation is missing “ connection to power supply”
Sequence: Logical and accuracy. Pay attention to the events having more than one arrow enter/leave.
Sense: No loops/cycles. No dead end. No event only have out going or in coming arrow (other than first
and last)
Degree of details: An arrow should always represent singular situation but an event may represent
commencement of more than one operations.
E/A ratio= total no of event/ Total no. of Activities.
For network E/A ratio – 1 to 1.6

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 DEVELOPMENT OF NETWORK
Steps of Development of Network
Step 7. Redraw: Errors found are removed and network diagram is redrawn by introducing dummies if
needed.

Step 8. Number: Events are number using Fulkerson’s rule

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Q. Construct the network for the manufacture of a storage cabinet, given the following specification:
“A simple storage cabinet is to be manufactured by fabrication and assembly of frame and panels. The
cabinet is to painted. Panels and paints are available from the store.”

Solution: The following is the list of activities:

•Order materials for frame work
•Await delivery of material
•Obtain panels and paints from store
•Set up tools
•Fabricate frame
•Fix panels
•Obtain paint
•Paint9/14/202
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 Thank
You!!!

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