OPERATION RESEARCH

CHAPTER FIVE
5. NETWORKS AND PROJECT MANAGEMENT
Unit Objectives
After completing this chapter you should be able to:
- Define what a project is.
- Describe the different types of networks
- Use CPM to evaluate project’s time
- Discuss the use of PERT in solving problems of project
- Describe the concept of crashing
5.1. Introduction
It is essential to identify the various activities involved in the execution of Projects. The large
and complex projects of any organization involve a number of interrelated activities, which
might be performed independently, simultaneously, or one after the other. Modern
management has designed a network models approach to solve the problem associated with
the allocation of scarce resources of manpower, material, money and time to these
interrelated activities.
A project can be defined as being a series of activities designed to achieve a specific
objective, and which has a definite beginning and a definite end. For network analysis to be
of use, the project must be capable of being split into a number of discrete activities, which
relate together in a logical and well-defined manner.
Network analysis involves the breaking down of a project into its constituent activities, and
the presentation of these activities in diagrammatic form.
Networks are one of the important tools of management science which easily solve problem
by presenting in visual formats. The shortest route problem, minimum spanning tree and
maximal flow models are useful for solving problems associated with allocation of scarce
resources, time, cost, and material consumption. Moreover, CPM and PERT, which we will
discuss later on also contributed a lot for complex projects management under different
situations.
5.2. Planning and Scheduling with Gantt chart
It is a popular tool for planning and scheduling simple projects. It enables a manager to
initially schedule project activities and, then, to monitor progress over time by comparing
planned progress to actual progress.
In order to prepare the chart, first identify the major activities that would be required. Next,
time estimates for each activity were made, and the sequence of activities was determined.
Once they were to occur.
The obvious advantage of Gantt chart is its simplicity, and this accounts for its popularity.
However, it fails to reveal certain relationships among activities that can be crucial to
effective project management.
Consequently, Gantt charts are most useful for simple projects; say where activities are
simultaneous or where a string of sequential activities is involved. On more complex projects,
Gantt charts can be useful for initial project planning, which then gives way to the use of
network diagrams.

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5.3. Construction of network diagrams

Drawing a logic diagram is a skill requiring practice and ingenuity, and for major projects
may require two or three attempts before a satisfactory network or diagram is completed
correctly. Computer packages are often used to carry out this process, cutting drastically the
time taken.
5.3.1. Basic Components of Network Diagram
i. Network: It is the graphic representation of logically and sequentially connected arrows
and nodes representing activities and events of a project. Networks are also called arrow
diagram.
ii. Activity: An activity represents some action and is a time consuming effort necessary to
complete a particular part of the overall project. Thus each and every activity has a point
where it ends.
It is represented in the network by an arrow.
A

Here A is called an activity.

The straight lines connecting the circles represent a task that takes time or resources; these
lines are called activities. The arrow heads show the direction of the activity.
The beginning and end points of an activity are called events or nodes. Event is a point in the
line and does not consume any resource. A numbered circle represents it. The head event has
always a number higher than the tail event.
Activity

Tail Head
Merge and burst events
It is not necessary an event to be the ending event of the only one activity but can be the
ending event of two or more activities. Such event is defined as a Merge event.

Merge event

If the event happened to be the beginning event of two or more activities, it is defined as a
Burst event.

Burst event

iii. Preceding, succeeding and concurrent activities

Activities, which must be accomplished before a given event can occur, are termed as
preceding activities. Activities, which cannot be accomplished until any event has occurred,
are termed as succeeding activities. Activities that can be accomplished concurrently are
known as concurrent activities.
This classification is relative, which means that one activity can be proceeding to a certain
event, and the same activity can be succeeding to some other event or it may be a concurrent
activity with one or more activities.

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iv. Dummy Activity

Certain activities, which neither consume time nor resources but are used simply to represent
a connection or a link between the events, are known as dummies. It is shown in the network
by a dotted (broken) line.
The purpose of introducing dummy activity is:
- To maintain uniqueness in the numbering system as every activity may have distinct
set of events by which the activity can be identified.
- To maintain a proper logic in the network.

D
A
B

Dummy

C
v. Numbering the Events
After the network is drawn in a logical sequence, every event is assigned a number. The
number sequence must be in such a way that it should reflect the flow of the network. In
event numbering, the following rules should be observed:
a. Event numbers should be unique.
b. Event numbering should be carried out a sequential basis from left to right.
c. The initial event, which has all outgoing arrows with no incoming arrow, is numbered
0 or 1.
d. The head of an arrow should always bear a number higher than the one assigned at the
tail of the arrow.
e. Gaps should be left in the sequence of event numbering to accommodate subsequent
inclusion of activities, if necessary.
5.3.2. Rules for drawing a network
- A complete network should have only one point of entry -the start event, and one point
of exit -the finish event.
- Every activity must have one preceding event -the tail, and one following event - each
activity has one head.
- Several activities may use the same tail event, and the same head event, but no two
activities may share the same head and tail events.
- Time flows from left to right.
- An activity must be completed in order to reach the end-event.
- Dummy activities should only be introduced if absolutely necessary.
5.3.3. Convention for Drawing Networks
In addition to the rules described above, certain conventions are followed for the sake of
clarity and uniformity. There are two slightly different conventions for constructing the
network diagrams. Under one convention, the arrows are used to designate activities,

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whereas under the other convention, the nodes are used to designate activities. These
conventions are referred to as activity- on-arrow (A-O-A) and activity – on- node (A-O-N)
respectively. In order to avoid confusion, the discussion here focuses primarily on activity-
on- arrow convention. When we use this convention:
- Networks proceed from left to right -the start event is at the left hand side of the
diagram and the end event at the right hand side
- Networks are not drawn to scale.
- Arrows representing activities should have their head to the right of their tail unless it is
impossible to draw the network in that way.
- Events or nodes should be numbered so that an activity always moves from a lower
numbered event to a higher one. This convention is relatively easy to accomplish in a
simple network but in a complex network it may be necessary to number in tens to
allow for extra activities to be added without the need for a complete renumbering of
the whole diagram
- Lines that cross should be avoided if possible
- The start event may be represented as a line instead of a circle, particularly when
several activities may begin at the start point.
5.4. Common Errors in Drawing Networks
There are three types of errors, which are most common in network construction. These are:
i. Formation of a loop: If an activity were represented as going back in time, a closed
loop would occur. In a network diagram looping error is also known as cycling error.
Cycling (looping) in a network can result through a simple error or while developing the
activity plans, one tries to show the repetition of an activity before beginning the next
activity.
A closed loop would produce an endless cycle in computer programmers with a built- in
routine for detection or identification of the cycle. Thus one property of a correctly
constructed network diagram is that it is non-cyclic.

B
A

ii. Dangling: No activity should end without being joined to the end event. If it is not so, a
dummy activity is introduced in order to maintain the continuity of the system. Such
end-events other than the end of the project as a whole are called dangling events. All
activities must contribute to the progression of the network or be discarded as irrelevant.

A
B E
B
D C
B F
B
Dangling

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iii. Redundancy: If a dummy activity is the only activity emanating from an event, it can be
eliminated.

Dummy D F

A C

B E
5.5. Types of Network Models
5.5.1. The Shortest Route Problem
The objective of this network model is to obtain the shortest path in which one can minimize
distance, time or costs involved form the origin to destination.
If we have “n” location in the network, the total steps required to solve the shortest route
problem will be n-1. The determination of shortest route involves labeling procedure in which
each node is assigned with two numbers where by the 1st label represent distance from the
original (source) node and the 2nd number refers the node that immediately precede the
labeled node. The labeling procedure begins with the original node where the label will be
(O, S) to indicate the distance is zero and it is starting point.
In the shortest route algorithm nodes are labeled either permanently to indicate the final
labeling or temporary labeling to indicate that the labeling might be revised. Labels remain
temporary until it can be ascertained that no shorter route to a node exists.
 The Shortest Route Algorithm
Step 1: Start at node 1 and find the distance from node 1 to other nodes that can be directly
reached form node 1. Temporarily label each of these nodes with their distance from node 1
followed by a comma and a number 1. Then select the node that has smallest distance from
node 1, and make its label permanent. This can be done by shading the node.
Step 2: Find the distance from the new permanent node to each non-permanent nodes that
can reached directly from this node. Temporarily label each of these nodes with the
cumulative distance from node 1 if a node has no label. Or, change the earlier assigned
temporary label of a node if its cumulative distance from node 1 through the new permanent
node is less than the previous temporary label. Then permanently label (shade) the node that
has the smallest cumulative distance form node 1.
Step 3: Repeat the preceding steps until all nodes have permanent labels.
Step 4: Identify the shortest route to each node from node 1 by working backward through
the tree according to the nodes label specified on the node.
Example:
Find the shortest route of the following network starting form node one. Travel between
nodes can be in either direction.

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13
2
5
4 5
7
8 6
3
1

7
1
16
4 6

1st step: Shade node 1 and temporarily label node 2, 3 and 4, which can be directly reached
from node 1. The label should show the distance from node 1.
(5.1)
2 13
5 4
(O,
( S) (8, 1)
8 7
3 5
1 6

7
(7, 1) 1
16 6
4
2nd Step: Select the node, which has the smallest distance from node 1, and label it
permanent and shade the node (i.e. node 2), then temporarily label nodes that can be directly
reached from node 2. Therefore node 5 is labeled as (18, 2.)
(5, 1)

2
13
5 4 (18, 2)
(O, S)
(8,1)
8
3 5
7 7 6
7, 1
1
1 16
6

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3rd Step: Identify the smallest distance from node 1 i.e. from node 3, 4, and 5, which have
values of 8, 1, 7, 1 and 18, 2 respectively. Permanently label and shade node 4, which has the
smallest distance of 7. Identify non-permanent labels; directly reached from this node and
temporarily label it by the distance from node 1.
(5, 1)

13
2
5 (18, 2)
(O, S) 4
(8, 1)
8 7 5
3 3
1
6
7 3
(7, 1) (23, 4)
1
3
4 16
6

4th Step: The node with the smallest temporary label is node 3. Thus, its label becomes
permanent and the node is shaded. Node 3 can be reached directly from node 1 through node
4 with the same distance of 8 (i.e. tie exists). Next, find each non-Permanent label that can be
reached directly from node 3. Node 5 is the only node with a value of (18, 2). However, the
cumulative distance of node 5 from node 1 through node 3 is 15 (i.e. 8+7=15). Because the
route through node 3 is shorter, we update the temporary label of node 5 to reflect this shorter
route.

(5, 1)

2
13
5 (15, 3)
(O, S)
(18,2)
(8,1) tie
7
1 8 5
3

7 1 6
(7, 1)
(23,4)
4 16
6

5th Step: Identify the node, which have smallest label from the un-shaded nodes or
temporary labels. Node 5 with a distance of 15, 3 is selected and becomes permanent label.

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(5, 1)

2 13
5 4 (15, 3)
18, 2
(8,1)
(O,S) tie
8 3 7 5
1 6
(7,1) (23, 4)
7 1
16
4 6

6th Step: The only node which is not shaded and can be reached directly from the new
permanent node is node 6. Using this route, its cumulative distance from node 1 would be
15+6=21. Because this is less than its current table update label to 21, 5 and make permanent
& shade it.
2
13 (15, 3)
5 18, 2
4
(O,S) 8, 1 tie

8 7 5
1 3 6
(21, 5)
7 (23, 4)
(7, 1)
1 16
4 6

Permanent label of the final network indicates the shortest distance of each node from node 1
(the starting node). In order to identify the route that yields the shortest distance to a
particular node, it is necessary to work backtracking. The shortest route of the nodes from
node 1 to each node is summarized below.
Node Distance Shortest Route Alternative Route
2 5 1-2 -
3 8 1-3 1-4-3
4 7 1-4 -
5 15 1-3-5 1-4-3-5
6 21 1-3-5-6 1-4-3-5-6

5.5.2. Minimum Spanning Tree Model

The minimum spanning tree problem involves in connecting all of the nodes of a network
using as little of the connecting material as possible. For example, the nodes might represent

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oil storage tanks, and lines represent pipeline that are used to carry the oil between tanks. The
cost of the pipeline would be proportional to the length of the pipeline used. Hence, the
objective would be to connect all of the tanks using as little pipeline as possible. Similar
activities include designing communication systems by using minimum amount of wiring,
designing highway networks by using minimal amounts of materials etc.
 Algorithm of Minimum Spanning Tree
Step 1. Start at any node, (usually, node 1 is used as the starting point), identify the node that
has shortest distance from node 1 and connect it to the node 1 using a line. If a tie occurs,
break it arbitrarily
Step 2. Find the shortest distance from the existing portion of the tree (i.e. the connected
nodes) to a node that is not yet connected. Make the connecting line from previously
connected tree to the new node which has shortest distance.
Step 3. Continue until all nodes have been connected to the tree.
Step 4. To find the total (minimal) length of the connecting distance, sum up their values.
Example:
Consider the following network where the nodes represent fuel storage tanks and the
connecting lines represent possible pipeline connections. The numbers on26the lines represent
the distance in meters for a particular pipeline connection. Determine the spanning tree for
the network storage tanks and the amount of pipe that will be needed to make the
connections.
22
6
2 4
24
13 18
27 3
20 30 5 3
1
32
18

49 7
3

Arbitrarily choose node 1 as a starting node consider all branches incident on it. They are 1-2
and 1-3 with distance of 13 and 18 respectively. Since 1-2 is the shortest, select this line and
connect it. Now node 1 and 2 are connected.
Next consider all arcs incident either on node 1 or node 2 that connect to other nodes. Such
lines are 1-3, 2-3 and 2-4 with a distance of 18, 20 and 22 respectively. Node 1-3 with a
distance of 18 of selected. Now the connected nodes are 1, 2, and 3.
Next consider all braches incident to Node 1, 2 and 3. These are 2-4, 3-4, 3-5 and 3-7 with
distance of 22, 27, 30 and 49. The shortest distance is 22 i.e. 2-4. Make 2-4 part of the
network

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2 2
2 4 6
13 2

1
5 18 2
1
7 3 2
3

A B

22
22
13 2 4
2 4 6
13
6 18
1

1 5 5
18 3 7

3 7
18
D
C

22
2 22
13 4
6 2 4
18 13
18 6
1
5 24 1 5 24
18
3
7 32 7
18 3
E
F

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The next step will be to identify the shortest line that is incident to node 3 and 4. These are 3-
5, 3-7, 4-5 and 4-6 with a distance of 30, 49, 18 and 26. Since 4-5 is the shortest distance,
include it in the network.
Continue in this manner until all nodes are connected with their shortest distance. The
network solution for the above problem is shown on the following figure
The length of pipe that will be needed for this system can be found by summing the line
lengths (distance): i.e. 18+13+22+18+24+32= 127 meters.

Summary
- Projects are composed of a unique set of activities established to realize a given set of
objectives during a limited life span. The non routine nature of project activities places a
set of demands on the project manager, which are different in many respects than those
required for the manager of more traditional operations activities, both in planning and
coordination the work.
- PERT and CPM are the two commonly used techniques for developing and monitoring
projects. Although each technique is developed independently and expressly different
purposes, time and practice has erased most of the original differences so that now little
distinction can be made between the two. Either one provides the manager with a rational
approach to project planning along with a graphical display of project activities. Both
depict the sequential relationships that exist among activities and reveal to managers
which activity must be completed on time in order to achieve timely completion of the
project. Managers can use that information to direct their attention towards the most
critical activities.
- In some cases it may be possible to shorten the length of a project by shortening one or
more of the project activities. Typically such gains are achieved by the use of additional
resources, although in some cases it may be possible to transfer resources among project
activities. Generally, projects are shortened either to the point where the cost of
additional reduction would exceed the benefit of additional reduction or to the point
where further improvements, although desirable, would be physically impossible.

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