*

A project involves a large number of interrelated activities

(or tasks) that must be completed on or before a specified
time limit, in a specified sequence (or order) with
specified quality and minimum cost of using resources such
as personnel, money, materials, facilities and/or space.
Examples of projects include, construction of a bridge,
highway, power plant, repair and maintenance of an oil
refinery or an air plane; design, development and
marketing of a new product, research and development
work, etc. Since a project involves large number of
interrelated activities, therefore it is necessary to prepare
a plan for scheduling and controlling these activities (or
tasks). This approach will help in identifying bottlenecks
and even discovering alternate work-plan for the project
Network Analysis, Network Planning or Network Planning and
Scheduling Techniques are used for planning, scheduling and
controlling large and complex projects. These techniques
are based on the representation of the project as a network
of activities. A network is a graphical presentation of arrows
and nodes for showing the logical sequence of various
activities to be performed to achieve project objectives. In
this chapter, we shall discuss two of these well-known
techniques – PERT and CPM.
PERT (Program Evaluation and Review Technique) was
developed in 1956–58 by a research team to help in the
planning and scheduling of the US Navy’s Polaris Nuclear
Submarine Missile project involving thousands of activities.
The objective of the team was to efficiently plan and
develop the Polaris missile system. This technique has proved
to be useful for projects that have an element of uncertainty
in the estimation of activity duration, as is the case with new
types of projects which have never been taken up before.
CPM (Critical Path Method) was developed by E.I. DuPont
company along with Remington Rand Corporation almost at
the same time, 1956-58. The objective of the company was
to develop a technique to monitor the maintenance of its
chemical plants. This technique has proved to be useful for
developing time-cost trade-off for projects that involve
activities of repetitive nature.

BASIC DIFFERENCE BETWEEN PERT AND CPM

Both PERT and CPM share in common the determination of a
critical path and are based on the network representation of
activities and their scheduling that determines the most
critical activities to be controlled so as to meet the
completion date of a project. However, the following are
some of their major differences.
PERT
1. In PERT analysis, a weighted average of the expected
completion time of each activity is calculated given three
time estimates of its completion. These time estimates are
derived from probability distribution of completion times of
an activity.
2. In PERT analysis emphasis is given on the completion of a
task rather than the activities required to be performed to
complete a task. Thus, PERT is also called an event-oriented
technique.
3. PERT is used for one time projects that involve activities
of non-repetitive nature (i.e. activities that may never have
been performed before), where completion times are
uncertain.
4. PERT helps in identifying critical areas in a project so that
necessary adjustments can be made to meet the scheduled
completion date of the project.
CPM

1. In CPM, the completion time of each activity is known

with certainty that too unique.
2. CPM analysis explicitly estimate the cost of the project
in addition to the completion time. Thus, this technique
is suitable for establishing a trade-off for optimum
balancing between schedule time and cost of the
project.
3. CPM is used for completing of projects that involve
activities of repetitive nature.
Significance of Using PERT/CPM

1. A network diagram helps to translate complex project into

a set of simple and logical arranged activities and
therefore,
• helps in the clarity of thoughts and actions. PERT/CPM is a
technique used for assisting project managers carry out
their responsibilities. Project Management: PERT and CPM
• helps in clear and unambiguous communication developing
from top to bottom and vice versa z among the people
responsible for executing the project
2. Detailed analysis of a network helps project in charge to
peep into the future because
• difficulties and problems that can be reasonably
expected to crop up during the course of execution,
• can be foreseen well ahead of its actual execution.
• delays and holdups during course of execution are
minimized. Corrective action can also be taken well in
time.
3. Isolates activities that control the project completion
and therefore, results in expeditious completion of the
project.
4. Helps in the division of responsibilities and therefore,
enhance effective coordination among different
departments/agencies involved.
5. Helps in timely allocation of resources to various
activities in order to achieve optimal utilization of
resources
In general, project management consists of three phases:
1. Planning,
2. Scheduling and
3. Control.
Project planning phase In order to understand the sequencing
or precedence relationship among activities in a project, it is
essential to draw a network diagram. The steps involved during
this phase are listed below:
i) Identify various activities (tasks or work packages/elements)
to be performed in the project, that is, develop a breakdown
structure (WBS).
ii) Determine the requirement of resources such as men,
materials, machines, money, etc., for carrying out activities
listed above.
iii) Assign responsibility for each work package. The work
packages corresponds to the smallest work efforts defined in
a project and forms the set of tasks that are the basis for
planning, scheduling and controlling the project.
iv) Allocate resources to work packages.
v) Estimate cost and time at various levels of project
completion.
vi) Develop work performance criteria.
vii) Establish control channels for project personnel.
2. Scheduling phase Once all activities have been
identified and given unique codes, the project
scheduling (when each of the activities is required to
be performed) is taken up. Prepare an estimate of the
likelihood of the project to be completed on or before
the specified time. The steps involved during this
phase are listed below:
(i) Identify all people who will be responsible for each
task.
(ii) Estimate the expected duration(s) of each activity,
taking into consideration the resources required for
their execution in the most economic manner.
(iii)Specify the interrelationship (i.e. precedence
relationship) among various activities.
iv) Develop a network diagram, showing the sequential
interrelationship between various activities. For this,
tips such as; what is required to be done; why it must
be done, can it be dispensed with; how to carry out the
job; what must precede it; what has to follow; what
can be done concurrently, may be followed.
v) Based on these time estimates, calculate the total
project duration, identify critical path; calculate
floats; carry out resources smoothing (or levelling)
exercise for critical (or scare) resources, taking into
account the resource constraints (if any).
3. Project control phase Project control refers to the
evaluation of the actual progress (status) against the
plan. If significant differences are observed, then
remedial (modifying planning) or reallocation of
resources measures are adopted in order to update and
revise the uncompleted part of the project
Events:
Events in the network diagram represent project
milestones, such as the start or the completion of an
activity (task) or activities, and occur at a particular
instant of time at which some specific part of the project
has been or is to be achieved. Events are commonly
represented by circles (nodes) in the network diagram.

Node (Event)

Activity

Dummy Activity
The events can be further classified into the following two
categories:
(i) Merge Event : An event which represents the joint
completion of more than one activity is known as a merge
event. This is shown in the following diagram

ii) Burst Event : An event that represents the initiation

(beginning) of more than one activity is known as burst
event.
Events in the network diagram are identified by numbers.
Each event should be identified by a number higher than
that the one allotted to its immediately preceding event to
indicate progress of work
Merge Event

Burst Event
Activities :Activities in the network diagram represent
project operations (or tasks) to be conducted. As such each
activity except dummy activity requires resources and takes
a certain amount of time for completion. An arrow is
commonly used to represent an activity with its head
indicating the direction of progress in the project. Activities
are identified by the numbers of their starting (tail or
initial) event and ending (head, or terminal) event, for
example, an arrow (i, j) between two events; the tail event
i represents the start of the activity and the head event j
represents the completion of the activity
The activities can be further classified into the following
three categories:
(i) Predecessor Activity: An activity which must be
completed before one or more other activities start is
known as predecessor activity.
(ii) Successor Activity: An activity which starts immediately
after one or more of other activities are completed is
known as successor activity.
(iii)Dummy Activity: An activity which does not consume
either any resource and/or time is known as dummy
activity.
 Activity
i j

Starting event Ending event

Activity-on-Node (AON) network In this type of precedence

network each node (or circle) represents a specific task
while the arcs represent the ordering between tasks. AON
network diagrams place the activities within the nodes, and
the arrows are used to indicate sequencing requirements.
Generally, these diagrams have no particular starting and
ending nodes for the whole project. The lack of dummy
activities in these diagrams always make them easier to draw
and to interpret.
Activity-on-Arrow (AOA) network In this type of
precedence network at each end of the activity arrow is a
node (or circle). These nodes represent points in time or
instants, when an activity is starting or ending. The arrow
itself represents the passage of time required for that
activity to be performed. These diagrams have a single
beginning node from which all activities with no
predecessors may start. The diagram then works its way
from left to right, ending with a single ending node, where
all activities with no followers come together. Three
important advantages of using AOA are as follows:
1.Develop a network diagram for the following project

Activity Immediate Duration

predecessor (weeks)
Activity
A - 3
B A 5
C A 7
D B 10
E C 5
F D,E 4
 3
B D
A F
1 2 5 6
C E
4
2.Develop a network diagram for the following project

Activity Immediate predecessor

Activity
A -
B A
C,D B
E C
F D
G E,F
 4
E
C

B G 7
A 6
1 2 3
D F
5
3.Develop a network diagram for the following project

Activity Immediate
predecessor
Activity
A -
B -
C A
D B
E A
F C,D
G E
H E
I F,G
J H,I
 4
E
H
G
A 3 C
F
1 5 6 I J
7
B D 8
2
Example 4: An assembly is to be made from two parts X
and Y. Both parts must be turned on a lathe. Y must be
polished whereas X need not be polished. The sequence of
activities, together with their predecessors, is given below.

Activity Description Processor Activity

A Opener work order -
B Get material for X A
C Get material for Y A
D Turn X on lathe B
E Turn Y on lathe B, C
F Polish Y F
G Assemble X and Y D,F
H pack G
 3
D

B
G A
A 6 7 8
1 2

F
C
4 5
E
Example 5: Listed in the table are the activities and
sequencing necessary for a maintenance job on the
heat exchangers in a refinery
Draw a network diagram of the activities for the
project

Activity Description
Predecessor
Activity
A Dismantle pipe connection -
B Dismantle heater, closer and floating point A
C Remove the tube bundle B
D Clean the bolts B
E Clean heater and the floating head front B
F Clean the tube bundle C
G Clean the shell C
H Replace the tube bundle F,G
I Prepare shell present test D,E,H
J Prepare the pressure test and reassemble I
 F 5
4

G D1
6
C
H
A B D
1 2 3 I
8 9 J
10
E
7 D2
 6.Develop a network diagram for the following project

A<D,E B,D<F C<G B<H F,G<I

A B C D E F G H I
23 8 20 16 24 18 19 4 10
G(19)
2 5

C(20) H(4)

B(8) F(18) I(10)

1 6
4 7

A(23)
D(16)

E(24)
3
* 7.Draw net work diagram for the following data.

Activity A B C D E F G H
Predecessor - - - A B B,C D,E,F E,F

G
D 6 7
2
A

1 B H
E
3 5
C

4 F
8. Draw a network diagrams from the following list of activities:

Activity Predecessor
I II III
A - - -
B - - -
C - - -
D A A A
E B A,B A,B
F B,C A,B,C B,C
G D,E,F D,E,F C
F D,E,F