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Chapter Three

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Chapter Three

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Demsew Adelahu
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© © All Rights Reserved
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UOG

IOT
DEPARTMENT OF CIVIL ENGINEERING

Habtamu E.
, 2020
Chapter Three
Construction project
Scheduling Techniques
Contents
1 Introduction

2 Bar Chart (Gantt Chart Method)

3 Network Scheduling – Critical Path Method(CPM)

5 Program Evaluation & Review Technique

6 Introduction to MS-Project
Project planning
✓ Project “a temporary endeavor undertaken to
create a unique product, service or result”.

✓ The success of a project will depend greatly on


careful and continuous planning, and management
of the execution of activities according to plan.
• Planning involves the logical analysis of the project,
its requirements, and the plan for its execution.

• This will also include the consideration of the


existing constraints and available resources which
will affect the execution of the project.

• Planning involves the breakdown of the project into


definable, measurable and identifiable
tasks/activities, and then establishes the logical
interdependence among them.
Plans involve four main steps:
1. Performing breakdown of work items involved in the
project into activities.
2. Activities representation
3. Identifying the proper sequence by which the activities
should be executed.
4. Estimating the resources, time and cost of individual
activities.
planning

▪ Contract ▪ Activities
information ▪ r/ship among o
i
▪ Drawings activities u
n
▪ Specifications planning ▪ Method statement t
p ▪ responsibility
▪ Available p
u resources ▪ Reporting levels u
t ▪ Bill of quantities ▪ Network diagram
t
▪ Site reports ▪ Activities duration
▪ Organizational data ▪ Activities cost
▪ Construction
methods
Project scheduling is the determination of the timing and sequence of
operations in the project and their assembly to give the overall
completion time.
At this stage, managers decide how long each activity will take and
compute how many people and how much material will be needed at
each stage of construction.
✓Shows the relationship of each
activity to others and to the project
as a whole
✓Identifies the precedence
why scheduling?????
relationships among activities
✓Encourages the setting of realistic
time and cost estimates for each
activity
✓Helps make better use of people,
money, and material resources by
The scheduling techniques widely used in construction
management are:

✓ Charts
✓ Network analysis (CPM/PERT)
✓ Line of balance and resource levelling
✓ Others (Q-scheduling, etc..)
The WBS is described as a hierarchical structure which is
designed to logically sub-divide all the work-elements of the
project into a graphical presentation.
✓ The full scope of work for the project is placed at the top of
the diagram, and then sub-divided smaller elements of work
at each lower level of the breakdown.
The work breakdown structure typically decreases in size from
top to bottom:
1. Project
2. Major tasks - these are major construction operations
3. Subtasks in major tasks
4. Activities
WORK BREAKDOWN
STRUCTURE
✓ Effective use of the WBS will outline the scope of the project
and activities.

✓ The following illustrative example shows the ‘whole to part’


relation between the project , sub- projects, tasks, work
packages and activities for the construction of a house
construction project.
Text Indention ▪ Pictorially
House
project
✓ A house project
✓ Civil work Civil work Plumbing Electrical

▪ Sub structure Sub Super


» Site Clearing structure structure

» Excavation Site clearing


» Foundation
work Excavation
▪ Form Work
▪ Rebar fixing Foundation
work
▪ Concert
Form work
casting
▪ Super structure Concrete
work
Rebar
Work
To the level that estimates and forecasts about the
resources required, durations and activity relationships are
realistically estimated for each activity;
▪ Sub-project level: Sub projects are derived by dividing a large
project, usually termed a programme, into independent large-
volume mini projects.
▪ Task level: A task is an identifiable and deliverable major work
which can be performed without major interference from other
tasks.
▪ Work package level: A work package contains a sizeable,
identifiable, measurable, cost able and controllable package of
work.
▪ Activity level: An activity is a sub division of a work package and
is defined as a work which has a definite start and end and
consumes resources.
Real Estate Development Mega project
(Programme)

Residential Buildings Service Buildings Recreation Centers

Sub projects

Educational Buildings Health Centre Shopping centre

Tasks
Sub structure Super Structure Roofing Finishing

Excavation and
Earth work Footing Con Plinth wall Con Ground floor Con Work package

Excavation Earth work

Activities

Bulk excavation Pit Excavation Trench Excavation


Activity
✓ Production activities: activities that involve the use of
resources such as labor, equipment or material. (e.g.:
excavation, formwork, reinforcement, concreting, etc.)
✓ Each production activity can have a certain quantity of work,
resource needs, costs, and duration.
✓ Other activities are:
❖ Procurement activities
❖ Management activities
Is determining
✓ Which activities must be finished before the current can
start?
✓ What activity(ies) may be constructed concurrently the
current one?
✓ What activity(ies) must follow the current one?
✓ Relationships are defined from the predecessor to the successor
activity.
✓ Four types of relationships exist
A) Finish to start (FS)
The successor activity can begin only when the current activity
completes.
Example: the plaster must be finished before the tile can start.

Plaster Tile
Types of activities
relationships
B) Finish to finish (FF)
▪ The finish of the successor activity depends on the finish
of the current activity.
▪ Can be used where activities can overlap to a certain
limit.
Erect Remove
scaffolding Old paint

FF/1
Smoothing

FF/2
Dismantle
painting inspect scaffolding
C) Start to Start (SS)
▪ The start of the successor activity depends on the start of
the current activity.

Clean Spread
surface grout

SS
Clean
Set floor
tile area
D) Start to Finish (SF)
▪ The successor activity cannot finish until the current
activity starts .
▪ Not Common
▪ Typically used with delay time or lag.

Erect Steel Pour


formwork reinforcement concrete

SF
Order
concrete
✓ For efficient use of resources or in case of constraint
resources, it might be beneficial to consider the
resources when determining the logical relations
among the activities that use the same resources.
✓ Example: consider construction a simple project
consists of three units and each unit has three
sequential activities
✓ Gantt or bar chart is a popular tool for planning and
scheduling simple projects.
✓ They give an idea of duration of activities / project and
hence can be useful in preparing strategy for working.
✓ In a bar chart the activities are shown as horizontal bars on
a horizontal time scale, where the start and end locations of
the bars coincide with the start and finish dates of the
activities.
✓ A bar chart representation of the illustrative example given
in Figure below
✓ Gantt charts, though, do not adequately illustrate the
interrelationships between the activities and the
resources.
Gantt (Bar) Chart structure:
task
T1
T2

T3

T4
T5

T6
T7

T8

T9

day 0 day 1 day 2 day 3 day 4 day 5 day 6 day 7 day 8 day 9 day 10

time
Task and its duration
Gantt (Bar) Chart structure:
task
T1

T2

T3

T4

T5
T6

T7

T8

T9

day 0 day 1 day 2 day 3 day 4 day 5 day 6 day 7 day 8 day 9 day 10

time
Phases, tasks groups:
Gantt (Bar) Chart structure:
task
T1

T2

T3

T4

T5
T6

T7

T8

T9

day 0 day 1 day 2 day 3 day 4 day 5 day 6 day 7 day 8 day 9 day 10

time
Gantt (Bar) Chart structure:
task
T1 100% complete
T2 80%

T3 100%

T4

T5 0%
T6

T7

T8

T9

day 0 day 1 day 2 day 3 day 4 day 5 day 6 day 7 day 8 day 9 day 10

time
Project performance analysis
Draw the Gantt (bar) chart and estimate the
total duration for the following activities:
Activity description Duration predecessors
A Site clearing 1 -
B General excavation 2 A
C Excavation for utility 2 B
trenches
D Placing formwork and 3 B
reinforcement bars
E Installing sewer lines 3 C
F Installing other utilities 3 C
G Pouring concrete 2 D,E
Activity

C
D

day 0 day 1 day 2 day 3 day 4 day 5 day 6 day 7 day 8 day 9 day 10

time
The critical path method (CPM) and program evaluation and
review technique (PERT) are two of the most widely used
network techniques.
✓The Network Diagram is essentially a flowchart of the project
tasks.
✓ A project network is asset of arrows and nodes.
✓ Network diagrams are the preferred technique for
showing activity sequencing.
✓ When task durations are uncertain, the Network Diagram is
often a better technique to use than the Gantt (bar) chart.
✓ The Network Diagram shifts the focus for uncertain tasks
from arbitrary start and end dates to completion of the work
and a handoff to the next task/activity.
✓ There are two ways that are commonly used to draw a
network diagram for a project
❑ AOA: Activity on Arrow
❑ AON: Activity on Node
➢ Also called arrow diagramming method (ADM)
network diagram or (I‐ J) method (because activities are
defined by the form node, I, and the to node, J)
➢ Activities are represented by arrows.
➢ Nodes or circles are the starting and ending points of
activities.
➢ It can only show finish‐ to‐ start dependencies
Information required for drawing networks
✓ List of individual activities
✓ Activity interdependencies
✓ Activity time estimates.
Ground rules for developing a network :
✓ Each event should have preceding and succeeding event
✓ Commencement completion
✓ Events should have a distinct number
▪ The dummy activity is an activity with zero duration,
consumes no resources, drawn as dashed lines, and used to
adjust the network diagram.
▪ A dummy activity is also used when one activity depends
upon two preceding activities and another activity depends
only upon one of these two preceding activities.
B
A
A must finish before either B or C
C can start

A
C both A and B must finish before C
B
can start

A C both A and B must finish before


B D either of C or D can start

A B A must finish before B can start; both


Dummy A and C must finish before D can start
C
D
✓ The Network must have definite points of beginning and
finish.
✓ There should not be a loop formation in a network, No
activity should lead back to previous activity “No looping”

wrong
❖Not more than one activity should have the same preceding
and succeeding events, i.e. only one activity may connect any
two events.
wrong

❖ To ensure that each activity is uniquely numbered, it may


be necessary to introduce dummy activity
▪ Draw the arrow network for the project given next.
▪ Draw the arrow network for the project given next.
AON: Activity on Node
✓ A matter of preference which one to use
✓ Each activity labeled with Identifier (usually a
letter/code) and duration (in std. Unit like days)
✓ There is one start & one end event
✓ Time goes from left to right
Activity A B C D E F G H I J k

Predecessor - - A B B A C D A G, H, J, F,
E I

A F K

Start C G Finish

B D H J

Activity on Node(AON) Network


50
Draw a network by using both AON and AOA.
Activity description Duration predecessors
A Design house and obtain 3 -
financing
B Lay foundation 2 A
C Order and receive 1 A
materials
D Select paint 1 B,C
E Build house 3 B,C
F Select carpet 1 D
G Finish work 1 E,F
AOA Project Network for House
3
Dummy
B
2 0
3 1 E G
1 2 4 6 7
A C 3 1
D 1 1 F
5
AON Project Network for House
B E
2 3
G
Start A 1
3
C F
1 D 1
1
Critical path method
(CPM)
Critical activity:
Any delay on the start or finish of a critical activity will
result in a delay in the entire project.
Critical path:
➢ It represents a series of activities for which each
activity is a Critical activity (zero float time).
➢ longest time for the project from start to its co
mpletion and decides the time of completion of
the project
Major steps in CPM
CPM includes four main steps:
1. Determine the work activities: project breakdown
▪ Project must be divided into smaller activities or
tasks (WBS)
▪ Prepare a list of all activities.
2. Determine activity duration
✓ Durations are calculated in workdays, (calendar) (“a 5 or 6-
work day /week”)
✓ The time required to complete an activity should depend not
only on the quantum of work to be executed (Q) but also the
resources allocated (R) and the (unit) productivity of the
resources (P).
✓ Sources of crew productivity data
▪ From company’s record
▪ From standard estimating guide
▪ Interviewing field personnel

✓ Consider non-work days, such as holidays, rain


(weather) days
✓ Simply put, the time required (T) to complete an activity can
be calculated using the following relationship, provided care
is taken to ensure proper units for all the quantities.
✓T = Q / (RxP)
✓ For example, the time taken to paint 100 m2 (Q) using 2
painters (R) and assuming each painter can do 5 m2 in an
hour (P), is simply 10 hours (T).
✓ Life in real projects is however, not as simple, and there
could be uncertainties involved in the estimation of
quantities, resources, and the productivity of a resource.
3. Determine the logical relationships:
▪ Determine which activity must precede, succeed or maybe done
concurrently.
▪ Consider resource (labor, equipment) limitation

4. Draw the logic network and perform the CPM


calculations:
▪ Finish date of the project, the critical path, and the available
float for non-critical activities.
▪ CPM network using one of the commercially available
computer software programs, such as primavera project
manager or Microsoft (MS) project.
5. Review and analyze the schedule
a) Review the logic
b) Make sure the activity has the correct predecessor
c) Make sure there is no redundant activity
6. Implement the schedule:
▪ Take the schedule from the paper to execution
7. Monitor and control the schedule
▪ Comparing what is planned to what is actually done
8. Revise the database and record feedback
▪ Cost and time estimates for activities are based on past experience
9. Resource allocation and levelling
Forward Pass
 Earliest Start Time (ES)
-Earliest time an activity can start without delaying the
project
-ES = maximum EF of immediate predecessors

 Earliest finish time (EF)


-Earliest time an activity can finish without delaying the
project
-Earliest start time plus activity time
EF= ES + t
Backward Pass
 Latest finish time (LF)
✓ Latest time an activity can be completed without delaying
the project
✓ LF = minimum LS of immediate successor
 Latest Start Time (LS)
✓ Latest time an activity can start without delaying the
project
✓ Latest Finish minus activity time

LS= LF - t
CPM calculation with AON
(example 1)
Draw the logic network and perform the CPM
calculation:
Solution
Graphical Solution

Project completion time = 23 days


CPM (ES = LS, EF = LF, & TF = FF = 0)
Slack(Float) of an Activity

 Slack is the length of time an activity can be delayed without


affecting the completion date for the entire project.
Slack = LS – ES = LF – EF
Critical activity has a slack of zero.
 For example, slack for C = 3 weeks, i.e. Activity C can be
delayed up to 3 weeks (start anywhere between weeks 5 and8).
ES5 LS8 EF9 LF12
tij
LF-EF = 12 –9 =3
tij
LS-ES = 8 – 5 = 3

tij
L-E- tij = 12-5-4 = 3
Float calculations
Total float (TF): the maximum amount of time an activity
can be delayed from its earliest start time without delaying
the entire project.
TF = LS – ES
OR
TF = LF – EF OR
TF = LF – D – ES
Free float (FF): The maximum amount of time an activity
can be delayed without delaying the early start of the
succeeding activities.
FFi = min(ESi+1) - EFi
Tabular solution for
Example 1
In the previous example, for example:
Activity C’s free float, FF = 11 – 11 = 0 days
Activity C’s total float, TF = 16 – 11 = 5 days

▪ Critical Activity
▪ Note: We must always realize that FF ≤ TF
▪ A lag is a minimum compulsory waiting period between the
start/finish of an activity and the start/finish of the
successor
❖ Actual waiting period maybe greater, but never less
than the lag
❖ Lags are very common with SS & FF relationships
❖ A lead is a negative lag
▪ The Lag is added in the CPM’s forward pass calculations
and subtracted in the backward pass.
Example 2 (with Lag)
Activity Duration Predecessor Lag
A 5 -
B 3 -
C 6 -
D 7 A
E 7 A
B 4
F 4 A,B,C
G 5 E
F 3
H 6 D
G 2
I 3 D,G
Graphic solution for
example 3
Tabular solution for
Example 3
✓ The preceding logic is similar to that of the forward
and backward passes:
✓ The early event time, TE, is the largest (latest) date
obtained to reach an event (going from start to
finish).
✓ The late event time, TL, is the smallest (earliest) date
obtained to reach an event (going from finish to
start).
Perform the CPM calculations, using the arrow network
diagram:

Activity IPA Duration


A - 10
B - 5
C - 7
D A 8
E A,B 9
F C 4
G D,E,F 5
H D,E,F 8
Solution
The arrow network shown below:
Solution
Project Evaluation and Review Technique (PERT)
▪ Developed in US Navy (1958) for the POLARIS missile
program
▪ The emphasis was on completing the program in the
shortest possible time.
▪ Many projects involve variability in activity times due to
factors such as lack of prior experience, equipment
breakdown, unpredictable weather conditions, late
delivery of supplies, and others.
▪ PERT had the ability to cope with uncertain activity
completion times (e.g. for a particular activity the most
likely completion time is 4 weeks but it could be anywhere
between 3 weeks and 8 weeks).
▪ Multiple task time estimates (probabilistic nature)
▪ PERT is based on the assumption that an activity’s
duration follows a probability distribution instead of being
a single value.
Three time estimates are required to compute the parameters
of an activity’s duration distribution:
▪ pessimistic time (tp) - the time the activity would take if
things did not go well
▪ most likely time (tm) - the consensus best estimate of the
activity’s duration
▪ optimistic time (to) - the time the activity would take if
things did go well

2
tp + 4 tm + to t p - to
Mean (expected time): te = Variance: Vt = =
2
6 6
Probability Calculations
Determine probability that project is completed within specified time
where  = te = project mean(expected) time
x-
Z=  = project standard mean time

x = (proposed ) specified time

Probability

Z

 = te x Time
Step 1: Draw the network.
Step 2: Analyze the paths through the network and find
the critical path.
Step 3: The length of the critical path is the mean of the
project duration probability distribution which is assumed
to be normal
Step 4: The standard deviation of the project duration
probability distribution is computed by adding the
variances of the critical activities (all of the activities that
make up the critical path) and taking the square root of
that sum
Step 5: Probability computations can now be made using
the normal distribution table.
A company is launching a new product and has made
estimates of the time for the various activities associated with
the launch as follows:
Times (Days)
Activity Predecessor
Optimistic Most likely Pessimistic
A None 1 3 5
B None 3 4 5
C A, B 1 3 11
D B 3 3 9
E A 1 2 3
F C 2 5 14
G E, F 2 3 4
H D, F 2 2 2
I G, H 10 10 10
Required:
1. Draw the network diagram.
2. Calculate the expected time and variance of each
activity.
3. Find out the expected length of critical path and its
standard deviation.
4. Find the probability that the launching will be
completed in 29 days.
5. Find the duration, which has 95% probability of
completion.
Answer
(i) Network Diagram
Key
3 9 5 14
EET LET
E
1 5
2

8 8 14 14 17 17 27 27
0
0

0 F G I
3 6 7 0
6 3 1
0 0 0

D H
2 4 8
4 2
4 4 14 15 16 17

Critical Path B-C-F-G-I


(ii) Calculation of Expected Time
, Standard Deviation
and Variance of Activities

Times (Days)
Activity

Pred.

Standard dev. Variance


to tm tp te
σ σ²
A - 1 3 5 (1+4*3+5)/6=3 (5-1)/6=0.67 0.44
B - 3 4 5 (3+4*4+5)/6=4 (5-3)/6=0.33 0.11
C A, B 1 3 11 (1+4*3+11)/6=4 (11-1)/6=1.67 2.78
D B 3 3 9 (3+4*3+9)/6=6 (9-3)/6=1.00 1.00
E A 1 2 3 (1+4*2+3)/6=2 (3-1)/6=0.33 0.11
F C 2 5 14 (2+4*5+14)/6=6 (14-2)/6=2.00 4.00
G E, F 2 3 4 (2+4*3+4)/6=3 (4-2)/6=0.33 0.11
H D, F 2 2 2 (2+4*2+2)/6=2 (2-2)/6=0.00 0.00
I G, H 10 10 10 (10+4*10+10)/6=10 (10-10)/6=0.00 0.00
(iii) Standard Deviation of the Critical Path(B-C-F-G-I)
σ= (total variance of critical activities)
= (0.11+2.78+4+0.11+0)
= 2.645
(iv) Probabilities of completion of job in 29 days. (from the
table).
X = 29 days
Z = ( 29-27)/2.645 = 0.76
For Z = 0.76 the probability is 0.7764 from the table of area
under normal curve or 77.64%.
(v) For 95% of area the corresponding Z value is 1.64
𝒙−𝟐𝟕
1.64 =
𝟐.𝟔𝟒𝟓
Then x = 27+2.645*1.64
=31.33 days
❖ Project managers may have the option or requirement to
crash the project, or accelerate the completion of the
project.
❖ This is accomplished by reducing the length of the
critical path(s).
❖ The length of the critical path is reduced by reducing the
duration of the activities on the critical path.
❖ If each activity requires the expenditure of an amount of
money to reduce its duration by one unit of time, then
the project manager selects the least cost critical
activity, reduces it by one time unit, and traces that
change through the remainder of the network.
❖ Generally, project cost may be classified as follows:
Project
Cost

Indirect Direct
Cost Cost

Fixed Variable
Cost Cost

 Direct Cost: It is the amount of cost, which is directly dependent on the amount
of resources involved to complete activities. The resources include labor,
materials, plants, equipment, machineries, payment to subcontractors, etc.
 Fixed Indirect Cost: These costs are independent of the progress of the project.
For example, initial expenditure, license, taxes, etc.
 Variable Indirect Cost: These costs are directly proportional to the project
time. For example, office OH, supervision costs, cost of providing utilities, etc.
Project Crushing
❖ In many instances, it is desirable to cut down the project
duration which naturally leads to cost considerations.
❖ The search for optimum duration and minimum cost can be
obtained by crushing techniques.
❖ Terminologies
▪ Crashing: reducing project time by expending
additional resources
▪ Crash time: an amount of time an activity is reduced
▪ Crash cost: cost of reducing activity time
❖ Goal:
▪ To reduce project duration at minimum cost
Time-Cost Tradeoff
❖ Project completion times may need to be shortened because:
▪ Different deadlines
▪ Penalty clauses
▪ Need to put resources on a new project
▪ Promised completion dates
❖ Crashing a project needs to balance
▪ Shorten a project duration
▪ Cost to shorten the project duration
❖ Crashing a project requires you to know
▪ Crash time of each activity
▪ Crash cost of each activity
Time-Cost Tradeoff
• Crashing costs increase as project duration decreases
• Indirect costs decrease as project duration decreases
• Reduce project length as long as crashing costs are less than
indirect costs

Min total cost Total project cost


=
optimal project time Indirect cost
∆C

Dec.IC

Inc.DC
∆T Direct cost

time
Activity Crashing
Increase In Direct cost
Crashed
cost Crashing activity

Slope = crash cost per unit time

Normal Activity
Normal
cost
Normal
time

Crashed Activity time


time
Steps on Project Crushing
Step 1: Compute the crash cost per time period(Crushing cost)
Step 2: Find the current critical path (CP)
Step 3: Find the lowest cost way to crash the CP by 1 time period
Step 4: Update all activity times. If further crashing is needed, go
to step 2.
❖ Note:
▪ When there is more than one critical path, each of the
critical paths must be reduced.
▪ Total Project Cost = ∑NDCi + t*IC + ∑CCi
• Where
– NDC is normal direct cost
– IC is indirect cost and
– CC is crushing cost
Example on project crashing
Calculate the optimum duration for the following project
data. Indirect cost is 200ETB/day. Time in days & crushing
cost is ETB per day.
3 3’ 13 24
3 3’ 13 26
3 3’ 13 29
D
5 5’ 1 4 15 31
10
G
6

25, 22 10,8
0 3 5
B H
s1 0 0’ 27 27’ 37 37’
s2 0 0’ 25 25’ 35 35’
s3 0 0’ 22 22’ 32 32’
s4 0 0’ 22 22’ 30 30’
2
8 20
8 18
8 15
8 15
❖ Stage 1(s1)
▪ Network diagram is draw, critical path analyzed i.e. A-E-H with duration
37 days.
❖ Stage 2(s2)
▪ Among activities A, E & H, activity A is cheapest to crash. Crash to full by
2days. Normally, 1 day at a time shall be crushed. Now, there are two
critical paths i.e. A-E-H & B-H each with 35 days.
❖ Stage 3(s3)
▪ Cost of H > cost of (E + B). So, crush E & B by 3 days each. Critical path
remains the same but duration 32 days. Each path can also be separately
crushed 1 day at a time.
❖ Stage 4(s4)
▪ A, E are fully crushed. B has scope but cannot be selected for crushing. So
the only one is H. Crash fully by 2 days. The duration will be 30 days.
Result Tabulation

Total Cost
∑Crushing
Duration
Stage

Remark
Indirect

Normal
Description

Direct
Cost

cost

Cost
1 All normal 37 7,400 25,500 0 32,900 Normal
2 Crush ‘A ‘ by 2
35 7,000 25,500 100 32,600
@50ETB/day
3 Crush ‘B’ & ‘E’ by 3 Optimum
32 6,400 25,500 625 32,525
@(100+75)ETB/day
4 Crush ‘H’ by 2 minimum
30 6,000 25,500 1125 32,625
@250ETB/day

Normal Direct Cost =


1,400+3,000+3,600+2,900+2,250+2,600+2,250+7,500 = 25,500
Result in graph

30 31 32 33 34 35 36 37 Activity time
Example 2
Normal Crushed Normal Crushed Crushing Crushing
Activity I.P Duration Duration Cost Cost Time Cost
A - 1 1 800 800 0 _
B A 7 4 1000 1600 3 200
C A 6 4 300 500 2 100
D A 3 2 400 800 1 400
E B 3 1 100 200 2 50
F B,C 7 5 500 800 2 150
G D 8 4 200 1400 4 300
H F,E 7 6 350 600 1 250
I F 5 3 700 850 2 75
J F,G 5 2 500 1000 1 500
K H,I,J 5 4 450 800 1 350
Merits of CPM/PERT
❖ Useful at many stages of project management
❖ Mathematically simple
❖ Give critical path and slack time
❖ Provide project documentation
❖ Useful in monitoring costs
❖ useful to answer:
▪ How long will the entire project take to be completed?
What are the risks involved?
▪ Which are the critical activities or tasks in the project
which could delay the entire project if they were not
completed on time?
▪ Is the project on schedule, behind schedule or ahead of
schedule?
▪ If the project has to be finished earlier than planned, what
is the best way to do this at the least cost?
Demerits of CPM/PERT
❖ Clearly defined, independent and stable activities
❖ Specified precedence relationships
❖ Over emphasis on critical paths
❖ Deterministic CPM model
❖ Activity time estimates are subjective and depend on judgment
❖ PERT assumes a beta distribution for these time estimates, but
the actual distribution may be different
❖ PERT consistently underestimates the expected project
completion time due to alternate paths becoming critical
❖ To overcome the limitation, Monte Carlo simulations
can be performed on the network to eliminate the
optimistic bias.
Factors CPM PERT
1 Field of application Construction Research & Development
2 Model emphasis Activity oriented Event oriented

3 Duration estimation One-time method Three-times method

4 Time-cost tradeoff Feasible Not feasible


5 Resources optimization Feasible Not feasible
6 Technique complexity Simple Comparatively difficult
Uses network, calculate
float, identify critical path & Same as CPM
7 Typical feature
activities, guides to monitor
& controlling prj.
Meeting time target or
Minimizing cost is more
8 Importance estimating % completion is
important
more important
Used where times cannot
Used where times can be
be estimated with
9 Usage estimated with confidence,
confidence. Unfamiliar or
familiar activities
new activities
 There are a number of project management software.
Some common ones include:
▪ Microsoft Project (Microsoft Corp.)
▪ Primavera Project Planner (Primavera)
▪ MacProject (Claris Corp.)
▪ PowerProject (ASTA Development Inc.)
▪ Project Scheduler (Scitor Corp.)
 MS Project & Primavera are common in Ethiopia
construction industry.

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