Schedule Network Analysis Techniques

• CPM (Critical Path Method) and

• PERT (Program Evaluation and Review Technique)

• Network technique stages:

1. structure analysis,
2. time analysis,
3. resource allocation analysis and
4. cost analysis.

So far we‘ve seen that Scrum as one of Adaptive approaches uses short cycles to
undertake work, review the results, and adapt as necessary. These cycles provide rapid
feedback on the approaches and suitability of deliverables, and generally manifest as
iterative scheduling and on-demand, pull-based scheduling.
But, in large organizations, there may be a mixture of small projects and large initiatives
requiring long-term roadmaps to manage the development of these programs using
scaling factors (e.g., team size, geographical distribution, regulatory compliance,
organizational complexity, and technical complexity). To address the full delivery life
cycle for larger, enterprise-wide systems, a range of techniques utilizing a predictive
approach, adaptive approach, or a hybrid of both, may need to be adopted. The
organization may need to combine practices from several core methods, or adopt a
method that has already done so, and adopt a few principles and practices of more
traditional techniques. So, the project management team selects a scheduling method,
such as schedule network analysis technique or already seen agile approach. Then, the
project-specific data, such as the activities, planned dates, durations, resources,
dependencies, and constraints, are entered into a scheduling tool to create a schedule
model for the project.
These schedule network analysis techniques are based on the application of modern
algebra, graph theory and mathematical statistics. Many different methods of schedule
network analysis techniques are known today, but all are essentially modifications of the
two basic and most applicable methods: CPM (Critical Path Method) and PERT

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(Program Evaluation and Review Technique).
The fundamental difference between these two methods relates to the ability of norming
time, cost, and resources. If these norms are known, then the CPM method is used, while
the PERT method is used in case of non-feasibility of norming, ie in the case when the
norms have a stochastic character.
All network techniques consist of the these stages: (1) structure analysis, (2) time analysis,
(3) resource allocation analysis and (4) cost analysis. The structure analysis is identical for
each project, regardless of the use of CPM or PERT, and consists of the ultimate in the
construction of the network diagram. In time analysis (according to CPM or PERT), the
network model is transformed into a mathematical one by determining the time quantities
(parameters) necessary to control the realization of the project.
Structure analysis and time analysis are performed independently of optimal resource
allocations. Therefore, in practical situations, due to limited resources, there may be
problems in the implementation of certain activities, so it is necessary to decide which
structure or time combination of activities is most favorable.
Techniques dealing with resource allocation analysis, due to the extensiveness of the
presentation, will not be considered here.
Cost analysis can occur only after structure analysis and time analysis. Since costs are
mostly related to resources, resource analysis is often set as a condition of cost analysis.
Cost analysis derives from the objectives of applying network programming methods that
include, in addition to requirements for structure analysis and time analysis, and
requirements for project implementation at minimal cost. Among the most well-known
methods for this analysis is the PERT / COST method, which provides a realistic forecast
of total project costs and the allocation of available resources while maintaining the
project completion deadline.

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 Structure Analysis
• Different events are interconnected by activities
• Network diagram is a finite graph oriented by arrows
• Graph: a set of points {1,2, ..., n} and a set of straight lines {(i-j)};
straight line (i-j) has a beginning at point i, an end at point j.
• Finite graph characteristics:
 there is only one point that does not enter any of the arrows, and
 there is one point from which no arrows exits.

Network programming methods are based on models where different events are
interconnected by activities. Such a model is called a network diagram.
In mathematical terms, a network diagram is a finite graph oriented by arrows, where the
graph is defined as a set of points (vertexes or events) {1,2, ..., n} and a set of straight
lines {(i-j)} that connect some pairs of these points so that any straight line (i-j) has a
beginning at point i and an end at point j. The finite graphs characteristics are: there is
only one point (event) that does not enter any of the arrow-oriented and there is one point
(event) from which no arrows exits.

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 Structure Analysis
• Network diagram basic elements are:
• project,
• activity, and
• Event
• Activity:
• a certain stage of the work process with spending time and money,
• waiting (only time is spent), and
• dependence without spending time and money (fictive or dummy activity)

i Aij j

The basic elements of a network diagram are: project, activity, and event. Project is a set
of organizational, economic and technical measures aimed at building new facilities,
systems and devices or performing other similar tasks. An activity is a partial task, job, or
process that takes place over time. The activity reflects: a certain stage of the work
process with spending time and money, waiting (only time is spent) and dependence
without spending time and money (fictive or dummy activity). The activity is represented
by oriented straight line while the dummy activity is represented by an oriented dashed
straight line. An event is defined as the moment of the beginning or end of an activity or
project. It is represented on the diagram by a circle. The event consumes neither time nor
resources and unlike the activities takes place instantaneously. The initial event is the
moment in which an activity can begin, while the final event is the moment of its
completion. Special attention is paid to the initial event of the project which has no
previous activities and the final event of the project after which there are no subsequent
activities. So, each project has only one initial and one final event. The representation of
the activity Aij and the events i and j that connect the activity Aij is illustrated in the
figure in bottom right corner.

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 Structure Analysis
• The structure analysis contains:
• defining a list of activities, and
• network diagram construction.
• For each activity it is necessary to determine:
• activities that must be completed before it can begin,
• activities following its completion,
• activities that must take place independently in parallel, and
• whether the activity under consideration can be divided into two or
more activities.

The structure analysis implies the determination of the logical order and
interdependencies of individual activities within the project. The structure analysis
contains: determing a list of activities, and network diagram construction. The list of
activities contains a list of all the work that must be done in order to implement the
project. Based on the list of activities, a graphical presentation of the project is performed
using a network diagram. All activities are systematically included in the network
diagram. For each activity it is necessary to determine: (1) activities that must be
completed before it can begin, (2) activities following its completion, (3) activities that
must take place independently in parallel and (4) whether the activity under
consideration can be divided into two or more activities. After determining the order and
dependence of individual activities, the construction of a network diagram is performed
on the basis of geometric rules of construction. Then the control is performed in relation
to the basic rules of drawing. At the end of the structure analysis, the project event is
numbered.

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 Geometric Rules
1. Arrows showing activity should be oriented from A B
1 2 3
left to right. The arrows themselves may intersect,
but care should be taken to avoid unnecessary
cross-sections.
2. Each activity begins and ends with an event.
3. The final event of the first activity is identical to the
initial event of the second activity.
4. If the completion of several activities conditions the
beginning of the next activity, then the final event of
all these activities is identical to the initial event of
the next activity.
5. If two or more activities start after the previous
activity has been completed, then all those
activities start in the final event of the previous
activity.

In order to present the project as a true picture of real activities, it is necessary to follow
certain guidelines and rules when drawing a network diagram. The network diagram
should represent a unique connected system of activities that is final and does not contain
alternative activities. The shape of the network diagram itself is not important, but it is
important to respect the order of activities. When drawing a network diagram, it is
necessary to follow these rules:
(1) Arrows showing activity should, as a rule, be oriented from left to right. The arrows
themselves may intersect, but care should be taken to avoid unnecessary cross-sections.
(2) Each activity begins and ends with an event. (3) If the completion of one activity
conditions the beginning of another activity, then the final event of the first activity is
identical to the initial event of the second activity. (4) If the completion of several
activities conditions the beginning of the next activity, then the final event of all these
activities is identical to the initial event of the next activity. (5) If two or more activities
start after the previous activity has been completed, then all those activities start in the
final event of the previous activity.

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 Geometric Rules
6. If two or more activities have a common initial and
final event, introduce a dummy activity in the initial or
final event.
7. If in one event a large number of activities end and
begin, which are not all interdependent, then the
actual dependencies are shown by means of fictitious
activities.
• Events numbering by Fulkerson's rule:
1. The initial project event is assigned number 1 (or 0).
2. All activities that come out of the numbered event are
crossed out.
3. Events that include all crossed out activities are
numbered. Ascending numbering from left to right and
from top to bottom is preferred. Steps (2) and (3) are
repeated until all events are numbered.

(6) If two or more activities have a common initial and final event, then their
identification is difficult, and in order to unambiguously define the activity, it is
necessary to introduce a dummy activity in the initial or final event. (7) If in one event a
large number of activities end and begin, which are not all interdependent, then the actual
dependencies are shown by means of dummy activities. An arbitrary number of dummy
activities can be introduced in the network diagram. Any activity can take place only
once, so no loops or cycles can appear in the network diagram.
Fulkerson's rule is used for numbering events involved in the project scheduling network.
After the construction of the network diagram and control in relation to the rules of
drawing, the numbering of events by Fulkerson rule is done according to which:
(1) The initial project event is assigned number 1 (or 0).
(2) All activities that come out of the numbered event are crossed out.
(3) Events that include all crossed out activities are numbered. Ascending numbering
from left to right and from top to bottom is preferred. Steps (2) and (3) are repeated until
all events are numbered.

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Structure Analysis; Example 1

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Structure Analysis; Example 2

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Structure Analysis; Example 2 Solution