Lecture 3

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Network techniques

By:
Muhammad Wasim Bhatti

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SEQUENCE
1 Network Problems and Solutions

2 Resource Leveling

3 Earned Value Analysis

4 Project Crashing

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1 NETWORK PROBLEMS AND SOLUTIONS

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BASIC ARROW DIAGRAMING

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BASIC ARROW DIAGRAMING

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EXAMPLE

Suppose,
 B depends upon A
 C and D depends upon B
 E depends upon C
Draw the network (activity on
arrow) to represents above
relationship of activities.

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DUMMY ACTIVITY

Dummy activity is an activity which


does not consume resources but is
introduced in the network to give
logic to the network

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EXAMPLE

Suppose within a network,


 C depends upon A and B
 D depends upon B
Draw the network (activity on
arrow) to represents above
relationship of activities.

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EXAMPLE

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EXAMPLE

Suppose,
 B and C depends upon A
 D depends upon B and C
 E depends upon B
Draw the network (activity on
arrow) to represents above
relationship of activities.

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CRITICAL PATH AND SLACK OF ACTIVITIES
Activity Precedents
a Finalize Scope of Project -
b Effort Estimation a
c Kick-off Meeting a
d Project Plan a
e Team Formation d
f Cost Estimation b
g Task Assignment c, e
h Budget sharing f
i Follow-up on assigned Tasks g
j Monitoring and Controlling of h, i
activities

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CRITICAL PATH AND SLACK OF ACTIVITIES
Activity Precedents Days
a Finalize Scope of Project - 3
b Effort Estimation a 15
c Kick-off Meeting a 5
d Project Plan a 60
e Team Formation d 6
f Cost Estimation b 40
g Task Assignment c, e 10
h Budget sharing f 7
i Follow up on assigned Tasks g 6
j Monitoring and Controlling of h, i 12
activities

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CRITICAL PATH AND SLACK OF ACTIVITIES

f
3 6 h
b j
i 8 9
a c g
1 2 4 7
d e

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CRITICAL PATH AND SLACK OF ACTIVITIES

slack

18 f 58
3 38 40 6 78 h
b 7 85 j 97
15 i 8 85 12 9 97
0 a 3 c 69 g 79
1 0 3
2 3 5 4 69 10 7 79
6
d e
60 6
63
5 63 Critical path

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2 RESOURCE LEVELING

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RESOURCE LEVELING

Resource leveling is a project


management technique used to
examine unbalanced use of
resources (usually people or
equipment) , and for resolving over-
allocations or conflicts.
 It can also be used to balance the
workload of primary resources over the
course of the project

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RESOURCE LEVELING

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3 EARNED VALUE ANALYSIS

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EARNED VALUE ANALYSIS (EVA)

Assignment

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4 PROJECT CRASHING

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PROJECT CRASHING

Project Crashing is the process by


which duration of project is reduced by
INCREASING the amount of
RESOURCES allocated.
It is important to note that crashing is
done only to CRITICAL activities.
To do this for each activity we calculate
a cost/time slope (which is the cost per
day of crashing a project)
Slope = (crash cost – normal
cost)/(crash time – normal time)
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PROJECT CRASHING

Activity Precedenc Duration days Cost £ (normal, Slope


e (normal, crashed) (£/day)
crashed)
a - 3, 2 40, 80 40/-1 = -40
b a 2, 1 20, 80 -60
c a 2, 1 20, 50 -30
d c 2, 1 30, 60 -30
e b 3, 1 10, 80 -35

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PROJECT CRASHING

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b e
a 8 days
1 2 c 4 6 £120
d
5
3
b e
Crash e
a 7 days
1 2 c 4 6
£155
d
5

0 1 2 3 4 5 6 7 8 days
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PROJECT CRASHING
3
b e Crash e, a
a 6 days
1 2 4 6
c £195
d
5
3
b e
Crash e, a, d, e
a 5 days
1 2 c 4 6
£260
d
5

0 1 2 3 4 5 6 7 8 days
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PROJECT CRASHING

3
b e Crash e, a, d, e, b, c

a 4 days
1 2 4 6
c £350
d
5

0 1 2 3 4 5 6 7 8 days
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PROJECT CRASHING

£400
Cost x a,b,c,d,e,e

£300
x e,a,d,e

£200 e,a x
ex
x
£100

0 1 2 3 4 5 6 7 8 days

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