Disclosure to Promote the Right To Information

Whereas the Parliament of India has set out to provide a practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority, and whereas the attached publication of the Bureau of Indian Standards is of particular interest to the public, particularly disadvantaged communities and those engaged in the pursuit of education and knowledge, the attached public safety standard is made available to promote the timely dissemination of this information in an accurate manner to the public.

इंटरनेट मानक

“!ान $ एक न' भारत का +नम-ण”Satyanarayan Gangaram Pitroda

“Invent a New India Using Knowledge”

“प0रा1 को छोड न' 5 तरफ”Jawaharlal Nehru

“Step Out From the Old to the New”

“जान1 का अ+धकार, जी1 का अ+धकार”Mazdoor Kisan Shakti Sangathan

“The Right to Information, The Right to Live”

“!ान एक ऐसा खजाना > जो कभी च0राया नहB जा सकता है”Bhartṛhari—Nītiśatakam

“Knowledge is such a treasure which cannot be stolen”

“Invent a New India Using Knowledge”

है”ह”ह

IS 14580-2 (2006): Use of network analysis for projectsmanagement, Part 2: Use of graphic technique [MSD 4:Management and Productivity]

IS 14580 (Part 2) :2006

Indian Standard

USE OF NETWORK ANALYSIS FOR PROJECTMANAGEMENT

PART 2 USE OF GRAPHIC TECHNIQUES

ICS 03.100.40

0 BIS 2006

BUREAU OF INDIAN STANDARDSMANAK BHAVAN, 9 BAHA”DUR SHAH ZAFAR MAR”G

NEW DELHI 110002

October 2006 6 Price Croup 11

Management and Productivity Sectional Committee, MSD 4

FOREWORD

This Indian Standard (Part 2) was adopted by the Bureau of Indian .Standards, after the draft finalized by theManagement and Productivity Sectional Committee had been approved by the Management and Systems DivisionCouncil.

A project is described as a one time activity with an identifiable beginning and an identifiable end unlike otherroutine activities that are repetitive. It has a well defined purpose and scope and a .detinite set of separate butinterrelated and interdependent activities that must be completed to achieve the objectives for which the projectis instituted. It has a well defined project product, including product performance criteria and well definedcompletion criteria.

This standard is published in two parts. Other part in the series is:

Part I Management, planning, review, reporting and termination procedures

Part 1of this standard dealt with the basic aspects of project management that were applicable to the projects fromconception to completion/termination using network techniques.

Project network techniques as used now, have developed since the mid 1950s. These developments include bothactivity-on-arrow and activity-on-node systems. The technique as developed aimed at improving the ability toplan and control complex engineering projects and was called Critical Path Method (CPM). Probabilistic elelmentsappropriate to the research and development (R&D) area were also included in a modified technique calledProgramme Evaluation and Review Technique (PERT). This standard provides guidance on the factors that areto be considered while choosing between the various networking techniques. It deals with the drawing methodsto be used for presentation of these techniques and in particular for presentation of activity-on-arrow and activity-on-node diagrams including the conventions to be used.

Activity-on-arrow networks were quite popular in the manual handling of networks. With the increasing use ofcomputers for processing, activity-on-node or precedence networks have now become more popular. A numberof ready-made sofiware packages are available for use on computers which provide support not only for planningbut also for updating and monitoring of progress from time-to-time. The technique has since been extended tohandle scheduling of resources, uncertainty of outcome as well as duration and many other specific parameters.

Systems based on network analysis provide various advantages over the conventional methods of planning andcontrol based on bar charts. These advantages may include:

a) Clearer definition of the scope of the project and the complex interrelationships between its constituentactivities;

b) Better coordination between different agencies engaged in the project and provision of informationabout each agencies progress and future plans to the others;

c) Ease of preparing schedules of activities and adjusting these schedules to last minute developments;

d) Ready means of reviewing the project and exercising control over time, resources and costs; and

e) Clearer identification of critical and risk areas, besides providing an excellent model for generating‘what-if scenarios for making management decisions.

1S 14580 (Part 2) :2006

Indian Standard

USE OF NETWORK ANALYSISMANAGEMENT

FOR PROJECT

PART 2 USE OF GRAPHIC TECHNIQUES

1 SCOPE

This standard (Part 2) deals with the various graphictechniques used in project management in its variousaspects and during its various phases of execution. Themethodology of using these various graphic techniquesas covered in this standard, include the following:

a)

b)

c)

d)

e)

o

i?)h)

j)k)

Bar charts (Gantt charts),

Milestone charts,

Activity-on-arrow charts,

Activity-on-node charts,

Squared network,

Histogram,

Time variance charts,

Cost variance charts,

Resource utilization charts, and

Resource productivity charts.

2 REFERENCE

The following standard is a necessary adjunct to thisstandard:

1SNo. Title

IS 14580 Use of network analysis for project(Part 1) :1998 management : Part I Management,

planning, review, reporting andtermination procedures

3 BAR CHARTS

3.1 A bar chart is one of the easiest, convenient andmost widely used means of graphical display of projectactivities on a time scale. A bar chart can be used bothfor displaying the plan and status report to track andmonitor progress and provide important feed back tothe team members for appropriate action. It is a twodimensional representation showing the variousactivities on the vertical axis and their time on thehorizontal axis. 1S 14580 (Part I) may also%e referredfor guidance in graphical representation pertaining totypical bar charts.

3.2 Typically a bar chart is drawn on a single sheet sothat the entire project and the accompanying set ofactivities including the project goal can be seen at aglance. A bar chart for an entire project, groups many

I

activities together and maymilestones.

also show major eventsl

3.3 For drawing the bar chart, start with listing downthe activities along with their time duration. Dependingon the project duration and duration of each of theactivities, a suitable time scale may be selected. A barchart would then be drawn as a two-dimensionalrepresentation of various activities of the project plottedon the vertical axis and their duration flowing fromIetl to right on the horizontal axis.

3.4 Bar charts can also be drawn to reflect resourcescheduling, where instead of listing activities in rowsin the left margin, these are substituted with the nameof the specific resource element like personsresponsible, department names or pieces of equipment.Clause 9 pertaining to resource utilization charts canbe referred for more details.

3.5 Figure I shows representation of a bar chartpertaining to a simple house building project. Thelower line with troughed ends represent scheduled startand the~cheduled finish of the planned progress, whilethe darker upper straight line represents the part ofactivity that has been completed as on the date ofreview. The review point in Fig. I reflects the statusof various activities .at the time of review. A review ofthe status indicates that though excavation started abit late but was completed on time. The foundationwork was completed ahead of schedule. !,Thesuperstructure activity though started ahead ofschedule, went beyond planned schedule, therebydelaying the start of the roofing activity.

3.6 The value of bar chart can be further enhanced byquanti~”ing the total work for an activity and alsoallocating appropriate quantities on the bar for eachtime unit. This quantity could be in terms of physicalparameters like as shown in Fig. 2 or in financial termsas shown in Fig. 3.

3.7 Incorporating the quantity of each activity, inrelevant measurement units, with their planned/actualperiodic break-ups under or over the respective barscan further enhance the usefulness of a bar chart. Thishas been shown in Fig. 2, which depicts physicalprogress quantified bar chart. Figure 2 is also calledthe milestone bar chart (see 3). Depiction of milestones

.

N

REVIEW POINTSL TIME + Period I MonthsNo. REMARKS

ACTIVITY $ JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY

1 EXCAVATION

2 FOUNDATION t I

3 SUPERSTRUCTURE I I

4 ROOFING I

5 PLASTERING

6 FLOORING I I

7 DOORh/VINDOW/SERVICE

I

8 FINISHING I I

LEGEND:- — ACTUALSTARTANDFINISHOF THEACTIVITY.

U SCHEDULEDSTARTANDSCHEDULEDFINISHOFTHEACTIVIm.

FIG. 1 BAR CHART FOR CONSTRUCTIONOF AHOUSESHOWING STATUS—

PLANNED versus ACTUAL COMPLETION TIME ATTHE REVIEW POINT

w

I 1 EXCAVATION

3 SUPERSTRUCTURE

4 ROOFING

I5 I Plastering

I6 I FLOORiNG

El===I 8 I FINISHING

g-fJ

500

100

300

250

1350

300

4.0

1.5d

REVIEW POINTPeriod I Months

UNITOF JANUARY FEBRuARY~ REMARKS

MEASUREMENTMARCH APRIL MAY JUNE JULY

~3 *r

I w4 II , , 1 1

~3 70f% 175 11

I90 160

~2 1’100 ,

I I I I I I I I

1 I 1 1 t I I 1I

Rs. Lakhs I I I I IRs.Lakhs I Y

LEGEND:-\ ! ACTUMQUANTITYOFWORK.

u PLANNECIQUANTIWOFWORK.

V MILESTONE

FIG. 2 MILESTONE BAR CHART FOR CONSTRUCTIONOF A HOUSE SHOWINGACTIVITY-WISE

PLANNED versus ACTUAL QUANTITIES COMPLETEDATTHE REVIEW POINT

SLNo<

1

2

3

4

5

6

7

6

REVIEW POINT!3m. I Months

BUDGETEDACTIVITY ~ COST(Rs. Lakhs~ JANUARY FEBRUARY MARCH APRIL MAY JUNE~ JULY

REMARKS

EXCAVATION 0.40 0.4 J

FOUNDATION 1.60 I::; $%

SUPERSTRUCTURE 4“0 ‘1::1.0 I

2.0 3.0 1 r

ROOFING 5.0 t ‘ 1.6

PLASTERING 1.50 1.50

FLOORING 2.00 I 1.20 0.8 YDOOIVWINDOW/SERVICE 4.00 I 1.0 3.0

FINISHING 1.50 \ 0.1 1.0 0.4

1TOTAL 20.0 ACTUAL 1.30 3.70 3.00 3.00 3.8d 4.60 0.40

8UbGETED 1.80 3.50 2.70 3.20

LEGEND:-1 [

L I

ACTUALCOST.

BUDGETEDm=

FIG. 3 BAR CHART FOR CONSTRUCTIONOF A HOUSE SHOWING

BUDGETED AND ACTUAL COST BOOKED

ACTIVITY-WISE

1S 14580 (Part 2): 2006

on bar charts greatly enhances their usefulness, sincethe implications of any slippage in their accomplishmentcould lead to delay in project completion. They shouldbe specified clearly and refer to completion of detlnedactivities or major deliverables.

3.8 The health of a project can be gauged by trackingexpected changes in the dates on which the milestoneevents are expected to occur. Appropriate correctivemeasures could then be taken to control the slippage,if any.

3.9 Figure 3 showing financial progress, presents aslightly different version of the same bar chart, in whichthe activities have been evaluated as per their budgetedcost provisions for the planned schedule and the actualcost booked for the part executed. The periodic(monthly in this case) summations in the bottom rowof the forecast provisions and the actual cost incurredduring -execution reflect the overall picture of theperformance of the project in financial terms. A reviewof the referred project as at end of April indicatesachieved progress of 1.30 Iakhs, 3.70 lakhs, 3.00 Iakhsand 3.00 lakhs against corresponding planned targetsof Rs. 1.60 Iakhs, 3.50 Iakhs, 2.70 lakhs and 3.20 Iakhsfor the months of January, February, March and Aprilrespectively.

3.10 A limitation of bar. charts is that they do notcontain dependency relationships. For small projects,these can be visualized but for bigger projects it maynotbe so.

4 MILESTONE CHART

4.1 In case of bar charts the assumption is that physicalprogress is only resource dependent. But in actualpractice, the physical progress is not always resourcedependent, there may be other dependency constraints.Milestone charts can eliminate this shortcoming of barchart by associating percentage progress towards thecompletion of project with achievement of everymilestone.

4.2 Milestones are event of significantaccomplishment in the progress of the project. Theseevents can be recognized by all concerned. These arephysically verifiable and hence can form check pointsfor evaluation and reporting of progress. For a projectwhere final finished output is likely to be availableonly after a long time, the milestones can be treated asintermediate targets.

4.3 Forms of Presentation

4.3.”1 Instead of indicating the progress to beachieved in the form of a bar, the milestones to becompleted are shown on the chart in Fig. 4 in theform of an inverted triangle. The description of

milestone may also indicate the percent progress ofproject achieved on completion of the milestone.Affixing the symbol at the actual row likewise showsthe actual date of accomplishment ofa milestone. Formilestones yet to be accomplished, the anticipatedcompletion date wil I be shown as hollow invertedtriangle onthe dotted line.

4.3.2 For example in Fig. 4 which shows the milestonechart for a small project involving placement ofpurchase order. The issue of order is scheduled in themonth of July. This means that if the output of thegroup is measured in terms of the issue of this order,the measurable output would come only after 6months. Now if the milestones involved in this workare scheduled as shown and if the percentage of totalwork involved upto a mi Iestone can be settled inadvance then on achievement of a milestone it can beassumed as if that fraction of the work has beencompleted.

4.3.3 Figure 4 shows the milestones completed as onend March, which is the review point. The requisitionfor item has been received in middle January as againsttarget of beginning of January. Similarly receipt of bidhas taken place in March as against schedule ofFebruary. As per this milestone chart, by end of April‘recommendation to client’ milestone equivalent toabout 85 percent of the work should have beencompleted, As against this only ‘receipt of bid’milestone equivalent to 15 percent of the work has beencompleted. The projected completion date of theproject gets shifted to August end.

4.3.4 A milestone by definition is an event whichenables us to know when something should occur, butnot what should be done to make it occur. For the totalproject the milestone chart can serve as a documentgiving an overview of the project and its status at anypoint of time. It is mostly used for providinginformation to senior management. Figure 5 shows atypical milestone chart of a long gestation period powerproject at the scheduling stage, wherein only majorevents of the project have been shown as milestones.The horizontal time scale is like a normal bar chartwhile the milestones have been listed in the columnon the .Ieft side.

4.3.5 Another usefhl variation of milestone chart isthe milestone slip chart. In this; while the horizontaltime scale is like a normal bar chart, the vertical axisalso represents time, with each line reporting aparticular reportheview date. The chart is read fromtop to +ottom and allows us to see at a glance howdates of any specific milestone have slippedhecoveredas the project progresses. A typical milestone slip chartis shown in Fig. 5 where ‘the key events are themilestones.

5

.

-.

REVIEW POINT.A

PROGRESSPeriod

wlI Months 00

DESCRIPTION IN% IN TOTALo

WORK DONE~

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Y*N

SCH..

RECIEPT OF o% w t-3oREQUISITION

oACT U?

v

SCH

ISSUE OF ENQUIRY 5% wACT

vSCH

RECIEPT OF BiD15% w

ACTv

TECHNICAL SCHEVALUATION 70% w

OF BIDS COMPLETE ACTtANTv

RECOMMENDATIONSCH

85% w

TO CLIENT ACTIANTv

ISSUE OF LETTER SCHv

OF INTENT90%

ACTIANTv, 1

ISSUE OF SCHPURCHASE 100 % w

ORDER ACTIANTv

LEGEND:- V SCHEDU&DDATES

ACTUALDATES

ANTICIPATEDDATES

FIG.4 MILESTONE CHART FOR PROJECT-PLACEMENTOF ORDER

IS14580

(Part

2):2006

,

7

IS 14580 (Part 2) :2006

5 ACTIVITY ON ARROW NETWORK

5.1 There are two types of network used in the networktechnique. These are activity-on-arrow and activity-on-node. Activity-on-node network is also referred toas precedence network. Definitions of important termsused in activity-on-arrow network are:

a) Activi& — An activity is a task or a group oftasks in the project which consumes resourcesand time. An activity is represented by anarrow.

b

b) Event — Event is a point of time in a projectand is normally used to denote starting orcompletion of one or more activities andconsumes no time and resource. Everyactivity is denoted by starting event or tailevent and ending event or head event.. Anevent is represented by a small circle.

(3c) Dummy activity — An activity which

represents only an interdependency and doesnot consume either resources or time.

-------------- +

NOTE — It is sometimesreferredto as zero timeactivity.

d) Activity-on-arrow network — The network isa means of representing the interrelationshipsbetween the different activities to beperformed in a project. The network consistsof arrows and nodes where arrow representsactivity and nodes represents event. A typicalexample of an activity-on-arrow network isgiven in Fig. 6.

e) Float — The extent of cushion or flexibilityof time available with the activity/activities

—.

in the chain by which the activity/activitiescan be delayed without affecting thecompletion time of the project.

Critical activity — An activity with zero floatwherein any delay in completion of theactivity will delay the completion of projectby the same magnitude of time.

Milestone event — An important or key eventin the project denoting a significant stage inthe project which may be important for itsmanagement such as beginning/completion ofsignificant activities, the events having a pre-set or imposed date, etc.

Interface event — An interface event is acommon event which shows the linkagesbetween activities performed by more thanone agencies. It may also denote linkagebetween activities belonging to two or moresub-projects or two or more projects.

5.1..1 Recommended Conventions and Symbols

It is recommended to use conventions and symbols thatmake logical links more obvious and understandable,and therefore aid in the interpretation of the network.Important symbols and conventions are mentioned inTable 1.

5.2 Recommended Conventions in Drawing theNetwork

5.2.1 The activity-on-arrow network and its~recedence rules have been explained in 1S 14580(Part 1). However, the following specific conventionsmay be followed in drawing the network.

a) The network may be drawn from left to rightstarting with the activity (ies) which has nopreceding activity in the project, then proceedwith drawing of successive activities forwhich preceding activity has already beendrawn.

FIG. 6 EXAMPLEOF ACTIVITY-ON-ARROW NETWORK

8

-..

IS 14580 (Part 2) :2006

Table 1 Recommended Symbols for Use on Activity-on-Arrow Network

(Clause 5.1. 1)

SI Name Symbol DescriptionNo.

(I) (2) (3) (4)

@

The Ietl hand side of the symbol is usedt’orwriting the

1) Eventevent number. [n the right hand side, the earliest eventtime and the latest event time calculated for the eventare written

Description/Code The activity description/code is given above the arrowii) Activity and duration (and resources, if required) below the

Duration/resources arrow. The arrows are normally drawn from left to right

iii) Dummy Activity -F[t is shown as dotted arrow and normally drawn from___________________left to right (without descriptionand duration/resources)

iv) Critical Activity b An arrow with double [ine/thick line

v) Interface Event

o@

[t is denotedby an additional circle around the symboldenotingthe event

vi) Milestone Event ❑ It is denoted by a square with 3 parts as in the caseofother events

b) Arrows imply logical precedence only. Neitherthe length of the arrow nor its compassdirection on the drawing have anysignificance.

c) The head event of an activity should havehigher number than its tail event. Thisfacilitates the analysis during forward passand backward pass as the forward pass canproceed in ascending order of event numberand backward pass in descending order ofevent numbers.

d) Each activity in the network must haveuniquely identified tail event and head event.This implies that there would not be anotheractivity between same pair of tai I event andhead event.

e) All events in the network should have uniqueidentification number. No two events in thenetwork should have same number. In theinitial drawing of the network, sufficient gapsmay be given in successive event numbers.This would facilitate addition of new eventsin proper number sequence, as and whennecessary, during subsequent reviews.

f) Every project network should have a uniquelyidentified starting event denoting thebeginning of the project and uniquelyidentified terminal event denoting thecompletion of the project.

g) When there are parallel chains crfactivity andan activity in one chain is also dependent onan activity in other chain, the dependence maybe indicated by joining the event in the twochains by Dummy Activity as show in Fig. 7.

Dummy Activity may also be used to avoidmultiple activities between the same pair ofevents.

h) Restraints and ladders — [n a sequence ofactivity like the one shown in Fig. 8, it maynot be necessary to complete the precedingactivity fully before starting the next one.

It maybe possible to break each activity intobatches and several batches that may beprocessed in parallel, while the activities inthe same batch would follow the sequentialorder. [n such cases, each activity is split inton batches (n may be 2, 3, 4..,), that is, P is

broken into PI to P,),S into S, to S“and R intoRI to R. where PI, S, and RI represent firstbatch after which next batch of activity couldbe planned to start for example, after P,, S,

could start and similarly atler S,, R, could start.Theceatler it is presumed that other batcheswould be processed in similar manner.However, in the last batch of activities S,,would succeed P., and R., would succeed .~n.This is represented by ladder network asshown in Fig. 9.

9

1S 14580 (Part 2) :2006

c

“o25

\\ Dummyi

D “o30

FIG. 7

P s R

FIG. 8

IIII

SI

IIII

RI

FIG. 9 LADDER NETWORK

j) Avoid following types of error in drawing network:

1) More than one activity between the same pair of events is prohibited and curves should be avoided.Use dummy activity in such cases.

Incorrect Network

B

Correct Network

I / -

W-c3

10

IS 14580 (Part 2): 2006

2) Arrows should not move backwards from right to letl.

Incorrect Network Correct Network

B

i

A

3) Crossing of arrows should be avoided, wherever possible.

Incorrect Network Correct Network

P

4) Where-crossing of arrows is inevitable, it should be shown-by the arrow with a kinc at the crossingpoint.

●

Superfluous dummies should be avoided.

Incorrect Network Correct Network

5)

t

I /“”r-Y

5.2.2 Levels of Network

5.2.2.1 Big projects consisting of large number of tasksare usually broken down into various levels for use atvarious levels of management in the organization. Thetop management may like to take a broad overview ofthe project, while the operating level may be moreinterested in the detailed tasks to be executed. Usuallythree levels of networks, denoted by L-I, L-II and L-111are prepared for progress review and monitoring at thehighest level, middle level and operating levelrespectively.

5.2.2.2 The hierarchy of levels is shown in the diagramgiven in Fig. 10.

An activity at L-1 level may compose of an aggregate

11

R2

A B

@-@@

of a package of activity at L-1I level and an activity atL-II level may compose of aggregate of a package ofactivities at L-111level. Details of individual componentactivity would appear at L-111or the lowest level ofthe network.

5.2.2.3 L-1 networks

L-I networks reflect integration of all contractpackages or efforts of all concerned and not only onepackage or assignment of any specific agency/department involved in the project implementation.This network represents tasks (in broader terms)required to be undertaken during the projectimplementation and thus exhibits various tasks, theirinter-relationship, time duration (usually in months),

1S 14580 (Part 2) :2006

/

Individual/ExecutionLevel Packages: L-HI

\

FIG. 10 HIERARCHY OF LEVELS

critical path, milestone event and completion time ofthe project. This network is primarily used forprogress review and monitoring at the highest/boardlevel of the organization. In case of smaller projects,L-1 network may not be essential as L-H and L-IIImay be sufficient for planning, execution andmonitoring of project. For a project ‘New PlantConstruction’ requiring completion time of about 2%years, the L-1 network would be useful. The list oftasks/activities, their dependency and time durationof the project ‘New Plant Construction’ is given inTable 2 as an example and the L-I “network drawn onthis basis is shown in Fig. 1[.

5.2.2.4 L-11 networks

L-11networks are prepared for a particular package(s)involving majors tasks like, procurement of equipment,their erection, trial runs, commissioning, etc, to beundertaken by different agencies/departments. Thisnetwork shows tbe interrelationship of variousactivities, their time durations (usually in weeks),critical-path and completion time. The beginning andthe end of L-11 network will interface with thebeginning and the end of corresponding activity in theL-I network, where it exists. The progress reviewmonitoring and various activities using L-II networkis normally within the control of concerned agency/department responsible for executing the package(s)/major task(s). L-II networks integrate with L-Inetworks throughout the execution of the projects.Example of L-II network for new plant constructioncould be ‘Commissioning of certain major equipment’,‘Recruitment of employees’, ‘Fabrication work of plantat site’, etc. The list of activities, their dependence,time duration for ‘Recruitment of employees’ is givenin Table 3 as an example and the network drawn onthat basis is shown in Fig. 12 which is expected to take7 months (30 weeks).

5.2.2.5 L-111 networks

L-ltI networks are prepared for a specific task to beundertaken by a particular individual or a group. T-hismay involve task like procurement of particularequipment, civil construction of a specific part of aproject, erection of an equipment, etc. L-1II networksusually contain detailed activities with time durationexpressed in days/shifts/hours. The activities of L-II [networks contribute towards completion of task(s)reflected in the L-11networks. The beginning and the

.

end of L-111network wiII interface with the beginningand the end of corresponding activity in the L-IInetwork, where it exists. These networks are usuallyconverted in the form of bar charts for execution andmonitcwing. An example of L-III network is given inTable 4 which could be ‘conduct of activity H’ whichis expected to take 5 weeks (35 days) (see Table 3).

5.3 Guidelines for Drawing a Network

5.3.1 Work Breakdown Structure and inter-

relationship Among Activities

a)

b)

c)

d)

The project should be broken down into majorwork packages. Each work package shouldbe further broken down to contain all theactivities required to be performed for itscompletion;

List all the activities to be carried out tocomplete each work package;

Ensure that no activities/tasks required forcompletion of the work package are excluded.Care should be taken to include the activitieslike approvals, transmission of information,etc; and

Establish the inter-relationship of activities.It is essential that the network logic isdeveloped in consultation with main

12

IS 14S80 (Part 2) :2006

Table 2 Example of L-I Network Project: New Plant Construction

(Clause 5.2.2.3)

.S1No. Task/Activity Code Task/Activity Dependent on Duration (Months)

(1) (2) (3) (4) (5)

i) A Preparedetailed specifications — 3

ii) B Develop plant site A 5

iii) c Complete civil scopedrawings A 2

iv) D Prepare fabrication drawings A 4

v) E Preparespecificationfor importedcomponents A 4

vi) F Purchaseimportedcomponents E 10

vii) G Recruit personnel A 7

viii) H Train personnel G 8

ix) 1 Fabricate plant D r2

@ J Procure locally available materials D 5

xi) K Dispatch fabricated plant to site I 4

xii) L Dispatch locally available materialsto site J 3

xiii) M Dispatch importedcomponents F 2

xiv) N Erect plant H, K, L, M&P 6

xv) o Conduct trail runs N I

xvi) P Complete civil work B&C -1

xvii) Q Commission plant P —

LEGEND

A

D-4

Critical Activities

m

2: Milestone event number2X

Yx: Earliest milestone event

Critical Activity Aoccurrence time

y: Latest milestone event

Dummy Activityoccurrence time

Time duration for

(B

x 4: Event number

activity D :4 months 4Yx: Earliest event occurrence timey: Latest event occurrence time

FIG. 11 EXAMPLE OF L-1 NETWORK: NEW PLANT CONSTRUCTION

13

Table 3 Example of L-11 Network: Recruitment of Employees

(Clauses 5.2.2.4 and 5.2.2.5)

S1No. Activity Code’) Description Time (Weeks)

(1) (2) (3) (4)

i) A Manpower assessment 4

ii) B Compilation 1

iii) c Approval 1

iv) D Designing of the advertisement 2

v) E Releaseof the advertisement 1

vi) F Receipt of the applications 4

vii) G Scmtiny of applications 1

viii) H Conduct examination 5

ix) I Selection of paper evaluators 3

x) J Constitutescreeningcommittee 1J

xi) K Evaluate papers 4

xii) L Preparemerit list 1

xiii) M Selectpersonnel 1

xiv) N Issueappointment letters(P-1) 1

xv) o Joining of personnel(P-I) 4

1 xvi) P Issueof appointment Jetted(P-H) I 1

xvii) Q Joining of personnel(P-l]) 4

I) Representssub-activity of G like A, B, C, etc

J

NOTE — For legend refer to L-1 Network.1 2?

~6 ()

163’!431

Q4

; 152727

FIG. 12 EXAMPLE OF L-II NETWORK — RECRUITMENT OF EMPLOYEES

1S 14580 (Part 2) :2006

,

Table 4 Example-of L-III Network — Conduct of Examination(Refer Activity H of L-11 Network)

(Clause 5.2.2.5)

S1No. Activity Code’) Activity Description Preceding Activities Duration(Days)

(1) (2) (3) (4) (5)

i) A Select eentres — 12

ii) B Receive papersfrom paper setters — 12

iii) c Arrange printing of papers B 15

iv) D Dispatch paper to eentres c 7

v) E Appoint centresupport A 6

vi) F Appoint eentre invigilator and otherstaff E 6

vii) G Finalize seatingplan and furniture A 3

viii) H Arrange seatsasper plan and put on notice board G 1

ix) I Issuecentretickets to candidates A 6

@ J Check paper pareels,No. of paperssubject-wiseetc D 0.4

xi) K Distribute papersfor writing by candidates J 0.4

xii) L Collect papers,verify and dispatchto evaluators K 0.2t

II Representssub-activity of H.

NOTE — For legend refer to L-1 Network.

FIG. 13 EXAMPLE OF L-III NETWORK — CONDUCT OF EXAMINATION

contributors to the project, namely, thoseinvolved in the execution of the activities ofthe project.’

5.3.2 Leve[ of Details of Various Activities

It is required to be consistent with the level Qf detailwithin a network. The level of detail will depend onthe following:

a) The project structure and the level of controlfor example, the time duration of the activitiesand the frequency of review and updation. It

b)

c)

d)

15

should be noted that the completion of anactivity usually implies a change Qf control,responsibility or supervision;

In some cases, an external authority (customer,government department, etc) may imposesome activities that will then determine thelevel of detail for the network;

The level ofdetai{ should be consistent at eachlevel of management and reflect the scope ofdirect control at each level; and

Include details (of the appropriate level)

IS 14580 (Part 2)-: 2006

relevant to the uses for which the network isprepared like communication, coordination,supervision, etc.

5.3.3 A4ethod,for Drawing Network

a)

b)

c)

d)

e)

List all the activities which do not have anypre-condition or preceding activities;

Draw all these activities in parallel from thestarting node;

After this, draw the activities which arefollowing the project activities already drawnand are dependent on the completion of thoseactivities;

Find out any external activity (ies) orcondition(s) that might govern the start ofthese activities; and

Proceed to the subsequent activities in thesame manner throughout the network.

It is essential that the network logic is developed inconsultation with the mah contributors to the project,namely those involved in the execution of the project.

5.3.4 Important Points to Remember for Drawing the

Network

a)

b)

c)

d)

e)

o

g)

As far as possible, avoid activity arrowscrossing each other in order to assist legibility;

Make every activity arrow (or a horizontalpart of it) long enough to carry any additionaltext;

Sepdrate parallel activity arrows sufficientlyto ensure that their texts cannot be confusedwith each other. If possible, the spacingshould be sufficient to facilitate anysubsequent logic changes;

It is helpful to allocate temporary eventnumbers during the development of a networkto facilitate any subsequent changes;

Make the longest chain of arrows, thecentreline of the drawing sheet and spaceevents equally along this line;

Add other chains of activities, workingoutwards from the centre. It maybe necessaryto re-draw parts of the network to reducecrossovers; and

To enable easy reading of the network thefollowing points may be helpful:

1)

2)

Those parts of the activity lines notparallel to the base line should, whereverpossible, be kept at a constant angle butnot vertical;

Keep a consistent vertical spacing betweenactivity lines (a minimum spacing of notless than 25 mm is recommended); and

3) Where dummies have to cross severallines, vertical lines angled at top andbottom may be used.

5.3.5 Numbering the Events

a)

b)

c)

d)

e)

For numbering the events start from left toright and top to bottom direction of thenetwork;

When numbering the events initially, it isrecommended to use the number in themultiple of 10 that is iO, 20, 30 to facilitateadding more events subsequently withoutaltering the numbers of existing events;

The event which does not have any precedingevent(s) should be considered as the startingevent(s) and should be numbered first;

All the succeeding events to the abovementioned events be-numbered thereafter inthe same manner; and

Same procedure should be adopted for allevents.

5.3.6 Formal Network Preparation

When a satisfactory plan has been established, it isdesirable to produce a formal copy of the network thatis easily readable and therefore, readi Iy acceptable tomanagement. Formal copies are also needed for recordpurposes. These can be either manual or computergeuurated.

5.3.7 Considerations for the General Layout of the

Network

5.3.7.1 If the number of activities is large, it ispreferable to use several sheets of reasonable size ratherthan one very large sheet. If more than one sheet isneeded, it is more important to subdivide a project intomeaningful and convenient modules or sub-networksdescribing a work package.

5.3.7.2 The activities of each department can bearranged to lie iri a broad horizontal band across thedrawing sheet. This can be useful, particularly whencommunicatirig with people not used to networking,but it has the disadvantage that it genetally makes pooruse of the space available on the drawing sheet, andmay result in long links running across the networkfrom top to bottom.

5.3.7.3 In networks dra-wnon time scale called squarednetwork as also defined in IS 14580 (Part l), the activityarrows are drawn horizontally with a lengthproportional to their duration according to the timescale marked horizontally across the sheet. Anadvantage of such networks is that re-planning, neededas the result of slippages, is made more obviouspictorially. ‘Review Point’ can be represented by a

16

vertical movable markers or cursor. Such networks canbe useful control tools in some circumstances,including the following:

a)

b)

c)

Manually calculated networks of smallprojects (normally limited to about 200activities);

Self-contained networks of small sub-projects(normally limited to about 200 activities),such as for use by a foreman on a buildingsite; and

Prepared for higher-level managementcontrol.

6 SQUARED NETWORK

6.1 Whi Iebar charts are usefil as a means of graphicaldisplay Qfproject activities on a time scale, it is difficultto establish the exact inter-relationship betweenactivities as well as the float available to the activities.Improved methods such as network based on activity-on-arrow or activity-on-node are able to show the inter-relationship between activities as well as expectedcompletion time of the project, but these methods arealso not able to show the float available to differentactivities, which not only provides informationregarding the delay, which could be allowed in thecompletion of the activity without affecting thecompletion time of the project but could be very usefulfor optimal utilization of resources. To overcome thesedeficiencies, network diagram with time scale, alsocalled squared network, are used.

6.2 Procedure for Drawing Squared Network

a)

b)

c)

d)

A network showing the inter-relationship ofvarious activities involved in the project isdrav’n with their time duration and the projectcompletion time is determined using criticalpath method.

Depending upon the project completion time,suitable time scale should be considered andplotted on the x-axis.

The various critical activities of the criticalpath are drawn to scale with a demarcationsign at the end of each activity to indicate thecompletion and start of the next activities.

Thereafter other activities to scale,considering their dependency or their possiblestart, are drawn. If two or more activities couldstart after an activity, the activity with lo\vertime duration should be drawn first and nearto the critical path, followed by otheractivities, but all the activities are drawnparallel to the critical path according to theirsequence till all the activities are covered. Noinclined line (activity) should be drawn.

IS 14580 (Part 2) :2006

e) The lines representing the activities are drawnto scale and parallel to the critical path withfirm line, the extra time available to theactivity, depending on the dependencyconsideration is shown by dotted lines (---).The lines depicting the relationship betweenthe activities should be drawn perpendicularwith respect to path. Event numbers may alsobe shown on the squared network to establishlinkages with activity-on-arrow network.

f) After the complete time scaled diagram calledsquared network has been drawn, the timescale may be replaced with calendar datesaccording to the project calendar for moreeffective utilization.

6.3 Some illustrative examples of squared networkdrawn from activity-on-arrow network are given inFig. 14A, 14B, 15A and 15B.

Example shown above explains the drawing of squarednetwork, float available with the activities as well asthe calendar dates. The duration of the project shownin the above network .is 10 days. Before changing tocalendar dates, a time scale with suitable time unit as aday shown above has been drawn. Assuming 6 daysworking in a week and the project commencement on22 January (Monday), the calendar shows the actualdates on which the different activities have beenplanned, which excludes 26 January and 28 January,being holidays.

Assuming the project is planned to commence on1 January, the activity-on-arrow network, squarednetwork as well as the calendar schedule of the projectis shown below. Project calendar assumes 6 daysworking per week and 26 January as national holiday.

6.4 Some Potential Advantages of SquaredNetwork

a)

b)

c)

Squared network enables understanding of thefloat as well as tbe inter-relationship withvarious activities, which could be utilized forresource level ling leading to optimalutilization of resources;

Adoption of the squared network to calendardates would help in effective planning,execution and monitoring of the project; and

it provides understanding that the delay in thecompletion of the activit~ to the extent of tloatavailable would not affect the projectcompletion time.

7 PRECEDENCE NETWORK

Activity-on-node or precedence networks areprepared as an alternative to arrow diagram. In

17

IS 14580 (Part 2) :2006

Example [

14A Network: Activity-on-Arrow

t-

B FLQAT j. . . . . . . . . . . . .3 4

1 “2-3-4-5.6 7-8%10’

TIMESCALE(No.ofDays)~

CALENDER 221231241251271XII ml 31 1[2DATE JOnuatv Feb

14B Squared Network

FIG. 14 SOME ILLUSTRATIVEEXAMPLESOF SQUAREDNETWORK DRAWN FROM

ACTIVITY-ON-ARROW NETWORK

Example 11

15A Network: Activity-on-Arrow

FIG. 15 SOME ILLUSTRATIVEEXAMPLESOF SCY.JAREDNE”r.woRK DRAWN FROM

ACTIVITY-ON-ARROW NETWORK — Continued

18

IS 14580 (Part 2) :2006

F FLOATm . . . . . . . . . . . . . . . . .

4 5

0 E FLOAT

6

A B C=, G H= 9Jk K-2 10 3 -- 2-” 3

*

t 1 ‘2-3-4. 6-6.7 -8-9 -10”1112-13-14-15-16 17-18.4920212223I

TIME SGALE (Ho. dthys) ~

1 I 2 [ 3141516 [ 819 110111112113115116[17118119120122123@125127

CALENDERDA?E(MonthJanuary)15B Squared Network

FIG. 15 SOME ILLUSTRATIVEEXAMPLES OF SQUAREDNETWORK DRAWN FROM

ACTIVITY-ON-ARROW NETWORK

activity-on-node network introduction of dummy arenot required. It is suitable forcomputer programmingenabling time, resource and cost analysis. With thepreparation of netwmks using work-breakdown-structure it is only logical to refer the network byevents. In this form of network, the activities areshown in the nodes and the arrows show logicalprecedence as shown in Fig. 16.

7.1 The logic relationship and precedence diagram isshown involving lead and lag elements in the fol lowingmanner

1. FINISH TO START RELATIONSH1P

Start of B must lag 5 days after the finishof A.

A b B5

2. START TO START RELATIONSHIP

Start of B must lag 3 days atler the start of A.

DE)

I J

3. FINISH TO FINISH RELATIONSHIP

Finish of B must lag 4 days after the finishof A.

c1A c1B

4.

5.

START TO FINISH RELATIONSHIP

Finish of B must lag 35 days after the startof A.

, t

&L-!+COMPOSITE START TO START AND.FINISH-TO FINISH RELATIONSHIP

Start of B must lag 4 days after the siart of Aand the finish of B must lag 4 days after thefinish of A,

J 4 , +

I A I I BI

I Ii

I

4.

7.2 As an illustration a small project of laying pipesections is undertaken as given inTable 5. The problem isconverted into the network form by both the methods ofnetwo’ikpreparation, namely activity-on-arrow as shownin Fig. 17 and activity-on-node as shown in Fig. 18.

8 HISTOGRAM

8.1 Out of several methods of present ing a frequencydistribution graphically, histogram is the most popularand widely used. A histogram is a set of vertical barswhose areas are proportional to the frequenciesrepresented.

8.2 To construct a histogram we must have data in theform of .a tlequency distribution. The independent

19

1S 14580 (Part 2) :2006

b 4

START ENDt ,

5

FIG. 16 PRECEDENCENETWORK

Table 5 Activities for Pipe Project

(Clause 7.2)

S1No. Activity Number Activity Description Succeeding Activities Duration (Months)

(1) (2) (3) (4) (5)

i) 1 Project start 2,3 1

ii) 2 Relocate telephonecable 10 4

iii) 3 Excavate 4 2

iv) 4 Install pipe section 1 5,6 .4

v) 5 Backfill section 1 7 1

vi) 6 Install pipe section2 7,8 6

vii) 7 Backfill section2 9 2

viii) 8 Test pipe section 9, 10 2

ix) 9 Compaction 12 2

x) 10 Install manhole II 3

xi) II Test relocatedtelephoneline 12 2

xii) 12 Final testing — 1’

EXCAVATECOMPACTtON

START

RELOCATETELEPHONECASLE

FIG. 17 PIPE PROJECT: ACTIVITY-ON-ARROW NETWORK

20

.

H-li-Id

I

I START JOB I

EXCAVATE

&_J+INSTAL PIPE 1

BACKFILL BACKFILLSEC 1 SEC 2

COMPACTION

7 12 13 ~ 13 19 z 191

7 8 Is 19 19 21 21.I 4 f I

r--’ l--+----i r----i r---lIINSTM pi=2 I tTEST PIPES I ! FINAL TEST i

I

1-”5-[-1161

Note : The above notations are depicted as

[181-1191

Desa”ption

Earliest Start (TE) Latest Start (TL)Duration

Earliest Finish (TE) I ILatest Finish (TL)

FIG. 18 PIPE PROJECT: ACTIVITY-• N-NODE/PRECEDENCE NETWORK

[20 J-121 I

IS 14580 (Part 2) :2006

variable is always taken on the x-axis and thefrequencies depending on it on the y-axis. Each classis then represented by a width on the scale that isproportional to its class-interval. The width for eachrectangle on the x-axis shall remain the same in casethe class-intervals are uniform throughout. If they aredifferent, the width of the rectangles shall varyproportionately. The y-axis represents the frequenciesof each class which constitute the heightllength of itsrectangle. In this ,manner we get a series of rectangleseach having a class-interval as its width and thefrequency as its height/length. The area of thehistogram represents the total frequency as distributedthroughout:the classes. The histogram should be clearlydistinguished from a bar diagram. The distinction liesin the fact that whereas a bar diagram is one-dimensional, that is, only the length of the bar issignificant and not the width, a histogram is two-dimensional, that “is,in a.histogram both the length aswell as the width are significant. In case of unequal

class-intervals suitable adjustments are required to bemade in frequencies. However, a histogram cannot beconstructed with open-end class(es).

8.3 The technique of constructing a histogram is givenbelow for:

a) distributions having equal class-intervals; and

b) distributions having unequal class-intervals.

8.3.1 Distributions Having Equal Class-intervals

When class-intervals are equal, take the independentvariable on the and its frequencies on the y-axis andconstruct adjacent rectangles. In such a case the height/length of each rectangle will be proportional to itsfrequency.

8.3.1.1 For example, in a water treatment plant, thehistogram for the data given in Table 6 regardingChlorine level in samples of treated water with 0.3 ppmclass-intervals is shown in Fig. 19.

Table 6 Data for Chlorine Level in Samples of Treated Water

S1No. Chins Frequency

(f) (2) (3)

i) 15.2 -15.5 2

ii) 15.5-15.8 5

iii) 15.8 -16.1 II

iv) 16.1 -16.4 6

v) 16.4 -16.7 3

vi) 16.7 -17.0 3

15.2-15.5 15.5-15.8 ?5.8-16.1 16.’l-f6.4 ?6.4-16.7 ?6.7-17.0

Chlorine Level

FIG. 19 HISTOGRAM

22

8.3.2 Distributions Having Unequal Class-Intervals

When class-intervals are unequal, an adjustment forunequal class-intervals mustbe made. The adjustmentconsists of finding for each class the frequency density.The frequency density is the frequency for that classdivided by the width of that class. Frequency densityhistogram constructed from these density values wouldhave the same general appearance as the graphicalrepresentation developed from equal class-interval.

For making the adjustment we take that class whichhas lowest class-interval and adjust the frequencies ofother classes. For example, if one class-interval is twiceas wide as the one having the lowest class-interval,divide the height of its rectangle by two; if it is three

1S 14580 (Part 2): 2006

time more, divide the height of its rectangle by three;etc, that is, the heights will be proportional to the ratioof the frequencies to the width of the classes orfrequency densities.

8.3.2.1 The class-intervals of hourly wages in a factoryand number of workers falling in each class is given inTable 7.

Since the class-intervals are unequal, .fiequencies mustbe adjusted. In this case, the lowest class-interval beingRs. 5, the frequency of the class 30-40 shallbe dividedby 2 since the class interval is double and thatofclass40-60 by 4 since class-interval is 4 times the lowestclass-interval, etc. Frequency density histogram withthese adjustments is depicted in Fig. 20.

Table 7 Data for Hourly-Wages to Factory Workers

S1No. Hourly Wages (in Rs.) Number of Workers(Class) (Frequency)

(1) (2) (3)

i) IO-15 7

ii) 15-20 19

iii) 20-25 27

iv) 25-30 15

v) 30-40 12

vi) 40-60 12

vii) 60-80 8

i10-15 1520

—

—!0-2!

I I I I I!5-30 30-3535-4040-4545-50 50-5555-6060-65657070-75 75-60

Hourly Wagea (Rs)

FIG. 20 HISTOGRAM

23

IS 14580 (Part 2) :2006

In project management, the histogram can be used forvarieties of applications like resource allocation,utilization and level ling, cost allocation, etc.

Figure 21 shows the histogram depicting the

requirement of detailers, being a critical resource inthis case, for the completion of tasks scheduled asper the accompanying bar chart. This example isrelated to an engineering department in which theactivities/skills can be broken down into layoutengineering, detailing and checking. Figure 21 showsan attempt to calculate the workload requirementscreated by twenty-two different tasks Iabelled A toV. The histogram shows uneven requirement ofdetailers. An attempt could be made to reschedulethe tasks to achieve a more Ievelled requirement ofdetailers. This rescheduling of tasks may lead tore-allocation of other resources and eventually thetasks may have to be adjusted for ensuring overal Ioptimal utilization of resources within the timeframe.

9 TJME VARIANCE CHARTS

9.1 In project management we typically monitorspecific characteristics of a project as the workprogresses, namely performance level, costs, and timeschedules. The three major reasons for putting controlsin place are to track progress, detect deviation fromplan, and take corrective action,

9.2 The time variance chart depicts the actualachievements as against the planned targets and thedifference between the two. Larger values of thesedifferences indicate significant departure from plan.Typical variance charts are snapshots in time (thecurrent period) of the status of the entity being tracked.It is a tool used by project managers to monitor progressagainst the time factor. These charts can be preparedfor entire project, work package, even for an activityor a milestone event.

9.3 For preparing time variance chart for a projectiwork packa”geconsisting of a large number of activities,the progress of each activity and its impact oncompletion time should be the guiding factor forpreparing the time variance chart. The aggregateprogress could be assessed by assigning weightage toeach activity.

9.4 If the actual progress of wmk during a fixedperiod of time has been less than the planned output,then a ‘Time over run’ condition can be said to exist.However, if the actual progress of work during a fixedperiod is more than the planned progress, then a ‘Timeunder run’ condition exists. The ‘Time under run’ and

‘Time over run’ condition are graphically depicted in

Fig. 22.

9.5 Time Variance Slip Chart

9.5.1 Time variance slip chart is another kind of chartwhich in one form or another may be used to presentinformation on time variance. The slip chart has to berelatively simple with proportionately long durationactivities to be of some value when drawn to a timescale.

9.5.2 Time variance slip charts are usually summariesor components of the more detailed -networks andthese, if small enough, are often conveniently drawnto a time scale and highlight key events. These chartscan give an overview of the project in a form suitablefor senior management. Further, it maybe combinedwith slippage curves for the key+vents to show howtheir dates have changed over the previous tworeviews. Such charts should be supported bydocumentation, which gives the reasons for thechanges. An example for selected key events of theproject with their planned date, revised date alongwiththe slippages is given in Table 8 and its correspondingchart is given in Fig. 23.

10 COST VARIANCE CHART

10.1 The cost variance chart is used for control ofcosts related with work performance and timeschedule aspects. The terminology used for specifictype of analyzed information, namely periodical,cumulative and projected, which are required for thepreparation and use of these charts is defined asunder:

a)

b)

c)

d)

BCWS (Budgeted cost of work schedules) —

It is the budgeted cost .of work (at apredetermined price) scheduled to becompleted during and cumulatively upto theend of a given period.

BCWP (Budgeted cost of work performed) —

It is the budgeted cost of work actuallyperformed during and cumulatively upto theend of a given period of time. It is also knownas ‘Earned Value’ of actual work.

ACWP (Actual cost of workperformeg) — Itis the amount of actual cost incurred for work(at actual price) performed during andcumulatively upto the end of a givenperiod.

EAC {Estimated cost at completion) — It isthe total cost estimated for the completion ofthe project. It is arrived at by addingcumulative actual cost of work performed uptoa given time to the projected cost forremaining work.

24

.

LAYOUT =5 5 6 6 6 3 3 3 3 3 4 3 3 3 3 3 2 2 2 3 2 2 2 2 3 3 1 1 1DETAILING 1 4 4 4 5 4 4 4 4 4 3 3 4 3 4 4 4 4 2 2 1 1 2 3 3 3 3CHECK 1 1 2 1 1 1 2 1 2 1

FIG. 21 HISTOGRAMSHOWING REQUIREMENTOF DETAILERS FOR A SET OF 22 TASKS AS PER THE TIME SCHEDULE INDICATEDBY BAR CHART

1S 14580 (Part 2): 2006

REVIE1

... .................. ............................................. ......

....... ....................................................................

POINT

\

~Time-overfun-.

/

Time

LEGEND ‘

-- Planned Progress @— Actual Progreae @ or @

FIG. 22 EXAMPLE OF TIME VARIANCE CHART

Table 8 Data for Selected Key 13vents of the Project Giving Slippages

(Clause 9.5.2)

sl Key Event Reasons.for Slippage Original Planned Current-Planned Slip (in Time Periods,No. Number Date Date in Weeka)

(1) (2) (3) (4) (5) (6)

i) I Delayed.site haradover 25 Jarruary 8 February 2 weeks

ii) 3 Heavy traffic/road closure 14 February 20 March 5 weeks

iii) 5 Delayed receipt of equipment 2 April 9 May 5 weeks

iv) 7 Change in specification 18 May 10 August 11 weeks

v) 9 Shortageof manpower 13 September 11 October 4 weeksI 1 I I ,

.,

26

IS 14580 (Part 2) :2006

REVIEW POINTII

Original planned dates

Dates at review(N-1 )

Dates at review(N) ~

Current dates

I I I I I I I I I I

Time scale

Legend: -

o–v—v—

Key even no.

Actual occurance date of event

Current Dlanned occurancedate of the event

FIG. 23 EXAMPLES OF TIME VARIANCE SLIP CHARTS

10.2 The cost variance charts used for controlling costsrelated with work performance and time schedules are:

a)

b)

Project cost and schedule progress (seeFig. 24), and

Projected cost and schedule overrun (seeFig. 25).

10.3 Drawing the Cost Variance Charts

10.3.1 The above-mentioned information is plotted inthe form of line charts shown in Fig. 24 and Fig. 25. Thecharts have, however, to be designed according to thetype and size of the product and the project, informationsystem followed, purpose of use and needs of the user.

10.3.2 In Fig. 24, time is shown on the x-axis and costis shown on the y-axis. The iriformation on BCWS,BCWP and ACWP are plotted periodically andcumulatively in the form of line graphs. A vertical lineparallel to the y-axis relating to the report date startingfrom x-axis is drawn cutting through the BCWS, BCWPand ACWP lines. The portion of this vertical line(dotted) in the chart joining the BCWP line andACWPline indicates the cost variance (CV). Where thisvertical line joins the BCWP graph and BCWS graphindicates schedule variance (-SV) contributing to costvariance. Where this graph cuts the BCWS and ACWPgraphs it indicates accounting variance (AV)contributing to cost variance, due to price changes.

10.3.3 In the chart in Fig. 25, time is indicated on thex-axis and the cost is shown on the y-axis. Thecumulative graph of BCWS and BCWP and ACWPand the report date line (dotted) as drawn in Fig. 24.The chart can be used for estimating the time and costrequirement of the remaining work on the basis ofexperience gained tiII date. The work remaining to beperformed and the estimated cost of the balance workis added to the ACWP on the date of review, to arriveat the estimated cost to completion (EAC). Based onthe BCWS line for the remaining work andsuperimposing it on ACWP line on the review point,we can draw the projected ACWP line. The point atwhich projected ACWP line intersects the EAC linedetermines the projected completion date of the projectand the projected scheduled delay. The Fig. 25 in thischart is used for displaying cost/schedule inter-relatedprogress information.

10.4 Use of Cost Variance Charts

The information that could be derived from these chartsfor management use is the integrated cost control whichprincipally relates to costvariance schedule variance andaccounting variance. Their details are given as under.

10.4.1 Cost Variance

It is the difference between the budgeted cost of workperformed and the actual cost of work performed:

Cost variance (CV) = BCWP – ACWP

27

1S 14S80 (Part 2) :2006

REVIEW POINT

/(Earned Value)

I

lU ~.o3

1234567” 891”01112 131415161718

LEGEND

------- ACWP

— BCWS

—--— BCWP

Time in Months ~

(Actual Cost)

(Baseline)

(Earned Value)

FIG. 24 PROJECT COST AND SCHEDULEPROGRESS

REVIEW POINT

+ J EstimatedCost to Completion(EAC)

63

/ loom,#’ ./”~

,)’ ./ProjectedCat.

“w i*/ ,/ ,80 ~,#t iD

G 70 ~g

ACWPG ..60 #

s 50 x

s40 g

30 :

Projekd 20 ~Schedule\ ~Delay * ,10 ~*

3

1234587891011 121314151817 ‘8 19 20 21

114

110

Timein Montha ~ +Schedulad

LEGEND Completion— ACWP (ActualCM) I------- ProjectedCost Projected

—-— BCWS (Baseline)CempietionDate

—-- — BCWP (EarnedValue)

FIG. 25 PROJECTEDCOST AND SCHEDULEOVERRUN

28

When CV is equal to zero, the project is on cost. Whenit is negative, there is cost overrun and when it ispositive, there is cost underrun.

Cost variance can be due to various reasons. The twocomponents of cost variance are schedule variance(SV) and accounting variance (AV):

Cost variance, percent (CVP) = *x 100

10.4.2 Schedu[e Variance

It is difference between the budgeted cost of workperformed and the budgeted cost of work scheduled. Itis the component of the cost variance which is attributedto schedule slippage.

SV = BCWP - BCWS

When SV is equal to zero, the project is on schedule.When it is negative, the project is behind schedule andwhen it is positive, the project is ahead of schedule.

10.4.3 Accounting Variance

It is the difference between the budgeted cost of workscheduled and actual cost of actual work performed. Itis the component of cost variance which is attributedto reasons other than schedule slippage.

Accounting variance (AV) = BC WS –AC WP

When AV is equal to zero, the project is on budget.When it is negative, the project is over budget and whenit is positive, the project is under budget.

10.5 Benefits of Cost Variance Charts

10.5.1 The charts provide vivid and visuallyunderstandable, analyzed and integrated informationfor cost control. With proper network, work packages,cost centres and cost allocation, the charts are usefi,din highlighting planned and actual cost trends tofacilitate comparisons, identify variances, makerealistic project ions, probe into problem areas andformulate corrective action.

11 RESOURCE UTILIZATION ANDPRODUCTIVITY CHART

11,1 The network techniques are used for integratedplanning and control of the four inter-related aspectsof work, time, resource and cost of a project. Eachresource has its specific characteristic and is directlyrelated to scope and time schedule of work. Themanagement of resources generally involves therealistic estimation of requirements, timelyprocurement, availability and efilcient utilization ofresources. A varie~ of graphical techniques could beused for displaying analyzed information formanagement planning and control of resources. The

IS 14580 (Part 2): 2006

two types of charts that could be prepared for thispurpose are as follows:

a) Chart showing requirement, availabi Iity andutilization of resources for specific materiallike cement, steel, etc — Resource utilizationchart, and

b) Chart showing the productivity of resourceslikemen, machine,etc — Resource productivitychart.

11.2 The chart could be prepared for each selecteditem — categoryltype of resource for each activity/work package, project component and then aggregatedfor the project as a whole. The information requiredperiodically and cumulatively for the preparation ofthe chart is as follows:

a) Budgeted (planned) requirements (BR),

b) Actual availability (AA), and

c) Actual utilization (AU).

11.3 The budgeted requirements relate to the quantityof resource required for the work planned to be doneduring the budget period. The actual availability relatesto quantity of resource actually available for use forperforming the planned work. The actual utilizationrelates to the quantity of resource utilized forperforming-the actual quantity of work.

11.4 The resource utilization chartcould be used foranalyzing variation between requirements andavailability, between availability and utilization andbetween requirements and utilization. In Fig. 26, BRminus AA can be either zero or positive or negative.If the difference between budgeted requirements (BR)and actual availabi Iity (AA) is zero, it may indicatethat the resources for the activities have been providedas planned. If the actual availability (AA) is belowbudgeted requirements curve (BR) it may lead toschedule delays, procurement/allocation problem-s. If

the actual availability curve is above the budgetedrequirement curve (BR) it may point out non-optimalresource allocation and procurement. In Fig. 26, AAminus AU can be either zero or positive. If zero, itindicates the optimal utilization of resources. If it ispositive, it shows the under utilization of resources.

11.5 The example of resource utilization chart relatesto construction of cement concrete road in an industrialarea and to link it with national highway. It involveswidening of existing road, relocation of telephone andpower lines. It involves use of different types ofequipment such as batch mix plant, screened vibrators,excavators, dumpers, etc. The cost is -about Rs. I Icrores, time duration is twelve months and the lengthof the road is 10 km. The project involvestransportation of stones from near-by queries. While

29

1S 14580 (Part 2) :2006

REVIEW POINTtI

8582

Budgeted Requirements (BR) 1

ActualAvaWdMity (AA)--------- -

Under

LEGENII Time (Days)

— BR------- AA

—--— AU

FIG. 26 RESOURCE UTILIZATION CHART

resource utilization chart would be prepared for cementas a resource, the resource productivity chart would beprepared for batch mix plant, excavators, dumpers, etcand also for men employed for the work.

11.6 Table 9 gives the monthly (both actual andcumulative) budgeted requirement, actual availabilityand actual utilization at the project site and the sameare depicted graphically in Fig. 27. This chart depicts

an example of Resource Utilization Chart forconstruction of cement concrete roads. From the graph,it is observed that while initially the availability ofcement was less than the budgeted ~equirement, eventhen the utilization was less than the available, therebycausing under utilization of resources. The completionof the project, thus, got delayed due to shortage ofmaterial (budgeted requirement vis-d-vis availability).

utilization

This was i%rthercompounded due to under utilizationof material which may be due to additional work,equipment failures, etc.

11.7 Resource Productivity Chart

11.7.1 This chart could be prepared for resource likemen, machine, etc. The information required forproductivity chart relates to workload norm of eachactivity. The productivity of resources is expressed interms of work done per unit of resource used, forexample work done per machine hour, work done perman day/month, as compared to the normshndards.For drawing the chart, time is indicated on the x-axisand the productivity is indicated on the y-axis. The chartshows the comparison between the actual productivityvis-a-vis norm/standard. A hypothetical example ofResource Productivity Chart is given in Fig. 28.

30

IS 14580 (Part 2): 2006

Table 9 Showing Budgetary Requirements, Actual Availabilityand Actual Utilization of Cement

(Clause 11.6).

Ii)lll 500 I 500ii) I 2 500 1000

iii) 3 I 800 I 18001 1 1

iv) 4 800 26001 1 I

t v) 5 1000 36001 1 1

vi) 6 1000 4600

vii) 7 1000 5600

viii) 8 800 6400

ix) 9 800 7200

x) 10 1000 9200

xi) 11 1000 9200

xii) 12 800 10000

xiii) 13 0 10000

xiv) 14 0 10000

xv) I 15 I o I 10000

o I 10000

Actual Availability Actual Utilization

Current Cumulative Current Cumulative

(5) (6) (7) (8)

500 500 300 300

500 I 000 400 700

600 I 600 500 1200

800 I 2400 I 600 I I 800 I

800 I 3200 I 700 I 2500 I

9.00 ‘1 4100 I 800 I 3’300

900 I 5000 I 800 I 4100I I [

700 5700 700 4800

700 6400 600 5400

700 7100 600 6000

700 7800 600 6600

700 8500 600 7200

700 9200 600 7800

800 10000 700 8500

400 10400 1100 9600

400 10800 1200 10800

12000

10000

8000

6000

4000

2000

0

B

12345678910 111213141516

Months ~

FIG. 27 RESOURCE UTtLIZATJONCHART FOR CONSTRUCTIONOF CEMENT CONCRETE ROAD

>

IS 14580 (Part 2) :2006

REVIEW POINT

FIG. 28 RESOURCE PRODUCTIVITY CHART

32

Bureau of Indian Standards

BIS is a statutory institution established under the Bureau of Zndian Standards Act, 1986 to promoteharmonious development of the activities of standardization, marking and quality certification of goodsand attending to-connected matters in the country.

Copyright

BIS has the copyright of all its publications. No part of these publications may be reproduced in any formwithout the prior permission in writing of BIS. This does not preclude the free use, in the course ofimplementing the standard, of necessary details, such as symbols and sizes, type or grade designations.Enquiries relating to copyright be addressed to the Director (Publications), BIS.

Review of Indian Standards

Amendments are issued to standards as the need arises on the basis of comments. Standards are also reviewedperiodically; a standard along with amendments is reaffirmed when such review indicates that no changes areneeded; if the review indicates that changes are needed, it is taken up for revision. Users of Indian Standardsshotild ascertain that they are in possession of the latest amendments or edition by referring to the latest issue of‘BIS Catalogue’ and ‘Standards : Monthly Additions’.

This Indian Standard has been developed from Doc : No. MSD 4 (297).

Amendments Issued Since Publication

Amend No. Date of Issue Text Affected

BUREAU OF INDIAN STANDARDS

Headquarters:

Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi 110002 Telegrams : ManaksansthaTelephones :23230131,23233375,2323 9402 (Common to all offices)

Regional Offices : Telephone

Central : Manak Bhavan, 9 Bahadur Shah Zafar Marg

{

23237617NEW DELHI 110002 23233841

Eastern : 1/14 C.I.T. Scheme VII M, V. I. P. Road, Kankurgachi

{

23378499,23378561KOLKATA 700054 23378626,23379120

Northern : SCO 335-336, Sector 34-A, CHANDIGARH 160022

{

26038432609285

Southern : C.I.T. Campus, IV Cross Road, CHENNAI 600113

{

22541216,2254144222542519,22542315

Western : Manakalaya,-E9 MIDC, Marol, Andheri (East)

{

28329295,28327858MUMBAI 400093 28327891,28327892

Branches : AHMEDABAD. BANGALORE. BHOPAL. BHUBANESHWAR. COIMBATORE. FARIDABAD.GHAZIABAD. GUWAHATI. HYDERABAD. JAHWR. KANPUR. LUCKNOW. NAGPUR. ,’NALAGARH. PATNA. PUNE. RAJKOT. THIRUVANANTHAPUWM. VISAKHAPATNAM.

Rinted at PrabhatQffset Ress, New Delhi-2