Network Analysis OR MBA PPT 2

7/31/2019 Network Analysis OR MBA PPT 2

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Network AnalysisModule 4


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What is network analysis?

The techniques of operations research used

for planning, scheduling, and controllinglarge and complex projects are often referredas network analysis

Objective-It is all about scheduling therequired activities in an efficient manner soas to complete it on or before a specifiedtime limit at a minimum cost of its completion


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Techniques used in network analysis

PERT-program evaluation review technique

CPM-critical path method


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event

Events in the network represents the project

milestones such as Start or completion of an activity or activities

and occur at a particular instant of time atwhich some specific part of the project hasbeen or is to be achieved

Events are commonly represented by circles(nodes) in the network diagram


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activity

Activities in the network diagram represent

project operations or tasks to be conducted Note: except dummy activity each activity

consumes time and resources and incur cost

An arrow is used to represent the direction ofthe activity

activities are identified by the numbers oftheir starting event and ending event


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Pictorial representation of an activity

i j

Starting event Completion event

Activity

Tail of the arrow Head of the arrow

node

node

Activity

Activity


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Classification of activity Predecessor activity-an activity which must be

completed before one or more other activities startis known as predecessor activity

Successor activity-an activity which startedimmediately after one or more of other activities

are completed is known as successor activity Dummy activity-an activity which does not

consume either an resources and/or time is knownas dummy activity


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Rules for network construction Length of arrow is of no significance

Each activity should be represented by onlyone arrow and must start and end in a circlecalled event

The tail of the activity represents the start

and the head of the activity represents thecompletion of work

The event numbered 1 denotes the start ofthe project and is called initial event


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Rules contd. All activities emerging from event should not

be preceded by any other activities Event carrying the highest number denotes

the completion of the project

A network should have only one initial event

and only one terminal event The general rule for numbering is that the

head event should always be numberedlarger than that at its tail .i.e. i


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Rules contd. An event number should not be repeated or

duplicated Two activities should be identified by the same

completion event

An event can not occur until all the incoming

activities into it have been completed An activity can not start unless all the preceding

activities on which it depends have been completed

Dummy activity also should follow all the rules


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CPM(CRITICAL PATH METHOD)

It can be found out by going through forward

pass and backward pass Earlier start

Earlier finish

Latest start Latest finish

Critical activities-are those activities in whichE & L are same

E

L

Points to be noted


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Finding CPM and projectcompletion time

ACTIVITY DURATION(DAYS)

1-2 21-3 7

1-4 8

2-5 3

3-5 6

3-6 10

3-7 4

4-6 6

5-7 2

6-8 5

7-8 6


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Soln.

1

6

25

8

4

37

2

3

7

8

6

10

4

2

6

5

E=8

L=11

E=0L=0

E=2

L=11

E=13

L=14

E=7

L=7

E=15

L=16

E=22

L=22

E=17

L=17

From the network,

Critical path is 1 3 6 8

And duration of critical path

is 7+10+5=22 days


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PERT (Program EvaluationReview Technique)

Activity to tm tp1-2 4 6 8

2-3 5 7 15

2-4 4 8 12

3-6 15 20 25

3-5 10 18 26

4-6 8 9 16

5-7 4 8 12

6-7 1 2 3

7-8 6 7 8


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Soln.

1 82 6

3

4

5

76

8

18

8

72

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108E=0

L=0

E=6

L=6

E=14

L=28

E=34

L=38E=40

L=40

E=47

L=47

E=14

L=14

E=32

L=32

From the network,

Critical path is

1 2 3 5 7 8


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Soln. contd.

te= t

o+ t

m+ t

p6

to= optimistic time

te= most likely time

tp= pessimistic time

variance (2 )= tp-to6

2

Standard deviation=variance

Probability that the project will be

Completed in x days

P(DX)= P Z GT-AT

Where, Z = value under normal curve = standard deviation

GT = Given Time

AT = Actual Time


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Network Analysis OR MBA PPT 2

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