Network Analysis

By
Prof. Nadpurohit

Jan – Mar 2006 Network Analysis Slide 1 of 43

By
Prof. Nadpurohit
Planning is essential for successful accomplishment
of any task

The details and depth of planning is related to the

complexity of the task to be achieved.

Jan – Mar 2006 Network Analysis Slide 2 of 43

By
Prof. Nadpurohit
 Major elements of planning
• Objective
– Defining what is supposed to be achieved.
• Analysis
– Gathering facts on what is required to reach the objective.
• Evaluation
– Examining the time & effort involved in adapting various
ways to reach the end objective.
• Risk appraisal
– Determining the allowance to be made for uncertainty.
• Decision
– Specifying the method for implementation
• Schedule
– Establishing the time schedule for implementation of the
segment of plan.

Jan – Mar 2006 Network Analysis Slide 3 of 43

By
Prof. Nadpurohit
• Industrial / Commercial projects are
complex in nature.

• Handling of these projects calls for a

systematic approach which takes into
account
– Identification of numerous activities
– Required time and other resources
– Availability of these resources
– Coordination and control

Jan – Mar 2006 Network Analysis Slide 4 of 43

By
Prof. Nadpurohit
 Program Evaluation and Review
Technique - PERT
• Developed by US Department of Navy for their
“Polaris missile” program in 1958.
• Is a form of network analysis technique
consisting of
– Translating the proposed job into a model by drawing
a network of activities involved.
– Evaluating the network and manipulating it to the
extent possible so as to ensure that there will be a
reasonable chance of achieving the objective (viz.
completing the job) with in the constraints of time and
other resources.
– Using the network to monitor and control the job.

Jan – Mar 2006 Network Analysis Slide 5 of 43

By
Prof. Nadpurohit
 PERT
• Is of special relevance to
– One-time tasks such as construction of dams,
factories, bridges etc.
– Manufacture of ships, missiles and such other
activities which though repetitive are of huge
proportion
– R&D projects
– Major repairs and overhaul of plant /
machinery
– Organization of large events / conferences.

Jan – Mar 2006 Network Analysis Slide 6 of 43

By
Prof. Nadpurohit
 Critical Path Method (CPM)
• CPM originated in Du Pont de Nemours
company almost at the same time in 1958.

• CPM is also a Network analysis method

and differs from PERT only in the
approach to the network analysis.

Jan – Mar 2006 Network Analysis Slide 7 of 43

By
Prof. Nadpurohit
 Gantt Chart
• A planning and control tool used for
scheduling jobs and depicting the
progress made from time to time.

• In a Gantt chart, a division of space

represents both an amount of time and an
amount of work to be done in that time

Jan – Mar 2006 Network Analysis Slide 8 of 43

By
Prof. Nadpurohit
Jan – Mar 2006 Network Analysis Slide 9 of 43
By
Prof. Nadpurohit
 Gantt Chart
• Merits
– Remarkably compact for the amount of
information it provides for planning and
controlling jobs.
– Easy to draw and read
– Its pictorial representation of time serves as
an aid to minimize idleness and loss of time.
• Demerits
– Does not depict the interdependencies of jobs
– Does not aid getting information on the
probability of completion of a job.
Jan – Mar 2006 Network Analysis Slide 10 of 43
By
Prof. Nadpurohit
Stages in application of PERT
• Drawing the network
– The purpose of this is to identify all the events /
activities that are essential for completion of a Project
and to bring out their interrelationship to satisfy the
technological / logical sequencing requirements.
• Network Analysis
– By incorporating the time required for completing
each of the activities in the network, the project
duration as well as the criticality of the activity can be
found out. At this stage it is also possible to compute
the probability of completing the Project or part of the
project in a given specified time

Jan – Mar 2006 Network Analysis Slide 11 of 43

By
Prof. Nadpurohit
Stages in application of PERT
• Resource Allocation and Scheduling
– Based on the network calculation and assessment of
resources required for each of the activities, the plan
is translated into a time schedule. If it is possible to
expedite the activities by incurring additional cost, the
economics of doing so are also examined before
finalizing the schedule.
• Project control
– This stage calls for periodic updating of the network
amongst other things to monitor the progress of the
Project, and making necessary changes in the
schedules to ensure completion of the Project as
close to the target time as possible.
Jan – Mar 2006 Network Analysis Slide 12 of 43
By
Prof. Nadpurohit
 Concepts / Definitions
• Project
Temporary endeavor undertaken to create a unique Product, Service or
Result.
• Activity
Is a task or item of work to be done, that consumes time, effort, money or
other resources.
It is represented by an arrow with its head indicating direction of the progress
in the project. i.e. The tail of the arrow marks the commencement of the
activity and the Head of the arrow marks the completion of the activity.

The number 5 over the arrow indicates the Time required for completion of the
activity

Jan – Mar 2006 Network Analysis Slide 13 of 43

By
Prof. Nadpurohit
• Event
Concepts / Definitions
– An activity is bound by 2 events referred to as Tail
event and Head event.
– Events do not consume resources.
– Events are represented by circle
– An Event is realized only when all activities
terminating at it are completed.

Tail Activity Head

Event Event

A
1 2
5

Activity A or 1-2 requiring 5 units of time, Event 1 Event 2

Jan – Mar 2006 Network Analysis Slide 14 of 43

By
Prof. Nadpurohit
 Concepts / Definitions
• Network
– A network is a graphic representation of a
Project’s operation and is composed of
activities and events
Event 1 is Start of Event 5 is End of Project
Project and does not 2 and does not have any
have any activity before A D
activity after it
it
B E
F is a Dummy 1 4 5
activity C
It does not consume F G
any resource
It is introduce in 3
Network to preserve
logic
Jan – Mar 2006 Network Analysis Slide 15 of 43
By
Prof. Nadpurohit
 Network
Restraints and Ladders
A
1 2
Activity 1-3, Waiting to Activity 2-4, Time taken to
receive 1st lot for starting process last lot to
activity B B complete activity B
3 4

C
5 6

D
E
7 8

Jan – Mar 2006 Network Analysis Slide 16 of 43

By
Prof. Nadpurohit
 Network
Errors in drawing Network -
Looping

1 2

How to determine Looping in a Network

Head event must always have number higher than Tail event

Jan – Mar 2006 Network Analysis Slide 17 of 43

By
Prof. Nadpurohit
 Network
Errors in drawing Network -
Dangling
1 2 3

Event 1 is Start of Project Event 3 is end of Project

4

Ways to avoid Dangling

a) All Activities must start and finish with an
Event
b) Except for the Start and End Event, each
event must have at least 1 activity entering and 1
activity leaving it.

Jan – Mar 2006 Network Analysis Slide 18 of 43

By
Prof. Nadpurohit
 Steps involved in drawing a
Network
• Identify the End objective and define the events which
are precedent to the End objective
• List out the activities required to accomplish these events
• Draw the events and activities and connect them
according to the defined logic.
• Now for every activity answer the following questions
– What should precede it
– What needs to follow it
– What can be done concurrently
• Modify redraw the diagram to suit answers for above.
• Check for errors
• Number the events as per convention.

Jan – Mar 2006 Network Analysis Slide 19 of 43

By
Prof. Nadpurohit
 Rules for drawing a Network
• Only 1 activity may connect any 2 Events
• Except for the Start and the End event,
every event must have at least 1 activity
entering it and at least 1 activity leaving it.
• Every activity must have a Tail event and
a Head event.
• There must be no loops in the Network,
i.e. no continuous path must go through
one Event 2 times.
Jan – Mar 2006 Network Analysis Slide 20 of 43
By
Prof. Nadpurohit
• A Project consists of a series of activities labeled A, B, C, D, E, F, G,
H, and I. The interdependency of activities is as follows
A<D,E; B,D<F; C<G; B<H; F,G<I and G<H. The time taken by
activities in days is as follows
A-23, B-8, C-20, D-16, E-24, F-18, G-19, H-4 and I-10.
Find the minimum time of completion of Project.
B
D F C G B H
A
D
E
G
I
G H
F

G
2
5
C H
D1 D2
B F I
1 4 6 7

A D
E
3

Jan – Mar 2006 Network Analysis Slide 21 of 43

By
Prof. Nadpurohit
 G(19)
2
5
C(20) H(4)
D1 D2
B(8) F(18) I(10)
1 4 6 7

A(23) D(16)
E(24)

3
Earliest Event Time Latest Event Time
E G(19) E

2 5
L L H(4)
C(20)
D1
D2
0
B(8) E F(18)) E
1 E I(10))
0 4 6 7
L L
L
A(23)
D(16)
E(24))
E

3
L

Jan – Mar 2006 Network Analysis Slide 22 of 43

By
Prof. Nadpurohit
 E G(19) E
2 L
5 L H(4)
C(20)
D1
D2
0 B(8) E F(18) E I(10) E
1 0 4 L 6 7 L
L
A(23)
D(16)
E(24)
E
3 L
Determination of Earliest Event Time of Event
Start from the 1st Event i.e. Start of the Project. The Earliest Event time for it = 0
Consider the next event 2.
Consider all activities terminating at that event i.e. C. C starts at event 1 and
requires 20 days. For event 2 occur activity C has to be completed. Hence event 2
can occur only after the time event 1 has occurred and after C is completed
i.e after 0 + 20 days = 20 days
Similarly event 3 will occur after event 1 has occurred and activity A is completed
i.e. after 0 +23 days = 23 days
For event 4 to occur we need to complete activities B and D. The earliest that
event 4 can occur is after the completion of activity B and D. i.e. Maximum of (0 +
8), (23 + 16) = 39 days
Jan – Mar 2006 Network Analysis Slide 23 of 43
By
Prof. Nadpurohit
 20 39, 39

20 G(19) 39

2 5
L L H(4)
C(20)
D1
8,39 D2
43, 67, 47
0 39, 57
B(8) F(18)
39 67
57 I(10)
1
0 4 6 7
L L
L
A(23)
D(16)
E(24)
23
23
3
L
Hence earliest completion of Project time
is 67 days

Jan – Mar 2006 Network Analysis Slide 24 of 43

By
Prof. Nadpurohit
 20 G(19) 39
2 5
L L H(4)
C(20)
D1
D2
0 B(8) 39 F(18) 57 I(10) 67
1
0 4 6 7
L L L
A(23)
D(16)
E(24)
23
3
L

Determination of Latest Event Time of Event

Start from the last Event i.e. End of the Project. The Latest Event time for it = Project completion time =
67 days
Consider the next earlier event 6.
Consider all activities starting from that event i.e. I. I requires 10 days. Latest time that event 6 can occur
With out delaying the Project completion time is 67 – 10 = 57 days
Similarly Latest Time for event 5 = Minimum of (57 – 0) or 67 – 4 = 57 days.
For event 4 Latest time is Minimum of (57 – 0) or (57 – 18) = 39 days
For event 3 the latest event time = Minimum of (39 – 16) or (67 – 24) = 23 days
For event 2 the latest event time = 57 -19 = 38 days
For event 1 Latest time is Minimum of (38 – 20), (39 – 8), (23 – 23) = 0

Jan – Mar 2006 Network Analysis Slide 25 of 43

By
Prof. Nadpurohit
 57, 63
20 G(19) 39
2 38 5
38 57 H(4)
C(20)
D1
D2
0 B(8) 39 F(18) 57 I(10) 67
1
0 4 39, 57
6 57 7
39 57 67
0, 31, 18 A(23)
D(16)
E(24)
23
3
23 23, 43

Jan – Mar 2006 Network Analysis Slide 26 of 43

By
Prof. Nadpurohit
 20 G(19) 39
2 5
38 57 H(4)
C(20)
D1
D2
0 B(8) 39 F(18) 57 I(10) 67
1
0 4 6 7
39 57 67
A(23)
D(16)
E(24)
23
3
23 Earliest Time Latest Time Total Float or
Activity I,j Normal Time Slack
Start Finish Start Finish available

Activities that have Total float C (1-2) 20 0 20 18 38 18

= 0 or No Slack available are
the activities on the critical A (1-3) 23 0 23 0 23 0
path. B (1-4) 8 0 8 31 39 31
G (2-5) 19 20 39 38 57 18
Hence Critical path is A-D-F-I
D (3-4) 16 23 39 23 39 0
E (3-7) 24 23 47 43 67 20
D1 (4-5) 0 39 39 57 57 18
F (4-6) 18 39 57 39 57 0
D2 (5-6) 0 39 39 57 57 18
H (5-7) 4 39 43 63 67 24

Jan – Mar 2006

I (6-7) Network
10 Analysis
57 67 57 67
Slide 27 of 43
0
By
Prof. Nadpurohit
 Free Float, Interference Float, Independent Float
7
2 F (5)
A (7) 13

0 B (6) 8 E (3) I (10) 28

1 17
4 7
0 6
15 28
18

C (8) K (3)
D H (5)
J (16)
8 G (4) 12
3 5
Activity I: 8 12
Total Float = 28 – 17 - 10 = 1 day
Activity F:
Total Float = 18-7-5 =6 days
If F absorbs all its float then I has no float, but if F absorbs only 5 days of its float then I still has its 1 day float
The float in an activity which can be used with out affecting float of any succeeding activity is called as Free Float

Interference Float = Difference between Total float and Free float

Consider activity K: If the tail event of this K activity is reached as late as possible and the Head event of the
activity starts as early as possible then the float for K is 17-8-3 = 6 days. This float of 6 days whose absorption
does not affect neither preceding activity nor the subsequent activity is called Independent Float

Total Float = Free float + Interference Float

Total Float = Lj – Ei – t, Free Float = Ej – Ei – t,. Interference Float = Lj – Ej, , Independent Float = Ej – Li - t

Jan – Mar 2006 Network Analysis Slide 28 of 43

By
Prof. Nadpurohit
 Probability Assessment in PERT Network
• 3 time estimates are used for every activity
• Most optimistic time (t1): it is the duration of the activity
when everything goes well. It is assumed that such
performance can be improved only in about 1% of the
cases
• Most likely time (t2): Normal time the activity would take.
It is the time that would occur most often if the activity
was to be repeated several times under the same
conditions.
• Most Pessimistic time (t3): It is the longest duration
expected under the assumption that every thing goes
wrong. There is only 1 % chance that the activity will
extend beyond this value.
• Expected Time (t) is given by (t1 + 4 t2 + t3)/6
• Standard Deviation ( σ ) is given by (t3 - t1)/6
• Variance is given by ( σ )2

Jan – Mar 2006 Network Analysis Slide 29 of 43

By
Prof. Nadpurohit
 Probability Assessment in PERT Network

In a PERT Network the critical path comprises of 6 activities whose estimated

duration in days is given below If the Project is scheduled for completion with
in 42 days, what is the probability of achieving the schedule

Activity Optimistic Time Most likely Time Pessimistic Time

1 3 6 12

2 8 9 10

3 6 8 10

4 2 5 8

5 3 9 12

6 3 4 5

Jan – Mar 2006 Network Analysis Slide 30 of 43

By
Prof. Nadpurohit
 Activity Optimistic Time
1 3
2 8
3 6
4 2
5 3
6 3
Most likely Time Pessimistic Time
6 12
9 10
8 10
5 8
9 12
4 5

Activity Time Estimate Expected Time T Std. Dev. σ Variance (σ)2

t1 t2 t3

1 3 6 12 6.5 1.5 2.25

2 8 9 10 9.0 0.33 0.11
3 6 8 10 8.0 0.67 0.45
4 2 5 8 5.0 1.00 1.00
5 3 9 12 8.5 1.5 2.25
6 3 4 5 4.0 0.33 0.11
TE = 41 6.17

Expected Time for completion of Project, TE = 41 days

Variance of Project Time = 6.17
Hence σ for project = √6.17 = 2.48 days
Scheduled time of the Project TS = 42 days
Standard normal variate = Z = (TS – TE)/σ = (42 -41)/2.48 = 0.4
From table for area under the normal curve for value Z = 0.4 The area = 0.5 + 0.1544 = 0.6554
Hence the probability of completing the project by schedule time is 65.54%

Jan – Mar 2006 Network Analysis Slide 31 of 43

By
Prof. Nadpurohit
 PERT CPM
The result of analysis are expressed in The results of calculations are considered
terms of events. PERT is hence said to in terms of activities of the Project. CPM
be Event oriented is activity oriented
The duration of activity is computed from CPM uses only single time estimates and
multiple time estimates. This is done to hence does not consider time
take into account time uncertainties. uncertainties
These estimates are used to arrive at the
probable achievement of any given
scheduled date of Project completion.

Does not usually consider costs Attempts to bring out relationship

between Project duration and cost on the
premise that it would be possible to
manipulate project duration with in certain
limits by incurring certain costs. Thus a
shorter duration means deployment of
additional resources and hence incidence
of additional costs.

Jan – Mar 2006 Network Analysis Slide 32 of 43

By
Prof. Nadpurohit
 Time-Cost Trade-Off
• Project costs
– Direct costs
• Those expenses that can be directly charged to
each and every activity of the Project. E.g.
Manpower costs, material consumed,
equipment cost, etc.
– Indirect costs
• These are related to overall Project duration.
E.g. service and administration costs.
• Any reduction in the Project duration leads to
reduction of these costs.

Jan – Mar 2006 Network Analysis Slide 33 of 43

By
Prof. Nadpurohit
 Time-Cost Trade-Off
• Optimal Project Duration
– Is the one which results in minimum overall cost of
the Project.
– To determine this optimal duration we should know
• Normal duration of each activity
• Normal cost of each activity
• Cost of crashing the activity and hence the Cost slope of
the activity
• Extend to which the activity can be crashed and
• Indirect cost of Project per unit time of Project duration

Jan – Mar 2006 Network Analysis Slide 34 of 43

By
Prof. Nadpurohit
 Time-Cost Trade-Off
• Normal duration of an activity
– That duration of the activity for which the cost is
minimum
• Normal cost of the activity
– The minimum cost of the activity at its normal
duration
• Crash point of the activity
– Crash point is the time that is required to complete
the activity and the associated least cost for that
particular activity duration, beyond which the
activity cannot be shortened further with out
incurring an additional cost.

Jan – Mar 2006 Network Analysis Slide 35 of 43

By
Prof. Nadpurohit
 Time-Cost Trade-Off
• Cost Slope
– Cost Slope for an activity =
(Crash cost – Normal cost) / (Normal
time – Crash time)
Total Project Cost Time Relationship

Project Total Cost Curve

Project Total Cost

Project Indirect Cost Curve

Optimum Project Cost

Project Direct Cost Curve

Minimum Project Time

Project Duration

Jan – Mar 2006 Network Analysis Slide 36 of 43

By
Prof. Nadpurohit
 Example for determination of Optimal Project
duration and Minimum Project cost
• The network given below gives the normal activity durations and the
table given below gives the data on the various costs and crash times.
The indirect cost is Rs. 120/- per day of Project duration.
• Determine the optimum Project Duration and minimum Project cost

Activity Normal Crash Normal Crash Cost

11 Time Time Cost (Rs.) Cost (Rs.) Slope
3
(days) (Days) (Rs.)
11 6
9 1-2 5 4 170 240 70
0
17 1-3 9 6 310 550 80
1
0 4
6 17
2-3 6 4 80 200 60

5 2-4 10 8 130 230 50

5
10
2
5 3-4 6 4 110 290 90

Jan – Mar 2006 Network Analysis Slide 37 of 43

By
Prof. Nadpurohit
 Activity Normal Crash Normal Crash Cost
11 Time Time Cost (Rs.) Cost (Rs.) Slope
3 (days) (Days) (Rs.)
11 6
9
1-2 5 4 170 240 70
0
17 1-3 9 6 310 550 80
1
0 4
6 17
2-3 6 4 80 200 60

5 2-4 10 8 130 230 50

5
10
2
5 3-4 6 4 110 290 90

Critical Path

11
3
11 6
9

0
17
1
0 4
6 17

5
5
10
2 10
5
3
10 6
9
Normal Project Time = 17 days 0
16
Normal direct cost = Rs. 800/- 1
4
0
Total Project cost 5 16

= Normal direct cost + Indirect cost / day x Duration of the Project

= 800 + 120 x 17 = Rs. 2840 5
5
Critical path 1-2, 2-3, 3-4 10
2
Activity 1-3 and 2-4, each have a float of 2 days 5
Crashing activity critical with minimum cost slope i.e. activity 2-3 we get
Jan – Mar 2006 Network Analysis Slide 38 of 43
By
Prof. Nadpurohit
 10 Activity Normal Crash Normal Crash Cost
Time Time Cost (Rs.) Cost (Rs.) Slope
3
10 6
(days) (Days) (Rs.)
9
1-2 5 4 170 240 70
0
16
1 1-3 9 6 310 550 80
0 4
5 16

2-3 6 4 80 200 60
5
5 2-4 10 8 130 230 50
10
2
5 3-4 6 4 110 290 90

9
3
9
Project Time = 16 days 9
6
Direct cost = Rs. 800/- + 60 = Rs. 860
0
Total Project cost 15
1
= Direct cost + Indirect cost / day x Duration of the Project 0 4
4
15
= 860 + 120 x 16 = Rs. 2780
Critical path 1-2, 2-3, 3-4 5
Activity 1-3 and 2-4, each have a float of 1 days 5
10
Crashing critical activity with minimum cost slope i.e. activity 2-3 we get 2
5

Jan – Mar 2006 Network Analysis Slide 39 of 43

By
Prof. Nadpurohit
 9 Activity Normal Crash Normal Crash Cost
Time Time Cost (Rs.) Cost (Rs.) Slope
3
9 6
(days) (Days) (Rs.)
9
1-2 5 4 170 240 70
0
15
1 1-3 9 6 310 550 80
0 4
4 15

2-3 6 4 80 200 60
5
5 2-4 10 8 130 230 50
10
Project Time = 15 days 2
5
Direct cost = Rs. 860/- + 60 = Rs. 920 3-4 6 4 110 290 90
Total Project cost
= Direct cost + Indirect cost / day x Duration of the Project
= 920 + 120 x 15 = Rs. 2720
Critical path all paths are critical
Now Activity 1-3 and 2-4, do not have any float
Activity 2-3 has reached its crash duration and cannot be reduced further
Crashing options
a) Crash 1-2 & 1-3 at a crash cost of 70+80=Rs.150
b) Crash 2-4 & 3-4 at a crash cost of 50+90=Rs. 140
c) Crash 1-2 & 3-4 at a crash cost of 70+90=Rs. 160
8 9 9
3 3 3
8 6 9 5 9 5
8 9 9

0 0 0
14 14 14
1 1 1
0 4 0 4 0 4
4 14 4 14 4 14

4 5 4
4 5 4
10 9 10
2 2 2
4 5 4

Jan – Mar 2006 Network Analysis Slide 40 of 43

By
Prof. Nadpurohit
 Activity Normal Crash Normal Crash Cost
Crashing options Time Time Cost (Rs.) Cost (Rs.) Slope
a) Crash 1-2 & 1-3 at a crash cost of 70+80=Rs.150 (days) (Days) (Rs.)
b) Crash 2-4 & 3-4 at a crash cost of 50+90=Rs. 140
1-2 5 4 170 240 70
c) Crash 1-2 & 3-4 at a crash cost of 70+90=Rs. 160
1-3 9 6 310 550 80

2-3 6 4 80 200 60

2-4 10 8 130 230 50

3-4 6 4 110 290 90

a 8 9 9
b c
3 3 3
8 6 9 5 9 5
8 9 9

0 0 0
14 14 14
1 1 1
0 4 0 4 0 4
4 14 4 14 4 14

4 5 4
4 5 4
10 9 10
2 2 2
4 5 4

Option B looks to be the most beneficial

But consider option c) d 9
3
It has only 2 critical paths and activity 2-3 has a float of 1 day 9 5
Activity is at its crash time and thus can be relaxed by 1 day. 9

By doing this it would be still at a time < its normal time. 0

14
The crash cost in this case would be 70+90-60=Rs.100 1 4
0
Hence this d) option would be the best option 5 14

Project Time = 14 days, Direct cost = Rs. 920/- + 100 = Rs. 1020
4
Total Project cost 4
10
= Direct cost + Indirect cost / day x Duration of the Project 2
4
= 1020 + 120 x 14 = Rs. 2700
Jan – Mar 2006 Network Analysis Slide 41 of 43
By
Prof. Nadpurohit
 Activity Normal Crash Normal Crash Cost
d 9 Time Time Cost (Rs.) Cost (Rs.) Slope
3 (days) (Days) (Rs.)
9 5
9
1-2 5 4 170 240 70
0
14 1-3 9 6 310 550 80
1
0 4
5 14
2-3 6 4 80 200 60

4 2-4 10 8 130 230 50

4
10
2
4 3-4 6 4 110 290 90

Project Time = 14 days, Direct cost = Rs. 920/- + 100 = Rs. 1020
Total Project cost
= Direct cost + Indirect cost / day x Duration of the Project
= 1020 + 120 x 14 = Rs. 2700
9
3
9 4
9
All activities are critical
Activity 1-2 is at its crash time & hence cannot be further crashed 0
13
For a Project duration of 13 days the crashing options are 1
0 4
5 13
a) Crash 2-4 and 3-4 at a crash cost of 50+90=140
b) Crash 1-3, 2-3 and 2-4 at a crash cost of 80+60+50=190
4
Choosing a option we get 4
9
2
4

Total Project Cost:

= Direct costs + Indirect cost / day x Duration of the project
= 1020+140 + 120x13 = Rs. 2720/-
This total Project cost is > Rs. 2700/
Hence Optimal Project duration at a minimum Total cost of Rs. 2700/- is 14 days

Jan – Mar 2006 Network Analysis Slide 42 of 43

By
Prof. Nadpurohit
 End of Chapter

Jan – Mar 2006 Network Analysis Slide 43 of 43

By
Prof. Nadpurohit