network analysis or mba ppt 2
TRANSCRIPT
-
7/31/2019 Network Analysis OR MBA PPT 2
1/20
Network AnalysisModule 4
-
7/31/2019 Network Analysis OR MBA PPT 2
2/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
3/20
-
7/31/2019 Network Analysis OR MBA PPT 2
4/20
Techniques used in network analysis
PERT-program evaluation review technique
CPM-critical path method
-
7/31/2019 Network Analysis OR MBA PPT 2
5/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
6/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
7/20
Pictorial representation of an activity
i j
Starting event Completion event
Activity
Tail of the arrow Head of the arrow
node
node
Activity
Activity
-
7/31/2019 Network Analysis OR MBA PPT 2
8/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
9/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
10/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
11/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
12/20
-
7/31/2019 Network Analysis OR MBA PPT 2
13/20
-
7/31/2019 Network Analysis OR MBA PPT 2
14/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
15/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
16/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
17/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
18/20
Soln.
1 82 6
3
4
5
76
8
18
8
72
20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
19/20
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
-
7/31/2019 Network Analysis OR MBA PPT 2
20/20