Network analysis document

1. PROJECT
PLANNING TOOLS
NET WORK ANALYSIS

2. Critical Path Analysis (CPM)
• Critical path analysis is a project-management technique that lays
out all of the activities needed to complete a task, the time it will
take to complete each activity and the relationships between the
activities.
• CPM is a step-by-step project management technique to identify
activities on the critical path. The approach breaks a project into
work tasks, displays them in a flow chart, and then calculates the
project duration based on estimated time frames for each. It
identifies tasks that are critical, time-wise.

3. Key Steps in the Critical Path Method
1. Define the Project and all of its significant activities or tasks. The
Project (made up of several tasks) should have only a single start
activity and a single finish activity [Using the work breakdown structure, you need
to identify each activity (or task) involved in the project. This activity specification list
should only include higher-level activities.]
2. Develop the relationships among the activities. Decide which activities
must precede and which must follow others [Some activities will depend on
the completion of others. Listing the immediate predecessors of each activity will
help you identify the correct order.]

4. Key Steps in the Critical Path Method
3. Draw the "Network" connecting all the activities. Each Activity should
have unique event numbers. Dummy arrows are used where required to
avoid giving the same numbering to two activities.

5. Key Steps in the Critical Path Method
4. Assign time and/or cost estimates to each activity [If you are managing
a smaller project, you will most likely estimate time in days. [If you are
working with a complex project, you may have to measure time in weeks.]
5. Compute the longest time path through the network. This is called the
critical path
6. Use the Network to help plan, schedule, and monitor and control the
project.

6. How to Use PERT in the Critical Path Method
PERT (Project Evaluation and Review Technique)) is a method used to
examine the tasks in a schedule and determine a Critical Path Method
variation (CPM). It analyses the time required to complete each task and
its associated dependencies to determine the minimum time to complete
a project.

7. What is PERT formula?
PERT is determined using three points: Optimistic (O), Most Likely (M),
and Pessimistic (P). PERT combines probability theory and statistics to
derive a formula for the average activity from the three-point estimates.
PERT estimate formula is: (O + 4M +P) / 6.

8. Example
• Now let's take a look at this example of the metrics for a project execution,
where O = 12 months, M = 14 months, and P = 18 months.
• So the total would be (12+ 4*14 + 18) = 86, and we'll get the result once we
divide the total by 6.
• According to the PERT calculation, the time estimate for the project execution
is 86/6 = 14.33 months
What we can see from the formula is that there are 6 elements total and that the
most likely scenario is counted 4 times.

9. Applications of CPM / PERT
These methods have been applied to a wide variety of problems in industries and have
found acceptance even in government organizations. These include:
1. Construction of a dam or a canal system in a region
2. Construction of a building or highway
3. Maintenance or overhaul of airplanes or oil refinery
4. Space flight
5. Cost control of a project using PERT / COST
6. Designing a prototype of a machine
7. Development of supersonic planes