Ishwar Adhikari

 In the simple sense, planning means thinking ahead of

an operation to be performed.
 The managerial function of deciding what to do, how
to do and when to do is known as planning.
 It is a predetermined course of action to be undertaken
in future.
 It begins with the analysis of external environment and
internal resources and ends with formulation of goals.
 Project planning must be systematic and flexible
enough to handle unique activities.
Planning Functions
 Stating the objectives of the project to be
undertaken.
 Definition of work requirement
 Definition of resource needed such as funds,
materials, machines, human resources, facilities
etc.
 Determining the time frame of the overall project
and also scheduling its various stages.
 To eliminate or minimize the risk and uncertainty
 It provides a basis for organizing the work on the
project and allocating responsibilities to
individuals.
Need For construction planning
 To eliminate or reduce uncertainty
 To improve efficiency of the operation
 To obtain better understanding of objectives
 To provide a basis for monitoring and
controlling work.
1. Proper design of each element of the project.
2. Proper selection of equipment and machines.
3. Procurement of material well in advance.
4. Employment of trained and experienced staff on the
project.
5. To provide incentives for good workers.
6. To arrange constant flow of funds for the completion
of the project.
7. To provide proper safety measures such as proper
ventilation, proper arrangement of light and water.
8. Proper arrangements or means of communications
and feedback etc.
“ To Eat a Goat You Have
to Cut Into Different
Small Pieces”
• How many task does the project have?
• How much detail should the project
plan have?
This query is overcome by work break
down structure.
 This is the first major step in the planning after
formulation of project.
 WBS is a hierarchical (from general to specific)
tree structure of deliverables and tasks that need
to be performed to complete a project. The project
is broken down into smaller elements which are
manageable, measurable and integratable into
total package.
 The purpose of WBS is to identify terminal
elements (the actual items to be done in a
project); therefore WBS serves as the basis for
much of project planning.
 In establishing the WBS, each work package must
be clearly defined using a written verbal
description (scope of work) as well as information
as to what work will be included with this part of
the project.
 The WBS acts as a vehicle for breaking the work
down into smaller elements, thus providing a
greater probability that every major and minor
activity will be accounted for.
 After initial project funding is received, the
Project Director (PD) develops a WBS that
identifies necessary funds according to the
schedule and needs of the tasks in the WBS
elements
 The project work should be structured in WBS in
following way:
 Definable—can be described and easily understood
by project participants.
 Manageable—a meaningful unit of work where
specific responsibility and authority can be
assigned to a responsible individual.
 Estimatable—duration can be estimated in time
required to complete, and cost can be estimated in
resources required to complete.
 Independent—minimum interface with or
dependence on other ongoing elements (i.e.,
assignable to a single control account, and clearly
distinguishable from other work packages).
 Integratable—integrates with other project work
elements and with higher level cost estimates
and schedules to include the entire project.
 Measurable—can be used to measure progress;
has start and completion dates and measurable
interim milestones.
 Adaptable—sufficiently flexible so the
addition/elimination of work scope can be
readily accommodated in the WBS framework.
Level Description
1. Total Program
2. Project
3. Task
4. Subtask
5. Work package
6. Level of effort
 Level 1
Project

Level 2

Task 1 Task 2
Level 3

Sub Task 1.1 Sub Task 1.2 Sub Task 2.1 Sub Task 2.2

Level 4

Work Work Work Work

package 1.1.1 package 1.2.1 package 2.1.1 package 2.2.1

A typical WBS structure

 There is no hard and fast rule as to number of levels
into which the project is to be breakdown.
 The number of stages/ levels should be neither too few
nor too large. If the project is broken down into only
one or two levels, integration of activities may become
difficult.
 On the other hand if number of level are very high it
will make analysis complex and unproductive.
 So WBS should be carried on till such time that the
work package (small element) available is capable of
giving a good definition of work content, the resource
required and the cost and time requirement.

 A schedule is a “time-phased” plan for performing
the work necessary to complete project.
 A schedule is a tool to determine the activities
necessary to complete a project, the time it will
take to complete the activities, and the sequence
in which the work must be performed to complete
the project in a timely and cost-effective manner.
“ Construction scheduling is a graphical
representation which show the phasing
rate of constructions activities with the
starting and completion dates and the
sequential relationship among the
various activities or operations in a
project so that work can be carried out
in an orderly and effective manner”
 To predict project completion time and
activity completion time.
 To control financing and payment.
 To serve as a record.
 To support delay claim.
 To manage changes and uncertainties
 Bar chart/ Gantt chart
 Linked bar chart.
 Critical path method (CPM)
 Program Evaluation and Review
Technique (PERT)
 Line of balance. (LOB)
 Precedence Diagramming Method
(PDM)
 Graphical representation of completion of
various activities of a project.
 Developed by Henry Gantt around 1919.
 The job/ activities are listed vertically as per
their sequence and each of them is allotted a
horizontal strip, denoting the estimated time
to complete that particular activity.
 Used as planning and scheduling tool for
small and medium size project.
Method of preparation of Bar chart
 Breakdown the whole project into various
activities or into sub activities.
 Develop a logical sequence of the activities and
also find out the activities that can be executed
concurrently.
 Decide the time duration for each activity for its
completion.
 Finally by using a number of bars, as required the
different activated to be performed are indicated
on a chart.
S.N. Job/ Activity Calendar month

Jan Feb Mar Apr May June

1 Foundation
work
2 R.C.C. work

3 Door and
windows
work No defined relationship

4 Interior
Finish
5 Sanitary
works
6 Electrical
works
7 Exterior
finish

A bar chart example of a building project

➢ Easily understood and easily prepared.
➢ The overall performance of the activity can be
judged from chart without going through the
detailed report.
➢ Useful for reporting who are not involved in
day to day management.
➢ Used as a preliminary planning tool.
 If too many activities are shown separately
in a bar chart, then it becomes messed up.
Hence it is not suitable for large and
complicated project.
 Lack of interrelationship and
interdependencies among the activities.
 It cannot be used as control device for large
projects.
 Each activity receives the consideration
with no indication where management
attraction should be focused.
 Critical activities are difficult to be
identified and floats are unknown.
 A project consist of 8 activities A,B,C,D,E,F,G,H with
their time of completion as follows.
Activity Duration (week)
A 2
B 4
C 2
D 4
E 6
F 4
G 5
H 4
Condition
 A and B can be performed in parallel
 C and D can not start until A is complete.
 E can not start until half the work of activity C is
complete.
 F can start only after D is complete.
 G succeeds C
 H is the last activity which should succeed E.

Q. Draw the bar chart and find out the completion

time of the project.
 A linked bar chart is a modified form to
overcome some of the limitation of bar chart.
 It shows the link between an activity and the
preceding activities which have to be
completed before this activity can start and
the succeeding activities which are dependent
on this activity.
Type 1 Finish to Start (FS)
(Activity B cannot start until Activity A is
finished)
A

B
Type 2 Start to Start (SS)
(Activity B should start when Activity A starts )
A

B
Type 3 Finish to Finish (FF)
(Activity B should be finished when Activity A
starts)
A

Type 4 Start to Finish (SF)

(Activity B should be finished when Activity A
starts) A

B
 It is a modification over the original bar chart.
 When a particular activity represented by a bar on
a bar chart is very long, the details lack.
 If the activity is broken down into number of sub
activities, each one of which can be easily
recognized during the progress of the project.
 The beginning and end of these subdivided
activities are termed as milestones.
 Network technique is one of the modern tools
of Project management.
 For a project involving large number of
activities, the project scheduling becomes very
complex and the use of conventional method
of scheduling like bar charts will not be
effective.
 Network based scheduling of projects come
handy in solving complex projects scheduling
problems.
 There are two popular network based
scheduling techniques.

CPM developed in the

 Critical Path Method –
year 1957 by Morgan R. Walker of DU Pont
and James E. Kelly of Remington Rand for
preparing shutdown schedule of a chemical
plant.
 Program Evaluation and Review Technique –
PERT, developed by US Navy in 1958 for
scheduling Polaris Missile Project
 Project is broken down into a series of
activities.
 Activities are linked together according to their
logical relationship (preceding, succeeding and
concurrent)
 The time of completion or duration of each
activity is estimated
 The network diagram is drawn and from
diagram the completion time of whole project
is determined.
 The technique of network-based scheduling
by critical path method is used for planning
and scheduling project involving the
sequential operation.
 It is an activity oriented network diagram
showing the interdependencies and
relationship between the various activities.
 In a network diagram, the path along
which the project takes the maximum
time from start to finish is called critical
path.
 It is the longest path of the network and
gives the total time taken to complete
the project.
 Any delay along this path delays the
project.
 6
3 3

1 2 1

4 4
5 6

8
3

The critical path is 1-2-3-4-5 (20 days)

1. Activity:
 It means the performance of the specific task of
project.
 Arrow in a network diagram represents activity.

Activity (i-j)
j
A
i
1
B
A B C
1 2 3 4 A and B are Concurrent
Activity
A is the predecessor of B C is the Successor of B
2. Duration (t):
 Estimated time to perform a definite
activity/task.
 It is mentioned alongside with activity
name.
Activity Duration =
Work Quantity/ Production rate
3. Event/Node:
 It is the point in time denoting
completion of an activity and start of
an activity.
 i j k
Event Event Event

Tail/ Burst event Head/ Merge event

 It is a hypothetical activity shown in a dotted line
on network diagram, indicating the dependence
of one activity to another.
 It doesn’t consume time and resources.
A C D
1 2 3 5

B
4 Dummy activity

 Here, Activity D cannot start until activity B is

completed.
 LOGICAL PURPOSE
A C D
1 2 3 5

Dummy activity
E
B
4
F
 GRAMMATICAL PURPOSE

A C D
1 2 5

3 Dummy activity
B
4
4. Earliest start time (EST): This is the
earliest time an activity can start.
5. Earliest finish time (EFT): Earliest finish
time for any particular activity.
i j
ti-j
EFT (i-j) = EST (i-j) + ti-j

6. Latest finish time (LFT): Latest time of

finishing an activity without delaying
completion of project.
7. Latest Start Time (LST):
➢ Latest time of starting an activity without
delaying completion of the project.
LST (i-j) = LFT- ti-j
8. Float/ Slack:
 Float or slack is the time margin available for
commencement and completion of various
activities that are not critical.
 The difference between the early and late start
or finish times indicates the maximum time
the activities can be delayed without
impacting the project completion date.
1. Total Float (TF): It is the time that the start or
finish of an activity can be delayed without
delaying the project.

t(i-j)

TF TF
i j

EST(i-j) LST(i-j) EFT(i-j) LFT(i-j)

EFT (i-j) = EST (i-j) + t (i-j)
LFT (i-j) = LST (i-j) + t(i-j)
LFT (i-j) – EFT (i-j) = LST (i-j) – EST (i-j)
TF = LFT (i-j) – EFT (i-j) OR LST (i-j) – EST (i-j)
2. Free Float (FF) : Finish of an activity can be delayed
without delaying the early start time (EST) of the
following activity.

FF
i j k

EST(i-j) EFT(i-j) EST(j-k)

FF = EST (j-k) – EFT (i-j)

3. Independent Float (IF): It is the excess of minimum
available time over the required activity duration.

t(i-j)
h i j k

EFT(h-i) EST(j-k)

IF = EST (j-k) – EFT (h-i) –t(i-j)

IF = FF (i-j) – Tail Event Slack

 Interfering Float (IF2): Total float (TF) – Free

Float (FF)
9. Event Slack:
 Difference between earliest event occurrence
time and latest event occurrence time.
Event Slack= latest event occurrence time (TL) –
Earliest event occurrence time (TE)
1. FORWARD PASS CALCULATION
 All activities in the network are assumed to start as
early as possible.
 The calculation begins from the left to the right
side of the network.
 When two or more activities merge into a event, the
largest value is taken as an earliest occurrence time
of that event.
 Forward pass calculation gives the EST and EFT of
each activity
1. BACKWARD PASS CALCULATION
 All activities in the network are assumed to start as
late as possible.
 The calculation begins from the right to the left
side of the network.
 When two or more activities merge into a event, the
smallest value is taken as an latest occurrence time
of that event.
 Backward pass calculation gives the LST and LFT of
each activity
 Activities should start from a single initial node
and end on single final node.

A
D

F
B E
C
 There should not be a loop formation in the
network.

 Two or more activities can start from a same

common node but cannot end on a same common
node.
 There should not be an intersection between the
activities.

 The number of arrows should not be more than

the number of activities.
A
D

A
B E
C
 There should not be unnecessary dummy in the
network diagram .
Construct a network diagram and find all the
components of CPM.
S.N. Activity Duration (day) Predecessor Successor
1 A 1 - D,E
2 B 6 - F,J
3 C 2 - G
4 D 2 A H
5 E 4 A H
6 F 3 B I
7 G 4 C J
8 H 2 D,E K
9 I 5 F L
10 J 3 B,G -
11 K 3 H L
12 L 4 I,K -
TE = Earliest Occurrence Time
TE = 5, 3
TL = Latest Occurrence Time TE = 7 EST EFT
5 H (2) LST LFT
1 3 9
5 7
TL = 9 5 7 TL = 11
TE = 1
D (2) 9 11
2 1 5
0 1 K (3)
5 9
4 5 TL = 5,7
TE = 5 7 10
A (1) E (4)
11 14
1 5 6 14 18
TE = 6 5 9
9 14
TE = 0 14 18
B (6) TL = 9 9 14
3 F (3) TE = 18, 9
1 TE = 14,10
0 6 TE = 9 I (5) L (4)
0 6 10 11
TL = 0
TL = 6,15 6 9 7
6 9
0 2 TE = 2 TL = 14 TL = 18
C (2) TL = 9
9 11
2 6 J (3)
4
11 15 TE = 6, 6
6 9
TL = 11
G (4) 8 15 18

TL = 15

Critical Path = 1-3-7-10-11 Critical Activity = B,F,I,L

Project Duration = 6+3+5+4 = 18 days
SN Activ Durat ES EF LS LF TF FF Ind Inf Remark
ity ion T T T T

1 A 1 0 1 4 5 4 0 0 4
2 B 6 0 6 0 6 0 0 0 0 Critical
3 C 2 0 2 9 11 9 0 0 9
4 D 2 1 3 7 9 6 2 0 4
5 E 4 1 5 5 9 4 0 0 4
6 F 3 6 9 6 9 0 0 0 0 Critical
7 G 4 2 6 11 15 9 0 0 9
8 H 2 5 7 9 11 4 0 0 4
9 I 5 9 14 9 14 0 0 0 0 Critical
10 J 3 6 9 15 18 9 0 0 9
11 K 3 7 10 11 14 4 4 0 4
12 L 4 14 18 14 18 0 0 0 0 Critical
S.N. Activity Duration Predecessor Successors

1 A 1 - C,D
2 B 3 - E
3 C 2 A F,G
4 D 2 A H
5 E 5 B I,J,K
6 F 1 C I
7 G 3 C I,J,K
8 H 3 D I,J,K
9 I 5 E,F,G,H L
10 J 1 E,G,H L
11 K 4 E,G,H M
12 L 1 I,J -
13 M 2 K -
 It is a probabilistic approach for estimating the
duration of an activity and event oriented
network diagram.
 PERT is used in the completely newly developed
project such as Research and design, new
industries product design and there may not be
record of past experiences in the particular field.
 PERT system is preferred for those projects in
which correct time determination for various
activities cannot be made.
The most optimistic time (to):
 This is the shortest possible time in which activity
can be completed. It is assessed considering that
there is no any constraint and everything goes
alright as planned.
The most pessimistic time (tp):
 This is the maximum possible time that would be
required to complete the activity. It gives the idea
about the maximum time the activity can be
prolonged due to bad weather, low productivity,
changes in design etc.
The most probable time (tm):
 In between the optimistic and pessimistic time,
there lies a most reliable time. This is the time
required to complete an activity if normal
condition is provided.
Probability of
occurrence
PERT weighted average
CPM time time/ Expected time
µ = (to + 4tm + tp )/6

possible
duration
Optimistic Most reliable Pessimistic
time
The weighted average of 3-time estimate
µ = (to + 4tm + tp )/6
Standard deviation (σ) = tp-to/6
Variance = σ2
Consider the following activities in a network.
 Determine expected completion time and critical path.
 Variance and standard deviation of the critical path

3
4 t= 2,6.5,8
t= 1,2,3 4
1 5 6
2 6
5 7
2
4
 PERT Average time / The most expected time
µ/te = (to + 4tm + tp )/6
For Activity 1-2 , te = (1+ 4*2+ 3) / 6 = 2
Standard deviation (σ) = tp-to/6 = 2/6 =1/3
Variance = σ2 = 1/9

S.N. Activity t0 tm tp te σ σ2 Remarks

1 1-2 1 2 3 2 1/3 1/9 Critical
2 2-3 1 4 7 4 1 1
3 2-4 3 4 11 5 4/3 16/9 Critical

4 3-5 3.5 4 4.5 4 1/6 1/36

5 4-5 5 6 13 7 4/3 16/9 Critical
6 5-6 2 6.5 8 6 1 1 Critical
Project Duration = Summation of expected time along critical path
= 2+5+7+6 = 20 days.
Variance of Project (σ2) = Summation of variance along CP
= 1/9 + 16/9 + 16/9 + 1 = 42/9

Standard Deviation (σ) = (42/9)1/2 = ………

 CPM PERT
1. Activity oriented network 1. Event oriented network
diagram diagram
2. Useful of cost evaluation 2. Useful for time evaluation
3. Uses Only a single time 3. Uses 3-time estimates for
estimates for activities. activities.
4. Includes relationship 4. PERT analysis doesn’t include
between activities time and costs.
cost. 5. It uses statistical tools.
5. Doesn’t uses statistical tools 6. Used for completely new
6. Used for repetitive work project involved with factor
such as construction, repair, of uncertainty such as R&D
maintenance etc. project.
 Project Scheduling with limited
resources.

 In a real life project, it is a very common

experience that the resources are frequently in a
limited supply causing delay in completion of
project.
 Particular material or some machinery may not
be available in the middle of the project due to
some reasons beyond the control of project
manager.
 Availability of skilled and unskilled labor may be
restricted as well as availability of fund may be
restricted.
 Due to this the following constraint are imposed
due to the limited resources.
 Starting of an activity is delayed.
 Non critical job may be critical due to delay in
starting.
 More than one type of resource may be scarce at a
time.
 Resource may be scarce in the middle of
performance of a particular job. Etc.

These above mentioned constraints can be

overcome by the proper allocation of the
resources.
Resource Leveling.
 It is an attempt to reduce peak resources
requirement and smooth out period to period
assignments within the constraints of project
duration.
 The objective of project manager is to level as far
as demand for resources throughout the project
execution time keeping in view that project
completion time does not exceeds.
Resource smoothing
 There is no constraint on project completion
time.
 There is only constraint of resource availability.
 Increase in project duration will lead to indirect
expenses (overheads). Hence the project duration
can be extended to satisfy resource constraint.
 It shall be done in such a way that the project
duration is extended to the minimum possible
extent and at the same time satisfying the
resource constraints.
Consider the following information of a project

Activity Duration (days) Mason per day

1-2 2 1
2-3 3 2
2-4 4 3
2-5 2 1
3-10 4 2
4-6 2 3
4-7 4 3
5-9 4 5
6-8 2 1
7-9 5 1
8-9 3 1
9-11 2 1
10-11 3 1
11-12 2 1
 Work
External
Outside Plan
Factors
Input

Field
Project operation
Manager

Cost/Schedule
Engineers

Historical
Data
 If your budget spend plan shows you over
spending and your schedule shows milestones
slipping, you can know you may be in trouble.
 But you will have no way to make a quantitative
assessment of how bad the trouble is?
 EVMS solves this problem by providing an
accurate picture of spending and
accomplishments related to a baseline plan.
 “EVA is a standard method of measuring a
project’s progress (performance) at any given
point in time, forecasting its completion date and
final cost and analyzing variances in the schedule
and budget as the project proceeds”.
 It compares the planned amount of work with
what has actually been completed, to determine if
the cost, schedule and work accomplished are
progressing in accordance with the plan.
1. Budgeted Cost of Work Scheduled (BCWS) / Planned
Value
 It is the budgeted amount of cost of the work
scheduled to be accomplished in a given time period
(including support and allocated overhead)
2. Actual cost of work performed (ACWP) /Actual Value
 It is the amount actually expended in completing
the particular work accomplished within a given
time period.
3. Budgeted cost of work performed (BCWP)/Earned
value
 The value, in terms of your baseline budget, of the
work accomplished by now (in dollars or hours),
called the Earned Value!
COST VARIANCE (CV)
 It is the budgeted cost of the work to date minus
the actual cost of the work done to date.
 CV = BCWP – ACWP
(-ve sign implies cost overrun)

Schedule/Performance Variance
 It is the value of the work done minus the value to
the work that should have been done.
 SV = BCWP – BCWS
(-ve sign implies work is behind schedule)
 The percentage overrun (under run) can also be
computed using the following formula:

% overrun (under run) = (ACWP-BCWP)

BCWP
+ve value gives the cost overrun
Cost Performance Index (CPI) = BCWP/ACWP
(< 1 indicates cost is over budget)

Schedule Performance index (SPI) = BCWP/BCWS

(<1 indicates project is behind schedule)
 Suppose that an activity had 5-day duration
and was expected to cost $10,000. Set into the
project, and prior to finishing an activity, the
following data were obtained about the
progress done to that activity:
 Have so far worked for 3.5 days on activity.
 60% of an activity has been accomplished
 $8000 already spent on C.
Perform the earned value analysis and
comment on the result
The following quantities can be easily computed:
 ACWP =$8000,
 BCWP = 60%*10000 = $6000
 BCWS = 3.5*10000/5 = $7000
Cost variance = $6000-$8000
= - $2000(cost overrun)
Schedule variance = $6000- $7000
= -$1000 (behind schedule)
CPI = 6000/8000 = 0.75(<1) (cost overrun)
SPI = 6000/ 7000 = 0.86 (<1) (behind schedule)
% overrun = (8000-6000) / 6000 = 33.33% (+ve)
(cost overrun)
From the above, a new activity duration estimate
can be computed as:
New activity duration = original time estimate/ SPI
= 5/0.86= 5.8 (i.e. 6 days)
New cost estimate = original cost estimate/ CPI
= 10,000/0.75 = $13,333.34