Chapter 4

Network Analysis
Subtitle
 Learning Objectives
Upon successful completion of this chapter, you will be able to:
• Explain Network Analysis
• Discuss Network diagram and it symbols used in Network
Diagrams
• Understand the difference basic network Analysis Methods:
PERT, CPM and Gantt
• Explain Gantt Chart/ it’s various activities
• Understand the advantages and disadvantages of Gantt Chart.
 What is Network Analysis??
• Network Analysis is a technique for planning and controlling large
projects, such as construction work, Research & Development projects,
computerization of systems etc.
• Its primary aim is to program and monitor the progress of a project so
that the project is completed in the minimum time. In doing this, it
pinpoints the parts of the project which are “crucial”.
 What is Project Management??
• Project management is the discipline of initiating, planning,
executing, controlling, and closing the work of a team to achieve
specific goals and meet specific success criteria.
Basic Network Analysis Methods
• CPM (Critical Path Method)
• PERT Method (Program Evaluation and Review Technique)
• GERT Method (Graphical Evaluation and Review Technique)
What is Critical Path Method??
• Critical Path Method (CPM) is • It is a mathematical based
basically a step-by-step Project algorithm for scheduling a set of
Management technique that project activities.
separates planning and
scheduling.
• It also clarifies the inter
relationship of time and cost.
• CPM evaluates all the possible
alternative plans for project and
associates each plans with a
schedule.
Where is it used??
 Advantages of CPM
• Consistent framework for planning, scheduling, monitoring, and
controlling project.
• Helps proper communications between departments and functions.
• Determines expected project completion date.
• Determines the dates on which tasks may be started or must be
started if the project is to stay in schedule.
• Shows which tasks must be coordinated to avoid resource or timing
conflicts.
• Shows which tasks may run in parallel to meet project completion
date.
 Disadvantages of CPM
• Reliability of CPM largely based on accurate estimates and assumptions
made.
• CPM does not guarantee the success of project.
• Resources may not actually be as flexible as management hope when
they come to address network float.
• Too many activities may the network diagram too complicated.
• Activities might themselves have to be broken down into mini projects.
Project Evaluation and Review Technique
• The Project Evaluation and Review Technique, commonly
abbreviated PERT, is a statistical tool, used in project management.
It was developed for the U.S. Navy Special Projects Office in 1957 to
support the U.S. Navy's Polaris nuclear submarine project. An early
example was, it was used for the 1968 Winter Olympics in Grenoble
which applied PERT from 1965 until the opening of the 1968 Games.
 Where is it used??
• It is used more in projects where time is the major factor rather
than cost. It is applied to very large-scale, one-time, complex,
non-routine infrastructure and Research and Development
projects. PERT and CPM are complementary tools, because
"CPM employs one time estimate and one cost estimate for each
activity; PERT may utilize three time estimates (optimistic,
expected, and pessimistic) and no costs for each activity.
Benefits of PERT
• Enables to determine the exact date of completion of the task
• Completion of work is possible before the specified date
• Critical path activities specify the main impact in completion of
activities in time
• Slack time can be noted out early
• Entire project data can be organized and used for decision making
• Helps to identify early start, late start and the slack-time activity
• Identifies the accurate critical path visible and clear to all.
• Helps to prevent loss of money, material and time
 Advantages of PERT
• PERT (Program Evaluation and Review Technique) compels
managers to plan, which helps them see how the pieces fit
together. Each subordinate manger has to plan the events for
which her or she is responsible.
• It concentrates on critical elements that may need correction.
• It makes possible a kind of forward-looking control.
• The network system with its subsystems enables managers to aim
reports and pressure for action at the right spot and level in the
organization structure at the right time.
Disadvantages of PERT
• Because of its emphasis on “activity-time” to its operation, PERT
is not useful when no reasonable estimates of time schedule can
be made.
• Another disadvantage has been its emphasis on time only but
not on costs.
• WBS: Break down the project into constituent activities such that
each activity is clearly identifiable and manageable.
• Activity: This is a physically identifiable part of the project that
consumes time and resources. It is represented by an arrow (in AOA
diagrams)
• Events (node): These are the beginning or end points of an activity.
Event is a point in time and does not consume any time or resource
and is represented by a circle.
• Path: This is a continuous chain of activities from the beginning to
the end of the project.
Gantt Chart
• It is defined as a graphical device that illustrate the tasks,
machines, personnel and resources used to complete a task.
• It is always done on a calendar-oriented grid.
• It is not only lists out the start and the finish data but also
summary elements of the project.
Components of Gantt Chart
• Horizontal axis: It represents time scale expressed as absolute
time from the project start to its end. Horizontal bar indicate
time needed to do the project.
• Vertical marker or vertical axis: It is used to represent the
present point in time; vertical lines are indicated to denote
progress and completion.
• Broken lines: These indicate gap or slippage times during the
project schedule.
• Diamond symbol: It indicates rescheduled work.
Gantt Chart
Planning and Scheduling
• Use a Gantt Chart to plan how long a project should take. A Gantt chart
lays out the order in which the tasks need to be carried.
• Early Gantt charts did not show dependencies between tasks but modern
Gantt chart software provides this capability.
• Henry Laurence Gantt, an American mechanical engineer, is credit with
the invention of the Gantt chart.
Monitoring a Project
• A Gantt Chart lets you see immediately what should have been
achieved at any point in time.
• A Gantt chart lets you see how remedial action may bring the
project back on course. Most Gantt charts include “milestones’
which are not part of a traditional Gantt chart.
• However, for representing deadlines and other significant events, it
is very useful to include this feature on a Gantt chart.
Advantages of Gantt Charts

• Excellent tool to communicate wide population around the

world
• At a single glance, work done can be analyzed quickly
• It is used as a reporting tool for large projects
• It gives cost, time and scope of the project
Disadvantages of Gantt Charts
• It cannot effortlessly display more than 30 activities
• It is valuable only for short projects
• Chart can communicate only little information at a time
• Magnitude behind the schedule is easily miscommunicated,
since it does not represent full size of the project
• It is not suitable for most computer displays
The Creators of Information Systems

• First bullet point here

• Second bullet point here
• Third bullet point here
 Two Content Layout with SmartArt
• First bullet point here Group A
• Second bullet point here • Task 1
• Task 2
• Third bullet point here Group B
• Task 1
• Task 2
Group C
• Task 1
• Task 2