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Topics Covered

Project Network Nodes & Arcs Events & Activities Construction Rules Time Calculations CPM PERT Critical Path Float / Slack
On this page
  1. 1. Network Scheduling — Overview
  2. 2. Basic Components of a Network
  3. 3. Rules for Constructing a Network
  4. 4. Time Calculations
  5. 5. Float (Slack)
  6. 6. Critical Path Method (CPM)
  7. 7. Programme Evaluation and Review Technique (PERT)
  8. 8. CPM vs PERT — Comparison
  9. 9. Project Crashing (Time-Cost Trade-off in CPM)
  10. 10. End-to-End Worked Example
  11. Key Take-aways

1. Network Scheduling — Overview

DEFINITION

Network scheduling is a set of techniques to plan, schedule and control complex projects consisting of many interdependent activities. It produces a network diagram showing the activities, their precedence relationships and their durations.

Two best-known techniques: CPM (Critical Path Method, deterministic) and PERT (Programme Evaluation and Review Technique, probabilistic).

History

Applications

2. Basic Components of a Network

2.1 Activity

A specific task that consumes time and resources. Represented as an arrow (arc) in the network. Activities are labelled by capital letters (A, B, C) or by the pair of nodes they connect (1, 2).

2.2 Event (Node)

A point in time marking the start or completion of one or more activities. Represented as a circle (node).

2.3 Dummy Activity

An artificial activity with zero duration. Used to:

Drawn as a dotted arrow.

2.4 Network Diagram (AOA convention)

In the Activity-on-Arrow (AOA) convention used in this course:

The alternative Activity-on-Node (AON) convention uses nodes for activities — more common in modern software (MS Project, Primavera).

3. Rules for Constructing a Network

  1. Two events cannot be connected by more than one activity. If A and B both start at node 1 and end at node 2, introduce a dummy.
  2. An activity cannot start before all its predecessors are complete.
  3. Each activity must have a unique tail and a unique head node.
  4. The network is acyclic — no looping back.
  5. Events are numbered such that for every activity, the head node has a higher number than the tail node (topological numbering).
  6. There is exactly one start node and one terminal node.
  7. Avoid dangling events (events with no outgoing or incoming activity except the start and end).

When to Use a Dummy

Case 1: Two parallel activities with the same start and end nodes.

Activities A and B both go from node 1 to node 2 — illegal. Add a dummy node and redirect one of them.

Case 2: Activity C depends on both A and B, but activity D depends only on A.

Cannot draw without a dummy. Solution: end A at node X, end B at node Y; dummy from X to Y so C starts at Y; D starts at X.

4. Time Calculations

Once the network is drawn and activity durations are assigned, four key time values are computed for each event:

SymbolMeaning
\(E_i\)Earliest occurrence time of event \(i\) (forward pass)
\(L_i\)Latest allowable time of event \(i\) (backward pass)
\(\text{EST}_{ij}\)Earliest start time of activity (i, j)
\(\text{EFT}_{ij}\)Earliest finish time
\(\text{LST}_{ij}\)Latest start time
\(\text{LFT}_{ij}\)Latest finish time

4.1 Forward Pass — Earliest Times

Start with \(E_1 = 0\). For each subsequent event \(j\):

\[ E_j \;=\; \max_{i \to j}\, \bigl( E_i + t_{ij} \bigr), \]

where the maximum is taken over all activities (i, j) ending at j, and \(t_{ij}\) is the activity duration.

Activity times:

\[ \text{EST}_{ij} = E_i, \quad \text{EFT}_{ij} = E_i + t_{ij}. \]

4.2 Backward Pass — Latest Times

Start with \(L_n = E_n\) (project duration). For each preceding event \(i\):

\[ L_i \;=\; \min_{i \to j}\, \bigl( L_j - t_{ij} \bigr). \]
\[ \text{LFT}_{ij} = L_j, \quad \text{LST}_{ij} = L_j - t_{ij}. \]

5. Float (Slack)

DEFINITION

Float (or slack) is the spare time available for an activity without delaying the project. There are several types.

5.1 Total Float

\[ \text{TF}_{ij} \;=\; L_j - E_i - t_{ij} \;=\; \text{LFT}_{ij} - \text{EFT}_{ij}. \]

Maximum time by which the activity can be delayed without delaying the project completion.

5.2 Free Float

\[ \text{FF}_{ij} \;=\; E_j - E_i - t_{ij}. \]

Float assuming all preceding activities are completed at their earliest. Equals total float minus the slack carried forward.

5.3 Independent Float

\[ \text{IF}_{ij} \;=\; \max(0, E_j - L_i - t_{ij}). \]

Float assuming all preceding activities take their longest time and following ones start at earliest.

Always: IF ≤ FF ≤ TF.

6. Critical Path Method (CPM)

DEFINITION

The critical path is the longest path in the project network — the path that determines the minimum project duration. Activities on the critical path have zero total float — any delay in them delays the entire project.

Finding the Critical Path

  1. Compute \(E_i\) for all events (forward pass).
  2. Compute \(L_i\) for all events (backward pass).
  3. Identify events with \(E_i = L_i\) — these are critical events.
  4. Activities connecting consecutive critical events with TF = 0 form the critical path.
  5. If multiple critical paths exist, the project has parallel critical paths.

The length of the critical path = project completion time.

Worked Example

EXAMPLE 1 — CPM

Activities and durations (days):

ActivityPredecessorsDuration
A—3
B—5
CA7
DB3
EB5
FC, D4
GE2

Forward pass: E₁ = 0; after A: E_A = 3; after B: E_B = 5; after C (3 + 7 = 10), so E_after-C = 10; after D = 5 + 3 = 8; E_after-D = 8. F starts when both C and D done ⇒ E_before-F = max(10, 8) = 10. After F: 14. After E: 5 + 5 = 10. After G: 10 + 2 = 12. End event: max(14, 12) = 14.

So project duration = 14 days.

Backward pass: L_end = 14. L_before-F = 14 − 4 = 10. L_before-G = 14 − 2 = 12. L_before-C = 10 − 7 = 3. L_before-D = 10 − 3 = 7. L_before-E = 12 − 5 = 7. L_after-A = 3. L_after-B = min(7, 7) = 7. L_start = min(3 − 3, 7 − 5) = 0.

Critical events: those with E = L. The path A → C → F has duration 3 + 7 + 4 = 14 = project duration. All on critical path.

Critical path: A → C → F; activities B, D, E, G have positive total float.

Network diagram — critical path A → C → F (14 days) A, 3 B, 5 C, 7 D, 3 E, 5 F, 4 G, 2 123 456 (0, 0)(3, 3)(5, 7) (10, 10)(10, 12)(14, 14) critical path (E = L, zero float)
Fig 5.1 — The activity-on-arrow network. Each node is an event labelled with its (earliest, latest) time; each arrow is an activity with its duration. The red path A → C → F is critical — its events have E = L (zero float), and its length (3 + 7 + 4 = 14 days) fixes the project duration. Any delay on it delays the whole project.
EXAMPLE 2 — Compute float

For activity B (Pred —, dur 5) above: E_start = 0, E_end = 5, L_end = 7, so TF = 7 − 5 = 2. B can be delayed up to 2 days without affecting the project.

For activity E (Pred B, dur 5): E_start = 5, E_end = 10, L_end = 12 ⇒ TF = 12 − 10 = 2.

7. Programme Evaluation and Review Technique (PERT)

PURPOSE

PERT extends CPM to probabilistic activity durations. For each activity, three time estimates are made and combined to produce an expected duration and a measure of variability.

Three Time Estimates

Beta Distribution Assumption

PERT assumes the activity duration follows a Beta distribution on \([a, b]\) with mode \(m\). The first two moments are approximated as:

\[ t_e \;=\; \dfrac{a + 4m + b}{6} \quad \text{(expected duration)}, \] \[ \sigma_t \;=\; \dfrac{b - a}{6} \quad \text{(standard deviation)}, \] \[ \sigma_t^2 \;=\; \left(\dfrac{b - a}{6}\right)^2 \quad \text{(variance)}. \]

Procedure

  1. Compute \(t_e\) and \(\sigma_t^2\) for every activity.
  2. Apply CPM with \(t_e\) as the activity duration to find the critical path. The expected project duration \(T_e\) = sum of \(t_e\) on critical path.
  3. Variance of project duration \(\sigma^2_{\text{project}}\) = sum of variances of activities on the critical path.
  4. By CLT, the project completion time is approximately \(N(T_e, \sigma^2_{\text{project}})\).
  5. Use this normal distribution to answer probabilistic questions.

Probability of Completing in Time T

\[ P(\text{Project finishes by time } T) \;=\; P\!\left(Z \le \dfrac{T - T_e}{\sigma_{\text{project}}}\right) \;=\; \Phi\!\left(\dfrac{T - T_e}{\sigma_{\text{project}}}\right). \]
EXAMPLE 1 — PERT calculation

Activities with three-time estimates:

ActivityPredsambt_eσ²
A—23430.111
B—451261.778
CA561371.778
DB23430.111
EC, D34540.111

Network paths: A→C→E = 3 + 7 + 4 = 14; B→D→E = 6 + 3 + 4 = 13. Critical path = A→C→E with \(T_e = 14\).

\(\sigma^2_{\text{project}} = 0.111 + 1.778 + 0.111 = 2.0;\;\; \sigma = 1.414\).

P(project completes by 15 days) = \(\Phi((15 - 14)/1.414) = \Phi(0.707) = 0.76\).

P(project completes by 16 days) = \(\Phi((16 - 14)/1.414) = \Phi(1.414) = 0.92\).

EXAMPLE 2 — Time guarantee

Using same data: time \(T\) for which P(completion ≤ T) = 0.95?

From standard normal, \(z_{0.95} = 1.645\). \(T = T_e + z\,\sigma = 14 + 1.645 \cdot 1.414 = 16.33\) days.

To be 95% sure the project completes on time, schedule its deadline at 16.33 days (round up to 17).

8. CPM vs PERT — Comparison

AspectCPMPERT
OriginDuPont, 1957US Navy, 1958
Activity timeDeterministic (single value)Probabilistic (three values)
Project typeRepetitive (construction, maintenance)Non-repetitive (R&D)
FocusCost-time trade-off (crashing)Time uncertainty
OutputCritical path, exact durationCritical path, expected duration with probability
Cost considerationsBuilt inNot built in (PERT-Cost extension exists)

9. Project Crashing (Time-Cost Trade-off in CPM)

Crashing an activity means reducing its duration by deploying extra resources (workers, machines, overtime). It increases the activity cost but may shorten the project duration if the activity is on the critical path.

Crash Cost Slope

\[ \text{Cost slope}_{ij} \;=\; \dfrac{\text{Crash cost} - \text{Normal cost}}{\text{Normal time} - \text{Crash time}}. \]

This is the marginal cost of reducing the activity duration by one unit.

Crashing Procedure

  1. Identify the critical path.
  2. Among critical activities, crash the one with the smallest cost slope first.
  3. After crashing, recompute the critical path — it may shift.
  4. Continue until the desired duration is achieved or no further crashing is possible.

10. End-to-End Worked Example

EXAMPLE

A small project has activities A, B, C, D, E with durations 4, 7, 6, 5, 3.

Precedence: B and C follow A; D follows B; E follows C; project ends after D and E.

Paths:

Critical path: A → B → D, duration 16 days.

Floats: Activity C has TF = 16 − 4 − 6 − 3 = 3; activity E similarly = 3.

Key Take-aways