PROJECT PLANNING &

SCHEDULING TECHNIQUES

Prof. Sanjay Bhoyar

Proposed Topics for Discussion:

Time-Cost Trade-off
Resources Scheduling
Linear Scheduling
Critical Chain Project Management

NICMAR, PUNE

SANJAY BHOYAR

References:

PROJECT MANAGEMENT: Techniques in Planning & Controlling

Construction Projects

Hira N Ahuja
John Wiley & Sons

CONSTRUCTION PROJECT SCHEDULING

Callahan; Queckenbush & Rowing

McGraw Hill Publications

SCHEDULING CONSTRUCTION PROJECTS: Principles and Practices

Sandra Weber
Pearson Education

PROJECT MANAGEMENT for Business, Engineering & Technology

Nicholas & Steyn

PROJECT MANAGEMENT: A systems Approach to Planning,

Scheduling & Controlling

Harold Kerzner
NICMAR, PUNE

SANJAY BHOYAR

Project Scheduling:

Part of Planning

Determining the sequence & timings of activities of a

project

Time-frame for the project

Basis for

Allocating resources
Estimating costs
Tracking project performance
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SANJAY BHOYAR

Original Time scheduling

Based on technical constraints

Considers normally required / available resources
For individual activities

But, Ignores

Time & Resource constraints, &

Cost optimization
Effective utilization of resources

NICMAR, PUNE

SANJAY BHOYAR

TIME-COST TRADE-OFF

Prof. Sanjay Bhoyar

Project costs:

Direct costs

Indirect costs

Cannot be attributed to an activity

Project overheads

Penalties / incentives

Attributed to a particular activity

Stipulated project completion time according to terms of

contract

Time- cost trade-off

Determining the minimum total cost for a possible

project duration

NICMAR, PUNE

SANJAY BHOYAR

Reducing Project Duration:

Fast tracking

Re-allocation of resources

Overlapping the critical activities

No change in direct cost
Resource & space conflict
Withdrawing resources from non-critical activities & allocating to critical
activities
No change in direct cost
Reduces floats

Compression/ Crashing

Reducing duration(s) of critical activity (activities)

Increasing the resources for critical activities
Additional resources at premium cost
Increase in direct cost

NICMAR, PUNE

SANJAY BHOYAR

Compression of an activity:

Reducing duration:

Increasing the resources

Using more productive resources
Premium

cost

Extending the work-hours

Higher

over-time costs
Reduction in productivity

Increase in the Direct cost of the activity

NICMAR, PUNE

SANJAY BHOYAR

Direct cost curve for an activity:

Direct Cost
CC
Assumed straight line

CS

CC NC
NT CT

NC
Activity duration
CT
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NT
SANJAY BHOYAR

Compression of a project:

Reducing project duration

Compressing critical activities

Increase in the direct cost of the project

Decrease in the indirect cost of the project
Crashing:

Ultimate stage of compression

NICMAR, PUNE

SANJAY BHOYAR

Time - Cost trade-off:

Total Cost
Cost
Minimum
Total Cost

Indirect Cost

Direct Cost
Project duration
Minimum PD

NICMAR, PUNE

Optimum PD

Normal PD

SANJAY BHOYAR

Steps in compression/ crashing:

Determine activity compression potential &

cost slope
Draw network for normal durations
List all paths, with their durations
Identify CP
Compress activities along CP (s)
Continue till at least one CP is fully
compressed (crashed)

NICMAR, PUNE

SANJAY BHOYAR

Points to remember:

Compress activity (activities) along CP (s) only

Compress activity (activities) with minimum
cost slope (minimum combined cost slope)
Must compress an activity along each CP
At any stage, do not compress more than one
activity along any CP

NICMAR, PUNE

SANJAY BHOYAR

Numerical problem:
Activity

Preceding
activity

NT
(weeks)

CT
(weeks)

NC
(x`1000)

CC
(x`1000)

640

700

300

400

540

700

280

350

700

1000

820

1180

470

790

C,D

390

500

270

400

E,H

860

860

550

620

F,G

450

450

L,N

270

370

Indirect cost is `1,50,000 /- per week

NICMAR, PUNE

SANJAY BHOYAR

Compression potential & Cost slope

Activity

NT

CT

NC

CC

Compression Cost slope

potential
(x`1000
(weeks)
/wk)

640

700

60

300

400

50

540

700

80

280

350

70

700

1000

100

820

1180

120

470

790

80

390

500

55

270

400

65

860

860

--

--

550

620

70

450

450

--

--

270

370

50

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SANJAY BHOYAR

START

A(3)

B(5)

C(6)

D(4)

Paths
0
A-E-K-M

22

A-E-L-P

20

B-D-H-L-P

23

C-H-L-P

20

C-F-N-P

23

C-G-N-P

26*

E(7)

K(7)

M(5)

H(4)

L(2)

P(8)

F(6)

N(3)
N(3)

G(9)

Duration along path @ each stage

1
2
3
4

NICMAR, PUNE

FINISH

SANJAY BHOYAR

Compression table:
Stage

Act

CS

Dur of
comp

PD

Increa
se in
DC

DC

IC

Penalty

TC

Rem
arks

26

6540

3900

--

10440

NPD

NICMAR, PUNE

SANJAY BHOYAR

START

Act

t
0

A(3)

B(5)

C(6)

D(4)

E(7)

K(7)

M(5)

H(4)

L(2)

P(8)

F(6)

N(3)

G(9)

FINISH

CS
3

60

50

Duration along path @ each stage

Paths

80

70

A-E-K-M

22

100

A-E-L-P

20

120

B-D-H-L-P

23

80

C-H-L-P

20

55

C-F-N-P

23

65

C-G-N-P

26*

NICMAR, PUNE

SANJAY BHOYAR

START

Act

A(3)

B(5)

C(6)

D(4)

E(7)

K(7)

M(5)

H(4)

L(2)

P(8)

F(6)

N(3)

G(9)

FINISH

CS

60

50

80

70

100

120

80

55

65

--

70

--

0 -

50

Duration along path @ each stage

Paths

A-E-K-M

22

22

22*

21*

19*

18*

A-E-L-P

20

18

18

17

17

17

B-D-H-L-P

23

21

21

21*

19*

18*

C-H-L-P

20

18

16

16

16

15

C-F-N-P

23

21

19

19

19*

18*

C-G-N-P

26*

24*

22*

21*

19*

18*

NICMAR, PUNE

SANJAY BHOYAR

Compression table:
Stage

Act

CS

Dur of
comp

PD

Increa
se in
DC

DC

IC

Penalty

TC

Rem
arks

26

6540

3900

--

10440

NPD

50

24

100

6640

3600

--

10240

80

22

160

6800

3300

--

10100

60

80

65

50

80

70

55

120

80

NICMAR, PUNE

21

140

6940

3150

--

10090

19

390

7330

2850

--

10180

18

325

7655

2700

--

10355

Min
TC;
OPD

MPD

SANJAY BHOYAR

Compression Table (with Penalty)

Stag
e

Act

CS

Dur of
comp

PD

Increa
se in
DC

DC

IC

Penalty

TC

Rem
arks

26

6540

3900

1200

11640

NPD

50

24

100

6640

3600

800

11040

80

22

160

6800

3300

400

10500

60

80

21

140

6940

3150

200

10290

65

50

80

65

50

80

70

55

120

80

NICMAR, PUNE

20

195

7135

3000

--

10135

19

195

7330

2850

--

10180

18

355

7655

2700

--

10355

SANJAY BHOYAR

Min
TC;
OPD

MPD

Time-Cost Trade-off

12000

11640

11500
Total Cost (x` 1000)
11000
10500

11040

10500
10355
10180

10000

10290
10135

10090

10440
10240

10100

9500
9000
18

NICMAR, PUNE

19

20

21

22

24

26

SANJAY BHOYAR

START

START

A(2)

B(5)

C(4)

A(2)

B(4)

D(4)

D(4)

E(7)

K(7)

M(5)

H(4)

L(2)

P(6)

F(6)

N(3)

FINISH

PD=21
A-O-N Network
(Optimum PD:
Without Penalty)

G(8)

E(7)

K(6)

M(5)

H(4)

L(2)

P(6)

FINISH

PD=20

C(4)

NICMAR, PUNE

F(6)

G(7)

N(3)

A-O-N Network
(Optimum PD:
With Penalty)
SANJAY BHOYAR

A-O-N Network
(Minimum PD)

START

A(2)

B(3)

C(4)

NICMAR, PUNE

D(4)

E(7)

K(5)

M(4)

H(3)

L(2)

P(6)

F(5)

N(3)

G(5)

FINISH

PD = 18

SANJAY BHOYAR