Selected Problems Solution

King Saud University
Civil Engineering Department
GE 404 Engineering Management

Summer semester 1433/ 1434H
Selected Problems Solution
Question 1
Table (1)
Immediate
A small project activities and related information are given in table Activity
predecessor(s)
(1).
A
a) Develop the AOA, AON, TSN
B
b) Calculate ES,LS,LS, AND LF and Find the critical path using
C
AON network
D
B
c) Find Gantt chart for each
E
A, D
d) Consider calendar date, the project starts Saturday, first of the
F
C
month and Friday is holiday. Draw the bar chart and
G
E, F
determine the project finish date and needed working days
e) Considering the constraints of ZZBD 3,2, FSCF 2, SSFG 4, SFEG 3; Determine:
i. Network data of forward and backward calculations and Total Float (TF)
ii. Critical path of the network. How it is differ from question 3b?
f) Develop load diagram of the resource, and find
i.
average daily requirement;
ii.
Critical Index
iii.
Effectiveness value
iv.
use Burgess Algorithm to level resource
Time,
days
Manpower
Equipment
E1
E1
E2
10
E2
E3
E4
E5
Solution
a)
AOA
AON
E, 3
2
A
,
A, 2
B, 5
D, 10
START
E
,
B
,
D
,
C
,
F,
6
G
,
C, 1
F, 6
G, 8
a) TSN
1
10
11
12
13
14
15
16
17
18
19
20
21
22
A,2
B,5
C,1
D,10
E,3
F,6
G,8
23
24
25
26


b) AON and critical path [carry calculation]

0
2
A
2
13
0
START
0
0
B
5
0
11
Activity
Free Float
Total Float
A
13
13
15
D
1
15
15
1
C
1
E
3
18
18
18
18
12
C
11
11
G
8
26
7
F
6
12
B
0
0
26
D
0
0
18
E
0
0
F
11
11
G
0
0
c) Gantt chart
T
B
D
E
G
A
C
F
01
02
03
B
04
05
06
07
08
09
10
11
12
13
13
15
16
17
18
19
20
21
22
23
24
24
26
CRITICAL
E
E
S
A
C
L
S
A
C
d) Calendar schedule
July
1
F
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
M
B
D
E
G
A
C
F


FORWARD PASS
Initial Time
EF FF D
Activity A: ESA=0; EFA= ESA+DA=0+2=2; ------------------------------------------------------------------------------ij
j
i
ESi SFij D j
Activity B: ESB=0; EFB= ESB+DB=0+5=5; ------------------------------------------------------------------------------[2]EF j ES j D j
e) Solution with constraint (lag times)

EF FS
i
ij
Forward pass:---------------------------------------------------------------------------------------------[1]ES j Max ( all i ) ESi SSij
Activity C: ESC=0; EFC= ESC+DC=0+1=1; -------------------------------------------------------------------------------
Activity D: ESD=ESB+SSBD=0+3=3 OR EFB+FFBD-DD=5+2-10=0 Then ESD=3; EFD= ESD+DD=3+10=13-Activity E: ESE=13; EFE= ESE+DE=13+3=16---------------------------------------------------------------------------Activity F: ESF=EFC+FSCF=1+2=3; EFF= ESF+DF=3+6=9----------------------------------------------------------Activity G: ESG=ESE+SFEG-DG=13+4-8=9 OR ESF+SSFG=3+4=7 Then ESG=9; EFG= ESG+DG=9+8=17---BACKWARD PASS
Backward pass: --------------------------------------------------------------------------------------------
Terminal Time
Activity G: LFG= EFG =17; LSG= LFG - DG =17-8=9; ----------------------------------------------------------------- LS FS
Activity F: LFF=LSG-SSFG+DF =9-4+6=11; LSF= LFF DF =11-6=5-----------------------------------------------[3]LFi Min( all j ) LF j FFij

j
ij
LS SS D
Activity E: LFE=LFG-SFEG+DE =17-4+3=16; LSE= LFE DE =16-3=13-------------------------------------------ij
i
j
LF j SFij Di
Activity D: LFD=13; LSD= LFD DD =13-10=3; ------------------------------------------------------------------------[4]LSi LFi Di
Activity C: LFC= LFF-FSCF = 10-2=8; LSC= LFC DC=8-1=7-------------------------------------------------------Activity B: LFB=LSD-SSBD+DB=3-3+5=5 OR LFD-FFBD=13-2=11 Then LFB=5; LSB= LFB DB =5-5=0----Activity A: LFA=13; LSA= LFA DA =13-2=11; -------------------------------------------------------------------0
2
A
2
11
0
START
0
0
B
5
D
10
0
7
Activity
Free Float
Total Float
A
11
11
B
0
0
13
13
13
13
13
1
C
1
C
7
7
16
17
G
8
17
9
F
6
D
0
0
E
3
16
11
E
0
0
F
2
2
G
0
0


f) Resource and leveling

TI
BDEGACFTI
R
R
R2
01
02
03
B
04
05
06
07
08
09
10
11
12
13
13
15
16
17
18
19
20
21
22
23
24
24
CRITICAL
E
G
E
S
A
C
F
0
1
6
0
3
8
2
4
6
4
02
10
16
3
6
10
0
0
4
8
3
2
6
4
0
5
8
4
0
6
4
06
07
08
09
10
11
12
13
13
15
16
17
18
19
20
21
22
23
24
24
26
48
56
59
62
65
68
71
74
77
80
84
88
92
95
98
3
10
1
3
10
4
3
10
7
3
11
0
3
11
3
3
11
6
64
64
16
16
16
9
64
8
R2
T
B
D
E
G
A
C
F
TI
R
R
R2
26
01
02
03
B
04
05
06
07
08
09
10
11
12
13
13
15
16
17
18
19
20
21
22
23
24
24
26
CRITICAL
E
G
L
S
A
C
F
0
1
3
0
2
3
0
3
3
0
4
3
1
2
0
5
3
1
5
0
6
3
1
8
0
7
3
2
1
0
8
3
2
4
0
9
3
2
7
1
0
3
3
0
1
1
3
3
3
1
2
4
3
7
1
6
1
3
8
4
5
6
4
13
15
10
10
55
65
10
0
10
0
1
6
9
7
4
8
1
1
7
9
8
3
8
1
1
8
9
9
2
8
1
1
9
3
9
5
2
0
3
9
8
21
22
23
24
24
26
3
10
1
3
10
4
3
10
7
3
11
0
3
11
3
3
11
6
R2
69
4
12
120
No. of Resources (Men)
Accumalative Resource (man)
140
100
80
60
ES
T
40
LS
T
20
ES
T
10
8
LS
T
6
4
2
0
0
0
10
20
30
10
15
20
25
30
Time, Day
Time, Days
Figure 1 Man Load histogram (Earliest & Latest

Start
Figure 2 man power requirement

4


Analysis
, =
( )
116
=
= .
()
26
= 2 = (4.462)2 26 = .
2
648
= 0.98
26
=
Load
TI
BDEGACF-
01
TI
R
R
R2
01
3
3
9
694
= 1.013
26
leveled
02
03
B
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
24
26
CRITICAL
E
G
A
C
F
02
3
6
9
03
3
9
9
04
3
12
9
05
3
15
9
06
3
18
9
07
5
23
25
08
5
28
25
09
4
32
16
10
8
40
64
11
8
48
64
12
8
56
64
13
8
64
64
14
8
72
64
15
8
80
64
16
4
84
16
17
4
88
16
18
4
92
16
19
3
95
9
20
3
98
9
21
3
101
9
22
3
104
9
23
3
107
9
24
24
3
3
110 113
9
9
R2
624
=
= 0.961
26
2
No. of Resources (Men)
12
LEVELING
ES
T
10
8
6
LS
T
4
2
0
0
10
15
20
Time, Day
Figure 3 Load Histograms
25
30
26
3
116
9
624


Question 2
A small project activities and related information are given in table.
1. Develop the AOA, AON, TSN
2. Calculate network times and Find the critical path using AON network
3. Find Gantt charts
4. Considering the constraints of ZZAD 3,2, SFDF 2, FSFH 2, SSGI 2; ZZHI 2,1Determine:
a. Network data of forward and backward calculations and Total Float (TF)
b. Critical path of the network.
5. Develop load diagram of the resource, and find
a. average daily requirement;
b. Critical Index
c. Effectiveness value
d. use Burgess Algorithm to level resource
Solution Q1 -16
J, 15
AOA network
F, 6
I, 14
H, 14
1
0
1
2
B, 4
A, 4
D, 7
C, 4
G, 7
K, 10
AON network
E, 7
J, 15
B,4
FSFH 2
F, 6
ZZHI 2,1
H, 14
SFDF 2
ZZAD 3,2
A,4
1
1
D,7
C,4
I, 14
SSGI 2
G, 7
E, 7
K,10
END


1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 2 3 3 4 4 4 4 4 4
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5
1 2 3 4 5 6 7 8 9
J, 15
B, 4
TSN network
A, 4
D, 7
F, 6
H, 14
G, 7
E, 7
C, 4
I, 14
K, 10
Solution Q1 -2ES
TF
LS
23
Act
LS
22
LF
30
15
45
11
17
CR@CS
4
11
11
17
11
11
18
17
18
D
7
11
27
17
31
31
14
24
31
25
24
31
17
18
K
35
35
Critical Path activities: A-D-F-H-I

Project duration Time =45 weeks
7
10
45
45
C
31
0
H
17
45
31
14
45
END
45
45
45


Solution Q1 -31 2 3 4 5 6 7 8 9
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 2 3 3 4 4 4 4 4 4
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5
A
D
F
H
I
B
J
E
G
C
K
EST GANTT CHART
1 2 3 4 5 6 7 8 9
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 2 3 3 4 4 4 4 4 4
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5
A
D
F
H
I
B
J
E
G
C
K
LST GANTT CHART
Solution Q1 -4 Solution with constraint

Forward pass:
Activity A: ESA=0; EFA= ESA+DA=0+4=4;
FORWARD PASS
Activity B: ESB=4; EFB= ESB+DB=4+4=8;
Initial Time
Activity C: ESC=4; EFC= ESC+DC=4+4=8;
EF FS
Activity D: ESD=ESA+SSAD=0+3=3 OR EFA+FFAD-DD=4+2-7=0

i
ij
Then
ESD=3; EFD= ESD+DD=3+7=10;
[1]ES j Max ( all i ) ESi SSij
Activity E: ESE= EFD =10; EFE= ESE+DE=10+7=17;
EF FF D
Activity F: ESF=ESD+SFDF-DF=3+2-6=0 OR EFB= 8;
ij
j
i
Then
ESF=8; EFF= ESF+DF=8+6=14;
ESi SFij D j
Activity J: ESJ= EFB= 8; EFJ= ESJ+DJ=8+15=23;
[2]EF j ES j D j
Activity G: ESG= EFE=17; EFG= ESG+DG=17+7=24;
Activity K: ESK= EFC=8; EFK= ESK+DK=8+10=18;
Activity H: ESH=EFF+FSFH=14+2=16; EFF= ESF+DF=16+14=30;
Activity I: ESI=ESH+SSHI=16+2=18 OR EFH+FFHI-DI=30+1-14=17 OR ESG+SSGI=17+2=19
Then
ESI=19; EFI= ESI+DI=19+14=33;


Backward pass:
BACKWARD PASS
Activity I: LFI= EFI =33; LSI= LFI DI =33-14=19;
Activity J: LFJ= EFI =33; LSJ= LFJ DJ =33-15=18;
Terminal Time
Activity K: LFK= EFK=33; LSK= LFK- DK =33-10=23;
LS FS
j
ij
Activity H: LFH=LSI-SSHI+DH=19-2+14=31 OR LFI-FFHI=33-1=32
[3]LFi Min( all j ) LF j FFij

Then
LFH=31; LSH= LFH DH =31-14=17
LS SS D
Activity G: LFG=LSI-SSGI+DG =19-2+7=24; LSG= LFG DG =24-7=17
ij
i
j
Activity F: LFF= LSH-FSFH = 17-2=15; LSF= LFF DF=15-6=9

LF j SFij Di
Activity E: LFE= LSG =17; LSE= LFE- DE=17-7=10;
Activity C: LFC= LSG =17; LSC= LFC- DC=17-4=13;
[4]LSi LFi Di
Activity B: LFB= LSF =9; LSB= LFB- DB=9-4=5;
Activity E: LFD=LFE-SFDE+DD=17-2+7=22; OR LFD = LSE=10;
Then
LFD=10; LSD=LFE DE =10-7=3
Activity H: LFA=LSD-SSAD+DA=3-3+4=4 OR LFD-FFAD=10-2=8 OR LSJ=18 OR LSC=13
Then
LFA=4; LSA= LFA DA =4-4=0
ES
TF
LS
8
Act
LS
10
23
LF
18
15
33
ZZHI 2, 1
CR@CS
4
B
5
A
0
FSFH 2
16
30
10
10
15
17
14
17
17
10
10
31
24
G
17
17
24
15
18
C
13
23
17
Critical Path activities: A-D-E-G-I

10
33
33
19
33
14
33
END
SSGI 2
19
SFDF 2
D
4
14
ZZAD 3, 2
0
33
33
33


Solution Q1 -51 2 3 4 5 6 7 8 9
A
D
F
H
I
B
J
E
G
C
K
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 2 3 3 4 4 4 4 4 4
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5
4 4 4 4
EST GANTT CHART

3 3 3 3 3 3 3
4 4 4 4 4 4
5 5 5 5 5 5 5 5 5 5 5 5 5 5
5 5 5 5 5 5 5 5 5 5 5 5 5 5
2 2 2 2
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
5 5 5 5 5 5 5
4 4 4 4 4 4 4
3 3 3 3
2 2 2 2 2 2 2 2 2 2
R 4 4 4 4 8 8 8 8 8 8 8 14 14 14 14 14 14 15 12 12 12 12 12 9 9 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
R 4 8 12 16 24 32 40 48 56 64 72 86 100 114 128 142 156 171 183 195 207 219 231 240 249 254 259 264 269 274 279 284 289 294 299 304 309 314 319 324 329 334 339 344 349
R2 16 16 16 16 64 64 64 64 64 64 64 196 196 196 196 196 196 225 144 144 144 144 144 81 81 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25
R2 16 32 48 64 128 192 256 320 384 448 512 708 904 1100 1296 1492 1688 1913 2057 2201 2345 2489 2633 2714 2795 2820 2845 2870 2895 2920 2945 2970 2995 3020 3045 3070 3095 3120 3145 3170 3195 3220 3245 3270 3295
R2
1 2 3 4 5 6 7 8 9
A
D
F
H
I
B
J
E
G
C
K
R
R
R2
R2
3295
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 2 3 3 4 4 4 4 4 4
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5
4 4 4 4
LST GANTT CHART

3 3 3 3 3 3 3
4 4 4 4 4 4
5 5 5 5 5 5 5 5 5 5 5 5 5 5
5 5 5 5 5 5 5 5 5 5 5 5 5 5
2 2 2 2
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
5 5 5 5 5 5 5
4 4 4 4 4 4 4
3 3 3 3
2 2 2 2 2 2 2 2 2 2
4 4 4 4 3 3 3 5 5 5 5 4 4 4 4 4 4 10 10 10 10 10 10 10 9 9 9 9 9 9 12 11 11 11 11 10 10 10 10 10 10 10 10 10 10
4 8 12 16 19 22 25 30 35 40 45 49 53 57 61 65 69 79 89 99 109 119 129 139 148 157 166 175 184 193 205 216 227 238 249 259 269 279 289 299 309 319 329 339 349
16 16 16 16 9 9 9 25 25 25 25 16 16 16 16 16 16 100 100 100 100 100 100 100 81 81 81 81 81 81 144 121 121 121 121 100 100 100 100 100 100 100 100 100 100
16 32 48 64 73 82 91 116 141 166 191 207 223 239 255 271 287 387 487 587 687 787 887 987 1068 1149 1230 1311 1392 1473 1617 1738 1859 1980 2101 2201 2301 2401 2501 2601 2701 2801 2901 3001 3101
R2
10
3101


Question 8
Consider the time-scaled network given below.
a) Draw the corresponding AON network showing each activity four timings and total float.
b) For Developed load diagram of the resource for EST below, find
i. Average daily requirement
ii. Effectiveness value
iii. Critical Index
c) Perform the resource leveling in order to keep the resource uniform with resource constraint of 5 and find
i. Average daily requirement
ii. Effectiveness value
iii. Critical Index
d) Comment on the budget costing before and after leveling of resources,
Period, week
01
02
03
04
05
06
07
09
10
12
13
14
15
16
17
18
19
20
21
22
23
H
3@1500SR
J
2@500SR
F
3@2000SR
C
3@2500SR
D
2@1000SR
Resources, R
Budget, Cs,
1000SR
11
E
3@1000SR
B
2@500SR
A
5@2000SR
08
I
2@2500SR
K
3@2000SR
G
2@1000SR
3.5
2.5
2.5
2.5
2.5
14
a) AON
3
B
12
0
30
A
0
10
15 15
21
21
23
14
14
19
19
23
14
11
14
G
9
21
18
18
2
19
17
C
3
14
Critical Path activities: A-C-F-I-K

11
19
23
END
K
19
23
23
23
23


b) Load diagrams
Period, week
01
02
03
A
5@2000
04
05
06
07
01
5
5
25
10
11
12
13
14
15
16
17
2@500SR
3@1000SR
3@1500SR
18
19
20
21
22
23
J
2@500SR
K
3@2500S
3@2000SR
2@2500SR
3@2000SR
2@1000SR
week
R
R
R2
09
Resources, R
Budget, Cs,
1000SR
08
2@1000SR
4.5
2.5
2.5
2.5
2.5
11
5
70
25
12
5
73
9
13
5
76
9
14
5
79
9
15
5
84
25
16
5
89
25
17
5
94
25
18
2
96
4
19
2
98
4
20
5
103
25
21
5
108
25
02
5
10
25
03
5
15
25
04
5
22
49
05
7
29
49
06
7
36
49
07
5
41
25
08
6
49
64
09
6
57
64
10
8
65
64
Analysis
23
3
114
9
642
= . =

642
=
=
= .
565.153
Comments
No. of Recourses
10
,
( )
114
=
=
()
23
= .
= 2 = (4.957)2 23
8
6
4
2
0
0
1- Load histogram shows resource variations

through the time.
2- The average resources required to be leveled is
>= 5
3- available resources only 5 at any time, then
Hence, when available resource is 5; Then,

= 2 = (5)2 23 = =
=
22
3
111
9
R2
.
= .
12
10
20
Project Duration
30


c) Resource leveling
Arrange according LST (A, C, D, B, F, G, E , I, H, K, J)
EAS
OSS
A
5 5 5
3 3 3 3
2 2 2
2 2 2
3 3 3 3 3
2 2 2
3 3 3
2 2 2 2 2
3 3 3
3 3 3 3
2 2
WEEK 1 2 3 4 5 6 7 8 9 10 11 12
5 5 5 5 5 5 5 5 5 5 5 5
- - - 2 2 2 2 3 3 2 2 2
R
R
R2
5 5
R2=
532
13
5
2
14 15 16 17 18 19 20 21 22 23 24 25 26
5 5 5 5 5 5 5 5 5 5 5
2 2 2 2 3 3 2 2 2 2 2
5 5 5 5 5 5
5 5 3 3
10
15
20
25
30
35 40 45 50 55 60 65 70 75 80 85 90 95
98
103 108 111 114
25
25
25
25
25
25 25 25 25 25 25 25 25 25 25 25 25 25
25
Analysis
No. of Resources
10
8
6
4
2
0
0
10
15
Project Duration, week
R (without resource limit)

, =
25
( )
114
=
= .
()
24
= 2 = (4.75)2 24 = . =
.
=
= .
13
20
25
R (with resource limit=5)


Comments
1-
Load histogram shows resource variations reduced by leveling through the time.
d) Budgeted Cost
Week
Budget, Cs 1000SR
(Without resource level)
Cumulative Cs
Budget, Cs 1000SR
(With resource level=5)
Cumulative Cs
10
11
12
13
14
15
16
17
18 19
20
21
22
23
4.5
2.5 2.5
2.5
2.5
9 13 17 20.5 23.5 26.5 30.5 33.5 36.5 39.5 42.5 46.5 50.5 54.5 57 59.5 62 64.5 66.5 68.5
6 9.5 13 16.5 19.5 22 24.5 27.5 30.5 33.5 36.5 39.5 43 46.5 50
4.5
2.5 2.5
54
2.5
2.5
Cumulative budgeted cost, 1oooSR
60
50
Cumulative
Cs1000SR(Without
resource level)
30
Cumulative Cs1000SR(With
resource level=5)
20
10
0
0
10
15
20
Project Duration, week
25
Figure 4 Cumulative Budgeted Cost

Comment:
Since the duration is extended when resources is limited to 5, this is resulted in small reduction of budgeted cost
over periods.
14
58 59.5 62 64.5 66.5 68.5
70
40
24


Question 12 (Crushing)
Development of a new version of software is
Tome, weeks
Cost, $
considered by a software company. The activities Activities Predecessor(s) Normal Crash Normal Crash
necessary for completion of the project are given
A
4
3
2000
2600
in the following table (1)
B
2
1
2200
2800
C
3
3
500
500
(a) What is the project completion date?
D
A
8
4
2300
2600
(b) What is the total cost required to completing
E
B
6
3
900
1200
this project on normal time?
F
C
3
2
3000
4200
(c) If it is required to reduce the completion time
G
D, E
4
2
1400
2000
by one week, which activity should be
crashed? , and how much will this increase the total cost increase?
(d) What is the maximum time that can be crashed? How much would cost increase?
Solution
(a) Project completion time 16
(Critical Path Activities ADG)
A,
4
(b) Total cost on normal duration time =

normal cost of activities = $12,300
START
(c) Crash one week
D,
8
B,
2
E,
6
C,
3
F,
3
G,
4
Find cost slope

Activity
(X)
Normal Time Crash Time
(Y)
Crash $Normal $
A
B
C
D
E
F
G
1
1
0
4
3
1
2
600
600
0
300
300
1,200
600
Crash activity (D) by one week at extra cost of $75

(d) Maximum time to be crashed
Activity Crash Cost
D
4
$300
G
2
600
A
1
600
E
1
100
7 weeks $1,600
15
Cost Slope=(Y/X);
$/time
600
600
75
100
1,200
300
END


Question 13 (financing)
Consider data for a small project given in Table below. Revenue is paid to the contractor every 6 months
according to completed quantities of work. Assume that markup is 10% of total project cost and is uniformly
distributed over the work.
Assume also that work of each activity is uniformly distributed over its duration.
a. Draw on a scale the project cumulative cost and revenue curves according to ES timings.
b. Draw on the diagram produced in a) above effect of receipt of 10% of total revenue as an advance
payment. This payment will be deducted from each periodic revenue by the same percentage.
Solution
B,
6
1A,
12
Activity Predecessor(s) Duration, Months Monthly cost, SR1000

A
12
20
B
A
6
60
C
A
12
60
D
B,C
6
50
D,
6
C,
12
Project completion time 30 ; (Critical Path Activities ACD)

2- Activity Cost distribution
TIME
10
12
14
16
A-20
18
20
22
24
26
C-60
28
30
D-50
B-60
ACC.
COST
0040
0080
0120
0160
0200
0240
0480
0720
0960
1080
1200
1320
1420
3- Revenue calculation
4- Total payment = 1620*(1+0.1) x 1000=(1620+162) x 1000 =1782 x 1000
Advanced payment = 0.1*1782 x 1000 =178.2 x 1000
Revenue every 6 months =
Month
0
6
12
18
24
30
R= Revenue =(Cost*1.1),
1000 SR
Adj. Revenue = 0.9 R, 1000

SR
120(1.1)=132
240(1.1)=264
960(1.1)=1056
1320(1.1)=1452
1620(1.1)=1782
118.8
237.6
950.4
1306.8
1603.8
16
Cumulative Revenue,
1000 SR
178.2
118.8+178.2=297.0
237.6+178.2=415.8
950.4+178.2=1128.6
1306.8+178.2=1485.0
1603.8+178.2=1782.0
1520
1620


5- Graph presentations
1800
1600
Cash out= Cost
1200
1000
Adj. Revenue
800
600
Revenue
400
200
0
0
10
15
20
Project Duration, weeks
25
Figure 5 Cumulative Cash Flow
300
Adj. Revenue
100
Cash, 1000 SR
Project Cash, 1000 SR
1400
-100 0
10
20
-300
-500
-700
Revenue
Project Duration, weeks

Figure 6 Net Cash Flow
17
30
30


Question17 (project control)

A small engineering project has budgeted cost of each activity as shown
Table (1b) Project status
in Table (15a). The budgeted cost of each activity is assumed to be
th Activity % completed Expense to date,
uniformly distributed over its duration. Project status at the end of the 15
1000 SR
day, is given the table (15b). The actual cost of work performed (ACWP)
A
100
4.2
at the end of day 15 = 20200 SR
B
60
3.0
Table (1a). Activity budgeted cost
Activity
A
B
C
Budgeted cost (SR) 4000 6000 2000
D
8000
E
7000
F
6000
G
9000
H
4000
Calculate the CV, SV, CPI, SPI, and % overrun (underrun); BAC, EAC;
comment on progress of works.
C
D
E
F
G
H
100
80
100
80
0
0
Total
1.6
5.0
7.2
4.2
0
0
25.2
Solution
Project Cost Control
Activity
Budgeted (scheduled) Cost,

1000 SR
A
B
C
D
E
F
G
H
Total
4
6
2
8
7
6
9
4
46
% completed
100
60
100
80
100
80
0
0
To date value
Estimated Cost,
1000 SR
4*1.0=4
6*0.6=3.6
2
8*0.8= 6.4
7
6*0.8=4.8
0
0
BCWP = 27.8
Expense to date,
1000 SR
4.2
3.0
1.6
5.0
7.2
4.2
0
0
ACWP = 25.2
(Over /Under) Run

Cost, 1000 SR
+0.2
-0.6
-0.4
-1.4
+0.2
-0.6
0
0
-2.4 (under-Run)
Using Equations
BCWS (SR) =20,200
BCWP (SR) = 4000 + 6000 (0.6) + 2000 + 8000(0.8) + 7000 + 6000 (0.8) = 27,800
ACWP (SR) = 4200 + 3000 + 1600 + 5000 + 7200 + 4200 = 25,200
CV (SR) = BCWP ACWP = 27800-25200=+2600 Over Budget
SV (SR) = BCWP BCWS = 27,800-20,200=+7,600 Ahead of the schedule
BAC (SR) = 4000 + 6000 + 2000 + 8000 + 7000 + 6000 +9000 + 4000 = 46,000
EAC (SR) = (ACWP/ BCWP) BAC = (25,200/27,800)*46,000= 41,697.84
ETC (SR) = EAC ACWP =41,697.84-25,200= 16,497.84
% overrun or underrun = (ACWP-BCWP)/BCWP =(25,200-27,800)/ 27,800= -9.35% underrun
Comment:
1- Expenses are less than estimated and project is under control.
18


Question18 (Crashing & project control)

Table (15) gives the work activities of a project and its related data.
Table (16a) project activity data
Normal Schedule Crashed Schedule
Activity Predecessor (s) Time, Cost,
Time, Cost,
week 10,000 SR week 10,000 SR
A
4
2.0
2
5.0
B
6
3.0
3
9.0
C
A
4
4.5
2
10.0
D
A, B
6
2.5
4
10.0
E
D
2
0.5
1
1.0
F
E
13
13.0
8
25.0
G
E
1
1.5
1
1.5
H
C, G
20
6.0
10
23.5
I
F
9
7.0
5
16.0
Total
40.0
101.0
Table (16b) Project status

% completed Expense to date,
Activity
10,000 SR
A
100
2.6
B
100
5.0
C
100
3.0
D
100
5.0
E
100
0.7
F
40
5.6
G
100
0.7
H
25
2.0
I
0
0
Total
24.6
a) Determine EST, LST, TF schedule for each work activity at normal activity duration.
b) Determine a minimum schedule to complete the project within 26 weeks, what will be the required budget?
c) Consider that the project is scheduled according earliest time schedule for normal activity duration, only
246,000 SR has been spent and the project status as shown in table (3b). Determine the project is ahead or
behind schedule and the amount it is over or under budget. Suggest corrective actions in case that the project
is behind schedule or over budget.
Solution (a)
AON network
A, 4
C, 4
H, 20
G, 1
STAR
FINIS
B, 6
D, 6
E, 2
Critical Path activities: B-D-E-F-I

Project duration Time =36 Weeks
19
F, 13
I, 9


Time Schedule analysis for Project normal activity duration

Activity Predecessor (s)
A
B
C
D
E
F
G
H
I
A
A, B
D
E
E
C, G
F
Forward pass Backward pass

Normal
Time, week ES LS
LS
LF
4
0
4
2
6
6
0
6
0
6
4
4
8
12
16
6
6
12
6
12
2
12
14
12
14
13
14
27
14
27
1
14
15
15
16
20
15
35
16
36
9
27
36
27
36
Slack, (LS_ES)=
TF
2
0
8
0
0
0
1
1
0
On Critical
Path
yes
yes
yes
yes
yes
Solution (b) Crashing

Activity
Cycle
#
0
1
2
3
4
Predecessor (s)
B
C
D
E
F
G
A
A, B
D
E
E
H
I
C, G
F
Activity to
Shorten
Can Be
Shortened
E
B, A
I, H
D
1
3, 2
4, 10
2
X=(Normal Crash)
Time, week
Week
Shortened
Y=(Normal crash)
Cost, 10,000 SR
Cost Slope =Y/X,

10,000 SR
2
3
2
2
1
5
3.0
6.0
5.5
7.5
0.5
12.0
1.5
2.0
2.75
3.75
0.5
2.4
10
4
17.5
9
1.75
2.25
Cost per week,

10,000 SR
1
0.5
3, 1
2, 1.5
4, 3
2.25, 1.75
2
3.75
Total extra cost paid, 10,000SR
Project budget,10,000 SR
Cost for Cycle,

10,000 SR
0.5
6+1.5=7.5
9+5.25=14.25
7.5
29.75
40+29.75=69.75
Project
Duration
36
35
32
28
Time Schedule analysis for Project after crashing

Forward pass Backward pass Slack, (LS_ES)=
Activity
Activity Predecessor (s)
Time, week
TF
ES
LS
LS
LF
A
3
0
3
0
3
0
B
3
0
3
0
3
0
C
A
4
3
7
5
9
2
D
A, B
4
3
7
3
7
0
E
D
1
7
8
7
8
0
F
E
13
8
21
8
21
0
G
E
1
8
9
8
9
0
H
C, G
17
9
26
9
26
0
I
F
5
21
26
21
26
0
20
New activity
duration time, week
1
3, 3
5, 17
4
On Critical Path
yes
yes
yes
yes
yes
yes
yes
yes


Critical Activities; A, B, D, E, F, G, H, I
Project Duration =26 WEEKS
Number OF Critical path = 4
Budget =697,500 SR
Solution (c) Project control

Activity
Predecessor
(s)
A
B
C
D
E
F
G
H
I
A
A, B
D
E
E
C, G
F
project cost control Report

Normal Schedule
To date values
Time, Cost (scheduled),
%
Cost (estimated),
Expense to
Cost
week
10,000 SR
completed
10,000 SR
date, 10,000 SR overrun/underrun,10,000SR
4
2.0
100
2.0
2.6
+0.6
6
3.0
100
3.0
5.0
+2.0
4
4.5
100
4.5
3.0
-1.5
6
2.5
100
2.5
5.0
+2.5
2
0.5
100
0.5
0.7
+0.2
13
13.0
40
13*0.4=5.2
5.6
+.4
1
1.5
100
1.5
0.7
-0.8
20
6.0
25
6*0.25=1.5
2.0
+.5
9
7.0
0
7*0=0
0
0
Total
40.0
BCWP = 20.7
ACWP = 24.6
Over-run = +3.9
OR
BCWS (SR) =24.6 x 104
BCWP (SR) = (2 + 3 + 4.5 + 2.5 + 0.5 + 13*0.4+ 1.5 + 6*0.25) = 20.7 x 104
ACWP (SR) = (2.6 + 5 + 3 + 5 + 0.7 + 5.6 + 0.7 + 2) = 24.6 x 104
CV (SR) = BCWP ACWP = 20.7 x 104-24.6 x 104=-3.9 x 104 under Budget
SV (SR) = BCWP BCWS = 20.7 x 104-24.6 x 104 =-3.9 x 104 behind the schedule
BAC (SR) = (2 + 3 + 4.5 + 2.5 + 0.5 + 13+1.5 + 6 + 7) = 40 x 104
EAC (SR) = (ACWP/ BCWP) BAC = (24.6 x 104 /20.7 x 104)* 40 x 104= 47.54 x 104
ETC (SR) = EAC ACWP =47.54 x 104-24.6 x 104 = 22.94 x 104
% overrun or underrun = (ACWP-BCWP)/BCWP =(24.6 x 104 -20.7 x 104)/ 20.7 x 104= 18.84% Over-run
Comments:
1- The project is found to be behind schedule / experiencing cost over-run.
2- The experienced cost over-run or delay is lost causes due to not meeting project deadlines or budgets.
3- Action should be taken for cost saving, (a) in case the project behind schedule, expediting some activity
at extra cost may be possible; (b) in case over budget, non-critical activities are evaluated for cost saving.,
(c) in case of fund reduction causing delay, evaluating project duration time is evaluated and may require
to be extended.
21

Selected Problems Solution - Summer 1433-34H

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King Saud University

Civil Engineering Department

GE 404 Engineering Management

King Saud University

GE 404 Engineering Management