IS 14580-2: Use of network analysis for projects management, Part 2: Use of graphic technique

2006·2.5 MB·English

by  Bureau of Indian Standards

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IS 14580-2 (2006): Use of network analysis for projects
management, Part 2: Use of graphic technique [MSD 4:
Management and Productivity]
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IS 14580 (Part 2) :2006

Indian Standard
USE OF NETWORK ANALYSIS FOR PROJECT
MANAGEMENT
PART 2 USE OF GRAPHIC TECHNIQUES
ICS 03.100.40

0 BIS2006
BUREAU OF INDIAN STANDARDS
MANAK BHAVAN, 9 BAHA”DUR SHAH ZAFAR MAR”G
NEW DE LHI 110002
October 2006 6 Price Croup 11
Management and Productivity Sectional Committee, MSD 4
FOREWORD
This Indian Standard (Part 2) was adopted by the Bureau of Indian.Standards, after the draft finalized by the
Management andProductivity Sectional Committee hadbeenapproved bythe Management andSystems Division
Council.
Aproject isdescribed as aone time activity with an identifiable beginning and an identifiable end unlike other
routine activities that are repetitive. It has a well defined purpose and scope and a.detinite set of separate but
interrelated and interdependent activities that must becompleted to achieve the objectives for which the project
is instituted. It has a well defined project product, including product performance criteria and well defined
completion criteria.
This standard ispublished intwo parts. Other part inthe series is:
Part I Management, planning, review, reporting andtermination procedures
Part 1ofthisstandard dealt withthe basicaspectsofproject management thatwereapplicable totheprojects from
conception to completion/termination using network techniques.
Project network techniques asused now, have developed sincethe mid 1950s.These developments include both
activity-on-arrow and activity-on-node systems. The technique as developed aimed at improving the ability to
planandcontrol complex engineering projects andwascalledCritical PathMethod (CPM). Probabilistic elelments
appropriate to the research and development (R&D) area were also included in a modified technique called
Programme Evaluation and Review Technique (PERT). This standard provides guidance on the factors that are
to be considered while choosing between the various networking techniques. Itdeals with the drawing methods
tobeusedforpresentation ofthese techniques and inparticular forpresentation ofactivity-on-arrow andactivity-
on-node diagrams including the conventions to be used.
Activity-on-arrow networks were quite popular inthe manual handling of networks. With the increasing useof
computers for processing, activity-on-node or precedence networks have now become more popular. Anumber
ofready-made sofiware packages areavailable foruseoncomputers which provide support notonly forplanning

but also for updating and monitoring of progress from time-to-time. The technique has since been extended to

handle scheduling of resources, uncertainty of outcome aswellas duration and many other specific parameters.
Systems based on network analysis provide various advantages over the conventional methods of planning and
control based on bar charts. These advantages may include:
a) Clearer definition ofthe scope ofthe project andthe complex interrelationships between itsconstituent
activities;
b) Better coordination between different agencies engaged in the project and provision of information
about each agencies progress and future plans to the others;
c) Ease of preparing schedules of activities and adjusting these schedules to last minute developments;
d) Ready means of reviewing the project and exercising control over time, resources and costs; and
e) Clearer identification of critical and risk areas, besides providing an excellent model for generating
‘what-if scenarios for making management decisions.
1S14580(Part 2) :2006
Indian Standard
USE OF NETWORK ANALYSIS FOR PROJECT
MANAGEMENT
PART 2 USE OF GRAPHIC TECHNIQUES
1 SCOPE activities together and may also show major eventsl
milestones.
This standard (Part 2) deals with the various graphic
techniques used in project management in its various 3.3 For drawing the bar chart, start with listing down
aspectsandduring itsvarious phases ofexecution. The theactivitiesalongwiththeirtimeduration. Depending
methodology ofusingthese various graphic techniques on the project duration and duration of each of the
as covered inthis standard, include the following: activities, asuitable time scale maybeselected. Abar
chart would then be drawn as a two-dimensional
a) Bar charts (Gantt charts),
representationofvariousactivitiesoftheprojectplotted
b) Milestone charts,
on the vertical axis and their duration flowing from
c) Activity-on-arrow charts, Ietl to right on the horizontal axis.
d) Activity-on-node charts,
3.4 Bar charts can also be drawn to reflect resource
e) Squared network,
scheduling, where instead of listing activities inrows
o Histogram, inthe left margin, these are substituted with the name
i?) Time variance charts, of the specific resource element like persons
h) Cost variancecharts, responsible, department namesorpiecesofequipment.
Clause 9 pertaining to resource utilization charts can
j) Resource utilization charts, and
bereferred for more details.
k) Resource productivity charts.
3.5 Figure I shows representation of a bar chart
2 REFERENCE pertaining to a simple house building project. The
The following standard is a necessary adjunct to this lowerlinewithtroughed endsrepresent scheduled start
andthe~cheduled finishoftheplanned progress, while
standard:
the darker upper straight line represents the part of
1SNo. Title activity that has been completed as on the date of

IS 14580 Use ofnetwo rk analysis for project review. The review point in Fig. I reflects the status

(Part 1):1998 management : P art I Management, ofvarious activities.atthetime ofreview. Areview of
planning, review, reporting and the status indicates that though excavation started a
termination procedures bit late but was completed on time. The foundation
work was completed ahead of schedule. !,The
3 BAR CHARTS superstructure activity though started ahead of
schedule, went beyond planned schedule, thereby
3.1 A bar chart is one of the easiest, convenient and
delaying the start of the roofing activity.
mostwidelyusedmeansofgraphical display ofproject
activities onatime scale. Abarchart canbeusedboth 3.6 The value of barchart can befurther enhanced by
for displaying the plan and status report to track and quanti~”ing the total work for an activity and also
monitor progress and provide important feed back to allocating appropriate quantities on the bar for each
the team members for appropriate action. It isa two time unit. This quantity could be interms of physical
dimensional representation showing the various parameters likeasshown inFig.2or infinancial terms
activities on the vertical axis and their time on the asshown inFig. 3.
horizontal axis. 1S14580(Part I) mayalso%ereferred
3.7 Incorporating the quantity of each activity, in
for guidance ingraphical representation pertaining to
relevant measurement units, with their planned/actual
typical bar charts.
periodic break-ups under or over the respective bars
3.2 Typically abar chart isdrawn onasingle sheet so canfurther enhance the usefulness ofabar chart. This
that the entire project and the accompanying set of has been shown in Fig. 2, which depicts physical
activities including the project goal can be seen at a progress quantified bar chart. Figure 2 is also called
glance. Abar chart for anentire project, groups many themilestone barchart (see3). Depiction ofmilestones
I
.
REVIEW POINT
Months
SL TIME + Period I
No.
REMARKS
ACTIVITY $ JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY
1 EXCAVATION
2 FOUNDATION t I
3 SUPERSTRUCTURE I I
4 ROOFING I
5 PLASTERING
N
6 FLOORING I I
7 DOORh/VINDOW/ I

SERVICE

I I
8 FINISHING
LEGEND:- — ACTUALSTARTANDFINISHOFTHEACTIVITY.
U SCHEDULEDSTARTANDSCHEDULEDFINISHOFTHEACTIVIm.
FIG. 1 BARCHARTFORCONSTRUCTIONOFAHOUSESHOWING STATUS—
PLANNED versus ACTUALCOMPLETIONTIME ATTHEREVIEWPOINT
REVIEW POINT
Period I Months
g-fJ UNITOF JANUARY FEBRuARY M~ARCH APRIL MAY JUNE JULY REMARKS
MEASUREMENT
I1 EXCAVATION 500 ~3 *
r w
I I
100 4
I , , 1 1
70
3 SUPERSTRUCTURE 300 ~3 f% 175 11
I
90 160
4 ROOFING 250 ~2 1’100 ,
I5 I Plastering 1350 I I I I I I I I
I I
6 FLOORiNG 300
w El=== 1 I 1 1 t I I I1
4.0 Rs.Lakhs I I I I I
Y
I8 I FINISHING 1.5d Rs.Lakhs I
LEGEND:\- ! ACTUMQUANTOITFYWORK.

u PLANNEQCUIANTIWOFWORK.
V MILESTONE
FIG. 2 MILESTONEBARCHARTFORCONSTRUCTIONOFAHOUSESHOWINGACTIVITY-WISE
PLANNEDversus ACTUALQUANTITIESCOMPLETEDATTHEREVIEWPOINT
REVIEW POINT
SL !3m. I Months
No<
BUDGETED REMARKS
~
ACTIVITY~ COST(Rs.Lakhs~ JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY
1 EXCAVATION 0.40 0.4J
2 FOUNDATION 1.60 I::; $%
1.0 I
3
SUPERSTRUCTURE 4“0 ‘1::
2.0 3.0 1r
4 ROOFING
5.0 t‘ 1.6
5 PLASTERING 1.50 1.50
Y
6 FLOORING 2.00 I 1.20 0.8
7 DOOIVWINDOW/ 4.00 I 1.0 3.0
SERVICE
6 FINISHING 1.50 \0.1 1.0 0.4

1

TOTAL 20.0 ACTUAL 1.30 3.70 3.00 3.00 3.8d 4.60 0.40
8UbGETED 1.80 3.50 2.70 3.20
LEGEND:-1 [ ACTUACLOST.
L I BUDGETEmD=
FIG. 3 BAR CHARTFORCONSTRUCTIONOFAHOUSESHOWINGACTIVITY-WISE
BUDGETEDANDACTUALCOST BOOKED
1S14580(Part 2): 2006
on bar charts greatly enhances their usefulness, since milestone may also indicate the percent progress of
theimplicationsofanyslippageintheiraccomplishment project achieved on completion of the milestone.
could leadtodelay inproject completion. They should Affixing the symbol atthe actual row likewise shows
bespecifiedclearly and refer to completion ofdetlned the actual date ofaccomplishment ofa milestone. For
activitiesormajor deliverables. milestones yet to be accomplished, the anticipated
completion date wilI be shown as hollow inverted
3.8 The health of aproject can begauged bytracking
triangle onthe dotted line.
expected changes inthe dates on which the milestone
events are expected to occur. Appropriate corrective 4.3.2 Forexample inFig.4whichshowsthemilestone
measures could then be taken to control the slippage, chart for a small project involving placement of
ifany. purchase order. The issueof order isscheduled inthe
month of July. This means that if the output of the
3.9 Figure 3 showing financial progress, presents a
group ismeasured interms of the issue of this order,
slightlydifferentversion ofthesamebarchart,inwhich
the measurable output would come only after 6
theactivitieshavebeenevaluated aspertheir budgeted
months. Now ifthe milestones involved inthis work
costprovisions fortheplanned schedule andtheactual
are scheduled asshown and ifthe percentage of total
cost booked for the part executed. The periodic
work involved upto a miIestone can be settled in
(monthly inthis case) summations inthe bottom row
advance then on achievement ofamilestone itcan be
ofthe forecast provisions and the actual cost incurred
assumed as if that fraction of the work has been
during -execution reflect the overall picture of the
completed.
performance oftheproject infinancial terms.Areview
4.3.3 Figure 4 shows the milestones completed as on
of the referred project as at end of April indicates
end March, which isthe review point. The requisition
achieved progress of 1.30Iakhs,3.70 lakhs,3.00 Iakhs
foritemhasbeen received inmiddleJanuaryasagainst
and 3.00 lakhs against corresponding planned targets
target ofbeginning ofJanuary. Similarly receiptofbid
ofRs.1.60Iakhs,3.50 Iakhs,2.70 lakhsand3.20 Iakhs
has taken place in March as against schedule of
forthemonths ofJanuary, February, March andApril
February. Asper this milestone chart, byend of April
respectively.
‘recommendation to client’ milestone equivalent to
3.10 A limitation of bar.charts is that they do not about 85 percent of the work should have been
contain dependency relationships. For small projects, completed, As against this only ‘receipt of bid’
thesecan be visualized but for bigger projects itmay milestoneequivalent to 15percentoftheworkhasbeen
notbe so. completed. The projected completion date of the
project gets shifted to August end.
4 MILESTONE CHART
4.3.4 A milestone by definition is an event which
4.1 Incaseofbarchartstheassu m ption isthatphysical enables usto know when something should occur, but
progress is only resource depend e nt. But in actual notwhatshould bedone to make itoccur. Forthetotal
practice, the physical progress isnot always resource
project the milestone chart can serve as a document
dependent,theremaybeother dependency constraints.
giving anoverview of the project and itsstatus atany
Milestonechartscaneliminate this shortcoming ofbar
point of time. It is mostly used for providing
chart by associating percentage progress towards the
information to senior management. Figure 5 shows a
completion of project with achievement of every
typicalmilestonechartofalonggestation periodpower
milestone.
project at the scheduling stage, wherein only major
4.2 Milestones are event of significant events of the project have been shown as milestones.
accomplishment inthe progress of the project. These The horizontal time scale is like a normal bar chart
events canbe recognized by all concerned. These are while the milestones have been listed in the column
physically verifiable and hence can form check points onthe.Ieftside.
forevaluation andreporting ofprogress. Foraproject
4.3.5 Another usefhl variation of milestone chart is
where final finished output is likely to be available
the milestone slip chart. In this; while the horizontal
onlyafter alongtime, the milestones canbetreated as
time scale is like a normal bar chart, the vertical axis
intermediate targets.
also represents time, with each line reporting a
particular reportheview date. The chart is read from
4.3 Forms of Presentation
top to+ottom and allows us to see at a glance how
4.3.”1 Instead of indicating the progress to be datesofanyspecific milestone haveslippedhecovered
achieved in the form of a bar, the milestones to be astheproject progresses. Atypical milestoneslipchart
completed are shown on the chart in Fig. 4 in the is shown in Fig. 5 where ‘the key events are the

form of an inverted triangle. The description of milestones.
5