UPSC MainsMANAGEMENT-PAPER-II20175 Marks
Q10.

Draw the network diagram by Arrow-On-Node (AON) method. Calculate the expected time and variance for each activity.

How to Approach

This question requires a practical application of project management principles. The approach involves first constructing the network diagram using the Arrow-On-Node (AON) method, which visually represents the project's activities and their dependencies. Then, calculate the expected time and variance for each activity, utilizing the provided data (which is missing in the question, so we will assume data for demonstration). The answer should clearly show the diagram and the calculations, demonstrating understanding of critical path method (CPM) concepts. A clear, step-by-step approach is crucial for scoring well.

Model Answer

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Introduction

Project management relies heavily on techniques to schedule, organize, and control project activities. The Critical Path Method (CPM) is a widely used technique for determining the minimum time required to complete a project. A core component of CPM is the network diagram, which visually depicts the sequence of activities and their dependencies. The Arrow-On-Node (AON) method is a common way to represent this diagram. Calculating the expected time and variance for each activity allows for probabilistic project completion time estimation and risk assessment. This answer will demonstrate the construction of an AON diagram and the subsequent calculations, assuming a hypothetical project with defined activities, durations, and dependencies.

Constructing the Network Diagram (AON Method)

The Arrow-On-Node (AON) method represents activities as arrows and nodes as events. Each arrow represents an activity, and the node signifies the start or end of an activity. Let's assume the following activities for a hypothetical project:

Activity Predecessor Expected Time (weeks) Variance (weeks2)
A - 5 1
B A 3 0.25
C A 4 0.64
D B 6 1.44
E C 7 0.81
F D, E 4 0.36

Based on this data, the AON diagram would look like this (represented textually as creating a visual diagram is not possible in this format):

Start -> A -> B -> D -> F -> End

Start -> A -> C -> E -> F -> End

Note: In a real exam setting, you would draw this diagram with nodes representing events and arrows representing activities.

Calculating Expected Time and Variance

For each activity, the expected time (TE) and variance (σ2) are calculated as follows:

  • Expected Time (TE): This is the average time an activity is expected to take. In this case, we are given the expected time directly in the table.
  • Variance (σ2): This measures the spread or uncertainty in the activity's duration. We are also given the variance directly in the table.

Let's calculate the expected time and variance for each activity based on the table above:

Activity Expected Time (TE) Variance (σ2)
A 5 1
B 3 0.25
C 4 0.64
D 6 1.44
E 7 0.81
F 4 0.36

Calculating Expected Project Completion Time

To calculate the expected project completion time, we need to identify the critical path. The critical path is the longest path through the network diagram. In our example, there are two paths:

  • Path 1: A -> B -> D -> F: 5 + 3 + 6 + 4 = 18 weeks
  • Path 2: A -> C -> E -> F: 5 + 4 + 7 + 4 = 20 weeks

Therefore, the critical path is A -> C -> E -> F, and the expected project completion time is 20 weeks.

Calculating Project Variance

The variance of the project completion time is the sum of the variances of the activities on the critical path.

Variance (Project) = Variance(A) + Variance(C) + Variance(E) + Variance(F) = 1 + 0.64 + 0.81 + 0.36 = 2.81 weeks2

The standard deviation of the project completion time is the square root of the variance: √2.81 ≈ 1.68 weeks.

Conclusion

In conclusion, the AON method provides a clear visual representation of project activities and dependencies. Calculating the expected time and variance for each activity, and subsequently for the entire project, allows for a probabilistic assessment of project completion. Identifying the critical path is crucial for effective project management, as delays on critical path activities directly impact the overall project timeline. This analysis enables proactive risk management and informed decision-making throughout the project lifecycle.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Critical Path
The longest sequence of activities in a project schedule that determines the shortest possible duration of the project. Any delay in activities on the critical path will delay the entire project.
Activity on Node (AON)
A project network diagramming technique where activities are represented by nodes (boxes) and the relationships between activities are represented by arrows connecting the nodes.

Key Statistics

According to a 2022 report by the Project Management Institute (PMI), approximately 66% of projects experience scope creep, leading to delays and cost overruns.

Source: Project Management Institute (PMI), 2022

A study by Standish Group found that only 29% of IT projects are successfully completed on time and within budget.

Source: Standish Group, Chaos Report (Knowledge cutoff 2023)

Examples

Construction of the Delhi Metro

The Delhi Metro project utilized CPM extensively to manage the complex network of civil engineering works, track progress, and minimize delays. The project involved coordinating numerous contractors and activities, making CPM essential for its successful completion.

Frequently Asked Questions

What is the difference between PERT and CPM?

PERT (Program Evaluation and Review Technique) uses probabilistic time estimates (optimistic, pessimistic, and most likely) for activities, while CPM uses deterministic (single-point) time estimates. PERT is often used for projects with high uncertainty, while CPM is suitable for projects with well-defined activities and durations.