Dummy Activity A dummy activity is a simulated activity of sorts, one that is of a zero duration and is created for the

sole purpose of demonstrating a specific relationship and path of action on the arrow diagramming method. Dummy activities are a useful tool to implement when the specific logical relationship between two particular activities on the arrow diagramming method cannot specifically be linked or conceptualized through simple use of arrows going from one activity to another. In this case, the creation of a dummy activity, which serves essentially as a form of a placeholder, can provide exceedingly valuable. Dummy activities should in no cases be allocated any duration of time in the planning and/or scheduling or project activities and components. When they are illustrated in a graphical format, dummy activities should be represented by the user of a dashed line with an arrow head on one end, and may in some cases be represented by a unique color. What Is a Slack or a Float? In project management, the terms slack and float describe the length of time that an activity can be delayed without delaying the finish date of a subsequent activity, or the finish date of the entire project. The terms are most commonly applied to a network analysis technique, known as the Critical Path Method, which was developed by the DuPont Corporation in 1957. 1. Slack versus Float o The terms "slack" and "float" are often used interchangeably. However, the essential difference between the terms is that slack is typically associated with inactivity, while float is associated with activity. Slack time allows an activity to start later than originally planned, while float time allows an activity to take longer than originally planned. Critical Path Method
o

The Critical Path Method depicts a project as a network diagram, in which each node on the network represents an activity. The nodes are joined together by lines, or arcs, which represent the events that mark the beginning and end of each activity. The critical path is the longest path through the network diagram and determines the shortest time required to finish the project. By definition, the critical path has the least slack or float time of any path through the network diagram. Ideally, none of the activities in the critical path should have slack or float time, because any delay in the critical path delays project completion.

WHY FLOAT IS IMPORTANT? If every activity had a fixed start date and a fixed end date, it would be very difficult to complete the project in time.

Problems do occur such as shortage of funds or workers or machines. If there are floats, the manager can decide which activity to give priority and which one to re-schedule. In this way, it is possible not to let the project suffer because of shortages. Some activities can be slipped or splitted for a good cause. Floats in a Network This is in continuation of a hub: Case Study: PERT/CPM calculating floats. Some terms used in the said hub would be repeated for a complete understanding of the concepts and techniques. A float is a slack or cushion or flexibility or margin for delay. It shows time available for delaying an activity without delaying the Project. It would not result in either increase in duration or cost of the project. For calculating floats, there are different Methods depending upon format of the Network used. There are two types of Net Works: Activity-On-Node (AON) and Activity-on-Arrow (AOA). Results are same in both cases. In this hub, only network based on AON would be used. THE QUESTION

To calculate float, an example of Desert Hospital is being given. It has thirteen activities which are shown along their duration in weeks and precedence. TYPES OF FLOATS Floats or slacks are only available in non-critical activities shown linked by blue lines. To start with two types of floats would be calculated: (i) Free Float (FF) and (ii) Total Float (TF). FREE FLOAT (FF)

The FF indicates maximum delay from early start of an activity without delaying the earliest start of any of its immediate successor activities. The formula is: FF = ES of immediate succeeding Node (or activity) minus ES start of existing Node minus its duration. It can be shortened to ES of immediate succeeding Node minus EF of the exiting Node. If there are more than one succeeding Nodes, minimum would be the Free Float of the existing Node. In the side sheet, F has only one succeeding Node, H. Hence ES of H, 7 minus EF of F would be equal to Zero. E is succeeded by two Nodes i.e. J & K. Therefore, FF would be minimum of the two as shown below: FF for Node E:

ES of J EF of E = 10 7 = 3 or ES of K EF of E = 10 7 = 3, Therefore, FF for E = 3

Likewise FF for Node H would be:

ES of J EF of H = 10 10 = 0 or ES of K EF of H = 10 10 = 0, Therefore, FF for H = 0

TOTAL FLOAT (TF) TF refers to maxim flexibility or margin available for delaying an activity. Here an activity can be started as early as possible and finished as late as possible. Therefore it would provide more flexibility. Its calculation is easy. For a Node touched by only one tail, it would be difference between EF and LF of the same Node. TF for E:

LF of E EF of E = 12 7 = 5

TF for H:

LF of H EF of H = 12 10 = 2 or

MORE FLOATS Three more floats would be discussed now: 1. Independent Float

2. Interference Float 3. Safety Float INDEPENDENT FLOAT

Shows the time available even if an activity has a Late Start and Early Finish. the delay possible for an activity if all preceding activities start as late as possible whilst all subsequent activities start at their earliest time It is most adverse type of float and often results in a negative figure.

In case of Node F, its EF = 7, while its LS=5 and duration is 4. So Independent Float would be 7 - 5 -4 = -2 or Zero which is higher. In other words, if this float is in negative, it is to be shown as zero float or no float. INTERFERENCE FLOAT There are two versions of Interference Float. In the first version, it is like manipulation and it is calculated as Interference Float = TF Independent Float. While Independent Float is available in all cases, Total Float is available only if an activity is started at its earliest and finished at the latest time. The difference between the two shows the extent to which one can avail margin or flexibility. Second version is the reduction, total float can bring in the next succeeding activities and is represented by TF FF. As per first version, the Inference Float for activities 'F' would be TF - Ind. Float or 2-0 =0. In the second version, it would remain 2 (TF - FF or 2 - 0 = 2) as incidentally both Free Float and Independent Float are zero. SAFETY FLOAT (SF) The SF of an activity is the leeway for scheduling, all its predecessors without affecting its self. It is calculated as:TF + Int F = FF + SF. One can find out SF, when all other relevant floats are available. (This float is not so popular. It was introduced by Thomas W in his article "Four Floats Measures for critical Path Scheduling." CPM PERT AON AOA Critical Critical Path Method Project Evaluation & Review Technique Activity On Node Activity On Arrow Activities having no flexibility or margin for delay

CPM Activities Dummy Activities Total Float Independent Float Free Float

Critical Path Method

Not a real activity but only a link Maximum cushion based on early start and late finish Minimum float available in any case Normal float based on early start and early finish

The Critical Path Method (CPM) is one of several related techniques for doing project planning. CPM is for projects that are made up of a number of individual "activities." If some of the activities require other activities to finish before they can start, then the project becomes a complex web of activities. CPM can help you figure out:

how long your complex project will take to complete which activities are "critical," meaning that they have to be done on time or else the whole project will take longer

If you put in information about the cost of each activity, and how much it costs to speed up each activity, CPM can help you figure out:

whether you should try to speed up the project, and, if so, what is the least costly way to speed up the project.

BASICALLY, CPM (CRITICAL PATH METHOD) AND PERT (PROGRAMME EVALUATION REVIEW TECHNIQUE) ARE PROJECT MANAGEMENT TECHNIQUES, WHICH HAVE BEEN CREATED OUT OF THE NEED OF WESTERN INDUSTRIAL AND MILITARY ESTABLISHMENTS TO PLAN, SCHEDULE AND CONTROL COMPLEX PROJECTS. Simulation starts when all else fails, i.e., it is a "Method of Last Resort". Simulation is a technique of problem solving based upon experimentation performed on a model of real world situation.

Simulation is a numerical technique for conducting experiments on a digital computer, which involves certain types of mathematical and logical relationships necessary to describe the behaviour and structure of a complex, real world system over extended period of time.

Actual observation of a system may be too expensive. The problem is too big or intricate to handle with linear, dynamic, and standard probabilistic models. The standard sensitivity analysis is too clumsy and computationally burdensome for observing the actual environment. It is not possible to develop a mathematical model. Even though a mathematical model can be formulated, a straight forward analytical solution may not be available. It is not possible to perform validating experiments on mathematical models describing the system. There may not be sufficient time to allow the system to operate extensively.

Advantages of Simulation One of the primary advantages of simulators is that they are able to provide users with practical feedback when designing real world systems. This allows the designer to determine the correctness and efficiency of a design before the system is actually constructed. Consequently, the user may explore the merits of alternative designs without actually physically building the systems. By investigating the effects of specific design decisions during the design phase rather than the construction phase, the overall cost of building the system diminishes significantly. Another benefit of simulators is that they permit system designers to study a problem at several different levels of abstraction. By approaching a system at a higher level of abstraction, the designer is better able to understand the behaviours and interactions of all the high level components within the system and is therefore better equipped to counteract the complexity of the overall system. This complexity may simply overwhelm the designer if the problem had been approached from a lower level. As the designer better understands the operation of the higher level components through the use of the simulator, the lower level components may then be designed and subsequently simulated for verification and performance evaluation. The entire system may be built based upon this ``top-down'' technique. This approach is often referred to as hierarchical decomposition [32] and is essential in any design tool and simulator which deals with the construction of complex systems Thirdly, simulators can be used as an effective means for teaching or demonstrating concepts to students. This is particularly true of simulators that make intelligent use of computer graphics and animation. Such simulators dynamically show the behaviour and relationship of all the simulated system's components, thereby providing the user with a meaningful understanding of the system's nature.

Inventory related costs Inventory related costs are classified as

Purchase (or production) cost. It is the cost at which an item is purchased, or if an item is produced, it is the direct manufacturing cost. In many practical situations, the unit purchase price depends on the quantity purchased so the purchase price is of special interest when large quantities are bought or when large production runs may result in a decrease in the production cost. Ordering (or replenishment or set up) cost. The cost incurred in replenishing the inventory is known as ordering cost. It includes all the costs relating to administration (such as salaries of the persons working for purchasing, telephone calls, computer costs, postage, etc.), transportation, receiving and inspection of goods, processing payments, etc. If a firm produces its own goods instead of purchasing the same from an outside source, then it is the cost of resetting the equipment for production. This cost is expressed as the cost per order or per set up. It is denoted by Co. Carrying (or holding) cost. The cost associated with maintaining the inventory level is known as holding cost. It is directly proportional to the quantity to be kept in stock and the time for which an item is held in stock. It includes handling cost, maintenance cost, depreciation, insurance, warehouse rent, taxes, etc. This cost may be expressed either as per unit of item held per unit of time or as a percentage of average rupee value of inventory held. It is denoted by Ch. In several practical situations, the carrying cost might not be directly proportional to the inventory level. For example, the rent of a warehouse will not change day to day by the change in inventory level.

Shortage (or stock out) cost. It is the cost, which arises due to running out of stock (i.e., when an item can not be supplied on the customer's demand). It includes the cost of production stoppage, loss of goodwill, loss of profitability, special orders at higher price, overtime/idle time payments, expediting, loss of opportunity to sell, etc. It is denoted by Cs.

Hungarian Method It is an efficient method for solving assignment problems . This method is based on the following principle:

If a constant is added to, or subtracted from, every element of a row and/or a column of the given cost matrix of an assignment problem, the resulting assignment problem has the same optimal solution as the original problem.

Algorithm The objective of this section is to examine a computational method - an algorithm - for deriving solutions to the assignment problems. The following steps summarize the approach: Steps 1. Identify the minimum element in each row and subtract it from every element of that row. 2. Identify the minimum element in each column and subtract it from every element of that column. 3. Make the assignments for the reduced matrix obtained from steps 1 and 2 in the following way: i. For each row or column with a single zero value cell that has not be assigned or eliminated, box that zero value as an assigned cell. ii. For every zero that becomes assigned, cross out (X) all other zeros in the same row and the same column. iii. If for a row and a column, there are two or more zeros and one cannot be chosen by inspection, then you are at liberty to choose the cell arbitrarily for assignment. iv. The above process may be continued until every zero cell is either assigned or crossed (X). 4. An optimal assignment is found, if the number of assigned cells equals the number of rows (and columns). In case you have chosen a zero cell arbitrarily, there may be alternate optimal solutions. If no optimal solution is found, go to step 5. 5. Draw the minimum number of vertical and horizontal lines necessary to cover all the zeros in the reduced matrix obtained from step 3 by adopting the following procedure: i. Mark all the rows that do not have assignments. ii. Mark all the columns (not already marked) which have zeros in the marked rows. iii. Mark all the rows (not already marked) that have assignments in marked columns. iv. Repeat steps 5 (i) to (iii) until no more rows or columns can be marked. v. Draw straight lines through all unmarked rows and marked columns. You can also draw the minimum number of lines by inspection. 6. Select the smallest element from all the uncovered elements. Subtract this smallest element from all the uncovered elements and add it to the elements, which lie at the intersection of two lines. Thus, we obtain another reduced matrix for fresh assignment. 7. Go to step 3 and repeat the procedure until you arrive at an optimal assignment. For the time being we assume that number of jobs is equal to number of machines or persons. Later in the chapter, we will remove this restrictive assumption and consider a special case where no. of facilities and tasks are not equal.

Transportation Problem Modified Distribution Method (MODI) or (u - v) method The modified distribution method, also known as MODI method or (u - v) method provides a minimum cost solution to the transportation problem. In the stepping stone method, we have to draw as many closed paths as equal to the unoccupied cells for their evaluation. To the contrary, in MODI method, only closed path for the unoccupied cell with highest opportunity cost is drawn. MODI method is an improvement over stepping stone method.

The method, in outline, is : Steps 1. Determine an initial basic feasible solution using any one of the three methods given below:

North West Corner Rule Matrix Minimum Method Vogel Approximation Method

2. Determine the values of dual variables, ui and vj, using ui + vj = cij 3. Compute the opportunity cost using cij ( ui + vj ). 4. Check the sign of each opportunity cost. If the opportunity costs of all the unoccupied cells are either positive or zero, the given solution is the optimal solution. On the other hand, if one or more unoccupied cell has negative opportunity cost, the given solution is not an optimal solution and further savings in transportation cost are possible. 5. Select the unoccupied cell with the smallest negative opportunity cost as the cell to be included in the next solution. 6. Draw a closed path or loop for the unoccupied cell selected in the previous step. Please note that the right angle turn in this path is permitted only at occupied cells and at the original unoccupied cell. 7. Assign alternate plus and minus signs at the unoccupied cells on the corner points of the closed path with a plus sign at the cell being evaluated.

8. Determine the maximum number of units that should be shipped to this unoccupied cell. The smallest value with a negative position on the closed path indicates the number of units that can be shipped to the entering cell. Now, add this quantity to all the cells on the corner points of the closed path marked with plus signs, and subtract it from those cells marked with minus signs. In this way, an unoccupied cell becomes an occupied cell UNBALANCED TRANSPORTATION PROBLEMS IN EITHER CASE, SHIPPING COST COEFFICIENTS OF ZERO ARE ASSIGNED TO EACH DUMMY LOCATION OR ROUTE AS NO GOODS WILL ACTUALLY BE SHIPPED ANY UNITS ASSIGNED TO A DUMMY DESTINATION REPRESENT EXCESS CAPACITY ANY UNITS ASSIGNED TO A DUMMY SOURCE REPRESENT UNMET DEMAND IN REAL-LIFE PROBLEMS, TOTAL DEMAND IS FREQUENTLY NOT EQUAL TO TOTAL SUPPLY THESE UNBALANCED PROBLEMS CAN BE HANDLED EASILY BY INTRODUCING DUMMY SOURCES OR DUMMY DESTINATIONS IF TOTAL SUPPLY IS GREATER THAN TOTAL DEMAND, A DUMMY DESTINATION (WAREHOUSE), WITH DEMAND EXACTLY EQUAL TO THE SURPLUS, IS CREATED IF TOTAL DEMAND IS GREATER THAN TOTAL SUPPLY, WE INTRODUCE A DUMMY SOURCE (FACTORY) WITH A SUPPLY EQUAL TO THE EXCESS OF DEMAND OVER SUPPLY

UNBALANCED ASSIGNMENT PROBLEMS OFTEN THE NUMBER OF PEOPLE OR OBJECTS TO BE ASSIGNED DOES NOT EQUAL THE NUMBER OF TASKS OR CLIENTS OR MACHINES LISTED IN THE COLUMNS, AND THE PROBLEM IS UNBALANCED WHEN THIS OCCURS, AND THERE ARE MORE ROWS THAN COLUMNS, SIMPLY ADD A DUMMY COLUMN OR TASK IF THE NUMBER OF TASKS EXCEEDS THE NUMBER OF PEOPLE AVAILABLE, WE ADD A DUMMY ROW

 SINCE THE DUMMY TASK OR PERSON IS NONEXISTENT, WE ENTER ZEROS IN ITS ROW OR COLUMN AS THE COST OR TIME ESTIMATE THE FIX-IT SHOP HAS ANOTHER WORKER AVAILABLE THE SHOP OWNER STILL HAS THE SAME BASIC PROBLEM OF ASSIGNING WORKERS TO PROJECTS BUT THE PROBLEM NOW NEEDS A DUMMY COLUMN TO BALANCE THE FOUR WORKERS AND THREE PROJECTS

Multiple Optimal Solutions Sometimes, it is possible to cross out all the zeros in the reduced matrix in two or more ways. If you can choose a zero cell arbitrarily, then there will be multiple optimum solutions with the same total pay-off for assignments made. In such a case, the management may select that set of optimal assignments, which is more suited to their requirement.