Network Analysis

Test Your Knowledge

Quiz: Network Analysis in Oil & Gas

Instructions: Choose the best answer for each question.

1. Which of the following is NOT a benefit of using network analysis in oil and gas projects?

a) Enhanced project planning b) Improved resource allocation c) Reduced project delays d) Increased project complexity

2. What is the critical path in a network diagram?

a) The sequence of activities with the shortest duration b) The sequence of activities with the longest duration c) The sequence of activities with the most dependencies d) The sequence of activities with the least dependencies

3. Which network diagramming technique uses boxes to represent activities?

a) Activity-on-Arrow (AOA) Diagram b) Precedence Diagramming Method (PDM) c) Gantt Chart d) PERT Chart

4. What does "float" or "slack time" refer to in network analysis?

a) The time an activity can be delayed without affecting the project deadline b) The time it takes to complete an activity c) The number of resources assigned to an activity d) The cost of completing an activity

5. What is a "loop" in a network diagram, and why is it a problem?

a) A situation where two activities have the same start and finish dates b) A situation where an activity depends on itself, creating an infinite cycle c) A situation where an activity has no dependencies d) A situation where an activity has too many dependencies

Exercise: Network Analysis in Action

Scenario:

You are the project manager for the construction of a new oil well drilling platform. Your team has identified the following activities and their estimated durations:

| Activity | Description | Duration (Days) | |---|---|---| | A | Site preparation | 10 | | B | Foundation construction | 15 | | C | Platform assembly | 20 | | D | Equipment installation | 12 | | E | Rigging and testing | 8 | | F | Commissioning | 5 |

Dependencies:

• Activity B depends on Activity A
• Activity C depends on Activity B
• Activity D depends on Activity C
• Activity E depends on Activity D
• Activity F depends on Activity E

Task:

1. Create a network diagram using the Precedence Diagramming Method (PDM) to represent the project activities and their dependencies.
2. Calculate the earliest start and finish times, latest start and finish times, and float for each activity.
3. Identify the critical path and its duration.

Techniques

Chapter 1: Techniques

Network Analysis Techniques: Mapping Out Your Oil & Gas Projects

This chapter delves into the fundamental techniques employed in network analysis, outlining the methods used to construct a visual representation of project dependencies and timelines.

1.1. Activity-on-Arrow (AOA) Diagram:

• Depicts activities as arrows, with nodes representing the start and finish points.
• Suitable for large projects with complex dependencies.
• Focuses on the relationships between activities, making it easy to visualize the flow of work.
• Example: An arrow connecting "drilling" to "casing" indicates that "casing" cannot start before "drilling" is complete.

1.2. Precedence Diagramming Method (PDM):

• Uses boxes to represent activities and lines to show dependencies.
• Offers a more flexible structure than AOA, allowing for parallel activities and complex relationships.
• Focuses on individual activities and their prerequisites.
• Example: A box labelled "pipeline installation" connected by a line to "welding" indicates that welding is a prerequisite for pipeline installation.

1.3. Forward and Backward Passes:

• Forward Pass: Calculates the earliest start and finish times for each activity, beginning with the project start date and progressing through the network.
• Backward Pass: Determines the latest start and finish times for each activity, starting from the project end date and working backward.

1.4. Critical Path Analysis:

• Identifies the critical path, the sequence of activities with no available slack time.
• Any delay in these activities will directly impact the overall project completion date.
• Essential for resource allocation and prioritization.

1.5. Float/Slack Calculation:

• Remaining activities outside the critical path have float or slack time.
• This represents the amount of time an activity can be delayed without affecting the project deadline.
• Allows for flexibility in resource allocation and prioritization.

1.6. Loop Detection:

• Advanced network analysis tools can detect loops, where an activity depends on itself, creating an infinite cycle.
• This is a critical error in project planning and leads to an unsolvable schedule.

1.7. Summary:

Network analysis techniques provide a structured approach to visualizing project dependencies and identifying critical paths. This enables efficient resource allocation, minimizes delays, and optimizes project schedules for successful execution.