Section 4 of 10

Networks and Activities

Networks and activities, relationships and scheduling, the critical path, and how activities generate requirements.

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A network breaks project work into activities and defines the dependencies between them. Where the WBS is a container for cost, the network is a container for schedule and execution.

Activity categories

CategoryContentCost
Internal processingWork by own staff and equipmentActivity rate times duration
External processingSubcontracted workGenerates a purchase requisition
ServiceProcured servicesService lines and entry sheets
Cost activityCost onlyDirect cost posting

External processing activities generate purchase requisitions automatically, which is what ties scheduling to procurement.

Relationships

Four kinds
KindMeaningExample
FS (finish–start)Start after the predecessor finishesErect steel after foundations are complete
SS (start–start)Start when the predecessor startsBegin inspection alongside construction
FF (finish–finish)Finish when the predecessor finishesAlign completion of work and inspection
SF (start–finish)Finish when the predecessor startsRare; used at handovers

Scheduling and the critical path

Dates produced by scheduling
DateMeaning
Earliest startThe soonest the activity can begin
Earliest finishEarliest start plus duration
Latest startThe latest it can begin without delaying the project
Latest finishThe latest it can end without delaying the project
FloatLatest start minus earliest start

The chain of activities with zero float is the critical path: a day lost there is a day lost on the project.

Milestones

What milestones are used for
UseContent
Progress trackingMaking key achievements visible
Milestone billingBilling the customer on achievement, via SD
TriggeringReleasing other activities automatically
Progress analysisA basis for percentage of completion

Milestone billing is common on large contracts — thirty per cent on design completion, forty on manufacture, thirty on handover — expressed through milestones and an SD billing plan, with the billing block released as each is achieved.

📖 Unfamiliar term? Look it up in the SAP glossary.

Check your understanding

Test what you just read.

Quiz 1

What is the basic component of a network?

Quiz 2

Which activity type involves external procurement?

Quiz 3

Network relationships can identify the critical path across activities.

Quiz 4

Which activity type uses internal company resources?

Quiz 5

Cost Activities involve actual physical work.

Quiz 6

What is set on activities to manage key project checkpoints?