Application Example for Evaluating Networks Considering Correlation

Abstract

Current approaches to network scheduling do not consider the correlation between activity durations. When activity durations are correlated, the variability of path and project durations may be increased. High variability in a project's duration increases the uncertainty of completing the project by a target date. The model NETCOR (NETworks under CORrelated uncertainty) has been developed to evaluate schedule networks when activity durations are correlated. The NETCOR model builds upon a factor-based procedure to indirectly elicit correlation. An activity duration model disaggregates the effect of uncertainty by factors from a duration distribution (grandparent) for each activity. Correlation is captured by a child-distribution approach that further breaks down the factor-subdistribution (parent) based on the factor conditions. This paper demonstrates the practical application of NETCOR to a current construction project. Using the same inputs, the program evaluation and review technique and several simulation analyses that do not consider correlation also are evaluated. Comparison of the results shows the significance of considering correlation in scheduling analysis.