Chapter 55- Critical Path Analysis

Question 1

Efficiency

Answer 1

Producing a network diagram can help business to operate efficiently

– for example, a network shows tasks that can be carried out at the same time. This can help save production or installation time and the use of recourses.

Highlighting exactly which delays are crucial to the timing of the project and can help businesses meet these deadlines.

Question 2

Decision making

Answer 2

The use of business models, such as network analysis, is argued to be more scientific and objective of making decisions.

It is suggested that estimating the length of time of a project will take based on past information and an analysis of the tasks involved should lead to deadlines being met more effectively.

Question 3

Time-based management

Answer 3

Some businesses operate time-based management systems – these are techniques to minimise the length of time spent in business processes.

Question 4

Working capital control

Answer 4

Identifying when recourses will be required in projects can help a business to manage its working capital cycle

– network diagrams allow a business to identify exactly when materials and equipment will be used in a project

Question 5

Networks

Answer 5

Many of the operations carried out by the businesses are made up of a number of tasks.

The operation is only complete when all of the tasks have taken place – these tasks must be carried out in order for the operation to take place.

Question 6

Network analysis

Answer 6

• Businesses often have to complete large projects, which involve a series of complicated tasks or activities which must be carried out in a certain order. The use of networks helps a business to manage these projects effectively .
• It is vital that a business knows the minimum length of time a project will take to complete. It is also important to know whether a delay in completing individual tasks in an operation will delay the whole project.
• Network analysis allows a business to find the sequence of asks which are critical to the project and which, if delayed will cause delays the entire operation.

Question 7

Critical Path

Answer 7

The tasks involved in a project which, if delayed, could delay the entire project

Question 8

Free float

Answer 8

The time by which a task can be delayed without affecting the following task

Question 9

Network diagram

Answer 9

A chart showing the order of the tasks involved in completing a project

Question 10

Earliest start time

Answer 10

largest number coming into node

Question 11

Latest finish time

Answer 11

Smallest number coming into node (backwards)

Question 12

Limitations of CPA-

Answer 12

• Information used is estimates – for example, management might have estimated times based on past performance , but a new project could have special requirements that take longer
• Changes occur when things change during the life of the project – for example construction companies may need contingency plans to deal with unforeseen circumstances, such as bad weather delaying operations.
• Can become too complex - such as with big projects hundreds of thousands of tasks may have to be taken into account
• Doesn’t take into account travel time etc.