Network analysis:

Question 1

What is network analysis?

Answer 1

• Network analysis is a project management tool that supports the planning of complex and time-sensitive strategies
• It involves the construction of a visual model of the strategy that includes key elements
• A list of all activities required to implement the strategy
• The time (duration) that each activity will take to complete
• How each project activity depends on others

Question 2

What does network analysis show?

Answer 2

• The order in which activities must be completed
• The longest path of project activities to the full implementation of the strategy
• The earliest and latest that each project activity can start and finish without delaying completion of the strategy as a whole
• Activities within a strategy that can be carried out simultaneously are identified
• The critical project activities which, if delayed, will cause the strategy as a whole to over-run
• Those project activities where some delay is acceptable without delaying the strategy as a whole
• The shortest time possible to fully implement the strategy

Question 3

What does network analysis allow managers to do?

Answer 3

• It allows managers to identify the relationships between the activities involved and to work out the most efficient way of completing the strategy
• Resources such as raw materials and components can be ordered or hired at precisely the right time they are needed
• Working capital may be managed efficiently
• Where delays occur managers can identify the implications for the strategy’s completion and redirect resources if required

Question 4

What are the limitations of network analysis?

Answer 4

• Very lengthy or complex projects involve a very large number of activities that have numerous dependencies
• Network analysis often relies on estimates and forecasts
• Network analysis does not guarantee the success of a project
• Resources may not prove to be as flexible as hoped when managers identify float periods

Question 5

What is a node in network analysis?

Answer 5

• A node is a circle that represents a point in time where an activity is started or finished
• The node is split into three sections
• The left half of the circle is the activity number
• The top right section shows the earliest start time (EST) that an activity can begin based on the completion of the previous activity
• The bottom right section shows the latest finish time (LFT) by which the previous activity must be completed

Question 6

What are activities in network analysis?

Answer 6

• An activity is a process or task within a project that takes time
• Activities are shown on the network diagram as a line which link nodes
• A description of the activity or a letter representing the activity is usually shown above the line

Question 7

What is duration in network analysis?

Answer 7

• The duration is the length of time it takes to complete an activity
• The duration is shown as a number of time units such as hours or days below the activity line