Network analysis

Question 1

When does network analysis occur?

Answer 1

When a network diagram is used to analyse the activities involved in a project & to identify the fastest way of completing the project & to a given standard.

Question 2

To undertake the network analysis & produce a network diagram, what must managers must do?

Answer 2

• Identify all the different elements of the strategy.
• Estimate the expected length of time each element of the strategy will take to complete.
• Determine the order in which the different elements of the strategy must be completed.

Question 3

What is a network diagram?

Answer 3

A diagrammatic representation of all the activities involved in the strategy, the order they must be undertaken & the time each one is estimated to take.

Question 4

When drawing a network diagram

What is the circle called & what does it represent?

Answer 4

Node- represents the start and end of an activity.

Question 5

When drawing a network diagram

What does the straight line represent?

Answer 5

The activity itself.

Question 6

When drawing a network diagram

How is the line of an activity labelled?

Answer 6

• Above the line, the name of the activity is given.
• Below the line is the length of time the activity is expected to take ( known as the expected duration of the activity.)

Question 7

What is EST?

Answer 7

Earliest start time- the earliest time that a given activity can begin.

Question 8

What is LFT?

Answer 8

The latest finish time- the latest time a given activity can finish without delaying the project as a whole.

Question 9

What is the critical path?

Answer 9

• It shows the activities which have zero float. These activities determine the fastest a project can be completed.
• Any delay in these critical path activities causes a delay to the project as a whole.

Question 10

What is float time?

Answer 10

How long an activity can overrun without holding up the whole project.

Question 11

What is on the top right corner of the node?

Answer 11

The earliest start time

Question 12

What is on the bottom right corner of the node?

Answer 12

Latest finish time

Question 13

What are the benefits of network analysis?

Answer 13

• Must consider exactly what activities are involved in a strategy
• Can calculate the earliest time by which the strategy should be implemented
• Can identify the critical activities that must be completed in time to get the whole strategy implemented as quickly as possible
• May be able to produce items or develop products more quickly than the competition producing the business with a possible competitive advantage
• Can implement JIT ordering
• Can use network analysis as a control mechanism to review progress and assess whether the strategy is on target

Question 14

What are the limitations of network analysis?

Answer 14

• Relies on the estimates for the expected duration
• Can be made more complex by using programme evaluation and review technique (PERT) - which produces a number of network analysis based on optimistic, pessimistic and likely duration of activities
• If JIT is used then reliability of suppliers becomes an issue
• Only shows the quickest way to complete not whether the strategy is the correct one
• All strategies must be managed properly if they are to be completed on time - network analysis doesn’t guarantee this
• Managers must agree on a definition of success