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Critical Path Analysis

Critical path analysis (CPA) involves creating a network diagram to plan and coordinate complex projects. The key aims of CPA are to identify critical activities that determine the total project duration, potential bottlenecks, and resource needs. CPA allows managers to calculate completion times, monitor progress, prioritize resources, and evaluate options like crashing activities to reduce timelines. The critical path comprises the longest chain of dependent activities, which must not be delayed to avoid pushing out the overall deadline. CPA provides benefits like improved planning, coordination, efficiency, and progress monitoring for complex projects.

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0% found this document useful (0 votes)
297 views12 pages

Critical Path Analysis

Critical path analysis (CPA) involves creating a network diagram to plan and coordinate complex projects. The key aims of CPA are to identify critical activities that determine the total project duration, potential bottlenecks, and resource needs. CPA allows managers to calculate completion times, monitor progress, prioritize resources, and evaluate options like crashing activities to reduce timelines. The critical path comprises the longest chain of dependent activities, which must not be delayed to avoid pushing out the overall deadline. CPA provides benefits like improved planning, coordination, efficiency, and progress monitoring for complex projects.

Uploaded by

fatimalakhani
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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CRITICAL PATH ANALYSIS (NETWORK

ANALYSIS)

IB Operations Management
The Aims of Network Analysis are to :

 facilitate the planning and coordination of large projects


 identify critical activities that determine the total duration of the
project
 identify activities that cause, or or likely to cause, bottlenecks and
delays
 determine when resources and components are needed
 plan the use of resources
 reduce and eliminate idleness
 identify important linkages and sequential, dependant relationships
 reduce costs by reducing waste
 facilitate the taking of corrective action when performance falls below
that specified in the plan
Applications of Network Analysis

Network analysis can be used when planning and controlling large


projects in fields such as construction, research and development and
computerisation. By planning this way:

 completion times can be calculated


 completion times for intermediate activities can be monitored
 resources can be prioritised
 costs can be calculated

In addition, the possibilities and costs of crashing an activity can be


evaluated.

Crashing is when you shorten the time taken to complete certain jobs
on he critical path by assigning extra labour and /or equipment.
Earliest start time (EST) DRAWING A
of subsequent
Node number activities NETWORK DIAGRAM

Activity
Latest finish time
(LFT) of preceding
activities

Node (circles) - to show start and end of activities, and also carry
information about earliest start times (EST) and latest finish times (LFT)
Arrows – to show the flow of activities
Hatching ( // ) – drawn on the arrows of those activities on the critical path
Rules for Drawing Networks

 The network must start and end on a single node

 No lines should cross each other

 When drawing an activity, do not add the end node straight away;
wait until you have looked to see which activity follows

 There must be no lines that are not activities

 Draw large circles for nodes, and short lines for activities (figures
need to be inserted within the node)
A B 3
A B 1 2 C
1 2 3
4
Activity A has to be completed Neither B nor C can be started
before B can be started until A has been completed, B and
C can be carried out concurrently

A
1 C
1 A C 4
3 4 3
B B
D
2 2 5

A and B are both independent of A and B are independent of each other


each other but both must be but both must be completed before either
completed before C can start C or D is started. C and D can be carried
out concurrently
EXAMPLE OF A NETWORK FOR A FLAT PACK (IKEA)
Activity Preceded by Estimated duration (mins)
A - 5
B A 3
C - 12
D B,C 4

A fitted to B Screwed to C ABC slotted into DE


A B D
1 2 3 // 4
5 mins 3 mins 4 mins

D & E glued together


C
//
12 mins Critical path = C, D
CALCULATION OF A NETWORK DIAGRAM
Activity Preceded by Duration
A - 6
B - 10
C B 4
D B 8
E A, C 2

1 A E
3 4
6 2
C
4
B D
2
10 8
CALCULATION OF EST AND LFT

EST – left to right – take the highest number

LFT – right to left – take the lowest number

0 14 18
1 A E
3 4
0 16 18
6 2
C
4
10
B D
2
10
10 8
INDICATING THE CRITICAL PATH
The critical path comprises the activities which take the longest to complete. They
determine the length of the whole project. These are activities which must not be
delayed by even one day.
To identify the critical path, the two key points are:
 it will be on activities where the nodes show the EST and LFT to be the same
 it is the longest path through the nodes

0 14 18
1 A E
3 4
0 16 18
6 2
C
4
10
B D
// 2 //
10
10 8

The critical path will be B, D


FLOAT TIME

‘Float’ is the spare time available for any activity.


AQA specification states knowledge of ‘TOTAL FLOAT’

Total float measures the spare time available so that there is no delay
to the project as a whole.

CALCULATION
LFT - Duration - EST = Total Float
(This activity) (this activity)

A 16 - 6 - 0 = 10 days
B 10 - 10 - 0 = 0 days
C 16 - 4 - 10 = 2 days
D 18 - 8 - 10 = 0 days
E 18 - 2 - 14 = 2 days
Advantages of CPA

 Time between tasks is reduced to produce a smoothly run, coordinated


project – links to time based management

 Improved decision making - construction of the network forces


managers to plan forward and to consider all relevant tasks

 By readjusting float the amount of resources can be minimised, thus


improving efficiency

 Improved working capital control as stock can be ordered on JIT basis

 The network acts as a control technique to check the progress of the


project, which is particularly important if there are penalty clauses for
late completion, ie motorway construction

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