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First name ??? ist auf Englisch. Critical Path Analysis.

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Presentation on theme: "First name ??? ist auf Englisch. Critical Path Analysis."— Presentation transcript:

1 First name ??? ist auf Englisch

2 Critical Path Analysis

3 Breakfast time When cooking bacon and eggs, put the following activities in broadly the right order (A – G) Warm the plates (4 mins)Grill the bacon (5 mins) Fry eggs (2 mins)Serve breakfast (1 min) Heat oil in frying pan (1 min)Buy the bacon and eggs (12 mins) Heat grill (3 mins) State which ones have to be preceded directly by one or more other activities, by filling in the table. Safety first so have to be in the house when grill etc are on: ACTIVITYDURATIONPRECEDED BY A B C D E F G How long does it take in total? - A B C C,D,E 12 3 1 4 5 2 1

4 Bacon and eggs

5 Chocolates anyone? When Cadbury’s decided to introduce Flake Bites, to compete with Maltesers and KitKat, Management wanted to know how long it would take to reach full scale production. Machinery ordering and delivery will take 9 weeks, installation takes 5 weeks, staff recruitment takes 4 weeks, training 2 weeks, suppliers need 4 weeks’ lead time, and trial production requires 2 weeks

6 Preparing a network diagram ActivityPreceded byDuration A B C D E F Machinery ordering and delivery will take 9 weeks, installation takes 5 weeks, staff recruitment takes 4 weeks, training 2 weeks, suppliers need 4 weeks’ lead time, and trial production requires 2 weeks

7 Network for Flake Bites 1 1 Node A node represents: The start of an activity The end of an activity Both the start and end of an activity. All networks start and end with a node The number represents which step it is. Number 1 means the first step Activity An activity represents a task that is undertaken, eg staff recruitment 1 1 1 1 1 1 A 9

8 EST - Earliest start time EST is the earliest time an activity can start. We write this in the top right box in the node: The EST for the first activity is now! ie 0 We start from the left and fill in, remembering we cannot start an activity until all the preceding activities have finished, which means the EST is the longest route to a node. Calculating EST allows a firm to organise when it needs resources, and gives the earliest completion date for the whole project. So for example, the earliest we can start on D (installation) is 9 weeks. This means the earliest time Cadbury’s needs its engineers on site to install the machines is 9 weeks after the project starts Earliest Start Time 1 1 1 1 1 1 A 9 B D 5 4 F C E 2 4 2 0 9

9 LFT – Latest Finish Time LFT shows the time by which an activity must be completed. We write this in the bottom right box in the node; it refers to the preceding activity We start from the right and work backwards. The final node will have a LFT of the time a project takes, which will be the EST, in this case 16 weeks. Working back gives 14 weeks as the latest all the preceding activities (B,D and E) have to be finished by. Calculating the LFT provides the deadlines that must be met for the project to be completed on time. It also helps to identify the activities which have slack, or ‘float time’, and identifies the critical path Latest Finish Time 1 1 1 1 1 1 A 9 B D 5 4 F C E 2 4 2 0 9 14164

10 Float time 1 1 1 1 1 1 A 9 B D 5 4 F C E 2 4 2 0 9 14164 14120 9 Float Time The float time shows by how much time an activity may overrun (be delayed) before is has an effect on either the next activity, or on the project as a whole. It is calculated by LFT of the activity minus duration of the activity minus the EST of the activity. Take Activity C, which is lead time for suppliers. LFT of 14 weeks minus 4 weeks for the activity minus EST of 0 means there is 10 weeks float, or slack Management can decide to get a job done straightaway and then switch staff to other activities, or take longer, or in this case order at 10 weeks for Just in Time delivery

11 Critical path 1 1 1 1 1 1 A 9 B D 5 4 F C E 2 4 2 0 9 14164 14120 9 Critical Path The critical path comprises those activities that take longest to complete, and so which determine the length of the whole project. In this case it is A, D and F, and is indicated by A, D and F are the critical activities which must not be delayed by even 1 day – because if they are, the whole project is delayed. Identifying the critical path allows managers to apply management by exception, which means management time is spent supervising the critical activities. If a manager sees an activity might be delayed, the manager can consider moving resources (labour or machinery) from a non-critical task

12 Typical business uses of CPA Planning a new product launch – To minimise time-to-market Planning a business start-up In construction work, eg housebuilding, constructing a factory – More complex like the Olympics will use some form of CPA, but perhaps not like this! In fact undertaking any project

13 Advantages of using CPA 1.It requires careful planning of the order in which events need to occur, and how long they will take. This should make it easier to complete a project since the planning means the project has been carefully thought through first. 2.By identifying events that can be carried out simultaneously, it shortens the length of time taken to complete a project. Very important in the modern business focus on time-based management 3.The resources needed for each activity can be ordered or hired or transferred no earlier than needed, saving money – do not have stock taking up room in a warehouse, new workers sitting around drinking tea waiting to start work etc. 4.If the completion of an activity is delayed for some reason, the network diagram is a good starting point for working out the implications and deciding what to do

14 Disadvantages of using CPA A drawing for a large project (such as the Olympics) becomes so large it may be unmanageable and very difficult to read. These projects rely on sophisticated project management software, not just CPA Drawing a diagram does not ensure the effective management of a project. It is only a tool – poor decisions in the planning and management of a project cannot be overcome by a diagram Staff need to be consulted to make sure the estimates used in CPA are accurate and realistic A focus on the time needed to complete a project may detract from the quality

15 What CPA should be linked to Just-in-time (JIT). JIT is when a business orders supplies just in time for them to be used, and requires the careful planning given by CPA Working capital management, keeping stocks low Human Resource Management (HRM) planning: how many staff are needed, with what skills, for how long


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