http www bized ac uk Critical Path Analysis
http: //www. bized. ac. uk Critical Path Analysis Copyright 2005 – Biz/ed
http: //www. bized. ac. uk Critical Path Analysis Copyright 2005 – Biz/ed
http: //www. bized. ac. uk Planning and Monitoring Tool Copyright 2005 – Biz/ed
http: //www. bized. ac. uk Critical Path Analysis • May be used as part of the decision making process • Enables a firm to plan and monitor operations • Time related – identifies the maximum time for an operation to be completed • Identify potential problems in implementing operation • Identifies where and when resources (including human ones) are needed Copyright 2005 – Biz/ed
http: //www. bized. ac. uk Critical Path Analysis • Advantages – Maximise efficiency in the use of time – Improve efficiency and generate cost saving in the use of resources – Beneficial to monitoring cash flow • Disadvantages – Usefulness may be limited in complex and large scale operations – Necessity of having clear and reliable information – Skilled management and team philosophy is essential Copyright 2005 – Biz/ed
http: //www. bized. ac. uk The Process Copyright 2005 – Biz/ed
http: //www. bized. ac. uk CPA – the Process • Identify and prioritise the activities • Identify which activities MUST be done before others • EST – identify earliest start time • LFT – identify latest finish time • Identify the FLOAT – tasks which can be completed outside the critical path • Identify the critical path – points connecting ESTs and LFTs (where these are the same) Copyright 2005 – Biz/ed
http: //www. bized. ac. uk Critical Path Analysis Node numbers showing order of activities in the left hand semi-circle of each node. 1 A 3 The Critical Path 2 Earliest Start Time (EST) 5 B 5 5 Arrows indicate the order of the tasks, the letter above shows the order, the time period below the arrow Latest Finish Time (LFT) Nodes: Show the start and finish of a task Copyright 2005 – Biz/ed
- Slides: 8