3.3.4 Critical path Analysis (1/2)

Question 1

Critical Path Analysis (CPA)

Answer 1

A method of calculating the minimum time required to complete a project, whilst identifying delays which could be critical to it’s completion

Question 2

What is a known saying related to CPA

Answer 2

‘time is money’

-means that if tasks are completed more quickly, the business will benefit financially

Question 3

If a business finishes a task more quickly what 3 things will happen?

Answer 3

1) -Businesses will be allowed to used resources for other tasks
2) -Customers will get product/service quicker
3) -Business can receive/ask for payment earlier

Question 4

Why is CPA important?
5

MET RN

Answer 4

1) Efficiency
2) Time based management
3) Working capital control
4) Reputation and costs
5) Motivation

Question 5

How does CPA improve efficiency

2 reasons

Answer 5

CPA shows tasks that can take place concurrently which saves:

• production time
• installation time
• resources

highlights those which are crucial to prevent an overall delay which can overall help a business to meet its deadlines.

inability to meet a deadline can be costly for. a business

Question 6

How CPA impact Time-based management?

Answer 6

identifying tasks that have to be done in order, tasks that can be done together and tasks that may delay the whole project if not completed on time will help to ensure that the least time is taken to complete an operation.

Question 7

How does CPA help Working capital control?

2 Main reason

Answer 7

identifying when resources will be required in projects can help a business to manage its WCC.

-Network diagrams allows a business to identify exactly when materials + equipment will be used in a project.

This means there can be a prevention of capital being tied up which can be costly.
(This is especially important if a business operates in a JIT system)

Also if delays are identified + taken into account then resources can be allocated to other operations until they are needed.

Question 8

How is CPA linked with decision making?

Answer 8

Network analysis is agreed to a more scientific + objective method of making decisions.

Estimating the length of a project will take is based on past information so it should help with identifying time taken+ any delays that can occur

Question 9

How does CPA impact reputation + Costs?

Answer 9

• Ensures deadlines are met to save costs + protect reputation.
• Penalty clauses are often written into contracts for projects if not completed on time
• Bonuses can be awarded for meeting/beating deadlines