CPA, Decision trees and TSA Flashcards
CPA definition
Method of project management to identify the quickest and most efficient way of completing a project with minimal waste
Total float
LFT [of second node] - duration - EST [of first node]
Total float def
The amount of time that an activity can be delayed from its start date without delaying the finishing time of the project
Free float def
Amount of time an activity can be delayed without causing delay to the next activity
Free Float
EST [second node] - duration - EST [first node]
Advantages of CPA
- Shows float of activities to help allocate resources (move resources from one activity to another if one can be delayed more)
- Reduces risk and cost (if you have a deadline to get it done you can track this more easily without risk)
- Shows managers clear view of large complex projects
- Helps budgeting / stock control / cash flow (eg when ordering supplies)
Disadvantages of CPA
-Only estimations
-Project may have too many activities and be too complex
-Recourses may not be as flexible as expected (float may be shorter than hoped)
-Doesn’t guarantee project success
Decision tree def
A mathematical model to help managers make decisions when faced with choices
Advantages of decision trees
- Forces managers to use quantitative analysis (removes hunches from decision making)
- Helpful if situations similar have already been faced (eg if a business has introduced a new computer vs phone before you can see which did better)
- Helps to identify opportunity costs
- Shows best decision to get most revenue
Disadvantages of Decision Trees
- Quantitive data may be manipulated (managers bias)
- Ignores qualititave reasons (eg economic crash may mean neither decision will go well)
- Only an estimate
- Bad if situation is new (eg a new piece of tech that’s never been launched before - unable to estimate success)
NG
Net gain - best possible decision - money made from it
EMV
Estimated monetary value - estimated revenue from one of the decisions
