critical path analysis

Question 1

what is critical path analysis ?

Answer 1

a time based management technique

Question 2

what is the aim of critical path analysis ?

Answer 2

the aim is to help breakdown complex projects into smaller activities and to identify which ones have to be completed as a priority (critical activities) to avoid any delay to the completion of the entire project

Question 3

what does critical path analysis help to decide ?

Answer 3

which activities need to be completed at what time and what resources they require

Question 4

result of getting critical path analysis right ?

Answer 4

time and money are saved

resources efficiently used

competitive advantages ?

Question 5

result of getting critical path analysis wrong ?

Answer 5

risk of penalty charges/fines

damage to reputation

loss of competitive advantage

Question 6

what does every critical path diagram start and end with ?

Answer 6

a single node

Question 7

what is a node ?

Answer 7

a circle that shows the earliest start time (est) that a new task can begin and the latest finish time (lft) that a previous task can end without delaying the next task

Question 8

what is the node number used for ?

Answer 8

used to help follow the order of tasks

Question 9

what is est ?

Answer 9

the earliest time that the next task can begin

Question 10

what is lft ?

Answer 10

the latest time that the previous task can end to avoid delays

Question 11

how are activities shown ?

Answer 11

by lines and arrows

(the length of the line is not relevant to the duration of the task but they often have letters above them to help show the order in which activities occur)

Question 12

where is the duration of each activity shown ?

Answer 12

normally shown underneath the line

Question 13

what are simultaneous activities ?

Answer 13

when more than one activity can start at the start time

Question 14

what are dependent activities ?

Answer 14

this is when an activity cannot start until another one has been completed

Question 15

benefits of critical path analysis :

Answer 15

• helps managers with the time management of complex projects
• ensures the efficient allocation of resources and therefore saves time and money
• identifies critical activities that cannot be delayed
• improves working capital and cash flow control
• can provide a means of competitive advantage by allowing projects to be completed faster than those of rival firms

Question 16

problems of critical path analysis :

Answer 16

• how reliable is the data upon which the figures are based ?
• no guarantee that site managers will interpret the diagrams correctly : they might lack experience
• ignores external influences
• takes no account of qualitative factors
• the focus is on time management not quality