Network Analysis

Question 1

What is network analysis

Answer 1

a widely-used project management tool that uses network analysis to help project managers to handle complex and time-sensitive operations.

Question 2

What does it calculate

Answer 2

The longest path of planned activities to the end of the project
The earliest and latest that each activity can start and finish without making the project longer

Question 3

Advantages

Answer 3

• helps reduce the risk and costs of complex projects
• Encourages careful assessment of the requirements of each activity in a project
• A decision-making tool and a planning tool – all in one!
• Provides managers with a useful overview of a complex project
• Links well with other aspects of business planning, including cash flow forecasting and budgeting

Question 4

Disadvantages

Answer 4

• Reliability of CPA largely based on accurate estimates and assumptions made
• CPA does not guarantee the success of a project – that still needs to be managed properly
• Too many activities may the network diagram too complicated. Activities might themselves have to be broken down into mini-projects