Operations Planning

Question 1

Critical path

Answer 1

The sequence of activities that must be completed on time for the whole project to be completed by the agreed date.

Question 2

Network diagram

Answer 2

• The diagram used in critical path analysis that shows the logical sequence of activities and the logical dependencies between them – so the critical path can be identified.

Question 3

Critical path analysis

Answer 3

• A planning technique that identifies all tasks in a project, puts them in the correct sequence and allows for the identification of the critical path

Question 4

Total float

Answer 4

Total float = LFT – duration – EST

Question 5

Free float

Answer 5

EST (next activity) – duration – EST (this activity).

Question 6

Benefits of CPA

Answer 6

• Gives design departments an advantage by showing them the tasks that can be undertaken simultaneously in developing a new product.

• Using a network diagram to calculate the total project duration allows businesses to give accurate delivery dates. Customers may insist on a particular completion date and the critical time shows whether the firm can make this date or not.

• Calculating an EST for each activity allows the operations manager to order special equipment or materials needed for that task at the correct time. This ties the use of network analysis in with JIT strategies and assists in the control of cash flow and working capital.

Question 7

Evaluation of CPA

Answer 7

• CPA is a planning technique to assist with project management. It cannot guarantee a successful project by itself and, as with any plan, requires skilled and motivated employees to put it into effect.
• A plan is only as good as the management behind it. If management of the project is poor, then even a good critical path network diagram will not ensure success. This is particularly true when attempting to make up for lost time on a critical activity.
• External factors may disrupt the implementation of the project. Delivery times may be delayed