network analysis

• what is network used for

  project management tool that uses network analysis to help project managers handle complex and time-sensitive operations
• why is CPA useful for larger businesses

  complexity and risk increases it becomes even more necessary to identify the relationships between the activities involved and to work out the most efficient way of completing the project.
• CPA is to construct a model of the project that includes

  • A list of all activities required to complete the project

  • The time (duration) that each activity will take to completion

  • The dependencies between the activities
• CPA calculates

  • 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
• total float

  delayed without making the project longer
• a critical path

  The sequence of project activities which add up to the longest overall duration The critical path determines the shortest time possible to complete the project. Any delay of an activity on the critical path directly impacts the planned project completion date
• Node

  A circle that represents a point in time where an activity is started or finished. The node (circle) is split into three sections: The left half of the circle is the unique node (activity) number – the network diagram draws these in order The top right section shows the earliest start time (EST) that an activity can commence based on the completion of the previous activity The bottom right section shows the latest finish time (LFT) by which the previous activity must be completed
• Activities

  something that takes time. An activity is shown on the network as a line, linking the nodes (circles). A description of the activity, or a letter representing the activity, is usually shown above the relevant line
• Duration

  The length of time it takes to complete an activity – shown as a number of the relevant units (e.g. hours, days) under the activity line
• advantages of using CPA

  Helps reduce the risk and costs of complex projects

  Encourages careful assessment of the requirements of each activity in a project

  Help spot which activities have some slack (“float”) and could therefore transfer some resources = better allocation of resources

  A decision-making tool and a planning tool

  Provides managers with a useful overview of a complex project
• disadvantages of using CPA

  Reliability of CPA largely based on accurate estimates and assumptions made

  CPA does not guarantee the success of a project

  Resources may not actually be as flexible as management hope when they come to address the network float

  Too many activities may the network diagram too complicated. Activities might themselves have to be broken down into mini-project