Network Analysis

• What is a network analysis?

  A project management tool that helps businesses plan, schedule and optimise tasks to complete a strategy efficiently
• What is the critical path in a network analysis?

  The longest sequence of dependant activities that determines the shortest time needed to complete a project
• What is float time in network analysis?

  The extra time an activity can overrun without delaying the overall project completion time
• How is float time calculated?

  Latest finish time - duration - earliest start time
• How does network analysis improve efficiency?

  It helps managers save time, order resources just in time, and improve cash flow
• How does network analysis link with delegation?

  It allows managers to delegate tasks as the managers know the start times, durations, and deadlines, ensuring progress is monitored effectively
• If an activity is on the critical path and overruns, what impacts would this have?

  • Delays the entire project
  • Increased costs
  • Damage to reputation
  • Supply chain disruptions
• If an activity is on the critical path and overruns, why might this increase costs?

  • Higher labour costs (e.g. overtime)
  • If the project is a product launch this could lead to missed market opportunities, lost sales and a reduced competitive advantage
  • Extended use of rented equipment or facilities
• If an activity overruns and is on the critical path, why might there be supply chain disruptions?

  If the project is linked to other processes (e.g. production schedules), delays can cause widespread operational issues
• If an activity is on the critical path and overruns, why might this damage reputation?

  Late completiton can harm relationships with clients, suppliers, and stakeholders
• If an activity has float time and overruns, what impacts could this cause?

  • Project may still be on track
  • Reduced flexibility
  • Resource rescheduling
• If an activity overruns and has float time, why does this reduce flexibility?

  If float is used up, future delays in the same task will impact the project completion date
• If an activity has float time and overruns, why might this cause resource rescheduling?

  Managers may need to rellocate resources from other tasks to compensate
• What are the limitations of using a network analysis?

  • Network analysis often relies on estimates and forecasts -significant research is required prior
  • Network anaysis does not guarantee the success of the project
  • Very lengthy or complex projects involve a large number of activities that have numerous dependencies