Introduction to crtical path analysis
Critical Path Analysis:
Critical path analysis, an important aid to planning, scheduling and coordinating the activities if large scale projects. Is a synthesis of two independent techniques: Programme Evaluation and Review Technique (PERT) and Critical Path Method (CPM).
Though the two techniques were developed independently, they are only superficially different. The two methods have many features in common and are now combined into a technique called Critical Path Analysis (CPA) or Network Analysis.
There are three basic different between a PERT network and CPM network:
- PERT is event oriented while CPM is activity oriented (i.e. PERT prepares network from events while CPM builds if from activities)
- PERT provides for an allowance for uncertainty while CPM does not (i.e. PERT makes three time estimates for each activity while CPM makes one time estimate)
- Activity time in CPM technique are related to costs while it is not so in PERT since it is event oriented
Significance of critical path:
Critical path analysis offers several advantages.
- Forces through pre-planning. Each and every activity compromising the project is identified and recorded. Nothing is left to memory or chance which prevents crises in scheduling.
- Increases coordination of tasks as technological relationship between the activities suggests which activities can run simultaneously and which should succeed others.
- Helps computations of different project duration’s for different level of resources and thereby select a plan that minimizes total project cost.
- Indicates optimal start and finish times of each activity of the project.
- Defines areas of responsibility of different departmental heads for timely execution of the project.
- Facilitates progress reporting and limits unnecessary discussion at the progress meetings.
- Identifies troubles spot often in advance and apply remedial measures.
- Enables the plan to be revised in accordance with changes/changing circumstances.
- Helps to exercise “control by exception” and prevents cost overruns.
A Project comprises a series of activities and the identification of the individual activities requires knowledge and experience of the men responsible for the planning of the project. Even the preliminaries-mere listing of the activities-make the operating personnel:
- Think of details about the project well in advance.
- Observe critically the way in which the various activities interact or compete for scarce resources.
- Improve upon the original plans even before network is formally drawn and analyzed.
A project, therefore, must be torn into a set of identifiable activities. There are no set rules but general guidelines are as under:
- An activity should represent the smallest unit of the operation or set of operations over which management desires control.
- An activity should represent an operation or set of operations, which can be performed using a particular kind of equipment or a special skill. For example in construction project, plumbing is considered as one activity while wiring can be considered as another activity since the first activity requires plumbers and the second activity needs electricians.
Website Search
- Posts You May Have Missed
- Primary stages of research process
- Categories of Non Performing Assets (NPA’s)
- Levels and stages of planning
- Advertisement Copy Testing
- Progression / Transfer of FERA to FEMA
- Country Risk Analysis
- Pre-shipment Finance
- Strategic Leadership
- What is Corporate Communication?
- The Control Function of Management
- Theories of Motivation: Herzberg’s Motivation-Hygiene Model 4 comment(s)
- Elton Mayo’s Hawthorne experiment and it’s contributions to management 3 comment(s)
- Definition of management by eminent authors 3 comment(s)
- Indian Ethos For Modern Management 3 comment(s)
- Mass communication and it’s importance 2 comment(s)
- Corporate restructuring exercises by Procter & Gamble (P&G) 2 comment(s)
- Evolution of Logistics and Supply Chain Management (SCM) 2 comment(s)
- Definition and Features of Promissory Note 2 comment(s)
- Frederick Taylor’s scientific management priciples 1 comment(s)
- Post-Shipment Finance 1 comment(s)
