BMT14 - Critical Path Analysis PDF

BUSINESS MANAGEMENT TOOLKIT CRITICAL PATH ANALYSIS (HL ONLY) Business Management Thursday 23rd, January 2025 AGENDA  Critical path analysis  Starter activities  Construction of CPA  Calculations  Exercises CRITICAL PATH ANALYSIS (N...

BUSINESS MANAGEMENT TOOLKIT CRITICAL PATH ANALYSIS (HL ONLY) Business Management Thursday 23rd, January 2025 AGENDA  Critical path analysis  Starter activities  Construction of CPA  Calculations  Exercises CRITICAL PATH ANALYSIS (NETWORK ANALYSIS) = technique that maps out all key tasks that are necessary to complete a project  Identifies each activity  Time necessary to finish each task  Dependencies of different activities  Sets realistic deadlines for tasks  Monitors the progress  STARTER ACTIVITY 1 Arrange the following tasks for the production of burgers in the correct order: 1. Add mince beef to the diced onions 2. Assemble the burger patty, cheese, and condiments on a bun 3. Check the finished burger for quality and presentation The purpose of this task is to highlight the importance of 4. Cook the burger patty completing tasks in the correct 5. Chop up (dice) the onions sequence when constructing critical path analysis. This 6. Receive deliveries of ingredients helps to ensure tasks are 7. Serve to the customer competed efficiently and on time. 8. Shape mix into a burger patty  STARTER ACTIVITY 2 Suppose you are going to cook your friend breakfast. The tasks and timings are shown below, although do not appear in chronological order. 1. Bacon (fried) = 2 minutes 2. Baked beans (microwave) = 1 minute 3. Eggs (sunny side up) = 2 minutes 4. Lay table, including cutlery and sauces = 2 minutes 5. Mushroom (lightly fried) = 1 minute 6. Sausages (fried) = 6 minutes Organizing activities 7. Tea / Coffee = 3 minutes in the right 8. Toast = 2 minutes sequence helps to 9. Tomato (lightly fried) = 1 minute complete tasks in the least amount of Discuss with your partner the shortest time in which time. you could prepare and serve the breakfast. FINDING THE CRITICAL PATH TOP TIP 1 Note that students are not expected to construct network diagrams in the exams. If assessed, the network diagram will be provided as part of the examination paper with students required to complete the calculations. This can include calculating the earliest start time (EST), latest finish time (LFT), as well as float times (total and free float). ADVANTAGES OF CPA  Provides a visual representation of a complex project  Helps to solve business problems or issues  Reduces the time lost between tasks, ensuring that projects run smoothly  Forward planning  Improves efficiency in production  Helps to improve firm's cash flow position by operating more efficiently DISADVANTAGES OF CPA  Diagram alone does not guarantee the smooth completion of a project  disruptions and unforeseen circumstances  Possible human error  Some projects are complex and difficult to manage  Data used must be complete and reliable  EXAM PRACTICE QUESTIONS  Identify the critical path  Identify the shortest length of time it can take to complete this project  Calculate the total float for Activity C  The critical path = A, B, D, F  The shortest length of time to complete this project = 13 weeks  The total float for Activity C = LFT at the end of Activity C – Duration of Activity C – EST of Activity C (5 – 2 - 1) = 2 weeks Next week … Monday 27th of January: 5.7 – Crisis management and Contingency planning * Self-study class Thursday 30th of January: 5.8 – Research & Development Home Assignment 3  Deadline: Sunday 2nd