CRITICAL PATH ANALYSIS (NETWORK
ANALYSIS)
IB Operations Management
The Aims of Network Analysis are to :
facilitate the planning and coordination of large projects
identify critical activities that determine the total duration of the
project
identify activities that cause, or or likely to cause, bottlenecks and
delays
determine when resources and components are needed
plan the use of resources
reduce and eliminate idleness
identify important linkages and sequential, dependant relationships
reduce costs by reducing waste
facilitate the taking of corrective action when performance falls below
that specified in the plan
Applications of Network Analysis
Network analysis can be used when planning and controlling large
projects in fields such as construction, research and development and
computerisation. By planning this way:
completion times can be calculated
completion times for intermediate activities can be monitored
resources can be prioritised
costs can be calculated
In addition, the possibilities and costs of crashing an activity can be
evaluated.
Crashing is when you shorten the time taken to complete certain jobs
on he critical path by assigning extra labour and /or equipment.
Earliest start time (EST) DRAWING A
of subsequent
Node number activities NETWORK DIAGRAM
Activity
Latest finish time
(LFT) of preceding
activities
Node (circles) - to show start and end of activities, and also carry
information about earliest start times (EST) and latest finish times (LFT)
Arrows – to show the flow of activities
Hatching ( // ) – drawn on the arrows of those activities on the critical path
Rules for Drawing Networks
The network must start and end on a single node
No lines should cross each other
When drawing an activity, do not add the end node straight away;
wait until you have looked to see which activity follows
There must be no lines that are not activities
Draw large circles for nodes, and short lines for activities (figures
need to be inserted within the node)
A B 3
A B 1 2 C
1 2 3
4
Activity A has to be completed Neither B nor C can be started
before B can be started until A has been completed, B and
C can be carried out concurrently
A
1 C
1 A C 4
3 4 3
B B
D
2 2 5
A and B are both independent of A and B are independent of each other
each other but both must be but both must be completed before either
completed before C can start C or D is started. C and D can be carried
out concurrently
EXAMPLE OF A NETWORK FOR A FLAT PACK (IKEA)
Activity Preceded by Estimated duration (mins)
A - 5
B A 3
C - 12
D B,C 4
A fitted to B Screwed to C ABC slotted into DE
A B D
1 2 3 // 4
5 mins 3 mins 4 mins
D & E glued together
C
//
12 mins Critical path = C, D
CALCULATION OF A NETWORK DIAGRAM
Activity Preceded by Duration
A - 6
B - 10
C B 4
D B 8
E A, C 2
1 A E
3 4
6 2
C
4
B D
2
10 8
CALCULATION OF EST AND LFT
EST – left to right – take the highest number
LFT – right to left – take the lowest number
0 14 18
1 A E
3 4
0 16 18
6 2
C
4
10
B D
2
10
10 8
INDICATING THE CRITICAL PATH
The critical path comprises the activities which take the longest to complete. They
determine the length of the whole project. These are activities which must not be
delayed by even one day.
To identify the critical path, the two key points are:
it will be on activities where the nodes show the EST and LFT to be the same
it is the longest path through the nodes
0 14 18
1 A E
3 4
0 16 18
6 2
C
4
10
B D
// 2 //
10
10 8
The critical path will be B, D
FLOAT TIME
‘Float’ is the spare time available for any activity.
AQA specification states knowledge of ‘TOTAL FLOAT’
Total float measures the spare time available so that there is no delay
to the project as a whole.
CALCULATION
LFT - Duration - EST = Total Float
(This activity) (this activity)
A 16 - 6 - 0 = 10 days
B 10 - 10 - 0 = 0 days
C 16 - 4 - 10 = 2 days
D 18 - 8 - 10 = 0 days
E 18 - 2 - 14 = 2 days
Advantages of CPA
Time between tasks is reduced to produce a smoothly run, coordinated
project – links to time based management
Improved decision making - construction of the network forces
managers to plan forward and to consider all relevant tasks
By readjusting float the amount of resources can be minimised, thus
improving efficiency
Improved working capital control as stock can be ordered on JIT basis
The network acts as a control technique to check the progress of the
project, which is particularly important if there are penalty clauses for
late completion, ie motorway construction
