Flashcards in Chapter 25 Project Management Deck (15):
what is a Project?
A project is a specific and temporary activity with a starting and ending date, clear goals, defined responsibilities and a budget.
what is Project Management?
Project management means using modern management techniques to carry out and complete a project from start to finish in order to achieve pre-set targets of quality, time and cost
what is Critical path analysis (CPA)?
CPA is a planning technique that identifies all tasks in a project, puts them into the correct sequence and allows for the identification of the critical path.
What is Network diagram?
Network diagrams the diagram used in critical path analysis that shows logical sequence of activities and the logical dependencies between them – and the critical path can be identified.
what is Critical path?
The critical path is the sequence of activities that must be completed on time for the whole project to be completed by the agreed date.
what information isneeded for CPA?
1 A list of all activities required to complete the project
2 The time each activity will take to complete.
3 The dependencies between the activities (e.g. activity D cannot be completed until activity B&C are done)
What does CPA calculate?
1 The longest path of planned activities to the end of the project
2 The earliest start time (EST) and latest finish (LFT) time that each activity can start and finish without making the project longer
3 Which activities are "Critical" (i.e. on the longest path) and which have "total Float" (I.E. can be delayed without making the project longer)
Why is the critical path so important?
Any delay of activity on the critical path directly impacts the planned project completion date (i.e. there is no float on the critical path)
How to calculate EST?
1 First node will have an EST of 0.
2 EST is calculated from left to right
3 Add the duration of an activity to the est of a previous node.
4 if more than one activity leads to a node, the highest figure becomes the new EST
How to calculate LFT
1 Give the last node of the project an LFT = to the EST
2 work backwards from right to left
3 Subtract the duration of the activity from the LFT
What is Float?
The float is the duration an activity can be extended or postponed so that the project still finishes within the minimum time.
How to calculate Total Float?
LFT - Activity Duration - EST
How to identify the Critical Path?
1 Activities with a float of 0 cannot be delayed without delaying the entire project
2 Such activities represent the "critical path"
3 On the critical Path, activities have an equal EST and LFT
What are the advantages of CPA?
1 Most importantly – helps reduce the risk and costs of complex projects
2 Encourages careful assessment of the requirements of each activity in a project
3 Help spot which activities have some slack ("float") and could therefore transfer some resources = better allocation of resources
4 A decision-making tool and a planning tool – all in one!
5 Provides managers with a useful overview of a complex project
6 Links well with other aspects of business planning, including cash flow forecasting and budgeting