C H A P T E R 14 Getting from A to B – project planning using networks Chapter objectives This chapter will help you to: ■ ■ ■ ■ ■ ■ construct network diagrams apply critical path analysis (CPA) identify slack time available for project activities use the Program Evaluation and Review Technique (PERT) conduct cost analysis of projects using network diagrams become acquainted with business uses of CPA/PERT | CHAPTER 14 Getting from A to B -project planning using networks Chapter objectives This chapter will help you to construct network diagrams apply critical path analysis CPA identify slack time available for project activities use the Program Evaluation and Review Technique PERT conduct cost analysis of projects using network diagrams become acquainted with business uses of CPA PERT Many business operations involve planning and coordinating a project -a series of interlinked tasks or activities all of which have to be performed in the correct sequence and within the least amount of time in order to achieve a successful conclusion to the venture. This is not only typical of large-scale projects such as you would find in industries like construction and shipbuilding but also occurs on a more modest basis in administrative processes such as organizing events like conferences and concerts. To help plan and execute projects successfully managers can turn to network analysis a system of representing and linking the activities involved in a project. Once they have designed a network they can use 436 Quantitative methods for business Chapter 14 critical path analysis CPA to establish the minimum duration of the project by identifying those tasks whose completion on time is essential the critical activities. Beyond this they can bring into consideration the probability distributions that reflect the chances of the activities being completed by specific times using the program evaluation and review technique PERT . In this chapter we will look at these techniques. Network analysis We can apply network analysis to any project that consists of series of distinct activities provided that we know which activities must be completed before other activities can commence. This is called the precedence of the activities because it involves identifying the activities that must precede each activity. These are crucial because the point of a network diagram is to show how the .
