Operations management

Table of Contents

1. Topic pack - Operations management - introduction
2. Operations Management (OM) - Introduction
3. 5.1 Production methods notes
4. 5.1 Production methods - questions
5. 5.2 Costs and revenues - notes
6. 5.2 Costs and revenues - questions
7. 5.3 Break-even analysis - notes
8. 5.3 Break-even analysis - questions
9. 5.3 Break-even analysis - simulations and activities
10. 5.4 Quality assurance - notes
11. 5.4 Quality assurance - questions and activities
12. 5.5 Location - notes
13. Innovation - notes (HL only)
14. 5.6 Innovation - questions
15. 5.7 Production planning - notes
16. 5.7 Production planning - questions
17. 5.8 Project management - notes (HL only)
    1. Project management - introduction
    2. Critical path analysis
    3. Critical path analysis - The rules and methodology
    4. CPA Stage 1 The data collection
    5. CPA Stage 2 The draft network diagram
    6. CPA Stage 3 - tidying and simplifying
    7. CPA Stage 4 - Earliest starting time (EST)
    8. CPA Stage 5 - Add the Latest finishing time (LFT)
    9. CPA Stage 6 - Identify the CRITICAL PATH
    10. Use of networks
    11. Float analysis
    12. Evaluation of networks
    13. Example - A simple project network
    14. Use of CPA diagrams
18. 5.8 Project management - questions (HL only)
19. Print View

Critical path analysis

We often hear in the media about large projects running late. If you think about it, this must mean there was a plan or target. You can only be late if you have a plan or a target.

Businesses need to schedule projects to ensure the optimum use of scarce resources. This is especially important if the project involves the use of external contractors and equipment.

CPA or critical path analysis helps plan complex projects to ensure the best use of machinery, people and materials. One very good method is CPA. CPA is also known as PERT (Project Evaluation and Review Technique), network planning or networking.

Critical path analysis is a method of modelling a project so that:

• Its logical route to completion can be established.
• The key or CRITICAL jobs (ACTIVITIES) can be identified.
• The time to complete the project can be estimated.
• The progress of the project to completion can be effectively managed, and remedial work can be planned as necessary.

This is done by preparing a fully timed NETWORK DIAGRAM.

The use of networks can be expanded to the evaluation and control of all project resources, such as materials, plant, skilled and unskilled labour, as well as capital expenditure and cash flow.

There is some confusion, not to say competition, over its invention or birth. CPA was probably invented in the 1940s or 1950s by major US and British companies at approximately the same time. It was definitely used by the US Government to control the development of the Polaris submarine system and by Boeing for the introduction of the 747 'Jumbo jet'.

We will now jump in at the deep end. CPA is one of those techniques, like riding a bicycle, where it is best to try and do it, rather than talk about it! Firstly, we need to examine some basics about the planning process.