01 critical path-analysis-2
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Transcript of 01 critical path-analysis-2
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Welcome to your final year at school!
• Introductions
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Teams
• Tom• Lara• Alex
• Lloyd• George• Emma• Luke H
• Russell• Alysha• Luke S
A
C
B
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BUSS3 Operational Strategies: Lean Production
• Outline the meaning and value of Critical Path Analysis
• Apply CPA to a business case to calculate Earliest Start Time (EST), Latest Finish Time (LFT) and Float
• Explain with examples how CPA can be used to achieve Lean Production
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Hats enough! – Activity 1• You are the manager of a
small retail outlet, Hats Enough, selling hats, gloves etc.
• The popularity of your business has meant you need to consider opportunities for growth in order to satisfy consumer demand
• You realise that relocation is one your main options
• To get an understanding of the complexity of the task you brainstorm all the factors you feel might be involved in relocating
Write your ideas on your worksheet
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Hats enough! – Activity 2• Having identified a range of
activities involved in a relocation, you will need to create a mental plan covering the ORDER in which the activities should take place.
• Assuming you have purchased a new outlet in the new shopping centre, you have to create a TIME LINE to plan the move, using the activities you identified in Activity 1.
1. Activity D2. Activity B3. Activity A4. Activity C
How long?
1 day5 days3 days1 month
Write your ideas on your worksheet
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Critical Path Analysis
• CPA is sometimes called network analysis
• It’s a tool used to plan activities so that a job can be completed in the SHORTEST time
• It breaks down a job into a number of tasks and looks at their DEPENDENCIES
• Used commonly in manufacturing and construction
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Parts of a Network
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A simple Network diagram
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Illustrating simultaneous activities
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Developing the network
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Earliest Start Time (EST)
• The main reason for drawing a network is to identify the CRITICAL activities
• To do this we must calculate the earliest time at which any given activity can start– This is called the Earliest Start Time (EST)
of the activityEST = EST of Previous activity + Duration of previous activity
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Earliest Start Time (EST)
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EST and simultaneous activities
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• The EST of the first activity is always ZERO
• Calculate the EST by working Left to Right across a network
EST = EST of Previous activity + Duration of previous activity
EST Recap
• When there are 2 simultaneous activities the HIGHEST figure is used as the EST
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Latest Finish Time (LFT)
• There is one final piece of information needed to complete our network diagram
• To identify the CRITICAL activities we must also know the latest time at which any given activity must end
– This is called the Latest Finishing Time (LFT) of the activity
• It is calculated by working BACKWARDS across the network using the following formulaLFT = LFT at the end of following activity – Duration of following activity
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Latest Finish Time (LFT)
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LFT and simultaneous activities
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LFT Recap
• The LFT of the last activity is always equal to its EST
• The LFT of the first activity is always ZERO
• Calculate the LFT by working Right to Left across a network
LFT = LFT at the end of following activity – Duration of following activity
• When there are 2 simultaneous activities the LOWEST figure is used as the LFT
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Hats enough! – Activity 3• Order your SORT CARDS in
a time line• Insert arrows and record
the task and duration (see activity 4 for duration)
• Before and after each activity add a node
• Enter the ESTs for the whole project
• Enter the LFTs by working backwards
• Identify any activities which you think could be carried out at the same time to speed up the process
Arrows and Nodes!
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Hats enough! – Activity 4
• Put away the sort cards
• Read the table to identify DEPENDENT activities with 2 immediate predecessors
Building the network!
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The Float
• Any activity without spare time is CRITICAL
• Spare time is referred to as the FLOAT
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Calculating the FLOAT
Activity LFT EST Duration TotalFLOAT
A 14 0 12 2
AA 14 0 14 0
B 17 14 3 0
• Total FLOAT = the amount of spare time available for an activity without delaying the whole project
FLOAT= LFT – (EST+ Duration)
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What does this mean?
This data tells us:
• Activity A can be delayed 2 weeks without delaying the whole project
• Activity AA is CRITICAL
– any delay will hold up the project
• Activity B is CRITICAL
Activity LFT EST Duration TotalFLOAT
A 14 0 12 2
AA 14 0 14 0
B 17 14 3 0
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Identifying the Critical Path
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Advantages of CPA
• Managers need to consider exactly what activities are involved in a project
• Managers can identify CRITICAL activities to be completed on time to get the whole project completed ASAP
• Good use of CPA can enable managers to reduce time to market and costs, and make the business more efficient
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Disadvantages of CPA
• Diagrams can become complicated and unmanageable
• Relies on good estimates from reliable staff– Can be padded to make performance look better
than it really is
– OR can be overoptimistic
• Can make the company v. dependent on suppliers and hence they need to be v. reliable
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Other issues
• Managers must agree ‘what success looks like’ so that staff do not cut corners
• Managers must also agree what resources and spend are available to the project
• Managers must also watch the utilisation of resources throughout the project in order to schedule work to make the most of paid staff
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CPA and Lean Production• Lean production aims to reduce wastage and
thereby make a business more efficient and competitive.
• Two operational strategies based on CPA to achieve Lean Production:
– Kaizen (continuous improvement)
– JIT – Just In Time production
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Kaizen
• Employees attempt to improve what they do in some small way every day
• Small regular contributions from the whole firm can have big cumulative effects
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JIT
• Holding stock increases costs:– Warehousing, breakages, capital
• JIT aims to minimise the stocks held at any point of the production process:
Raw Materials and
components
Raw Materials and
components
Work in progress
(unfinished goods)
Work in progress
(unfinished goods)
Finished goodsFinished goods
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Homework
For Friday assessment• Revise CPA method and calculation
to score application and analysis marks
• Research and revise qualitative issues in CPA to score evaluation marks
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BUSS3 Operational Strategies: Lean Production
• Outline the meaning and value of Critical Path Analysis
• Apply CPA to a business case to calculate Earliest Start Time (EST), Latest Finish Time (LFT) and Float
• Explain with examples how CPA can be used to achieve Lean Production