Revision:AQA A2 Business Studies Unit 4 - Network and Critical Path Analysis

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Planning Operations

Planning how long various stages of an operation will take is critical to how will the operation will run and to keeping costs down because if it is planned out strategically and well then less time and materials will be wasted and the operation will run as smoothly as possible. Network analysis involves drawing up a network that shows when each phase of the project must be started by, how long it should take, what projects can run at the same time, etc etc.

In order to con duct a network it must be worked out what projects must be done before the next stage can start and also how long each phase will take. The line through the network that takes the longest is known as the critical path, and if there is a delay in any of the tasks along this path then the whole project is delayed, there is no float time on the critical path.

For phases not on the critical path there is some float time. This is the Latest finish time (LFT) take away the earliest start time (EST) take away the running time.

(LFT - EST) - Running time = float time

Advantages of using networks:

• The careful planning means that operations run smoother and are less likely to accumulate delays that effect launch time.
• Also, networking helps identify areas that can be run at the same time therefore shortening project time to a minimum which should help to keep costs down.
• The network diagram provides a good base to work from should a delay be incurred and therefore it is easy to see how to work around the delay and minimize its impact.

Problems:

• Complex projects have some many varying phases that drawing networks becomes impossible, however, the advent of computers has made this better as networks can be zoomed in and out of in order to view certain sections when needed.
• Drawing a diagram and planning the operation does not mean that it will actually run to schedule. A network can only be as successful as the staff’s commitment to it and is very dependant on those working on it.

Also See

Read these other AQA A2 Business Studies Unit 4 revision notes:

• Privatisation
• SWOT Analysis of the UK
• Balance Sheets
• Limitations of Accounts
• Profit and Loss Accounts
• Revenue and Capital Expenditure
• Market Analysis and Decision Making
• Marketing Maths
• Marketing Objectives and Decision Making
• Marketing Budgets
• Corporate Planning
• Management of Change
• Invention, Innovation and Design
• Network and Critical Path Analysis
• Business and the Law
• Employee Participation
• Human Resource Management
• Performance Measurement