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• Module overview
• 1. Introduction to planning
  • 1.1 Types of plans
    • 1.1.1 Some definitions
    • 1.1.2 Domains of planning
    • 1.1.3 Users and levels of planning
  • 1.2 Completing a planning cycle
    • 1.2.1 A planning process
    • 1.2.2 Tactical and operational planning
    • 1.2.3 A participative planning process
    • 1.2.4 When to complete business planning
  • 1.3 Implementing an operational plan
    • 1.3.1 Define the plan's purpose
    • 1.3.2 Setting the planning period and scope
    • 1.3.3 Why plans fail - The strategic level
    • 1.3.4 Why plans fail - The operational or project level
  • 1.4 SMART goals
    • 1.4.1 S.M.A.R.T. Goal statements
  • 1.5 Contingency plans
    • 1.5.1 Why contingency plan?
    • 1.5.2 Contingency plans and risk
    • 1.5.3 Contingency planning actions

• 2. Plan and manage resources

  • 2.1 Plan and manage human resources
    • 2.1.1 Recruitment
    • 2.1.2 Selection
    • 2.1.3 Induction
  • 2.2 Enterprise Resource Planning (ERP)
  • 2.3 Purchasing resources
    • 2.3.1 Tangible and intangible assets
    • 2.3.2 Acquisition costs
    • 2.3.3 Depreciation costs
    • 2.3.4 Planning resource acquisition and utilisation
    • 2.3.5 Estimating resource needs
  • 2.4 Manage Capacity
    • 2.4.1. Planning capacity
    • 2.4.2. Measuring capacity
    • 2.4.3. Matching operations plans with capacity
    • 2.4.4. Capacity analysis and economies of scale
    • 2.4.5. Capacity and performance effectiveness
    • 2.4.6. Determinants of capacity
  • 2.5 Aggregate and Master Planning
    • 2.5.1 Master Schedule
    • 2.5.2 Operational control and resource planning
    • 2.5.3 Demand and scheduling control

• 3. Risk Management

  • 3.1 Risk Management
    • 3.1.1 Potential benefits from an effective risk management
    • 3.1.2 Classifying risk
    • 3.1.3 Risk and ANZS4360:2004
    • 3.1.4 Risk analysis
  • 3.2 Estimate the risk attached to a corrective action
    • 3.2.1 Risk analysis categories
    • 3.2.2 Prioritising risks

• 4. Planning projects

  • 4.1 Planning the project
    • 4.1.1 Setting the project plan
    • 4.1.2 Setting achievable outcomes
  • 4.2 Controlling Projects
    • 4.2.1 Personnel resources
    • 4.2.2 Managing project costs
    • 4.2.3 Value of managing project costs
    • 4.2.4 Estimates
    • 4.2.5 Cost Coding
    • 4.2.6 The time factor
  • 4.3 Scheduling project tasks and activities
    • 4.3.1 Project timelines and deliverables
    • 4.3.2 Critical Path Analysis (CPA)
    • 4.3.3 PERT
    • 4.3.4 Seven steps to project scheduling
    • 4.3.5 Completing project schedule activities

• 5. Problem solving and decision making

  • 5.1 Problem solving
    • 5.1.1 The problem solving process
    • 5.1.2 Solutions search
    • 5.1.3 Removing root causes
    • 5.1.4 Solutions implementation through inclusive communication processes
  • 5.2 Decision making
    • 5.2.1 Decision making model and leadership styles
  • 5.3 Decision making approaches
    • 5.3.1 The logical systems
    • 5.3.2 Contingency approach
    • 5.3.3 Quantitative - schematic and mathematical approaches
    • 5.3.4 Critical Path Analysis
    • 5.3.5 PERT
    • 5.3.6 Group quantitative approaches
    • 5.3.7 A qualitative approach
  • 5.4 Context and the influence on the decision processes
    • 5.4.1 Factors in decision making
    • 5.4.2 Rational decision making
    • 5.4.3 Creative decision making
  • 5.5 Scenarios for team decision making and problem solving
    • Problem scenario number 1 - Lost in the bush
    • Problem scenario number 2 - Toothpaste blues
    • Analysis of personal behaviour in groups

5.3.4 Critical Path Analysis

Critical Path Analysis (CPA) or Critical Path Method (CPM) is part of a planning system called Network Analysis.

CPA uses the arrow diagram in which:

• A circle represents an event (or phase)
• The arrow points to the next event (or phase)

Figure 3 The simplest critical path analysis

 

Figure 4 Four activities linking five events in a critical path analysis

Suppose we wanted to devise a Critical Path Analysis for planting a tree in our garden. First, we estimate the duration of each sub-activity or task:

TASK DURATION

1 - 2 Dig a hole 20 minutes
2 - 3 Position the tree 1 minute
3 - 4 Fill in hole 5 minutes

There are four critical points from start to finish and a total of 26 minutes duration. This can be represented as follows:

Figure 5 Critical path analysis activity network

Not all projects accomplish their phases sequentially. Some project phases are accomplished simultaneously thereby establishing a network.

Figure 6 Simple network critical path analysis

The Network critical path Analysis represents a slightly more complex project. Note that the network is more than a simple straight line sequence. Here, there are two paths that lead from the start to the finish. In fact, there is even a third path represented by the dotted line and called a "dummy" activity 4 to 3. Here, the start of activity 3 to 6 is dependent not only on completion of activity 2 to 3, but it must also await completion of activity 1 to 4. This means activity 3 to 6 cannot start until events 3 and 4 has both been achieved.

Now look at the numbers above the stages and along the arrows. Activity 1 to 2 takes 1 week. Activity 2 to 3 takes 2 weeks. 1 week plus 2 weeks = 3 week but note point 3 allows for 5 weeks! This is because activity 1 to 4 takes five weeks and so as we cannot proceed past 3 until 4 is completed, we can allow five weeks for 1 to 3 even though it only requires 3 weeks. This gives us 2 extra weeks up our sleeve during which time staff can be allocated to another task (possibly on another project). In fact, we can afford to delay activities by some weeks here because we have allowed time for other phases to catch up. This allows us a whole range of options. For example:

• Duration of Activity 5 to 6 = 2 weeks
• Earliest possible start = beginning of week 6
• Earliest possible finish (6+2) = end of week 8
• Latest permissible finish = end of week 9
• Total float (free time) = 1 week on activity 5 to 6.

"Float" or "slack" = the amount of leeway available for starting and finishing an activity.

When the float = 0 (no leeway allowed between earliest and latest time) = the critical path.

Too much slack time effectively means the project is progressing (in terms of cost and time) but no useful activity is performed to progress project completion. (Schonberger 1994:483)

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