Have a think…! What process do you need to go through to make bread or redecorate your bedroom? Are there any activities that could be done at the same time as something else?

Learning Objectives TOPIC: Topic 5: Operations Management LESSON TITLE: Critical Path Analysis (HL) COMPETENCY FOCUS: Technological Impact (C4): students will develop their understanding of how technology has made an impact in the production process of products for a business. [IB Learner Profile Development: reflective] Learning Objectives By the end of the lesson, you should be able to… LO1) To describe the concept ‘Critical Path Analysis’ (CPA) LO2) To construct and interpret a network diagram, identifying EST and LFT LO3) To evaluate the value of a network in the management of projects. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

Critical Path Analysis A critical path diagram shows: the order in which each activity must be undertaken the duration of each activity the earliest date at which later activities can commence Each diagram is composed of 'Activities' and 'Nodes': An activity is that part of the project which requires time and resources - it is represented by an arrow, running from left to right. A node is the start or finish of an activity, and it is represented by a circle. Each diagram must start and end on a single node and no activity lines must cross each-other.

EST Earliest Start Time

LFT Latest Finish Time

Critical Path Analysis

EST and LFT EST = Earliest Start Time LFT = Latest Finishing Time Earliest Start time = Duration of the task B + EST of Task A LFT = Latest Finishing Time This is achieved by working backwards Last Start Time = LFT of Task C – duration of Task B

Critical Path Critical Path = The shortest time it takes to complete a task is called Critical Path and have a red line Activities on the Critical path are called Critical Path Activities

Total Float Total float time is the amount of spare time between the time an activity takes and the time it must be completed by. N.B. Activities on the critical path do not have Free Float time

Free Float Time Free Float time is the difference between the time a task takes and the time where the next task has to start. EST (of next activity) – Duration of task – EST (of this activity ) = Free Float

Advantages of CPA CPA is a useful visual aid CPA identifies tasks which need to be closely supervised - Staff can be transferred from activities with Float Time to Critical Activities - CPA allows Just in Time Production (JIT) CPA makes Managers think about the. steps in an activity so nothing gets forgotten CPA helps companies forecast their Cash Flow

Disadvantages of CPA CPA relies on estimates CPA puts pressure on manager to manage effectively and meet deadlines Once delays are known the CPA must changed - otherwise ineffective. CPA sets tight deadlines. It could result in corner cutting – QUALITY could suffer CPA can’tt tell you about COSTS CPA can’t tell you how GOOD the project is

Critical Path Analysis Complete workbook [20mins]