1 Planning Change

Planning for improved efficiency and effectiveness Utilise the resources in a better way Obtain additional resources that may help your team become more efficient Increase your effectiveness It is perfectly possible to be efficient yet ineffective

Efficiency v Effectiveness EFFICIENCY IS…… Doing things right Quote Peter Drucker EFFECTIVENESS IS…… Doing the right things

Network Analysis A way of showing how a complex project can be completed in the shortest possible time. Identifies activities that must be completed on time to avoid delaying the whole project (the Critical Path). Management effort can be concentrated on ensuring that key activities are completed on time Objective is to maximise profitability of the project.

Network Analysis Network analysis can be used in a variety of business situations. It can help to minimise : loss of time - the transition, from one process to another, takes place as smoothly as possible. cash flow problems - materials are only bought when they are needed and not too soon. material wastage - cutting down on the risks of spoilage. capital equipment required - ensuring maximum utilisation of capital stock

Logic Diagram Although A, B and C can be completed in 8 mins, D & E takes 12 mins, so the final 4 minute activity cannot start until 12 minutes have elapsed. Therefore the project duration is 16 minutes

Example - The Need for Networks A chocolate producer has decided to run a ‘3p off’ price promotion. Among other things, it would be necessary to : –advise the sales force –sell the stock into shops –design the ‘flash’ packs –estimate the sales volumes, for one month, at 3p off

Example - The Need for Networks (continued) –get ‘flash’ packs printed –order extra raw materials (e.g. additional cocoa) –increase production output –arrange overtime for factory staff –deliver promotional packs to shops

‘3p off’ Network A manager needs to think about all the activities needed and put them into the correct time sequence. This then allows for a network to be constructed Once it has been determined how long each activity is likely to take, the time at which the work must start can be calculated by working backwards.

‘3p off’ Network

Task Read more about network diagrams Construct a network diagram for the following task to paint a room and identify the time on the critical path: 1.Select colour10 days 2.Buy paint 1 day 3.Buy painting supplies 1 day 4.Sand and clean walls 3 days 5.Apply first coat1 day 6.Apply second coat 1 day Total 17 days