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The following information has been provided regarding Buy it Direct's new IT system installation: The Operations Director has produced the following network diagram - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Question 2
The following information has been provided regarding Buy it Direct's new IT system installation: The Operations Director has produced the following network diagram... show full transcript
Worked Solution & Example Answer:The following information has been provided regarding Buy it Direct's new IT system installation: The Operations Director has produced the following network diagram - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Step 1
Identify the critical path for the project
Answer
The critical path for the project can be calculated by determining the longest path through the network diagram of activities, which dictates the minimum time required to complete the project. The durations are as follows:
- A to B (2 weeks)
- B to C (4 weeks)
- C to D (6 weeks)
- D to E (3 weeks)
- E to G (2 weeks)
- G to F (4 weeks)
Thus, the lengths of paths can be outlined as:
- Path 1: A → B → C → D → E → G → F = 2 + 4 + 6 + 3 + 2 + 4 = 21 weeks
- Path 2: A → B → E → G → F = 2 + 2 + 4 = 8 weeks
The critical path is A → B → C → D → E → G → F taking a total of 41 weeks.
Step 2
Explain the potential value of Critical Path Analysis (CPA)
Answer
The potential value of Critical Path Analysis (CPA) is significant for several reasons:
1. Scheduling Efficiency
CPA enables Buy it Direct to schedule activities efficiently, allowing project managers to allocate resources and staff effectively to meet project timelines. By identifying the critical path, they can prioritize tasks that directly impact the project completion time.
2. Cost Management
Through CPA, the company can better manage its cash flow for the project. By knowing the exact durations of tasks, they can even adjust cash flow requirements, ensuring that funds are available when needed without unnecessary delays.
3. Risk Management
Identifying the critical path allows for better risk management strategies. If any task on the critical path is delayed, the entire project could be delayed. Hence, the Operations Director can focus efforts on monitoring these tasks closely.
4. Resource Allocation
With CPA, resources (like staff and equipment) can be allocated precisely where they are needed most, ensuring efficient use of capital and minimizing wastage.
5. Improved Communication
The clear layout of tasks and their interdependencies simplifies communication among team members, ensuring everyone understands their responsibilities and deadlines, which helps keep the project on track.
In summary, CPA serves as a critical tool for Buy it Direct, assisting in effective planning, monitoring, and execution of the IT system installation while helping to mitigate potential project delays.