Two Business A2 Level Critical Path Analysis Questions

Q1) Discuss the benefits to Balfour Beatty of apply critical path abridgment in hostelry to plan its construction realises. (15 marks) faultfinding path analysis identifies the most in effect(p) and cost effective route of masterful a interlocking stomach. The various activities which unitedly ordain nurse up the sound projection are set, and the order of these activities are identified. Then, the continuation of each employment is estimated and these factors are because arranged as a profit or graph, viewing the hearty project from start to finish, and show which tasks slew lapse at the uniform period.The sequence of tasks which kick in to be through with(p) one after an other with no gaps in amidst is called the deprecative course of action. cardinal benefit of life-sustaining Path analysis to Balfour Beatty is that it always finds the shortest judgment of conviction possible for completing a hard project. The customer requested completion in 12 4 weeks but through careful cookery using unfavorable Path analysis, Balfour Beatty was able to plan the project for completion in 79 weeks. This mass give a competitive edge and is an important component part of time-based management. If a company is able to complete the task faster than others, it is to a greater extent probable that they will get chosen, providing the company with more customers, more revenue and therefore more profit. A second benefit of Critical Path Analysis to Balfour Beatty is that it allows film directors to operate Just-in-time production. Resources such as raw materials, labour and equipment can be employed right at the earliest start time.Construction companies rely on subcontractors to complete certain tasks and for certain equipment to be hired at specific times, so with Critical Path Analysis, a manager could predict the exact time a certain piece of equipment would be involve and book the finical equipment early on to procure that the co mpany will subscribe it when needed. This saves on the storage costs and chance costs of stock holding, and improves liquidity.Overall, I accept that Critical Path Analysis is a very recommended way of managing time, and will ensure that a Balfour Beatty will use their time in the most productive way possible when using this network, improving readiness and making customers want to use them again. Q2) try the main difficulties faced by Balfour Beatty and other construction companies in their use of certified public accountant to plan their projects. (15 marks) Critical path analysis identifies the most efficient and cost effective way of completing a complex project.The various activities which together will make up the project are identified, and the order of these activities are identified. Then, the duration of each activity is estimated and these factors are then arranged as a network or graph, showing the whole project from start to finish, and showing which tasks can happ en at the same time. The sequence of tasks which have to be do one after another with no gaps in between is called the Critical Path. One barrier of using Critical Path Analysis is that unless critical activities are identified and supervised closely, therell be delays to the whole project.Critical path analysis puts pressure on mangers to manage effectively and meet deadlines. If, for example, Balfour Beatty was uneffective to get hold of a particular piece of equipment when needed, the whole project could be delayed by the amount of time that it takes to get the equipment. This means that there will be many employees being give with no output and the whole project is delayed with doesnt usually announce well with the customer. A second difficulty of using Critical Path Analysis is that Critical path analysis sets prankish deadlines, especially for critical activities.It can be very tempting for the employees to cut corners in order to meet these deadlines, but that can mean quality can suffer. If Balfour Beattys employees cut corners with the Bull ring obtain nubble, this could mean that the construction was not done properly, causing risks to persons entering the shopping centre, or the planning of the bull ring centre may have been rushed, meaning that the layout was not thought out properly, causing problems when it came to construction. Critical Path Analysis puts a component of pressure on all employees, which could in turn affect the whole project.