Network analysis and Value analysis both are important factor for an entrepreneur to success their projects and every entrepreneur should know about both analysis before product launched.
Network Analysis in Project Management
Network analysis is process of event to the project. It is beneficial for an entrepreneur to host event about their projects and goals achievement.
A project consists of a number of constituted activities. When it is represented in the form of a graphical portrayal it is called as network.
Network is simple words defined as the graphical representation of interrelated activities of the project.
A network generally comprises a set of symbols connected with each other in a sequential relationship with each step making the completion of an event.
A number of network techniques have been developed and some of them are discussed below:-
- Critical Path Method (CPM)
- Program Evaluation and review Technique (PERT)
- Graphical Evaluation and review Technique (GERT)
- Line of Balance (LOB)
- Workshop analysis scheduling Programme (WASP)
The Critical Path Method (CPM)
The CPM is a logical mathematical model of the project based upon the optimal duration required for each activity and optimal use of available limited resources. It is a deterministic model.
Core Utilities of CPM
The CPM is generally used to find the optimum project cost and time. The optimum project cost in the minimum cost at which the project can be completed.
CPM is also used to find minimum time at which a project can be completed, irrespective of cost, which may be necessary under crisis situations.
Strategic Advantages
There are mainly four advantages of CPM which is given below :
CPM allows for a comprehensive view of the entire project. Because of the sequential and concurrent relationship, time scheduling becomes very effective.
Identifying critical activities keeps the project manager alert an in a state of preparedness, with alternative plans ready in case these are needed.
Selective management principle may be used in project management.
Through the plan schedule derived from CPM, delegation can be effectively practiced.
Limitations of CPM :-
CPM is deterministic model based on certainty assumptions as regards time. But it may not be true in practice.
CPM does not use statistical analysis in making time estimates.
It cannot be used as a controlling device since any changes introduced will alter the entire structure of network.
Program Evaluation and Review Technique
The PERT is primarily a scheduling technique. It shows any job or project as a set of processes of operations called activities which must take place in a certain sequence.
All activities have to be compelled in order to accomplish the project.
It is a probabilistic model and introduces uncertainties in project network.
The Execution Framework of PERT
The following steps are used in PERT :-
The activities of the project are identified along with their interrelationship and graphically represented using networks.
The time required for completing each activity is estimated and noted on the network.
The minimum time required for completing the entire project is estimated.
The critical activities are identified for the efficient allocation of resources in order to complete the project earlier, if necessary.
Closer watch on critical and other activities so as the complete the project on time.
Strategic Advantages
There are four advantages to using of PERT in an enterprise :
It determines the expected duration of activities and consequently of the project duration’s.
It incorporates risk analysis in project network.
It determines critical activities in the project.
It determines the most economical scheduled for fixed project duration.
It enables optimal allocation of limited resources.
Limitations of PERT :-
The time estimates to perform activities constitutes a major limitation of this technique.
The probability distribution of total time is assumed to be normal which in real life situations may not to be true.
The simple PERT technique does not consider the resources required at various stage.
If a certain resources must be used to perform more than one activity and at the same time if it can be used for only on activity at a time then the network diagram will become infeasible.
CPM vs. PERT: Key Strategic Differences
Though both PERT and CPM are used for managing projects, yet there are differences between them. These are pointed as below :
- PERT is event oriented approach, whereas CPM is and activity oriented approach.
- PERT allows uncertainty, whereas CPM does not allow uncertainty.
- PERT is probabilistic model, whereas CPM is deterministic model.
- PERT is time based, whereas CPM is cost based.
- PERT’s average time, whereas CPM’s does not average time.
- PERT has three estimates of time, whereas CPM has single estimate of time.
- PERT is suitable when high precision is required, whereas CPM is suitable where reasonable precision is required.
Graphical Evaluation and review Technique (GERT)
The GERT is a more recently used network. This is superior to CPM and PERT. It allows for probabilistic events while all events in CPM and PERT are deterministic.
In the networks representing research and development project the process is repeated till the desired out come is achieved.
CPM and PERT cannot be used in such situations. In GERT network only simulation can be used.
Line of Balance (LOB)
Line of balances uses graphic techniques to show the progress achieved on the project with respect to key events.
Workshop analysis scheduling Programme (WASP)
This technique of networking system was developed by the British Automatic Energy Authority.
However, the most commonly used techniques are PERT and CPM.
Final Thoughts
Now At last words, Network analysis are plays important role in project management. Network analysis is examined in detail and the details are utilized to compile the sequential narration of the constituent activities of a project. For modern media and digital entrepreneurs, Network Analysis prevents the chaotic bottlenecking of resources.
If your venture involves a fixed, repetitive layout (like setting up a physical studio), CPM keeps your costs locked down. However, if you are developing unmapped software products or launching a complex content campaign, PERT provides the structural flexibility needed to absorb unpredictable market delays.
Read more:- Project Feasibility Analysis: A Guide to Business Viability and Success
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