Two Business A2 Level Critical Path Analysis Questions

Q1) Discuss the benefits to Balfour Beatty of apply vituperative class analysis in shape to aim its whirl projects. (15 marks) vital rails analysis identifies the some efficient and exist effective room of completing a complex project. The non-homogeneous activities which to diswhitethornher result make up the project atomic number 18 identified, and the ready of these activities atomic number 18 identified. Then, the duration of each(prenominal) activity is estimated and these factors are then put as a network or graph, showing the self-colored project from lead to finish, and showing which designates clear happen at the same time.The episode of tasks which have to be d oneness one after other with no gaps in between is called the unfavourable passageway. One benefit of censorious travel guide rule book analysis to Balfour Beatty is that it always finds the shortest time assertable for completing a complex project. The customer requested completion in 124 weeks further through careful designingning exploitation lively highroad compendium, Balfour Beatty was able to plan the project for completion in 79 weeks. This can give a warring edge and is an important element of time-based supervisement. If a company is able to know the task faster than others, it is to a greater extent likely that they bequeath endure 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 managers to operate Just-in-time production. Resources such as raw materials, labour and equipment can be employed right at the early start time.Construction companies rely on subcontractors to complete certain(a) tasks and for certain equipment to be chartered at specific times, so with Critical Path Analysis, a manager could harbinger the exact time a certain pick of equipment would be needed and book the particular equipment early on to arr est that the company will have it when needed. This saves on the storage cost and opportunity costs of stock holding, and improves liquidity.Overall, I believe that Critical Path Analysis is a actually recommended way of managing time, and will ensure that a Balfour Beatty will use their time in the most productive way workable when using this network, improving efficiency and make customers want to use them again. Q2) Evaluate the chief(prenominal) difficulties faced by Balfour Beatty and other construction companies in their use of CPA 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 tas ks can happen at the same time. The sequence of tasks which have to be done one after another with no gaps in between is called the Critical Path. One encumbrance of using Critical Path Analysis is that unless critical activities are identified and administrate closely, therell be delays to the whole project.Critical path analysis puts contract on mangers to manage effectively and meet deadlines. If, for example, Balfour Beatty was unable to get hold of a particular piece of equipment when needed, the whole project could be delay by the amount of time that it takes to get the equipment. This plastereds that there will be many employees being paid with no output and the whole project is slow up with doesnt usually bode hearty with the customer. A second difficulty of using Critical Path Analysis is that Critical path analysis sets tight deadlines, especially for critical activities.It can be rattling tempting for the employees to cold shoulder corners in order to meet these d eadlines, but that can tight quality can suffer. If Balfour Beattys employees cut corners with the Bull ring shopping centre, this could mean that the construction was not done properly, causing risks to persons entering the shopping centre, or the cookery of the bull ring centre may have been rushed, meaning that the layout was not thought process out properly, causing problems when it came to construction. Critical Path Analysis puts a lot of pressure on all employees, which could in become affect the whole project.