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CHAPTER 8
PURCHASING ANALYSIS TOOLS AND TECHNIQUES
The critical path can be defined as the longest path through the network. By
definition all tasks on the critical path have no float, or latitude, as to when they
can be started or finished. In other words, the tasks on the critical path must
start at the planned date and time and finish on the planned date and time if
the project is to be completed on time. Essentially, any increase in the duration
on any critical tasks will increase the schedules [5].
Network rules: Two rules are applied to all networks in order to compute network
start and finish times. (The scheduling software itself sometimes applies other
rules. These are strictly a function of the software and are not applied to all
networks.)
• Rule 1: Before a task can start, all tasks prior to this task must be completed.
• Rule 2: Arrows denote logic’s precedence. The length of the arrow or its
angular direction has no significance.
8.7 PROJECT EVALUATION AND CONTROL TOOLS AND TECHNIQUES
Various tools and techniques exist for evaluating and controlling project work.
These tools allow the project manager to manage and control the work against
time and budget. These tools and techniques are covered further on.
8.7.1 RISK MANAGEMENT
One safeguard in managing projects is to think about the risks of failure that
could sink the job. This can be done for critical objectives and for other parts of
the plan. The simplest way to conduct a risk analysis is to ask, ‘What could go
wrong?’ or ‘What could keep us from achieving our objective?’ It is usually best
to list risks first, then to think about contingencies for dealing with them. One
approach is to divide a flipchart page in half and have the group brainstorm the
risks, which are tabulated down the left side of the page. You then come back
and list contingencies, i.e., things you can do about risks if they do materialise.
8.7.2 PROJECT EVALUATION
To evaluate a project is to attempt to determine if the overall status of the work is
acceptable in terms of intended value to the client once the job is finished. Project
evaluation appraises the progress and performance of a job and compares it to
what was originally planned. That evaluation provides the basis for management
decisions on how to proceed with the project. Audits should be done at major
milestones in the project so that learning can take place as the job progresses.
Periodic audits (i.e., programme reviews) should enable you to:
• Improve project performance together with the management of the project.
• Ensure that quality of project work does not take a back seat to schedule
and cost concerns.
• Reveal developing problems early so action can be taken to deal with them.