Network diagram
A network diagram is a pictorial presentation of the sequence in which tasks have to be completed in a project (Richman 2012, p. 62). The circular part is the node. It depicts the beginning of a task at the left-hand side of the arrow. The completion state is found at the right-hand side of the arrow (Wysocki 2009, p. 163). The arrow represents the time taken to complete a task. The arrows are not drawn in proportion of the time taken.
Inside the node is a number that shows the sequence of a task to the critical path. Numbers 1 to 6 shows the sequence of tasks that are on the critical path. Other numbers in the nodes follow those that are nearly the critical path. The critical path is “the sequence of tasks that require the longest amount of time to complete” (Nicholas & Steyn 2012, p. 202). The critical path is identified after all paths to the completion have been identified. The sequence represents activities that must be completed before others can start.
In the diagram above, there are five paths as shown below:
- AQ = 10 +12 = 22 weeks
- ADFK = 10 + 6 + 14 + 4 = 34 weeks
- ABEFK = 10 + 8 + 4 + 14 + 4 = 40 weeks
- ACGHK = 10 +10 + 8 + 12 + 4 = 44 weeks
- ACGJLM = 10 + 10 + 8 + 16 + 6 + 5 = 55 weeks
ACGLM is the critical path because it needs the longest time for completion. Any lateness on completing a task on the critical path will cause the completion date to be rescheduled. The critical path analysis indicates tasks that can be used to reduce project completion time (Stelth & Roy 2009, p. 21).
Float (slack)
Float is the time by which an activity can be delayed without changing the project’s schedule. Wysocki (2009, p. 175) gives two types of slack. Wysocki (2009, p. 175) describes free slack as “the maximum amount of time by which an activity can be delayed without causing delay to the succeeding tasks”. Total slack is the allowance of time that an activity can await completion without affecting the critical path. Sharma (2006, p. 33) identifies a third type of float known as the independent float. Independent float is almost similar to the free float. It refers to the portion of total float that a single task can delay a project without delaying tasks that need its completion.
In the diagram above, only activities D, F and Q have a free float. Wysocki (2009, p. 174) describes that float is the difference between the late finish and the earliest finish time. Activity D has a float of 6 weeks. It can be delayed for 6 weeks without affecting the schedule on activity F. Activity F can be delayed for 10 weeks without affecting activity K’s completion time. The float on activity F is obtained by comparing the time between paths ADFK and ABEFK. Delays in B and E will affect activity F. Activity Q can be delayed by 33 weeks. It is obtained by subtracting 22 weeks from 55 weeks. Q’s free float is its total float.
The total float can be obtained by comparing different paths with the critical path’s completion time.
- ACGJLM – ADFK = 55 wks – 34 wks = 21 wks
- ACGJLM – ABEFK = 55 wks – 40 wks = 15 wks
- ACGJLM – ACGHK = 55 wks – 44 wks = 11 wks
- ACGJLM – AQ = 55 wks – 22 wks = 33 wks
The next step is to obtain the float for each activity by considering the float of the path. It will be the independent float. The float considers that no other activity is delayed once the activity under consideration has been delayed (FitzGerald & Dennis 2009). The consideration shows that any activity on ADFK can be delayed by 21 weeks without causing delays on the critical path. The outcome is similar for all other paths. Any activity on ABEFK can be delayed by 15 weeks without delaying the critical path.
Nigel Longford delay in activity F for four days
Activity F has a free float of 10 weeks and a total float of 21 weeks. Delaying the activity for 4 days does not make the project to be behind schedule. Delaying activity F by four days will not cause K to be delayed by four days because K requires the completion of task H. Activity H is completed at the end of 40 weeks and activity F is completed at the end of 30 weeks. It shows that activity F must be delayed by more than 10 weeks for the impact to be felt at activity K. Delaying activity F by four days is not very serious because the project will still be completed in time.
The impact of the delay in F to the project is minimal. However, activity F is a marketing activity that needs to be in place before the completion of the entire project. Provided that the video can be posted without waiting for the completion of activity H, there will be a loss of value in possible marketing opportunities (Baines, Fill, & Page 2013). If the website already exists, there will be potential customers who will be lost because they do not have a clear picture of the products that are offered.
The video work has been contracted to a film company. The film company is responsible for the delay. The firm can ensure that such delays are avoided by signing an agreement that compels the film company to be fined for any delays it causes on activity F. A written agreement would ensure compensation for delays (Delmon 2005). It will also make the film company to do its best to avoid penalties.
Defining the project approach
Buy off-the-shelf
Buying off-the-shelf is a project approach that allows a firm to buy a product that is already complete from a supplier. The main advantage of buying off-the-shelf is the time consideration (Vucetic 2008). It saves time required to develop software or any other product. The cost could also be lower because it is not built to certain specification. The cost of design is shared because a single product type is sold to many customers with similar needs. The overhead costs associated with system development are avoided (Nagpal 2011). Another advantage of buying off-the-shelf is that there are many options from which the firm can select a product that meets its requirements (Nagpal 2011). Upgrading costs for software bought off-the-shelf are lower because the new product is sold to many customers.
Purchasing completed products has the several disadvantages. Some products may not be available on the market. It creates the needs to have one designed specifically for the firm (Vucetic 2008). Buying off-the-shelf may sometimes result in products that function differently in different environments. Some software bought off-the-shelf may contain systems of sharing information that are unknown to the user. They may be used to violate confidentiality of the firm. Purchasing off-the-shelf makes the firm to be reliant on external vendors for maintenance and upgrades. Websites cannot be bought off-the-shelf because each firm presents different contents based on target segment (Roberts & Zahay 2012). The firms will need to have unique features because it targets customers who are aged over 50 years. Common websites tend to target different aged groups with a single website.
Develop in-house
Developing in-house systems involves the firm designing its programs. The main advantage is that the program exactly meets the needs of the firm. If the program is superior to systems available in the market, the program may offer a competitive advantage. A superior system may build a firm’s reputation. In-house developed systems are unlikely to experience external attacks because very few people understand how it operates.
Systems that are developed by the firm are more likely to be costly. If Nigel Longford’s business is considered a small business, the best option is to acquire software through off-the-shelf approach. The cost of developing its own software will be very high. The functioning of the software cannot be guaranteed because there is no enough time to carry out all the required tests (Vucetic 2008). Upgrading an in-house system will also be very costly because the cost is absorbed by a single firm.
Contract to 3rd party
A contract is an agreement between the firm and another entity requiring the third party to complete a project for a specified amount of cash and time (Gido & Clements 2014). Contracts to third parties may reduce the cost if the firm follows a normal procurement process of selecting the lowest bidder. Bidding allows the firm to find the lowest cost in areas that it lacks experience. The third party usually has technical and managerial expertise to manage every part of the project. The contractor can also use sub-contractors for areas that he lacks expertise (Turner 2003). Contracting a third party is a good option for someone that lacks experience in project management. Nagpal (2011, p. 331) explains that contracting allows the firm adequate time to focus on its core business. A contract allows the third party to assume risks associated with the project completion. Some of the risks may be the increase in the prices of inputs (Gido & Clements 2014). In the case of developing a website, the third party will ensure legal compliance of the website to local and international laws (Varndell 2013).
The main disadvantage of contracting is that overhead costs are not eliminated. They are passed over to the third party. The third party includes them in the final cost charged to the contracting firm (Gido & Clements 2014). In contracting, the firm will not be included in the designing of parts (Delmon 2005). Longford is the person who is aware of certain strengths that the firm has that can be used in marketing the product. A contractor will develop an advertisement without regard to areas that are the firm’s strength.
Recommendations
- Software should be purchased off-the-shelf because of cost consideration.
- The video should be contracted to avoid technical risks.
Reference List
Baines, P, Fill, C, & Page, K 2013, Essentials of marketing, Oxford University Press, Oxford.
Delmon, J 2005, Project finance, BOT projects and risk, Kluwer Law International, The Hague.
FitzGerald, J & Dennis, A 2009, Business data communications and networking, John Wiley & Sons, Hoboken.
Gido, J & Clements, J 2014, Successful project management, South-Western Cengage Learning, Mason.
Nagpal, D 2011, Textbook on management information systems, S. Chand & Company, New Delhi.
Nicholas, J & Steyn, H 2012, Project management for engineering, businesss, and technology, Routledge, New York.
Richman, L 2012, Improving your project management skills, American Management Association, New York.
Roberts, M & Zahay, D 2012, Internet marketing: integrating online and offline strategies, South-Western Cengage Learning, Mason.
Sharma, S 2006, Operation research: PERT, CPM and cost analysis, Discovery Publication House, New Delhi.
Stelth, P & Roy, G 2009, ‘Projects’ analysis through CPM (Critical Path Method)’, School of Doctoral Studies (European Union) Journal, vol.7, no. 1, pp. 10-52, Web.
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Varndell, D 2013, DIY SEO & Internet marketing guide, EZ Website Promotion, New York.
Vucetic, J 2008, Becoming a successful techpreneur, Xlibris Book Publishers, Bloomington.
Wysocki, R 2009, Effective project management: traditional, agile, extreme, 5th edn, John Wiley & Sons, Indianapolis.