Page 331 - (DK) The Business Book

DELIVERING THE GOODS 329

See also: Gaining an edge 32–39 ■ The value chain 216–17 ■ Lean production Sydney Opera House
290–93 ■ Simplify processes 296–99 ■ Time-based management 326–27
One of the modern world’s
architectural wonders, the
On this critical path network for a 20-day project,
the nodes (circles) record finish times. The time the Sydney Opera House is a
task should take is recorded at the top, while the time dramatic example of what
it must be completed by to keep the project on track can go wrong when projects
is recorded at the bottom. Tasks B, D, and G form are not properly planned and
the critical path since they must be completed managed. When the world-
promptly; the other tasks all have more 4 14 famous performing arts
Task C 16 it was ten years late, and
time than they need. center was opened in 1973,
8 6 days 4 days had cost 14 times more than
Task F
2 its original budget.
Task A 10 In an attempt to open the
0 8 days 16 Task G 20 building to the public as soon
1 5 4 days 7 as possible, the government
0 Task B Task D 16 20 ordered building work to
6 days commence in 1959, before the
10 Task H Danish architect, Jørn Utzon,
10 days
3 had finalized his drawings.
10 Task E 2 days The decision to start
12
6 construction work early led
2 days
18 to a series of problems. For
example, the podium columns
that were initially used proved
to be too weak to support the
Kelley’s advice, DuPont saved activities where there is no float roof. As a result, time and
25 percent in the shutdowns. In (spare) time. If a critical activity money were wasted replacing
the early 1960s, NASA used critical looks like it could be delayed, these columns. Unfortunately
path analysis to defeat Soviet Russia management will need to act, for Utzon, it was initially his
in the Space Race. Through careful probably by employing extra people design that was unfairly
blamed for the delays and
project scheduling, NASA was able and machinery. These resources
cost overruns, rather than
to advance its spacecraft and can be moved from noncritical
poor project management.
rocket-development programs. activities that have float time.
Planning tool Saving time and money
CPA is a planning tool that plots a Manufacturers might use CPA to
project’s stages in a logical plan the launch of a new product.
sequence, indicating which of the By identifying jobs that can be
component activities need to be performed simultaneously, the
finished before others can start. It manufacturer should be able to
allows for activities to be scheduled reduce the amount of time needed
simultaneously to save time. for development, allowing it to
Activities that are critical to the launch onto the market sooner.
project are identified—these are Completing projects earlier also
steps, which if delayed, will hold up reduces costs. For example, a
the completion of the whole project. company might use CPA to reduce
Project managers illustrate this the amount of money spent on
Architectural icon The Sydney
information visually, using a step- hiring expensive machinery. By
Opera House is a feat of engineering
by-step network diagram. The most studying the network the manager and design, despite the difficulties
important part of the diagram is can predict when to rent a piece of encountered during its construction.
the critical path, which shows the machinery and for how long. ■