Q:

What do you mean by project layout and network analysis?

Ans: Project Design: The execution of a project follows a definite path of planning, scheduling and controlling.The first and the foremost aspect of a project is the project design.It is in fact the heart of the project entity.It defines the individual activities which go into the corpus of the project and their interrelationship with each other.Project design enables to identify the flow of event which must take place for the successful implementation of the project. When you create a new theme project, you must first select a layout type. An efficient plant layout is one that aims at achieving various objectives like efficient utilization of available floor space, minimizes cost, allows flexibility of operation, provides for employees convenience, improves productivity etc. The entrepreneurs must possess the expertise to lay down a proper layout for new or existing plants. It differs from one plant to another. But basic principles to be followed are more or less same. From the point of view of plant layout, we can classify small business into three categories i.e. (a) manufacturing units (b) traders (c) service establishments. Designing of layout is different in all above three categories e.g. manufacturing unit may follow one of Product, Process, and fixed position or combined layout, as the case may be. Traders might go either for selfservice or full service or special layouts whereas service establishments such as motels, hotels, and restaurants must give due attention to customer convenience, quality of service, efficiency in delivering the service etc. While deciding for layout for factory or unit or store, a small entrepreneur has to consider the factors like the nature of the product, production process, size of factory building, human needs etc. Plant layout is applicable to all types of industries or plants. At the end, the layout should be conducive to health and safety of employees. It should ensure free and efficient flow of men and materials. Future expansion and diversification may also be considered while planning factory layout There are four types of layouts process layout, product layout, project layout and cellular layout. 1. Process Layout: - It is also called functioanl layout. It is generally associated with batch production. Factory is divided into similar process units. and with in these similar process units all similar facilities are groped together. Example Movie sets or studios 2. Product layout: - It is also called line layout. the layout plant, size and shape of building, location and shape of storage yard, position of material handling equipment is such that material is flowed in one direction at the steady rate. All equipments and machines used in this process are of special type and highly trained labor is used in this layout. Examples are assembly lines of automobiles, refrigerators, radio, televisions and air conditioners. 3. Project layout: - It is also called fixed position layout. in this type of layout procut to be produced remain at fixed position and machine, material and man are brought at the asssimbly position. Examples Aeroplane, ships and heavy machines. 4. Cellular Layouts: - Primarily this type of layout is an attempt to reduce the complexity of process layouts. It divides transforming resource up into small clusters which can be used to act upon different products or product groups. Within each cell layout can be almost identical to product layout

NETWORK ANALYSIS What is a network? A network is a set of symbols connected with each other with a sequential relationship with each step making the completion of a project/event. As discussed earlier, a business plan or project involves various activities to be undertaken to convert it into an enterprise. Delays in the completion of activities cause, among other things, cost overruns. Hence, there is a need for deciding the sequential order' of all activities of the project so as to accomplish the project economically in the minimum available time with the limited resources. This is also called II project scheduling". A number of network techniques have been developed for project scheduling. Some of them are: 1: Programme Evaluation and Review Technique (PERT). 2. Critical Path Method (CPM). 3. Graphical Evaluation and Review Technique (GERT). 4. Workshop Analysis Scheduling Programme (WASP). 5. Line of Balance (LOB). Programme Evaluation and Review Technique (PERT) PERT was first developed as a Management Aid for completing Polaris Ballistic Missile Project in USA in October 1958. It worked well in expediting the completion of the project from 7 years to 5 years. Since then, PERT has become very popular technique used for project planning and control. In nutshell, it schedules the sequence of activities to be completed in order to accomplish the project within a short period of time. It helps reduce both the time and cost of the project. Steps Involved in PERT: The following steps are involved in PERT technique: 1. The activities involved in the project are drawn up in a sequential relationship to show what activity follows what. ' 2. The time required for completing each activity of the project is estimated and noted on network. 3. The critical activities of the project are determined. , 4. The variability of the project duration and probability of the project completion in a given time period are calculated. Advantages of PERT: PERT technique bears the following advantages: 1. It determines the expected time required for completing activity. 2. It helps complete the project within a given period of time. 3. It helps management handle uncertainties involved in the project and thus, reduce the 'risk element in the project. 4. It enables management to make optimum allocation of limited resources. 5. It presses for the right action, at the right point and at the right time in the organization. Limitations of PERT: PERT suffers from the following limitations: 1. PERT network is mainly based on time estimates required for each activity. On account of wrong time estimates, the network is bound to become highly unrealistic. 2. This technique also does not consider the resources required at different stages of the project. 3. For effective control of a project by using PERT technique requires frequent

updating and revising the PERT calculations. But, this proves quite a costly affair for the organization. Critical Path Method (CPM) The Critical Path Method (CPM) was first developed in USA by the E.I.Dupont Nemours & Co. in 1956 for doing periodic overhauling and maintenance of a chemical plant. It resulted in reducing the shutdown period from 130 hours to 90 hours and saving the company $ 1 million. The CPM differentiates between planning and scheduling of the project. While planning refers to determination of activities to be accomplished, scheduling refers to the introduction of time schedule for each activity of the project. The duration of different activities in CPM are deterministic. There is a precise known time that each activity in the project will take. Advantages of CPM: The important advantages of CPM technique are: 1.It helps in ascertaining the time schedule of activities having sequential relationship. 2. It makes control easier for the management. 3. It identifies the most critical elements in the project. Thus, the management is kept alert and prepared to pay due attention to the critical activities of the project. 4. It makes better and detailed planning possible. Limitations of CPM: The main limitations of the CPM are: 1. CPM operates on the assumption that there is a precise known time that each activity in the project will take. But, it may not be true in real practice. 2. CPM time estimates are not based on statistical analysis. 3.It cannot be used, as a controlling device for the simple reason that any change introduced will change the entire structure of network. In other words, CPM cannot be used as a dynamic controlling device.