gaqneeds.blogg.se - Types of project planning tools

Moving Average method: This method gives a time series of moving averages.

The number of tools is available for quantitative forecasting. Wrong information may lead to wrong forecast. In the forecasting techniques, the role of information collected from different sources is very significant. It is primarily concerned with trying to reduce the uncertainty that exists about some part of the future. This enables the manager to monitor progress and deviation from the plan at a glance.ģ. Forecasting: Forecasts are prediction, projections or estimates of future situation. A bar is then drawn for each activity that shows the beginning and ending times of different stages in the process. On the vertical axis each individual activity is shown.

On the horizontal axis, the duration of project in days or weeks is shown.

Gant Chart: Gant Chart is another very useful tool for planning and monitoring project activities. It includes maximizing production, minimizing distribution cost and determining optimal inventory level.Ĥ. Under limited resources, what combination of variables gives the optimal solution (i.e., in maximizing profit or minimizing costs) is identified through this technique. Linear Programming: Linear Programming Technique is mostly useful for maximizing an objective such as profit or minimizing an objective such as cost. The point C is known as Break Even Point (BEP).The DE area is profit area resulting from the earning of higher revenues compare to the costs.ģ. In the above figure, the area between AO is loss area because cost of output is higher than revenue. The equation used to calculate the BE analysis is:

The objective of BE analysis is to determine the quantity at which the product or services will generate enough revenue to start earning a profit. It gives information about price and profit decision. Break Even Analysis: Break Even (BE) Analysis is also called Cost-Volume Profit Analysis. The critical path represents the longest weeks 14 (2, 3, 6, 1, 2) required to complete the total 8 activities.Ģ. In the network above there are 8 events and activities. Critical Path: It is a longest and time consuming sequence of events and sequence of events and activities.Slack Time: It represents the amount of time that can be delayed in some activity without delaying the project.Activities: They represent the time or resources to complete on event to another.Events: They are the end points of activities.