Network analysis is a system which plans the projects by analyzing the project activities.
Projects are broken down into individual tasks or activities, which are arranged in logical sequence. It is also decided that which tasks will be performed simultaneously and which other sequentially.
A network diagram is prepared, which presents visually the relationship between all the activities involved and the cost for different activities. Network analysis helps designing, planning, coordinating, controlling and in decision-making in order to accomplish the project economically in the minimum available time with the limited available resources. The network analysis fulfils the objectives of reducing total time, cost, idle resources, interruptions and conflicts.
Managerial applications of network analysis are as follows:
1. Assembly line scheduling,
2. Research and development,
3. Inventory planning and control,
4. Shifting of manufacturing plant from one site to another,
5. Launching of new products and advertising campaigns,
6. Control of traffic flow in cities,
7. Budget and audit procedures,
8. Launching space programmes,
9. Installation of new equipment,
10. Long-range planning and developing staffing plans, etc.
Network techniques:
A number of network techniques, given below have been developed in recent times:
1. PERT- Programme Evaluation and Review Technique
2. CPM- Critical Path Method
3. RAMS- Resource Allocation and Multi-project Scheduling
4. PEP- Programme Evolution Procedure
5. COPAC- Critical Operating Production Allocation Control
6. MAP- Manpower Allocation Procedure
7. RPSM- Resource Planning and Scheduling Method
8. LCS- Least Cost Scheduling
9. MOSS- Multi-Operation Scheduling System
10. PCS- Project Control System
11. GERT- Graphical Evaluation Review Technique.