Eskom Procurement Book 2015

PURCHASING ANALYSIS TOOLS AND TECHNIQUES

The critical path can be defined as the longest path through the network. By definition all tasks on the critical path have no float, or latitude, as to when they can be started or finished. In other words, the tasks on the critical path must start at the planned date and time and finish on the planned date and time if the project is to be completed on time. Essentially, any increase in the duration on any critical tasks will increase the schedules [5]. Network rules: Two rules are applied to all networks in order to compute network start and finish times. (The scheduling software itself sometimes applies other rules. These are strictly a function of the software and are not applied to all networks.) • Rule 1: Before a task can start, all tasks prior to this task must be completed. • Rule 2: Arrows denote logic’s precedence. The length of the arrow or its angular direction has no significance. 8.7 PROJECT EVALUATION AND CONTROL TOOLS AND TECHNIQUES Various tools and techniques exist for evaluating and controlling project work. These tools allow the project manager to manage and control the work against time and budget. These tools and techniques are covered further on. One safeguard in managing projects is to think about the risks of failure that could sink the job. This can be done for critical objectives and for other parts of the plan. The simplest way to conduct a risk analysis is to ask, ‘What could go wrong?’ or ‘What could keep us from achieving our objective?’ It is usually best to list risks first, then to think about contingencies for dealing with them. One approach is to divide a flipchart page in half and have the group brainstorm the risks, which are tabulated down the left side of the page. You then come back and list contingencies, i.e., things you can do about risks if they do materialise. To evaluate a project is to attempt to determine if the overall status of the work is acceptable in terms of intended value to the client once the job is finished. Project evaluation appraises the progress and performance of a job and compares it to what was originally planned. That evaluation provides the basis for management decisions on how to proceed with the project. Audits should be done at major milestones in the project so that learning can take place as the job progresses. Periodic audits (i.e., programme reviews) should enable you to: • Improve project performance together with the management of the project. • Ensure that quality of project work does not take a back seat to schedule and cost concerns. • Reveal developing problems early so action can be taken to deal with them.

8.7.1 RISK MANAGEMENT

8.7.2 PROJECT EVALUATION

189 CHAPTER 8