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Concept of Variance in Decision making

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Network Analysis By Prof. Nadpurohit Jan – Mar 2006 Network Analysis By Slide 1 of 43 Planning is essential for successful accomplishment of any task The details and depth of planning is related to the complexity of the task to be achieved. Jan – Mar 2006 Network Analysis By Slide 2 of 43 Major elements of planning • Objective – Defining what is supposed to be achieved. • Analysis – Gathering facts on what is required to reach the objective. • Evaluation – Examining the time & effort involved in adapting various ways to reach the end objective. • Risk appraisal – Determining the allowance to be made for uncertainty. • Decision – Specifying the method for implementation • Schedule – Establishing the time schedule for implementation of the segment of plan. Jan – Mar 2006 Network Analysis By Slide 3 of 43 • Industrial / Commercial projects are complex in nature. • Handling of these projects calls for a systematic approach which takes into account – Identification of numerous activities – Required time and other resources – Availability of these resources – Coordination and control Jan – Mar 2006 Network Analysis By Slide 4 of 43 Program Evaluation and Review Technique - PERT • Developed by US Department of Navy for their “Polaris missile” program in 1958. • Is a form of network analysis technique consisting of – Translating the proposed job into a model by drawing a network of activities involved. – ...
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