Method CPM (Critical Path Method) CCM (Critical Chain Method) PERT Method (Program Evaluation and Review Technique)

pertains to recruitment, selection, development and compensation of
subordinates.
Network Analysis methods is a group of special analytical methods that are used
in case where it is necessary to analyze and optimize a network of inteconnected
and related elements that have some connection between one another.
RULES-N/W
The network analysis methods are used in project management where the
elements are key activities of the project in the mutual time relation.
The network analysis methods focus on calculating or critical path optimizing between the
elements. Among basic network analysis methods include:
Method CPM (Critical Path Method)
CCM (Critical Chain Method)
PERT Method (Program Evaluation and Review Technique)
GERT Method (Graphical Evaluation and Review Technique)
MPM Method Metra Potential Method
The network analysis methods are related to the concept of network diagram, which is a
view of the project as a diagram which expresses various links between the project activities.
The network diagrams and network analysis methods are based on the Graph Theory.
In project management, network diagrams are used both edge-rated (defined), where the
edges of the graph represent the activities of the project and nodes of their connection (or
events between activities), and graphs nodal rated (defined), where graph nodes represent the
activities and edges represent relations between them.
Critical Path Method (CPM) is one of the basic deterministic methods of the network
analysis. Its aim is to determine the duration of the project based on the critical path length,
which is a sequence of interdependent activities with the least float. CPM allows to facilitate
effective time coordination of individual, mutually consecutive activities within the project.
The critical path is defined as the (time) longest possible path from start point to end point
of the chart. Each project has at least one critical path. Each critical path consists of the list of
activities to which the project manager should focus the most, if he wants to ensure timely
completition of the project. Date of the completition of the last task on the critical path is also
the date of the completition of the project. For critical tasks to be applied, the total time
reserve and thus free time reserve is equal to zero, i.e. that the start delay of this task or to
extend its duration will affect the final date of the the project. The critical path is reflected in
the schedule and project management in all phases of the project lifecycle.
The use of the CPM in practice: this method can serve as a tool mainly for estimating the
duration of the project. It is used for lienar projects where the duration can be estimated
with a high degree of accuracy, such as the construction industry. The duration of the project
activities is usually known by past experience and knowledge from data on past projects. The
durations are not statistically determined. The method can be used also in the field of logistics
and transportation.
PERT Method (Program Evaluation and Review Technique) is one of the standard
methods of network analysis. PERT Method is a generalization of the Critical Path Method
(CPM). PERT is used to manage complex actions having stochastic nature. Here, the duration
of each sub-activity is understood as a random variable having a probability distribution.
Empirically it was found that in practice the beta distribution describes it the best because it
better reflects the variability of operating conditions (e.g. mining operations).
The aim of the PERT models is such an arrangement of activities that would ensure a
compliance with the deadline of the project with sufficiently high probability. The basic
difference from the CPM is, that the duration of the activity is not precisely known but it is
given only with a certain probability. This duration is not constant but a random variable with
a certain probability distribution. Due to the nature of issues addressed in the project
management, the beta distribution was chosen for the classical practices. This distribution is
very close to the normal distribution, it is continuous, single, slightly, asymmetrical, but
unlike normal it is bounded on both sides.
Planning is a process by which an organization's objectives and the

methods to achieve the objectives are established, and controlling is a
process which measures and directs the actual performance against the planned
goals of the organization.
Statistical quality control refers to the use of statistical methods in the monitoring and
maintaining of the quality of products and services.
Statistical Quality Control (SQC) is the term used to describe the set of statistical tools
used by quality professionals. SQC is used to analyze the quality problems and solve
them.
Inventory control is the processes employed to maximize a company's

use of inventory. The goal of inventory control is to generate the maximum profit
from the least amount of inventory investment without intruding upon customer
satisfaction levels. Given the impact on customers and profits, inventory control
is one of the chief concerns of businesses that have large inventory investments,
such as retailers and distributors.
EOQ ABC
The strategic management process means defining the organizations strategy. It

is also defined as the process by which managers make a choice of a set of strategies for the
organization that will enable it to achieve better performance.
Strategic management is a continuous process that appraises the business and industries in
which the organization is involved; appraises its competitors; and fixes goals to meet all the
present and future competitors and then reassesses each strategy.
Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of collecting,
scrutinizing and providing information for strategic purposes. It helps in analyzing the
internal and external factors influencing an organization. After executing the
environmental analysis process, management should evaluate it on a continuous basis
and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best course of
action for accomplishing organizational objectives and hence achieving organizational
purpose. After conducting environment scanning, managers formulate corporate,
business and functional strategies.
3. Strategy Implementation- Strategy implementation implies making the strategy
work as intended or putting the organizations chosen strategy into action. Strategy
implementation includes designing the organizations structure, distributing resources,
developing decision making process, and managing human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy management
process. The key strategy evaluation activities are: appraising internal and external
factors that are the root of present strategies, measuring performance, and taking
remedial / corrective actions. Evaluation makes sure that the organizational strategy as
well as its implementation meets the organizational objectives.
These components are steps that are carried, in chronological order, when creating a new
strategic management plan. Present businesses that have already created a strategic
management plan will revert to these steps as per the situations requirement, so as to make
essential changes.
Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized that each
component interacts with the other components and that this interaction often happens in
chorus.
Various authors have described these areas, types, or levels of strategies differently, but the
essential issues can be addressed using three levels: a corporate-level strategy, a business-unit
strategy, and functional/operational strategies.
Corporate strategy
Corporate strategy defines what business or businesses the firm is in or should be in,
how each business should be conducted, and how it relates to society. This strategy is
for the company and all of its business as a whole. Corporate strategies are established
at the highest levels in the organization; they generally involve a long-range time
horizon and focus on the entire organization. At the corporate level the concern
revolves around the definition of business in which the corporation wishes to
participate and the acquisition and allocation of resources to these business units.
(Christensen, Andrew and Bower, 1987; Andrews, 1971).
Business strategy
Business strategy defines how each individual business will attempt to achieve its
mission within its chosen field of endeavour. This strategy referred to each separate
business unit (SBU) or strategic planning unit (SPU). At this level strategy two critical
issues are specified: (1) the scope or boundaries of each business and the operational
links with corporate strategy, and (2) the basis on which the business unit will achieve
and maintain a competitive advantage within its industry (Wheelwright, 1984).
Functional strategy
Functional strategy focuses on supporting the corporate and business strategies. This
strategy is the a strategy for each specific functional unit within a business. Functional
strategies primarily are concerned with the activities of the functional areas of a
business (i.e., operations, finance, marketing, personnel, etc.) will seaport the desired
competitive business level strategy and complement each other.
Some authors also distinguish: operating strategy and industry strategy. For example,
Thompson and Strickland explain that,
"operating strategy refers to the even narrower and more detailed approaches and moves
devised by departmental-subunit managers and geographic-unit managers to achieve the
strategy-supporting performance objectives established in their areas of responsibility

Method CPM (Critical Path Method) CCM (Critical Chain Method) PERT Method (Program Evaluation and Review Technique)

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Method CPM (Critical Path Method) CCM (Critical Chain Method) PERT Method (Program Evaluation and Review Technique)

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pertains to recruitment, selection, development and compensation of

Method CPM (Critical Path Method)

CCM (Critical Chain Method)

PERT Method (Program Evaluation and Review Technique)

GERT Method (Graphical Evaluation and Review Technique)

MPM Method Metra Potential Method

Planning is a process by which an organization's objectives and the

Inventory control is the processes employed to maximize a company's

The strategic management process means defining the organizations strategy. It

Strategic management process has following four steps:

Components of Strategic Management Process

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