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Activity on Arrow Diagram Exercise

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CPA Australia

26/04/12 6:14 PM

CPA 104
Activity on Arrow diagram exercise
You are working for a manufacturing company and your task is to create a network diagram for a project that the company has commenced involving the acquisition of an industrial furnace. A furnace may be over 100 metres long and have more than 40,000 components, so effective project management of the contract is essential. One use for furnaces is to turn clay into ceramics for things like tableware and sanitary-ware. A furnace may cost up to several million dollars depending on its size and capabilities. A manufacturing company that is looking to buy a furnace will often solicit several quotes or tenders. If a customised design is required, this necessitates considerable preparation and effort. Once a tender is awarded, the key phases to be completed are design, purchasing, shipping, installation and commission. There are two common formats used to prepare network diagrams. The activity-onarrow (AOA) network method displays activities as arrows and events as nodes. The other format is the activity-on-node (AON) network method, where nodes and arrows represent activities and events are not illustrated. The choice of AOA or AON representation is a matter of personal preference. For this exercise we will use the AOA format.

Project information
Detailed below is a project activity list for the project to install a furnace. The main activities 'a – h' are listed, along with their preceding activity. Project activity list Activity

Preceding Activity a b b c, d e f

Time in weeks O ML 8 2 10.8 20 7 5.8 4 P 15 2.7 15 30 13 9 5
Page 1 of 4

a Tendering b Customer tender review & acceptance c Design d Purchasing (including waiting for deliveries) e Receive/Ship goods to site (including clearing customs) f Installation g Commissioning

7 1 7.5 16 6.7 4 3

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