We discuss four types of financial analyst charts WBS, CPA, PERT, and GANTT with their differences and define; Any good financial analyst knows the importance of effectively communicating results; which largely comes down to knowing the different types of charts and graphs and when and how to use them. When using numbers and statistical data it is pertinent to have a visual to bring meaning to it. Data render useless if no one understands the meaning behind it. Charts and graphs help to bring the data to life. And they are practical for individual use as well as for businesses.
Define and discuss financial analyst charts WBS, CPA, PERT charts, and GANTT charts. Describe the role of each in determining scope, budgets, and schedules? What are the advantages and disadvantages of each? Can they use together? What concerns might a PM have in basing decisions on these charts?
There are several different types of charts and graphs. Common ones include pie charts, line graphs, histograms, bar graphs, and Venn diagrams. However, each of these is useful for very different things. With such a variety to choose from; it can be challenging to decide which to use for a specific set of data. How can you decide which is the best type of chart or graph to use?
What does means Charts and Graphs?
The collection of data is vital for many aspects of life. Graphs and charts present data with visual cues to help readers understand it at a glance. They convey what the data means. Armed with an accurate understanding of the information, readers can take proper action.
Graphs and charts organize, compare, and highlight important aspects or trends. They also help others remember the data in ways words and numbers never could. But charts and graphs are not the same. Each is useful in its way to display different types of data.
Deciding which chart or graph to use to display data depends on the end goal. What is the key point readers should learn from this data? After deciding what the purpose of the data is; it is easier to choose the chart or graph that will be most effective.
What is the Difference Between Charts and Graphs?
Many people use the words “chart” and “graph” interchangeably. Both charts and graphs display data clearly and concisely and help others to understand it. But charts and graphs have different uses and purposes.
A graph is a mathematical diagram. It displays any relationship or connection there might be between numerical data. The data displayed in graphs represent by lines, dots, and curves. Graphs are often used to display long-term trends.
A chart is a picture, diagram, or table that organizes a large amount of data. In general, charts use to display current data and to make decisions or predictions. The following Define and discuss Work Breakdown Structure project charts, Critical Path Analysis project charts, PERT project charts, and GANTT project charts below are;
WBS (Work breakdown structure) project charts;
WBS (Work breakdown structure) is a chart that describes the work elements of a project and shows their relationships with each other and also with the entire project. The WBS outwardly outlines the scope into reasonable pieces that a project team can comprehend; as every level of the WBS offers additional detail and definition. The WBS delivers to the PM and the team the ability to divide a high-level scope statement into minor, better reasonable pieces of effort, named work packages needed to complete the project.
As the project is implemented, precise segments of the WBS can follow to distinguish project cost execution and recognize problems and issue areas in the project organization. WBS defines scope as a manageable block that the project manager can understand; because each level of WBS provides a definition and detailed information of the project. From the cost viewpoint, WBS is also assigned to specific departments for work. These departmental or cost accounts are also defined in the organizational breakdown structure and allocate the budget to create definite deliverables.
If the project schedule details, then there is a need to determine the projects under a work package that need to complete within a certain period and also within a certain level of effort. When a project is running late, referring to the WBS will rapidly pinpoint the main deliverables affected by a late sub-deliverable or a fizzling work package.
Advantages and Disadvantages of WBS (Work breakdown structure) project charts;
The WBS advantages include boosting productivity, easier monitoring of work definitions, coherent delegation, progressive work management, constant improvement of processes, risk management, training systems, planning evaluation. WBS disadvantages include having a loss of tasks to perform at a single go, requiring active management of interfaces; increased work burdens on management and management functions like planning, organizing, monitoring, and review; potential demarcation problems. PMs must decide the exact amount of information to incorporate in the work breakdown structure. Excessively and the project turns out to be too bureaucratic. Not enough and the project lacks meaning.
CPA (Critical path analysis) project charts;
CPA (Critical path analysis) is a project management tool that uses network analysis to help project managers handle complex and time-sensitive operations. It acts as the basis both for the preparation of a resource planning and schedule. During the management of a project, it allows monitoring of the achievement of project goals. Critical path analysis also helps in identifying where action needs to take to get a project back on course. Critical path analysis uses it in reorganizing the project before initiation and as it progresses. CPA aids in keeping the project’s completion on track and makes certain that deliverables finish on time.
A critical path consists of a set of dependent tasks (each dependent on the preceding one), which together take the longest time to complete; therefore it can use in determining scope, budgets, and schedules. CPA identifies and outlines the non-critical and critical tasks in connection to a work plan or business procedure and the quantity of float related to every activity to avert process bottlenecks schedule postponements. The CPA evaluates specific projects that should complete, assesses where the parallel activities can occur, find the fastest time to finish the project, determines resource requirements, classify the action sequences, as well as enables task scheduling.
Element of Critical Path Analysis project charts;
Critical Path Analysis is a vital element in diminishing project timelines and monitoring expenses to avoid surpassing the budget. With Critical Path Analysis complex activities may be impossible to represent accurately on a network for the PM. The project may still require management as external factors may change. Critical Path Analysis relies on estimates for the expected duration of activities; and, if these are inaccurate the whole process may invalidate.
PERT (Program Evaluation Review Technique) project charts;
A PERT (Program Evaluation Review Technique) chart is a project management instrument utilized to plan, arrange, and manage jobs within a project. A PERT chart displays a graphic design of a project as a network diagram comprising numbered nodes indicating events, or milestones in the project connected by marked paths indicating tasks in the project. The arrows’ direction on the lines specifies the order of tasks.
The PERT chart is best used to illustrate task dependencies as it presents a graphic illustration of a project as a network diagram consisting of numbered nodes representing events, or milestones in the project linked by labeled vectors representing tasks in the project. PERT can utilize in determining scope, budgets, and schedules. Charts are usually drawn on ruled paper with the horizontal axis indicating period divisions in days, weeks, or months. Plans broke down into smaller parts.
PERT chart provides a graphical representation of a project’s timeline, and it permits the tasks in a particular project to examine. PERT charts are usually preferable to Gantt charts because they identify task dependencies clearly and better; however, they are often more difficult to interpret. The Program Evaluation Review Technique analysis necessitates a thorough study of project undertakings and commentaries from numerous individuals from dissimilar organizations. Furthermore, PERT is a complex technique that’s performed over an expanded time. The labor-intensive nature of the PERT method can make PERT charts expensive to support for a PM.
GANTT project charts;
GANTT charts tools use in project management and show activities (tasks or events) displayed against time. Alongside the topmost of the chart is an appropriate timescale, and on the left side is a list of the undertakings. Gantt charts are generally utilized for monitoring project schedules. For this, it is suitable to have the capacity to demonstrate extra information about the different phases or tasks of the project; for instance how the tasks connect, what resources are being utilized for every task, how far each task has advanced.
Gantt chart consists of a horizontal bar for each task connecting the period start and period ending columns; and, it can utilize in determining scope, budgets, and schedules. The way to break a project to complete it in a specific period is then the Gantt chart did. This focuses on analyzing the scope of the project based on its results or deliverables. Once you have identified the details, you should develop a list of the tasks that you want to finish to produce desired results. These projects will have durations and dependencies and thus they can schedule. When the logic defines once as well as the project’s budget calculate, results can view in the Gantt chart.
Aspects of Gantt project charts;
Gantt charts help in working out practical aspects of a project, such as the minimum time it will take to deliver, and which tasks need to complete before others can start. However, it’s best not to show the dependencies on the Gantt chart, especially if there are a large number of tasks and complex dependencies between them. Gantt chart’s limitation is that it relies upon an already constructed and complete work breakdown structure. As such, should major tasks be missing from the work breakdown structure, or should a major milestone be missing, the Gantt chart will not tell PM. The PM will thus be attempting to create the work breakdown structure and at the same time constructing the Gantt chart. This can result in the risk of having to recreate the entire project schedule if something is left out or the duration does not estimate properly.
Differences between Analysis of WBS, CPA, PERT, and GANTT project charts;
Work Breakdown Structure, Critical Path Analysis, PERT charts, and GANTT charts use together. PMs typically use PERT charts, Gantt charts, as well as other visuals to arrange projects, organize resources, as well as to gain a good understanding of their projects. The prime minister must be furious as well as put their opinions together. It has been proving to be a great medium of communication. Planners and Thinkers can convey their ideas, fears, and doubts to another level on one level.
Most importantly, it becomes a suitable tool for assessing the performance of the individuals as well as the groups. When deciding on the specific details of a work package, the project manager should careful not to get details. If CPA is not clear and stable, CPM may be difficult to monitor or manage as well as it becomes ineffective. It cannot handle the sudden changes in an implementation plan. So the project manager should pay attention to all these things.
Post Reference and Retrieved from https://www.ukessays.com/essays/project-management/skills-and-role-of-a-project-manager.php?vref=1, and https://wpdatatables.com/types-of-charts/