Network analysis is a managerial technique which helps to identify the interconnecting links in a single system. It is a useful tool in systems design which assists in recognizing or identifying the relationships that exist among the sub-systems.
It is done by describing each segment or linkage of the system in terms of other components or activities of the system. Thus, it makes explicit the total system and the interrelationships among the parts. A network is illustrated by a flow chart or diagram. The flow of materials and/or information is measured as volume, specifications or time.
Benefits:
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1. It helps to reappraise existing systems and identify duplication and over-lapping that may detract from the effectiveness of the system design.
2. It helps management to evaluate the sub-systems and their interconnecting networks continuously, consistent with the over-all objectives of the system.
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3. It allows an evaluation of the impact of various sub-system changes on other sub-systems and/or the total system. A change in type of output or a change in scheduling in a particular sub-system can affect operations in other areas. This effect can be determined in units of time, money, facilities or other resources.
4. It encourages introspection of an existing system or provides the framework for visualizing the make-up of a proposed system.
Defects:
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1. It provides no guarantee for effective system design, as variations in performance could always occur.
2. There always exists the danger of assuming relationships among segments which do not exist, ignoring important relationships which should be considered or weighing existing relationships improperly.
3. It requires constant follow-up as the relationship among the segments may change with time.
