Critical Path Method and Its Significanc
Critical Path Method and Its Significanc
IN PROJECT MANAGEMENT “
PROJECT REPORT
MANANGEMENT
By
UBI/MBA/IE/JULY12/ A00012416
Of
JARO EDUCATION
PUNE
JANUARY 2013
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Critical Path Method & its significance in project management JARO EDUCATION
DECLARATION
I, Ms Deepa Junnarkar Degwekar hereby declare that this project report titled "
" submitted in partial fulfillment of the requirement for the " International Executive
MBA in Project Management " is my original work and it has not formed the basis for
Date : 04-Jan-2012
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Critical Path Method & its significance in project management JARO EDUCATION
ACKNOWLEDGEMENT
I feel fortunate to get the support of numerous sources and people in making this project
a success.
colleagues and seniors in DSP Design Associates for their valuable inputs, which
I would also like to thank Apoorv Talegaonkar and Sameer Degwekar for his
I would like to thank my project guide from JARO EDUCATION, Prof. Amit Shirali
for his valuable inputs and extended support during preparation of this project report.
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INDEX
PAGE
SR.NO PARTICULARS
NO.
01 INTRODUCTION 05
02 INDUSTRY PROFILE 29
03 COMPANY PROFILE 36
05 LITERATURE SURVEY 44
06 OBJECTIVES OF STUDY 49
07 RESEARCH METHODOLOGY 50
08 ANALYSIS 51
09 FINDINGS, RECOMMENDATIONS 63
10 CONCLUSION 64
11 REFERENCES 65
12 FURTHER STUDY 66
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01 INTRODUCTION
If you have been into project management, I'm sure you have already heard the term
'critical path method'. If you are new to the subject, it is best to start with
understanding the 'critical path' and then move on to the 'critical path method'.
Critical path is the sequential activities from start to the end of a project. Although
many projects have only one critical path, some projects may have more than one
critical path depending on the flow logic used in the project. If there is a delay in any
of the activities under the critical path, there will be a delay of the project
deliverables. Most of the times, if such delay is occurred, project acceleration or re-
scheduling project activities. This method was first introduced in 1950s as a joint
venture between Remington Rand Corporation and DuPont Corporation. The initial
critical path method was used for managing plant maintenance projects. Although
the original method was developed for construction work, this method can be used
for any project where there are interdependent activities. In the critical path method,
the critical activities of a program or a project are identified. These are the activities
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While its roots lie in business practices that began more than a century ago, it is only
any serious business operation. It has also become a key to success in a global
competition.
overseeing just one aspect of an operation, nor are they constrained by the time
Instead, project managers are tasked with a complex assignment: oversee all
aspects of a project, ensuring that it is done well, on time and within budget.
To succeed in the job, project managers must become adept at a number of tasks as
well as earn certifications that qualify them for this demanding career. They must
also demonstrate a blend of an analytical mind and the ability to be a people person.
For those who can master its complexities, project management can be a rewarding
career.
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Simply put, project management is the job of overseeing a project to ensure it meets
its goals, time line and budget. Clearly, however, this involves many processes once
Among the first jobs for a project manager is identifying the scope of a project – in
Next, a project manager must prepare a schedule, assigning tasks to team members
Along with the schedule, a project manager must also establish a budget and ensure
exorbitant cost overruns. As the project begins, the manager must make sure team
Project managers typically design plan using the Critical Path Method (CPM), a
efficiently as possible. This can involve planning the project down to the hourly level.
Having initiated and planned the project, the manager must now communicate
of them and ensure that the resources used by the team are the best available given
the budget.
determines the duration of a project, as well as the sequence of key project tasks
which govern the project's completion time. With this information, the project
manager can focus on getting the critical tasks completed on time, while allowing
other tasks to slip their schedule if necessary, without jeopardizing the project's
deadline.
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duration. Also, for each task in the project, it will report the earliest start time
and the slack, which is the amount of time the task's completion can be
The critical path method (CPM) is based on an algorithm for scheduling a set of
as Gantt charts to plan and subsequently report progress within the project
environment.
As part of the MS Office suite MS Project uses a similar navigation as Word, Excel
etc. Underneath the toolbars the plan itself will be split into two areas. On left hand
side is a table view. Running from left to right you should see columns for tasks,
duration, start and finish dates and resources. There may be additional columns, but
these are the key areas. On the right hand side is the Gantt Chart view, named after
Henry Gantt. This views shows the project tasks as bars mapped to a calendar.
The grey column at the far left is the unique identifier for each task, similar to the row
numbers in Excel. Next to it is the Indicator field, which is used to show information
about a particular task. For example if a task has notes associated with it or contain
a hyperlink.
The Task Name column contains the description of each task. Tasks names should
be detailed enough so that you can clearly understand what each task will deliver.
Note that the tasks will be organized logically into Summary and sub tasks.
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Summary tasks are used to order groups of task. In the image below the Functional,
If you look across to the Gantt view you will notice that the summary tasks appear as
Next you will see the duration column. Durations can be entered in months, weeks,
days, hours and even minutes. The summary tasks will show the total duration for
the tasks beneath. Look out for ‘1 day?’ this is the default duration so you will want to
The Start and Finish date columns follow. These are automatically calculated by MS
Project using the task duration, working times, resource allocation and task
dependencies. The Project Manager should avoid entering start and finish dates
manually as they will interfere with the calculation of the projects end date. I
date. When a start or finish date is set by the Project Manager a constraint will be
set. You can check for constraints by looking for this symbol in
DEPENDENCIES
planning. To calculate the end date of your project and to understand the Critical
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Ideally the first task on the plan is the only task without a predecessor and the last
RESOURCES
The Resources column records the people, teams or machinery that will complete
the task. Multiple resources can be assigned to a task. Some resources may work
part-time and Project handles this by allowing the Project Manager to adjust the
Units – percentage of a resource’s time assigned to a task. Check that the resource
column contains identifiable owners for the work. Generic terms like ‘Supplier’ or
The Gantt Chart view is named after Henry Gantt who, in the 1910s, developed a
method of planning projects that showed tasks as rows with corresponding bars
showing the duration of each task against a calendar. Tasks are represented by
rectangular bars that correspond to the task duration. Depending on how you choose
to format your Gantt bar chart the resource names and task names may also by
shown.
WORKING TIME :
The project plan should take into account working days and hours. By default MS
Project assumes that working time is Monday to Friday 08:00 to 17:00pm with 1 hour
for lunch. Resources can have specific calendars so it is worth checking that your
resource aren’t scheduled to work during non-working time. If you have MS Project
you can check this via View > Resource Usage or View > Resource Sheet (double
click the resource). Finally check the Project Plan takes into account Christmas and
other holidays. This sounds obvious, but MS Project doesn’t contain holidays by
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default so it is well worth checking the plan doesn’t assume 100% working time over
Christmas.
CRITICAL PATH
The Critical Path is the series of tasks that must finish on time for the entire project to
finish on schedule. Each task on the critical path is a critical task. You can also think
of it as:
or the path corresponding to the shortest time in which the project can be completed.
It should be easy to identify the Critical Path from the Gantt Chart view. Tasks on the
The Critical Path drives the project end date. The project plan and predicted end
date may be inaccurate if the Critical Path is not correct. Task durations, links,
constraints, resources and working time all impact the critical path check you are
happy with each of these areas and if you can’t easily identify the Critical Path raise
GIST:
I hope you have found this guide to MS Project plans useful. This is a high-level view
However, this does arm you with the information you need to understand the key
parts of a MS Project plan and to identify areas that need deeper investigation. I
haven’t explicitly stated, but if you receive a plan that doesn’t show the areas
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mentioned here this should also be a flag for further discussion. To do lists or excel
spreadsheets with start and finish dates are not project plans!
The essential technique for using CPM is to construct a model of the project that
1. A list of all activities required to complete the project (typically categorized within
2. The time (duration) that each activity will take to completion, and
Using these values, CPM calculates the longest path of planned activities to the end
of the project, and the earliest and latest that each activity can start and finish
without making the project longer. This process determines which activities are
"critical" (i.e., on the longest path) and which have "total float" (i.e., can be delayed
without making the project longer). In project management, a critical path is the
sequence of project network activities which add up to the longest overall duration.
This determines the shortest time possible to complete the project. Any delay of an
activity on the critical path directly impacts the planned project completion date (i.e.
there is no float on the critical path). A project can have several, parallel, near critical
paths. An additional parallel path through the network with the total durations shorter
Although the activity-on-arrow diagram ("PERT Chart") is still used in a few places, it
has generally been superseded by the activity-on-node diagram, where each activity
is shown as a box or node and the arrows represent the logical relationships going
Activity-on-node diagram showing critical path schedule, along with total float and
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Illustration 2: Activity-on-node diagram showing critical path schedule, along with total float and
critical path drag computations
while Activities F, G, and H are off the critical path with floats of 15 days, 5 days, and
20 days respectively. Whereas activities that are off the critical path have float and
are therefore not delaying completion of the project, those on the critical path will
usually have critical path drag, i.e., they delay project completion. The drag of a
1. If a critical path activity has nothing in parallel, its drag is equal to its duration.
2. If a critical path activity has another activity in parallel, its drag is equal to
whichever is less: its duration or the total float of the parallel activity with the least
total float. Thus since B and C are both parallel to F (float of 15) and H (float of
20), B has a duration of 20 and drag of 15 (equal to F's float), while C has a
duration of only 5 days and thus drag of only 5. Activity D, with a duration of 10
days, is parallel to G (float of 5) and H (float of 20) and therefore its drag is equal
to 5, the float of G.
These results, including the drag computations, allow managers to prioritize activities
for the effective management of project completion, and to shorten the planned
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critical path of a project by pruning critical path activities, by "fast tracking" (i.e.,
performing more activities in parallel), and/or by "crashing the critical path" (i.e.,
MILESTONES
elements with intended start and finish dates. Terminal elements are the lowest
by dependencies and scheduled events. Now a day’s soft ware’s like Microsoft
A Gantt chart is a type of bar chart, developed by Henry Gantt, that illustrates
a project schedule. Gantt charts illustrate the start and finish dates of the terminal
elements comprise the work breakdown structure of the project. Some Gantt charts
activities. Gantt charts can be used to show current schedule status using percent-
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Illustration 3: Grantt Chart showing for Preliminary schedule for a corporate Interior Fit-out
project.
here.
CRITICAL tasks are the task's which are most important tasks to achieve target
milestones , if critical tasks are completed with priority the project completion can be
achieved without delaying the entire project. To understand more, if in a project plan
if many tasks are dependent or linked with few task, which are going to play a major
role in determination of Target completion / milestones they are called critical tasks.
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For example in case of an interior fit out projects, Task of False ceiling cannot be
closed before above ceiling services like electrical conduiting, sprinkler system, Air-
conditioning works are finished so these service’s tasks become critical tasks to
Illustration 4: Grantt chart represented with Critical tasks and Milestone activities
ANOTHER EXAMPLE, in above ( Illustration 3 ) project Grant chart tasks marked in red
color bar are critical tasks as project milestones like virtual completion and Final
completion cannot be achieved without finishing these tasks. Fit out works (Refer
task ID 17) cannot be started before Completion of base building works and
handover of site to interior fit out team ( Refer task ID 13) , Hence task 13 is a one of
the crucial and critical tasks , all other milestones would be delayed in case of delay
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Illustration 5: Different Bar Styles for different type of tasks/ progress bars/
milestones/summary tasks.
special attention. It is often falsely put at the end of a stage to mark the completion of
a work package or phase. But milestones are rather to be put before the end of a
phase so that corrective actions in case of problems can still be met and
During making of a project Grant Chart report, Selection of Bar styles should be
above bar style selection tab Critical tasks have been marked in Red color and the
entire Milestone are set in Fuchsia (magenta color) so that critical tasks and
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Illustration 6: A typical Gantt chart denoting all normal tasks, milestones and critical activities
tasks. Critical tasks are the task's which are most important tasks to achieve target
milestones , if critical tasks are completed with priority the project completion can be
achieved without delaying the entire project. A typical Gantt chart denoting all normal
which outlines or affects the future of a project. In this sense, a milestone not only
signifies distance traveled (key stages in a project) but also indicates direction of
travel since key decisions made at milestones may alter the route through the project
plan.
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Milestones are frequently used to monitor progress, but there are limitations to
their effectiveness. They usually show progress only on the critical path, and ignore
activities to critical activities to ensure that milestones are met. This gives the
impression that the project is on schedule when actually some activities are being
ignored.
schedule must be updated regularly throughout the duration of the project to ensure
that the project manager is aware of any issues or delays that might affect the
product delivery date. Too many delays can lead to additional expense, customer
managers to enable close analysis of the factors affecting the project schedule.
Through Critical Path Analysis (CPA), project managers are able to make more
facilitate creating and managing a CP. This article considers how MS Project can
Microsoft Project allows users to create and manage a CP using the Gantt chart
capability. A Gantt chart represents the tasks necessary to complete a project. The
MS Project Gantt Chart represents task dependencies (when one task cannot be
started until another is complete), task duration (including ’slack’ - the number of
days a task can run over schedule) and also summary tasks (groups of subtasks).
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The MS Project Gantt Chart view is automatically displayed at the start of any
project.
The Critical Path describes the shortest possible sequence of tasks that are
essential to successful project closure. The tasks on a project’s Critical Path will be
interdependent: that is, one task is a pre-requisite for carrying the next. When the
last task on the Critical Path is complete, the project can close. Any task that is not
necessary for carrying out another task, or for project closure, is not part of the CP.
A critical task is a task which has no ’slack’. This was earlier defined as the number
of days that a task can run over schedule. In the context of the Critical Path, it means
more specifically “the amount of time that a task can slip before it affects another
task or the project’s finish date.” The MS Project CP is therefore made up of tasks
The quickest way to view your project’s CP is to open the View menu, click on More
Views, select Detail Gantt, and then click Apply. This displays all the tasks necessary
to complete a project. Critical tasks are displayed as red bars along a horizontal axis
measured in project time. The ‘filter’ function can then be used to display critical (or,
Sometimes the project manager needs to bring forward the finish-date of the project.
schedule overtime
break a task down into smaller components that can be worked on simultaneously
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The Critical Path Method is an essential technique for any professional project
project managers to easily create and manage a Critical Path, and maximize the
CRASH DURATION
"Crash duration" is a term referring to the shortest possible time for which an activity
of that activity, resulting in decreased time spent and often a reduced quality of work,
relationship between cost and activity duration, however in many cases a convex
EXPANSION
Originally, the critical path method considered only logical dependencies between
terminal elements. Since then, it has been expanded to allow for the inclusion of
and may cause a previously shorter path to become the longest or most "resource
critical" path. A related concept is called the critical chain, which attempts to protect
activity and project durations from unforeseen delays due to resource constraints.
monitoring of the schedule, allows the project manager to track the critical activities,
and alerts the project manager to the possibility that non-critical activities may be
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delayed beyond their total float, thus creating a new critical path and delaying project
completion. In addition, the method can easily incorporate the concepts of stochastic
predictions, using the Program Evaluation and Review Technique (PERT) and event
chain methodology.
Currently, there are several software solutions available in industry that use the CPM
Stanford University
The third technique can be employed in those cases where activity overlap is
duration while allowing them to remain in series, essentially the “F-S arrangement.”
should be practiced only when time is more important than cost. In other words,
crashing should be practiced only when the project schedule completion date is of a
higher priority than the project cost. The priorities should therefore be clearly
Crashing the critical path is the process of reducing an activity’s duration while
activities which produce the greatest reduction in project duration for the lowest cost
increase are crashed first. This is accomplished determining the crash ratio for each
critical path activity then selecting those having the lowest ratios.
1.09 | FLEXIBILITY/LIMITATIONS
A schedule generated using critical path techniques often is not realized precisely,
as estimations are used to calculate times: if one mistake is made, the results of the
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analysis may change. This could cause an upset in the implementation of a project if
the estimates are blindly believed, and if changes are not addressed promptly.
However, the structure of critical path analysis is such that the variance from the
original schedule caused by any change can be measured, and its impact either
analysis is the As Built Critical Path (ABCP), which analyzes the specific causes and
actually implemented.
STEP 1:
Identifying and writing all activities as per their sequence in a project schedule,
Start, Finish to Start, Start to finish etc arrangements ), defining all task information
of each task such as Task ID, task Name, type of task ,lag time , duration,
STEP 2:
STEP 3:
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A Go to Gantt Chart wizard, select options as per your requirement for presentation.
C Custom information which is to be displayed along with task bars of Gantt chart
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There are times when the project schedule duration must be shortened
(compressed) either to meet market opportunity dates, to meet the desires of key
stakeholders, or when the project completion date slips. In these cases the project
manager must find ways to reduce the amount of time it will take to complete all
conditions, all of which are to be applied to the critical path activities. These are: 1)
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out that if the critical path is compressed enough, other paths may become the
Optimizing lead-lag times along the critical path is one of the best ways to reduce the
is the “finish-start” (F-S) arrangement. This means that an activity begins only after
the previous activity is completed. In actuality, subsequent activities can begin prior
to the completion of its previous activity with no resulting risk. When this is possible,
one of three other arrangements can be selected. These are: 1) start-start (S-S), 2)
S-S Example: At least 5 days are required from the start of the electrical hook up, to
S-F Example: The contract requires the phase out of old system to be finished 25
F-F Example: It will take 5 days to finish the final editing of the user manual after the
You can show the critical path in the Detail Gantt view.
You can also show the critical path with the Gantt Chart Wizard.
3. Follow the Gantt Chart Wizard instructions to format the critical path.
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By default, the critical task Gantt bars (Gantt bar: A graphical element on the chart
portion of the Gantt Chart view representing the duration of a task.) and link lines
(link line: On the Gantt Chart and Network Diagram, the line that appears between
NOTE : This format change overrides any direct formatting changes that you might
have already made to bar styles or individual bars. This formatting of critical tasks
only applies to the current Gantt Chart view in the current project. To save this
formatting, use the Organizer (Organizer: The tabbed dialog box in which you can
copy custom views, tables, filters, grouping definitions, calendars, reports, forms,
toolbars, maps, field attributes, and VBA modules to other documents and to other
users.) on the Tools menu to copy the formatted Gantt Chart to another file.
To display all tasks again, in the Filter list, click All Tasks.
TIP: To quickly see the list of tasks on the critical path, in the current view, on the
Project menu, point to Group by, and then click Critical. The critical path tasks are
and on paper looks identical to lead-lag time optimizing. The primary difference is
that with fast-tracking the activity overlap results in some degree of acceptable risk.
In other words, critical path activity overlaps are “forced” in order to gain valuable
schedule compression time but with known and acceptable resulting risks.
building’s foundation before the client gives final approval of the building design. In
such cases, the project manager has enough confidence that client approval is close
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enough to finalization so that the first stages of construction can begin. The risk lays
in any last minute design changes that might require reworking the completed
building foundation.
Another example might be with the design of a hardware product which is about to
be finalized. In order to gain valuable schedule time the project manager may begin
procurement of needed off-the-shelf parts before final design approval. The risk
would be sunk costs associated with discarding any parts that may not be needed
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02 | INDUSTRY PROFILE
Industry.
Designing projects Pan India and worldwide. Sub categories of projects includes
below:
Residential (Architecture)
Industrial (Architecture)
Commercial (Architecture)
The Client from one of the above category or assortment above segments appoints
an Architect / Interior Design consultant who can work closely with the project and
lead the delivery of the project. The project manager will assume the lead consultant
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brief guideline about the project requirements in form of RFP (Request for proposal )
Illustration 7: important extracts from Request for proposal ( RFP ) of a client ( Citibank) are as below:
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exclusively assigned to oversee this project from the time of receipt of this order till
handing over. Your project manager shall be a single point contact with the client for
Several agencies will be working on this project simultaneously. You will therefore be
required to carry out your work at every stage in close co-ordination with each of
these agencies and as per schedule and sequence that may be decided upon by
client .
It is very evident that project management is a very significant part of the above
mentioned industry.
MY JOB PROFILE
coordination and management) since last 10 years in the Architecture and Interior
Design Industry.
CPM has a very significant role in project management. It is one of the Effective
‘The key is not to prioritize what’s on your schedule, but to schedule your priorities’-
Stephen R. Covey
Most of us have a tendency to attend to tasks that interest us the most, especially
when I am expected to deliver on multiple projects within the same time frame. The
problem here is that, what interests me the most may not necessarily be the most
important thing that needs to get done. Effective Approaches to Project Prioritization
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by Critical path method during scheduling a project helps us direct our attention to
activities that give us the greatest value as individuals while organizational priorities
are intended to focus more on teams and on matters that provide optimal value to
the organization. Without organizational priorities, individuals will set their own
priorities (like doing what they like), hence the important stuff doesn’t get done on
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03 | COMPANY PROFILE
LOGO :
DSP DESIGN ASSOCIATES PVT. LTD.
DSP
Architects , Interior Designers
Master planners, Architects, Interior Designers
WEBSITE : www.dspdesign.co.in
The firm is a single window agency offering Master Planning , Architecture and
Interiors with complete collaboration between the teams . This gives us an edge over
other competitors.
Pan India presence viz. Mumbai, Bangalore, Pune, New Delhi, Hyderabad, Chennai
We are very strong in Green design and have an inherent understanding of LEED
To give a personalized & total quality effort focusing our ability to deliver exceptional
Single Window Consultancy for all Aspects of the Building Construction Industry
Master Planning
Architecture
Structural
Electrical
HVAC
PHE
Landscaping
SERVICES OFFERED
Conceptual planning
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Design Management
ORGANIZATION STRUCTURE
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04.01 |TO AVOID COMMON MISTAKES WHILE MAKING CRITICAL PATH DIAGRAMS
Network diagrams are like a sort of flow diagram of the tasks in a project so you can
see the running order of what depends on what. You can use a computer but post-its
are best. Normally they are drawn across the page, left to right. The objective is to
find the longest path, or ‘critical’ path, which tells you how long the project will take.
Common mistakes made by people doing network diagrams with post-its (or on a
whiteboard):
4.01.01 VERTICAL LINES. This is a sin because it’s not clear whether the line is going
up or down. Lines should always go diagonally across – makes the diagram much
easier to understand. Sometimes vertical lines are used to show that the tasks
happen together – but in this case the two tasks should both feed from the one on
4.01.02 ARROWS GOING BACKWARDS (or forwards then backwards then forwards) –
you must move the boxes so the arrows always flow to the right. It makes it much
easier to see the flow of the project. Similarly arrows which cross over make the
project much harder to “see”, though very occasionally these cannot be avoided.
4.01.03 DANGLE. Every task should have at least one arrow coming into it and one
coming out of it. If it has no arrow coming out of it then why are you doing it? At the
4.01.04 ARROWS COMING OUT OF THE START OF A BOX, OR INTO THE END OF A BOX. This
is confusing – they should be drawn coming out of the end of one box and into the
beginning of the next, from left to right. Yes I know you might want to show lag, e.g.
we want to start the next task half way through this one, but see next sin:
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4.01.05 NOT GRANULAR ENOUGH. If you want to start the next task half way through
this one, then you need to break the first task into two. Then, after the first half, you
can show arrows going to the second half, and also to the next task.
4.01.06 REDUNDANT ARROWS. This is getting tricky to describe in words alone, but I
hope you’re still with me! If you can’t pour the tea until you’ve boiled the kettle, and
you can’t boil the kettle until you’ve filled it, you don’t need another arrow from fill
kettle to pour tea. Redundant arrows are often easy to spot since they form a
triangle.
4.01.07 LOOPS. You can never have arrows that go backwards (ie right to left) and if
4.01.08 ONE TASK MUCH TOO BIG. If most of the tasks are a couple of weeks and there
is one that is 8 months, then you probably need to granulate the big one: break it into
smaller bits.
4.01.09 TASKS OF ONE DAY I don’t believe anything happens that quickly. Especially
4.01.10 MIXED UNITS if you have some durations in days and some in weeks, or
months, the adding up will probably go wrong. The whole point of the network
4.01.11 TOO SERIES OR TOO PARALLEL After a while you just know when a critical path
chart doesn’t look right. It should be a mix of parallel and series tasks. Too liner = too
slow, too parallel = too risky and needs too many resources.
4.01.12 “ONGOING”. All tasks must have a start and a finish. If you can’t do this for a
task and you find yourself wanting to say the forbidden O word then it needs to be
04.02 | TO SKETCH KEY METRICS TO SUPPORT THE VISION, MISSION, AND GOALS
distribution network required understanding the disparate metrics across their key
client accounts. Since each customer scorecard was different, they struggled to
manage the overall business. As a solution, they created a set of metrics to use
customers.
The main reason pre-packaged metrics are ineffective is the uniqueness of each
organization, as defined in their vision, mission, and goals. The more directly you
align your metrics to these aspects, the more meaningful they will be. Individuals will
then clearly understand how the metrics, measuring the performance of the
processes they execute, correlate to and support the overall company’s results and
objectives.
In addition to the reality that pre-packaged metrics rarely work, there’s not much
chance any person or team would have the visibility or understanding required to
create the right set for an organization. As such, an iterative process of defining,
refining, and revising is valuable. This approach increases the likelihood that your
metrics are relevant. It also gets more people involved in the development process,
which results in more of your team having buy-in and insight into the meaning of the
metrics.
REPORT PERFORMANCE
As you’re going through the iterative development process, it’s a good idea to
conduct reality checks against the capabilities of the organization to capture data,
perform calculations, and report against the metrics. The best, most applicable
metrics in the world won’t help if you can’t first accurately capture the data required
timely, meaningful manner. This is usually where Information Technology (IT) can
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elements which may provide what is needed. They may also inform you that the data
simply doesn’t exist. In this case, you need another iteration of the development
APPLICABLE)
Constraint The Task Drivers pane You recently received a new set of tasks to
Type and displays the type of manage. The person who previously managed
Date constraint that is currently the tasks already entered them into Project. As
placed on the task, you modify one of the tasks to reflect a change
including the date in one of the task's dependencies, you run into
associated with the trouble trying to extend the schedule by two
constraint. weeks. You review the Task Drivers pane and
find that the task has a Finish No Later Than
constraint, set to a date that falls in the middle
of the two-week extension.
Summary If you have constraints Your project start date is March 1. You create a
Task placed on a summary task summary task with several subtasks and set a
that affect the dates of the Start No Earlier Than constraint on the
subtasks, the summary summary task with a date of March 10. The
task will be listed in the Task Drivers pane shows the summary task for
Task Drivers pane when the subtasks, because their start dates are
the subtask is selected. being driven by the Start No Earlier Than
constraint on the summary task, as opposed to
the project start date.
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05 | LITERATURE SURVEY
Project management began to evolve in the latter half of the 20th century, partially
manufacturing.
The roots of project management can be seen in the large government projects of
the late 19th century, particularly the transcontinental railroad. Started in the 1860s,
the railroad project required the efforts of thousands of people and used tons of raw
By the early 20th century, Frederick Taylor had revolutionized industrial businesses
by introducing the concepts of managing every phase of a work day for laborers.
Rather than simply asking employees to work harder and longer, Taylor developed
Henry Gantt, an associate of Taylor’s, studied ship construction during World War I
and developed the idea of using bars and charts to graph when certain tasks, or a
Gantt’s work led to project management becoming a separate discipline within the
resources management. By World War II, military and industrial leaders began to
employ more detailed management processes and strategies to get the most from
the labor force, including network diagrams and the Critical Path Method.
Soon, these practices spread across industries. Although the details have changed
depending on the era and the industry, the overarching philosophy has remained the
same: In order to succeed, all the various personnel and systems within a business
The Critical Path Method, known under its acronym CPM, is a way of optimizing the
designed to ensure a project’s completion on time. Since its conception in the 1950s,
CPM has been adapted to the Theory of Constraints and Critical Chain concepts
devised by Israeli physicist Eliyahu Goldratt, but project management itself dates
ANCIENT EGYPT
The origins of project management tools like the Critical Path Method can be traced
back to ancient civilizations. Over 5,000 years ago, the Great Pyramid of Giza, which
stands close to Egypt’s capital city Cairo, was built using over two million blocks of
stone. Each of the blocks weighed around two tons. Archaeologists infer from
ancient Egyptian records of the period that thousands of skilled workers were
organized into four construction teams, one for each face of the pyramid. The 20-
find the correct stones, and then to cut, transport, and set them in place, according to
Lew Ireland, president of the American Society for the Advancement of Project
Management.
GANTT CHART
The use of project management as a modern tool dates from the 1900s with the
creation of the Gantt chart. American mechanical engineers Henry Gantt and
Frederick Taylor designed a graphic method for planning and controlling a work
schedule and recording its progress. The Gantt chart is a type of bar chart where
varying lengths of horizontal bars represent each activity's time span, and the vertical
axis lists the separate activities making up the project. It was used in the 1931
Hoover Dam construction project. Gantt charts are still in use today because they
are easily understood by the whole project workforce. The shortcomings of a Gantt
chart are that it does not show the interrelationships between the activities within a
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The critical path method (CPM) is a project modeling technique developed in the late
Rand. Kelley and Walker related their memories of the development of CPM in 1989.
Kelley attributed the term "critical path" to the developers of the Program Evaluation
and Review Technique which was developed at about the same time by Booz Allen
Hamilton and the US Navy. The precursors of what came to be known as Critical
Path were developed and put into practice by DuPont between 1940 and 1943 and
CPM is commonly used with all forms of projects, including construction, aerospace
engineering, and plant maintenance, among others. Any project with interdependent
activities can apply this method of mathematical analysis. Although the original CPM
program and approach is no longer used, the term is generally applied to any
DUPONT
Starting in 1956, a joint venture between the Dupont chemical company and
computer firm Remington Rand Univac devised the Critical Path Method to tackle the
that the whole project is completed on time. Activities along the path cannot begin
the project and predicts its completion time. The original calculations were made on
the UNIVAC-1 computer. This method was first tested in 1958 on a project to
construct a new chemical plant, and again in 1959 during the maintenance shut
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In 1958, the U.S. Navy’s Special Projects Office, together with aerospace company
Lockheed Missile Systems and consultancy firm Booz Allen & Hamilton, developed
Program Evaluation Review Technique, called PERT, for the Polaris missile
program. Like CPM, it was designed to tackle the interrelationship between the
independently of, Dupont and Remington's CPM analysis. PERT's aim was to control
over 3,000 contractors employed on the missile program. The calculations were
carried out on an IBM computer. PERT was essentially a project road map
identifying major activities and their interrelationships. Unlike Dupont’s CPM, it only
showed time constraints and did not deal with the cost and quality issues faced by
commercial organizations. The driver for PERT was political, not commercial. It was
a tool to ensure the completion the Polaris program during the Cold War when the
U.S. government was concerned about the Soviet Union’s growing number of
nuclear weapons.
THEORY OF CONSTRAINTS
One of CPM’s limitations was that it did not consider non-critical activities that could
introduce risk to a project, such as labor issues over pay, for example. Neither did it
assume that a critical path may change during a project’s duration. In his Theory of
Constraints, Israeli physicist Eliyahu Goldratt wrote that a system can never be
better than its weakest part, so the improvement of a project and its schedule
CRITICAL CHAIN
In 1997, Goldratt introduced the concept of the Critical Chain in a book with that title.
activities, and a rigid project schedule. The Critical Chain method emphasizes the
resources required for a project, in particular costs, and the flexibility required in
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06 | OBJECTIVES OF STUDY
To learn and understand Critical path method and its usage in project
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07 | RESEARCH METHODOLOGY
PRIMARY RESEARCH:
Wikipedia,
PM Hut
SECONDARY RESEARCH:
Qualitative & Quantitative research : Field study & Data from projects during
Survey form was created and was shared online ( on google, linkedin network,
https://docs.google.com/spreadsheet/viewform?fromEmail=true&formkey=dHJHOFV
Gd0ZfZEdDMWNkeENsOE5Oemc6MQ
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Critical Path Method & its significance in project management JARO EDUCATION
08 | ANALYSIS
Please complete the following questionnaire with specific regard to the above
enquiry, by placing a CROSS in the appropriate box
b No
c Don’t Know
d Not Applicable
Result: The majority of people 96% responded that they are aware of Critical Path
method.
Q.2 Have you ever worked on project schedule with Critical path method to
determine project milestones?
a Yes
b No
c Don’t Know
d Not Applicable
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Result: The majority of 54% said they never worked on CPM and 46% people said
they have worked on project schedule with Critical path method to determine project
milestones.
Q.3 Do you think that Critical path method is an important method of calculating
project duration/ & targeting milestones?
a Strongly agree
b Agree
d Disagree
e Strongly disagree
Result: 14 % of the people strongly agree and majority of 78% have agreed that
“Critical path method is an important method of calculating project duration/ &
targeting milestones” . 2% responded that disagree and around 8% were uncertain .
Q.4 “Critical path method is most widely used method for project management”
a Strongly agree
b Agree
d Disagree
e Strongly disagree
Result: 14% of people Strongly agree and majority of people at 66 % of the people
agree that “Critical path method is most widely used method for project
management” . However 14% registered as uncertain/Not applicable, and 6 % of the
people disagree with the statement.
a Excellent
b Good
c Fair
d Poor
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Critical Path Method & its significance in project management JARO EDUCATION
Result: 54% people rate CPM as a good method, 8% people rate it as Excellent
method of project duration determination, about 30% people rate it as fair method of
project duration determination and 6% people responded uncertain/Not applicable.
e Don’t know
f Not applicable
Result: 36% of the people believe “The project manager manages the software
instead of the project.”, over 24% of people under survey selected “Project duration
calculations are sometimes approximate”, 16% registered their answer as option
“You cannot override project management software decisions regarding schedules”.
Around 4% didn’t know about it and 6% of people under survey answered “Not
applicable”
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Critical Path Method & its significance in project management JARO EDUCATION
f Not applicable
Result: 4% of the people believe “It should not be compressed.”, over 8% of people
under survey selected “It allows for looping and branching”, 12% registered their
answer as option “The critical path technique is same as PERT”. Around 48%
responder “It’s the duration of all tasks with zero float.” 24% selected didn’t know
about it and 2% of people under survey answered “Not applicable”.
d Don’t know
e Not applicable
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Q. 9 CPM determines The shortest time in which you can complete a project
a True
b False
c Don’t know
d Not applicable
Result: 82% of the people answered true to “CPM determines The shortest time in
which you can complete a project”, about 8% of people under survey selected “
False ”, 6% selected didn’t know about it and 4% of people under survey answered
“Not applicable”.
Q.10 An effective Critical Path Analysis can make the difference between success and
failure on complex projects. It can be very useful for assessing the importance of problems
faced during the implementation of the plan.
a True
b False
c Don’t know
d Not applicable
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Critical Path Method & its significance in project management JARO EDUCATION
Result: 86% of the people answered true to the question, 12% didn’t know about it
and 2% of people under survey answered “Not applicable”.
Q.11 By definition, the Critical Path consists of the activities that have no float (or slack)
and as such (again, by definition) a delay in any of these activities will cause a delay
to the project’s planned completion date.
a True
b False
c Don’t know
d Not applicable
Result: 78% of the people answered true to the question, about 2% of people under
survey selected “False”, 16% said they don’t know about it and 4% of people
under survey answered “Not applicable”.
Q.12 One of the benefits of CPM is “Few tasks although not marked as forming part of the
critical path, there are other tasks on our schedule that if delayed, will cause a delay
to the project’s completion date”.
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Critical Path Method & its significance in project management JARO EDUCATION
a True
b False
c Don’t know
d Not applicable
Result: 32% of the people answered true to the question, about 40% of people
under survey selected “False”, 26% said they don’t know about it and 2% of
people under survey answered “Not applicable”.
Q.13 Critical Path Method (CPM) is a network analysis technique used to predict project
duration by analysing which sequence of activities (which path) has the least amount
of scheduling flexibility (the least amount of float). Early dates are calculated by
means of a forward pass using a specified start date. Late dates are calculated by
means of a backward pass starting from a specified completion date (usually the
forward pass’s calculated project early finish date).
a Strongly agree
b Agree
d Disagree
e Strongly disagree
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Critical Path Method & its significance in project management JARO EDUCATION
Result: 10% of people strongly agree and majority of people at 52 % of the people
agree that “Critical path method is most widely used method for project
management”. However 36% registered as uncertain/Not applicable.
Q.14 In order to ensure that the project does not miss its deadline, project managers are
encouraged to protect the Critical Path by monitoring progress against plan and
taking corrective and/or mitigating actions in order to ensure critical path activities are
complete on time. In this process enhanced critical path definition is “The Enhanced
Critical Path consists of all the activities with either a ‘0’ float or a ‘0’ Task Resource
Float”.
a True
b False
c Don’t know
d Not applicable
Result: 56% of the people answered true to the question, about 2% of people under
survey selected “False”, 32% said they don’t know about it and 10% of people
under survey answered “Not applicable”.
Q.15 Please Rate Critical Path Method (CPM) in regards to below aspects
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Critical Path Method & its significance in project management JARO EDUCATION
S Criteria
Excel
Good
Poor
Fair
Uncertain
lent
/ NA
#
a Reliability 8
Result:
Excellent 8%
Good 62%
Fair 24%
Poor 0%
Uncertain /NA 6%
b Effective approach to
project prioritization
Result:
Excellent 10%
Good 66%
Fair 18%
Poor 0%
Uncertain /NA 6%
c Effective Role in
optimal decision
making during
preliminary stage of
project.
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Critical Path Method & its significance in project management JARO EDUCATION
Result:
Excellent 10%
Good 68%
Fair 16%
Poor 0%
Uncertain /NA 6%
d Awareness of CPM in
project management
groups
Result:
Excellent 6%
Good 60%
Fair 26%
Poor 4%
Uncertain /NA 4%
e Role in Project
tracking during
execution of project.
Result:
Excellent 6%
Good 46%
Fair 38%
Poor 2%
Uncertain /NA 8%
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09 | FINDINGS,RECOMMENDATIONS
Based on the interview sessions and survey results, CPM is a widely used method in
project management groups, its significantly important and play a major role in the
management of projects.
Project managers /Engineers and people working on relevant field across the
countries & companies; based on the responses of interview and survey questions:
worldwide.
Most of the people in this field have used the method as a planning tool and
they rate the method a first-class technique while determining milestones and
Most people agree that an effective Critical Path Analysis can make the
One of the major setbacks of the method which is sited during my analysis is
When trying to get the job done, our role is to work with the client to develop
execution to the critical path meets the objective. There are times when a
objectives of the project with the direction given to the team. Sometimes, the
much time and budget do you have to accomplish the project? Is there any
flexibility in the Dead-line? Is there any flexibility in the resources available for
the project? This goes back to looking at what is attainable. You want to set a
deadline that is reasonable, given the resources available and the amount of
knowledge and experience you have with this type of project. In addition, you
want everyone involved in the team to clearly know the resource constraints
and deadline so they can act in an empowered fashion to help get the job
done on time, within budget, and with high quality. Clarity about resources is
companies who assign people to the project. While you may not get anyone
to say he wants to see you fail, it is important to recognize that he or she only
Therefore, you need to identify the hidden agendas of the people who are
critical to the project. This is an issue of reading the personalities of the line
managers.
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10 | CONCLUSION
While the need for project management and Critical path method are not new
methodologies have advanced the use of these portals. Many companies have seen
the benefits of a Project scheduling with methods such as CPM, enabling them to
optimize project delivery across their enterprises. This method has allowed them to
effectively plan and manage critical task of projects with priority, delivering the right
information to the right people at the right time for maximum collaboration and
control. With such an immense and measurable impact on projects, CPM will
undoubtedly continue to play a major role for organizations worldwide in the years to
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11 | REFERENCES
http://en.wikipedia.org/wiki/Critical_path_method
http://en.wikipedia.org/wiki/Project_management
http://en.wikipedia.org/wiki/Gantt_chart
http://www.pmhut.com/how-to-analyze-an-ms-project-plan
http://www.pmhut.com/what-is-project-management-2
http://www.pmhut.com/critical-path-with-ms-project
http://www.pmhut.com/effective-approaches-to-project-prioritization
http://www.pmhut.com/how-to-compress-project-schedules
http://smallbusiness.chron.com/history-critical-path-method-55917.html
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12 | FURTHER STUDY
~End of document~
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