Critical Path Method

Report on Production And Operations Management(MGT34)

Presented by: Gonzales Gerald
Definition Of CPM

• A step-by-step project management technique to identify

activities on the critical path. It is an approach to project
scheduling that breaks the project into several work tasks,
displays them in a flow chart, and then calculates the project
duration based on estimated durations for each task. It identifies
tasks that are critical, time-wise, in completing the project.
• “The sequence of scheduled activities that determines the
duration of the project.” -Project Management Body of
Knowledge
other explanation

“The critical path is just a fancy way of saying 'How long does
each task take before you can finish the project? Use this
information to figure out the project's end date.' If a task takes
longer than anticipated, the end date is pushed back. There are
some tasks that don't immediately impact the project's end date
that can be pushed back for some time.”
-Rachel Burger, Capterra Construction
Origin

In 1956, James E. Kelley Jr. (of Remington Rand) and Morgan R.

Walker (of DuPont) began developing algorithms for project
scheduling at DuPont(an American chemical company), building
on work that had been done at the company during the Manhattan
Project. The program was first trialled on plant shutdowns in
1957, and they published the first paper on critical path
scheduling in 1959.
Visual Expample of CPM
Advantage of CPM
According to Dr. Bennett
1. Identifies the Most Important Tasks: First, it clearly identifies the tasks that you will have to closely
manage. If any of the tasks on the critical path take more time than their estimated durations, start later than
planned, or finish later than planned, then your whole project will be affected.
2. Helps Reduce Timelines: “If, after the initial analysis predicts a completion time, there is interest in
completing the project in a shorter time frame, it is clear which task or tasks are candidates for duration
reduction,” When the results from a critical path method are displayed as a bar chart, like a Gantt chart, it is
easy to see where the tasks fall in the overall timeframe. You can visualize the critical path activities (they
are usually highlighted), as well as task durations and their sequences. This provides a new level of insight
into your project’s timeline, giving you more understanding about which task durations you can modify, and
which must stay the same.
3. Compares Planned with Actual: “As the project proceeds, the baseline schedule developed from the initial
critical path analysis can be used to track schedule progress. Throughout a project, a manager can identify
tasks that have already been completed, the predicted remaining durations for in-progress tasks, and any
planned changes to future task sequences and durations. The result will be an updated schedule, which,
when displayed against the original baseline, will provide a visual means of comparing planned with actual
progress.”
6 Steps in Critical Path Method
1. Specify Each Activity
- The first step is to identify the main deliverables of a project. Then you
can start breaking down the high-level activities into smaller chunks of
work, by using Work Breakdown Structure.
2. Establish Dependencies (Activity Sequence)
- To correctly identify activities and their precedence, ask yourself these
three questions for each activity on your list from step one:
• Which task should take place before this task happens?
• Which tasks should be finished at the same time as this task?
• Which tasks should happen right after this task?
A Work Breakdown Structure breaks down projects into
manageable sections.
3. Draw the Network
4. Estimate Activity Completion Time
• The estimation method is presented in formulas in order to calculate the time duration more accurately.
These three values identify what happens in an optimal state, what is the most likely, and what
happens in the worst case scenario.
a = the best-case estimate
m = the most likely estimate
b = the worst-case estimate
• Once you’ve identified these values, you can use them in two different formulas. The first is used to
find the Weighted Average, which puts more weight on the “Most Likely” value. The formula is as
below. E stands for Estimate, and the 4 and 6 represent the standard method to place more weight on
the most realistic value.
E = (a + 4m + b) / 6
• The second way of using these values is known as Triangular Distribution. The main difference is that
this method doesn’t put more weight on the “Most Likely” value. The formula is as below. E stands
for Estimate, and the 3 represents the standard method.
E = (a + m + b)/3
5. Identify the Critical Path

• There are two ways you can now identify the critical path. You
can eyeball your network diagram and simply identify the
longest path throughout the network -- the longest sequence of
activities on the path. Be sure to look for the longest path in
terms of longest duration in days, not the path with the most
boxes or nodes.
• You can also identify critical activities with the Forward
Pass/Backward Pass technique, identifying the earliest start and
finish times, and the latest start and finish times for each
activity.
6. Update the Critical Path Diagram to Show Progress

As the project progresses, you will learn the actual activity

completion times. The network diagram can then be updated to
include this information (rather than continuing to use
estimations).

By updating the network diagram as new information emerges,

you may recalculate a different critical path. You will also have a
more realistic view of the project completion due date and will be
able to tell if you are on track or falling behind.
Shortening Your Schedule
• Fast Tracking
In fast tracking, you look at the critical path and decide which activities can
be done parallel to each other, to move the project along faster. You only need to
review the activities on the critical path because all the other activities have float (if
you shorten the duration of those activities, you’re only giving them more float).
While fast tracking reduces your project timeframe, it also involves risk because
you are performing parallel activities that were originally planned to be performed
in sequence.
• Crash Duration
Crash duration, or crashing, refers to the shortest possible time for which an
activity can be scheduled. This happens by adding more resources to completing
that certain activity. However, crashing the critical path results in lower quality of
work because the goal in crash duration is speed.
Difference between CPM
and PERT
Reference
https://www.smartsheet.com/critical-path-method
http://projectmanagementhistory.com/Critical_Path_Analysis.html
https://keydifferences.com/difference-between-pert-and-cpm.html

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