A Guide to The Critical Path Method (CPM)

What is the Critical Path?

The Critical Path Method (CPM) enables the project Critical Path to be determined.
This is a sequence of activities through a project network from start to finish. There
may be more than one Critical Path depending on workflow logic. A delay to progress
of any activity on the Critical Path will (without acceleration or re-sequencing) cause
the overall project duration to be extended. This is known as a critical delay'.
What is the Critical Path Method (CPM)?
The Critical Path Method is a mathematically based algorithm for scheduling project
activities. It was developed in the 1950s in a joint venture between DuPont
Corporation and Remington Rand Corporation, specifically for managing plant
maintenance projects. Whilst the method was developed for construction, this
method of scheduling can be applied to any project with interdependent activities.
The Critical Path Method, which is also sometimes referred to as Critical Path Analysis
(CPA) method, deduces the critical activities in a programme by tracing the logical
sequence of tasks that directly affect the completion date of the project
It is a methodology or management technique that determines a project's critical
path. CPM provides the following advantages:
1. Determines the time to complete the project and key milestones
2. Allows tracking of critical activities
3. Provides a visual presentation of the project
4. Can incorporate the concepts of random predictions, using (PERT)
CPM models the activities and events of a project as a network. There are two main
types of logic diagrams:
1. Arrow Diagram (AOA)

2. Precedence Diagram (AON)

Arrow diagrams
consist of arrows and nodes plus letters and numbers for labeling and calculation
purposes
Key Steps in Critical Path Method Project Planning
1. Specify activities
2. Establish Activity Sequence
3. Produce network diagram
4. Estimate the completion time for each activity
5. Identify the critical path (longest path through the network)
6. Update the CPM diagram as the project progresses
1. Specify Activities
* Based on the work breakdown structure (WBS), produce a list of all the activities in
the project.
* This listing will be used as the basis for additional sequence and duration
information.
2. Establish Activity Sequence
Determine the correct sequence of the tasks. Do this by asking three questions for
each task:
i. Which tasks must happen before this one can begin?
ii. Which tasks can be done at the same time as this one?
iii. Which tasks should happen immediately after this one?

It can be useful to create a table with four columns:-prior tasks, this task,
simultaneous tasks, following tasks.
3. Produce Network Diagram
Once the activities and their sequencing have been defined, the CPM diagram can be
drawn. CPM originally was developed as an activity on node (AON) network. Now
computers and planning software such as Primavera are used to produce the
Network Diagram. however the principles of AON networks should be understood.
4. Determine Activity Durations
Determine a reasonable time required to complete each activity based on metrics,
past experience or the estimates of knowledgeable persons. It is important to record
how the estimated durations were derived and from what source of information. the
Critical Path Method is a deterministic model that does not take into account
variation in the completion time, so only one number is used for an activity's time
estimate.
5. Identify the Critical Path
Determine the following four parameters for each activity:
i. ES - earliest start time
The earliest time at which the activity can start given that its precedent activities
must be completed first.
ii. EF - earliest finish time
Equal to the earliest start time for the activity plus the time required to complete the
activity.
iii. LF - latest finish time
The latest time at which the activity can be completed without delaying the project.
iv. LS - latest start time
Equal to the latest finish time minus the time required to complete the activity.
The Float (slack time) for an activity is the time between its earliest and latest start
time, or between its earliest and latest finish time. Float is the amount of time that
an activity can be delayed past its earliest start or earliest finish without delaying the
project.
The critical path is the longest-duration path through the network. The activities that
lie on the critical path cannot be delayed without delaying the project. The critical
path is the path through the project network in which none of the activities have
float, that is, the path for which ES=LS and EF=LF for all activities in the path.

To accelerate the project it is necessary to reduce the total time required for the
activities in the critical path.
6. Update the CPM diagram
Update the CPM diagram as the project progresses. The task completion times will be
known and the network diagram can be updated to include this information. A new
critical path can emerge, and structural changes may be made in the network if
project requirements change. This is a key element in managing the project and
fundamental aspect of Change Management.

Critical Path Example: Manually Calculating the

Critical Path
The critical path example consists of demonstrating the forward and backward pass.
The Forward Pass
Calculates ES and EF times
Computes early event time for each node
Move left to right on the diagram below
1. Take the preceding activity early event time and add the duration
2. If more than one activity precedes it then the largest value is recorded
3. Write down trial values
Note the first node always has an early event time of 0

Your example

should now look like this:

The Backward Pass

Calculates LS and LF times
Computes the late event time for each node
From right to left
1. Take the preceding Late event time and subtract duration
2. If more than one activity precedes it then the smallest value is recorded
3. Write down trial values

example should now look like this:

Your

ne Critical Activities
Activities are critical when:
1.Early Event Time & Late Event Time are the same
2.ES and LS & EF and LF time are the same
Applying these rules to our example the Critical Path is as follows:

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Total float notation & calculation

The third part of schedule calculation using the Critical Path Method is the calculation of the Total
Float. Float is the amount of time that the activitys path may be delayed without delaying the
overall project. The diagram below shows where float is placed on the precedence diagram.

To calculate the total float for a Precedence Diagram, subtract the Early Finish Time from the Late
Finish Time.

Once this is accomplished for every activity, then the float calculation portion of the schedule is
complete. The diagram below show the location for the total float and provide an example of a small
schedule with completed total float calculation.

an example diagram that includes total float for a slightly more complex sequence of activities is
shown below. You may notice that the path of activities with the least float (i.e. zero float) is Activity
B and Activity D. These two activities are on the critical path for this small project.

Typically the Late Finish Time for the last activity will be set to the project completion date. If the
float is positive then the critical path may be delayed without running the project past the
completion date. If the float is equal to zero, then any delay to the critical path will result in a delay
to the project. Negative float identifies a critical path that is behind schedule.