AACE INTERNATIONAL
diagram (as discussed in the following sections) is prepared
and the work scheduled, the display of relationships between
the activities can be turned off or masked. This masking pro-
duces a bar chart, at any level of the project schedule, which
can be used as a communication tool for the most complex
and largest of projects.
Critical Path Method (CPM)
The disadvantages of manually developed bar charts, cou-
pled with other disadvantages that became evident during
the mid-1950s, set the stage for development of network-
based project management methodology. One of the meth-
ods that emerged to overcome these weaknesses was critical
path scheduling. The critical path method (CPM) is a sched-
uling technique using arrow, precedence, or PERT diagram-
ming methods to determine the length of a project and to
identify the activities and constraints on the critical path.
The critical path method enables a scheduler to do the fol-
lowing:
• Determine the shortest time in which a program or proj-
ect can be completed.
• Identify those activities that are critical and that cannot
be slipped or delayed.
• Show the potential slippage or delay (known as float)
available for activities that are not critical.
The critical path method (CPM) was designed for, and is use-
ful on, projects where the duration of each activity can be
estimated with reasonable certainty; it predicts how long an
endeavor will take to complete. It also identifies the activities
that control the overall length of the project. CPM is widely
used in the process industries, construction, single industrial
projects, prototype development, and for controlling plant
outages and shutdowns.
CPM computer software, known also as project management
software, allows for the assignment of resources to activities.
Assigning resources to the activities and allowing the
resources to accomplish their assigned work based on their
availability provides another variable in the overall project
duration. Since the software has this capability, CPM net-
working is also used by industries with fixed pools of
resources such as maintenance and information technology
projects.
Project Evaluation Review Technique (PERT)
Project evaluation review technique (PERT) is a probabilistic
technique, used mostly by government agencies, for calculat-
ing the “most likely” durations for network activities.
During development of the Navy’s Polaris Missile Program
in the late 1950s, the team had no historical basis to draw
upon when estimating the length of time it would take to
accomplish certain tasks. For each of the activities, the devel-
13.3
SCHEDULING
GLOSSARY TERMS IN THIS CHAPTER
activity ◆ activity description ◆ activity identification
arrow diagramming method (ADM) ◆ backward pass
bar chart ◆ calendar days ◆ constraints ◆critical path
critical path method (CPM) ◆ early finish (EF)
early start (ES) ◆ forward pass ◆ free float ◆ gantt chart
late finish (LF) ◆ late start (LS) ◆ original duration (OD)
overlapping scheduling technique ◆ PERT diagram
planning ◆ precedence diagramming method (PDM)
network ◆ milestone ◆ relationships; remaining duration
schedule calendar ◆ schedule update ◆ scheduling
scheduling levels ◆ status ◆ target schedule
time scaled network ◆ total float
work breakdown structure (WBS) ◆ work days (WD)
opers of PERT estimated a best or shortest time, worst or
longest time, and the most probable time to accomplish the
tasks defined. Concurrent with the PERT network develop-
ment, the team also developed computer software to run a
probability analysis to arrive at a “most likely” duration for
each activity and the overall project.
PERT is considered an indeterminate process for activity and
project durations, while CPM is considered a deterministic
process.
The network of activities developed for PERT are similar to
the arrow diagramming method (ADM) and precedence dia-
gramming method (PDM) networks. Because of the similari-
ty and resemblance of a CPM network to PERT, the term
PERT has been used as a synonym for CPM.
Discussion of CPM
The most commonly used scheduling method and the tech-
nique that will meet your project objectives is CPM incorpo-
rating overlapping logic.
CPM is a scheduling technique using arrow or precedence
diagrams (networks) to determine the length of a project and
to identify the activities and constraints on the critical path.
The critical path is defined as the longest chain or chains of
activities, in terms of time or duration, through a network.
Two basic methods of critical path scheduling are the following:
• the arrow diagramming method (ADM) (also called
activity-on-arrow, or the “i” - “j” method), and
• the precedence diagramming method (PDM) (also called
activity-on-node).
Arrow Diagramming Method (ADM)
In arrow diagramming, the nodes in the network are the