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Critical Path Method - CPM - Reference Material

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Critical Path Method - CPM - Reference Material

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Critical Path Method (CPM)

Introduction:

The Critical Path Method (CPM) is a project management tool used to determine the sequence of
activities that are critical for the project’s completion. Developed in the late 1950s by DuPont and
Remington Rand, CPM helps project managers identify the longest stretch of dependent activities
and measure the time required to complete them from start to finish.

Key Concepts:

1. Activities and Tasks:

- Activity: A specific, definable piece of work that needs to be done.

- Task: Smaller components of an activity.


2. Dependencies:

- Predecessor: An activity that must be completed before another activity can start.

- Successor: An activity that cannot start until another activity is completed.

3. Critical Path:

- The longest path through the project network diagram.

- Determines the shortest possible project duration.

- Any delay in critical path activities delays the entire project.

4. Float (or Slack):

- The amount of time an activity can be delayed without delaying the project.

- Total Float: The total time an activity can be delayed without affecting the project completion
date.

- Free Float: The time an activity can be delayed without affecting the start date of subsequent
activities.

5. Early Start (ES) and Early Finish (EF):

- ES: The earliest time an activity can start.

- EF: The earliest time an activity can finish.

6. Late Start (LS) and Late Finish (LF):

- LS: The latest time an activity can start without delaying the project.

- LF: The latest time an activity can finish without delaying the project.

Steps to Implement CPM:

1. List Activities:

- Identify all activities required to complete the project.

2. Determine Dependencies:

- Establish the sequence of activities and their dependencies.

3. Draw the Network Diagram:

- Create a visual representation of the activities and their dependencies using nodes (activities) and
arrows (dependencies).

4. Estimate Activity Durations:

- Assign time estimates to each activity.

5. Calculate Early Start and Finish Times:

- Use a forward pass through the network to determine ES and EF for each activity.
6. Calculate Late Start and Finish Times:

- Use a backward pass to determine LS and LF for each activity.

7. Identify the Critical Path:

- Highlight the longest path through the network with no float, identifying the critical activities.

Advantages of CPM:
- Improved Planning and Scheduling: Provides a clear roadmap of project activities and their
dependencies.

- Better Resource Allocation: Helps in identifying critical activities that require focused resources.

- Enhanced Control: Facilitates monitoring of project progress and timely identification of potential
delays.

- Time Management: Helps in determining the minimum project duration and understanding the
impact of delays.

Disadvantages of CPM:
- Complexity: Can be complex for large projects with many activities.

- Assumptions: Relies on accurate time estimates, which can be challenging.

- Static: Does not easily accommodate changes once the project has started.

Applications of CPM:
- Construction Projects: To schedule and control construction activities.

- Software Development: To manage development timelines and dependencies.

- Event Planning: To ensure timely completion of events.

- Manufacturing: To optimize production schedules.

Youtube URLs:

https://youtu.be/rq5nedNYaXE?si=sVhrRuKiXCGMdnqO

https://youtu.be/rxGcV0tuxRU?si=aejFRETSsbmum6O3

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https://youtu.be/HbynnR0VN10?si=v6tBEpK65lTiTuhx
Conclusion

The Critical Path Method is a powerful tool for project managers to plan, schedule, and control
project activities. By understanding the critical path and managing dependencies, project managers
can ensure timely project completion and efficient resource utilization.

Example:

Consider a simple project with the following activities and durations:

| Activity | Duration (days) | Predecessors |

|----------|------------------|--------------|

|A |3 |- |

|B |2 |A |

|C |4 |A |

|D |3 | B, C |

|E |1 |D |

Network Diagram:

A (3) --> B (2) --> D (3) --> E (1)

\--> C (4) --/

Calculations:

1. Forward Pass:

| Activity | ES | EF |

|----------|----|----|

|A |0 |3 |

|B |3 |5 |

|C |3 |7 |

|D | 7 | 10 |

|E | 10 | 11 |

2. Backward Pass:
| Activity | LS | LF |

|----------|----|----|

|E | 10 | 11 |

|D | 7 | 10 |

|B |3 |5 |

|C |3 |7 |

|A |0 |3 |

Critical Path:

The critical path is A → C → D → E, with a total duration of 11 days.

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