Definition of 'Critical Path Analysis'
Definition of 'Critical Path Analysis'
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Critical Path
Term Definition
Critical path analysis or critical path method is a project management technique used to predict project
duration and, therefore, is useful for both project scheduling and resource planning. The Critical path
represents the sequence of tasks or events that directly impact project completing. Project managers can
shorten or at the least control a project's schedule by focusing on critical path tasks. This is referred to as
critical path management.
Understanding the critical path sequence provides you with information on where you have flexibility and
where you do not. On every project there are activities or tasks that have flexibility. The task can start earlier
or later without jeopardizing the completion date. The flexibility between the earliest time that an activity can
be completed and the latest time that it must be completed is referred to as float. By definition if an activity
has float it is not on the critical path.
If your project falls behind schedule you will not want to assign additional resources to non-critical activities,
as this will not result in the project completing earlier. Critical path analysis identifies the tasks that are
dependent upon one another. When the dependent tasks times are added together, you can predict the
longest time necessary to complete the project, which is the critical path. To estimate overall project duration
it is important to know the tasks that can happen independently of one another and those that must be done
in a certain sequence. Therefore, the critical path is the longest sequence of activities with zero float. If an
activity on the critical path is late the entire project will be delayed.
For example, assume that a project is 10 months long. After scheduling the work, you identify the critical
path. There are 15 activities in the critical path of various durations and effort hours. The third activity on the
critical path was estimated to be completed in five days but actually took nine. The project will now take 10
months and 4 days to complete. Delaying the activity by 4 days caused the entire project deadline to go over
by 4 days.
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(sequenced) list.
Create a flowchart or other diagram showing each task in relation
to the others.
Identify the critical and non-critical relationships (paths) among
tasks.
Determine the expected completion or execution time for each
task.
Locate or devise alternatives (backups) for the most critical
paths.
The CPM was developed in the 1950s by DuPont, and was first used in
missile-defense construction projects. Since that time, the CPM has
been adapted to other fields including hardware and software product
research and development. Various computer programs are available
to help project managers use the CPM.
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critical path
Effect of changes
Often we have to predict the effect on the project completion time of a change
in an activity completion time. In general we have the table below indicating
how the overall project completion time is affected by a change in the activity
completion time.
Activity completion
time increases by T
Activity completion
time decreases by T
Activity
critical
non-critical
project completion
project completion
time increases by
time unaffected if
exactly T
T <= float
project completion
time may change
so recalculate
project completion
time increases by
exactly (T-float)
if T > float
project completion
time unaffected
Note here that the above table only holds for a change in the completion time of
a single activity. If completion times for two (or more) activities change the
situation is more complex and we must recalculate the overall project
completion time.
Note too here that if the activity completion time of a critical activity decreases
we may for a small network (via inspection or logic) be able to see whether or
not we need to recalculate. For example, if there is just one critical path and the
completion time of a critical activity reduces by one time unit then (by logic)
the completion time of the overall project must also reduce by one time unit.
Activity On Node (AON) is an activity sequencing tool and also known as Precedence Diagramming Method
(PDM). Activity sequence diagrams use boxes or rectangles to represent the activities which are called as
nodes. The nodes are connected with other nodes by arrows, which shows the dependencies between the
connected activities.
Most of the Project Management Softwares such as MS Project uses this method. This method supports all
four logical relationships i.e Finish-Start (FS), Start-Finish(SF), Finish-Finish(FF) and Start-Start(SS).
This is most preferred method of Activity Sequencing.