Critical Path Method (CPM)

CRITICAL PATH
METHOD
(CPM)
DEFINITION
⚫ Also known as critical path analysis, it is a
technique of project management that is done step
by step to identify activities that would help the
project to be completed on time.
⚫ This takes on a certain approach to scheduling by
defining certain tasks for the project. These are then
displayed in the form of flow charts and help
calculate project duration as per the estimated
duration for every task to be completed. Tasks are
identified to be critical as per time and with respect
to project completion.
HISTORY
⚫ If we look at critical path analysis and its
history, this technique of project modeling was
introduced in the late fifties.
⚫ The method was worked upon by James E.

Kelley Jr. and Morgan R. Walker. Both were
working with reputed companies and together
formed CPM or critical path method in the
year 1989. There was a simultaneous
development of a method called program
evaluation and review technique which can be
called a precursor to critical path project
HISTORY
⚫ Since its introduction critical path
analysis has been used in different projects in
sectors as diverse as aerospace, construction,
defense, research projects, software
development, product development,
engineering and others. It is also called a
mathematical analysis method that can apply to
a project which includes interdependent
activities. The term is used to analyze different
logic diagrams of projects or networks.
IMPORTANCE OF CPM
⚫ There are ways that critical path analysis can
help to make a project successful.
IMPORTANCE OF CPM
1. Shorten Timelines
⚫ In critical path project management, usually
bar charts are used which can help users visualize
the activities of a critical path, task durations and
sequences of the same. When it comes to
software like Smartsheet or Edraw, the tasks of
such path are in red outlines and easy to spot;
they are made to stand out in the timeline of a
project as well as showcases correlation
between the different tasks. Users are able to
know which tasks are important, durations that
need modification and so forth
IMPORTANCE OF CPM
2. Improve Resource Management
⚫ This is another benefit that critical path
analysis provides. It gives enhanced visibility and clear
direction as to what is coming up next and who needs to
work on it. Once critical tasks are identified and assigned
to different people, it helps a project manager to allocate
resources in a better manner
3. Plan Better
⚫ This is another reason why critical path method is
often adopted in project management. It helps to
compare progress as planned with what has been actually
achieved. CPM can identify tasks that are completed, plan
or predict the time required for tasks coming up and
changes planned for future tasks; this results in updates in
schedules often and can help a project timeline to be
monitored efficiently
HOW TO APPLY CRITICAL PATH
METHOD?
⚫ Here is an example that showcases how critical path
method works. It is about science as well as artistic aspects that
are usually part of a project. Project managers need to ensure that
both the approaches blend in to maintain quality of a project as well
as it being completed as per timeline.
⚫ For instance, if a new driveway is being built for a house where a
concrete worker is being employed, the cost of his or her wages as
well as rental of equipment need to be taken into account. An
excavator needs to be rented for a few days and one can set down
the steps for the tasks by using the critical path method. For
instance:
⚫ Divide project as per tasks for completion.
⚫ Estimate tasks as per timeline and resources required.
⚫ Create a network diagram.
⚫ Draw up Gantt or bar chart.
⚫ Level out resources.
⚫ Compress schedule.
PERT VS. CPM
⚫ Two popular methods for project management

are critical path method and PERT. There
are distinct differences and similarities that both
methods provide.
PERT VS. CPM
⚫ Similarities
⚫ In terms of commonalities, both can be
defined as project management
techniques that help plan activities or
monitoring of the same to reach project
timelines or results in time.
PERT VS. CPM
Differences
⚫ PERT is an approach which takes into
account uncertain activities and how to
handle the same in a project timeframe. On
the other hand, CPM is taken on as a
statistical technique where project
management is based on managing activities
that are well defined for a project.
⚫ PERT deals with planning and control
techniques while CPM is about controlling
time and costs.
PERT VS. CPM
Differences
PERT is event oriented while CPM is activity
oriented. The former is mostly event driven
while CPM is activity oriented. Accordingly,
PERT is based on probabilistic modeling while
CPM is a deterministic model.
⚫ Other differences include focusing on time in
PERT, while in CPM it is mostly about time and
cost trade off. While PERT is used mostly for
research and development projects, CPM is
mostly about non research project like ship
building, civil construction and others.

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CRITICAL PATH

⚫ The method was worked upon by James E.

⚫ Two popular methods for project management

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