8/18/23, 7:38 PM Critical Path Method (CPM) in Project Management

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Critical Path Method (CPM) in Project

Management
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What Is the Critical Path In Project Management?

What Is the Critical Path Method (CPM)?
CPM vs. PERT
When Should You Use Critical Path Analysis?
What Is the Importance of CPM in Project Management?
Critical Path Diagram
Critical Path Method (CPM) Formula
Critical Path Method Example
Critical Path Method Steps
Benefits of Using CPM In Project Management
CPM Training Video
CPM & Project Management Software
Must-Have Features of Critical Path Software
How to Find the Critical Path with ProjectManager

What Is the Critical Path In Project Management?

In project management, the critical path is the longest sequence of tasks that must
be completed to execute a project. The tasks on the critical path are called critical
activities because if they’re delayed, the whole project completion will be delayed. To
find the critical path, project managers use the critical path method (CPM).
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What Is the Critical Path Method (CPM)?
The critical path method (CPM) is a project management technique that’s used by
project managers to create an accurate project schedule. The CPM method, also
known as critical path analysis (CPA), consists in using the CPM formula and a
network diagram to visually represent the task sequences of a project. Once these
task sequences or paths are defined, their duration is calculated to identify the
critical path.
Related: 12 Free Project Scheduling Templates for Excel
Finding the critical path is very helpful for project managers because it allows them
to:

Accurately estimate the total project duration.

Estimate the time that’s necessary to complete each project task.
Identify critical activities which must be completed on time and require close
supervision.
Find out which project tasks can be delayed without affecting the project
schedule by calculating slack for each task.
Identify task dependencies, resource constraints and project risks.
Prioritize tasks and create realistic project schedules.

Once done by hand, the critical path can now be calculated automatically with
project scheduling software equipped with Gantt charts, which makes the CPM
method much easier. ProjectManager is project management software that helps you
quickly implement the critical path method. Build a project schedule on our award-
winning Gantt chart, then simply filter for the critical path. When it’s time to execute,
your team can collaborate with a task list, kanban board or calendar. And you can
track everything with dashboards and reports to ensure you stay on track. Get
started today absolutely free.

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ProjectManager can calculate the critical path for you on our award-winning
Gantt charts—learn more.
The critical path method was developed in the late 1950s by Morgan R. Walker and
James E. Kelley. The origins of the critical path method are closely related to the
Program Evaluation and Review Technique (PERT), a similar method that is commonly
used in conjunction with CPM in project management.

CPM vs. PERT

The critical path method (CPM) and program evaluation and review technique (PERT)
are both project scheduling techniques. But they aren’t interchangeable. We’ve been
talking about CPM, but before we compare it to PERT let’s define the term.
PERT is used to get accurate time estimates for complicated projects. It uses an
algorithm to calculate the estimated duration for unpredictable activities. It focuses
on events and milestones on a PERT chart with nodes in the wireframe when
developing projects.
However, while these are two different techniques, PERT and CPM can be used
together for project planning and scheduling. The difference between them lies in
that PERT is about time planning and time management, while CPM is about time and
budgeting. PERT delivers a project quickly and CPM gets the project done on budget
and on time
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 and on time.
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Now that we know what’s the critical path of a project, we can learn about the critical
path method (CPM), an important project management technique that’s based on
this concept.

When Should You Use Critical Path Analysis?

Critical path analysis is another way of referring to the critical path method. As noted,
it’s used by industries with complex projects, such as aerospace, defense,
construction and product development.
Therefore, critical path analysis is a crucial first step in developing a project schedule.
It’s done early in the life cycle of a project, usually in the planning phase, but it’s not
unheard of to have CPM as part of a project proposal before the project has been
approved.
By understanding which are the critical tasks in a project you can focus on getting
those done if time, resources and costs are an issue. Knowing this in advance of
executing a project will help you deliver that project successfully.
Related: Free Project Plan Template

What Is the Importance of CPM in Project

Management?
Projects are made up of tasks that have to adhere to a schedule in order to meet a
timeline. It sounds simple, but without mapping the work, your project scope can
quickly get out of hand and you’ll find your project off track.
Using the critical path method is important when managing a project because it
identifies all the tasks needed to complete the project. It then determines the tasks
that must be done on time, those that can be delayed if needed and how much float
or slack you have.
When done properly, critical path analysis can help you:

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8/18/23, 7:38 PM Critical Path Method (CPM) in Project Management

Identify task dependencies, resource constraints and project risks

Accurately estimate the duration of each task Start free trial
Prioritize tasks based on their float or slack time, which helps with project
scheduling and resource allocation
Identify critical tasks that have no slack and ensure those are completed on
time
Monitor your project progress and measure schedule variance
Use schedule compression techniques like crash duration or fast tracking

Critical Path Diagram

As you can see in this critical path diagram, project activities are represented by
letters and the critical path is highlighted in green. Tasks F, G and H are non-critical
activities with float or slack. We can also identify task dependencies between the
critical path activities, and also between activities (A, F and G) or (A, H and E), which
are parallel tasks.

Critical Path Method (CPM) Formula

Before we learn how to use the CPM formula, we need to understand some key CPM
concepts.

Earliest start time (ES): This is simply the earliest time that a task can be started
in your project. You cannot determine this without first knowing if there are any
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8/18/23, 7:38 PM Critical Path Method (CPM) in Project Management

task dependencies
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Latest start time (LS): This is the very last minute in which you can start a task
before it threatens to delay your project timeline
Earliest finish time (EF): The earliest an activity can be completed, based on its
duration and its earliest start time
Latest finish time (LF): The latest an activity can be completed, based on its
duration and its latest start time
Float: Also known as slack, float is a term that describes how long you can
delay a task before it impacts its task sequence and the project schedule. The
tasks on the critical path have zero float because they can’t be delayed

The critical path method formula has two parts; a forward pass and a backward pass.
Forward Pass in CPM
Use the CPM diagram and the estimated duration of each activity to determine their
earliest start (ES) and earliest finish (EF). The ES of an activity is equal to the EF of its
predecessor, and its EF is determined by the CPM formula EF = ES + t (t is the
activity duration). The EF of the last activity identifies the expected time required to
complete the entire project.
Backward Pass in CPM
Begins by assigning the last activity’s earliest finish as its latest finish. Then the CPM
formula to find the LS is LS = LF – t (t is the activity duration). For the previous
activities, the LF is the smallest of the start times for the activity that immediately
follows.

Critical Path Method Example

Let’s take a look at a critical path example to better understand how the critical path
method is used in project management. Although it’s high-level, it can help you
visualize the meaning of a CPM schedule.
We’ll use this critical path diagram to explain the elements that make up the critical
path analysis process. To keep things simple, we’ve already done the calculations for
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8/18/23, 7:38 PM Critical Path Method (CPM) in Project Management

this example using the CPM formula.

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The above critical path method example shows the critical path for getting a website
online. All the tasks that are scheduled to build and launch the website are shown in
the rectangular nodes.
Some of the tasks are being done at the same time as others. For example, the work
on defining a target market is being done as the design is being done and the
content for the site is being drafted.
However, not all these tasks are equally important. Some aren’t critical to getting the
site live by the deadline. That’s where the critical path comes in. It has identified by
the colored arrows all the tasks that must be done in order to complete the project
plan on time.
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Critical Path Method Steps
Now that you know the key concepts of the critical path method, here’s how to
calculate the critical path in 8 steps.
1. Collect Project Activities
Use a work breakdown structure to collect all the project activities that lead to the
final deliverable.
2. Identify Task Dependencies
Determine which tasks are dependent on other tasks before they can begin. Use
your judgment and your team members’ feedback. Failing to define task
dependencies correctly makes the critical path method useless.
3. Create a Critical Path Diagram
A CPM diagram or network diagram, depicts the order of activities.
4. Estimate the Timeline
To use the critical path method, you’ll need to estimate the duration of each task.
Use data from past projects and other sources of information such as subject matter
experts.
5. Use the Critical Path Formula
The critical path uses an algorithm, also referred to as the CPM formula. That
algorithm has two parts, the forward pass and the backward pass. The forward pass
is determined by using the earliest start for each activity (ES) and the earliest finish
(EF). The ES of an activity equals the EF of the one before it. The EF is calculated by
EF = ES + t (the duration of an activity).
The backward pass assigns the last activity’s EF as its latest finish. Then use the
CPM formula to find the LS, which is LF – t. For the activities before that, LF is the
smallest of the start times for the next activity.
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6. Identify the Critical Path Start free trial

The activities with 0 float make up the critical path. All of these critical path activities
are dependent tasks except for the first task in your CPM schedule. All project tasks
with positive slack are parallel tasks to the critical path activities.
7. Revise During Execution
Continue to update the critical path diagram as you go through the project execution
phase. These critical path analysis steps determine what tasks are critical and which
can float, meaning they can be delayed without negatively impacting the project
schedule. Now you have the information you need to plan the critical path schedule
more accurately and have more of a guarantee you’ll meet your project deadline.
You also need to consider other changes or constraints that might change the
project schedule. The more you can account for these unexpected events or risks,
the more accurate your critical path schedule will be. If time is added to the project
because of these constraints, that’s called a critical path drag, which is how much
longer a project will take because of the task and constraint.

Benefits of Using CPM in Project Management

There are many reasons to use the critical path method. It’s a great project
management tool to help you deliver your project on time and within budget, but
we’ve already discussed that at length. Here are some other benefits of using CPM.
Critical Path Analysis Improves Team Communication
It fosters better communication within the project team. Everyone is involved in
providing input and that brings the expertise of various project team members
together for the better good of the project as a whole. This includes subcontractors,
architects, electricians, construction managers, etc.
CPM Helps Prioritize Tasks
Naturally, having determined the critical path is going to help you prioritize your work.
You know the tasks that must be done and that gives you wiggle room if there are
issues with time or cost. You might not get every activity done, but you’ll get the
ones finished that are critical to the project
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 ones finished that are critical to the project.
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CPM & PERT Help Create Accurate Schedules
The critical path method will help you make a more accurate project schedule,
especially when you use it in conjunction with PERT charts. You can estimate better
and discover areas of risk and prepare to respond to them to avoid costly delays.
CPM & Gantt Charts Help Map Out Project Plans
Another benefit is the visual nature of CPM, especially when mapped on the timeline
of a Gantt chart. Having a visual element to communicate the project schedule is
always a plus. Not everyone absorbs information in the same way. Visual tools help
teams better understand what’s expected of them and when it’s expected.

CPM Training Video

Do you still have questions about the critical path method? In this video, Jennifer
Bridges PMP, explains how to find the critical path using a CPM diagram.

CPM & Project Management Software

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8/18/23, 7:38 PM Critical Path Method (CPM) in Project Management

As stated, the critical path method (CPM) was first invented in the late 1950s. During
those times, project scheduling software didn’t exist, and project
Startmanagers
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calculate the critical path manually.
Fortunately, today there are many project management software alternatives that
can help with the critical path process. Most of them use Gantt charts to represent
CPM diagrams and calculate the critical path, but their feature sets vary greatly. One
of the most commonly used project management software to identify the critical path
is Microsoft Project. However, it has major drawbacks that make ProjectManager a
better choice.
Here are some of the main features that you’ll need as a project manager to properly
use the critical path method for your scheduling process.

Must-Have Features of Critical Path Software

DEPENDENCIES DASHBOARDS
LIVE DATA PLANNED VS. ACTUALS
BASELINES REPORTS

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Link Tasks and Avoid

Bottlenecks
Tasks that are dependent on another need to be a part of your critical path
calculation. There are four types: those that are start-start, start-stop, stop-
start and stop-stop. By identifying these task dependencies, you can avoid
bottlenecks later in the project.

How to Find the Critical Path With ProjectManager

Figuring out the critical path by hand takes time, and it must be done throughout the
project, which is why using project management software streamlines the process.
ProjectManager is award-winning software that automates the critical path method
process for you.
Our online Gantt chart filters for critical path, links dependent tasks and is integrated
into a full project management software. Sign up for a free 30-day trial of our
software and follow along to build a dynamic Gantt chart and automatically calculate
your critical path in a few easy steps.
1. Start a Project With a Gantt Chart
Managing a project on Gantt charts allows you to both plan and schedule in one
place. Add your tasks and their durations, and they’ll automatically appear on a
project timeline, allowing you to see your whole project at once.
In the software, upload your tasks manually or upload a pre-existing spreadsheet.
Add task descriptions, deadlines, priority, tabs and assign them to one or more team
members. We also provide templates to help you get started.

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2. Add Task Dependencies

In the software, connect your dependent tasks on the Gantt chart by dragging one
onto the other. You’ll see a dotted line indicating that the tasks are linked, and you
can then define the type of dependency it is.
3. Set the Project Baseline
Setting the baseline is possible when you’ve finished making your project schedule,
complete with deadlines and costs. The baseline captures your data and uses it to
compare against your actual progress.
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On the Gantt chart, create your baseline for the project by adding the start date to
the task and when it’s due to be completed. These planned startStartand
freeend
trial dates will
be compared to your actual project data and show you whether you’re on target.
4. See the Critical Path
Easily find the critical path of your project by using our critical path filter. This helps
you know what must be done to complete the project and shows if you’re
experiencing any slippage.
5. See Your Overview With a Dashboard
Now that you’ve got your project planned out, viewing it from a dashboard is the best
way to get a high-level view of your progress.
From the dashboard view, track if your project is proceeding as planned. Our
dashboard monitors several project metrics, such as variance, tasks and more,
automatically calculating your data to display it in easy-to-read charts and graphs.

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6. Report on Progress
Reporting is crucial to pull data from your project and get and share insights into how
it’s doing. Reports come in many varieties, which together provide a snapshot of the
whole project’s performance.
Easily generate reports on the critical path, task progress, project status, costs and
more in the software. We do the calculations for you, and you can filter the results to
show just what you want to see. Our reporting feature is done automatically with one
click.

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ProjectManager is an online tool that gets real-time data to determine how accurate
your planned schedule is to the actual one, so you can adjust immediately if
necessary. See how it can help your project by taking this free 30-day trial.

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Critical Path Method Resources
Software
Critical Path Software
Project Scheduling Software
Gantt Chart Software
Project Management Software

Templates
Work Breakdown Structure (WBS) Template
Gantt Chart Template
Work Schedule Template
Project Scope Template

Articles
Top 10 Project Management Methodologies: An Overview
3 Free Tools for Making Network Diagrams
Project Scheduling Guide
The Ultimate Guide to Gantt Charts
What Is a Work Breakdown Structure?
PERT and CPM: Their Differences and How to Use Them Together

External Articles
The ABCs of the Critical Path Method – Harvard Business Review
Understanding the Basics of CPM Calculations – PMI
What Is the Critical Path in Project Management? – Elmhurst University

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