Latest Completion Time (Lc)

6 15 18
CPM Example J(3)

Earliest Start Time (Es)

3 E(9) 12 18
Immediate Duratio 2
Activity
Predecessor n
5 8
A - 3
B - 4
C - 6
D B 3
Lc 0 4

E A 9 Es 0 4
L(3)
B(4) G(4)
F A 1 1 3 6 9
G B 4
H C, D 5 12 27
I C, D 4 D(3) 12 27
J E 3
K F, G, H 6
Forward Pass Backward Pass
L F, G, H 3 Method: I(4) Method:
M I 6 Calculate 7 4 7 21 Calculate with
N J, K 9 with Es 7 11 Lc
The process of determining the Es for all events is called a forward pass.
The process of determining the Lc for all events is called a backward pass.

Let’s get into the forward pass. For this, first, we’ll need to create boxes at all nodes. These are then divided into two. The lower half
of the box represents the earliest start time of the node, while the upper half represents the latest completion time.

For this, we’ll be using the formula, Esj = max (Esi + Dij)
Which when simplified, the earliest start time for the second node (head node), is the maximum of the combination of
the earliest start time of the tail node and the duration between the two nodes.

So,
for node 1,
the earliest start time is always zero. Es1 = 0
For node 2,
it would be, Es2 = 0 (earliest start time for node 1) + 3 (duration between 1 and 2) = 3
For node 3,
it would be, Es3 = 0(Es1) + 4(D1 to 3) = 4
For node 4,
we can see that two arcs connect to it. This means that we’ll need to choose among the largest of the two options
available to us.
Es4 = 0(Es0) + 6 = 6 or
Es4 = 4(Es3) + 3 = 7
We’ll choose 7 since it’s larger.
Similarly, we have three options to choose from when it comes to node 6. Since three arcs connect to it.
Es6 = 3(Es2) + 1(D2-3) = 4
Es6 = 4(Es3) + 4(D3-6) = 8
Es6 = 7(Es4) + 5(D4-6) = 12
Hence we’ll select the last option since it’s the largest among the three.
Now, for node 5.
Since it’s directly connected to node 2, we can directly apply the formula.
Es5 = 3(Es2) + 9(D2-5) = 12
Let’s take node 8.
Es8 = 12(Es5) + 3(D5-8) = 15 or
Es8 = 12 (Es6) + 6(D6-8) = 18
We’ll choose Es8 as 18 since it’s the larger of the two.
Now for node 7.
We can directly apply the formula to these nodes.
Es7 = 7(Es4) + 4(D4-7) = 11
Finally, we’ve got node 9.
It has 3 nodes connecting towards it. We’ll have to choose the maximum of the three.
Es9 = 18(Es8) + 9(D8-9) = 27
Es9 = 12(Es6) + 3(D6-9) = 15
Es9 = 11(Es7) + 6(D7-9) = 17
We’ll choose the arc from node 8 since it’s got the highest value.

And there we go! The Forward pass is complete.

 Let’s take up the backward pass. For that’ we will be using the following formula.
Lci = min(Lcj - Dij)
This, when put simply, means the latest completion time of the tail node is equal to the latest completion time of the
head node minus the distance between the two.
Let’s start from the final node, number 9.
The Lc for this node will always be equal to its Es.
So, Lc9 = 27.
Next, let’s have a look at the latest completion time for the 8th node. Since it’s directly connected only to the 9th
node, we can directly apply the formula mentioned earlier.
Lc8 = 27(Lc9) - 9(D9-8) = 18
Now, let’s have a look at the latest completion time for node 7. Since there’s a direct connection between nodes 9 and
7.
Lc7 = 27(Lc9) - 6(D9-7) = 21
Let’s move on to node 6. As we can see in the diagram, there are two points extending to nodes 8 and 9 from node 6.
So we have two options to choose from.
Lc6 = 18(Ls8) - 6(D6-8) = 12 or
Lc6 = 27(Ls9) - 3(D6-9) = 24
We’ll choose the Lc of node 6 as 12.
We’ll now go to node 5. Since it’s directly connected to the 8th node, we can directly apply the equation.
Lc5 = 18(Lc8) - 3(D5-8) = 15
Next up, let’s find the latest completion time for node 4.
Since there are two connections extending from the node, to nodes 6 and 7 respectively, we’ll need to select the
minimum between the two.
Lc4 = 21(Lc7) - 4(D4-7) = 17
Lc4 = 12(Lc6) - 5(D4-6) = 7
We’ll choose 7 as the latest completion time for node 4.
Now for node 3.
Since there are two nodes connecting from node 3 to nodes 4 and 6. So, we’ll need to choose between the 2.
Lc3 = 12(Lc6) - 4(D3-6) = 8 or
Lc3 = 7(Lc4) - 3(D3-4) = 4
We’ll choose 4 as the latest completion time for node 3.
Let’s now go to node 2. Again, since there are two connections made from 2 to node 5 and 6, we’ll need to choose the
minimum among the two.
Lc2 = 15(Lc5) - 9(D2-5) = 6
Lc2 = 12(Lc6) - 1(D2-6) = 11
We’ll choose the latest completion time of 2, as 6.
And finally, we have node 1.
Since there are connections to 2, 3, and 4 from 1, we’ll need to choose from the three.
Lc1 = 6(Lc2) - 3(D1-2) = 3
Lc1 = 4(Lc3) - 4(D1-3) = 0
Lc1 = 7(Lc4) - 6(D1-4) = 1
We’ll choose 0 as the latest completion time for the node.
And there we go! The backward pass is complete.
Now, for the final step of the critical path method. To determine the critical path, there are three major criteria that
need to be satisfied.
Esi = Lci
Esj = Lcj
Esj - Esi = Lcj - Lci = Dij
From the diagram, we can see that nodes that satisfy the requirements are: 1, 3, 4, 6, 8, and 9.
Hence the activities on the critical path are B - D - H - K - N.

Hence the critical path is B + D + H + K + N = 4 + 3 + 5 + 6 + 9 = 27.

And there we go! We’ve found the critical path!
Pros of Using CPM in Project Management

The pros of using CPM are as follows:

•Effective Communication: All phases of a project's life span must be considered when creating critical path method schedules. The program's
structure becomes more achievable and firm when the skills shared by various team members are integrated.
•Easier to Priorities Tasks: Project managers can more effectively prioritize tasks and estimate the float of each one by determining the critical
path. Float indicates the amount of time a task may be put off before it affects when it will be completed. A lower float indicates a greater
priority.
•Accurate Scheduling: CPM is a popular and dependable methodology for enhancing the precision of project schedules. Several project
managers utilize CPM with the Programmed Evaluation and Review Technique (PERT), which supports teams in estimating overall project
length.
•Better Visualization: Gantt charts and CPM network diagrams, which show critical path timelines, can help project managers understand a
project's timeline and progress more quickly. These visual tools allow them to understand a project's direction more intuitively than a less eye-
catching alternative.

Cons of Using CPM in Project Management

Some of the cons of using the critical path method are as follows:
•Multiple Complexities: Several moving elements and detailed computations are involved in the CPM. The software may automate the
computations, but entering accurate data requires thorough research and leaves room for human error.
•Limited Applicability: Not every project type is suited to the critical path method. Projects requiring creativity, like product design or research
work, that tend to come along in unforeseen forms fail to lend themselves well to CPM.
•Less Understanding of Resources: The critical path method also lacks sufficient understanding of how resource limitations impact project
schedules. The accessibility of equipment or labor resources is not considered in the network diagram or CPM schedule.
❑ Calculating Earliest Start & Earliest Finish

First and foremost, input the duration time of each activity. Next, starting from activity A, calculate the Earliest Start. The Earliest
Start is easy because it is always zero for the first activity. Then, calculate the Earliest Finish by adding the Earliest Start and the
activity duration.
For example, Activity A’s Earliest start is equal to zero because it is the very first activity. The Earliest Finish for activity A is (0 +
2) to equal 2. The next activity’s ES is the Earliest Finish value from its previous activity. But notice what is the Earliest Start
when an activity has two predecessors, as seen in activity G? Activity G’s Earliest Start value is the greater of its predecessors. In
this case, Activity D has a longer Earliest Finish than Activity F, so Activity G’s Earliest Start equals 19.
Lastly, follow this pattern of calculating ES and EF from activity to activity until you reach the end of the process.

❑ Calculating the Latest Start & Latest Finish for the Critical Path Method

Determining LS and LF follows a similar pattern as ES and EF, except you’ll now work from the last activity in the process to the
first.

Start by taking the duration of the project and mark it as the Latest Finish for the last activity in your process. In our example, the
duration of the project is 47 minutes, so activity J’s LF equals 47 minutes. Note: The Earliest Finish and Latest Finish of the last
activity in the process are always the same numbers.

Next, Subtract the activity’s duration from its Latest Finish to calculate its Latest Start. When an activity proceeds two or more
activities like activity G and H&I, the Latest Finish for the next activity equals the smallest of either’s Latest Start.

Lastly, follow this pattern of calculating LF and LS from activity to activity until you’ve reached the start of the process.
Calculating Slack Time:
Slack Time is the easiest thing to calculate now that we have defined the ES, EF, LS, and LF in the
process. Slack Time is simply the Latest Start – Earliest Finish or Latest Finish – Earliest Finish. When
calculating Slack Time, we are looking for activities that equal zero. A Slack Time of zero means any
additional time added to that activity will increase the entire duration of the project. Ultimately, activities
with a zero slack time are the project’s critical path.
How to Crash a Project

In order to crash a project, we must first determine which of these project expedites is worth the cost. To determine
which activity to crash, we must answer yes to each of the following:
1.Is the activity on the Critical Path?
2.Is crashing the activity cost-effective?
To understand if crashing an activity is cost-effective, we calculate the extra cost incurred per minute saved. In other
words, we divide the Crashed Cost (-) Normal Cost from the Normal Duration (-) Crashed Duration. This gives us the
crashed cost per minute for the activity. The most cost-effective crash is the lowest cost per minute of the listed
activities.

IMPORTANT NOTE: You’ll notice how crashing an activity will change the project’s critical path. After each crash,
confirm which activities remain on the critical path before further crashing the project.

After the first activity is crashed, repeat until you achieve the desired duration.
Crashing Jim’s Delay Routine Through the Critical Path Method
Remember, Jim woke up 20 minutes late, so the goal is to crash the project in order to recover the 20 minutes lost.

Based on the above chart, Driving to work (Activity J) is the first activity to crash because it is on the critical path and the cheapest. So Jim
decides he needs to take toll roads to work in order to shave off 10 minutes.

Because activity J is the last activity in the project, crashing J does not change the project’s critical path.

Second, Jim chooses to shave faster than usual to SHAVE off 3 minutes to his daily routine. Doing so now puts both Activities H & I on the
critical path.
Question: Should Jim crash Activity I now that it is on the critical path?
Answer: No. Even though it is on the critical path, Activity J proceeds both H & I. Therefore, crashing Activity I to finish quicker than Activity H
does not decrease the project’s duration.

Third, Jim expedites how quickly he can dress (Activity D) from 4 minutes to 2 minutes since it is on the critical path and is the next cheapest
option at 5 dollars per minute.
Question: Should Jim expedite Activity B?
Answer: No.

Now many of you may think that expediting Activity B is the next obvious choice because it is the next cheapest option on the critical path, but
doing so is a critical error. Notice how the Earliest Finish time for Activity F is 16 minutes, whereas the EF for Activity D is 17. That means as
soon as Activity D drops below 16 EF, the critical path shifts to A-E-F-G-(I/H)-J. To avoid unnecessary costs, crash the cheapest activity that both
paths have in common. In this case, Activity G is the best activity to crash.

Jim crashes all 4 minutes of eating his breakfast, likely because he chowed it down as if in a food competition. This leaves Jim with 1 more minute
to expedite so that he can be at work on time.
Lastly, Activity B (showering) is the next cheapest activity along the critical path. By crashing Activity B, Jim COULD
recover an additional 6 minutes; however, Jim only needs to save 1 minute to get to work on time. In most real-life
scenarios, expediting activities are usually all-or-nothing. In other words, you can save the specified time or see no
improvement; there is no middle ground! But in the case of Jim, he can get away with taking a 9-minute shower, saving
$62.50 in expedited costs.

The Results

And with that, Jim has proven successful in getting to work on time. His boss recognizes his efforts and gives him a
raise. The dream, right?

The chart below shows the activities Jim crashed and the costs of crashing those activities. In total, it cost Jim $152.50
to save 20 minutes. Good thing Jim got a raise to cover those costs.