Project Time Management:

Critical Path Method

Learning Objectives, Part 1
 Understand the importance of project schedules and good
project time management
 Discuss the process of planning schedule management
 Define activities as the basis for developing project schedules
 Describe how project managers use network diagrams and
dependencies to assist in activity sequencing
 Understand the relationship between estimating resources
and project schedules
 Explain how various tools and techniques help project
managers perform activity duration estimates

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Learning Objectives, Part 2
 Use a Gantt chart for planning and tracking schedule
information, find the critical path for a project, and
describe how critical chain scheduling and the Program
Evaluation and Review Technique (PERT) affect
schedule development
 Understand how time management is addressed using
Agile
 Discuss how reality checks and discipline are involved in
controlling and managing changes to the project
schedule
 Describe how project management software can assist
in project time management and review words of caution
before using this software

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Importance of Project Schedules

 Managers often cite delivering projects on time as one

of their biggest challenges
 Time has the least amount of flexibility; it passes no

matter what happens on a project

 Schedule issues are the main reason for conflicts on

projects, especially during the second half of projects

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Individual Work Styles and Cultural Differences
Cause Schedule Conflicts
 One dimension of the Meyers-Briggs Type Indicator
focuses on peoples’ attitudes toward structure and
deadline
 Some people prefer to follow schedules and meet

deadlines while others do not (J vs. P)

 Difference cultures and even entire countries have

different attitudes about schedules

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Media Snapshot
 In contrast to the 2002 Salt Lake City Winter Olympic Games
(see Chapter 4’s Media Snapshot), planning and scheduling was
very different for the 2004 Athens Summer Olympic Games and
the 2014 Sochi Winter Olympic Gmes
 Many articles were written before the opening ceremonies in
Athens predicting that the facilities would not be ready in time. …
the Greeks even made fun of critics by having construction
workers pretend to still be working as the ceremonies began…but
the games cost more than twice the planned budget
 The 2014 Winter Olympic Games in Sochi, Russia, suffered even
greater financial loss and were the most expensive games in
history

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Project Time Management Processes
 Planning schedule management: determining the policies, procedures,
and documentation that will be used for planning, executing, and
controlling the project schedule
 Defining activities: identifying the specific activities that the project team
members and stakeholders must perform to produce the project
deliverables
 Sequencing activities: identifying and documenting the relationships
between project activities
 Estimating activity resources: estimating how many resources a project
team should use to perform project activities
 Estimating activity durations: estimating the number of work periods that
are needed to complete individual activities
 Developing the schedule: analyzing activity sequences, activity resource
estimates, and activity duration estimates to create the project schedule
 Controlling the schedule: controlling and managing changes to the
project schedule

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Figure 6-1. Project Time Management Summary

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Planning Schedule Management
 The project team uses expert judgment, analytical
techniques, and meetings to develop the schedule
management plan
 A schedule management plan includes:

◦ Project schedule model development

◦ The scheduling methodology
◦ Level of accuracy and units of measure
◦ Control thresholds
◦ Rules of performance measurement
◦ Reporting formats
◦ Process descriptions

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Defining Activities
 An activity or task is an element of work normally
found on the work breakdown structure (WBS) that has
an expected duration, a cost, and resource
requirements
 Activity definition involves developing a more detailed
WBS and supporting explanations to understand all the
work to be done so you can develop realistic cost and
duration estimates

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Activity Lists and Attributes
 An activity list is a tabulation of activities to be
included on a project schedule that includes
◦ the activity name
◦ an activity identifier or number
◦ a brief description of the activity
 Activity attributes provide more information such as
predecessors, successors, logical relationships, leads
and lags, resource requirements, constraints, imposed
dates, and assumptions related to the activity

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Milestones
 A milestone is a significant event that normally has no
duration
 It often takes several activities and a lot of work to
complete a milestone
 They’re useful tools for setting schedule goals and
monitoring progress
 Examples include obtaining customer sign-off on key
documents or completion of specific products

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What Went Wrong?
 At the U.S. Federal Bureau of Investigation (FBI), poor time management
was one of the reasons behind the failure of Trilogy, a “disastrous,
unbelievably expensive piece of vaporware, which was more than four
years in the (un)making. The system was supposed to enable FBI agents
to integrate intelligence from isolated information silos within the Bureau.”*
 In May 2006, the Government Accounting Agency said that the Trilogy
project failed at its core mission of improving the FBI’s investigative
abilities and was plagued with missed milestones and escalating costs.
Sentinel replaced Trilogy in 2007.
 During a test exercise in 2011, Sentinel experienced two outages, and the
FBI determined that the current hardware structure was inadequate. In
2014, the system still wasn’t working well.

*Roberts, Paul, “Frustrated contractor sentenced for hacking FBI to speed deployment,”
InfoWorld Tech Watch, (July 6, 2006).

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Sequencing Activities
 Involves reviewing activities and determining
dependencies
 A dependency or relationship is the sequencing of

project activities or tasks

 You must determine dependencies in order to use

critical path analysis

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Three types of Dependencies
 Mandatory dependencies: inherent in the nature of
the work being performed on a project, sometimes
referred to as hard logic
 Discretionary dependencies: defined by the project
team., sometimes referred to as soft logic and should
be used with care since they may limit later scheduling
options
 External dependencies: involve relationships between
project and non-project activities

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Network Diagrams
 Network diagrams are the preferred technique for
showing activity sequencing
 A network diagram is a schematic display of the

logical relationships among, or sequencing of, project

activities
 Two main formats are the arrow and precedence

diagramming methods

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Figure 6-2. Network Diagram for Project X

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Arrow Diagramming Method (ADM)

 Also called activity-on-arrow (AOA) network diagrams

 Activities are represented by arrows
 Nodes or circles are the starting and ending points of

activities
 Can only show finish-to-start dependencies

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Process for Creating AOA Diagrams
1. Find all of the activities that start at node 1. Draw their finish
nodes and draw arrows between node 1 and those finish
nodes. Put the activity letter or name and duration estimate
on the associated arrow
2. Continuing drawing the network diagram, working from left to
right. Look for bursts and merges. Bursts occur when a
single node is followed by two or more activities. A merge
occurs when two or more nodes precede a single node
3. Continue drawing the project network diagram until all
activities are included on the diagram that have dependencies
4. As a rule of thumb, all arrowheads should face toward the
right, and no arrows should cross on an AOA network diagram

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Precedence Diagramming Method (PDM)

 Activities are represented by boxes

 Arrows show relationships between activities
 More popular than ADM method and used by project

management software
 Better at showing different types of dependencies

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Figure 6-3. Task Dependency Types
Task dependency Example Description
Finish-to-start (FS) A diagram of a box labeled A in the top Task (B) cannot start until task (A)
left corner and a box labeled B in the finishes.
bottom right corner. An arrow points
from the right side of box A to the top
side of box B.

Start-to-start (SS) A diagram of a box labeled A above a Task (B) cannot start until task (A)
box labeled B. Box B is more aligned to starts.
the right. An arrow points from the left
side of box A down towards the left side
of box B.

Finish-to-finish (FF) A diagram of a box labeled A above a Task (B) cannot finish until task (A)
box labeled B. Box B is more aligned to finishes.
the left. An arrow points from the right
side of box A and down to the right side
of box B.

Start-to-finish (SF) A diagram of a box labeled A in the top Task (B) cannot finish until task (A)
right corner and a box labeled B in the starts.
bottom left corner. An arrow points from
the left side of box A to the right side of
box B.

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 Figure 6-4. Sample PDM Network
Diagram

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Estimating Activity Resources
 Before estimating activity durations, you must have a
good idea of the quantity and type of resources that will
be assigned to each activity; resources are people,
equipment, and materials
 Consider important issues in estimating resources
◦ How difficult will it be to do specific activities on this project?
◦ What is the organization’s history in doing similar activities?
◦ Are the required resources available?
 A resource breakdown structure is a hierarchical
structure that identifies the project’s resources by
category and type

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Activity Duration Estimating

 Duration includes the actual amount of time worked on

an activity plus elapsed time
 Effort is the number of workdays or work hours

required to complete a task

 Effort does not normally equal duration
 People doing the work should help create estimates,

and an expert should review them

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Three-Point Estimates
 Instead of providing activity estimates as a discrete
number, such as four weeks, it’s often helpful to create
a three-point estimate
◦ an estimate that includes an optimistic, most likely, and
pessimistic estimate, such as three weeks for the optimistic,
four weeks for the most likely, and five weeks for the
pessimistic estimate
 Three-point estimates are needed for PERT and Monte
Carlo simulations

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Developing the Schedule
 Uses results of the other time management processes
to determine the start and end date of the project
 Ultimate goal is to create a realistic project schedule
that provides a basis for monitoring project progress for
the time dimension of the project
 Important tools and techniques include Gantt charts,
critical path analysis, and critical chain scheduling, and
PERT analysis

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Gantt Charts
 Gantt charts provide a standard format for displaying
project schedule information by listing project activities
and their corresponding start and finish dates in a
calendar format
 Symbols include:
◦ A black diamond: a milestones
◦ Thick black bars: summary tasks
◦ Lighter horizontal bars: durations of tasks
◦ Arrows: dependencies between tasks

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Figure 6-5. Gantt Chart for Project X

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 Figure 6-6. Gantt Chart for Software
Launch Project

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Adding Milestones to Gantt Charts
 Many people like to focus on meeting milestones,
especially for large projects
 Milestones emphasize important events or

accomplishments on projects
 Normally create milestone by entering tasks with a zero

duration, or you can mark any task as a milestone

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SMART Criteria
 Milestones should be
◦ Specific
◦ Measurable
◦ Assignable
◦ Realistic
◦ Time-framed

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Best Practice
 Shawn Anchor suggests the 20-second rule in his book, The
Happiness Advantage
 People prefer the path of least resistance. For example, if you
have to wait in line 20 seconds to get a second scoop of ice
cream, you might resist it
 Anchor recommends making it more difficult for yourself to be
distracted at work by keeping email or websites closed while
you are working
 Save time by adding time to the distracting behaviors at work

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 Figure 6-7. Sample Tracking Gantt Chart

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Critical Path Method (CPM)
 CPM is a network diagramming technique used to
predict total project duration
 A critical path for a project is the series of activities
that determines the earliest time by which the project
can be completed
 The critical path is the longest path through the network
diagram and has the least amount of slack or float
 Slack or float is the amount of time an activity may be
delayed without delaying a succeeding activity or the
project finish date

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Calculating the Critical Path
 First develop a good network diagram
 Add the duration estimates for all activities on each

path through the network diagram

 The longest path is the critical path
 If one or more of the activities on the critical path takes

longer than planned, the whole project schedule will

slip unless the project manager takes corrective action

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 Figure 6-8. Determining the Critical
Path for Project X

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More on the Critical Path
 A project team at Apple computer put a stuffed gorilla
on the top of the cubicle of the person currently
managing critical task
 The critical path is not the one with all the critical
activities; it only accounts for time
◦ Remember the example of growing grass being on the critical
path for Disney’s Animal Kingdom
 There can be more than one critical path if the lengths
of two or more paths are the same
 The critical path can change as the project progresses

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Using Critical Path Analysis to Make Schedule
Trade-offs
 Free slack or free float is the amount of time an
activity can be delayed without delaying the early start
of any immediately following activities
 Total slack or total float is the amount of time an

activity may be delayed from its early start without

delaying the planned project finish date
 A forward pass through the network diagram

determines the early start and finish dates

 A backward pass determines the late start and finish

dates

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Figure 6-9. Calculating Early and Late Start and
Finish Dates

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Table 6-1. Free and Total Float or Slack
for Project X
Task Name Start Finish Late Start Late Finish Free Slack Total Slack
A 8/3/15 8/3/15 8/5/15 8/5/15 0d 2d
B 8/3/15 8/4/15 8/3/15 8/4/15 0d 0d
C 8/3/15 8/5/15 8/5/15 8/7/15 0d 2d
D 8/4/15 8/7/15 8/6/15 8/11/15 2d 2d
E 8/5/15 8/11/15 8/5/15 8/11/15 0d 0d
F 8/5/15 8/10/15 8/14/15 8/17/15 7d 7d
G 8/6/15 8/13/15 8/10/15 8/17/15 0d 2d
H 8/12/15 8/19/15 8/12/15 8/19/15 0d 0d
I 8/14/15 8/17/15 8/18/15 8/19/15 2d 2d
J 8/20/15 8/24/15 8/20/15 8/24/15 0d 0d
© Cengage Learning 2016

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Using the Critical Path to Shorten a
Project Schedule
 Three main techniques for shortening schedules
◦ Shortening durations of critical activities/tasks by adding more
resources or changing their scope
◦ Crashing activities by obtaining the greatest amount of
schedule compression for the least incremental cost
◦ Fast tracking activities by doing them in parallel or
overlapping them

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Importance of Updating Critical Path Data

 It is important to update project schedule information to

meet time goals for a project
 The critical path may change as you enter actual start

and finish dates

 If you know the project completion date will slip,

negotiate with the project sponsor

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Critical Chain Scheduling
 Critical chain scheduling
◦ a method of scheduling that considers limited resources when
creating a project schedule and includes buffers to protect the
project completion date
 Uses the Theory of Constraints (TOC)
◦ a management philosophy developed by Eliyahu M. Goldratt
and introduced in his book The Goal.
 Attempts to minimize multitasking
◦ when a resource works on more than one task at a time

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 Figures 6-10.a and b. Multitasking
Example

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Buffers and Critical Chain
 A buffer is additional time to complete a task
 Murphy’s Law states that if something can go wrong, it
will
 Parkinson’s Law states that work expands to fill the
time allowed
 In traditional estimates, people often add a buffer to
each task and use it if it’s needed or not
 Critical chain scheduling removes buffers from
individual tasks and instead creates
◦ a project buffer or additional time added before the project’s
due date
◦ feeding buffers or additional time added before tasks on the
critical path
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 Figure 6-11. Example of Critical Chain
Scheduling

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What Went Right?
 Scheduling at healthcare clinic’s can be more efficient
by using critical chain scheduling
 The National University Hospital in Singapore

decreased patient admission times by more than 50

percent
 See www.goldratt.com for more information

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Program Evaluation and Review
Technique (PERT)
 PERT is a network analysis technique used to estimate
project duration when there is a high degree of
uncertainty about the individual activity duration
estimates
 PERT uses probabilistic time estimates

◦ duration estimates based on using optimistic, most likely, and

pessimistic estimates of activity durations, or a three-point
estimate

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PERT Formula and Example

where optimistic time= 8 days

most likely time = 10 days, and
pessimistic time = 24 days
Therefore, you’d use 12 days on the network diagram instead
of 10 when using PERT for the above example

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Agile and Time Management
 Core values of the Manifesto for Agile Software
Development are
◦ Customer collaboration over contract negotiation
◦ Responding to change over following a plan
 The product owner defines and prioritizes the work to
be done within a spring, so collaboration and time
management are designed into the process
 Teams focus on producing a useful product in a

specified timeframe with strong customer input

 Don’t emphasize defining all the work before

scheduling it
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Schedule Control Suggestions
 Perform reality checks on schedules
 Allow for contingencies
 Don’t plan for everyone to work at 100% capacity all

the time
 Hold progress meetings with stakeholders and be clear

and honest in communicating schedule issues

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Controlling the Schedule
 Goals are to know the status of the schedule, influence
factors that cause schedule changes, determine that
the schedule has changed, and manage changes when
they occur
 Tools and techniques include
◦ Progress reports
◦ A schedule change control system
◦ Project management software, including schedule comparison
charts like the tracking Gantt chart
◦ Variance analysis, such as analyzing float or slack
◦ Performance management, such as earned value (chapter 7)

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Reality Checks on Scheduling
 First review the draft schedule or estimated completion
date in the project charter
 Prepare a more detailed schedule with the project team
 Make sure the schedule is realistic and followed
 Alert top management well in advance if there are

schedule problems

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Working with People Issues
 Strong leadership helps projects succeed more than
good PERT charts
 Project managers should use

◦ empowerment
◦ incentives
◦ discipline
◦ negotiation

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Using Software to Assist in Time Management

 Software for facilitating communications helps people

exchange schedule-related information
 Decision support models help analyze trade-offs that

can be made
 Project management software can help in various time

management areas

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Global Issues
 Microsoft tell the customer story of Mexico’s Secretary
of Economy, who wanted to ensure that IT initiatives
aligned with business goals and improved project
management efficiency
 After implementing new software, their IT team could

handle four times the number of concurrent projects

without adding more staff

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Words of Caution on Using Project
Management Software
 Many people misuse project management software
because they don’t understand important concepts and
have not had training
 You must enter dependencies to have dates adjust

automatically and to determine the critical path

 You must enter actual schedule information to compare

planned and actual progress

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Chapter Summary
 Project time management is often cited as the main
source of conflict on projects, and most IT projects
exceed time estimates
 Main processes include
◦ Plan schedule management
◦ Define activities
◦ Sequence activities
◦ Estimate activity resources
◦ Estimate activity durations
◦ Develop schedule
◦ Control schedule

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