CRITICAL PATH METHOD.

1. What is CPM?

Critical Path Method (CPM) is an algorithm for planning, managing and analyzing the timing of a
project. The step-by-step CPM system helps to identify critical and non-critical tasks from
projects’ start to completion and prevents temporary risks.

Critical tasks have a zero run-time reserve. If the duration of these tasks changes, the terms of
the entire project will be “shifted”. That is why critical tasks in project management require
special control and timely detection of risks.

2. How it was created?

Using the critical path method to schedule projects began in the late 1950s, with two
simultaneous, unrelated projects. The US Navy’s Fleet Ballistic Missile (Polaris) Program was
behind schedule and needed help resolving the problem. The suggested solution was to divide
the project into several thousand tasks, represent each task by an arrow, connect the arrows in
proper sequence, estimate the duration of each task, and calculate the project duration and the
degree of schedule criticality of each task.

At about the same time, the EI DuPont de Nemours Company, an American chemical company,
was experiencing delays in its plant turnarounds, a project to rearrange production facilities for
different products. They, too, needed help and the proposed answer was similar to that of the
Polaris Program.

The developers of the Polaris Program’s approach called their solution the Project Evaluation
and Review Technique (PERT), while the DuPont method was called Critical Path Method (CPM).
Although these methods are similar, they used different techniques for estimating task duration.

3. Purposes of using CPM.

 Helps to identify the activities that must be completed on time in order to complete
the whole project on time.
 Shows which tasks can be delayed and for how long without impacting the overall
project schedule.
 Calculates the minimum amount of time it will take to complete the project.
 It can tell us the earliest and latest dates each activity can start on in order to
maintain the schedule.

4. The steps of the CPM.

A) SPECIFY EACH ACTIVITY

The first step is to identify the main deliverables of a project. Then you can start breaking down
the high-level activities into smaller chunks of work.

A work breakdown structure breaks down projects into manageable sections.

We need to identify each activity (or task) involved in the project. We have to make an activity
specification list, should only include higher-level activities, that means, the activities that
requires more time and concentration, because if we put detalied activitites the CPM may
become too complex to manage.
B) ESTABLISH DEPENDENCIES (ACTIVITY SEQUENCE)

Some activities will depend on others being completed. Listing the immediate predecessors of
each activity will help identify the correct order.

To correctly identify activities and their precedence, there are three questions that will hep us
identify them:

 Which task should take place before this task happens?

 Which tasks should be finished at the same time as this task?
 Which tasks should happen right after this task?

C) DRAW THE NETWORK DIAGRAM

Draw the critical path análisis path, known as the network diagram. The network diagram is a
visual representation of the order of your activities based on dependencies.

D) ESTIMATE COMPETITION TIME

Estimate the time required to complete each activity. If it is a smaller project, it will most likely
to estimate time in days. If it is a complex project, it will be better to measure time in weeks.

Also, the 3-point estimation method, can help us stimate a proper time to each activity.

In three-point estimation, there have to be three time estimates for every task, based on prior
experience or best guesses. The estimation method is presented in formulas in order to calculate
the time duration more accurately.

a = the best-case estimate

m = the most likely estimate

b = the worst-case estimate

These three values identify what happens in an optimal state, what is the most likely, and what
happens in the worst case scenario.

The estimations of time can be use in two different formulas. The first is used to find the
Weighted Average, which puts more weight on the “Most Likely” value. The formula is as below.
E stands for Estimate, and the 4 and 6 represent the standard method to place more weight on
the most realistic value.

E = (a + 4m + b) / 6

The second way of using these values is known as Triangular Distribution. The main difference
is that this method doesn’t put more weight on the “Most Likely” value. The formula is as below.
E stands for Estimate, and the 3 represents the standard method.

E = (a + m + b)/3

E) IDENTIFY THE CRITICAL PATH

Visualize the network diagram and simply identify the longest path throughout the network: the
longest sequence of activities on the path. It has to be the longest path in terms of longest
duration in days, not the path with the most boxes or nodes.
If there are multiple critical paths, there will be a network "sensitivity". A project schedule is
considered sensitive if the critical path is likely to change once the project begins. The more
critical paths in a project, the higher the probability of a change in schedule.

F) UPDATE THE CRITICAL PATH DIAGRAM TO SHOW PROGRESS

As the project progresses, we can know the actual activity completion times. The network
diagram can then be updated to include this information (rather than continuing to use
estimations).

By updating the network diagram as new information emerges, you may recalculate a different
critical path. You will also have a more realistic view of the project completion due date and will
be able to tell if you are on track or falling behind.

5. Examples

NUMBER ONE – ADMINISTRATIVE EXAMPLE

NUMBERO TWO – INDUSTRY EXAMPLE

6. Benefits
 Identifies the Most Important Tasks: It clearly identifies the tasks that will have to closely
manage. If any of the tasks on the critical path take more time than their estimated
durations, start later than planned, or finish later than planned, then your whole project
will be affected.
 Helps Reduce Timelines: CPM provides a new level of insight into the project’s timeline,
giving more understanding about which task durations can be modify, and which must
stay the same.
 Compares Planned with Actual: The critical path method can also be used to compare
planned progress with actual progress.
 Assesses the risks.
 Helps in team members distribution.
 Helps the team stay focused on the main thing.
 Using CPM, a company can transfer less important tasks and focus their efforts on
optimizing their work.

7. Limitations

For large and complex projects, there’ll be thousands of activities and dependency relationships.
Without software it can be mighty difficult managing this.

If the plan changes during project execution then the precedence diagram will have to be
redrawn.

8. Conclusions

This method has allowed companies to effectively plan and manage critical task of projects with
priority, delivering the right information to the right people at the right time for maximum
collaboration and control. With such an immense and measurable impact on projects, CPM Will
 undoubtedly continue to play a major role for organizations worldwide in the years tocome,
transforming business.

9. Bibliography :D

https://www.academia.edu/2385919/Critical_Path_Method_and_its_significance_in_project_
management

https://hygger.io/blog/what-is-critical-path-method-for-in-project-management/

https://www.smartsheet.com/critical-path-method

https://www.project-management-skills.com/critical-path-method.html

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