FUNDAMENTALS OF THE CRITICAL PATH METHOD (CPM)

Critical Path Method (CPM)

As a planning and scheduling tool:

• It is a formal, graphic means of determining the relationship between

the activities (tasks) in a project.

• It enables systematic isolation of activities comprising the critical

elements that set the duration of a project.

• It helps the project manager analyze a project before, during, and after
operations.

The greatest asset of CPM is its portrayal of critical activities, giving the project
manager forewarning of where he or she might expect schedule problems.

About CPM

• The core of CPM is a network diagram that represents the manager's

best effort at efficient planning and scheduling of project activities.

• The network diagram consists of arrows (activities) and circles

(events). Activities represent work and consume resources and time;
events do not, rather they mark points in time when activities begin or finish.
The length of an arrow has no relevance.

• The CPM network has one starting event and one ending event.

• Each activity is bounded by two events, one at the tail (starting point)
and one at the head (ending point).

EVENT ACTIVITY 3 EVENT

MOBILIZE DRILL BORINGS

1 2 3
2 3
j i
j
i
DURATION (DAYS)
The event circles bounding an activity are numbered, the number of the tail event is
that activity's "i" designation; the number of the head event is that activity's "j"
 • designation. By convention, j is numerically higher than i, portraying
left to right movement through the network diagram. The j designation of a
preceding activity is the i designation of the succeeding activity.

• Each activity has a short one to three word name (e.g., Drill Borings)
and a duration; the time, typically in days, for an activity to be completed
(not to be confused with the number of labor hours or days needed to
complete an activity).

• Each activity has a unique i-j designation.

• Dummy arrows (dashed lines) may be needed in a network diagram to

show logic or achieve unique i-j designation for activities; dummy arrows do
not consume resources or time.
DUMMY
A 2 ARROW
A
3
3
1 3 1 0 3

B B
2 2

• Network diagrams flow from left to right with horizontal or vertical

numbering of events. See illustration.

• Analysis of the network diagram will disclose the float time (schedule
flexibility) available for each activity. An activity's Total Float time
represents the delay that can occur in starting the activity without delaying
the overall project; an activity's Free Float time is the delay the activity can
sustain without delaying a subsequent activity.

Eight Fundamental Steps to Using CPM to Manage a Project

1) Identify the activities (tasks) in the project and their durations.

2) Determine for each activity the logic that governs when it can occur, i.e.,
what must precede the activity, what can occur at the same time, and what
must follow (precedence, concurrence, and succession).

3) Draw a network diagram that reflects the best progression of the project
(i.e., order activities in a logical sequence that minimizes project duration).
 For each activity, place the name of the activity above the arrow and the
duration of the activity below the arrow.

4) Determine the earliest event times (EETs) and latest event times (LETs) for
each event in the network diagram.

Compute EETs.

• The EET for Event 1 is 0 (representing the end of day 0 or the

beginning of day 1).

• Trace each activity and add that activity's duration to the preceding
EET. The sum will be the EET for the next event, unless two or
more activities enter that event. IF two or more activities enter an
event, the EET for that event will be the largest of the computed
EETs, SINCE activities leaving that event cannot begin until all
activities entering the event are complete. Place the EET in a box
symbol adjacent to the event symbol.

• Continue the procedure from left to right until reaching the end of
the diagram.

• The EET for the last event is the earliest possible time the entire
project can be completed, given the network as drawn and the
activity durations assigned.

Compute LETs.

• Start from the end of the project and work backwards (against
the arrows).

• The LET of the last event is the same as the last event's EET.
Similarly the LET of the beginning event is the same as the
beginning event's EET.

Trace each activity in reverse and subtract the activity duration from the LET at the
head of the activity. The result will be the LET at the tail of the activity, unless the
tails of two or more activities converge at the

• event. If the tails of two or more activities converge, the LET

at the tail event will be the smallest computed time. To select a
larger LET would delay (extend) the time of the project. Place the
LET in a triangle symbol adjacent to the event symbol.

• Continue from right to left to the beginning of the diagram.

 5) Determine and highlight the critical path (those critical activities that define
the duration of the project). Activities are critical if:

• The EET and LET at the tail of the activity are equal.

• The EET and LET at the head of the activity are equal.

• The difference between the EET (or LET) at the head and the
EET (or LET) at the tail equals the activity duration.

There will be at least one critical path extending from the beginning to the
end of the project.

6) Tabulate activity times (early start, early finish, late start, late finish, total
float, and free float) that can help you schedule resources and identify
schedule flexibility.

• Early Start (ES) = The EET (entered in the box symbol) at the
tail of the activity arrow

• Early Finish (EF) = ES + Activity Duration

• Late Start (LS) = LF - Activity Duration

• Late Finish (LF) = The LET (entered in the triangle symbol) at

the head of the activity arrow

• Total Float (TF) = LS - ES = LF – EF

• Free Float (FF) = EET (at the head) - EF

Interfering float (that which delays a subsequent activity, but not the total
project) equals TF - FF; for a given activity, it is also equal to the difference
between the LET and EET at the head of that activity's arrow.

Independent Float: the time by which an activity can expand without affecting any
other either previous or subsequent.

Free Float: the time by which an activity can expand without affecting subsequent
activities. If it is absorbed at the planning stage the float in earlier activities will be
reduced. Once a project is under way, the free float in an activity can be used
once the tail event is reached without affecting any other activity in the network.

Total Float: the time by which an activity can expand. When total float is
absorbed at the planning stage, the floats in both previous and subsequent
activities may be reduced.
 7) Schedule activities and allocate resources to maximize efficiencies and
minimize project time.

8) During the project, measure progress; taking action where necessary

and modifying the network diagram as needed.

BENEFITS OF THE CRITICAL PATH METHOD (CPM)

♦ Provides graphic representation of the sequence and

interdependency of activities

♦ Enables prediction of project duration

♦ Highlights critical path activities and project float time

♦ Enables detailed planning/scheduling prior to starting

the project

♦ Enables tracking of project activities and timely

response to changed conditions

♦ Can be used for alternatives analysis

♦ Aids in estimating/allocating resources and costs and

visualizing constraints