- Critical Path Analysis (CPA) is a technique used to plan and manage complex projects by identifying the sequence of activities that must be completed on time in order to complete the project as planned.
- Critical Path Analysis (CPA) is a planning technique that identifies all tasks in a project and puts them in the correct sequence.
- CPA allows project managers to identify the critical path, of a given project.
- The critical path is the series of tasks that must be completed for the project to be completed in the shortest possible time.
- If there are delays in executing tasks that are in the critical path the whole project is delayed even if other non-critical tasks are completed on time
- In most cases, critical path analysis is carried out in the form of what are known as Network Diagrams (we will explain these below)
- CPA can help project managers identify potential bottlenecks and ensure that resources are allocated effectively.
- In most cases, CPA is used to plan and manage projects rather than the normal operations of the business
- Examples of projects that can be managed using CPA include construction projects, a new product launch, or the expansion of a business.
- By using CPA, project managers can reduce the risk of delays, cost overruns, and other challenges that can impact the success of the project.
How to identify the critical path?
- One of the most important uses of Critical Path Analysis is to identify the so-called critical path in a project
- The process of identifying the critical path involves several steps, starting with the identification of the project’s objective.
- After identifying the project’s objective, tasks are put in sequence, and a network diagram is drawn to visualize the project’s structure.
- Once the tasks are in sequence, durations are added to each task to determine how long it will take to complete them.
- Finally, the critical path is identified by determining which tasks have the least amount of flexibility in terms of time, i.e., which tasks must be completed on time to keep the project on schedule.
Network Diagrams and Critical Path Analysis
- A network diagram is a graphical representation of a project schedule that shows the sequence of activities and their dependencies.
- Network diagrams are diagrams used in critical path analysis
- Elements of a network diagram include nodes, which represent activities, and arrows, which represent dependencies between activities.
- Dummy activities are represented by dotted lines in the network diagram and are used to show dependencies that are not actual activities but are necessary to maintain the logical flow of the network.
- The critical path is the sequence of activities that must be completed on time in order to complete the project as planned.
- The earliest starting time (EST) is the earliest time at which an activity can begin, based on the completion of all preceding activities.
- The latest finishing time (LFT) is the latest time by which an activity must be completed in order to avoid delaying the entire project.
- The minimum project duration is the shortest possible time in which the project can be completed, based on the critical path.
- To identify the critical path, one can calculate the EST and LFT for each activity and then determine which sequence of activities has the longest total duration.
- Activities on the critical path are considered critical activities because any delay in their completion will delay the entire project.
- Non-critical activities are activities that can be delayed without affecting the overall project duration.
- For example, in building a new school, activities might include obtaining permits, clearing the land, pouring the foundation, constructing the walls and roof, installing plumbing and electrical systems, and landscaping. The critical path might be the sequence of activities from pouring the foundation to installing the roof, while non-critical activities might include obtaining permits and landscaping.