Week 8

Project Management

Critical Path Method

CPM

Wiediartini, SE, MT

@ PPNS,
2011
 NETWORK TECHNIQUES

PERT CPM
-Program Evaluation and Critical Path Method
Review Technique Developed by El Dupont
- developed by the US for Chemical Plant
Navy with Booz Shutdown Project- about
Hamilton Lockheed same time as PERT
- on the Polaris
Missile/Submarine
program 1958

Both use same calculations, almost similar

Main difference is probabilistic and deterministic in time estimation
Gantt Chart also used in scheduling
2
 Some questions about the project

• How long will the entire project take to

complete?
• Which activities determine total project
time?
• Which activity times should be
shortened, if possible, or in other words,
how many resources should be
allocated to each activity?
3

© 2008 Prentice Hall, Inc. 3–3

  Developed in 1950’s

History  CPM by DuPont for chemical plants

 PERT by U.S. Navy for Polaris missile

CPM was developed by Du Pont and the

emphasis was on the trade-off between the
cost of the project and its overall
completion time (e.g. for certain activities it
may be possible to decrease their
completion times by spending more money -
how does this affect the overall completion
time of the project?)

© 2008 Prentice Hall, Inc. 3–4

 Critical Path Method (CPM), is a procedure for
using network analysis to identify those tasks
which are on the critical path: ie where any delay
in the completion of these tasks will lengthen the
project timescale, unless action is taken.
For all tasks off the critical path, a degree of
tolerance is possible (eg. late start, late
completion, early start, etc.).
Network charts and CPM analysis used to be
carried out by hand.
Software is now available which requires the user
only to enter the tasks, duration of each task and
dependencies upon other tasks; a network chart
and CPM is then automatically created.

© 2008 Prentice Hall, Inc. 3–5

 • The CPM formally identifies tasks which
must be completed on time for the whole
project to be completed on time
• Identifies which tasks can be delayed for a
while if resource needs to be reallocated to
catch up on missed tasks
• It helps you to identify the minimum length
of time needed to complete a project
• The CPM determines both the early start
and the late start date for each activity in
the schedule.
© 2008 Prentice Hall, Inc. 3–6
 CPM - Critical Path Method

• Definition: In CPM activities are shown as a network of

precedence relationships using activity-on-node network
construction
– Single estimate of activity time
– Deterministic activity times

USED IN : Production management - for the jobs

of repetitive in nature where the activity time
estimates can be predicted with considerable
certainty due to the existence of past
experience.

© 2008 Prentice Hall, Inc. 3–7

 Benefits of CPM/PERT
• Useful at many stages of project
management
• Mathematically simple
• Give critical path and slack time
• Provide project documentation
• Useful in monitoring costs

© 2008 Prentice Hall, Inc. 3–8

 Two basic ways to represent activities in a
network
1.
AON

• AON—activity-on-node

Earliest start,Earliest finish (0,10)

Node ID A
10
Time Remaining
(10,20)
Latest start,Latest finish
© 2008 Prentice Hall, Inc. 3–9
 Two
Two basic
basic ways
ways to to activities
represent represent in a
activities in network
a network—2.AOA 2.
AOA

• AOA—activity-on-arrow
Node ID Earliest start,Earliest finish

A (0,10)

10 (0,10)

Time Remaining
Latest start,Latest finish

© 2008 Prentice Hall, Inc. 3 – 10

 CPM Scheduling

• CPM (critical path method)

1. Analyze precedence of activities to predict total project duration.
Focus on float available between activites.
2. Calculate which sequence of activities has the least amount of
schedule flexibility (two-path analysis)

3. The path with zero flexibility is called the critical path ( )

(0,10) (20,50) (50,60)
A C D
10 30 10 (60,80) (80,80)
(0,0) F
(10,20) (20,50) (60,80)
20 END
ST (0,20) (20,50)
(0,0) B E (60,80) (80,80)
20 30
© 2008 Prentice Hall, Inc.
(0,20) (30,60) 3 – 11
 Six Steps PERT & CPM

1. Define the project and prepare the

work breakdown structure
2. Develop relationships among the
activities - decide which activities
must precede and which must follow
others
3. Draw the network connecting all of
the activities

© 2008 Prentice Hall, Inc. 3 – 12

 Six Steps PERT & CPM

4. Assign time and/or cost estimates

to each activity
5. Compute the longest time path
through the network – this is called
the critical path
6. Use the network to help plan,
schedule, monitor, and control the
project

© 2008 Prentice Hall, Inc. 3 – 13

 Questions PERT & CPM
Can Answer
1. When will the entire project be
completed?
2. What are the critical activities or tasks in
the project?
3. Which are the noncritical activities?
4. What is the probability the project will be
completed by a specific date?

© 2008 Prentice Hall, Inc. 3 – 14

 Questions PERT & CPM
Can Answer
5. Is the project on schedule, behind
schedule, or ahead of schedule?
6. Is the money spent equal to, less than, or
greater than the budget?
7. Are there enough resources available to
finish the project on time?
8. If the project must be finished in a shorter
time, what is the way to accomplish this
at least cost?

© 2008 Prentice Hall, Inc. 3 – 15

 AON Example
Milwaukee Paper Manufacturing's
Activities and Predecessors
Immediate
Activity Description Predecessors
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G

Table 3.1
© 2008 Prentice Hall, Inc. 3 – 16
 AON Network for
Milwaukee Paper

Activity A
A
(Build Internal Components)

Start

Activity B
Start B (Modify Roof and Floor)
Activity

Figure 3.6
© 2008 Prentice Hall, Inc. 3 – 17
 AON Network for
Milwaukee Paper
Activity A Precedes Activity C

A C

Start

B D

Activities A and B
Precede Activity D Figure 3.7
© 2008 Prentice Hall, Inc. 3 – 18
 AON Network for
Milwaukee Paper

F
A C

E
Start H

B D G

Arrows Show Precedence

Relationships
Figure 3.8
© 2008 Prentice Hall, Inc. 3 – 19
 AOA Network for
Milwaukee Paper
C
2 4
(Construct
Stack)

H
1 Dummy 6 7
Activity (Inspect/
Test)

D
3 5
(Pour
Concrete/
Install Frame) Figure 3.9
© 2008 Prentice Hall, Inc. 3 – 20
 Determining the Project
Schedule
Perform a Critical Path Analysis
 The critical path is the longest path
through the network
 The critical path is the shortest time in
which the project can be completed
 Any delay in critical path activities
delays the project
 Critical path activities have no slack
time
© 2008 Prentice Hall, Inc. 3 – 21
 Determining the Project
Schedule
Perform a Critical Path Analysis
Activity Description Time (weeks)
A Build internal components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
Total Time (weeks) 25
Table 3.2
© 2008 Prentice Hall, Inc. 3 – 22
 Determining the Project
Schedule
Perform a Critical Path Analysis
Earliest start (ES) = earliest time at which an activity can
Activity Descriptionstart, assuming all predecessorsTime (weeks)
have
A Build internal components
been completed 2
EarliestBfinish (EF)
Modify roof and
= earliest floor
time 3
at which an activity can
C be finished
Construct collection stack 2
LatestD start (LS)
Pour=concrete
latest timeandatinstall
which frame
an activity can4
E start so as to not delay
Build high-temperature burnerthe completion
4
F Install time of thecontrol
pollution entire project
system 3
LatestGfinish (LF) = latest
Install time bydevice
air pollution which an activity has5 to
be finished so as to not delay the
H Inspect and test 2
completion time of the entire project
Total Time (weeks) Table
25 3.2
© 2008 Prentice Hall, Inc. 3 – 23
 Determining the Project
Schedule
Perform a Critical Path Analysis
Activity Name
or Symbol
A Earliest
Earliest ES EF
Start Finish

Latest LS LF Latest
Start 2 Finish

Figure 3.10 Activity Duration

© 2008 Prentice Hall, Inc. 3 – 24
 Forward Pass
Begin at starting event and work forward
Earliest Start Time Rule:

 If an activity has only a single immediate

predecessor, its ES equals the EF of the
predecessor
 If an activity has multiple immediate
predecessors, its ES is the maximum of
all the EF values of its predecessors

ES = Max {EF of all immediate predecessors}

© 2008 Prentice Hall, Inc. 3 – 25

 Forward Pass
Begin at starting event and work forward
Earliest Finish Time Rule:

 The earliest finish time (EF) of an activity

is the sum of its earliest start time (ES)
and its activity time

EF = ES + Activity time

© 2008 Prentice Hall, Inc. 3 – 26

 ES/EF Network for
Milwaukee Paper

ES EF = ES + Activity time
Start
0 0

© 2008 Prentice Hall, Inc. 3 – 27

 ES/EF Network for
Milwaukee Paper
EF of A =
ES ES of A + 2
of A
A
Start 0 2
0 0

© 2008 Prentice Hall, Inc. 3 – 28

 ES/EF Network for
Milwaukee Paper
A
0 2

2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3

3
© 2008 Prentice Hall, Inc. 3 – 29
 ES/EF Network for
Milwaukee Paper
A C
0 2 2 4

2 2

Start
0 0

B
0 3

© 2008 Prentice Hall, Inc. 3 – 30

 ES/EF Network for
Milwaukee Paper
A C
0 2 2 4

2 2

Start
0 0
= Max (2, 3) D
0
3 7
B
0 3

3
4
© 2008 Prentice Hall, Inc. 3 – 31
 ES/EF Network for
Milwaukee Paper
A C
0 2 2 4

2 2

Start
0 0

B D
0 3 3 7

3 4

© 2008 Prentice Hall, Inc. 3 – 32

 ES/EF Network for
Milwaukee Paper
A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15

0 4 2

B D G
0 3 3 7 8 13

3 4 5
Figure 3.11

© 2008 Prentice Hall, Inc. 3 – 33

 Backward Pass
Begin with the last event and work backwards

Latest Finish Time Rule:

 If an activity is an immediate predecessor

for just a single activity, its LF equals the
LS of the activity that immediately follows it
 If an activity is an immediate predecessor
to more than one activity, its LF is the
minimum of all LS values of all activities
that immediately follow it

LF = Min {LS of all immediate following activities}

© 2008 Prentice Hall, Inc. 3 – 34

 Backward Pass
Begin with the last event and work backwards

Latest Start Time Rule:

 The latest start time (LS) of an activity is

the difference of its latest finish time (LF)
and its activity time

LS = LF – Activity time

© 2008 Prentice Hall, Inc. 3 – 35

 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15
13 15
0 4 2

B D – Activity time
LS = LF G
0 3 3 7 8 13

3 4 5 LF = EF
of Project
© 2008 Prentice Hall, Inc. 3 – 36
 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

10 13
2 2 3

Start E H
0 0
LF =4 Min(LS
8 of 13 15
following activity) 13 15
0 4 2

B D G
0 3 3 7 8 13

3 4 5

© 2008 Prentice Hall, Inc. 3 – 37

 LS/LF Times for
Milwaukee Paper
LF = Min(4, 10)

A C F
0 2 2 4 4 7

2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
8 13
3 4 5

© 2008 Prentice Hall, Inc. 3 – 38

 LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5

© 2008 Prentice Hall, Inc. 3 – 39

 Computing Slack Time
After computing the ES, EF, LS, and LF times
for all activities, compute the slack or free
time for each activity

 Slack is the length of time an activity can

be delayed without delaying the entire
project

Slack = LS – ES or Slack = LF – EF

© 2008 Prentice Hall, Inc. 3 – 40

 Computing Slack Time
Earliest Earliest Latest Latest On
Start Finish Start Finish Slack Critical
Activity ES EF LS LF LS – ES Path

A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes

Table 3.3

© 2008 Prentice Hall, Inc. 3 – 41

 Critical Path for
Milwaukee Paper
A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5

© 2008 Prentice Hall, Inc. 3 – 42

 ES – EF Gantt Chart
for Milwaukee Paper
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test

© 2008 Prentice Hall, Inc. 3 – 43

 LS – LF Gantt Chart
for Milwaukee Paper
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test

© 2008 Prentice Hall, Inc. 3 – 44

 Summary
Critical Path Analysis is an effective and
powerful method of assessing:
• Tasks which must be carried out
• Where parallel activity can be carried out
• The shortest time in which a project can be
completed
• Resources needed to achieve a project
• The sequence of activities, scheduling,
and timings involved
• Task priorities 45

© 2008 Prentice Hall, Inc. 3 – 45