myz-vgb.ru A Business Encyclopedia

Critical Path Method

Definition: The Critical Path Method or CPM is a network analysis technique concerned with planning and controlling of complex, but routine projects. Simply, Critical path method is generally used for the projects whose time duration is known with certainty and also the amount of resources required for the completion of the project is assumed to be known.

First of all, the activities comprised in a project are identified along with their importance, i.e. the dependency of activities on each other. For each activity, it is identified that which other activities are required to be completed before it starts and how long the activities takes to get finished.

Once the critical activities are identified, the network is drawn connecting all the crucial activities and depicting which activity to be carried first, so that successor activities could be performed effectively. For each activity the following parameters need to be determined:

  • Earliest start time (ES): How early, the successor activity begins once the predecessor activity finishes.
  • Earliest Finish Time (EF): Earliest Start Time + duration of each activity.
  • Latest Finish Time (LF): The latest time within which the activity finishes without delaying the project.
  • Latest Start Time (LS): Latest Finish Time – Activity duration

The critical path method follows the “activity-on-arc” diagram to illustrate a critical path of activities (as shown below). This diagram comprises of a numbered nodes that represent the stages required for the project completion while the arc shows the crucial activities as identified earlier.

CPM

The Critical Path method is deterministic in nature, since the required amount of resources and the time needed for the completion of the whole project is known, and is mainly used in the construction projects. This method was developed by Du Pont Company and the Univac Division of Remington Rand Corporation as a technique for controlling the maintenance of chemical plants.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


operant or instrumental conditioningperfectly competitive market definitionprinciple of scalar chaindifference between production function and isoquantmonopoly in economics definitionforced distribution method of performance appraisalindividual determinants of consumer behaviourtraditional banking definitionneo classical organizational theoryconsumer tastes definitionmicro and macro environmental factors in marketingnet profit margin rationethnocentrism is defined asdividend definition economicsmotive meaning in hindilist of ethical theoriesfrontal attack strategy examplewhat is participative leadershipenovation meaningexample of geocentricmeaning straddleturnover formula accountinginvestopedia liabilitiesvertical marketing system examplemeaning of disinvestment in hinditypes of isoquantsmodigliani miller dividend policy4ps marketing mix definitionchronically unemployed definitionherzberg s theorypavlov theory of classical conditioningchronic unemployment meaningwhat is segmented pricingjob evaluation methodologywide meaning in teluguconcept of intrapreneurshipdifferent types of amalgamationdeposit multiplier formulalaw of diminishing marginal utility example with graphadvantages of travellers chequespost office kisan vikas patraspearman formuladominate hindi meaningexample of likert scalepopulation proportion definitionadvantages and disadvantages of long term loansdiminishing marginal utility exampleimplicit and explicit cost in economicsrefresher training meaningdefine flankingdefinition of contractionary policyspearman coefficient correlationwhat does purchasing power parity meandefine barometerswhat is the definition of superegosnow ball sampling techniqueunitary income elasticity of demandstratify meaningdefinition for fourteen pointsmeasuring and forecasting market demandspearmans correlation coefficientclassical conditional learningblake leadership gridoligopoly industrydefinition of rank correlationmeaning of imperfect marketporters five focesmodigliani miller approach of capital structuretreasury bills definitionstratified proportional samplingindifference curve definition examplepositioning strategy definition marketingoffensive marketing strategy examplesdefine barometricdividend theorieswholesale lending definitionfx spot transaction