What is CPM (Critical Path Method) - businesskites

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What is CPM (Critical Path Method)



Critical Path Method (CPM) is a project management technique where tasks that are necessary for project completion are identified for determining scheduling flexibilities. A critical path in project management is the longest sequence of activities that must be finished on time in order for the entire project to be completed on time.

Critical path illustrates the activities and tasks that will delay the entire project if they are not completed on time. CPM helps managers to replan, reschedule, and reallocate labor and resources to complete critical tasks by identifying non-critical activities.

Process of Finding Critical Path:

1. Construct a project network:

The first step is to divide the entire project into significant activities in accordance with the work breakdown structure. Activity on Node (AON) is the most commonly used approach for drawing project networks, where nodes designate activities.

2. Perform forward passes and backward passes: Forward pass is a process that identifies all the early times. Backward pass is an activity that finds all the late start and late finish times. Here, we calculate two distinct starting and ending times for each activity. These are defined as follows:

Earliest start (ES) = earliest time at which an activity can start, assuming all predecessors have been completed

Earliest finish (EF) = earliest time at which an activity can be finished

Latest start (LS) = latest time at which an activity can start so as to not delay the completion time of the entire project

Latest finish (LF) = latest time by which an activity has to finish so as to not delay the completion time of the entire project

3. Determine project completion time

4. Calculate Slack values

5. State the Critical path

Example: Find the critical path


Step 1: Draw the project network:

Step 2: Perform the Forward Pass and Backward Pass:

First, Convert each activity in the network into a 'Nod' which shows the activity and times. 





A  Nod inlcudes: A (Activity), t (Activity Time), ES (Early Start), EF (Early Finish), LS (Late Start), and LF  (Late Finish)


Perform 'Forward Pass'

Activity A:

ES: Activity A has no predecessor, so A's earliest start time (ES) will be 0.

EF = ES + t . Since A has 7 weeks to be completed (t), its earliest finish time (EF) will be 0+7 = 7.

Activity B:

ES:Activity B has no predecessor, so its earliest start time (ES) will be 0. 

EF = ES + t. Since it has 9 weeks to be completed (t), its earliest finish time (EF) will be 0+9 = 9.

Activity C: 

ES: Activity C has a predecessor; 'A' (C needs A to be completed before it can start), Since the Earliest Finish (EF) Time for A is 7, then the Earliest Time (ET) C can start is 7.  

EF = ES + t. Since C has 12 weeks to be completed (t), its earliest finish time (EF) will be 7+12 = 19.

Activity D: 

ES:  Activity D has a two predecessors; A& B (D needs A & B to be completed before it can start), Since the Earliest Finish (EF) Time for A and B are 7 and 9 respectively, and D needs both of them to finish in order to start,  then the Earliest Time (ET) D can start is 9 which is the highest time of both predecessors.  

EF = ES + t.Since D has 8 weeks to be completed (t), its earliest finish time (EF) will be 9+8 = 17.

Activity E: 

ES: Activity E has only one predecessor; D, so its earliest start time (ES) will be 17. 

EF = ES + t. Since E has 9 weeks to be completed (t), its earliest finish time (EF) will be 17+9 = 26.

Activity F: 

ES: Activity F has a two predecessors; C&E (F needs C & E to be completed before it can start), Since the Earliest Finish (EF) Time for C and E are 19 and 26 respectively, and F needs both of them to finish in order to start,  then the Earliest Time (ET) F can start is 26 which is the highest time of both predecessors.  

EF = ES + t. Since F has 6 weeks to be completed (t), its earliest finish time (EF) will be 26+6 = 32.

Activity G: 

ES: Activity G has only one predecessor; E, so G's earliest start time (ES) will be 26. 

EF = ES + t. Since E has 5 weeks to be completed (t), its earliest finish time (EF) will be 26+5 = 31

Finish Time: The project's completion time is higher earliest finish time (EF). (Here, even though G is the last activity, F has highest earliest finish (EF) time.) Hence, Finish time of the project is 32. 


Perform Backward Pass:
Since the project completion time is 32 weeks, the lastest finish (LF) times for the activities are:
Activity G : 
LF:The latest finish time (LF) for Gis 32 weeks. That is, G cannot be completed longer than 32 weeks. 
LS: The Latest Start (LS) time can be obtained by substracting the activity times fom the latest finish times( LF- t). For G, the latest start time will be 32 - 5  = 27.
Activity F : 
LF:The latest finish time (LF) for F is 32 weeks. That is, F cannot be completed longer than 32 weeks. 
LS: ( LF- t). For F, the latest start time will be 32 - 6  = 26.
Activity E: 
E has 2 successors; F & G. The Latest Start times are 26 (F) and 27 (G). As a result the Latest Finish time of E is 26. (When doing backward pass, the latest finish time an activity must be minimum of the latest start time of its successors) ,
LS: ( LF- t), For E, the latest start time will be 26 - 9  = 17.
Activity D : 
Activity D has only one successor;E. 
LF: So the latest finish (LF) time for D will be the latest start ( LS) of E, which is 17
LS = ( LF- t):  17 - 8 = 9
Activity C : 
Activity C has only one successor;F. 
LF: So the latest finish (LF) time for C will be the latest start ( LS) of E, which is 26
LS = ( LF- t):  26- 12= 14
Activity B : 
B has only one successor;D. 
LF= 9
LS = ( LF- t):  9- 9= 0
Activity A:
A has two successors; C & D. The minimum of their latest start is 9. 
LF = 9
LS = ( LF- t) : 9- 7= 2


Define Slack Time:
Slack time is the time which indicates how long a activity can be delayed without extending or increasing the project completion time. Slack time is calculated as LS - ES or LF - EF
So the slack time for 
A = LS -ES = 2-0 = 2 or LF -EF = 9-7 = 2
B = LS -ES = 0-0 = 0 or LF -EF = 9-9 = 0
C = LS -ES = 14-7 = 7 or LF -EF = 26-19 = 7
D = LS -ES =9-9 = 0 or LF -EF = 17-17 = 0
E = LS -ES = 17-17 = 0 or LF -EF = 26-26 = 0
F = LS -ES = 26-26 = 0 or LF -EF = 32-327 = 0
G = LS -ES = 27-26 = 1 or LF -EF = 32-31 = 1
(Note: here, Slack time shows, C can begin any time between 7 and 14 weeks, and it can finish between 19 and 26. It means C can be delayed for upto 7 weeks to start and the project will still be completed on time. Activities B,D,E, and F cannot be delayed at all)


Find Critical Activities:
The activities with zero slack are called critical activities, and they form a critical path, which is the longest path in the network. So the critical path here is B-D-E-F

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