Critical Path Analysis

Critical Path Analysis

Planning and Monitoring Tool

Critical Path Analysis

• May be used as part of the decision making process

• Enables a firm to plan and monitor operations• Time related – identifies the maximum time for

an operation to be completed• Identify potential problems in implementing

operation• Identifies where and when resources (including

human ones) are needed

Critical Path Analysis

• Advantages– Maximise efficiency in the use

of time– Improve efficiency and

generate cost saving in the use of resources

– Beneficial to monitoring cash flow

• Disadvantages– Usefulness may be limited in

complex and large scale operations

– Necessity of having clear and reliable information

– Skilled management and team philosophy is essential

The Process

CPA – the Process

• Identify and prioritise the activities• Identify which activities MUST be done before

others• EST – identify earliest start time• LFT – identify latest finish time• Identify the FLOAT – tasks which can be

completed outside the critical path• Identify the critical path – points connecting ESTs

and LFTs (where these are the same)

Critical Path Analysis

Nodes: Show the start and finish of a task

1 2

Node numbers showing order of activities in the left hand semi-circle

of each node.

3

Earliest Start Time (EST)

5

Latest Finish Time (LFT)

A

3

B

5

Arrows indicate the order of the tasks, the

letter above shows the order, the

time period below the

arrow

The Critical Path