Critical path analysis

• It refers to a planning technique that identifies all tasks in a project, puts them in the
correct sequence and allows for the identification of the critical path.
• It is a method of organising the different activities involved in a particular process in
order to find the most efficient means of completing the task.
• Can be referred to as a network analysis
• The main aim is to complete the project in as short a time as possible. To do this a firm
will determine the exact order in which activities have to be undertaken and identify
those which can be undertaken simultaneously to save time.
• The activities that must be completed to achieve this shortest time make up what is
known as the critical path.
• The process of using CPA involves the following steps:
1. Identify the objective of the project (e.g. build a factory in six weeks).
2. Put the tasks that make up the project into the right sequence and draw a network
diagram of that sequence
3. Add the durations of each of the activities.
4. Identify the critical path – those activities that must be finished on time for the
project to be finished in the shortest time.
5. Use the network as a control tool when problems occur during the project.

Network diagrams/network charts

• Refer to a diagram that shows, in a logical progression, the activities involved in a

project together with their time sequence.
• All the activities involved in the project are shown, in the order in which they must be
undertaken and the times each one will take.

Features of a network diagram

• A circle (called a node) represents the start and end of each activity
• A straight line represents the activity itself
 • Arrows to show the sequence of activities/ the flow of the logic of sequences

• Critical activity is shown by a pair of double lines

Definition of key terms

1. Earliest Start Time (EST)

• The earliest possible time an activity can start relative to the beginning of the project.
To calculate EST work from left to right.

EST = earliest start time of the activity before + duration of the activity

If there is a choice between two or more alternatives, choose the largest number

2. Latest Finish Time (LFT)

• It refers to the latest possible time an activity can finish relative to the beginning of the
project.
• It shows the latest time an activity can be finished without holding up the whole project.
To calculate the latest finish time work from right to left

LFT of the activity = LFT of the next node – duration of the activity

If there is a choice between alternatives, choose the smallest number to use

3. Minimum project duration

• It refers to the shortest possible time within which a project can be completed

An illustration of the concepts above is shown below:

Worked example

The objective of this project is to construct a building in 29 days. The tasks to be performed in
order to construct the building have been broken down into ten main activities from digging
the foundation up to roofing. The duration of the activity is shown in the table below and the
network diagram for these activities is shown in the figure below

Network diagram
Required

a) Draw a complete network diagram using the given information above

b) Calculate minimum project duration
c) Determine the critical path

Solutions

a) Network diagram

b) MPD

MPD = the LFT of the final activity

= 29 days ( in the illustration above)

Note the following points:

Determination of critical activity

 • A critical activity is an activity within a project that cannot be delayed without delaying
the overall project.
• Critical activities can be identified by nodes which have EST which is equal to LFT
(EST=LFT). What it means is that the earliest time an activity can start is the same as
the latest time the preceding activity can start.
• Completion of critical activity in time is necessary to ensure the project as whole is
completed in the shortest possible time.

Determination of non-critical activities

These are activities that can be delayed without delaying the whole project. Non-Critical
activities can be identified by nodes which have EST which is less than LFT (EST < LFT). i.e
B;D;E;F;G and H

c) Critical path

Refers to a sequence if critical activities. In the question above the critical path is from ACJI.
i.e they have a pair of short parallel lines

Activities that are critical to the completion of the project and this is where the managers must
focus their attention on. i.e A; C; J and I

Float time for non-critical activities

Using the EST and LFT it is possible to calculate the float of an activity. Float time refers to
the time an activity can be delayed without either delaying the next activity or the overall
project. There are two types of float time namely free float and total float

Free float

• Refers to the maximum time an activity can be delayed without delaying the next
activity in the sequence.
 Free Float = EST of the next activity – EST of this activity – duration.

Example

Calculate the free float from the following

Free Float = EST of the next activity – EST of this activity – duration.

= 26 – 6 – 11

= 9 days

NB: Free float is zero for a critical activity

Total float

• It refers to the maximum time an activity can be delayed without delaying the overall
project.

Total Float = LFT – EST – duration

Example

Calculate the total float from the following

Total Float = LFT – EST – duration

= 24 – 6 – 11

= 7 days

NB: Total float is zero for a critical activity.

Dummy

• Refers to an artificial activity used to ensure the logical representation of a project in

not ambiguous.
• Sometimes when constructing network diagrams the relationships get so complex and
to be able to draw then you need a dummy.
• This is an activity that has no time or costs involved, it is included in the diagram to
help show the relationships between real activities.
• The dummy has no other impact on any other aspect of the CPA other than resolving
ambiguities

Consider the following example

S follows M and N

T follows N

The logical presentation including a dummy is shown below

A dummy is required to eliminate the ambiguity involved.

Benefits of critical path analysis (CPA)

• Using a network diagram to calculate the total project duration allows businesses to
give accurate delivery dates. Customers may insist on a particular completion date and
the critical time shows whether the firm can make this date or not.
• Calculating the LFT of each activity provides a useful control tool for the operations
manager. The manager will be able to see whether the project is up to schedule by
checking the actual completion times of activities against the network LFT. Managers
are able to monitor progress and see the possible consequences if activities are running
late
• It enables the managers to know when activities should start. This means that mangers
can allocate resources to activities at the right time. This helps in co-ordination
• Knowing the critical path is very important. It allows managers to focus on the timely
completion of these with greater priority than non-critical activities.
By knowing the critical path, the operations manager can see which other activities
need to be speeded up if one has been delayed. For instance, if an activity was delayed
by two days due to bad weather or non-arrival of equipment, the operations manager
would know that one of the critical activities that follows needs to be accelerated to
catch up the time lost.
• It shows the activities which can be completed simultaneously. This gives design and
engineering departments an advantage by showing them the tasks that can be
undertaken simultaneously in developing a new product. This will reduce the total time
taken by the project. This is based on the principle of simultaneous engineering.
• The need to put all activities into sequence in order to structure the diagram forces
managers to plan each project carefully by putting activities in the correct order.

Limitations of critical path analysis

• The manager may have a good project plan but the project may fail if the employees
are less skilled and less motivated. All projects must be managed properly if they are
to be completed on time.
• The ability to complete a project on time will depend on the reliability of suppliers. If
raw materials are delivered late, this may prevent the next activity starting on time.
• The project can be done quickly but the quality may be poor. Subordinates may cut
corners to get the project done on time.
• When using CPA for a completely new project, there may be considerable guesswork
involved in estimating the durations for each activity. There will be no previous
experience to depend on.
• If management of the project is poor, then even a good critical path network diagram
will not ensure success. This is particularly true when attempting to make up for lost
time on a critical activity. It will require experienced managers to identify the cheapest
option for using and switching resources from non-critical activities.