Critical Path Analysis

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Copyright 2006 – Biz/ed

Critical Path Analysis






Planning and Monitoring Tool




• 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




• 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)




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



Examples

• Video – Around the world in 80 Days• Over to you – Activity

Bizhelp

• Morning routine…• CPA Computer Project• Specialist software



In Conclusion

• What is CPA• Advantages & Disadvantages• The Process• Diagram Syntax• Examples• Questions?

Documents

Critical Path Analysis