Critical Path Method (CPM) in Project

Management
By Fahad Usmani 67 Comments

If you have been into project management, you

must have heard about the critical path method (CPM), which is a project modeling
technique developed by Morgan R. Walker and James E. Kelly in late 1950(Wikipedia).
The critical path method (CPM) is extensively used by project planners worldwide for
developing the project schedule in types of projects; e.g. IT, research, construction, etc.
This method is a basis of the project schedule and is discussed very broadly in the
PMBOK Guide. You can expect to see more than two to three questions in your PMP
exam from this topic.
In this blog post, I will discuss the critical path with a real world example, identifying the
critical path in a network diagram, and calculate the float for each path.
Once you become familiar with it, I will walk you through every step required for
calculating Early Start, Early Finish with forward pass, and then calculating Late Start,
Late Finish with backward pass.
Make sure you understand each step described in this blog post correctly, otherwise
you might face some difficulties while dealing with these calculations. However, if you
feel you need any clarification, you are free to reach out to me any time through the
comments section.
Okay, lets get into it

Critical Path
If you look at any network diagram, you will notice many paths originating from a point
and ending at some point. Every path will have some duration, and the path with the
longest duration is known as the critical path.
The critical path can be defined in many ways, such as:

The critical path is the longest path in the network diagram, or

The critical path is shortest duration in which the project can be completed.
Dont you think these two definitions are different, or just opposite to each other?
No, in fact, both definitions are trying to convey same message. They might seem to be
opposite to you because the first definition is talking about the longest path and the
second definition is talking about the shortest duration.
However, they both are the same.
Did you get it? If not, dont worry, this is what Im going to explain you right now.
Lets say, you got a project to build three buildings in one location. The first building is
the largest building, the second building is medium sized building, and the third building
is the smallest building.
You develop the network diagram which consists of three paths; each path resembles
each building.
You calculate the duration for each path. For the first building, the duration is 31 months,
for the second building it will take 18 months, and the third building will require 13
months to complete.
The first path is for the largest building, the second path is for the medium sized
building, and the third path is for the smallest building.

Now, review the above diagram.

Did you notice that the path for the first building is biggest in all three? It is thirteen
months bigger than the second path, and 18 months bigger than the third path. This
means that if you start working on the first building, you can wait 13 months to start
work on the second building, because you can complete second building in 18 months.
Likewise, you will have an 18 month wait time to start working on the third building,
because it will take only 13 months to complete. This means that even if you start
working on the third building after 18 months from the project start date, you can
complete it on time.
This waiting period is known as float or slack.
So, which one is the critical path in this network diagram of three paths?
Of course, it is the longest path on the network diagram, because you cannot complete
your project before constructing the first building. Although you can complete the other
two buildings quickly, until you complete the first building, your project cannot be
considered as completed.
Hence, the critical path is the longest path on the network diagram.
Now, tell me that what is the shortest duration in which you can complete the project?

Sure enough, it is 31 months, because you cannot complete your project before 31
months, and this is the duration of the critical path.
Hence, the critical path is the shortest duration in which you can complete the
project.
So, you see, both definitions are the same.
We can conclude that the critical path is the sequence of activities from start to end, and
it has the largest duration among all paths in a network diagram.
In ideal conditions, a network diagram should have only one critical path. However, if
the network diagram has more than one critical path, you will be in a difficult situation
because in this case you will have to manage more than one path in parallel.
As we know, the critical path has the largest duration, and its duration is known as the
duration of the project. Since activities on a critical path have no float or slack, no
activity can be allowed to be delayed. If this happens, the project will be delayed.
However, in case of delays, you can use schedule compression tool, such as fast
tracking or schedule crashing, to bring the project on track.
Visit: Schedule Compression Techniques Fast Tracking and Crashing
You must always update the network diagram if there is any change to it so that you can
have a better understanding of activities and predict the float, project completion dates,
etc.

Benefits of the Critical Path Method

The following are a few benefits of the critical path method:

It shows the graphical view of the project.

It discovers and makes dependencies visible.
It helps in project planning, scheduling, and controlling.
It helps in contingency planning.
It shows the critical path, and identifies critical activities requiring special
attention.

It helps you assign the float to activities and flexibility to float activities.

It shows you where you need to take action to bring project back on track.
Although the critical path is very useful tool in project planning, it also has some
limitations and drawbacks.

Limitations/drawbacks of the Critical Path Method

The critical path method is an optimal planning tool, which always assumes that
all resources are available for the project at all time.

It does not consider resource dependencies.

There are chances of mis-using float or slack.

Less attention on non-critical activities, though sometimes they may also become
critical activities.

Projects based on the critical path often fail to be completed within the approved
time duration.
To overcome these shortcomings of the critical path, the critical chain model was
developed. In the critical chain method, while developing the network diagram, resource
constraints are also taken into consideration.
Visit: Critical Chain Mehod in Project Management

Procedure for Finding the Critical Path in a Network Diagram

The following is the procedure to find the critical path on a network diagram:

Draw the network diagram.

Identify all paths in the network diagram.

Find the duration of each path.

The path with the largest duration is the critical path.

Lets see the above procedure in action.

Example:
Based on the below network diagram, identify the total paths, critical path, and float for
each path.

The above network diagram has five paths; the paths and their duration are as follows:
1. Start -> A -> B -> C-> End, duration: 31 days.
2. Start ->D -> E ->F -> End, duration: 18 days.
3. Start -> D -> B -> C -> End, duration: 26 days.
4. Start -> G ->H ->I -> End, duration: 13 days.
5. Start -> G -> E ->F -> End, duration: 16 days.
Since the duration of the first path is largest, it is the critical path. The float on critical
path is zero.
The float for the second path Start ->D -> E ->F -> End = duration of the critical path
duration of the path Start ->D -> E ->F -> End
= 31 18 = 13
Hence, the float for the second path is 13 days.
Likewise, we can calculate the float for other paths as well.
Float for the third path = 31 26 = 5 days.
Float for the fourth path = 31 13 = 18 days.
Float for the fifth path = 31 16 = 15 days.

Calculate Early Start (ES), Early Finish (EF), Late Start

(LS), and Late Finish (LF)

As we have identified the critical path, and duration of other paths, time to move on
more advanced calculations such as Early Start, Early Finish, Late Start, and Late
Finish.

Calculating Early Start (ES) and Early Finish (EF)

To calculate the Early Start and Early Finish dates, we use forward pass; i.e. we will
start from the beginning and proceed to the end.
Early Start (ES) for the first activity on any path will be 1, because no activity can be
started before the first day of starting the project.
Formula used for calculate Early Start and Early Finish dates.

Early Start of the activity = Early Finish of predecessor activity + 1

Early Finish of activity = Activity duration + Early Start of activity 1

Early Start and Early Finish Dates for the path Start -> A -> B ->
C -> End

Early Start of activity A = 1 (Since this is the first activity of the path)
Early Finish of activity A = ES of activity A + activity duration 1
= 1 + 10 1 = 10
Early Start of activity B = EF of predecessor activity + 1
= 10 +1 = 11

Early Finish of activity B = ES of activity B + activity duration 1

= 11 + 12 1 = 22
Early Start of activity C = EF of predecessor activity + 1
= 22 +1 = 23
Early Finish of activity C = ES of activity C + activity duration 1
= 23 + 9 1 = 31

Early Start and Early Finish Dates for the path Start -> D -> E ->
F -> End

Early Start of activity D = 1 (Since this is the first activity of the path)
Early Finish of activity D = 1 + 5 1 = 5
Early Start of activity E = EF of predecessor activity + 1
Now there is a trick. Since the Activity E has two predecessor activities, which one will
you select? You will select the activity with the greater Early Finish date. Early Finish of
activity D is 5, and Early Finish of activity G is 3 (we will calculate it later).
Therefore, we will select the Early Finish of activity D to find the Early Start of activity E.
Early Start of activity E = EF of predecessor activity + 1
=5+1=6

Early Finish of activity E = 6 + 7 1 = 12

Early Start of activity F = 12 + 1 = 13
Early Finish of activity F = 13 + 6 -1 = 18

Early Start and Early Finish Dates for the path Start -> G -> H ->
I -> End

Early Start of activity G = 1 (Since this is the first activity of the path)
Early Finish of activity G = 1 + 3 1 = 3
Early Start of activity H = 3 + 1 = 4
Early Finish of activity H = 4 + 4 1 = 7
Early Start of activity I = 7 +1 = 8
Early Finish of activity I = 8 + 6 1 = 13

Calculating Late Start (LS) and Late Finish (LF)

We have calculated Early Start and Early Finish dates of all activities. Now it is time to
calculate the Late Start and Late Finish dates.
Late Finish of last activity in any path will be the same as the Last Finish of the last
activity on the critical path, because you cannot continue any activity once the project is
completed.

Formula used for Late Start and Late Finish dates:

Late Start of Activity = Late Finish of activity activity duration + 1

Late Finish of Activity = Late Start of successor activity 1

To calculate the Late Start and Late Finish, we use backward pass; i.e. we will start from
the last activity and move back towards the first activity.

Late Start and Late Finish Dates for the path Start -> A -> B -> C
-> End

On a critical path, Early Start, and Early Finish dates will be the same as Late Start and
Late Finish dates.

Late Start and Late Finish Dates for the path Start -> D -> E -> F
-> End

Late Finish of activity F = 31 (because you cannot allow any activity to cross the project
completion date)
Late Start of activity F = LF of activity F activity duration + 1
= 31 6 +1 = 26
Late Finish of activity E = LS of successor activity 1
= LS of activity F 1
= 26 1 = 25
Late Start of Activity E = LF of activity E activity duration + 1
= 25 7 + 1 = 19
Late Finish of activity D = LS of successor activity 1
If you look at the network diagram, you will notice that activity D has two successor
activities, B and E. So, which activity will you select?
You will select the activity with the lower Late Start date. Here, Late Start of activity B is
11, and Late Start of activity E is 19.
Therefore, you will select activity B which has the lower Late Start date.
Hence,

Late Finish of activity D = LS of activity B 1

= 11 1 = 10
Late Start of Activity D = LF of activity D activity duration + 1
= 10 5 + 1 = 6

Late Start and Late Finish Dates for the path Start -> G -> H -> I
-> End

Late Finish of activity I = 31 (because you cannot allow any activity to cross the project
completion date)
Late Start of activity I = 31 6 + 1 = 26
Late Finish of activity H = 26 1 = 25
Late Start of activity H = 25 4 + 1 = 22
Late Finish of Activity G = 19 1= 18 (we will choose the late start of activity E not
activity H, because the Late Start of activity E is lower than the Late Start of activity H)
Late Start of activity G = 18 3 + 1
= 16

Calculate the Free Float

I have already written a detailed blog post explaining the total float and free float,
therefore, Im not going to describe it now; rather, I will directly show you its calculation.

I strongly recommend you read my blog post on total float and free float to get a better
understanding.
Visit: Total Float and Free Float
Formula for the Free Float:

Free Float = ES of next activity EF of current activity 1

Summary
Critical path method is a very important tool in project management, and has helped
many project managers develop and manage their schedule. In critical path method,
you will draw a network diagram with multiple paths. The path with the longest duration
is known as the critical path. During your project execution your main emphasis will be
on this path, because this is the longest path and the duration of this path will be
duration of the project.
As a project manager you have to keep an eye on your network diagram and take
prompt corrective action whenever necessary.
Here is where this blog post completes. I hope you have enjoyed reading it.
If you are interested in learning all mathematical formulas for the PMP exam, you can
try myPMP Formula Guide, and PMP Question Bank to practice 400 PMP exam sample
questions.
image credit => digitalart/FreeDigitalPhotos.net

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Filed Under: Planning, Time Tagged With: critical path method (cpm)

Comments
1.

Carlos says

January 28, 2014 at 2:38 PM

Hello,
I was wondering
What is the difference between these calculations :
Late Start of activity I = 31 6 + 1 = 24
Late Start of activity F = LF of activity F activity duration + 1
= 31 6 +1 = 26
?
Reply

Fahad Usmani says

January 28, 2014 at 8:59 PM

Corrected.
Reply

Abdus Samad says

August 10, 2015 at 6:22 PM

Dear Fahad
If we have three paths in a project and three of them have same duration. Then which one
will be the critical path.
Thank you
Reply

Fahad Usmani says

August 13, 2015 at 7:41 AM

In this case all three paths will be critical path.

Reply

Abdus Samad says

August 13, 2015 at 6:48 PM

Thanks brother
Reply

Fahad Usmani says

August 15, 2015 at 8:40 PM

You are welcome Abdus Samad.

Reply

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Forward and Backward Pass in Time Management

07/09/06 | by Clarise Z. Doval Santos

| Categories: Project Management

There are two terms related to Critical Path that one may encounter. These are the terms Forward
Pass and Backward Pass. These terms are related to ways of determining the early or late start [forward
pass] or early or late finish [backward pass] for an activity.
Forward pass is a technique to move forward through a diagram to calculate activity duration. Backward
pass is its opposite.
Early Start (ES) and Early Finish (EF) use the forward pass technique.
To determine the Early Start of an activity, factor in all its dependencies and see its earliest start date.
Consider the following simple diagram (durations are in weeks):

Click to view original size

The Early Start (ES) for Activity B is 4. Why? B comes after A. A starts on week 1 and finishes on week 3.
So the earliest that B can start is week 4. For simplicity, I think of it as: The duration of preceding activity
+1
The Early Finish (EF) is the earliest calculated time an activity can end. To calculate Early Finish, (ES for
the activity + Activity Duration) - 1. From the diagram above, we can compute the EF of activity B as [(4 +
3) - 1] = 6. Hence, the EF for Activity B is 6.
Late Start (LS) and Late Finish(LF) use the backward pass technique. You can think of backward pass
as calculating backward to see how much an activity may slide without affecting the finish date.
Late Start (LS) is the latest time an activity may begin without delaying the project duration. The simplest
way one can compute the LS is adding the float to the activity Early Start. Using the simple diagram
above, we know that Activity B is on the critical path, hence has a float of zero. Also, Activity B's ES = 4.
Hence, LS = (0 + 4) or 4. Note that if an activity has a float of zero, ES and LS will be the same.
Late Finish (LF) latest time an activity may be completedwithout delaying the project duration. One can
compute LF by LF =(Activity's LS + Activity Duration) - 1. So the LF of Activity B = (4 + 3) - 1 = 6. Note
that since activity B has a zero float, EF = LF.
For memory trigger, if the float of the activity is zero, the two starts (ES and LS) and the two finish (EF
and LF) are the same. Hence, If float of activity is zero, ES = LS and EF = LF.