ECH 3603

Project Management & Development

 Learning Outcome
• To apply critical path method in project
planning.
• To apply CPM in management of a project.
• To calculate start time or finish time in a
project schedule.
 Critical Path Method (CPM)
• Critical Path Method refers to identifying
bottlenecks in the production process and
then building a production timeline through
them, using the total duration of those
activities which will take the longest to
complete as the basic timescale.
• Critical Path Management is the methodology
for managing those timeline path efficiently,
by manipulating time management of the
interlinkage of activities durations and
contingency workarounds.
• The critical path is the limiting path or the
longest path found when examining all
potential routes from the initial (first) node to
the terminal (last) node.
• Objective is to find the order in which the
phases of critical activities must be completed
first.
• A basic CPM project network analysis is
typically implemented in 3 phases:
1. Network planning phase
2. Network scheduling phase
3. Network control phase
 CPM Terminology
• Arrow diagram – CPM network diagramming
method using arrows to show activities
interrelationship and the flow of good job.
• Event – An event is the exact day at which an
activity is just started or finished. A finishing
event is the starting event of the next activity.
• Job logic – the sequential relationship
between activities, identified and defined
during prescheduled planning.
• Logic Diagram – Arrow diagram of complete
project network schedule, or a cross section of
an area of production.
• Nodes – graphic symbol for activities.
• Early start (ES) – Earliest time an activity can
start.
• Late start (LS) – Latest time an activity can
start.
• Early finish (EF) – Earliest time an activity will
be completed without float.
• Late finish (LF) – Latest time an activity will be
completed without negative float.
• Float / Slack – Measure available scheduling
leeway time on any activity’s completion.
• Free float – Time by which activity finish event
can be delayed without affecting the
succeeding activity’s start event.
• Total float (TF) – Total sum of all free float.
• Negative float – Time a critical activity is late
meeting its finish event.
 Logic Diagram
• Logic diagram have long been used by
mathematicians and it was assumed by many
that mathematician Kelly used the logic
diagram to convey the basic plan sequence.
• The event at the head of the arrow is called
the ‘j event’ and the tail of the arrow is refer
as ‘ i event’.
• When event number are assigned, the
finishing event number at the tail of the arrow,
and the j value of each activity must be
greater than its i value.
Basic Logic Pattern for Arrow Diagram
Event
Activity
i j

a) Basic Activity

A B
2 4 10 12

b) Independent Activity
 3 A 6 B 9

Activity B depends upon the completion of Activity A

c) Dependent Activity

C
6 9

Activity C depends upon the completion of both Activities A and B

d) A Merge
 A
2 4

Activities B and C both depend upon the completion of Activity A

e) A Burst

16

Activities C and D both depend upon the completion of Activities A and B

f) A Cross
• Dummy Arrows
- The arrows show the constraint dependency
between activities.
- Any dummy activity acting as a constraint is
shown as a dashed line with zero elapsed time.
- If two or more activities begin to run
simultaneously, the computer reads only the same
i-j number of both activities.
- So the project scheduler gives each activity its
own i-j number for the computer to use as a
relative cell address for that specific data, showing
it on the network diagram as a dummy arrow.
 Divide node
6
to correct

The use of dummy to define

a) Incorrect representation
correct logic in an arrow
diagram.
A B (Required: Activity C
2 6 8
depends upon Activities A
and B. Activity D depends
Dummy upon Activity B only)
C D
4 5 10

b) Correct representation
 A

Divide node
10 12
to correct
B

a) Incorrect representation
The use of dummy to
maintain unique numbering
A of activities.
10 12

Dummy

b) Correct representation
Removal of redundant dummies
Diagram after removal of
Original Diagram
redundant dummies
 Diagram after removal of
Original Diagram
redundant dummies
A

B E

A A C

Dummy
B E B E
 Developing the CPM Schedule
Consider the following in creating a level of
specificity in developing CPM schedule:
• Sufficiency of past performance data.
- How good is your company’s historical
information?
- Have the number shows a consistent pattern?
- If so, you can rely on them more; if not, find a
better predictive source or database.
• Study vulnerabilities.
- Are there predictable risks?
- Do certain types of activities show poor event
estimates in the past?
- Are other construction projects similar to yours
experiencing problems in areas of production?
• Seek opportunities.
- Are there particular areas of the project, such as a
typical activity which would benefit from special
attention or critical inspection before scheduling?
- Find the greatest opportunity areas and devote
extra time to them. These are areas in which you
can save the owner money and thereby improve
your professional stature and reputation.
• Time management.
- How much time can you devote to planning and
developing the schedule?
- What resources can be economically devoted to
develop the schedule?
• Steps for setting up a manual CPM network:

1. List the activities to be considered in

approximate order.
- From the Work Breakdown Structure, a listing
can be made of all the activities in the project.
This listing can be used as the basis for adding
sequence and duration information in later
steps.
2. Number the events, estimate the time
required for each, and determine the
antecedents.
- Some activities are dependent upon the
completion of others. A listing of the
immediate predecessors of each activity is
useful for constructing the CPM network
diagram.
3. Arrange the events in a CPM diagram
showing the numbered events, time
required, and antecedent relationships with
connecting lines.
4. Determine the earliest/ latest times for
starting and ending the events.
- The time required to complete each activity
can be estimated using past experience or
the estimates of knowledgeable persons.
CPM is a deterministic model that does not
take into account variation in the
completion time, so only one number can be
used for an activity’s time estimate.
5. Determine the critical path and float times.
- The critical path is the longest-duration path
through the network. The significance of the
critical path is that the activities that lie on it
cannot be delayed without delaying the project.
Because of its impact on the entire project,
critical path analysis is an important aspect of
project planning.
- The critical path can be identified by determining
the ES, EF, LS & LF.
6. Scheduler needs to obtain copies from all
subcontractors of purchase orders of long-
lead items to verify that the items have
indeed been ordered and will be delivered on
or before starting event deadlines.
• Update CPM diagram
- As the project progresses, the actual task
completion times will be known and the
diagram can be updated to include this
information. A new critical path may emerge,
and structural changes may be made in the
network if project requirements change.
By completing a CPM, the following will be found:
1. The total time to complete the project.
2. The scheduled start and finish dates foe each
task pertaining to the projects completion.
3. The tasks that are ”critical“ to the project and
must be completed exactly as scheduled.
4. The ”slack“ time available in non-critical tasks, as
well as how long they can be delayed before
they affect the project finish date.
 Advantages
• Helpful for scheduling, monitoring, and
controlling projects.
• A project manager can determine actual dates
for each activity and compare what should be
happening to what is taking place and react
accordingly.
• The activities and their outcomes can be
shown as a network.
• Displays dependencies to help scheduling.
 Advantages
• Evaluates which activities can run parallel to
each other.
• Determines slack and float times.
• Widely used in industry.
• Can define multiple, equally critical paths.
• CMP determines the project duration, which
minimized the sum of direct and indirect
costs.
 Disadvantages
• CPM's can be complicated, and complexity
increases for larger projects.
• Does not handle the scheduling of personnel
or the allocation of resources.
• The critical path is not always clear and needs
to be calculated carefully.
• Estimating activity completion times can be
difficult.
 Forward Pass Computation
• A Forward Pass through the network
determines the earliest times each activity
can start and finish;
• Forward Pass:
– How soon can the activity start? (early
start—ES)
– How soon can the activity finish? (early
finish—EF).
38
• The earliest start time (EST) for the initial
activity in a project is “time zero”;
• The EST of an activity is equal to the latest
early finish time of the activities directly
preceding it;
• The EFT of an activity is equal to its EST
plus the time (duration) required to
perform the activity.

39
 Forward Pass Computation

• Add activity times along each path in the

network (ES + Duration = EF);
• Carry the early finish (EF) to the next
activity where it becomes its early start
(ES) unless…;
• The next succeeding activity is a merge
activity, in which case the largest EF of all
preceding activities is selected.

40
 ES Task Code EF

SL Task Description

LS Duration LF

ES = Early Start ES + Duration = EF

EF = Early Finish LS + Duration = LF
LS = Late Start Total Float = LS – ES
LF = Late Finish = LF – EF
SL = Slack / Float If TF = 0, then, it is CRITICAL.
 Activity-on-Node Network Forward Pass

0 5

42
Activity-on-Node Network Forward Pass

20 20

20

43
Activity-on-Node Network Forward Pass

235

235

44
 Backward Pass Computation
Backward Pass Computation
• A Backward Pass through the network
determines the latest times each activity
can start and finish without delaying
completion of the project;
• Backward Pass:
– How late can the activity start? (late
start—LS);
– How late can the activity finish? (late
finish—LF).
45
 Backward Pass Computation

• Subtract activity times along each path in

the network (LF - Duration = LS);
• Carry the late start (LS) to the next activity
where it becomes its late finish (LF); unless
• The next succeeding activity is a burst
activity, in which case the smallest LF of all
preceding activities is selected.

46
Activity-on-Node Network Backward Pass
5

5 5

47
 Network Computation Process

• The latest finish time (LFT) for the final

activity in a project is equal to its EFT as
determined by the forward pass;
• The LFT for any other activity is equal to
the earliest LST of the activities directly
following (or succeeding) it;
• The LST of an activity is equal to its LFT
minus the time (duration) required to
perform the activity.
48
 Determining Slack (or Float)
Using Slack and Float
• Slack (or Float):
– The amount of time an activity can be delayed
after the start of a longer parallel activity or
activities
• Total slack:
– The amount of time an activity can be delayed
without delaying the entire project
• The critical path is the network path(s) that has
(have) the least slack in common- normally Zero.

49
 Determining Slack (or Float)

• Slack:
– If slack in an activity on a path is used, the ES
of all activities that follow in that chain will be
delayed and their slack reduced. Use of total
slack should therefore be coordinated with all
participants in the activities that follow in that
chain

50
• Free slack:
– Free slack, however is unique because the activity
can be delayed without delaying the ES of
activities following it. Free slack is defined as the
difference between the EF of an activity and the
ES of the activity that follows. Only activities
where that occur at the end of a chain of activities
(usually where you have a merge activity) can
have free slack – Free slack does not affect the
activities following it.
Activity-on-Node Network with Slack

200 35 235

52
Activity-on-Node Network with Slack

200

200

200

53
Activity-on-Node Network with Slack

20 185

20 20

20

54
Activity-on-Node Network with Slack

55
Transfer from Network to Gantt Chart

56
Transfer from Network to Gantt Chart

57