Critical Path Method (CPM): The Ultimate Guide (2024)

To find the critical path method, first list all project activities, then identify which activity initiations depend on the completion of others. Next, create a critical path diagram and calculate the duration and float times of all tasks. Finally, identify the critical path and those activities that can be completed in parallel to it.

Here are six steps to find the critical path.

1. List Project Activities

For the purposes of eliminating redundancy, if you have created a project management plan for your project, you likely created a work breakdown structure. Use this structure to source a list of all the activities you must complete for each milestone of your project.

If you have not created a work breakdown structure for your project, you should list all the activities you must complete to create your project’s final deliverable. For example, if your project aims to plan a wedding, the tasks that must be complete to produce a planned wedding may include meeting with the couple, writing a guest list, booking vendors and coordinating with the venue. List out everything you expect to do in order to prepare for the big day.

Now, estimate how much time it will take to complete each task. For example, it may take two days to gather the couple’s preferences, budget and wedding date and a week to select and book a venue. Continue adding a duration time to each task. Then, compile it all into a table with a row for a task ID―you can assign a letter of the alphabet to each one―the name of the task and a task duration in whatever time interval most appropriately fits your project.

Task IDTaskTask Duration (in Days)
AProject start0 days
BGather couple's preferences and wedding date2 days
CBook a venue7 days
DWrite a guest list7 days
EBook vendors14 days
FDesign and send save-the-dates21 days
GSelect the wedding party3 days
HOrder the wedding attire21 days
ICreate a seating chart7 days
JHelp the couple write their vows7 days
KDecorate the venue2 days
LPlan the rehearsal dinner7 days
MWedding day1 day

2. Identify Activity Dependencies

A dependency refers to an activity within a project that cannot be initiated until another activity has been completed. In our wedding planning project, for example, the planner must first book the venue, then write the guest list, given that the venue selection determines how many guests can attend the wedding comfortably. So, writing the guest list is dependent on first booking the venue.

To record dependencies, use the list from step one, then add an “immediate predecessors” column to the right side of the table. Next, for each activity, determine “which task needs to be completed before beginning this task?” Then, in the “immediate predecessors” column for each activity, list the Task ID of all activities that must be completed before the activity you are addressing can begin.

For example, in the table below, “writing the guest list” is dependent on booking the venue. So, we wrote C (the task ID for “book a venue”) in the “immediate predecessor” column for “write a guest list.” It is also important to know the couple’s preferences before writing the guest list in order to avoid uncomfortable confrontations during dinner. Therefore, we write the task ID for “gathering the couple’s preferences”—or B—in the immediate predecessor’s column for “write a guest list.”

Here’s an example of a dependencies table to serve as a guide for completing this step.

Task IDTask DescriptionTask Duration (in Days)Immediate Predecessors
AProject start0 days
BGather couple's preferences and wedding date2 daysA
CBook a venue7 daysB
DWrite a guest list7 daysB, C
EBook vendors14 daysA, C,

D

FDesign and send save-the-dates21 daysB, C
GSelect the wedding party3 daysB, C
HOrder the wedding attire21 daysB, G
ICreate a seating chart7 daysB, F, G
JHelp the couple write their vows7 daysB
KDecorate the venue2 daysC, B
LPlan the rehearsal dinner7 daysB, C, E, G, H, I, J
MWedding day1 dayA-M

3. Create a Critical Path Diagram

To create a critical path diagram, draw a box to represent each task on the dependencies table you created in step two. Then, show dependencies by drawing arrows that connect each predecessor task to its dependent task(s). (You can see an example of this in the example section of this article.)

For example, since booking the venue (Task ID C) is dependent on gathering the couple’s preferences (Task ID B), create a box titled “gather the couple’s preferences – B” and a box labeled “book a venue – C.” Next, draw a line from the “gather the couple’s preferences” box to the “book a venue” box. Continue until all your tasks and their dependencies are recorded on your chart.

Pro tip: You can easily create a free critical diagram chart using Google Draw. Follow the prompts to choose a flowchart template, then adjust the template to your needs and add text to label each box. Finally, select the arrow tool to drag an arrow from one box to the next, thereby adding dependency arrows. Your diagram can then be saved to your Google Drive account.

4. Calculate the Duration of Each Activity

You have already figured out how long each activity will take. Now, it’s time to figure out the earliest start and end dates of each activity. This will help you to know when you must schedule each activity to ensure the entire project is finished on time with all tasks completed. Use the forward pass and backward pass techniques to calculate the earliest start and earliest finish dates of each activity.

Forward Pass

The forward pass helps you determine the earliest start time and earliest finish time you can employ for each activity. To do so, determine the early start time of each activity by recording the finish date of the previous activity. Put simply, the early start time is equal to the finish time of the previous activity. Then, add the duration of the activity to this recorded time.

Continue calculating the earliest start and finish day of each activity until you get to the last activity. The number you arrive at for the earliest finish day of last activity in the project is the earliest finish day of the project or the target completion day of the project.

Backward Pass

Your next calculation—the backward pass—will tell you the latest start date and latest finish date of each activity. Begin with the last activity and work backward in your project timeline to the very first activity. Use the following calculation to do so:

Late start (LS) = Late finish (LF) – activity duration

* Use the lowest late start (LS) value of the previous activity as the late finish value (LF) for this formula.

5. Estimate Float Time

In project management, figuring the float time helps you determine if an activity can take longer than expected without risking finishing the next task late or the overall project late. It can also tell you if you can start it late or early while still finishing all tasks in the project on time. Simply put, it tells you how much flexibility you have when scheduling and completing each task. Use the following formula to determine the float time for each activity:

Slack time = Late start (LS) – Early Start (ES)

6. Calculate the Critical Path

The critical path is the longest sequence of dependent activities. Some activities may run parallel to this path but they can be completed simultaneously around critical path activities without delaying the project’s finish date. To calculate the critical path, isolate the activities with a zero float time and put them in order. Alternatively, start with the first activity, add all dependent activities to it and then calculate the duration of the longest dependent sequence of activities.

The float times from each activity will now help you calculate the critical path. Isolate all activities with a float time of zero. Together, these make up your critical path. These activities cannot be started or ended early or late or the whole project may risk either not finishing on time or finishing with a lower quality. Other activities that have a float time of more than zero are activities that must be completed in parallel to the activities that make up your critical path.

Another way to calculate your critical path is by assigning a zero start time to the first activity. Add to that zero the duration of the first activity. From there, add subsequent activities that must be finished after your first activity and their duration times. Continue adding on dependent activities and their durations until you reach the last activity in the dependency sequence. The sequence of activities with the longest total duration makes up the critical path.

Critical Path Method (CPM): The Ultimate Guide (2024)

FAQs

What is the critical path in the CPM method? ›

Summary. The critical path method is a technique that allows you to identify tasks that are necessary for project completion. The critical path in project management is the longest sequence of activities that must be finished on time to complete the entire project.

What does the critical path method calculate? ›

The critical path (or paths) is the longest path (in time) from Start to Finish; it indicates the minimum time necessary to complete the entire project. This method of depicting a project graph differs in some respects from that used by James E.

How does the critical path method CPM work and how it impacts the final milestone? ›

The critical path method does two main things: It helps project managers find the most important tasks in a project that critically affect how long a project will take. It helps project managers make an efficient schedule so they can finish the entire project on time and within budget.

What is a real life example of the critical path method? ›

For example, if you're planning a wedding, one of the activities might be “book reception venue.” But before you can accomplish that, you need to have a date for the wedding, so “choose wedding date” would be a dependency on “book reception venue.”

What is the critical path in a CPM analysis is found by? ›

The critical path in a CPM analysis is found by locating the activities times with zero slack.

What does a 7 CPM mean? ›

CPM stands for cost per mille, or cost per thousand impressions (“mille” is Latin for “thousands”). CPM refers to the average cost of one thousand ad impressions or the average amount you pay every thousand times internet browsers load your ad.

What is a CPM chart? ›

CPM, which stands for Critical Path Method, is an algorithm of resource utilization that schedules project activities. CPM is used to construct a project model that includes: A task list required for project completion.

What is the critical path in agile? ›

The critical path is the sequence of activities that will take the longest to complete and that, therefore, determines the overall length of the project.

What are critical path activities examples? ›

The tasks are called critical activities because the whole project runs over if they're delayed. For example, if you're building a house, the critical path might include activities like digging the foundations, building the walls, and installing the roof.

How to find critical path in Excel? ›

Staying on the View tab, select Critical from the Highlight list. The critical path shows up in yellow. To see only the tasks on the critical path, choose the Filter arrow, then pick Critical.

What is the critical path in CPM? ›

What is critical path method? The critical path method (CPM) is a step-by-step project management technique for process planning that defines critical and non-critical tasks with the goal of preventing project schedule problems and process bottlenecks.

What is the conclusion of the critical path method? ›

Conclusion. Critical path identification is required for any project-planning phase. This gives the project management the correct completion date of the overall project and the flexibility to float activities.

What is the critical path method CPM quizlet? ›

The Critical Path Method (CPM) allows for an evaluation of uncertainty in project completion times. Using a beta probability distribution to characterize uncertain activity times is practical because it allows managers to use judgmental estimates to identify the distribution.

What is the critical path method CPM ): A coordinating tool? ›

CPM is a step-by-step project management technique to identify activities on the critical path. The approach breaks a project into work tasks, displays them in a flow chart, and then calculates the project duration based on estimated time frames for each. It identifies tasks that are critical, time-wise.

What is the critical path in project management using PERT or CPM? ›

If you're behind schedule, you know which tasks can be skipped without impacting the integrity of the work. Therefore, the critical path is the longest sequence in a network diagram or the shortest duration for the project to be completed. There are some terms used in CPM just as there are in PERT.

What is the critical path in the Gantt chart? ›

The critical path in the Gantt chart is the sequence of tasks that could delay the project end date when any of the tasks get delayed. For example, in the recording below, Task B is not critical and can delay one day without affecting the project end date, while delaying Task C means that your project will end later.

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