Critical Path Analysis
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- Sharon Crawford
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1 Critical Path nalysis Critical Path nalysis (CP), is sometimes called Network nalysis It is a tool used to plan activities so that a job can be completed in the shortest time It breaks a job down into a number of tasks, and looks at the dependency of them For example, list the activities that must be completed in order to make a cup of coffee It is used commonly in manufacturing and construction usiness Studies Online: Slide
2 Parts of the Network network consists of 2 things: n CTIVITY This requires time and/or resources They are drawn as RROWS from left to right The length of the arrow is NOT important Node These represent the start and the end of an activity They are represented by CIRCLES Every network MUST start and end with a node usiness Studies Online: Slide 2
3 Simple Network Diagram business wishes to build a new factory efore it can do so it needs to: uy the land (ctivity will take 2 weeks) Draw up Plans (ctivity will take weeks) simple network may be drawn to illustrate this scenario: 2 usiness Studies Online: Slide
4 Illustrating Simultaneous ctivities Of course in reality some activities can be carried out simultaneously Using the previous example: ssume that whilst in the process of buying the land the firm wants to apply for planning permission (ctivity will take weeks) 2 Try drawing a network using your instructions for making a cup of coffee usiness Studies Online: Slide 4
5 Developing The Network There are a number of problems with our previous example: There is no way of identifying the nodes It doesn t help us identify the crucial activities In order to do this the nodes can be developed in order to show more information: Node numbers showing order of activities shown in the left hand semi circle of each node The righthand quarters will be used to hold additional information usiness Studies Online: Slide
6 Calculating The Earliest Start Time The main reason for drawing a network is to identify the CRITICL activities To do this we must calculate the earliest time at which any given activity can start This is called the Earliest Start Time (EST) of the activity It is calculated using the following formula: EST = EST of Previous activity + Duration of previous activity usiness Studies Online: Slide 6
7 Calculating The Earliest Start Time This information is then placed in the top right hand quarter of the node The first node will LWYS have an EST of zero EST goes in top righthand quarter of the node Using our first simple example, the EST for each activity would be calculated as follows: = + = 2 usiness Studies Online: Slide 7
8 The EST and Simultaneous ctivities When there are simultaneous activities there may be more than one value for the EST Eg: + 2 = 2 + = 2 Since ctivity is DEPENDENT on both ctivities and, it cannot start until both are complete So we must take the HIGHEST figure This means that the EST is weeks + = 7 usiness Studies Online: Slide 8
9 Recap of The Earliest Start Time The EST of the first activity is always zero Calculate the EST by working left to right across a network It is calculated using the following formula: EST = EST of Previous activity + Duration of previous activity When there are 2 simultaneous activities the HIGHEST figure is used as the EST usiness Studies Online: Slide 9
10 Calculating The Latest Finishing Time There is one final piece of information needed to complete our network diagram To identify the CRITICL activities we must also know the latest time at which any given activity must end This is called the Latest Finishing Time (LFT) of the activity It is calculated by working CKWRDS across the network using the following formula: LFT = LFT at end of following activity Duration of following activity usiness Studies Online: Slide
11 Calculating The Latest Finishing Time This information is then placed in the bottom right hand quarter of the node The first node will LWYS have an LFT of zero LFT goes in bottom right hand quarter of node Using our first simple example, the LFT for each activity would be calculated as follows: 2 2 = 2 = 2 Since the earliest time this project can be finished is weeks then this is also the latest we would like to finish the project. s such: The EST and LFT of the last node are LWYS the same usiness Studies Online: Slide
12 The LFT and Simultaneous ctivities When there are simultaneous activities there may be more than one value for the LFT Eg: 2 = 2 2 = = If ctivity starts on week 2 it cannot be completed by week So we must take the LOWEST figure This means that the LFT is week 7 7 usiness Studies Online: Slide 2
13 Recap of The Latest Finishing Time The LFT of the last activity is always equal to its EST The LFT of the first activity is always zero Calculate the LFT by working right to left across a network It is calculated using the following formula: LFT = LFT at end of following activity Duration of following activity When there are 2 simultaneous activities the LOWEST figure is used as the LFT usiness Studies Online: Slide
14 The Float n activity without spare time is CRITICL Spare time is referred to as the FLOT There are 2 types of float, each with its own formula: FREE FLOT This is the amount of spare time available for an activity without delaying the NEXT CTIVITY TOTL FLOT This is the amount of spare time available for an activity without delaying the WHOLE PROJECT Free Float = EST at End of activity (EST at start + Duration of activity) Total Float = ctivity s LFT (ctivity s EST + ctivity s Duration) usiness Studies Online: Slide
15 Calculating The Float The free and total float for our simple example would be: Free Float = EST at End of activity (EST at start + Duration of activity) ctivity Duration (Weeks) 2 EST LFT Free Float 2 Total Float 2 Total Float = ctivity s LFT (ctivity s EST + ctivity s Duration) 7 usiness Studies Online: Slide
16 What Does This Mean? ctivity Duration (Weeks) EST LFT Free Float Total Float This data tells us: That ctivity can be delayed 2 weeks without delaying ctivity That ctivity can be delayed 2 weeks without delaying the whole project That ctivity is CRITICL any delay will hold up the project That ctivity is CRITICL any delay will hold up the project usiness Studies Online: Slide 6
17 Identifying The Critical Path The critical path identifies the activities that have no float time It is usually identified on a diagram as follows: 2 2 Dotted Line used to Note: quick visual check can be made that the critical path is correct, since any node on the critical path should have equal EST and LFTs However this example shows that this method alone does not identify the critical activities identify CRITICL PTH 7 7 usiness Studies Online: Slide 7
18 Question Create and complete a network diagram to represent the following project: ctivities (4 days) and ( days) can start simultaneously ctivitiy C (4 days) can begin once activities and are complete ctivity D ( days) can begin once activity is complete ctivity E ( day) ends the project and can begin once activities C and D are complete usiness Studies Online: Slide 8
19 nswer It is not possible.unless a DUMMY CTIVITY is used You may have drawn something like this 4 2 C 4 This network is incorrect because it does not show that ctivity C is dependent upon both activities and 4 E D usiness Studies Online: Slide 9
20 Dummy ctivities dummy activity is one that is created purely to illustrate dependency They are not labelled and take up no time They are represented by a dotted arrow: So our previous diagram would be completed as follows: 4 2 C 4 4 E D Now complete the network, and identify the critical path usiness Studies Online: Slide 2
21 Correct nswer To Original Question 4 2 C E 9 D ctivities, C and E lie on the critical path ctivity Duration (Days) EST LFT Free Float Total Float 4 C 4 9 D 9 E 9 usiness Studies Online: Slide 2
22 dvantages of Using CP It requires careful planning so projects should run smoothly Improves efficiency and cash flow Materials can be ordered to arrive only as they are needed If problems occur the implications can be identified quickly This means informed decisions can be made usiness Studies Online: Slide 22
23 Disadvantages of CP Diagrams can become unmanageable lthough software is available to help produce networks Plan will only work if relevant staff have been consulted E.g. timescales need to be realistic Gantt charts tend to be preferred since they visually show the time span of activities usiness Studies Online: Slide 2
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