How the Critical Path Method Was Created 

Using the critical path method to schedule projects began in the late 1950s, with two
simultaneous, unrelated projects. The US Navy’s Fleet Ballistic Missile (Polaris) Program was
behind schedule and needed help resolving the problem. The suggested solution was to divide
the project into several thousand tasks, represent each task by an arrow, connect the arrows in
proper sequence, estimate the duration of each task, and calculate the project duration and the
degree of schedule criticality of each task. 

At about the same time, the EI DuPont de Nemours Company, an American chemical company,
was experiencing delays in its plant turnarounds, a project to rearrange production facilities for
different products. They, too, needed help and the proposed answer was similar to that of the
Polaris Program. 

The developers of the Polaris Program’s approach called their solution the Project Evaluation
and Review Technique (PERT), while the DuPont method was called Critical Path Method
(CPM).  Although these methods are similar, they used different techniques for estimating task
duration. 

The PERT method used three different time estimations for each task duration and calculated the
probability of project completion by any given time. The DuPont approach used one time
duration for each task; it was concerned not only with project completion time, but also with
analyzing the extra costs that would accrue if the project duration were decreased.  

Dr. Bennett says that today, “the terms PERT and CPM are used interchangeably, both meaning
any network scheduling method and PERT having lost its inclusion of three time estimates and
probabilities.”

Key Steps in the Critical Path Method

There are six steps in the critical path method: 

Step 1: Specify Each Activity

Using the work breakdown structure, you need to identify each activity (or task) involved in the
project. This activity specification list should only include higher-level activities. When detailed
activities are used, the critical path analysis may become too complex to manage and maintain. 

A work breakdown structure breaks down projects into manageable sections. 

The first step is to identify the main deliverables of a project. Then you can start breaking down
the high-level activities into smaller chunks of work. 
You can choose how to display your work breakdown structure. Some people use a tree
structure, while others use lists or tables. An outline is one of the easiest ways to represent a
work breakdown structure.

Step 2: Establish Dependencies (Activity Sequence)

Some activities will depend on the completion of others. Listing the immediate predecessors of
each activity will help you identify the correct order. To correctly identify activities and their
precedence, ask yourself these three questions for each activity on your list from step one: 

 Which task should take place before this task happens?

 Which tasks should be finished at the same time as this task?

 Which tasks should happen right after this task?

Step 3: Draw the Network Diagram

 

Once you have identified the activities and their dependencies, you can draw the critical path
analysis chart (CPA), known as the network diagram. The network diagram is a visual
representation of the order of your activities based on dependencies.

This critical path diagram used to be drawn by-hand, but there are now software programs that
can create this diagram for you. 

Step 4: Estimate Activity Completion Time

Using past experience or the knowledge of an experienced team member, you must now estimate
the time required to complete each activity. If you are managing a smaller project, you will most
likely estimate time in days. If you are working with a complex project, you may have to
measure time in weeks.

If you don’t feel comfortable using your best-guess estimates, you can use the 3-point estimation
method, which is designed to put more weight on the most realistic timeframe. 
In three-point estimation, you must come up with three time estimates for every task, based on
prior experience or best guesses. The estimation method is presented in formulas in order to
calculate the time duration more accurately. 

a = the best-case estimate

m = the most likely estimate
b = the worst-case estimate 
These three values identify what happens in an optimal state, what is the most likely, and what
happens in the worst case scenario. 

Once you’ve identified these values, you can use them in two different formulas. The first is used
to find the Weighted Average, which puts more weight on the “Most Likely” value. The formula
is as below. E stands for Estimate, and the 4 and 6 represent the standard method to place more
weight on the most realistic value. 

E = (a + 4m + b) / 6

The second way of using these values is known as Triangular Distribution. The main difference
is that this method doesn’t put more weight on the “Most Likely” value. The formula is as below.
E stands for Estimate, and the 3 represents the standard method.

E = (a + m + b)/3

Step 5: Identify the Critical Path 

 

There are two ways you can now identify the critical path. You can eyeball your network
diagram and simply identify the longest path throughout the network -- the longest sequence of
activities on the path. Be sure to look for the longest path in terms of longest duration in days,
not the path with the most boxes or nodes. 

You can also identify critical activities with the Forward Pass/Backward Pass technique,
identifying the earliest start and finish times, and the latest start and finish times for each
activity. 
If you have multiple critical paths, you will run into network sensitivity. A project schedule is
considered sensitive if the critical path is likely to change once the project begins. The more
critical paths in a project, the higher the probability of a change in schedule. 

Step 6: Update the Critical Path Diagram to Show Progress 

As the project progresses, you will learn the actual activity completion times. The network
diagram can then be updated to include this information (rather than continuing to use
estimations).

By updating the network diagram as new information emerges, you may recalculate a different
critical path. You will also have a more realistic view of the project completion due date and will
be able to tell if you are on track or falling behind.

Other Scenarios in the Critical Path Method

One of the biggest benefits of the critical path method is identifying the crucial tasks that, if
missed, will impact your project’s completion date. It will also provide visibility into your
project’s status, allowing you to see if you are on track. 

Shortening Your Schedule

As you’re going through the critical path method, you may find that you want to intentionally
shorten the duration of your project or that you need to compress your project schedule in order
to meet the deadline. There are two ways to do this: fast tracking or crashing.

Fast Tracking 
In fast tracking, you look at the critical path and decide which activities can be done parallel
to each other, to move the project along faster. You only need to review the activities on the
critical path because all the other activities have float (if you shorten the duration of those
activities, you’re only giving them more float). 

While fast tracking reduces your project timeframe, it also involves risk because you are
performing parallel activities that were originally planned to be performed in sequence. 

Crash Duration 
Crash duration, or crashing, refers to the shortest possible time for which an activity can be
scheduled. This happens by adding more resources to completing that certain activity.
However, crashing the critical path results in lower quality of work because the goal in
crash duration is speed.

Managing Resource Constraints 

As you manage your project, you may also run into resource constraint issues that could change
the critical path. If you try to schedule certain activities at the same time, you may find that you
need more people than are available. As a result, those activities will need to be rescheduled.
Resource leveling is the process of resolving these conflicts. 

Resource Leveling and Expansion 

With resource leveling, you can resolve conflicts over allocating resources. A resource-
leveled schedule may include delays due from resource bottlenecks (a resource being
unavailable at the necessary time). 

Resource leveling may also result in a previously shorter path becoming the longest or most
“resource critical” path. This happens when the tasks on the critical path are affected by
resource constraints. 

A similar concept is called the critical chain, which protects activity and project durations
from unexpected delays due to resource constraints. 

Assessing the Final Project

These scenarios demonstrate all the unexpected changes that can occur when managing a project,
and how they can affect the critical path. While things are always subject to change, the good
news is that you can measure the variance from your original project schedule and track how it
impacted your final project. 

Flexibility and Assessing Delays

A schedule created from the critical path method naturally involves a lot of fluctuation
because you have to use best-guess estimates to calculate time. If one mistake is made in
activity completion time, your whole critical path schedule could change. Or, you may need
to purposefully delay project activities due to resource constraints. 

Sorting out these delays and determining what caused them can help you avoid similar
issues in the future. An important part of your post-project plan is the As Built Critical Path,
which analyzes the specific causes and impacts of changes between the planned schedule
and actual schedule implemented. The As-Built Critical Path is a schedule that shows the
dates that the activities actually occurred and allocates time by determining the
responsibility for the delays on the critical path. 

How to Use PERT in the Critical Path Method

If you recall the history of the critical path method described earlier in this article, you’ll
remember that the PERT (Program Evaluation and Review Technique), developed by the Navy
in the late 1950s to help produce missiles faster, is a variation on the critical path method that
takes a more skeptical view of activity time estimates. 

What is PERT?
Critical path method and PERT are often used in the same contexts and scenarios. Although they
are similar, you should understand each concept and their differences.
A PERT chart, or activity-on-arrow diagram, is a visual representation of your project’s
schedule, showing the sequence of tasks and which can be completed at the same time. A PERT
chart is made with a lot of the same information that is used in the critical path method, like
earliest and latest start dates, earliest and latest finish dates, and slack (or float) between
activities.  

But, the biggest difference between the critical path method and PERT is in time estimation. In
the critical path method, time variance is not accounted for. You’re using best-guess estimates
for completion time, and those times may change. With PERT, you’re putting more weight on
the most realistic completion time.

Critical Path Method and PERT

You can use PERT in your critical path method in step four of the process, when you have to
estimate activity completion times. The purpose of using PERT is to bias time estimates toward
the most likely scenario and move away from unrealistically short timeframes. 

To use PERT, you must estimate the shortest possible time each activity will take, the most
likely length of time, and the longest time it might take if the activity lasts longer than expected. 

With that information, you can use this formula when you have to estimate activity completion
times in the critical path method (step four).

Shortest time + 4x likely time + longest time / 6 = expected activity completion time

How to Find the Critical Path on a PERT Chart 

You can identify the critical path on a PERT chart because the chart includes the same
information needed for the network diagram in the critical path method.

A PERT chart is drawn with circles for each activity, with the name of the activity and estimated
duration in each circle. Arrows represent the paths that relate to dependencies.

To find the critical path on the PERT chart, first identify how many paths you can take from start
to finish. Then, add up the total duration of activities on that path. For example, 

Path 1 duration: 12 days (task 1 and task 3)

Path 2 duration: 11 days (task 2 and task 3)
Path 3 duration: 10 days (task 4)
In this case, the critical path is task 1 and task 3 because it has the longest duration. 
Studying for the PMP Exam? Here’s What You Need to Know about the Critical Path
Method

To earn your Project Management Professional (PMP) credential, you need to pass the PMP
exam, a 200-question, multiple choice test offered by the Project Management Institute (PMI).
Critical path is an important part of the PMP Exam and there will certainly be questions about it
on the test. You’ll need to be able to draw a network diagram, identify the critical path, use the
Forward Pass/Backward Pass technique, and calculate slack.

Here is an overview of the most important things to know about the critical path method to help
you pass the PMP exam:

How to Draw a Network Diagram

On the PMP Exam, you will be asked to draw a network diagram. The exam will list all the
activities in a project and will tell you when the activities can start. With that information, you’ll
be asked to identify the critical path and its duration.

To explain how to draw a network diagram, Bennett has created a sample eight-task project:

1. Design Tank Project (10 days) can start right away.

2. Construct Tank Foundation (25 days) and Select Tank Supplier (8 days) can start as soon
as Design Tank Project is finished.

3. Manufacture Tank Components (10 days) can start as soon as Select Tank Supplier is
finished.

4. Deliver Tank to Jobsite (4 days) can start as soon as Manufacture Tank Components is
finished.

5. Prepare Installation Drawings (3 days) can start as soon as Select Tank Supplier is
finished.

6. Assemble Tank (15 days) can start as soon as Deliver Tank to Jobsite, Prepare
Installation Drawings and Construct Tank Foundation are all finished.

7. Test & Commission Tank (4 days) can start as soon as Assemble Tank is finished.

8. After Test & Commission Tank is finished, the project is complete. 

 
To answer the question, you’ll need to draw a network diagram.

Here’s how:

1. Draw a box and label it as your first activity (Design Tank Project). In the box, make sure
to write the duration in days (in this case, it is 10 days).
 2. Begin your diagram by drawing the relationship between Design Tank Project, and
Construct Tank Foundation and Select Tank Supplier. You can do this by drawing a box
for the other activities, and drawing arrows to these boxes from Design Tank Project.

3. Continue drawing boxes to represent activities, and arrows to represent when an activity

can begin. 
 

 
After you have drawn the network diagram, you will be able to find the critical path. Remember:
the critical path is the longest duration path throughout the network in days, not the path with the
most boxes.

In this example, the critical path is Design Tank Project, Construct Tank Foundation, Assemble
Tank, and Test & Commission Tank, with a total duration of 54 days.

You can identify the critical path by eyeballing the diagram to find the longest duration in days,
or you could use the Forward Pass/Backward Pass Technique outlined in the next section.

How to Use the Forward Pass/Backward Pass Technique

The Forward Pass/Backward Pass technique is another way to find the critical path. It is best
used when you have multiple branches, or multiple entry points, for an activity. 

You may also need to use the Forward Pass/Backward Pass technique if you are asked to identify
the earliest start or finish times, or latest start or finish times, for an activity. Or, to find the slack
(or float) for each activity.

Before you start using the Forward Pass/Backward Pass technique, here are some terms that you
first need to understand:

 Earliest start time (ES): The earliest time an activity can start once the previous
dependent activities are completed.

 Earliest finish time (EF): The earliest start time for the activity plus the time required to
complete the activity (the earliest an activity can be completed).

 Latest finish time (LF): The latest time an activity can be completed without delaying the
entire project.

 Latest start time (LS): The latest finish time minus the time required to complete the
activity.

As you run the Forward Pass/Backward Pass technique through your network diagram, arrange
each value according to the follow legend (SL stands for slack, which we’ll cover in the next
section). 
 
How to Do the Forward Pass: Finding the Earliest Start Time and Finish Time
There are two formulas in the Forward Pass/Backward Pass technique. The first is the Forward
Pass formula for you to use as you move from beginning to end in your network diagram (from
your first activity to your last). This formula will find the earliest start time (ES) and the earliest
finish time (EF) for each activity.

To start the Forward Pass, make the ES of the first task zero. For all other tasks, the ES is the
same as its immediate predecessor’s EF.

Use this formula to calculate EF:

EF = ES + Duration

So, for Design Tank Project, the ES is zero and, the EF is 10 (10+ duration of 0). We also know
that the ES for Select Tank Supplier is 10 and the EF is 18 (10 + duration of 8). Continue like
this throughout the network diagram.

How to Do the Backward Pass: Finding the Latest Start Time and Finish Time
The second formula is for Backward Pass, when you are moving from the last activity to the first
activity (you are moving backwards). This formula will find the latest start time (LS) and latest
finish time (LF) for each activity.

To start the Backward Pass, make the last activities LF the same as its EF. For all other tasks, the
LF is the same as its immediate predecessor’s LS.

Use this formula to calculate LS:

LS = LF - Duration

For the Test & Commission Tank, the LF is 54 and, the LS is 50 (54 - duration of 4). For
Assemble Tank, the LF is also 50 and, the LS is 35 (50 - duration of 15 days). Continue this
formula throughout the network diagram.

To check that you’ve done Backward Pass correctly, the first activity (Activity A) should have
an LS (latest start time) of 0.

Here’s the completed Forward Pass/Backward Pass technique: 

 

Two Rules to Remember for Forward Pass/Backward Pass

During the Forward Pass, if you find activities that join (multiple activities that flow into one
activity), you must run the Forward Pass formula for each entry point and use the highest value
from the formulas.
During the Backward Pass, if you have activities that join, you must run the formula for each
entry point and use the lowest value.

How to Calculate Float or Slack on the PMP Exam

Now that you have calculated ES and LS for each activity, you can find the float (or slack).

The slack time, also known as float time, for an activity is the time between the earliest and latest
start time. Critical activities, activities on the critical path, will always have zero slack.

There are two formulas to calculate slack based on the values you identified in the Forward
Pass/Backward Pass technique.

Slack = LF - EF

Slack = LS - ES

You will have to use this process if you are asked to identify an activity’s slack on the PMP
exam. Or, if you’re not sure which activities are on the critical path, you could find the slack of
each activity, knowing that activities on the critical path always have zero slack.

The final figure below shows the slack values for each task. You can see that the four tasks on
the critical path have zero slack -- Design Tank Project, Construct Tank Foundation, Assemble
Tank, and Test & Commission Tank. 
 

Key Critical Path Terms for the PMP Exam

Here are the most important terms related to the critical path method that you should understand
before taking the PMP exam.

 Critical path method (CPM): The critical path method is a step-by-step project

management technique for process planning that identifies critical and noncritical tasks,
preventing timeframe problems and process bottlenecks.
 Critical Path DRAG (Devaux’s Removed Activity Gauge): The amount of time that an
activity on the critical path is adding to the project’s duration. Or, alternatively, the
amount of time the project completion date would be reduced by decreasing a critical
path activity’s duration to zero.
 Criticality Index: Used in risk analysis, the Criticality Index shows how often a particular
task was on the critical path during analysis. Tasks with a high Criticality Index are more
likely to cause delay to the project since they’re more likely to be on the critical path.
 Earliest start time: The earliest time an activity can start once the previous dependent
activities are completed.
 Earliest finish time: The earliest start time for the activity plus the time required to
complete the activity.
 Latest finish time: The latest time an activity can be completed without delaying the
entire project.
 Latest start time: The latest finish time minus the time required to complete the activity.
 Total float: The amount of time an activity can be delayed from its early start date
without delaying the entire project.
 Free float: The amount of time an activity can be delayed without delaying the early start
date of a successor activity.
 Forward pass: The process to determine the early start or early finish times for activities
in the critical path method.
 Backward pass: The process to determine the late start or late finish times for activities in
the critical path method.
 Network diagram: A schematic display of the relationships between project activities,
always drawn from left to right to reflect the order of the project.
 Network analysis: The process of breaking down a complex project into components
(activities, durations, etc) and plotting them to show their interdependencies and
interrelationships.