INTRODUCTION

CPM Network Analysis as the technique is sometimes called,

developed along two parallel streams, one industrial and the other
military.
CPM (Critical Path Method) was the discovery of
M.R.Walker of E.I.Du Pont de Nemours & Co. and J Kelly.E. of
Remington Rand, circa 1957. The computation was designed for the
UNIVAC-I computer. The first test was made in 1958, when CPM
was applied to the construction of a new chemical plant. In March
1959, the method was applied to maintenance shut-down at the Du
Pont works in Louisville, Kentucky. Unproductive time was reduced
from 125 to 93 hours.
CPM, which stands for "Critical Path Method," is a project
management technique that involves breaking down a project into
individual tasks, identifying dependencies between them, and then
pinpointing the longest sequence of tasks (known as the "critical
path") that directly impacts the project's overall completion time;
essentially, it helps project managers understand which tasks are
crucial to completing a project on schedule and where potential delays
could occur.
The Critical Path Method (CPM) is a project management
technique used to identify the longest sequence of dependent tasks,
determining the shortest possible project duration. It helps in efficient
scheduling, resource allocation, and identifying critical activities that
directly impact project completion. This mini project explores the
application of CPM in optimizing project timelines and improving
overall efficiency in project management.
 CHAPTER: I
COMPONENTS OF CPM
To begin work with the critical path, it is important to
understand each part or concept that applies when creating a chart.
● The critical path is the entire path through the diagram that will
take the longest amount of time to complete. This sets the precedent
of what time the whole process needs to be completed by and gives
other shorter activities some slack time.

Figure 1

● Events take place at the nodes, the circles with numbers in

them identifying which event is taking place at that time.

Figure 2
 ● Activities are the paths represented by arrows connecting
each node to each other. The arrows point from the event that just
took place to the event(s) that can now start because the event leading
to it/them has finished. Each path is accompanied by a time. This is
the time that it takes to complete the activity.

Figure 3

● The earliest start time is just what it says, the soonest time
that an of the diagram and moving forward through it, adding up the
activity times needing to be completed before it.
● The latest start time is the latest time that an activity can
start to keep the whole system still on track to finish with the critical
path (longest path through the system). This is calculated by working
from the end of the diagram with the total time and subtracting the
activity time(s) from that.
● Slack event time is the free time that an event has to stay on
it’s necessary time track. It is calculated by subtracting the earliest
event time from the latest event time. All events that are involved in
the critical path will have a slack time of 0 because there is no extra
time available for that event.
 ● Slack activity time is similar to slack event time yet viewed
in terms of the activities instead of the event nodes. All activities
involved in the critical path will have a slack activity time of 0.
These concepts will be easier to apply when seen in an
example situation accompanied by calculations.

Making the Critical Path

The critical path is the longest route usually measured in time
for a series of activities that all relate to each other. For example,
starting at Node 1 and ending at Node 8. There may be a few optional
routes to the final node or there may be many routes. The critical path
is defined as the route that takes the longest.
Step-by-step approach:

Figure 4

1. The first step in every critical path problem is defining your

starting point and your ending point.
2. From here we want to follow the paths from each node to the next
and view all the optional routes. The path from one node to another
node is called an Activity.
 3. Between each pair of nodes there will be an activity time. During
this step we want to write down each activity time for every path in
the system.
4. Once all your activities times are written down we can start
finding the critical path or the longest path.
5. To do this, simply start at the beginning node and choose a path
till you reach the ending node. Add all the activity times for that path
together.
6. Continue doing this for all possible routes. Whichever route is
the longest will be your critical path.
7. This path will define your bottom number (x/y)-(the y value) at
each node. This means at your first node you will have (0/0). Since
our path must begin here the y value is 0. Follow the critical path and
at each node we will add the activity time to the bottom value. At the
last node we will have the total time on the bottom.
8. For the critical path, both the top and bottom numbers will be
identical just like the first node.
9. For the other paths we will simply count backwards from the end
back to the beginning. (This will make more sense in the following
problem)
10. The paths that are not part of the critical path will have a
numerator smaller than the denominator. This difference between the
numerator and denominator is your slack time to start each event or
node. Remember that there is no slack time for any event or node on
the critical path.
The following problem has been solved already, but it is good
practice to try it for yourself. All the information you need is in the
table and the visual representation is below that. Now there is also the
Earliest Event Time (𝐸𝐸𝑇), Latest Event Time 𝐿𝐸𝑇 , Slack Event
Time (𝑆𝐸𝑇), and Slack Activity Time (𝑆𝐴𝑇) to consider. These values
are relatively easy to calculate once you have created the pictorial
diagram such as the one below.
Key: x1/y1 = Node10/0
E𝑺𝑻(𝑁𝑜𝑑𝑒 1) = Earliest time an event can start at node 1, the
numerator (x1)
E𝒂𝒓𝒍𝒊𝒆𝒔𝒕 𝑺𝒕𝒂𝒓𝒕 𝑻𝒊𝒎𝒆 𝐸𝑆𝑇 = 𝑆𝑡𝑎𝑟𝑡 𝑇𝑖𝑚𝑒 𝑓𝑖𝑟𝑠𝑡 𝑛𝑜𝑑𝑒+ 𝐴𝑐𝑡𝑖𝑣𝑖𝑡𝑦
𝑡𝑖𝑚𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑛𝑜𝑑𝑒𝑠
L𝑬𝑻 (𝑁𝑜𝑑𝑒 1) = Latest time an event can start at node 1 but not delay
the critical path (y1)
Latest Start Time = Earliest Start Time of the Next node - Activity
Time between
S𝑬𝑻 (𝑁𝑜𝑑𝑒 1) = The Slack event time at node 1. This should be 0
because the first node is part of the critical path.
S𝑬𝑻 (1) = 𝐿𝐸𝑇(1) −𝐸𝐸𝑇(1)
S𝑨𝑻 (𝑁𝑜𝑑𝑒 1) = The slack activity time at node 1. This should be 0
because the first node is part of the critical path.
S𝒍𝒂𝒄𝒌 𝑨𝒄𝒕𝒊𝒗𝒊𝒕𝒚 𝑻𝒊𝒎𝒆=𝐿𝑆𝑇 𝑒𝑛𝑑 𝑛𝑜𝑑𝑒− 𝐸𝑆𝑇 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔
𝑛𝑜𝑑𝑒−𝐴𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝑡𝑖𝑚𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑡ℎ𝑒 𝑛𝑜𝑑𝑒𝑠

As we see above, The Slack Event times for all nodes on the critical
path are 0. These figures relate to the individual node instead of the
movement from one node to the next (Slack Activity Time).
For the example problem above, the critical path is “A-D-I” since this
path takes the longest time. The diagram below shows a pictorial way
of representing the data. The red arrows are the critical path.
 CHAPTER: II
BASIC STEPS IN CPM

Project scheduling by CPM consists of four main steps

1.Planning
• The planning phase is started by splitting the total project into
small projects. These smaller projects in turn are divided into
activities and are analyzed by the department or section.
• The relationship of each activity with respect to other activities
are defined and established and the corresponding responsibilities and
the authority are also stated.
Thus, the possibility of overlooking any task necessary for the
•
completion of the project is reduced substantially.

2. Scheduling
• The ultimate objective of the scheduling phase is to prepare a
time chart showing the start and finish times for each activity as well
as its relationship to other activities of the project.
Moreover, the schedule must pinpoint the critical path activities
•
which require special attention if the project is to be completed in
time.
For non-critical activities, the schedule must show the amount
•
of slack or float times which can be used advantageously when such
activities are delayed or when limited resources are to be utilized
effectively.

3. Allocation of resources
• Allocation of resources is performed to achieve the desired
objective. A resource is a physical variable such as labour, finance,
equipment and space which will impose a limitation on time for the
project.
• When resources are limited and conflicting, demands are made
for the same type of resources a systematic method for allocation of
resources become essential.
•Resource allocation usually incurs a compromise, and the
choice of this compromise depends on the judgment of managers
• The final phase in project management is controlling. Critical
path methods facilitate the application of the principle of management
by expectation to identify areas that are critical to the completion of
the project.
• By having progress reports from time to time and updating the
network continuously, a better financial as well as technical control
over the project is exercised.
• Arrow diagrams and time charts are used for making periodic
progress reports. If required, a new course of action is determined for
the remaining portion of the project.
 CHAPTER: III
NETWORK DIAGRAM
REPRESENTATION

In a network representation of a project certain definitions are used

1. Activity
Any individual operation which utilizes resources and has an
end and a beginning is called activity. An arrow is commonly used
to represent an activity with its head indicating the direction of
progress in the project. These are classified into four categories
1. Predecessor activity – Activities that must be completed
immediately prior to the start of another activity are called
predecessor activities.
2. Successor activity – Activities that cannot be started until
one or more of other activities are completed but immediately
succeed them are called successor activities.
3. Concurrent activity – Activities which can be
accomplished concurrently are known as concurrent activities. It
may be noted that an activity can be a predecessor or a successor
to an event or it may be concurrent with one or more of other
activities.
4. Dummy activity – An activity which does not consume
any kind of resource but merely depicts the technological
dependence is called a dummy activity.
 The dummy activity is inserted in the network to clarify the
activity pattern in the following two situations
• To make activities with common starting and finishing
points distinguishable
•To identify and maintain the proper precedence relationship
between activities that is not connected by events.
For example, consider a situation where A and B are concurrent
activities. C is dependent on A and D is dependent on A and B
both. Such a situation can be handled by using a dummy activity
as shown in the figure.

2. Event
An event represents a point in time signifying the completion
of some activities and the beginning of new ones. This is usually
represented by a circle in a network which is also called a node or
connector.
The events are classified into three categories
1. Merge event – When more than one activity comes and
joins an event such an event is known as merge event
2. Burst event – When more than one activity leaves an event
such an event is known as burst event.
3. Merge and Burst event – An activity may be merge and
burst event at the same time as with respect to some activities it
can be a merge event and with respect to some other activities it
may be a burst event.

3. Sequencing
The first prerequisite in the development of network is to
maintain the precedence relationships. In order to make a network,
the following points should be taken into considerations
• What job or jobs precede it?
• What job or jobs could run concurrently?
• What job or jobs follow it?
• What controls the start and finish of a job?
Since all further calculations are based on the network, it is
necessary that a network be drawn with full care.
 CHAPTER: IV
CRITICAL PATH IN NETWORK ANALYSIS

Basic Scheduling Computations

The notations used are

(i, j) = Activity with tail event i and head event j
Ei = Earliest occurrence time of event i
Lj = Latest allowable occurrence time of event j
Dij = Estimated completion time of activity (i, j)
(Es)ij = Earliest starting time of activity (i, j)
(Ef)ij = Earliest finishing time of activity (i, j)
(Ls)ij = Latest starting time of activity (i, j)
(Lf)ij = Latest finishing time of activity (i, j)

The procedure is as follows

1.Determination of Earliest time (Ej): Forward Pass computation

• Step 1
The computation begins from the start node and move
towards the end node. For easiness, the forward pass computation
starts by assuming the earliest occurrence time of zero for the
initial project event.
 The computation begins from the start node and move
towards the end node. For easiness, the forward pass computation
starts by assuming the earliest occurrence time of zero for the
initial project event
• Step 2
1.Earliest starting time of activity (i, j) is the earliest event time of
the tail end event i.e. (Es)ij = Ei
2. Earliest finish time of activity (i, j) is the earliest starting time
+ the activity time i.e. (Ef)ij = (Es)ij + Dij or (Ef)ij = Ei + Dij
3.Earliest event time for event j is the maximum of the earliest
finish times of all activities ending into that event i.e. Ej = max [(Ef)ij
for all immediate predecessor of (i, j)] or Ej =max [Ei + Dij]

2 Backward Pass computation (for latest allowable time)

• Step 1
For ending event assume E = L. Remember that all E’s have
been computed by forward pass computations.
• Step 2
Latest finish time for activity (i, j) is equal to the latest event
time of event j i.e. (Lf)ij = Lj
• Step 3
Latest starting time of activity (i, j) = the latest completion time
of (i, j) – the activity time or (Ls)ij =(Lf)ij - Dij or (Ls)ij = Lj - Dij
• Step 4
Latest event time for event ‘i’ is the minimum of the latest start
time of all activities originating from that event i.e. Li = min [(Ls)ij
for all immediate successor of (i, j)] = min [(Lf)ij - Dij] = min [Lj -
Dij]

3.Determination of floats and slack times

There are three kinds of floats

Total float – The amount of time by which the completion of an
•
activity could be delayed beyond the earliest expected completion
time without affecting the overall project duration time.
Mathematically
(Tf)ij = (Latest start – Earliest start) for activity ( i – j)
(Tf)ij = (Ls)ij - (Es)ij or (Tf)ij = (Lj - Dij) - Ei
Free float – The time by which the completion of an activity can
•
be delayed beyond the earliest finish time without affecting the
earliest start of a subsequent activity.
Mathematically
(Ff)ij = (Earliest time for event j – Earliest time for event i) – Activity
time for ( i, j)
(Ff)ij = (Ej - Ei) – Dij
Independent float – The amount of time by which the start of
•
an activity can be delayed without effecting the earliest start time of
any immediately following activities, assuming that the preceding
activity has finished at its latest finish time.
Mathematically
 (If)ij = (Ej - Li) - Dij
The negative independent float is always taken as zero.
• Event slack - It is defined as the difference between the latest event
and earliest event times.
Mathematically
Head event slack = Lj – Ej, Tail event slack = Li - Ei

4. Determination of critical path

• Critical event – The events with zero slack times are called
critical events. In other words, the event i is said to be critical if Ei =
Li
• Critical activity – The activities with zero total float are
known as critical activities. In other words, an activity is said to be
critical if a delay in its start will cause a further delay in the
completion date of the entire project.
• Critical path – The sequence of critical activities in a network
is called critical path. The critical path is the longest path in the
network from the starting event to ending event and defines the
minimum time required to complete the project.
Exercise
 CHAPTER: V
APPLICATION OF CPM

These methods have been applied to a wide variety of

problems in industries and have found acceptance even in government
organizations. These include
Construction of a dam or a canal system in a region
Construction of a building or highway
Maintenance or overhaul of airplanes or oil refinery
Space flight
Cost control of a project using COST
Designing a prototype of a machine
Development of supersonic planes

Real-Life Examples of Network Analysis in Operations

Research
Network analysis is widely used across industries for planning,
scheduling, and optimizing complex operations. Below are some real-
world examples where CPM (Critical Path Method) and PERT
(Program Evaluation and Review Technique) play a crucial role.

1. Construction Project Management (CPM)

Example: Building a Residential Complex
Activities: Site preparation, foundation work, framing, plumbing,
electrical work, interior finishing.
Dependencies: Plumbing and electrical work must be completed
before interior finishing.
Critical Path: The longest sequence of dependent tasks determines
the shortest project completion time.
Benefit: Ensures timely project completion and optimizes resource
allocation.
2. Airline Scheduling and Route Optimization (Network Flow
Analysis)

Example: Flight Scheduling for an Airline

Activities: Aircraft maintenance, crew assignments, ticketing,
baggage handling, flight operations.
Dependencies: Aircraft maintenance must be completed before
scheduling flights.
Network Optimization: Minimizes delays and maximizes efficiency
in flight schedules.
Benefit: Reduces flight delays and improves operational efficiency.

3. Manufacturing and Production Planning (CPM)

Example: Car Manufacturing Process

Activities: Assembling the chassis, installing the engine, painting,
interior setup, quality checks.
Dependencies: Engine installation must be completed before
painting.
Critical Path: Identifies the sequence of tasks that determine
production time.
Benefit: Reduces production delays and improves supply chain
coordination.
4. Software Development & IT Project Management (CPM)

Example: Developing a Mobile Application

Activities: Requirement analysis, UI/UX design, coding, testing,
debugging, deployment.
Dependencies: Coding must be completed before testing.
Critical Path: The sequence of tasks that affect the launch date.
Benefit: Ensures timely delivery of software projects and resource
efficiency.
5. Supply Chain and Logistics (Network Optimization)

Example: E-commerce Order Fulfillment (Amazon, FedEx, DHL)

Activities: Order processing, packaging, warehouse sorting,
transportation, last-mile delivery.
Dependencies: Orders must be packaged before transportation.
Network Flow Analysis: Optimizes delivery routes to minimize
shipping delays.

Benefit: Reduces delivery time and enhances customer satisfaction

6. Hospital & Healthcare Management (Network Flow Analysis)

Example: Emergency Room (ER) Patient Treatment Workflow

Activities: Patient check-in, triage, diagnostics (X-ray, MRI),
treatment, discharge.
Dependencies: Diagnostics must be done before treatment.
Critical Path: The sequence of procedures determining total
treatment time.
Benefit: Reduces wait times and optimizes hospital resource usage.
7. Event Planning & Management (CPM)

Example: Organizing the Olympic Games

Activities: Venue selection, infrastructure setup, athlete
accommodation, ticket sales, security arrangements.
Dependencies: Infrastructure must be ready before athlete
accommodations.
Critical Path: Determines the minimum time required for event
preparations.
Benefit: Ensures smooth execution of large-scale events.

8. Military & Defense Operations (Network Flow Analysis)

Example: Planning a Military Operation

Activities: Troop mobilization, logistics, intelligence gathering, attack
execution, post-operation review.
Dependencies: Intelligence gathering must be completed before
attack execution.
Critical Path: Identifies the sequence of actions to achieve mission
success.
Benefit: Optimizes resource allocation
 CONCLUSION
The Critical Path Method (CPM) is a crucial project
management tool that helps in efficiently planning, scheduling, and
controlling complex projects. By identifying the longest sequence of
dependent tasks, CPM ensures that project managers can allocate
resources effectively, minimize delays, and optimize workflow.
Through this project, we have demonstrated how CPM aids in
determining the shortest possible project duration while highlighting
critical and non-critical tasks. Implementing CPM improves decision-
making, enhances time management, and reduces risks, making it an
essential technique in industries such as construction, manufacturing,
and software development.
In conclusion, CPM is a valuable method for optimizing project
execution, ensuring timely completion, and improving
overall efficiency.
Finding the critical path has many complex steps involved, and
this resource should put you in a good position to apply these
concepts in many diverse situations. It has been an important topic
for many years, and many large companies have used it to optimize
their processes. The critical path can be used to determine the most
time-consuming path to show what activities must be completed on a
strict time frame and what activities have slack time in their
schedule. Applying this method can help save companies millions and
you could be the one responsible.