MINDANAO STATE UNIVERSITY

MGT 203 – QUANTITATIVE ANALYSIS FOR

MANAGEMENT

TITLE: CRITICAL PATH METHOD (CPM)

PREPARED BY: AL-KHAIR U. SANGCOPAN, R.A

OUTLINE OF THE TOPIC

• PROJECT MANAGEMENT
• NETWORK ANALYSIS
• NETWORK TERMINOLOGIES
• OBJECTIVES OF PERT AND CPM
• HOW TO DRAW NETWORK DIAGRAM
• FIND THE CRITICAL PATH, EST, LFT, LST, EFT, FLOAT
 PROJECT MANAGEMENT

NETWORK ANALYSIS

Critical Path Method Project Evaluation and

(CPM) Review Technique (PERT)

Project: it is a combinaton of interrelated activities which must be

executed in a certain order before the entire task is completed

Basic requirments of a project:

1. It should be completed without any delay

2. It should use available man-power and other resources as small as
possible
3. It should involve as small investment as possible.
 Network Terminologies

1. Activity: it is a physically identifiable part of a project which requires

time and resources for its execution. An activity is represented by
arrow.

2. Event: the beginning and end points of an activity are called events or
nodes. Event does not consume any resource. It is represented by a
circle.
Dij
i j 3. Path: an unbroken chain of activity arrows connecting the intial event
Actiity – (X) to some other event is called path.
Event – (i) Event – (j)
4. Network: it is grapichal representation of ligecally and sequentially
connected arrows and nodes representing activities and events of a
project. Networks are also called as arrow diagram.
Objectives of CPM and PERT is to provide analytic means for scheduling the activities

Steps of technique:

Step – 1: define the activities oof the problem, their precedence

relationship and their time required.

Step – 2: precedence relationship among the activities are represented by

network.

Step – 3: involes specific computations to develop the time schedule for

the project.

Step – 4: the schedule must be revised to reflect the realities on the ground.
 How to draw a Network Diagram

Rules for Network Construction: Activity Precedence

1. No two activities should have the same starting and ending event.
2. The activities are put in a logical sequence based on precedence A --
relationship.
3. If needed, use dummy activity to show the logical relationship. B --
4. Each activity is represented once and only once in the network C A
diagram.
5. There is only one starting and ending event in the network diagram.
D A,B
Example – 1: Draw the network diagram for the following activities:

Activ
v ity (A) ity (C
)
A cti 2
:
1 : (DM) 4
:
Activ
ity (B 3 y (D)
) vit
Acti
Example – 2: Draw the network diagram for the following activities:

E
4
A 2 I
C

1 G
D 5
3
B 6 7 8 9
F H J K

Activity Precedence Activity Precedence

A -- G C,D
B -- H G,F
C A I E
D B J H,I
E A K J
F B
Example – 3: Construct a network diagram for a project in which activities have the following precedence:
-A,C,D can start immediately and E>B,C ; F,G>D ; H,I>E,F ; J>I,G ; K>H; B>A

Activity Precedence Activity Precedence

A -- G D
B A H E,F
C -- I E,F
D -- J I,G
E B,C K H
F D

A 2
6
B

H
C E K
1 4 5
I
D
3 F
7 8
G J
 Example – 3: Construct a network diagram, find the critical path, EST, LFT, LST, EFT, FLOAT

Activity Duration
1-2 13
13 15
2
1-3 12
2
1 5 2-4 2
4
3-4 8
12 3 2
8 2-5 15
PATH 1: CRITICAL PATH 28 W
4-5 2
1- 2 – 5 = 13 +15 = 28 W
PATH 2:
1 – 2 – 4 – 5 = 13 + 2 + 2 = 17 W
PATH 3:
1 – 3 – 4 – 5 = 12 + 8 + 2 = 22 W
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Example – 3: Construct a network diagram, find the critical path, EST, LFT, LST, EFT, FLOAT
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Activity Duration
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1-2 13
KK 13 15
2
KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK 1-3 12
13 13 2
1 5 2-4 2
4
0 0 28 28 3-4 8
12 3 20 26 2
EST LFT 8 2-5 15
12 18
4-5 2

1. Forward pass  MAX

2. Backward pass  MIN
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Example – 3: Construct a network diagram, find the critical path, EST, LFT, LST, EFT, FLOAT
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FF = EST - EST - D
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KK 13 1 5
LFT – EFT (OR) LST - EST IF EST – LFT - D
2
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13 13 2
1 5
4
0 0 28 28
12 3 20 26 2
EST LFT 8
12 18

ACTIVITY DURATION EST EFT LST LFT TOTAL FREE INDEPEND

(EST+D) (LFT-D) FLOAT FLOAT ENT FLOAT

1-2 13 0 13 0 13 0 0 0

1-3 12 0 12 6 18 6 0 0

2-4 2 13 15 24 26 11 5 5

3-4 8 12 20 18 26 6 0 0

2-5 15 13 28 13 28 0 0 0

4-5 2 20 22 26 28 6 6 0