Critical Path Analysis

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Presentation transcript:

Critical Path Analysis

Critical Path Analysis

Planning and Monitoring Tool

Critical Path Analysis May be used as part of the decision making process Enables a firm to plan and monitor operations Time related – identifies the maximum time for an operation to be completed Identify potential problems in implementing operation Identifies where and when resources (including human ones) are needed

Critical Path Analysis Advantages Maximise efficiency in the use of time Improve efficiency and generate cost saving in the use of resources Beneficial to monitoring cash flow Disadvantages Usefulness may be limited in complex and large scale operations Necessity of having clear and reliable information Skilled management and team philosophy is essential

The Process

CPA – the Process Identify and prioritise the activities Identify which activities MUST be done before others EST – identify earliest start time LFT – identify latest finish time Identify the FLOAT – tasks which can be completed outside the critical path Identify the critical path – points connecting ESTs and LFTs (where these are the same)

Critical Path Analysis Earliest Start Time (EST) Arrows indicate the order of the tasks, the letter above shows the order, the time period below the arrow Node numbers showing order of activities in the left hand semi-circle of each node. 1 2 A 3 B 3 5 5 The Critical Path Latest Finish Time (LFT) Nodes: Show the start and finish of a task