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Critical Path Analysis

Copyright 2006 – Biz/ed

 http://www.bized.co.uk

Critical Path Analysis

Copyright 2006 – Biz/ed

 http://www.bized.co.uk

Planning and Monitoring Tool

Copyright 2006 – Biz/ed

 http://www.bized.co.uk

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

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 http://www.bized.co.uk

Critical Path Analysis

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

Copyright 2006 – Biz/ed

 http://www.bized.co.uk

The Process

Copyright 2006 – Biz/ed

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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)

Copyright 2006 – Biz/ed

 http://www.bized.co.uk

Critical Path Analysis

Earliest Start Time (EST) Arrows
Node numbers showing order of
indicate the
activities in the left hand semi-circle
order of the
of each node.
tasks, the
letter above
shows the
order, the
A 3 B time period
1 2 below the
3 5 5 arrow

The Critical Path Latest Finish Time (LFT)

Nodes: Show the start and finish of a task

Copyright 2006 – Biz/ed