Critical Path analysis

• Critical path analysis is a project management tool that uses network analysis to plan complex and time-sensitive projects 
• Critical Path Analysis shows:

  • The order in which activities must be completed
  • The longest path of project activities to the completion of the project
  • The earliest and latest that each project activity can start and finish without delaying completion of the project as a whole
• Calculating Float Time:

  • Float time exists where there is a difference between the Earliest Start Time (EST and the Latest Finish Time (LFT)
  • LFT for the activity - Duration of the activity - EST for the activity
• Limitations of critical path analysis:

  • Very lengthy or complex projects involve a very large number of activities that have numerous dependencies
  • Network analysis often relies on estimates and forecasts
  • Network analysis does not guarantee the success of a project 
  • Resources may not prove to be as flexible as hoped when managers identify float periods