INDEX

I. CPM METHOD or CRITICAL PATH.....................................................................................2

1.1 Introduction .................................................................................................................................2

1.3 What is a Critical Path?..........................................................................................................3

1.4 Characteristics

1.5 Times of the CPM Method

1.6 Application fields of the CPM Method....................................................................................4

1.7 Advantages ........................................................................................................................................5

1.8 Desventajas...................................................................................................................................5

1.9 Difference between CPM and PERT ...........................................................................................5

II. REAL CASE............................................................................................................................7

III. PROPOSED EXERCISES.............................................................................................10

IV. CONCLUSION.....................................................................................................................15

V. BIBLIOGRAPHY ...................................................................................................................16
I. CPM METHOD or CRITICAL PATH

1.1 Introduction

The CPM method or Critical Path is frequently used in development and control

projects. The main objective is to determine the duration of a project, understanding this

as a sequence of related activities, where each of the activities

it has an estimated duration.

In this sense, the main assumption of CPM is that activities and their times of

durations are known, that is, there is no uncertainty. This simplifying assumption makes

that this methodology is easy to use and as much as one wants to see the impact of the

uncertainty in the duration of a project, a complementary method can be used

as it is PERT. A route is a trajectory from the start to the end of a project. In

In this sense, the length of the critical path is equal to the longest trajectory of the project.

It is important to note that the duration of a project is equal to the critical path.

The CPM method was developed in the United States of America, as part of a

operational research program for the firm Dupont and Remington Rand, seeking

the control and optimization of operating costs through proper planning of the

project component activities.

It is also an administrative process (planning, organization, direction, and control) of

all and each of the component activities of a project that must be developed

during a critical time and at the optimal cost.

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 1.2 What is the CPM method?

It is one who seeks cost control through planning and scheduling.

adequate planning of the component activities of a project, that is, to plan the duration of a

project.

1.3 What is a Critical Path?

It is the sequence of the terminal elements of the project network with the longest duration.

among them.

1.4 Características

Identify all the activities involved in the project

Define costs and estimated time for each activity.

Establish relationships between activities. Decide which one should start first and which one should follow.

it should continue afterwards.

Identify the critical path and the float of the activities that make up the

project.

Build a network or diagram connecting the different activities to their relationships

of precedence.

Use the diagram as a tool to plan, supervise, and control the project.

1.5 Times of the CPM Method

In the CPM method, two times are considered:

Normal time: It is the time in the CPM required to complete an activity if it is

It is done in normal form. It is the maximum time to complete an activity with minimal use.

In resource, the normal time approaches the probable estimated time in PERT.

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 Crashing time: Time in the CPM that would be required if no cost is avoided with

such as reducing the project's time. Minimum possible time to complete an activity with

the maximum concentration of resources.

In CPM, only a time estimate is required. All calculations are done with the

assumption that the activity times are known. As the project progresses,

These estimates are used to control and monitor progress. If any delay occurs in

el proyecto, se hacen esfuerzos por lograr que el proyecto quede de nuevo en programa

changing the allocation of resources.

1.6 Areas of application of the CPM Method

The scope of application of this method is very broad and is suitable for large projects.

small ones such as:

Dam construction.

Paving of roads.

Maintenance planning.

Computer programming.

Market research.

Regional economic studies.

Planning of university degrees.

Expansion of factories.

Planning itineraries for collections.

Sales plans.

Population censuses.

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1.7 Ventajas

It is easy to understand.

Improve the planning before the start of the project.

Improve communication among workers.

Better control over risks and uncertainties.

Reduction of delays and time savings.

Quicker response to problems.

It requires a lot of work to implement it.

Cost saving.

1.8 Disadvantages

Construction project managers and directors do not use the

software sufficient to be aware of the delays.

It requires a lot of work to implement it.

Too much interpretation leads to distrust of the owner and misuse.

One must stay updated if one is to trust her.

1.9 Difference between CPM and PERT

CPM

Consider that the times of the activities are known and can be varied.

changing the level of resources used.

As the project progresses, these estimates are used to control and

monitor the progress. If any delay occurs in the project,

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 Efforts are being made to ensure that the project is back on schedule.

changing the resource allocation.

Consider that the activities are continuous and interdependent, they follow a

chronological order and offers parameters for the right moment to start the

activity

PERT

Consider that the time variable is an unknown variable of which only

estimates are available.

The expected completion time of a project is the sum of all

expected times of the activities on the critical path.

Assuming that the distributions of the activity durations are

independent, the variance of the project is the sum of the variances of the

activities in the critical path.

Consider three time estimates: the most probable, optimistic time,

pessimistic time.

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 II. REAL CASE

The Manager of Hospital My Health has identified 10 activities for a project of

investment. A table of activities and the activity times that appear is presented.

continuation:

ACTIVITY PREDECESSORS TIME

IMMEDIATE EXPECTED
(days)
A - 12
B - 2
C - 8
D C 2
E A,B,D 1
F - 8
G E 1
H E,F 2
I G,H 1

a) Draw the activity network.

b) Timing and slack of the events.

c) Determine the critical path.

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Network diagram with normal times and costs

Critical Path

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Network diagram with accelerated times and costs

Critical Path

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 Comparative table of Normal costs vs Accelerated costs

COSTS
C. NORMALS C. ACCELERATED
100 140
80 120
120 150 Normal cost = $830
90 70 Costo acelerado = $1190
70 140
Diferencia en costos = $360
80 120
90 180
40 40
50 80
110 150
830 1190

III. PROPOSED EXERCISES

EXERCISE 1:

Below is a summary of the activities required for a project to

to be completed. The duration of each activity in weeks is fixed. It is requested that
Estimate the total duration of the project using the CPM method.

Duration Activity
Activity
(sem) Predecessor

A 6 -

B 8 -

C 12 A,B

D 4 C

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 E 6 C

F 15 D,E

G 12 E

H 8 F,G

Considering the stages of the CPM method defined above, in this case it
You must develop steps 3 and 5. In this sense, it is necessary to build the diagram identifying
The relationships between the activities and to summarize the methodology will be incorporated.
Immediately the calculation of the Slack, IC, TC, IL, TL for each activity, along with the
identification of the critical path.

Primero se construye el diagrama identificando cada actividad en un nodo (círculo) con su

respective name and in parentheses the estimated time. The arrows between activities indicate
the precedence relationships, for example, activity F can only start once
completed activities D and E.

Then, the IC and TC indicators are identified for each activity. For example, for the
Activity C can start as soon as 8 (this is because C can only start once it is finished.

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A and B, with B taking the longest and ending at 8) and the closest term being 20 (given
that activity C takes 12 weeks.

Subsequently, the IL and TL for each activity are obtained. With this information, the calculation
The slack of each activity is simple. To obtain the ES and LS of each activity we
We move from the end to the beginning. In this case, the activity that ends the latest is H.
(49 weeks) and therefore we wonder when is the latest that H could finish without delaying
the project (TL), this is clearly 49. Therefore, if the latest H can finish is 49,
The latest H can start to meet this time is 41 (since H lasts 8 weeks).
Then, the slack of H is zero. Note that the activities with slack equal to zero
correspond to the activities of the critical path. Additionally, a project may have
more than one critical path.

In our example, the critical path (the only one) is made up of the activities B-C-E-F.
With a total duration of 49 weeks.

EXERCISE 2:

CPM NETWORK DRAWING

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 SOLUTION:

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 EXERCISE 3:

Analysis of THE trajectories

Now that in example 2 the network diagram for the project was developed
RAMOV, analyze the trajectories through the network. Determine which of them is the critical route and
How long is the completion of the project expected to take.

SOLUTION:

Next, identify the trajectories and calculate the duration of each trajectory.

The longest duration is 64 days, and it is the critical path, which determines the duration.
for the entire project, therefore, the project is expected to take 63 days to complete.

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 IV. CONCLUSIÓN

The CPM method is an administrative process of planning, scheduling, execution, and

control of each and every one of the component activities of a project that must

develop within a critical time and at optimal cost.

The CPM method is one of the systems that follow the principles of networks and is

used to plan and control repetitive or similar projects.

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 V. BIBLIOGRAPHY

[Link]

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