Critical Path Analysis Flashcards
Critical Path Analysis
This is a method of planning and controlling large projects and is used to make decisions on the management of resources and time.
It aims to find the quickest and cheapest path to complete a project with.
The Critical Path
This is the one sequence which cannot afford any delays without holding up the rest of the operation.
EST
Earliest Start Time
LFT
Latest Finish Time
Critical Task
An activity without spare time
Float Time
Spare time between non-critical tasks
Free Float
This is the amount of time available for an activity without delaying the next activity
Free Float Formula
EST at the end of activity - (EST at the end + Duration of activity)
Total Float
This is the amount of time available for an activity without delaying the whole project
Total Float Formula
Activity’s LFT - (Activity’s LFT EST + Activity’s Duration)
Advantages of Critical Path Analysis
-Allows for JIT production, reducing need for working capital
-Cash flow is improved
-Competitive Edge by being more efficient
-Supports Time-Based Management
Disadvantages of Critical Path Analysis
-Time-Scale judgements could be over or under optimistic leading to inconsistencies when producing one, especially for the first time.
-Does not ensure quality
-External factors can become overly involved. For example the delay of suppliers
