Critical Path Method

The Critical Path Method is a project management approach that identifies the longest sequence of interdependent tasks, determining the project’s shortest completion time. It involves task identification, dependency definition, duration estimation, critical path calculation, and float determination. CPM optimizes planning, resource allocation, and delay identification, benefiting construction and product development projects.

Understanding the Critical Path Method (CPM)

At its core, the Critical Path Method is a project management approach that helps identify the most critical tasks within a project and determines the minimum amount of time needed to complete the project. CPM is based on the following fundamental principles:

  1. Task Sequencing: In any project, tasks or activities need to be performed in a specific sequence. CPM helps project managers define the logical sequence of activities required to complete the project.
  2. Duration Estimation: Each task in a project has an estimated duration, which represents the time required to complete it. These durations are essential inputs in CPM analysis.
  3. Dependency Analysis: Tasks in a project often depend on one another. CPM identifies task dependencies and helps determine which tasks must be completed before others can start.
  4. Critical Path Identification: The critical path is the longest sequence of dependent tasks that, when delayed, would delay the project’s completion. Identifying the critical path is a central aspect of CPM.

Steps in the Critical Path Method

Implementing the Critical Path Method involves several key steps:

  1. Define Project Activities: The first step is to identify and define all the activities or tasks required to complete the project. Each activity should have a clear description and an estimated duration.
  2. Determine Task Dependencies: Analyze the relationships between project activities to determine their dependencies. Dependencies can be of four types: Finish-to-Start (most common), Start-to-Start, Finish-to-Finish, and Start-to-Finish.
  3. Estimate Activity Durations: Assign estimated durations to each activity. These estimates can be based on historical data, expert judgment, or other relevant information.
  4. Create a Network Diagram: Construct a network diagram that visually represents the project’s activities and their dependencies. This diagram serves as the foundation for the CPM analysis.
  5. Identify the Critical Path: Using the network diagram, calculate the earliest start and finish times for each activity. This helps identify the critical path, which is the sequence of activities with the longest total duration.
  6. Determine Float or Slack: Activities that are not on the critical path may have float or slack, which represents the amount of time they can be delayed without affecting the project’s overall timeline.
  7. Schedule the Project: With the critical path identified, project managers can create a detailed project schedule that includes start and finish dates for each activity. The schedule also specifies milestones and deadlines.
  8. Monitor and Control: Once the project is underway, project managers continuously monitor progress, track actual durations, and compare them to the planned schedule. Any delays or deviations are addressed promptly.

Benefits of Using the Critical Path Method

The adoption of the Critical Path Method offers several advantages to organizations and project managers:

  1. Optimized Resource Allocation: CPM helps project managers allocate resources efficiently by identifying which tasks are critical and require close attention.
  2. Improved Planning: CPM provides a structured approach to project planning, making it easier to understand the project’s timeline and dependencies.
  3. Deadline Management: With a clear project schedule and critical path, project managers can proactively manage deadlines and ensure that the project stays on track.
  4. Risk Reduction: CPM allows project managers to identify potential bottlenecks and critical activities, making it easier to mitigate risks and allocate resources as needed.
  5. Enhanced Communication: CPM provides a visual representation of the project, making it easier to communicate timelines, dependencies, and milestones to stakeholders.
  6. Efficient Problem Solving: When delays or issues arise during the project, CPM helps project managers quickly identify their impact on the critical path and take corrective action.

Real-World Applications of the Critical Path Method

CPM has been applied successfully in various industries and sectors. Here are some real-world examples:

  1. Construction: In construction projects, CPM is widely used to plan and schedule activities such as site preparation, foundation laying, structural construction, and finishing work. It helps construction companies manage resources and deliver projects on time.
  2. Manufacturing: Manufacturing facilities often rely on CPM to optimize production schedules, minimize downtime, and ensure that production lines are operating efficiently.
  3. Information Technology: IT projects, including software development and system implementations, benefit from CPM’s ability to sequence tasks and manage dependencies. It helps IT teams deliver projects within budget and on schedule.
  4. Event Management: Event planners use CPM to coordinate all aspects of an event, from venue setup and catering to entertainment and guest management. CPM ensures that events run smoothly and meet deadlines.
  5. Aerospace: Aerospace companies utilize CPM to plan and execute complex projects related to aircraft design, manufacturing, and testing. It helps them meet strict industry regulations and deliver aircraft on time.

Challenges and Considerations

While the Critical Path Method offers numerous benefits, its implementation can be challenging in certain situations:

  1. Complexity: CPM may become overly complex in large, multifaceted projects with numerous interdependencies. In such cases, project managers must manage and update the network diagram diligently.
  2. Resource Availability: CPM assumes that resources are available as needed. However, in reality, resource constraints can impact project schedules. Resource leveling techniques may be necessary to address this.
  3. Inaccurate Duration Estimates: If activity duration estimates are inaccurate, the entire project schedule can be compromised. It’s essential to use reliable data and expert judgment when estimating durations.
  4. External Factors: CPM does not account for external factors like weather or regulatory delays, which can affect project timelines. Project managers must be prepared to adapt when unexpected events occur.
  5. Software Dependence: While CPM can be calculated manually, most organizations use project management software to handle the complexity of large projects. Relying solely on software can lead to a lack of understanding of the underlying principles.

Key Highlights of the Critical Path Method (CPM):

  • Project Management Technique: CPM is a widely used project management technique for scheduling and planning projects.
  • Longest Path Identification: It focuses on identifying the critical path, the longest sequence of tasks that determines the project’s minimum duration.
  • Task Dependencies: CPM considers task dependencies to establish the order in which tasks need to be executed.
  • Duration Estimation: Accurate estimation of task durations is crucial for calculating project timelines and identifying critical tasks.
  • Float Calculation: Float or slack indicates the flexibility in task scheduling without impacting the project’s overall duration.
  • Optimized Resource Allocation: CPM aids in optimizing resource allocation and utilization across tasks.
  • Early Delay Detection: The method enables early detection of potential delays, allowing timely corrective actions.
  • Complex Project Management: Suitable for managing complex projects with numerous tasks and interdependencies.
  • Accurate Planning: CPM helps project managers create well-structured project plans with clear timelines.
  • Application Diversity: Applicable to various industries, including construction and product development.
  • Enhanced Efficiency: By identifying critical tasks and optimizing schedules, CPM enhances project efficiency.

Connected Agile & Lean Frameworks


AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.


AgileSHIFT is a framework that prepares individuals for transformational change by creating a culture of agility.

Agile Methodology

Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.

Agile Program Management

Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.

Agile Project Management

Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.

Agile Modeling

Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.

Agile Business Analysis

Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.

Agile Leadership

Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles. 

Andon System

The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).

Bimodal Portfolio Management

Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.

Business Innovation Matrix

Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.

Business Model Innovation

Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.

Constructive Disruption

A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.

Continuous Innovation

That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.

Design Sprint

A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.

Design Thinking

Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.


DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.

Dual Track Agile

Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.

eXtreme Programming

eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.

Feature-Driven Development

Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.

Gemba Walk

A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.

GIST Planning

GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.

ICE Scoring

The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.

Innovation Funnel

An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Innovation Matrix

According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

Innovation Theory

The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.

Lean vs. Agile

The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.

Lean Startup

A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.

Minimum Viable Product

As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.

Leaner MVP

A leaner MVP is the evolution of the MPV approach. Where the market risk is validated before anything else


Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.


Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.

PDCA Cycle

The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.

Rational Unified Process

Rational unified process (RUP) is an agile software development methodology that breaks the project life cycle down into four distinct phases.

Rapid Application Development

RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.

Retrospective Analysis

Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.

Scaled Agile

Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.


The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.

Spotify Model

The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.

Test-Driven Development

As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.


Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.


Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.


Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.

Scrum Anti-Patterns

Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).

Scrum At Scale

Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.

Six Sigma

Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.

Stretch Objectives

Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.

Toyota Production System

The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.

Total Quality Management

The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.


The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework. 

Read Also: Continuous InnovationAgile MethodologyLean StartupBusiness Model InnovationProject Management.

Read Next: Agile Methodology, Lean Methodology, Agile Project Management, Scrum, Kanban, Six Sigma.

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