Developing software, providing services to end consumers, or operating in the B2B sector – businesses in any industry reach a stage of growth where the number of tasks exceeds what can be realistically managed. This is a sign of business progress. To tackle this challenge, we will examine CPM, the Critical Path Method, from classical methodologies. It is an algorithm of actions and stages designed to solve organizational issues for directors managing many tasks.
For example, Michael is the manager of a catering service in the capital. He loves his job and knows all the ins and outs. However, he hasn’t taken a vacation in two years. Recently, his firm won a tender for 500,000 meals for the Olympic team athletes. He needs to oversee the timing of meal deliveries, coordinate protein shake supplies, and schedule waitstaff shifts. On top of that, there are other tasks: arranging office cleaning, conducting interviews, ordering disposable food containers. Due to such a workload, important orders from private clients have been missed several times.
Does this sound familiar? What should Michael and other managers with similar stories do?
They can start simple – by applying the Critical Path Method.
What is CPM?
Brilliant solutions are created to address specific problems. In 1957, when the American company DuPont faced issues with the reconstruction and launch of chemical plants, the term “CPM” did not exist. The company’s managers had a simple task: to transition to a new production standard as painlessly as possible.
They solved it with the available human, financial, and time resources, thus laying the foundation for the Critical Path Method (CPM).
Over time, CPM evolved from a set of dry theoretical principles into a full-fledged practical method. It is worth applying for managers and directors to control deadlines, analyze, and manage projects.
What is the Critical Path Method in Project Time Management?
The Critical Path Method in project time management (CPM) is a step-by-step process management system for individual projects and entire businesses. By defining all actions on the critical path, future costs can be adequately estimated, and project timelines can be forecasted.
Why doesn’t manager Michael go on vacation? Because as the catering service grows, the number of tactical and strategic tasks has increased proportionally. A single person can manage with a daily planner, and two can manage with a board and sticky notes. Michael needs to oversee the interconnection between hundreds of tasks daily for a dozen employees. Michael implements the Critical Path Method in the company.
For example, regional manager Dwight needs to win a catering tender for an international IT conference in 2017. Since time is one of the most valuable resources, he breaks down the remaining time before the tender deadline (21 days) into five segments, each allocated to a specific task. The bigger the task, the more time is allotted to it.
Dwight breaks down the project preparation into five tasks:
- Detailed study of tender conditions – 2 days
- Identify resources needed to meet the conditions – 1 day
- Compare catering resources with tender requirements – 3 days
- Complete the tender checklist items – 13 days
- Submit the tender application – 2 days
Dwight calculates the necessary time, informs Michael, and allocates tasks among colleagues to shorten the timelines. As a result, the catering service wins the tender, and Dwight receives a substantial salary bonus. No more last-minute submissions or overnight shifts!
What is the Critical Path in Project Management Analysis?
If the Critical Path Method is a management and planning system, the critical path is the longest chain of tasks in this system. All tasks on this path are critically important and cannot be postponed, delayed, or forgotten without jeopardizing the project.
Let’s see how this works in reality and can be represented in a Gantt chart in Worksection.
Michael ordered a landing page for the catering service with beautiful sales copy, animations, videos, and a photo gallery to boost sales. The task is complex and needs to be done “yesterday.”
Fortunately, his acquaintance, programmer Ryan, knows about the critical rendering path – the set of minimally necessary actions, resources, and calculations needed to start rendering the page.
In the technical task, the following blocks are specified for the ideal landing page:
- Header (logo, title, subtitle) – essential for clarity
- Call-to-Action block – critical for sales
- Carousel – showcasing new dishes
- Text blocks – for seasonal offers and descriptions
- Gallery – can be added later
- Timer – for future discounts or offers
- Tariffs – important for pricing
- Map – to be added after moving to a new office
- Footer – showcasing partnerships and trust
Based on this, Ryan builds a priority scheme from most to least important:
- Header
- Carousel
- Tariffs
- CTA block
- Footer
- Text blocks
- Gallery
- Map
- Timer
Calculating the Critical Path in Project Management
In 1997, when Steve Jobs was invited back to Apple, the company was struggling. The legendary company was bouncing from one opportunity to another, announcing, releasing, and simultaneously freezing dozens of new products. Each department managed product timelines independently. It’s no wonder deadlines for product modifications were constantly missed.
Steve was a genius but not omnipotent. He brought in key people, but one person cannot be everywhere at once.
It was time to calculate the critical path. Jobs might have used a custom method for graphically displaying the critical path. Let’s present it in such a way:
Task Name | Task Code | Days | Entry | Exit |
Dissolve the board | A | 14 | — | B |
Introduce new board members | B | 12 | A | C |
Remove Gil Amelio as CEO | C | 2 | B | D |
Elect Steve Jobs as CEO | D | 1 | C | E |
Write a new slogan for Apple | E | 15 | D | F |
Order a new ad campaign from TBWA\Chiat\Day | F | 5 | E | G |
Diagnose profitability of existing projects | G | 18 | D | H, I, J |
Terminate unprofitable projects: Newton, Cyberdog, Opendoc | H | 13 | G | K |
Refuse to renew software licenses | I | 6 | G | K |
Analyze the PC market | J | 19 | G | K |
Define future product concepts | K | 4 | H, I, J | L |
Work on naming new devices | L | 4 | K | M, N |
Form team for Power Macintosh G3 and Powerbook G3 | M | 3 | L | O |
Form team for iMac and iBook | N | 3 | L | O |
Create a presentation concept | O | 9 | M, N | P |
Choose venue and technical equipment | P | 8 | O | Q |
Write press releases for leading media | Q | 2 | P | — |
Then a scheme resembling a mind map was created and sent to key employees.
Jobs ensured the project timeline for “Resurrection of Apple.” The best proof was the iMac G3’s success and the opening of the first Apple Stores.
The calculated critical path can be conveniently represented as a diagram.
To build such a diagram, follow this checklist:
- Identify tasks.
- Sequence tasks using a table.
- Visualize using a diagram similar to the one above.
- Estimate time for each task.
- Update the diagram as needed.
Advantages and Disadvantages of CPM
Using CPM without thought won’t help achieve goals. Like many methods, it’s a powerful tool for company goals.Advantages:
1 Identifies key tasks and their impact.
2 Optimizes time management.
3 Enables quick response to changes.
4 Compares planned vs. actual results.
5 Shows clear dependencies.
6 Focuses on critical tasks and outcomes.
Disadvantages:
1 Increases product creation time due to time reserves.
2 Tasks often take all allotted time (Parkinson’s Law).
3 Finishing one task early doesn’t always finish the project early.
4 Difficult to use for creative tasks with many variables.
5 Hard to apply in high-risk projects.
Principles of CPM
- Visuality: Effective with diagrams, graphs, infographics, and schemes. Tools like Worksection simplify this.
- Temporal: Time defines task and project deadlines and dependencies.
- Predictability: Helps forecast necessary time.
- Priority: Determines task importance.
Steps to Manage Project Timelines
- Specify tasks.
- Determine dependencies.
- Visualize.
- Forecast completion times.
- Identify critical paths.
- Update the scheme regularly.