2. LESSON OBJECTIVES
1. Define CPM, CPA
2. What does CPM figure out?
3. Why is CPM needed and important?
4. How do we do it to help management decide?
5. Will there be needed action for the management
to make when CPA is done?

5. If you want to do a speedup cost analysis, you also have to
know these things about each activity:
• when a cost to complete
• if there is shorter time to complete on a crash basis
• the higher cost of completing it on a crash basis
• the availability of labour and other resources
• lead times for delivery of materials and other services
Seasonal factors – such as dry weather required in a building
project

6. Once the CPA is drawn up, it is possible to see the
CRITICAL PATH itself – this is a route through the CPA,
which has no spare time called ‘FLOAT’ or ‘slack’ in
any of the activities. When there is any delay to any of
the activities on the critical path, the
whole project will be delayed unless the firm makes
other changes to bring the project back on track.

7. Example

8. Identify the Predecessors
ACTIVITIES PREDECESSORS TIME
A - 2
B - 3
C A 4
D A 2
E A 6
F C 9
G D 12
H B,E 4
I H 15
J G,F,I 10

9. 320

10. In finding the Critical Path, you need to find the
earliest finish time for any activity by using the
formula: Earliest Finish (ES) + time (t)

12. LET US COMPUTE OUR OWN CP
• Using the example, make your own
computation of the critical paths in your steps
of production processes
• Do this in paper and submit the output at the
end of our class
• Do some experiments of crashing your own
activities and present them later in our class
discussion

13. ASSIGNMENT
• Create your own CPM, CPA
• Identify your predecessors
• Compute your earliest time to finish, latest
time to finish
• Analyze your critical paths
• What should you do as management to solve
the issue?
• Upload your work to atiram40@yahoo.com