Analyzing a project’s critical path makes planning tasks easier and keeps them moving on schedule.
While it may seem complex at first glance, critical path analysis isn’t only for large organizations and complicated projects. It’s a useful workflow that’s easy to implement for companies of all shapes and sizes.
By the end of this article, you’ll know the basics of critical path analysis, including why it’s beneficial, how to use it effectively and whether it’s the right project management technique for your business.
What is critical path analysis in project management?
Critical path analysis (CPA) – also known as the critical path method (CPM) – is a project management technique that identifies the longest sequence of dependent, critical tasks. To execute a project on schedule, all these tasks must start and end on time. If there’s a delay in any critical tasks, the project won’t be ready.
Look at the below critical path analysis example:
Tasks A, C, G and H form the longest path, totaling 57 days. Any delays to these tasks will delay the project.
Tasks B, D, E and F are non-critical tasks. Because they have slack (which we’ll define later), they can start or end later than planned without affecting the project timeline.
Project managers who identify this chain of tasks can:
Optimize the project timeline
Minimize delays
Allocate resources effectively
Ensure timely project completion
We’ll explore the benefits of CPA in more detail later.
What is a dependent task?
A dependent task is a task that relies on the start or completion of another task before it begins.
Think about a construction project. You must gather materials (task A) before construction begins (task B). In this case, task B depends on the completion of task A.
There are different types of task dependencies. This example uses the finish-to-start (FS) dependency, where a task requires the completion of another task before it begins. FS is the most common type of dependency. We’ll cover the different types of dependencies in more detail later.
Note: Many project managers use critical path analysis alongside the Waterfall methodology. This approach outlines dependent tasks in a linear format like a Gantt chart, with all tasks on a sequential timeline. The Waterfall methodology provides the framework for project progress, while CPA manages timing and dependencies.
What is float (or slack)?
Float (sometimes known as slack) is the amount of time you can delay a task without affecting the project duration.
There are two types of float:
Free float is the amount of time you can delay a task without impacting a later task
Total float is the amount of time you can delay a project without impacting the overall project completion date
Tasks on the critical path have zero float, meaning any delays in these tasks will delay the whole project. However, functions outside the critical path sometimes have float.
Imagine tasks A, B and C are on the critical path, which lasts 15 days. Task D isn’t on the critical path. You allocate 10 days to complete this task, meaning you have five days of slack.
If task D takes longer than 10 days to complete, it won’t impact project delivery – provided you complete it within the five days of slack.
Why is critical path analysis useful?
The first mention of the critical path method goes back to September 1963. The Harvard Business Review published “The ABCs of the Critical Path Method” by F. K. Levy, G. L. Thompson and J. D. Wiest. In the article, they explain:
The premise for the framework
How to use it
Why it’s such an effective decision-making tool
Let’s look at why this framework is still so popular:
It prioritizes tasks without float. Critical path activities must start and end on time for the project to finish on schedule. CPM allows project managers to see and prioritize these tasks to ensure the project meets its deadline.
It improves resource allocation. Understanding which tasks are critical to success allows project managers to optimize resources. For example, they can assign additional employees to ensure a punctual completion time of critical tasks or prevent key members from taking vacation during the project.
It avoids bottlenecks. Bottlenecks occur when someone or something prevents a task’s completion. For example, a sales manager can have too many budgets to approve and needs more time. Project managers who pinpoint dependencies understand which activities can and cannot run in parallel. As a result, it’s easier to spot where bottlenecks might occur and prevent them from happening.
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When should you use the critical path method?
Although CPM is a valuable tool for different projects, it’s better suited to some specific structures. Here are some examples of when to use the critical path method.
For linear project timelines
CPM is ideal for linear, sequential timelines with well-defined tasks. However, its rigid structure isn’t the best choice for Agile projects that need more flexibility.
An Agile project involves completing work in short sprints or cycles, known as iterations. The project evolves, with each sprint prioritizing different improvements or adjustments based on the performance of the last sprint.
There is no start, middle and end like in a linear project. An Agile framework like Scrum is a better option for these projects.
For large and complex projects
CPM also plays a significant role in larger and more complex projects with many tasks, milestones and deliverables.
Project managers must use CPM to pinpoint the jobs required for timely delivery. As a result, they can prioritize time, resources and staff schedules.
For example, you can ensure employees don’t face any resource constraints when trying to complete a task. If a developer needs access to a particular system, you can establish the proper permissions before the project begins.
However, that’s not to say CPM doesn’t have a place in smaller projects. It still helps you keep track of deadlines and priorities while ensuring timely delivery. Consider these factors when determining the right project management technique for you.
How to use critical path analysis: a simple explanation
Here are six steps for identifying and monitoring the critical path.
1. List all project tasks
Outline all the tasks for your upcoming project in a work breakdown structure (WBS). A WBS is a tool that organizes your project into smaller, more manageable components. The process makes it easy to visualize tasks and grasp the entire project scope.
For example, the structure divides all the tasks into hierarchical levels. With one glance, you can see what tasks are in the project and where they sit in the hierarchy.
Here’s a critical path analysis sample WBS:
Imagine you’re planning a new product launch. In this scenario, your WBS includes these tasks:
Product launch WBS
Top-level (the final project deliverable) |
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Mid-level (the key areas that will achieve that deliverable) |
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Lower-level (the individual tasks that will bring the deliverable to fruition) |
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The tasks in the lower level sit under the mid-level umbrella. Everything sits under the new product launch.
In the actual WBS, you’ll have different mid-level sections with more lower-level tasks – like in the image above.
How to create a work breakdown structure with Pipedrive
Create a roadmap for your project by adding all tasks to your Pipedrive dashboard. You can then assign each task to a project phase and indicate its position in the WBS. You can choose the project phases.
You might create top-level, mid-level and lower-level project phases. Add your tasks to each to help you visualize their position in the overall project timeline.
You can also create subtasks, which allows you to add smaller project activities to existing tasks. For example, if you’re creating an app, you might have a task for creating the app design. Within this task, you include these subtasks:
Create wireframes
Get client feedback
Finalize mockups
Adding these subtasks helps you organize and structure your project, which makes it easier to identify the critical path later in the process.
2. Define task and activity durations
Determine the duration of each task so you can calculate the critical path later. If you don’t know how long it takes to complete each project activity, you won’t be able to find the longest duration of dependent tasks.
There are a few ways to approach this process:
Review previous projects. Dig into past projects to see how long tasks took to complete. Identify any tasks similar to your current project and use their duration as guidance. For example, if you’re launching a new app, review how long tasks like design, development and testing took in previous projects.
Do research. Look online and consult other sources (like peers or competitors) to find information about similar activities. Again, this is a great way to make an informed estimate.
Speak to experts. Talk to team members or subject matter experts with similar experience. Their judgment is invaluable, especially for tasks with no direct historical data. You can ask for time estimates and average them across different experts for more accuracy.
Note: When estimating task duration, consider the availability of resources like team members, budgets and equipment. You estimate a task takes three days to complete, but do you have the resources to complete it within that timeframe? It could take longer if resources are only available part-time.
How to define task durations with Pipedrive
Within any Pipedrive project, you can find the “+ Task” button under the plan tab. From here, you can add the time, date and duration to specify how long a task will take (and when it’s due).
Note: When adding tasks in Pipedrive, you don’t have to include durations and due dates. You can add the task and update this information later.
3. Identify dependencies
Before we explain how to identify dependencies, let’s clarify the different types:
Finish-to-start (FS) | One task must end before the next task can start (most common). Example: You must finish designing a website before development can begin. |
Start-to-start (SS) | Two tasks must start simultaneously but can run in parallel. Example: Writing content and designing a webpage can start together. |
Finish-to-finish (FF) | Two tasks must be finished simultaneously but don’t have to start together. Example: Testing and bug fixing must both finish at the same time before a launch. |
Start-to-finish (SF) | A task can only be finished once another task starts (least common). Example: Setting up a new website’s hosting must begin before the old website’s hosting shuts down. |
To identify dependencies in your project, pinpoint the tasks that can only start or end when another begins or ends. You may have other dependencies, but FS is the most common, so it’s a good place to start.
Note: Arrange your tasks in a linear and sequential order to spot dependencies easily. For example, move the functions from your WBS into a project network diagram (a PERT chartt, or the program evaluation and review technique). Like a flow chart, a network diagram uses arrows and nodes to show how tasks relate.
How to create dependencies with Pipedrive
While Pipedrive doesn’t enable dependencies between tasks, you can create custom fields to highlight these dependencies. You might make a custom field that says “Can only begin when X task is complete” to highlight the dependency. You can then set reminders to notify people when someone finishes a task.
With Pipedrive, you can also manage tasks in a list view, which helps you order tasks and identify their dependencies.
4. Calculate the earliest and latest start and finish times
Start and finish times are the foundation for your critical path because they help you identify the tasks that must start or end on time to prevent project delays. These times also help you calculate slack.
How do you calculate the earliest and latest time each task can start and finish without delaying the project?
Let’s use an example to demonstrate. Imagine you have these tasks in your project schedule:
Task A. Three days (no dependencies)
Task B. Five days (depends on task A)
Task C. Two days (depends on task B)
Use the forward pass calculation to determine this project’s earliest start times and finish times. The calculation starts with the first task and works through the rest of the project.
Task A |
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Task B |
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Task C |
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Use the backward pass calculation to calculate the latest start and finish times. As the name suggests, this formula starts from the last task and works back by subtracting durations. In this calculation, the highest early finish is your starting point.
Task C |
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Task B |
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Task A |
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How to calculate start and finish time with Pipedrive
In the timeline view (or list view), you can visualize all your critical tasks’ due dates and durations. You can use the above calculations to identify your project’s optimal start and finish time.
5. Pinpoint the critical path
To pinpoint the project’s critical path, let’s revisit the concept of slack.
Tasks with zero slack must stay on schedule to avoid delays. For example, if you’re designing a mobile app and the developer doesn’t submit the wireframe for approval on time, you won’t meet your project end date. It has a knock-on effect on the entire timeline.
Your first step in creating the critical path diagram is identifying tasks with no slack time. Follow the dependencies of the tasks with zero slack to map out the entire sequence of activities. All these tasks are part of the critical path.
How to highlight the critical path with Pipedrive
Use custom fields to differentiate critical tasks from the rest of the project. You can filter your view to see all these tasks on a single screen, along with their project phase and progress on the timeline.
You can also see any updates from team members about their progress (more on this in the next section).
6. Monitor the critical path
Even after identifying the critical path, you must track performance to ensure tasks are on schedule.
One of the most effective ways to track project progress is to use real-time critical path analysis software, like a project management tool. That way, you can see instantly how the sequence of tasks is progressing.
Take Pipedrive’s project management software as an example. Look at Pipedrive’s project management software as an example. You can view critical task progress at a glance to ensure teams reach their milestones. If any delays are on the horizon, you can step in to get things back on track.
Collaborative sales features like sharing files, adding notes to tasks and tagging other team members also ensure everyone is on the same page about progress. Keeping everyone in the loop and ensuring smooth transitions between dependent tasks is easy.
Final thoughts
CPM is a valuable project planning and management technique. It helps you prioritize tasks, allocate resources and ensure that complex projects run on schedule.
Even though CPM is typical in large organizations with complex projects, it’s not limited to these enterprises. Smaller businesses can use CPM to manage simple projects because it provides the same benefits.
If you want support managing upcoming projects in your business, try Pipedrive. Our project management tools can help you manage and prioritize tasks. Plus, you can track your sales pipeline, optimize leads and manage deals in one place. Sign up for a free trial today.
