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Critical path in business

Using the Critical path in business, project manager can determine actual dates for each activity and compare what should be happening to what is taking place and react accordingly. The method will provide you with a graphical view of the project, the time required to complete an activity and the activities that will become critical to the project if not completed within the specified time.
  1. Proper scheduling

    This method is essential to accurately monitoring the progress of your business initiatives. There are several additional scheduling tools that will assist in further refining and controlling your schedule. The critical path method is often used with much success. Some of the basic critical path method concepts include:
    1. Reducing each task's estimated duration and adding a buffer, providing backup resources and time to your critical path.
    2. The critical chain method also employs leveling your resources by making sure the workload is evenly distributed.
    3. Alternate methods include, when necessary, compressing your schedule using crashing or fast tracking. Crashing focuses on allowing additional cost as a tradeoff to reducing the project duration. Fast tracking schedules tasks to run in parallel where they were once scheduled to run sequentially. These additional methods will enhance your ability to control your schedules, but gain proficiency with your precedence diagram before enlisting these additional methods.

  1. Without a formal schedule and details, such as EST and LST, you can not begin to determine which tasks can and can't be delayed without affecting the overall timeline. Without the insight of an EST, the team is unaware that a task is in danger of being late before it even starts. Additionally, keep a close eye on your zero slack tasks which make up your critical path and start all tasks no later than their LST or they will impact the project schedule.

    There is some risk with this approach if a change of events causes a change in the critical path. For example, changes in resource allocation could affect departmental timing, the duration of activities or different timing of an incoming event. This would result in the identified improvement projects enabling more float in that subprocess rather than having immediate impact on the overall lead time.

  1. Locating areas of improvement

    Critical path in business offers a useful approach and rationale for prioritizing improvement opportunities within a complex process space. On a journey of continuous improvement, every sub-process improvement is a valid exercise. The right projects, selected through Critical path in business, add up to demonstrable business improvements to total overall lead time.

    The example we used here, illustrates how to use critical path analysis to guide project prioritization to effect overall lead time. The suggested priorities can be formulated as:

    Critical path Charter external to department Charter within department
    inp2 Reduce lead time of completing inp2  
    act2   Reduce lead time of completing act2
    act3   Reduce lead time of completing act3
    inp4 Reduce lead time of completing inp4  
    act7   Reduce lead time of completing act7

    In that example a critical path analysis (How to make critical path analysis?) has allowed the business to narrow improvement opportunities from potential projects on four inputs plus seven activities, or 11 total project opportunities, to five opportunities, effectively achieving a 55 percent narrowing of initiatives. This will certainly impact the immediate business objective of total lead time reduction.

Business strategies definition


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