Critical Path Method (CPM)
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| − | + | '''Critical Path Method or CPM''', is a tool used in the planning and management of different types of projects such as construction, software development, research programs, product development, sales promotion and etc. It is essentially a mathematically based algorithm of network diagrams that depicts the sequence and interrelation of all the component parts of a project and is well suited for the construction industry. In comparison to the conventional methods of planning and scheduling of construction works - bar charts and progress diagrams - Critical Path Method proves to be more useful and precise as it allows the quick evaluation and comparison of alternative work programs, construction methods, types of equipment and etc. | |
| − | + | The time-cost problem in the construction sector is forever debatable and has an infinite number of solutions. Today, the Critical Path Methods provides a systematic procedure of correlating cost and time of each activity involved in the construction project, to provide an optimum solution. It is a crucial tool used in construction management as it provides varying degree of involvement by the management to suit the needs and objectives of the project. | |
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| + | == Historical Background == | ||
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| + | The critical path technique had its origin from 1956 to 1958 in two parallel but different problems of planning and control in projects in the United States. | ||
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| + | In the first case, the US Navy was concerned with the control of contracts for its Polaris Missile program. As the contracts comprised of research, development and manufacture work of newly developed parts, the probability of completion dates for each contract was determined. This procedure was referred to as '''Program Evaluation and Review Technique''', abbreviated to '''PERT'''. PERT did not originally include cost estimates, but subsequent inclusion of cost data in the system is called '''PERTCO''', that is PERT with costs. It is therefore important to understand that PERT systems involve a probability approach and are better suited for projects where big uncertainties exist. | ||
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| + | In the second case, the EI du Pont de Nemours Company was constructing huge chemical plants in America. These projects required that both time and cost be estimated accurately. This method of planning and control that was developed was initially called '''Project Planning and Scheduling (PPS)''', which covered the design, construction and maintenance of large and complex projects using realistic estimates of time and cost. This method has since been developed into '''Critical Path Method (CPM)'''. | ||
Revision as of 14:23, 22 September 2017
Critical Path Method or CPM, is a tool used in the planning and management of different types of projects such as construction, software development, research programs, product development, sales promotion and etc. It is essentially a mathematically based algorithm of network diagrams that depicts the sequence and interrelation of all the component parts of a project and is well suited for the construction industry. In comparison to the conventional methods of planning and scheduling of construction works - bar charts and progress diagrams - Critical Path Method proves to be more useful and precise as it allows the quick evaluation and comparison of alternative work programs, construction methods, types of equipment and etc.
The time-cost problem in the construction sector is forever debatable and has an infinite number of solutions. Today, the Critical Path Methods provides a systematic procedure of correlating cost and time of each activity involved in the construction project, to provide an optimum solution. It is a crucial tool used in construction management as it provides varying degree of involvement by the management to suit the needs and objectives of the project.
Historical Background
The critical path technique had its origin from 1956 to 1958 in two parallel but different problems of planning and control in projects in the United States.
In the first case, the US Navy was concerned with the control of contracts for its Polaris Missile program. As the contracts comprised of research, development and manufacture work of newly developed parts, the probability of completion dates for each contract was determined. This procedure was referred to as Program Evaluation and Review Technique, abbreviated to PERT. PERT did not originally include cost estimates, but subsequent inclusion of cost data in the system is called PERTCO, that is PERT with costs. It is therefore important to understand that PERT systems involve a probability approach and are better suited for projects where big uncertainties exist.
In the second case, the EI du Pont de Nemours Company was constructing huge chemical plants in America. These projects required that both time and cost be estimated accurately. This method of planning and control that was developed was initially called Project Planning and Scheduling (PPS), which covered the design, construction and maintenance of large and complex projects using realistic estimates of time and cost. This method has since been developed into Critical Path Method (CPM).
