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Critical Path Analysis (HL)

IB Business Management

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What is Critical Path Analysis?

  • List all the tasks needed to finish the project
  • Find the longest path of tasks (this is called the critical path)
  • See how long the project will take
  • Know which tasks are most important and must be done on time

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Critical Path

👉 If a task on the critical path is late, the whole project will be late.

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Bobo Pizza

There is a family-run pizza restaurant in Town X called Bobo Pizza that serves amazing pizza and is very successful even though none of the family members running the restaurant have a business degree. The restaurant has been serving the best pizza in town for more than 10 years and looks a little bit outdated, so Bobo Pizza management shut it down for a month for renovation. A wonderful and smart IB BM student (you) who happened to know about the Bobo Pizza renovation project decided to see if it could have been completed in less than a month. All the renovation tasks and their duration are summarised below.

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As you can see from the table above, task D (installation of new kitchen equipment) can only start after task B is completed (removal of old kitchen equipment). At the same time, task E (repainting the walls in the dining area) can only begin after task C is completed (removing old furniture from the dining area). Lastly, task F (new dining area furniture assembly) can only commence after task E is completed (repainting the walls in the dining area). Tasks B, C, D, E, and F are allocated to one of the two rooms in the building (kitchen and the dining area), while tasks A and G are for the entire building.

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Duration of project tasks under arrows that represent the project tasks:

Question: Complete the rest of the Critical Path Diagram

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Lewinski Above Diagram (ANSWER Question 2)

Question 3: Complete the rest of the Critical Path Analysis

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Lewinski Above Diagram (ANSWER Question 3)

Question 4: Identify the Critical Path

Question 5: Calculate the Float (Slack) time of activity B

Question 6: Calculate the Float time of activity D

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ANSWERS

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Question 4: Critical Path: A, C, E, F, G

This is because if any of these activities are delayed then the entire project will be delayed.

Question 5: The Float (Slack) time of Activity B is 5 Days

Question 6: The Float (Slack) time of Activity D is 5 Days

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Advantages - Critical Path Analysis

  1. Better planning
    1. Helps you organize the project step by step.�
  2. Use time and people better
    • Shows which tasks are urgent and which can wait.�
  3. Find problems early
    • You can see where delays might happen.�
  4. Helps with decisions
    • You can choose what to do if something goes wrong.�
  5. Easy to show to others
    • Diagrams help teams understand the project clearly.

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Disadvantages - Critical Path Analysis

  1. Takes time to make
    • Especially if the project is big.�
  2. Only guesses time
    • If you guess wrong, the plan won’t work well.�
  3. Doesn’t solve all problems
    • It only shows time, not cost or team issues.�
  4. Needs updates
    • You must change it if the project changes.�
  5. No information about cost or people
    • Only shows time, not how much money or how many workers are needed.

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Hard Example

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Free Float Time Formula

Free Float = EST of next Activity - Earliest finish of this activity*

Earliest finish = Earliest start + time to complete

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  1. Complete the rest of the Critical Path Diagram
  2. Identify the Critical Path
  3. Calculate the Total Float time for L
  4. Calculate the Total Float time for K
  5. Calculate the Free Float time for C

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ANSWERS

  1. Complete the rest of the Critical Path Diagram

X = 2+4 = 6

Y = 22 - 5 = 17

  1. Identify the Critical Path

F, H, J, K

  1. Calculate the Total Float time for L

Total Float = LFT - Duration - EST

22 - 5 - 12 = 5

  1. Calculate the Total Float time for K

Total Float = LFT - Duration - EST

22 - 8 - 14 = 0

  1. Calculate the Free Float time for C

Free Float = EST of next Activity - Earliest finish of this activity*

Earliest finish = Earliest start + time to complete

12-6+4

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Congratulations on Finishing Critical Path Analysis!