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13

Critical Path Analysis


Question 1
The following table gives the activities in a construction project and the time duration of each
activity:
Activity

Preceding activity

Normal Time (Days)

16

20

10

B, C

D, E

12

Required:
(i)

Draw the activity network of the project.

(ii)

Find critical path.

(iii) Find the total float and free-float for each activity.
Answer
(i)

A D F = 16 + 10 + 12 = 38

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(6 Marks) (Nov., 2007)

Critical Path Analysis

13.2

B E F = 20 + 6 + 12 = 38
(ii)

A C E F = 16 + 8 + 6 + 12 = 42

Critical path

(iii) Total float and free float for each activity


Normal
time
(Days)

Earliest
start

Time
finish

Latest
start

Time
finish

Float
total

Free

16

16

16

20

20

24

16

24

16

24

10

16

26

20

30

24

30

24

30

12

30

42

30

42

Activity

Question 2
What do you mean by a dummy activity? Why is it used in networking? (4 Marks) (May, 2008)
Answer
Dummty activity is a hypothetical activity which consumes no resource or time. It is
represented by dotted lines and is inserted in the network to clarify an activity pattern under
the following situations.
(i)

To make activities with common starting and finishing events distinguishable.

(ii)

To identify and maintain the proper precedence relationship between activities that are
not connected by events.

(iii) To bring all loose ends to a single initial and single terminal event.
e.g.

Dummy (2) (3) is used to convey that can start only after events numbered (2) and (3)
are over:
Question 3
Explain the following in the context of a network:

The Institute of Chartered Accountants of India

13.3

Advanced Management Accounting

(i)

Critical path

(ii)

Dummy activity.

(4 Marks)(June, 2009)

Answer
(i)

Critical Path: Critical Path is a chain of activities that begin with the starting event and
ends with ending event of a particular project. It is that path that runs through a network
with the maximum length of time or it indicates the maximum possible time required for
completion of a project. Critical path indicates the minimum time that will be required to
complete a project. It is determined after identifying critical events. Critical path goes
through critical events.

(ii) Dummy Activities: Dummy Activity is that activity which does not consume time or
resources. It is used when two or more activities have same initial and terminal events.
As a result of using dummy activities, other activities can be identified by unique end
events. These are usually shown by arrows with dashed lines.
A

2
Dummy

1
3

B
Question 4

A small project is composed of seven activities, whose time estimates are listed below.
Activities are identifies by their beginning (i) and ending (j) note numbers:
Activity

Estimated durations (in days)

(i-j)

Optimistic

Most likely

Pessimistic

1-2

14

1-3

14

1-4

16

2-5

3-5

10

28

4-6

10

16

5-6

12

30

(a) Draw the project network.

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Critical Path Analysis

13.4

(b) Find the expected duration and variance for each activity. What is the expected project
length?
Given :

0.50

0.67

1.00

1.33

0.3085

0.2514

0.1587

0.0918

2.00
0.0228

(4 Marks)(May, 2010)
Answer
Activity Estimated Durations :

a 4m b Duration

Activity estimated durations (days) te =

Activity

te

[(b a) / 6]2

1-2

14

1-3

14

1-4

16

2-5

3-5

10

28

12

16

4-6

10

16

10

5-6

12

30

14

16

20
12

8
4

1
4

20

18

14
6

34

24

4
Critical path is 1-3-5-6.

34

6
10

The expected project duration = 8+12+14 = 34 days


Question 5
List the 5 steps involved in the methodology of critical path analysis.

The Institute of Chartered Accountants of India

(4 Marks)(Nov., 2010)

13.5

Advanced Management Accounting

Answer
Working Methodology of PERT:
The working methodology of PERT which includes both CPM and PERT, consists of following
five steps:
1.

Analyze and break down the project in terms of specific activities and/or events.

2.

Determine the interdependence and sequence of specific activities and prepare a network.

3.

Assign estimates of time, cost or both to all the activities of the network.

4.

Identify the longest or critical path through the network.

5.

Monitor, evaluate and control the progress of the project by re-planning, rescheduling
and reassignment of resources.

Question 6
The number of days of total float (TF), earliest start times (EST) and duration in days are given
for some of the following activities.
Activity

TF

EST

12

13

14

24

25

36

12

46

12

57

4
5

67

(i)
(ii)

Duration

23

68

78

23

89
Draw the network.

30

List the paths with their corresponding durations and state when the project can be
completed.
(10 Marks)(Nov., 2011)

Answer

12
2

11

8
7

7
4

11
8

6
9

The Institute of Chartered Accountants of India

Critical Path Analysis

13.6

Network Diagram: 6-7 dummy


6-8-9 and 7-8-9
1-2-5-7 and 1-2-4-6
1-4-6 and 1-3-6
Activity
1-2
1-3
1-4
2-4
2-5
3-6
4-6
5-7
6-7
6-8
7-8
8-9

Duration
4
12
7
8
5
9
11
11
0
5
7
6

PATH
1-2-5-7-8-9
1-2-4-6-7-8-9
1-2-4-6-8-9
1-4-6-7-8-9

Early Start
0
0
0
4
4
12
12
9
23
23
23
30
DURATION
32
36
34
31

Late Start
0
2
5
4
8
14
12
12
23
25
23
30

Late Finish
4
14
12
12
13
23
23
23
23
30
30
36

PATH
1-4-6-8-9
1-3-6-7-8-9
1-3-6-8-9

Total Float
0
0
5
0
1
2
0
3
0
2
0
0
DURATION
29
34
32

Note: Students may refer same chapter of Practice Manual for clear understanding of
this problem and solution.
Question 7
The following is a part of a network.

What are activities P and Q called? How would you rectify the situation? (4 Marks)(May, 2012)

The Institute of Chartered Accountants of India

13.7

Advanced Management Accounting

Answer
P
Q
R

Activities P and Q are called duplicate activities (or parallel activities) since they have the
same head and tail events. The situation may be rectified by introducing a dummy either
between P and S or between Q and S or before P or before Q (i.e. introduce the dummy
before the tail event and after the duplicate activity or Introduce the dummy activity between
the head event and the duplicate activity).
Question 8
State the types of errors in logical sequencing that may arise while drawing a Network
Diagram.
(5 Marks) (November, 2014)
Answer
Generally three types of errors in logical sequencing may arise while drawing a network
diagram, particularly when it is a complicated one. These are known as looping, dangling and
redundancy.
(i)

Looping-Normally in a network, the arrow points are from left to right. This convention is
to be strictly adhered, as this would avoid illogical looping. Looping error is also known
as cycling error.

(ii)

Dangling- Activity which is not connected to any of the intermediate events or end event
is called dangling activity. The situation represented by the following diagram is also at
fault, since the activity represented by the dangling arrow 9-11 is undertaken with no
result.

To overcome the problem arising due to dangling arrows, following rules may be
adopted.

The Institute of Chartered Accountants of India

Critical Path Analysis

13.8

(a) All events, except the first and the last, must have at least one activity entering and
one activity leaving them, and
(b) All activities must start and finish with an event.
(iii) Redundancy- When dummy activities are inserted in a network diagram unnecessarily,
this type of error is called error of redundancy. It is shown in the following figure:

The Institute of Chartered Accountants of India

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