Critical Path Analysis - CPA

AAA

DEFINITION of 'Critical Path Analysis - CPA'

A process by which projects are outlined and sequenced to have the most favorable outcome. Critical path analysis involves the advanced and careful planning of complicated projects, taking into consideration the sequence of activities that must occur, and the estimated time necessary to each step's completion. The critical path can be thought of as the necessary flow that a project must follow to achieve timely success.

INVESTOPEDIA EXPLAINS 'Critical Path Analysis - CPA'

The intent of critical path analysis is to maximize success while minimizing the time needed to complete the project. It focuses on time management and the ongoing evaluation of a project's progress, and to help management with decision making. The process involves identifying the major activities that will be undertaken during the project, sequencing the major activities, constructing an activity flow design or chart, estimating the time for each activity, estimating the time to complete all of the activities and determining the critical path. This can be done, for example, by constructing a Gantt Chart.

RELATED TERMS
  1. Gantt Chart

    A Gantt chart is a visual representation of a project schedule. ...
  2. Materials Requirement Planning ...

    One of the first software based integrated information systems ...
  3. Manufacturing Resource Planning ...

    An integrated information system used by businesses. Manufacturing ...
  4. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  5. Enterprise Resource Planning - ...

    A process by which a company (often a manufacturer) manages and ...
  6. Provisional Patent Application

    A short-term means of protecting an invention that requires less ...
Related Articles
  1. Time Management Tips For Financial Professionals
    Professionals

    Time Management Tips For Financial Professionals

  2. Financial Efficiency: The Analyst's ...
    Professionals

    Financial Efficiency: The Analyst's ...

  3. Essential Tips For Would-Be Entrepreneurs
    Entrepreneurship

    Essential Tips For Would-Be Entrepreneurs

  4. Why, How, Where and When Entrepreneurs ...
    Entrepreneurship

    Why, How, Where and When Entrepreneurs ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center