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. Professionals

    Time Management Tips For Financial Professionals

    Learn about common time wasters and discover time-management tips that will get more work done in less time.
  2. Professionals

    Financial Efficiency: The Analyst's Guide To Time Management

    Being efficient on the job is the key to finding balance and avoiding burnout as a broker or advisor.
  3. Investing News

    Looking to Open a Franchise? These Topped The List In 2014

    These franchise businesses stood out in 2014.
  4. Not every new company or product makes it, but many successful startups share the following characteristics.
    Entrepreneurship

    6 Characteristics Of Successful Apps

    Not every new company or product makes it, but many successful startups share the following characteristics.
  5. When it comes to managing finances and tracking the markets on the go, there are a number of excellent apps that can be downloaded and installed onto your mobile device.
    Entrepreneurship

    Top Stock Market Apps For News Or Trading Or Both!

    When it comes to managing finances and tracking the markets on the go, there are a number of excellent apps that can be downloaded and installed onto your mobile device.
  6. A brief overview of the top apps that help forex traders with on time information, charts and more.
    Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  7. As technology has evolved, the landscape of the music industry has changed from radio broadcasts to mp3 and now streaming services.
    Entrepreneurship

    Will Pandora And Spotify Disrupt Music Royalties?

    As technology has evolved, the landscape of the music industry has changed from radio broadcasts to mp3 and now streaming services.
  8. As the number of new employees increases, the marginal product of an additional employee will at some point be less.
    Investing

    More is Less: Diminishing Marginal Returns

    In formal economic terms, the law of diminishing marginal returns states that as the number of new employees increases, the marginal product of an additional employee will at some point be less ...
  9. How do you figure out which franchise is the best for you and your budget? Read on.
    Investing Basics

    What's The Best Franchise Investment For You?

    How do you figure out which franchise is the best for you and your budget? Read on.
  10. Taxes

    What are examples of cost of goods sold (COGS) for businesses that sell through eBay or Etsy?

    Read how online retailers that operate through eBay or Etsy can list certain expenses as cost of goods sold and even claim a tax deduction for these costs.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center