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. Manufacturing Resource Planning ...

    An integrated information system used by businesses. Manufacturing ...
  3. Materials Requirement Planning ...

    One of the first software based integrated information systems ...
  4. Enterprise Resource Planning - ...

    A process by which a company (often a manufacturer) manages and ...
  5. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  6. Freelancer

    A freelancer is an individual who earns money on a per-job or ...
RELATED FAQS
  1. Who developed Critical Path analysis in operations management?

    Critical path analysis, or CPA, sometimes called network analysis, is a tool used to plan sequential activities in the most ... Read Full Answer >>
  2. How do you determine the Critical Path in operations management?

    Critical path analysis, sometimes called the critical path method, is a widely used tool for scheduling project activities. ... Read Full Answer >>
  3. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>
  4. What are the benefits of prorating expenses?

    When a person prorates expenses between personal and business expenses, he is able to capture the maximum amount of tax benefits ... Read Full Answer >>
  5. What is the relationship between research and development and innovation?

    Although it's possible to achieve innovation without research and development and it's possible to conduct research and development ... Read Full Answer >>
  6. How does the notion of the American Dream influence the US economy?

    The notion of the American Dream influences the U.S. economy because it creates the driving force behind the free enterprise ... Read Full Answer >>
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. Entrepreneurship

    How Peter Thiel Became a Superstar

    A review of the career of legendary Silicon Valley entrepreneur and investor Peter Thiel.
  4. Professionals

    Advisors: Get Those Referrals! (Here's How)

    If you're not talking to your clients about referring you to friends, you should be.
  5. Entrepreneurship

    10 Richest, Most Successful Tech Geniuses

    Unlike many industries, tech billionaires are mostly self-made. Many of these billionaires came from humble means and, through their own genius, changed the world.
  6. Entrepreneurship

    The 10 Richest Women In Finance

    Who are the top 10 women in the financial industry?
  7. Investing Basics

    Today's Top Young Investors

    Given the very different world that we live in as compared to the one the Warren Buffett graduated into, young, hopeful investors should be looking up to people closer to their own age.
  8. Economics

    Understanding Capital Investment

    Capital investment is a term that describes a company’s expenditures for long-term assets used in the operation of its business.
  9. Entrepreneurship

    Top 7 Ways to Manage Business Risks

    Risk management is a form of insurance in itself for small business owners. Here are seven steps to implement a plan.
  10. Entrepreneurship

    Why Companies Need Risk Management

    Implementing risk management strategies can save an entire organization from failure. Is yours up to snuff?

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!