Critical Path Method In Red Leaves Construction Company Case Solution

The Critical Path Method has four components:

• Float Determination

• Early Start & Early Finish Calculation

• Late Start & Late Finish Calculation

CPM has several advantages and benefits. Firstly, the use of CPM ensures that there are logic and discipline in the planning, scheduling, and control of projects. Through the use of CPM, companies can formulate long term and detailed plans for projects. CPM also makes available a complete project overview for all personnel involved in a project. CPM also serves the purpose of documentation whereby a standard CPM document is used for communication project plans, cost performance, and schedule. Furthermore, the identification of CPM to identify the critical activities means that management can focus more on the 10 or 20 percent of the project that has more impact in terms of constraints and delays. Procedural changes that occur throughout the project can be evaluated using CPM. Lastly, CPM comes in handy when making operational plans to meet the deadlines most economically. 

2. IN the case study one of the board members Mr. Singhania said that „we can just estimate it and get a round figure‟. But the other board member Mr. Chawla was against this and stated that „people need accurate figure and want everything to be technical‟. What is your opinion on this? Please support this by proper arguments and citations.

In my opinion, an estimation can be used for project planning and management. When used correctly estimation can come in quite handy. Companies normally opt for 3 different estimated timelines based on the level of confidence. These include:

• Optimistic timing

• Pessimistic timing

• Most likely timing 

But, unforeseen events and mishaps can invalidate our estimates (Vasumathi, et al., 2018). Sometimes project managers fail to take into account the complexity of tasks and potential for errors associated with a project. Accidents, emergencies, sick leaves, union strikes, political unrest are some of the examples of occurrences that can lead to delays, which estimated schedules essentially don't account for. However, the same is the case for accurate and technical data. Accuracy in data doesn't mean that your project will end of time. "while crisis management may be necessary, few crises should come out of the blue" (Meyer, et al., 2002). That is why company's need contingency planning. Honest and accurate figures based on realistic assumptions can lead to success. Many companies use error margins as buffers when estimating. To be able to find accurate data with pinpoint accuracy is a myth. If done right estimation can be used to mitigate risks. I do believe if manages account for risks and install buffers in their estimates, the data can come in quite handy (Shou, 2002). The use of historic data to formulate those estimates is a good way to give more weight to your estimates. Detailed and precise analysis of individual activities is necessary. Rounding off figures is not the way to go. By going through records and evaluating the data, we can shape our estimations and take the technicalities into account (Smith & Mandakovic, 1985).