CPM

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University of Mumbai
Department of Statistics
Post Graduate Diploma In Applied Statistic with Software

GROUP NUMBER: 7 Group members: 1. VIVEK BANDAAL- 28 2. HETA DESAI - 09 3. NIMA - 14 4. YAMINI MATKAR – 25 5. POOJA THAKUR - 44

What is the CPM?
Critical Path Method (CPM), is a procedure for using network analysis to identify those tasks which are on the critical path: i.e. where any delay in the completion of these tasks will lengthen the project timescale, unless action is taken. For all tasks off the critical path, a degree of tolerance is possible (eg. late start, late completion, early start, etc.).
Z

EXAMPLE: Planning activities for new product
introduction:

An established company has decided to add a new product to its line. It will buy the product from a manufacturing concern, package it, and sell it to a number of distributors selected on a geographical basis. Market research has indicated the volume expected and the size of sales force required. The steps shown in the following table are to be planned.

Activity A B C D E F

Description Organize sales office Hire salesman Train salesman Select advertising agency Plan advertising campaign Conduct advertising campaign

Time(weeks) 6 4 7 2 4 10

G
H I J K L

Design package
Set up packaging facilities Package initial stocks Order stock from manufacture Select distributors Sell to distributors

2
10 6 13 9 3

M

Ship stocks

5

PACKAGE STOCK ORDER STOCK SETUP
START PACKAGING FACILITY

SHIP STOCK TO DISTRIBUTOR

DESIGN PACKAGE

SELL TO DISTRIBUTOR

SELECT DISTRIBUTIO N
ORGANIZE SALES OFFICE HIRE SALESMAN TRAIN SALESMAN

END

SELECT ADVERTISNG AGENCY

PLAN ADVERSTING CAMPAIGN

CONDUCT ADVERTISING CAMPAIGN

4 1314 J 13 H 10

I

6

9 2020 M L 6 1717 3 5

1 0 0 A 6

G 2 K

10 2525

C
9 B 2 6 6 4 D 2 7 8 11 5 1010

7

F 1 0

E

4

8 1215

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