Critical Path Analysis for New Product Planning

Abstract

Since its inception in 1957, Critical Path Analysis (CPA), which includes the CRITICAL PATH METHOD (CPM), and PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) has received widespread acclaim as a planning, scheduling, and control tool. Its applications had been initially restricted to construction and engineering. Growing sophistication in the use of the tool has extended its applicability to the area of new product planning. The purpose of this article is to introduce to marketing managers and analysts the group of techniques called CPA and its application to new product planning. The process of new product planning as a function of marketing management is first described. The concept and the underlying logic of CPA and a hypothetical new product venture are presented to show the technique's rationale and capability. Extensions of CPA and its value in a new product venture conclude the discussion.