The critical path method is used to analyze a project schedule network diagram to determine the longest path of activities. Key steps are: 1) Draw the network diagram of activities and dependencies 2) Perform forward and backward passes to calculate early and late start/finish times 3) Identify the critical path(s) with the longest total duration as the schedule cannot be shortened without changing these activities 4) Determine the float of non-critical activities which can be delayed without affecting the project completion date.