Critical Path Method (CPM) is a network diagramming technique used to predict total project duration and identify the critical path. The critical path is the longest sequence of activities with zero float - it determines the earliest project completion date. In the example network diagram, the critical path is activities A, B, C, F with a total length of 15 time units. Calculating early and late start/finish dates using forward and backward passes identifies float, which indicates how much delay activities on the critical path can experience before delaying the overall project end date.