SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

SUBJECT CODE : 16 AR 460

SUBJECT NAME : Project Management & Construction

SEMESTER : VIII YEAR: IV

REGULATION : 2016

COURSE : B.Arch (Architecture)

SPECIALISATION :
 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

UNIT- 3 PROJECT TIME

REDUCTION AND
OPTIMIZATION

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Project Cost

Indirect Cost

Direct Cost
Topics
Covered Normal Time, Crash Time, Normal Cost
and Crash Cost

Cost Slope

Steps in Time Cost Optimization

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Project Cost
• Total Project Cost is the
sum of two separate
costs
• The direct cost for
accomplishing the
work, and
• The indirect cost
related to the
control or duration
of that work,
financial
overheads, lost
production

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Indirect Project cost

• Indirect costs on a project are

those expenditures which cannot
be apportioned or clearly
allocated to the individual
activities of a project, but are
accessed as a whole.
• The indirect costs includes the
expenditure related
to administrative and
establishment charges, overhead,
supervision, expenditure on
central store organization, loss of
revenue, lost profit, penalty, etc.
• Indirect cost rises with increased
duration.

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Direct Project Cost

• Direct project costs are

those expenditures
which are directly
chargeable to and can be
identified specifically
with the activities of the
project.
• These include labor
costs, material
cost equipment cost.

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Normal Time, Crash Time,

Normal Cost, Crash Cost

Crash Time (tc) - Crash time is the minimum

possible time in which an activity can be
Normal Time (tn) - Normal time is the
completed, by employing exttra resources.
standard time that an estimator would allow
Crash time is that time, beyond which an
for an activity.
activity cannnot be shortened by an
amount of increase in resources.

Normal Costs (Cn) - This is the direct Crash Costs (Cc) - This is the direcct
cost required to complete the activity in cost coresponding to the completion of the
normal time duration. activity within crash time.

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Cost Slope
• The cost slope is the
slope of direct cost
slope approximated as
straight line. It is
defined as
• Cost slope = (crash
cost – normal cost) /
(normal time – crash
time)

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020

 SRM SCHOOL OF ENVIRONMENT ARCHITECTURE AND DESIGN – TN 26

Steps in Time Cost

Optimization

Establish Determine Compute Crash

Continue Crash Continue Find

Plot Pick up

COMPILED BY: NARAYANAN M, ASSISTANT PROFESSOR- SRM SEAD 2019-2020