Network Crashing

Module 2

These are just sample numericals, students have to solve more

numericals by referring different books.
 Cost consideration in PERT/CPM
• Direct Cost: This cost is directly dependent upon the amount of
resources in the execution of individual activities. Eg: Manpower
loading, materials consumed etc. The direct cost increases if the
activity duration is to be reduced.

• Indirect Cost: This cost is associated with overhead expenses

such as managerial services, indirect supplies, general
administration etc. The indirect cost is computed on a per day,
per week or per month basis. The indirect cost decreases if the
activity duration is to be reduced.

• Direct costs are activity specific where as indirect cost is whole

process specific.

• The process of reducing the activity duration by putting on extra

effort is called crashing the activity.
• The crash time represents the minimum activity duration time that is
possible and any attempts to further crash would only raise the activity cost
without reducing the time. The activity cost corresponding to the crash time
is called the crash cost, which is the minimum direct cost required to achieve
the crash performance time.

• The Normal cost is equal to the absolute minimum of the direct cost
required to perform an activity. The corresponding time duration taken by an
activity is know as the normal time.

• Cost Slope
𝑪𝒓𝒂𝒔𝒉 𝑪𝒐𝒔𝒕 −𝑵𝒐𝒓𝒎𝒂𝒍 𝑪𝒐𝒔𝒕
• Crash Cost Slope = 𝑵𝒐𝒓𝒎𝒂𝒍 𝑻𝒊𝒎𝒆−𝑪𝒓𝒂𝒔𝒉 𝑻𝒊𝒎𝒆

• Cost slope indicates the increase in cost, per unit reduction in time. It is
called cost time tradeoff. It varies from activity to activity.

• Here the assumption is that the relationship between normal time and cost
as well as crash time and cost for an activity is assumed to be linear.

• Total project cost= Direct cost + Indirect cost.

 Crashing of Project Network
Eg1: Consider the data of a project. If the indirect cost per week is
Rs 200, find the optimal crashed project completion time.

Activity Normal Time (Weeks) Normal Cost (Rs) Crash Time Crash cost (Rs)
(Weeks)

1-2 7 700 4 850

1-3 5 500 3 700
1-4 8 600 5 1200
2-5 9 800 7 1250
3-5 5 700 3 1000
3-6 6 1100 5 1300
4-6 7 1200 5 1450
5-7 2 400 1 500
6-7 3 500 2 850
 𝑪𝒓𝒂𝒔𝒉 𝑪𝒐𝒔𝒕 −𝑵𝒐𝒓𝒎𝒂𝒍 𝑪𝒐𝒔𝒕
Crash Cost Slope =
𝑵𝒐𝒓𝒎𝒂𝒍 𝑻𝒊𝒎𝒆−𝑪𝒓𝒂𝒔𝒉 𝑻𝒊𝒎𝒆

Slope = (850-700)/(7-4) = 50
(700-500)/(5-3) = 100
Activity Normal Time Normal Cost Crash Time Crash cost Crash cost
(Weeks) (Rs) (Weeks) (Rs) slope

1-2 7 700 4 850 50

1-3 5 500 3 700 100
1-4 8 600 5 1200 200
2-5 9 800 7 1250 225
3-5 5 700 3 1000 150
3-6 6 1100 5 1300 200
4-6 7 1200 5 1450 125
5-7 2 400 1 500 100
6-7 3 500 2 850 350
6500
All Paths

1-2-5-7 = 7+9+2 =18*

1-3-5-7 = 5+5+2 =12
1-3-6-7 = 5+6+3 =14
1-4-6-7 = 8+7+3 = 18*
Total Cost = Direct Cost + Indirect Cost = 6,500+ (18*200) =
Rs 10,100.
• 1st Crash Limit and cost slope table to find which activity to crash
Critical Path Critical Activity Crash Limit Cost Slope
1-2-5-7 1-2 7-4=3 50 *
2-5 9-7=2 225
5-7 2-1=1 100
1-4-6-7 1-4 3 200
4-6 2 125*
6-7 1 350

• Find least cost slope values in both the paths and they are, in 1st Critical Path is Rs.50 and 2nd
Critical path Rs.125
• Crash the activities 1-2 and 4-6 by 1 week each.
• After crashing by 1 week the new network will look like
1-2-5-7 = 6+9+2 =17*
1-3-5-7 = 5+5+2 =12
1-3-6-7 = 5+6+3 =14
1-4-6-7 = 8+6+3 = 17*
• Then the total cost after crash would be = 10,100+(50+125)-200 = 10,075.
• Hence the total cost is reduced after 1 week’s crash.
2nd Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-2-5-7 1-2 3-1=2 50 *
2-5 2 225
5-7 1 100
1-4-6-7 1-4 3 200
4-6 2-1=1 125*
6-7 1 350

• Find least cost slope values in both the paths and they are, in 1st Critical Path is Rs.50 and 2nd Critical
path Rs.125
• Crash the activities 1-2 and 4-6 by 1 week each.
• The new network after crashing would look like

1-2-5-7 = 5+9+2 =16*

1-3-5-7 = 5+5+2 =12
1-3-6-7 = 5+6+3 =14
1-4-6-7 = 8+5+3 = 16*
• Then the total cost after crash would be = 10,075+(50+125)-200 = 10,050.
• Hence the total cost is reduced after 1 week’s crash.
• Now we can proceed with further crashing so as to check the change in the cost.
• 3rd Crash Limit and cost slope table
Critical Path Critical Activity Crash Limit Cost Slope
1-2-5-7 1-2 2-1=1 50 *
2-5 2 225
5-7 1 100
1-4-6-7 1-4 3 200*
4-6 1-1=0 125
6-7 1 350

• Find least cost slope values in both the paths and they are in 1st Critical Path is
Rs.50 and 2nd Critical path Rs.200.
• Crash the activities 1-2 and 1-4 by 1 week each.
• After crashing the network would look like

• Then the total cost after crash would be = 10,050+(50+200)-200 = 10,100.

• Hence the total cost is increased now , which means previous step is the optimal
time.
Eg 2: Determine the optimum project duration and cost for the
following data. Perform crash testing. Indirect cost is Rs 70 per day.

Activity Normal Time (Days) Normal Cost (Rs) Crash Time (Days) Crash cost (Rs)

1-2 8 100 6 200

1-3 4 150 2 350
2-4 2 50 1 90
2-5 10 100 5 400
3-4 5 100 1 200
4-5 3 80 1 100
 𝑪𝒓𝒂𝒔𝒉 𝑪𝒐𝒔𝒕 −𝑵𝒐𝒓𝒎𝒂𝒍 𝑪𝒐𝒔𝒕
Crash Cost Slope =
𝑵𝒐𝒓𝒎𝒂𝒍 𝑻𝒊𝒎𝒆−𝑪𝒓𝒂𝒔𝒉 𝑻𝒊𝒎𝒆

Slope = (200-100)/(8-6) = 50
(350-150)/(4-2) = 100

Activit Normal Time Normal Cost Crash Time Crash cost Crash Cost
y (Days) (Rs) (Days) (Rs) Slope

1-2 8 100 6 200 50

1-3 4 150 2 350 100
2-4 2 50 1 90 40
2-5 10 100 5 400 60
3-4 5 100 1 200 25
4-5 3 80 1 100 10
580
•

• All Paths
1-2-5 = 8+10 =18*
1-2-4-5 = 8+2+3 =13
1-3-4-5 = 4+5+3 =12

• Total Cost = Direct Cost + Indirect Cost = 580 + (70*18) = Rs 1,840.

• 1st Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-2-5 1-2 8-6=2 50 *
2-5 10-5=5 60
• Find least cost slope value in the critical path that is 1-2 with slope of Rs50.
• Crash the activity 1-2 by 1 day.
• The new network after one day crash would look like

All Paths
1-2-5 = 7+10 =17*
1-2-4-5 = 7+2+3 =12
1-3-4-5 = 4+5+3 =12

• Then the total cost after crash would be = 1,840 + 50 - 70 = 1,820 for 17 days.
• Hence the total cost is reduced after 1 day’s crash.

• Now we can proceed with further crashing so as to check the change in the cost.
• 2nd Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-2-5 1-2 2-1=1 50 *
2-5 5 60

• Find least cost slope value in the critical path that is 1-2 with slope of Rs50.
• Crash the activity 1-2 by 1 day.

The new network after crashing would look like

• All Paths
1-2-5 = 6+10 =16*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12

• Then the total cost after crash would be = 1,820 + 50 - 70 = 1,800 for 16 days
• 3nd Crash Limit and cost slope table
Critical Path Critical Activity Crash Limit Cost Slope
1-2-5 1-2 1-1=0 50
2-5 5 60*

• Find least cost slope value in the critical path that is 2-5 with slope of Rs 60 and the other
activity cant be crashed any more as it has reached its crash limit.
• Crash the activity 2-5 by 1 day.
• The new network after one day crash would be
All Paths
1-2-5 = 6+9 =15*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12

• Then the total cost after crash would be = 1,800 + 60 - 70 = 1,790 for 15 days
• Hence the total cost is reduced after 1 day’s crash.
• Now we can proceed with further crashing so as to check the change in the cost.
• 4nd Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-2-5 1-2 0 50
2-5 4 60*

• Find least cost slope value in the critical path that is 2-5 with slope of Rs 60 and the other
activity cant be crashed any more as it has reached its crash limit.
• Crash the activity 2-5 by 1 day.

• The new network after one day crash would be

All Paths
1-2-5 = 6+8 =14*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12

• Then the total cost after crash would be = 1,790 + 60 - 70 = 1,780 for 14 days.
• Hence the total cost is reduced after 1 day’s crash.
• Now we can proceed with further crashing so as to check the change in the cost.
• 5th Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-2-5 1-2 0 50
2-5 3 60*

• Find least cost slope value in the critical path that is 2-5 with slope of Rs 60 and the other
activity cant be crashed any more as it has reached its crash limit.
• Crash the activity 2-5 by 1 day.
• The new network after one day crash would be
All Paths
1-2-5 = 6+7 =13*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12

• Then the total cost after crash would be = 1,780 + 60 - 70 = 1,770 for 13 days.
• Hence the total cost is reduced after 1 day’s crash.
• Hence we can proceed with further crashing so as to check the change in the cost.
• 6th Crash Limit and cost slope table
Critical Path Critical Activity Crash Limit Cost Slope
1-2-5 1-2 0 50
2-5 2 60*

• Find least cost slope value in the critical path that is 2-5 with slope of Rs 60 and the other
activity cant be crashed any more as it has reached its crash limit.
• Crash the activity 2-5 by 1 day.
• The new network after one day crash would be
All Paths
1-2-5 = 6+6 =12*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12 *

• Then the total cost after crash would be = 1,770 + 60 - 70 = 1,760 for 12 days
• Hence the total cost is reduced after 1 day’s crash.
• Hence we can proceed with further crashing so as to check the change in the cost.
• 7th Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-2-5 1-2 0 50
2-5 1 60*
1-3-4-5 1-3 2 100
3-4 4 25
4-5 2 10*
• Find least cost slope values in the 2 critical paths that is 2-5 with slope of Rs 60 and 4-5 with
cost slope of Rs10.
• Crash the two activities 2-5 and 4-5 by 1 day.
• 1-2-5=11
• 1-2-4-5=10
• 1-3-4-5=11

• Then the total cost after crash would be = 1,760 + 60 +10- 70 = 1,760 for 11 days
• Hence the total cost remains same after 1 day’s crash.
• Further crashing cant be done as all the activities of the critical path 1-2-5 have reached
their crash limits. Although you can crash 4-5 in 1-3-4-5 but still the longest path will be 1-2-
5. Hence we stop the crashing here and the total cost would be Rs 1760 at 11 days time.
Eg 3: The following table gives the activities of a construction project
and other relevant information. Overhead of the project is Rs. 60 per
day.
Activity Normal Duration (Days) Crash duration (Days) Cost of crashing (Rs per day)

1-2 9 6 20
1-3 8 5 25
1-4 15 10 30
2-4 5 3 10
3-4 10 6 15
4-5 2 1 40

Ans:
All paths are
1-2-4-5=16
1-4-5=17
1-3-4-5=20

Total cost= 20*60=1200

• 1st Crash Limit and cost slope table
Critical Path Critical Activity Crash Limit Cost Slope
1-3-4-5 1-3 8-5=3 25
3-4 10-6=4 15*
4-5 2-1=1 40
• Find least cost slope value in the critical path that is 3-4 with slope of Rs15.
• Crash the activity 3-4 by 1 day.
• The new network after one day crash would look like

All Paths
1-2-4-5 = 16
1-4-5 = 17
1-3-4-5 = 19*

• Then the total cost after crash would be = (19*60)+15= 1140+15 = 1,155 for 19 days.
• Hence the total cost is reduced after 1 day’s crash.

• Now we can proceed with further crashing so as to check the change in the cost.
• 2nd Crash Limit and cost slope table
Critical Path Critical Activity Crash Limit Cost Slope
1-3-4-5 1-3 3 25
3-4 3 15*
4-5 1 40
• Find least cost slope value in the critical path that is 3-4 with slope of Rs15.
• Crash the activity 3-4 by 1 day.
• The new network after one day crash would look like

All Paths
1-2-4-5 = 16
1-4-5 = 17
1-3-4-5 = 18*

• Then the total cost after crash would be = (18*60)+15+15= 1080+30 = 1,110 for 18 days.
• Hence the total cost is reduced after 1 day’s crash.

• Now we can proceed with further crashing so as to check the change in the cost.
• 3rd Crash Limit and cost slope table
Critical Path Critical Activity Crash Limit Cost Slope
1-3-4-5 1-3 3 25
3-4 2 15*
4-5 1 40
• Find least cost slope value in the critical path that is 3-4 with slope of Rs15.
• Crash the activity 3-4 by 1 day.
• The new network after one day crash would look like

All Paths
1-2-4-5 = 16
1-4-5 = 17*
1-3-4-5 = 17*

• Then the total cost after crash would be = (17*60)+15+15+15= 1020+45 = 1,065 for 17 days.
• Hence the total cost is reduced after 1 day’s crash.

• Now we can proceed with further crashing so as to check the change in the cost.
• 4th Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-4-5 1-4 5 30
4-5 1 40*
1-3-4-5 1-3 3 25
3-4 1 15
4-5 1 40*

• Find least cost slope value in the critical path that is by crashing common activity of 4-5 we will reduce cost by 40 where as if
we consider 3-4 and 1-4 total cost will be 45 hence we crash common activity 4-5 by 1 day.
• The new network after one day crash would look like

All Paths
1-2-4-5 = 15
1-4-5 = 16*
1-3-4-5 = 16*

• Then the total cost after crash would be = (16*60)+15+15+15+40= 1,045 for 16 days.
• Hence the total cost is reduced after 1 day’s crash.

• Now we can proceed with further crashing so as to check the change in the cost.
• 5th Crash Limit and cost slope table

Critical Path Critical Activity Crash Limit Cost Slope

1-4-5 1-4 5 30*
4-5 0 40
1-3-4-5 1-3 3 25
3-4 1 15*
4-5 0 40

• Crash activities 1-4 and 3-4 by 1 day each

• The new network after one day crash would look like

All Paths
1-2-4-5 = 15*
1-4-5 = 15*
1-3-4-5 = 15*

• Then the total cost after crash would be = (15*60)+15+15+15+40+30+15= 1,030 for 15 days.
• Hence the total cost is reduced after 1 day’s crash.

• Now we can proceed with further crashing so as to check the change in the cost.
• 6th Crash Limit and cost slope table
Critical Path Critical Crash Limit Cost Slope
Activity
1-2-4-5 1-2 3 20
2-4 2 10*
4-5 0 40
1-4-5 1-4 4 30*
4-5 0 40
1-3-4-5 1-3 3 25*
• Crash activities 2-4,1-4 and 1-3 by 1 day each
3-4 0 15
• The new network after one day crash would look like
4-5 0 40
All Paths
1-2-4-5 = 14
1-4-5 = 14
1-3-4-5 = 14

• Then the total cost after crash would be = 1,030-60+10+30+25=1,035 for 14 days.
• Hence the total cost is increased now , which means previous step is the optimal time.
• Hence the optimal time period is 15 weeks and minimum total cost in Rs 1,030.