Lecture 11

Example on schedule compression

Dr.Sawsan Hamzeh
 Example

 Calculate the normal ,least-cost , and crash duration

for the following project .
 Calculate the cost associated with each duration .
 Indirect costs ( overhead ) costs are 120 currency unit
per day .

Dr.Sawsan Hamzeh
 example
activity IPA Duration (days ) cost (unit currency )

normal crash normal crash

A ___ 5 4 500 600

B A 7 5 350 500
C A 8 5 800 920
D A 11 7 1200 1400
E B,C 6 4 600 700

F C 4 4 500 500
G D,F 7 5 700 1000

H E,F 6 5 300 420

Dr.Sawsan Hamzeh
 example

5,12
B
7
6,13 13,19 19,25
E H
0,5 5,13 6
25
6
A C
5
13,19 19,25 PF
8
0,5 5,13 25
13,17 17,24
F G
5,16 4 7
D
11 14,18 18,25
7,18
Dr.Sawsan Hamzeh
 solution

 This simple project has five paths they are listed next
,along with their length in days :

path Duration (days)

ABEH 24
ACEH 25
ACFH 23
ACFG 24
ADG 23

Dr.Sawsan Hamzeh
 solution

Activity F is struck out because it cannot be accelerated .

We have to start with the critical path ( longest ) :
ACEH . We choose activity c because it costs the least to
crash ,40 unit currency per day .we cut the duration of C
from 8 to7 .
The new duration is 24 days and we have another critical
path .

Dr.Sawsan Hamzeh
 solution

 We have two paths that tie at 24 days duration :ABEH

, and ACEH . We choose activity E , which is a shared
activity between the two paths ,and compress it from
6 days to 5 at a direct cost of 50 unit currency .

Dr.Sawsan Hamzeh
 solution

 Now we have four paths that tie at 23 days duration :

all but ACFH . We can compress a shared activity (A)
or a combination of unshared activities . We choose
activity A and compress it from 5 to 4 days at a cost of
100 unit currency . Activity A is now completely
crashed .
Dr.Sawsan Hamzeh
 Solution

Now we need to compress the same four paths using

the least- cost combination . After simple mathematical
inspection of the table , we find that the best
combination to be C ,D ,and E , with a total
Combined cost of 140 unit . We compress each of these
activities by 1 day to shorten the project duration from
22 days to 21 days . Now E is completely crashed .

Dr.Sawsan Hamzeh
 solution

 The next least-cost combination is B ,C ,and D , at a

total cost of 165 unit currency ,and the project
duration is 20 days . Now activity c is completely
crashed .
 our next choice is the combination of B , G at a
combined cost of 225 unit currency , activity B is
completely crashed . All paths are tied at 19 days .
 The only remaining option is to combine activities G
and H at a cost of 270 unit

Dr.Sawsan Hamzeh
 solution

 Now the entire project is completely crashed ,with a

duration of 18 days . The results may be summarized
as follows :

Dr.Sawsan Hamzeh
 solution

Activity Δ cost Δ days Δ cost Days shortened

Δ days
A 100 1 100 1
B 150 2 75 1 1
C 120 3 40 1 1 1
D 200 4 50 1 1
E 100 2 50 1 1
F 0 0 --
G 300 2 150 1 1
H 120 1 120 1
Dr.Sawsan Hamzeh
 solution

Days cut -- 1 1 1 1 1 1 1

Project duration 25 24 23 22 21 20 19 18
(days)
Increased cost -- 40 50 100 140 165 225 270
day
Direct cost 4,950 4,990 5,040 5,140 5,280 5,445 5,670 5.940
(currency)
Indirect costs 3,000 2,880 2,760 2,640 2,520 2,400 2,280 2,160
(currency)
Total cost 7,950 7,870 7,800 7,780 7,800 7,845 7,950 8,100
(currency)

Dr.Sawsan Hamzeh