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Gant Chart & Project Crashing
Gant Chart & Project Crashing
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What is a Project Crashing?
When assessing the feasibility of crashing a project, it's essential to look at these key factors:
1. Schedule
2. Scope
3. Cost
According to the triple constraint of the project, if you shorten the project duration, the
costs increase or the project scope is reduced.
In the case of a project crashing, the scope must remain the same, i.e., the results expected
at the beginning of the project are not expected to change, which necessarily means
increased costs.
Thus, the main goal of a project crashing is to reduce the duration of activities while
keeping costs to a minimum.
Reasons to crash the project
Choosing to crash a project is a decision you may make for several strategic reasons, such as:
A delay in the project timeline: If you face penalties because of delays in the project timeline,
adding more resources to move up the completion date may be worthwhile.
Availability of resources: If your team or organization has resources available, using those
resources can help you speed up the project timeline.
Avoiding a future delay: Adding resources to prevent a delay in the future typically adds some
cost, but that may be preferable to facing future delays that are more costly.
Time bonuses on the project: If you can qualify for a bonus based on the project completion
date, paying the cost of additional resources to finish the project sooner may make financial
sense.
New project: If your team is working on a project and receives the assignment to take on a new
project, you may crash the original project to finish it faster and focus on the new project.
Project Crashing Management Stages
Once you’ve made the decision to use project crashing, there are some steps you’ll want to follow to
get the results you want.
1. Critical Path
The first thing to do is analyze the critical path of your project. This will help you determine which
tasks can be shortened to bring the project to a close sooner. Therefore, if you haven’t already,
calculate your critical path, see which tasks are essential and which are secondary to the project’s
success.
2. Identify Tasks
Get a list of all the tasks you have, then meet with those who have been assigned to complete them.
Ask if they believe any of the tasks they’re responsible for are in the critical path and can be cut
down. Then, start looking for ways to tighten up those tasks.
3. What’s the Trade-Off?
Once you’ve narrowed down the tasks in the critical path that you believe can be shortened, start
calculating how much adding more resources will cost. Find the tasks that can be allocated
additional resources, and come in sooner with the least amount of strain on your budget.
4. Make Your Choice
When you know what you will have to spend (compared to how much time you’ll save) for each of
the tasks in your critical path, you must now make a decision and choose the least expensive way
forward. Project crashing is not just adding resources to get done faster, but it’s getting the most in
return for that extra expense.
5. Create a Budget
Like any project, once you’ve decided on your plan, you have to pay for it. Making a project-crashing
budget is the next step in executing your project-crashing plan. You’ll have to update your baseline,
schedule, and resource plan to align with your new initiative.
Example
Problem-
The management of a company is interested in crashing of the following project by spending an
additional amount not exceeding Rs. 2,000. Suggest how this can be accomplished.
Solution-
We have the following network diagram for the given project with normal costs:
Therefore Path I is the critical path and the critical activities are A, B, D and E. The non-critical
activity is C.
The crash cost per unit time for the activities in the project are provided in the following table.
We have to choose one of the activities A, B, D, and E for crashing. The crash cost per unit time is
as follows:
Rs. 3,000 for A; Rs. 1,000 for B; Rs. 1,000 for D; Rs. 500 for E.
The least among them is Rs. 500. So we have to choose the activity E for crashing. We reduce
the time of E by one week by spending an extra amount of Rs. 500.
After this step, we have the following network with the revised times for the activities:
Therefore Path I is the critical path and the critical activities are A, B, D and E. The non-critical
activity is C.
The time of E cannot be reduced further. So we cannot select it for crashing. Next B and have
the smallest crash cost per unit time. Let us select B for crashing. Let us reduce the time of B by
one week at an extra cost of Rs. 1,000.
After this step, we have the following network with the revised times for the activities:
Since both paths have equal times, both are critical paths. So, we can choose an activity for crashing
from either of them depending on the least crash cost per unit time. In path I, the activities are A, B, D
and E. In path II, the activities are A, C and E.
The crash cost per unit time is the least for activity C. So we select C for crashing. Reduce the time of C
by one week at an extra cost of Rs. 500. By the given condition, the extra amount cannot exceed Rs.
2,000.
Since this state has been met, we stop with this step.
Result: