PROJECT CRASHING

By
Henry Waruhiu
 Project Crashing and Time-Cost Trade-Off
Overview
• Project duration can be reduced by assigning more
resources to project activities.
• However, doing this increases project cost.
• Decision is based on analysis of trade-off between time
and cost.
• Project crashing is a method for shortening project
duration by reducing one or more critical activities to a
time less than normal activity time.
 Time-Cost Models

1. Identify the critical path

2. Find cost per day to expedite each node on critical
path.
3. For cheapest node to expedite, reduce it as much as
possible, or until critical path changes.
4. Repeat 1-3 until no feasible savings exist.
 Time-Cost Example D8

A 10 B 10 C 10
• ABC is critical path=30

Crash costCrash
per week wks avail Cheapest way to gain 1
A 500 2 Week is to cut A
B 800 3
C 5,000 2
D 1,100 2
 Time-Cost Example D8

A9 B 10 C 10
• ABC is critical path=29

Wks IncrementalTotal
Crash costCrash
GainedCrash $Crash $
per week wks avail 1 500 500
A 500 1
B 800 3
Cheapest way to gain 1 wk
C 5,000 2 Still is to cut A
D 1,100 2
 Time-Cost Example D8

A8 B 10 C 10
• ABC is critical path=28

Wks IncrementalTotal
Crash costCrash
GainedCrash $Crash $
per week wks avail 1 500 500
A 500 0 2 500 1,000
B 800 3
Cheapest way to gain 1 wk
C 5,000 2 is to cut B
D 1,100 2
 Time-Cost Example D8

A8 B9 C 10
• ABC is critical path=27

Wks IncrementalTotal
Crash costCrash
GainedCrash $Crash $
per week wks avail 1 500 500
A 500 0 2 500 1,000
B 800 2 3 800 1,800
Cheapest way to gain 1 wk
C 5,000 2 Still is to cut B
D 1,100 2
 Time-Cost Example D8

A8 B8 C 10
• Critical paths=26 ADC &
ABC
Wks IncrementalTotal
Crash costCrash GainedCrash $Crash $
per week wks avail 1 500 500
2 500 1,000
A 500 0
3 800 1,800
B 800 1 4 800 2,600
C 5,000 2
D 1,100 2 To gain 1 wk, cut B and D,
Or cut C
Cut B&D = $1,900
Cut C = $5,000, So cut B&D
 Time-Cost Example D7

A8 B7 C 10
• Critical paths=25 ADC &
ABC
Wks IncrementalTotal
Crash costCrash GainedCrash $Crash $
per week wks avail 1 500 500
2 500 1,000
A 500 0
3 800 1,800
B 800 0 4 800 2,600
C 5,000 2 5 1,900 4,500
D 1,100 1 Can’t cut B any more.
Only way is to cut C
 Time-Cost Example D7

A8 B7 C9
• Critical paths=24 ADC &
ABC
Wks IncrementalTotal
Crash costCrash GainedCrash $Crash $
per week wks avail 1 500 500
2 500 1,000
A 500 0
3 800 1,800
B 800 0 4 800 2,600
C 5,000 1 5 1,900 4,500
D 1,100 1 6 5,000 9,500
Only way is to cut C
 Time-Cost Example D7

A8 B7 C8
• Critical paths=23 ADC &
ABC
Wks IncrementalTotal
Crash costCrash GainedCrash $Crash $
per week wks avail 1 500 500
2 500 1,000
A 500 0
3 800 1,800
B 800 0 4 800 2,600
C 5,000 0 5 1,900 4,500
D 1,100 1 6 5,000 9,500
7 5,000 14,500
No remaining possibilities to
reduce project length
 Time-Cost Example D7

• Now we know how much it A8 B7 C8

costs us to save any
number of days
Wks IncrementalTotal
• Customer says he will pay
$2,000 per day saved. GainedCrash $Crash $
1 500 500
• Only reduce 5 days. 2 500 1,000
• We get $10,000 from 3 800 1,800
customer, but pay $4,500 in 4 800 2,600
expediting costs 5 1,900 4,500
• Increased profits = $5,500 6 5,000 9,500
7 5,000 14,500
No remaining possibilities to
reduce project length
Crashing – Example 2
The Project Network
House Building Project Data
Number Activity Predecessor Duration
1 Design house and obtain -- 12 months
financing
2 Lay foundation 1 8 months

3 Order and receive materials 1 4 months

4 Build house 2,3 12 months

5 Select paint 2, 3 4 months

6 Select carper 5 4 months
7 Finish work 4, 6 4 months
Project Crashing and Time-Cost Trade-Off
Example Problem
Project Crashing and Time-Cost Trade-Off
Example Problem
Project Crashing and Time-Cost Trade-Off
Example Problem
Total Crash Cost $2000
  $400 / week
Total Crash Time 5 weeks
Crash cost & crash time
have a linear
relationship

Time-cost relationship for crashing activity 1

Project Crashing and Time-Cost Trade-Off
Example Problem
Project Crashing and Time-Cost Trade-Off Example Problem
Project Crashing and Time-Cost Trade-Off QM for Windows Output
Project Crashing and Time-Cost Trade-Off QM for Windows Output
 Project Crashing and Time-Cost Trade-Off
General Relationship of Time and Cost

• Project crashing costs and indirect costs have an inverse

relationship.
• Crashing costs are highest when the project is shortened.
• Indirect costs increase as the project duration increases.
• The optimal project time is at the minimum point on the
total cost curve.
Project Crashing and Time-Cost Trade-Off
General Relationship of Time and Cost

The time-cost trade-off