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Example How to go back to 25 ???

10 12 12 19
B D
10 2 12 18 7 25

12 17 17 25 25 28
Data
Date E G I
12 5 17 17 8 25 25 3 28
10
10 16 16 21
F K
14 6 20 20 5 25 138

138

Two ways to reduce duration

• Further breakdown of project work

• Use “Crashing” or Time-Cost-Tradeoff “TCT”

139

139

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More Breakdown of Work Example

A 4-Km pipeline and control room project

No. Activity Name Duration Preceding
10 Move in 2 -
20 Survey & General Layout 1 10
30 Locate & Clear ( 4 KM ) 16 20
40 Excavate ( 4 KM ) 20 30
50 Prepare Pipes for (4 KM ) 12 30
60 Lay Pipes for ( 4 KM ) 24 40, 50
70 Local Test for ( 4 KM ) 4 60
80 Foundation for Control Room 10 20
90 Finishing Control Room 19 80
100 Installing Control Equipment 5 90
110 Testing Control with Pipe Line 3 70, 100 140
120 Clean up 2 110
130 Contingency 5 120

140

0 2 2 3 3 19

10 20 30
0 2 2 2 1 3 3 16 19

19 39

40
19 20 39

19 31

50
27 12 39

39 63

60
39 24 63

63 67

70
63 4 67

3 13 13 32 32 37 67 70 70 72 72 77
141
80 90 100 110 120 130
33 10 43 43 19 62 62 5 67 67 3 70 70 2 72 72 5 77

141

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0 2 2 3 3 7 7 11 11 15 15 19

10 (2) 20 (1) 30 (4) 31 (4) 32 (4) 33 (4)

0 2 2 3 3 7 11 13 15 19 21 25

7 12 12 17 17 22 22 27

40(5) 41(5) 42(5) 43(5)

7 12 13 18 19 24 25 30

7 10 11 14 15 18 19 22

50(3) 51(3) 52(3) 53(3)

9 12 15 18 21 24 27 30

12 18 18 24 24 30 30 36

60(6) 61(6) 62(6) 63(6)

12 18 18 24 24 30 30 36

18 19 24 25 30 31 36 37

70(1) 71(1) 72(1) 73(1)

33 34 34 35 35 36 36 37

142
3 13 13 32 32 37 37 40 40 42 42 47

80(10) 90(19) 100(5) 110(3) 120(2) 130(5)

3 13 13 32 32 37 37 40 40 42 42 47

142

Crashing and TCT

• Both crashing and TCT deals with

Shortening Project Duration

• Crashing  Try to reduce project time to reach a certain

duration (deadline) and provides the corresponding (cost).

• TCT  Try to reduce project cost and provides the

corresponding project duration (recommend duration).

Both follow same approach/procedure of buying time 143

with minimum increase in cost

143

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Crashing and TCT

• Activity time-cost relationship?
Linear vs. Discrete
(Cheap & Slow versus Fast & Expensive)

• Cost Slope for an activity?

How much extra cost is needed to reduce activity’s
duration by one unit time (e.g., day)?

• Project time-cost relationship?

144
• Strategy to meet deadline?

144

Activity time-cost relationship

Cheap & Slow versus Fast & Expensive

Linear
Discrete

D
B
Activity (X) 145

Curve linear
145

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Cost Slope

For Activity (X)

Cost slope (e.g.,$ 1000)

(Crashed Cost – Normal Cost)

Cost slope = 146
$/Unit time
(Normal Duration – Crashed Duration)

146

From Activity to Project Level

Project Time-Cost Relationship
Example 1: Durations and cost slopes are shown for the
following network. We need to meet a 12-day deadline.
5 10
B (5 days), $100/day

0 5 10 16
A (5 days), $200/day D (6 days), $180/day

5 9
C (4 days), $50/day
147

Activity (Duration), cost slope

147

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From Activity to Project Level

Project Time-Cost Relationship

148

148

Strategy to meet deadline

1. Search for critical activities as they control the project
(use normal durations) ;
2. Calculate cost slope for critical activities;
3. Crash critical path at lowest cost by reducing the
duration of its critical activities with least cost slope
until its crashed duration is reached or until the critical
path changes. (take care if multiple critical paths exists)
4. Calculate the cost increase due to crashing by
multiplying the crashed time by corresponding cost
slope.
5. Repeat steps (1 to 4) as many time needed either to
reach the deadline or to see the whole time-cost
relationship. 149

149

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Example

The durations and direct costs for each activity in

the network of a small construction contract
under both normal and crash conditions are given
in the table (in the next slide). Establish the least
cost for expediting the contract. Determine the
optimum duration of the contract assuming the
indirect cost is LE 125/day.

150

150

Example

Normal Crashed
No. Preceding Duration Direct Cost Duration Direct Cost
( days) (LE) ( days) (LE)
A - 12 7000 10 7200
B A 8 5000 6 5300
C A 15 4000 12 4600
D B 23 5000 23 5000
E B 5 1000 4 1050
F C 5 3000 4 3300
G E,C 20 6000 15 6300
H F 13 2500 11 2580
151
I D,G,H 12 3000 10 3150

151

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Example
Normal Crashed
Allowable
No. Preceding Duration Direct Cost Duration Direct Cost Cost Slope
crash time
( days) (LE) ( days) (LE)
A - 12 7000 10 7200 100 2
B A 8 5000 6 5300 150 2
C A 15 4000 12 4600 200 3
D B 23 5000 23 5000 - -

E B 5 1000 4 1050 50 1
F C 5 3000 4 3300 300 1
G E,C 20 6000 15 6300 60 5
H F 13 2500 11 2580 40 2
I D,G,H 12 3000 10 3150 75 2
152
36,500

152

1- Crash A, C, G, or I (why?) 2- Select G (why?)

3- Crash G by only 2 days not 5 (why?)
20 43
D
24 23 47

0 12 12 20 20 25 27 47 47 59
A B E G I
0 12 12 14 8 22 22 5 27 27 20 47 47 12 59

2@100 5@60 2@75

12 27 27 32 32 45
C F H
153
12 15 27 29 5 34 34 13 47

3@200

153

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Summary of results
cycle Proj. Proj. Proj. Total Cost Critical Activit(ies) Crashing Extra direct cost
Dur. direct Cost indirect path(s) to to be time
Cost be crashed crashed

0 59 36,500 59x125 43,875 ACGI G 2 2x60 =120

1 57 36,620 57x125 43,745

154

154

Update the schedule

20 43
D
22 23 45

0 12 12 20 20 25 27 45 45 57
A B E G I
0 12 12 14 8 22 22 5 27 27 18 45 45 12 57

2@100 3@60 2@75

12 27 27 32 32 45
C F H 155
12 15 27 27 5 32 32 13 45

3@200 1@300 2@40

155

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1- Crash path ACGI concurrently with path ACFHI (why?)

2- Select I (why?) and crash it by 2 days (why?)
20 43
D
22 23 45

0 12 12 20 20 25 27 45 45 57
A B E G I
0 12 12 14 8 22 22 5 27 27 18 45 45 12 57

2@100 3@60 2@75

12 27 27 32 32 45
C F H 156
12 15 27 27 5 32 32 13 45

3@200 1@300 2@40

156

Summary of results
cycle Proj. Proj. Proj. Total Cost Critical Activit(ies) Crashing Extra direct cost
Dur. direct Cost indirect path(s) to to be time
Cost be crashed crashed

0 59 36,500 59x125 43,875 ACGI G 2 2x60 =120

1 57 36,620 57x125 43,745 ACGI I 2 2x75=150
ACFHI
2 55 36,770 55x125 43,645

157

157

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Update the schedule

20 43
D
22 23 45

0 12 12 20 20 25 27 45 45 55
A B E G I
0 12 12 14 8 22 22 5 27 27 18 45 45 10 55

2@100 3@60

12 27 27 32 32 45
C F H
158
12 15 27 27 5 32 32 13 45

3@200 1@300 2@40

158

1- Crash path ACGI concurrently with path ACFHI

2- Select H from path ACFHI and G from path ACGI (why?)
3- What about A (?) 20 43
D
4- Crash 2 days 22 23 45
(why?) and (why?)

0 12 12 20 20 25 27 45 45 55
A B E G I
0 12 12 14 8 22 22 5 27 27 18 45 45 10 55

2@100 3@60

12 27 27 32 32 45
C F H 159
12 15 27 27 5 32 32 13 45

3@200 1@300 2@40

159

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Summary of results
cycle Proj. Proj. Proj. Total Cost Critical Activit(ies) Crashing Extra direct cost
Dur. direct Cost indirect path(s) to to be time
Cost be crashed crashed

0 59 36,500 59x125 43,875 ACGI G 2 2x60 =120

ACGI
1 57 36,620 57x125 43,745 I 2 2x75=150
ACFHI
ACGI G 2x60 +
2 55 36,770 55x125 43,645 2
ACFHI H 2x40= 200
3 53 36,970 53x125 43,595

160

160

Update the schedule

20 43
D
20 23 43

0 12 12 20 20 25 27 43 43 53
A B E G I
0 12 12 12 8 20 22 5 27 27 16 43 43 10 53

2@100 2@150 1@60

12 27 27 32 32 43
C F H
161
12 15 27 27 5 32 32 11 43

3@200 1@300

161

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1- Crash paths ACGI, ACFHI, and ABDI

2- Select A from path ACFHI, ACGI, & ABDI (why?)
3- Crash 2 days (why?) 20 43
D
20 23 43

0 12 12 20 20 25 27 43 43 53
A B E G I
0 12 12 12 8 20 22 5 27 27 16 43 43 10 53

2@100 2@150 1@60

12 27 27 32 32 43
C F H
162
12 15 27 27 5 32 32 11 43

3@200 1@300

162

Summary of results
cycle Proj. Proj. Proj. Total Cost Critical Activit(ies) Crashing Extra direct cost
Dur. direct Cost indirect path(s) to to be time
Cost be crashed crashed

0 59 36,500 59x125 43,875 ACGI G 2 2x60 =120

ACGI
1 57 36,620 57x125 43,745 I 2 2x75=150
ACFHI
ACGI G 2x60 +
2 55 36,770 55x125 43,645 2
ACFHI H 2x40= 200
ACGI
3 53 36,970 53x125 43,595 ACFHI A 2 2x100=200
ABDI
4 51 37,170 51x125 43,545

163

163

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Update the schedule

18 41
D
18 23 41

0 10 10 18 18 23 25 41 41 51
A B E G I
0 10 10 10 8 18 20 5 25 25 16 41 41 10 51

2@150 1@60

10 25 25 30 30 41
C F H
164
10 15 25 25 5 30 30 11 41

3@200 1@300

164

1- Crash paths ACGI, ACFHI, and ABDI

2- Select C from paths ACFHI and ACGI & B from ABDI (why?)
3- Crash 2 days (why?) 18 41
D
18 23 41

0 10 10 18 18 23 25 41 41 51
A B E G I
0 10 10 10 8 18 20 5 25 25 16 41 41 10 51

2@150 1@60

10 25 25 30 30 41
C F H
165
10 15 25 25 5 30 30 11 41

3@200 1@300

165

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Summary of results
cycle Proj. Proj. Proj. Total Cost Critical Activit(ies) Crashing Extra direct cost
Dur. direct Cost indirect path(s) to to be time
Cost be crashed crashed

0 59 36,500 59x125 43,875 ACGI G 2 2x60 =120

ACGI
1 57 36,620 57x125 43,745 I 2 2x75=150
ACFHI
ACGI G 2x60 +
2 55 36,770 55x125 43,645 2
ACFHI H 2x40= 200
ACGI
3 53 36,970 53x125 43,595 ACFHI A 2 2x100=200
ABDI
4 51 37,170 51x125 43,545 ACGI C 2 2x200+
ACFHI B 2x150=700
ABDI
166
5 49 37,870 49x125 43,995

166

Update the schedule

16 39
D
16 23 39

0 10 10 16 16 21 23 39 39 49
A B E G I
0 10 10 10 6 16 18 5 23 23 16 39 39 10 49

1@60

10 23 23 28 28 39
C F H
167
10 13 23 23 5 28 28 11 39

1@300

167

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1- Crash paths ……………

2- Select activities …………….
3- Crash ………. days 16 39
D
16 23 39

0 10 10 16 16 21 23 39 39 49
A B E G I
0 10 10 10 6 16 18 5 23 23 16 39 39 10 49

1@60

10 23 23 28 28 39
C F H
168
10 13 23 23 5 28 28 11 39

1@300

168

45,000 15000
50,000
44,000
14000
45,000
43,000

40,000 42,000 13000

41,000
35,000 12000
40,000

30,000 39,000 11000

38,000
25,000 10000
37,000

20,000 36,000 9000

35,000
15,000 8000
34,000

10,000 33,000 7000

32,000
5,000 6000
31,000

0 30,000 5000
45 47 49 51 53 55 57 59 45 47 49 51 53 55 57 59
169
direct cost indirect cost total cost

169

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Paths Method

A (100,2) B (150,2) D (-,-) I(75,2)

12 8 23 12 55 55
A (100,2) B (150,2) E(50,1) G(60,5) I(75,2)
12 8 5 20 18 12 57 55
A(100,2) C(200,3) G(60,5) I(75,2)
12 15 20 18 12 59 57
A(100,2) C(200,3) F(300,1) H(40,2) I(75)
12 15 5 13 12 57 57

170

170

Paths Method

A (100,2) B (150,2) D (-,-) I(75,2)

12 8 23 12 10 55 55 53
A (100,2) B (150,2) E(50,1) G(60,5) I(75,2)
12 8 5 20 18 12 10 57 55 53
A(100,2) C(200,3) G(60,5) I(75,2)
12 15 20 18 12 10 59 57 55

A(100,2) C(200,3) F(300,1) H(40,2) I(75)

12 15 5 13 12 10 57 57 55

171

171

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• CPM  determine activities ST & FN times Total Project Duration

• TCT  Change activities duration change ST & FN times New

Schedule that meet minimum cost

• Crashing  Change activities duration change ST & FN times

New Schedule that meet deadline

• Leveling  Delay activities  change ST & FN times  New Schedule

meets available resources

• Smoothing  Delay non-critical activities  change ST & FN times 

New Schedule with better resource distribution (less fluctuation)

They are all SCHEDULING techniques 172

172

Leveling & TCT conflict objectives

Leveling increase duration

TCT decrease duration

Accordingly, After performing resource leveling

you may need to perform TCT and after TCT you
need to cheek resources (cycling process LOOP).

The solution is to optimize the schedule , HOW?

173

173

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Schedule Optimization

174

174

Schedule Optimization

175

175

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Schedule Optimization

2 3

176

176

20