ras h i n g

d eo ff c
co st t ra
T im e

Prepared By:
Group 9
Divi Agarwal – 191084
Mahak Khemka – 191094
Sahil Sethi – 191110
Shilpi Jain – 191112
Shrey Gupta – 191114
Basic Concepts:
Each activity is allocated some resources.
- Normal Time and Normal Cost.

Sometimes an activity needs to be expedited i.e.

the project duration needs to be minimized.
- Crash Time and Crash Cost.

2
Crashing increases the direct costs and
decreases the indirect costs.
The goal in evaluating time-cost trade offs is to
identify activities that will reduce the sum of
direct costs and indirect costs.

To crash a project, there are two

important things:
• Look for the critical path.
• Crash the least expensive activity.

3
Assumptions:

Normal Cost and Crash cost are given

for total time duration and not for a
week.

4
Activity Normal Normal cost Crash Time Crash Cost Immediate
Time (In (In Rs.) (In Weeks) (In Rs.) Predecessors
Weeks)
A 2 50 1 70 -
B 4 80 2 160 A
C 8 70 4 110 A
D 6 60 5 80 A
E 7 100 6 130 B
F 4 40 3 100 D
G 5 100 4 150 E,F

5
 Network diagram

E7
B4
A2 D6 F4 G5
START END
i ty
C8 ctiv
y a
mm
Du

6
 Critical Path
Path Total Time

A-B-E-G 2+4+7+5 = 18 Critical Path

A-D-F-G 2+6+4+5 = 17
A-C 2+8 = 10

7
 Critical Path

E7
B4
A2 D6 F4 G5
START END
i ty
C8 ctiv
y a
mm
Du

8
So, minimum project completion time is 18
Weeks.
Critical Path is A-B-E-G
And
Normal Cost incurred is Rs. 500.

9
 Minimum Total Direct Cost
Activity Normal Normal Crash Crash Available Crash Cost
Time (In cost (In Time Cost (In Days per day
Weeks) Rs.) (In Weeks) Rs.)
A 2 50 1 70 1 20
B 4 80 2 160 2 40
E 7 100 6 130 1 30
G 5 100 4 150 1 50
Total 18 500

Normal time incurred is 18 weeks. So we don’t need

to crash the time. And minimum direct cost incurred
is 500. 10
 Paths Length
A-B-E-G 18
A-D-F-G 17
A-C 10

17 weeks :
Activity Crash Cost (Per Available Weeks Minimum
week) crash cost
A 20 1
B 40 2
E 30 1
G 50 1

11
After crashing activity ‘A’ by 1 day
Paths Length
A-B-E-G 17
A-D-F-G 16
A-C 9

Minimum direct cost = 500 + 20

= 520

12
16 weeks
Activity Crash Cost (Per Available Weeks
week) Minimum
A No reduction - crash cost
possible
B 40 2
E 30 1
G 50 1

After crashing activity ‘E’ by 1 day

Paths Length
A-B-E-G 16
A-D-F-G 16
A-C 9

Minimum direct cost = 520 + 30 = 550

13
Path Activity Crash Cost Available
(Per week) Weeks
A-B-E-G A No reduction -
possible
B 40 2
E No further -
reduction
possible
G 50 1

A-D-F-G A No further
reduction
possible
D 20 1
F 60 1
G 50 1

14
15 weeks:
The option of shortening the least expensive
activity on each path would cost Rs. 40 for ‘B’ and
Rs. 20 for ‘D’ , totaling to Rs. 60.

However ‘G’ is on both paths. So shortening ‘G’ by

one day would shorten both path by one day for
a cost of Rs.50.

So, we will crash the activity ‘G’.

15
Paths Length

A-B-E-G 15

A-D-F-G 15

A-C 9

Minimum direct cost = 550 + 50

= 600

16
Path Activity Crash Cost (Per week) Available
Weeks
A-B-E-G A No further reduction -
possible
B 40 2
E No further reduction -
possible
G No further reduction -
possible
Minimum
crash cost

A-D-F-G A No further reduction -

possible

D 20 1
F 60 1
G No further reduction -
possible

17
14 weeks :
The option of shortening the least expensive activity on
each path would cost Rs. 40 for ‘B’ and Rs. 20 for ‘D’ ,
totaling to Rs. 60.
So, we will crash the activity ‘B’ and ‘D’.
Minimum total direct cost = 600 + 60
= 660
Paths Length

A-B-E-G 14

A-D-F-G 14

A-C 9
18
Path Activity Crash Cost (Per week) Available
Weeks
A-B-E-G A No further reduction -
possible
B 40 1
E No further reduction -
possible
G No further reduction -
possible

A-D-F-G A No further reduction -

possible Minimum
crash cost
D No further reduction -
possible
F 60 1
G No further reduction -
possible

19
13 weeks :
The option of shortening the least expensive activity on
each path would cost Rs. 40 for ‘B’ and Rs. 60 for ‘F’ ,
totaling to Rs. 100.
So, we will crash the activity ‘B’ and ‘F’.
Minimum total direct cost = 600 + 100
= 700
Paths Length

A-B-E-G 13

A-D-F-G 13

A-C 9
20
 INDIRECT COST
Assumptions:

The indirect costs, given , are for whole time

duration and not for a week.

21
 18 weeks
Indirect Cost : 400
Activity Normal Normal Crash Crash Available Crash Cost
Time (In cost (In Time Cost (In Days per day
Weeks) Rs.) (In Weeks) Rs.)
A 2 50 1 70 1 20
B 4 80 2 160 2 40
E 7 100 6 130 1 30
G 5 100 4 150 1 50
Total 18 500

Paths Length
Minimum project cost
A-B-E-G 18
incurred is 500 + 400 = A-D-F-G 17
900. A-C 10
22
17 weeks
Indirect Cost : 350
Activity Crash Cost (Per Available Weeks Minimum
week) crash cost
A 20 1
B 40 2
E 30 1
G 50 1

Since 20 does not exceed the indirect project cost of 350, so we can crash
activity ‘A’.
Paths Length
Minimum direct cost = 500 + 20
= 520 A-B-E-G 17
Total project cost = 520 + 350 A-D-F-G 17
= 870.
A-C 9

23
16 weeks
Indirect Cost : 300
Activity Crash Cost (Per Available Weeks
week)
A No reduction - Minimum
possible crash cost
B 40 2
E 30 1
G 50 1

Now crash cost = 20 + 30 = 50.

Since 50 does not exceed the indirect project cost of 300, so we can crash
activity ‘E’.
Paths Length
Minimum direct cost = 500 + 50
= 550 A-B-E-G 16
Total project cost = 550 + 300 A-D-F-G 16
= 850. A-C 9
24
Path Activity Crash Cost Available
(Per week) Weeks
A-B-E-G A No reduction -
possible
B 40 2
E No further -
reduction
possible
G 50 1

A-D-F-G A No further
reduction
possible
D 20 1
F 60 1
G 50 1

25
15 weeks:
Indirect Cost : 250.
The option of shortening the least expensive activity on each
path would cost Rs. 40 for ‘B’ and Rs. 20 for ‘D’ , totaling to Rs.
60.
And total crash cost = 60 + 50 =110.

However ‘G’ is on both paths. So shortening ‘G’ by one day

would shorten both path by one day for a cost of Rs.50, and
total crashing cost = 50 + 50 =100, which is less than 110.
Since it is less than Rs 250, the indirect cost.

Therefore, we will crash the activity ‘G’.

26
Minimum direct cost = 500 + 100 = 600
Total Project Cost = 600 + 250 = 850.

Paths Length

A-B-E-G 15

A-D-F-G 15

A-C 9

27
Path Activity Crash Cost (Per week) Available
Weeks
A-B-E-G A No further reduction -
possible
B 40 2
E No further reduction -
possible
G No further reduction -
possible
Minimum
crash cost

A-D-F-G A No further reduction -

possible

D 20 1
F 60 1
G No further reduction -
possible

28
14 weeks
Indirect Cost : 200
The option of shortening the least expensive activity on each path
would cost Rs. 40 for ‘B’ and Rs. 20 for ‘D’ , totaling to Rs. 60.
Since, total crashing cost till 14th week is Rs 160 which is less than
Rs 200 of indirect cost
So, we will crash the activity ‘B’ and ‘D’.
Minimum total direct cost = 500 + 160
= 660
Paths Length

Total project cost = A-B-E-G 14

660 + 200 = 860. A-D-F-G 14

A-C 9
29
Path Activity Crash Cost (Per week) Available
Weeks
A-B-E-G A No further reduction -
possible
B 40 1
E No further reduction -
possible
G No further reduction -
possible

A-D-F-G A No further reduction -

possible Minimum
crash cost
D No further reduction -
possible
F 60 1
G No further reduction -
possible

30
13 weeks
Indirect Cost : 150
The option of shortening the least expensive activity on
each path would cost Rs. 40 for ‘B’ and Rs. 60 for ‘F’ ,
totaling to Rs. 100.
But since total crashing cost till 13th week is Rs 260
which is greater then the total indirect cost of Rs 150
So, we will cannot crash the project further.

31