PROJECT CRASHING Sunil Kadam

TIME – COST TRADE OFF

 Direct Cost : These include costs of materials, machinery,

tools , manhours etc.
 The estimation of direct costs is done based on the normal
amount of resources required .
 When we want to complete the project in a shorter period
than critical path, we will need to employ more resources.
Hence direct cost will increases.
INDIRECT COST

 These includes rent , overheads, administrative costs etc.

Indirect cost varies with time. They are expressed on per
day ( or per week etc.) basis.
 Hence when we shorten the project completion time , total
indirect cost reduces.
 Total Project Cost = Direct Cost + Indirect Cost
D E F I N AT I O N

 Normal Time : The normal time is the activity duration under normal circumstances.
 Normal Cost : The direct cost associated with the normal completion time. This is the
minimum direct cost required for performing that activity .
 Crash time : The minimum possible time in which an activity can be completed.
 Crash cost : The direct cost associated with crash time of an activity . When an activity is
crashed , its direct cost will increase.
 Crash Time < Normal Time
 Crash Cost > Normal Cost
COST SLOPE
OPTIMAL COST & OPTIMAL TIME
OPTIMAL COST & OPTIMAL TIME
CRASHING PROCEDURE
CRASHING PROCEDURE
EX 1
 Paths (days) Cost
crashing
A-F A-D-G B-G C-E-G Direct cost indirect total Cost
Before 11 13 10 8 713 400 1113
Crashing
crashing A by 1 10 12 10 8 743 250 993
day
crashing D by 1 10 11 10 8 793 175 968
day
crashing D by 1 10 10 10 8 843 100 943
day

crashing G & F 9 9 9 7 943 75 1018

by 1 day

crashing G & F 8 8 8 6 1043 50 1093

by 1 day
 Paths (days) Cost
crashing
A-D-G B-F C-E-H Direct cost indirect total Cost
13 8 10 1570 1300 2870
Before Crashing
CRASH G BY 1 12 8 10 1610 1200 2810
DAY
CRASH G BY 1 11 8 10 1650 1100 2750
DAY
CRASH D BY 1 10 8 10 1710 1000 2710
DAY

CRASH D & H BY 9 8 9 1800 900 2700

1 DAY

CRASH A & E BY 8 8 8 1995 800 2795

1 DAY
EX
 The following table shows details of a project, indirect cost is Rs. 200 per week.
normal crash
nodes
time cost time cost
1-2 8 1500 6 2000
1-4 10 2000 7 3000
2-4 5 800 4 1400
2-5 8 900 5 1500
3-4 0 0 0 0
4-6 12 300 8 400
5-6 5 500 4 800
 Construct the project network and identify the critical path, what is the normal duration and
corresponding total cost of the project?
 Crash the project systematically and find out minimum cost and optimal time and also find out the
additional costs required to reach the optimal time.