Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 43

Project Management

Chapter 10

Project Crashing
Professor Ayman Abdallah
Project Crashing

 It is common to face the following


situations:
► The project is behind schedule
► The completion time has been moved
forward

Shortening the duration of the project


is called project crashing
Crashing
 Project crashing: is the process of reducing the duration of a
project by expending additional resources (funds)

 Crashing the project requires additional resources such as using


overtime, working weekends, hiring extra workers, or using
extra equipment.

 Reasons for crashing a project may include:


 The initial schedule may be too aggressive.
 Market needs change and the project is in demand earlier than
anticipated
 The project has slipped considerably behind schedule
 The contractual situation provides even more incentive to avoid
schedule slippage
Crashing
 Options for accelerating (crashing) projects:
 Improve the productivity of existing project resources
 Change the working method employed for the activity
 Compromise quality and/or reduce project scope
 Fast-track the project (Fast-tracking a project refers to looking for ways
to rearrange the project schedule in order to move more of the critical
path activities from sequential to parallel (concurrent) relationships).
 Use overtime
 Add resources to the project team

 The last method (adding additional resources to the project) is


the most common and realistic method, and crashing in this
chapter is based on it.
Crashing
 Project crashing: is the process of reducing the duration of a
project by expending additional resources (funds)

 Crashing the project requires additional resources such as using


overtime, working weekends, hiring extra workers, or using
extra equipment.

 Reasons for crashing a project may include:


 The initial schedule may be too aggressive.
 Market needs change and the project is in demand earlier than
anticipated
 The project has slipped considerably behind schedule
 The contractual situation provides even more incentive to avoid
schedule slippage
Steps in Project Crashing

1. Compute the crash cost per week (or other time


period) for all activities in the network using the
formula:

Crash cost (Crash cost – Normal cost)


per period =
(Normal time – Crash time)

2. Using normal activity times, find the critical path


and identify the critical activities
Steps in Project Crashing

3. If there is only one critical path, then select the


activity on this critical path that (a) can still be
crashed, and (b) has the smallest crash cost per
period.
 If there is more than one critical path, then select
one activity from each critical path such that (a)
each selected activity can still be crashed, and (b)
the total crash cost of all selected activities is the
smallest. Note that the same activity may be
common to more than one critical path.
Steps in Project Crashing

4. Check to be sure that the critical path you were


crashing is still critical. If the critical path is still
the longest path through the network, return to
step 3. If not, find the new critical path and
return to step 2.
Project crashing/ Example 1

The activities necessary for the completion of one project


are listed in the table below. The table reports normal time
and normal cost for each activity. Crashed time and cost for
each activity are also reported (time in this example is in
weeks).
Crash the project by 4 weeks with minimum increase in total
cost. Each time show the critical path, activity/ies crashed,
and total cost of the project.
Project crashing/ Example 1
Project crashing/ Example 1/ Solution
1. Compute the crash cost per week for each
activity

Crash cost (Crash cost – Normal cost)


per period =
(Normal time – Crash time)
Activity A:
Normal time is 3 weeks. With additional resources, it
can be reduced to 4 weeks. This means maximum
crash time for activity A is 1 week. The cost of
crashing this activity by 1 week is 20 JD.

Crash cost/week (70– 50)


= = 20 JD per week
A (5– 3)
Project crashing/ Example 1/ Solution
1. Compute the crash cost per week for each activity
Activity B:
Normal time is 6 weeks. With additional resources, it
can be reduced to 4 weeks. This means maximum
crash time for activity B is 2 weeks. To crash this
activity by 2 weeks, the cost will increase by 80 JD
(will become 160 instead of 80). Thus, crash cost per
week for activity B is 40 JD. Or:

Crash cost/week (160– 80)


= = 40 JD per week
B (6– 4)
Project crashing/ Example 1/ Solution
1. Compute the crash cost per week for each activity
Crash (90– 60)
= = 30 JD per week
cost/week C (10– 9)
Crash (150– 50)
= = 25 JD per week
cost/week D (11– 7)
Crash (160– 100)
= = 30 JD per week
cost/week E (8– 6)

Crash (70– 40)


= = 30 JD per week
cost/week F (5– 4)
Crash (70– 70)
= = zero
cost/week G (6– 6)
Project crashing/ Example 1/ Solution

Note that activity G can’t be crashed (some activities


can’t be crashed even with additional resources)

Maximum crash time for any activity = normal time –


crashed time

Add two columns to the table: crash cost per week and
maximum crash time (see the table in the next slide)
Project crashing/ Example 1/ Solution
Project crashing/ Example 1/ Solution
2. Using normal activity times, find the critical path
and identify the critical activities

Path 1: A-B-E-G
3+6+8+6 = 23 weeks
Path 2: A-C-F-G
3+10+5+6 = 24 weeks
Path 3: A-D-F-G
3+11+5+6 = 25 weeks

Path 3 is the critical path


Project crashing/ Example 1/ Solution
3. Crash the project by 1 week

 Reduce the duration of the project


by 1 week.
o Critical path is A-D-F-G
Cost of crashing A: 20 JD
Cost of crashing D: 25 JD
Cost of crashing F: 30 JD
Activity G can’t be crashed
 So, activity A should be crashed
because it has the minimum
crashing cost
Project crashing/ Example 1/ Solution
 New T.C = 450 + 20 = 470 JD
o Note that activity A can’t be crashed
anymore (maximum crash time is 1 week). x
is used to help you remember.
 Note that duration of Activity A is now 2
weeks
 After each crash, check the critical path:
Path 1: A-B-E-G
2+6+8+6 = 22 weeks
Path 2: A-C-F-G
2+10+5+6 = 23 weeks
Path 3: A-D-F-G
2+11+5+6 = 24 weeks
 A-D-F-G is still the critical path
Project crashing/ Example 1/ Solution
4. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.
o Critical path is A-D-F-G
Activity A can’t be crashed
Cost of crashing D: 25 JD
Cost of crashing F: 30 JD
Activity G can’t be crashed
 So, activity D should be crashed
because it has the minimum
crashing cost
Project crashing/ Example 1/ Solution
 New T.C = 470 + 25 = 495 JD

 Note that duration of Activity D is now 10


weeks
 After each crash, check the critical path:
Path 1: A-B-E-G
2+6+8+6 = 22 weeks
Path 2: A-C-F-G
2+10+5+6 = 23 weeks
Path 3: A-D-F-G
2+10+5+6 = 23 weeks
 We have two critical paths now:
A-C-F-G
A-D-F-G
Project crashing/ Example 1/ Solution
5. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.

 Two critical paths:


o A-D-F-G (23 weeks)
o A-C-F-G (23 weeks)
Project crashing/ Example 1/ Solution
o All the options should be checked, and the least cost option
should be selected.
 Activities A and G can’t be crashed
 We have two options:
Option 1: crash F (common activity)
Option 2: crash D for the first critical path
crash C from the second critical path
The cost of the first option is 30 JD
The cost of the second option = 25 + 30 = 55 JD
So, the first option should be selected (crash activity F by 1
week)
 Note that activity F can’t be crashed any more (maximum
crash time is 1 week)
Project crashing/ Example 1/ Solution
 New T.C = 495 + 30 = 525 JD

 Note that duration of Activity F is now 4


weeks
 After each crash, check the critical path:
Path 1: A-B-E-G
2+6+8+6 = 22 weeks
Path 2: A-C-F-G
2+10+4+6 = 22 weeks
Path 3: A-D-F-G
2+10+4+6 = 22 weeks
 We have three critical paths now:
A-B-E-G
A-C-F-G
A-D-F-G
Project crashing/ Example 1/ Solution
6. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.

 Now, we have three critical


paths:
 A-B-E-G (22 weeks)
o A-D-F-G (22 weeks)
o A-C-F-G (22 weeks)
Project crashing/ Example 1/ Solution
o All the options should be checked, and the least cost option
should be selected.
 Activities A, G, and F can’t be crashed
 There is no common activities, so one activity from each
path should be crashed
Critical path 1: two options: crash B or crash E (cost to crash B
is 40 JD, and cost to crash E is 30 JD, so activity E should be
crashed)
Critical path 2: only one option to crash activity C
Critical path 3: only one option to crash activity D

 So, in order to crash the project by 1 additional week,


activities E, C, and D should be crashed
Project crashing/ Example 1/ Solution
 New T.C = 525 + 30 + 30 +25 = 610 JD

 check the critical path:


Path 1: A-B-E-G
2+6+7+6 = 21 weeks
Path 2: A-C-F-G
2+9+4+6 = 21 weeks
Path 3: A-D-F-G
2+9+4+6 = 21 weeks

 The project has been crashed by 4


weeks with minimum increase in
total cost
Project crashing/ Example 2

The activities necessary for the completion of one project


are listed in the table below. The table reports normal time
and normal cost for each activity. Crashed time and cost for
each activity are also reported (time in this example is in
weeks).
Crash the project by 5 weeks with minimum increase in total
cost. Each time show the critical path, activity/ies crashed,
and total cost of the project.
Project crashing/ Example 2
Project crashing/ Example 2/ Solution

Note that activity A and E can’t be crashed

Maximum crash time for any activity = normal time –


crashed time

Add two columns to the table: crash cost per week and
maximum crash time (see the table in the next slide)
Project crashing/ Example 2/ Solution
1. Compute the crash cost per week for each
activity
Project crashing/ Example 2/ Solution
2. Using normal activity times, find the critical path
and identify the critical activities

Path 1: A-B-F-G-I
3+4+3+2+2 = 14 weeks
Path 2: A-B-D-H-I
3+4+4+4+2 = 17 weeks
Path 3: A-C-E-H-I
3+3+2+4+2 = 14 weeks

Path 2 is the critical path


Project crashing/ Example 2/ Solution
3. Crash the project by 1 week

 Reduce the duration of the project


by 1 week.
Critical path is A-B-D-H-I
Activity A can’t be crashed
Cost of crashing B: 100 JD
Cost of crashing D: 40 JD
Cost of crashing H: 60 JD
Cost of crashing I: 200 JD
 So, activity D should be crashed
because it has the minimum
crashing cost
Project crashing/ Example 2/ Solution
 New T.C = 2000 + 40 = 2040 JD
o Note that activity D can’t be crashed
anymore (maximum crash time is 1 week).
x is used to help you remember.
 Note that duration of Activity D is now 3
weeks
 After each crash, check the critical path:
Path 1: A-B-F-G-I
3+4+3+2+2 = 14 weeks
Path 2: A-B-D-H-I
3+4+3+4+2 = 16 weeks
Path 3: A-C-E-H-I
3+3+2+4+2 = 14 weeks
 A-B-D-H-I is still the critical path
Project crashing/ Example 2/ Solution
4. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.
o Critical path is A-B-D-H-I
Activities A and D can’t be
crashed
Cost of crashing B: 100 JD
Cost of crashing H: 60 JD
Cost of crashing I: 200 JD
 So, activity H should be crashed
because it has the minimum
crashing cost
Project crashing/ Example 2/ Solution
 New T.C = 2040 + 60 = 2100 JD

 Note that duration of Activity H is now 3


weeks
 After each crash, check the critical path:
Path 1: A-B-F-G-I
3+4+3+2+2 = 14 weeks
Path 2: A-B-D-H-I
3+4+3+3+2 = 15 weeks
Path 3: A-C-E-H-I
3+3+2+3+2 = 13 weeks

 A-B-D-H-I is still the critical path


Project crashing/ Example 2/ Solution
5. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.
o Critical path is A-B-D-H-I
Activities A and D can’t be
crashed
Cost of crashing B: 100 JD
Cost of crashing H: 60 JD
Cost of crashing I: 200 JD
 So, activity H should be crashed
because it has the minimum
crashing cost
Project crashing/ Example 2/ Solution
 New T.C = 2100 + 60 = 2160 JD
 Note that activity H can’t be crashed
anymore (maximum crash time is 2
weeks). x is used to help you remember.
 Note that duration of Activity H is now 2
weeks
 After each crash, check the critical path:
Path 1: A-B-F-G-I
3+4+3+2+2 = 14 weeks
Path 2: A-B-D-H-I
3+4+3+2+2 = 14 weeks
Path 3: A-C-E-H-I
3+3+2+2+2 = 12 weeks
 We have two critical paths now:
A-B-F-G-I
A-B-D-H-I
Project crashing/ Example 2/ Solution
6. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.

 Two critical paths:


A-B-F-G-I (14 weeks)
A-B-D-H-I (14 weeks)
Project crashing/ Example 2/ Solution
o All the options should be checked, and the least cost option
should be selected.
 Activities A, D, and H can’t be crashed
 We have two options:
Option 1: crash B (common activity)
Option 2: crash I (common activity)
The cost of the first option is 100 JD
The cost of the second option is 200 JD
So, the first option should be selected (crash activity B by 1
week)
 Note that activity B can’t be crashed any more (maximum
crash time is 1 week)
Project crashing/ Example 2/ Solution
 New T.C = 2160 + 100 = 2260 JD
 Note that duration of Activity B is now 3
weeks
 After each crash, check the critical path:
Path 1: A-B-F-G-I
3+3+3+2+2 = 13 weeks
Path 2: A-B-D-H-I
3+3+3+2+2 = 13 weeks
Path 3: A-C-E-H-I
3+3+2+2+2 = 12 weeks
 We have two critical paths now:
A-B-F-G-I
A-B-D-H-I
Project crashing/ Example 2/ Solution
7. Crash the project by 1 additional week

 Reduce the duration of the


project by 1 additional week.

 Two critical paths:


A-B-F-G-I (13 weeks)
A-B-D-H-I (13 weeks)
Project crashing/ Example 2/ Solution
o All the options should be checked, and the least cost option
should be selected.
 Activities A, B, D, and H can’t be crashed
 We have only one option to crash activity I (common
activity)
The cost of crashing activity I is 200 JD

 Note that activity I can’t be crashed any more (maximum


crash time is 1 week)
Project crashing/ Example 2/ Solution
 New T.C = 2260 + 200 = 2460 JD
 Note that duration of Activity I is now 1
week
 After each crash, check the critical path:
Path 1: A-B-F-G-I
3+3+3+2+1 = 12 weeks
Path 2: A-B-D-H-I
3+3+3+2+1 = 12 weeks
Path 3: A-C-E-H-I
3+3+2+2+1 = 11 weeks

 The project has been crashed by 5


weeks with minimum increase in
total cost

You might also like