Project Crashing and Time-Cost Trade-Off
WHAT IS THE PURPOSE OF PROJECT CRASHING ANLYSIS?
The project manager is confronted with having to reduce the scheduled completion time of a project to meet a deadline. Project duration can often be reduced by assigning more labor to project activities, in the form of over time, and by assigning more resources, such as material, equipment, etc. However, the additional labor and resources increase the project cost. So, the decision to reduce the project duration must based on an analysis of the trade-off between time and cost.
Project crashing is a method for shortening the project duration by reducing the time of one or more of the critical project activities to less than its normal activity time. The object crashing is to reduce project duration while minimizing the cost of crashing.
OBJECTIVE OF CRASHING
To reduce the scheduled completion time to reap the results of the project sooner.
As project continue over time, the team consume indirect costs.
There may be direct financial penalties for not completing a project on time.
CRASHING is reducing project time by expending additional resources.
CRASH TIME is an amount of time an activity is reduced.
CRASH COST is the cost of reducing activity.
The goal of crashing is to reduce project duration at minimum cost.
To reduce project duration while minimizing the cost of crashing, the project team should estimate require time, require the cost, crash time, crash cost for each activities. And then the team can estimate total crash time, total crash cost, the crash cost per week to reduce project duration at minimum cost.