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

  1. To reduce the scheduled completion time to reap the results of the project sooner.
  2. As project continue over time, the team consume indirect costs.
  3. There may be direct financial penalties for not completing a project on time.

KEY TERMS

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.

PROJECT CRASHING


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.

EXAMPLE


DIRECT AND INDIRECT COSTS


Project crashing costs and indirect costs have an inverse relationship; crashing costs are highest when the project is shortened, whereas indirect costs Increase as the project duration increases. So, the best project time is at the minimum point on the total cost curve as below:

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