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Crashing Problems

The document describes using the least cost method to crash a project schedule from its initial duration of 25 time units down to the optimal duration. It provides information on activity times, costs, and crashable durations. The critical path is initially A→D→F→G. Crashing A by 1 unit increases the cost to $470 and duration to 24 units. Subsequently crashing D, F, and combinations of activities C, D, E reduces the duration further. Indirect costs are also provided. The optimal schedule is found to be 22 time units with a total cost of $775.

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669 views8 pages

Crashing Problems

The document describes using the least cost method to crash a project schedule from its initial duration of 25 time units down to the optimal duration. It provides information on activity times, costs, and crashable durations. The critical path is initially A→D→F→G. Crashing A by 1 unit increases the cost to $470 and duration to 24 units. Subsequently crashing D, F, and combinations of activities C, D, E reduces the duration further. Indirect costs are also provided. The optimal schedule is found to be 22 time units with a total cost of $775.

Uploaded by

Hn Lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Crashing Problems

1. Normal and crash times and costs for each activity are shown in the table below.

The slope and the maximum crash time for each activity are computed by using the
following equations:

Maximum Crash Time= Normal time – Crash time

After calculating slope and maximum crash time for each activity, we can construct the
following table.
The critical path is ADFG and the time for the project duration is 25 (3+11+5+6=25) .
Note the total direct cost for the 25-period duration is $450 (Sum of all normal
costs=50+80+....70=450)
This is an anchor point to begin the procedure of shortening the critical path(s) and finding
the total direct costs for each specific duration less than 25 time units.
We cannot shorten activity G, since its maximum crash time is 0. Because it is impossible to
shorten activity G, activity A is circled because it is the least-cost candidate; that is, its slope
($20) is less than the slopes for activities D and F ($25 and $30). Reducing activity A one time
unit cuts the project duration to 24 time units but increases the total direct costs to $470
($450 1 $20 5 $470). So, we get the figure below.

The duration of activity A has been reduced to two time units; the “x” indicates the activity
cannot be reduced any further. Activity D is circled because it costs the least ($25) to shorten
the project to 23 time units. Compare the cost of activity F. The total direct cost for a project
duration of 23 time units is $495.
Observe that the project network in Figure above now has two critical paths— A, C, F, G and
A, D, F, G. Reducing the project to 22 time units will require that activity F be reduced; thus,
it is circled. This change is reflected in figure below. The total direct cost for 22 time units is
$525.

This reduction has created a third critical path—A, B, E, G; all activities are critical. The least-
cost method for reducing the project duration to 21 time units is the combination of the circled
activities C, D, E which cost $30, $25, $30, respectively, and increase total direct costs to $610.
The results of these changes are shown in the following figure.

Although some activities can still be reduced (those without the “x” next to the activity time),
no activity or combination of activities will result in a reduction in the project duration.
With the total direct costs for the array of specific project durations found, the next step is to
collect the indirect costs for these same durations. Figure below presents the total direct costs,
total indirect costs, and total project costs.
These same costs are plotted in the graph below. This graph shows that the optimum cost-
time duration is 22 time units and $775. Assuming the project will actually materialize as
planned, any movement away from this time duration will increase project costs. The
movement from 25 to 22 time units occurs because, in this range, the absolute slopes of the
indirect costs are greater than the direct cost slopes.

2. Use the information contained below to compress one time unit per move using the least
cost method. Reduce the schedule until you reach the crash point of the network. For each
move identify what activity(s) was crashed, the adjusted total cost, and explain your choice
if you have to choose between activities that cost the same. If the indirect cost for each
duration are $1,500 for 17 weeks, $1,450 for 16 weeks, $1,400 for 15 weeks, $1,350 for
14 weeks, $1,300 for 13 weeks, $1,250 for 12 weeks, $1,200 for 11 weeks, and $1,150 for
10 weeks, what is the optimum cost-time schedule for the project? What is the cost?
Note:
After reducing activity “B” one time unit, two critical paths are obtained. From
now on, we should make reductions that protects these critical paths. In this
way, the cost increases, so it is best to reduce the common activity in these
critical paths. Here, activity “B” is common and the cost of shorten of activity
“B” is less. Activity “B” can reduce one unit more, but it will extend this process
one more step. In the following figure indicator “x” under activity “B” shows this
situation. So, we finished the process by doing activity “I”.
“B” faaliyetini bir birim kısalttıktan sonra 2 tane kritik yol oluşmaktadır.
Dolayısıyla artık bundan sonra iki yolu da koruyacak kısaltmalar yapılması
gerekmektedir. Bu durumda maliyet artacak ve bu durumda iki kritik yolunda
ortak faaliyetini kısaltmak en doğrusu olacaktır. Burada “B” faaliyeti de ortak ve
kısaltma maliyeti daha azdır. “B” faaliyeti bir birim daha azaltılabilirdi fakat bu
süreci bir adım daha uzatmış olacaktı. “B” faaliyetinin altına buradaki “x”
göstergesinin yazılması bu durumu göstermektedir. Bu nedenle, “I” faaliyeti
yapılarak süreç kapanmış oldu.

3. Use the information contained below to compress one time unit per move using the least
cost method. Reduce the schedule until you reach the crash point of the network. For each
move identify what activity(s) was crashed the adjusted total cost.
Reference: Project Management: The Managerial Process, McGraw-Hill.

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