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33 CHAPTER THREE ProjectProject ProjectProject Management:Management: Management:Management: ProjectProject
33 CHAPTER THREE
ProjectProject
ProjectProject
Management:Management:
Management:Management:
ProjectProject CrashingCrashing
ProjectProject CrashingCrashing
3 – 1
Problem A project that your company has undertaken has the following activities, which are listed
Problem
A project that your company has undertaken has the following
activities, which are listed below:
Preceding
Normal time
Normal cost
Crash time
Crash cost
Activity
Activity
(weeks)
($)
(weeks)
($)
A
-
4
4000
2
6000
B
-
6
6000
5
6500
C
A
5
4000
-
-
D
C
8
3000
4
7800
E
B, C
10
1500
7
3600
F
D, E
8
6000
-
-
G
F
9
2000
7
6000
H
E, G
5
6000
-
-
J
H
3
3000
-
-
The normal costs shown for each activity are the costs to complete each
activity by working under normal conditions. The crash time represents the
shortest time in which the activity can be completed given the use of costly
methods of completion. Assume that it is possible to reduce the normal time
to crash time in steps of one week and that the extra cost will be proportional
to the time saved. In addition, there is a site cost of $1,500 per week.
3 – 2
Determine the minimum cost of undertaking this project and state its associated time of completion
Determine the minimum cost of undertaking this
project and state its associated time of completion
1.1.
ComputeCompute thethe crashcrash costcost perper timetime period.period.
(Crash(Crash costcost –– NormalNormal cost)cost)
CrashCrash costcost
perper periodperiod ==
(Normal(Normal timetime –– CrashCrash time)time)
ActAct
AA
BB
CC
DD
EE
FF
GG
HH
JJ
CCCC
10001000
500500
--
12001200
700700
--
20002000
--
--
MaxMax
22
11
--
44
33
--
22
--
--
2.2.
UsingUsing normalnormal activityactivity times,times, findfind thethe criticalcritical
pathpath andand identifyidentify thethe criticalcritical activities.activities.
3
– 3
Network Diagram A C D 0 4 4 9 9 17 0 4 4 9
Network Diagram
A
C
D
0
4
4
9
9
17
0
4
4
9
11
19
4
5
8
Start
0
0
0
B
E
F
G
0
6
9
19
19
27
27
36
3
9
9
19
19
27
27
36
6
10
8
9
Critical path:
H
J
36
41
41
44
A-C-E-F-G-H-J
Project Duration = 44 weeks
Total cost = $35,500+(44x1500)
= $101,500
36
41
41
44
5
3
3
– 4
Network Diagram - Crashing D OBJECTIVE – A C 0 4 9 9 1000 4
Network Diagram - Crashing
D OBJECTIVE –
A C
0
4
9
9
1000 4
-
1200 17
minimize total
2
4
0
-
4
4
9
11
19
cost
4
8
5
Start
0 0
0 B
E
F
G
0
9
19
19
27
27
500 6
700
-
2000 36
1
3
2
3
9
9
19
19
-
27
27
36
6
10
9
8
One critical path – min. crash
cost per week on this critical
path $700 (activity E) – then
crash activity E by 2 weeks –
why 2 weeks?
H
J
36
41
41
44
-
-
-
41
-
36
41
44
5
3
3 – 5
Network Diagram - Crashing A C D Duration: 42 0 4 9 9 1000 4
Network Diagram - Crashing
A C
D Duration: 42
0
4
9
9
1000 4
-
1200 17
New Total Cost =
2
4
0
-
4
4
9
9
101500+(700x2) –
17
4
8
5
(2x1500) = $99,900
Start
0 0
0 B
E
F
G
0
9
17
25
25
500 6
700 17
-
2000 34
1
1
2
9
9
17
17
-
3
25
25
34
6
8
9
8
Now two critical paths:
H
J
34
39
39
42
-
-
ACDFGHJ & ACEFGHJ – min.
crash cost per week for both
paths $1000 (activity A) – then
crash activity A by 2 weeks.
34
-
39
-
39
42
5
3
3 – 6
Network Diagram - Crashing D Duration: 40 A 0 C 2 7 7 1000 2
Network Diagram - Crashing
D Duration: 40
A
0
C
2
7
7
1000 2
-
1200
15 New Total Cost =
0
4
15 99,900+(1000x2) –
0
-
2
2
7
7
2
8
(2x1500) = $98,900
5
Start
0 0
0 B
E
0
7
F
15
G
23 23
500 6
700 15
-
2000 32
1
2
1
7
7 1
15
15
-
23
23
32
6
8
9
8
Two critical paths: ACDFGHJ &
ACEFGHJ – STOP since min.
crash cost per week for both
paths ($1200+$700) (D & E)
greater than $1500 site cost.
H
32
J
37 37
40
-
-
32 -
37
37 -
40
5
3
3 – 7