Eleventh Edition

Chapter 7

Project Management

Project crashing
example 2

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Remember that:

• Total project costs

• = direct costs + indirect cost + penalty costs

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Example about crashing

Do crashing for the following project activities

considering that the indirect cost per week is $200.

Find the optimal crashed project completion time.

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Activity IPA NT CT NC CC

1-2 7 4 700 850

1-3 5 3 500 700
1-4 8 5 600 1200
2-5 9 7 800 1250
3-5 5 3 700 1000
3-6 6 5 1100 1300
4-6 7 5 1200 1450
5-7 2 1 400 500
6-7 3 2 500 850
Total

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Activity IPA NT CT NC CC Crash Cost
limit slope
1-2 7 4 700 850 3 50
1-3 5 3 500 700 2 100
1-4 8 5 600 1200 3 200
2-5 9 7 800 1250 2 225
3-5 5 3 700 1000 2 150
3-6 6 5 1100 1300 1 200
4-6 7 5 1200 1450 2 125
5-7 2 1 400 500 1 100
6-7 3 2 500 850 1 350
Total 6500

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Draw the network

9
2 5
7 2
5

1 3
5 7
6
8
4
3
6
7

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Step 1: now what is the critical path:
Path : time
1 – 2- 5- 7 18 CP

1 -3 – 5 -7 12

1- 3- 6 – 7 14
1- 4- 6-7 18 CP
(2 critical path since it has the largest duration)

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• Now normal project completion time = 18 weeks
 project direct costs = $ 6500
Indirect costs = (200$ /week) * 18 weeks =
$ 3600
Penalty cost = zero

So total project cost = 6500 + 3600 = $ 10100

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now do crashing on the activities of the critical path:
CP critical crash limit Cost slope
activity
1- 2-5-7 1-2 3 50 Min cost
You can crash
by 1 week
2-5 2 225
5-7 1 100

1-4-6-7 1-4 3 200

4-6 2 125 Min cost
You can crash
by 1 week

6-7 1 350

now go and update the table again

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• FORM the following table

Normal 18
duration

18 17

Added cost 175

Direct cost 6500 6675

Indirect cost 3600 3400

Total cost 10100 10075

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Draw the updated network and find the C.P

9
2 5
6 2
5

1 3
5 7
6
8
4
3
6
6

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Path : time
1 – 2- 5- 7 17 CP

1 -3 – 5 -7 12

1- 3- 6 – 7 14
1- 4- 6-7 17 CP
(2 critical path since it has the largest duration)

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Again do crashing on the CP

CP critical crash limit Cost slope

activity
1- 2-5-7 1-2 2 50 Least cost
Reduce by 1
week
2-5 2 225
5-7 1 100

1-4-6-7 1-4 3 200

4-6 1 125 Least cost
Reduce by 1
week
6-7 1 350

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Update the table again
Normal 18
duration

18 17 16

Added cost 175 175

Direct cost 6500 6675 6850

Indirect cost 3600 3400 3200

Total cost 10100 10075 10050

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Draw the updated network and find the C.P

9
2 5
5 2
5

1 3
5 7
6
8
4
3
6
5

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Again find the C.P
Path : time
1 – 2- 5- 7 16 CP

1 -3 – 5 -7 12

1- 3- 6 – 7 14
1- 4- 6-7 16 CP
(2 critical path since it has the largest duration)

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Again do crashing on the CP

CP critical crash limit Cost slope

activity
1- 2-5-7 1-2 1 50 Least cost
Reduce by 1
week
2-5 2 225
5-7 1 100

1-4-6-7 1-4 3 200 Crash here,

by 1 week
4-6 125 Cannot crash
0 here as crash
limit = zero
6-7 1 350

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Update the table again
Normal 18
duration

18 17 16 15

Added cost 175 175 250

Direct cost 6500 6675 6850 7100

Indirect cost 3600 3400 3200 3000

Total cost 10100 10075 10050 10100

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Draw the updated network and find the C.P

9
2 5
4 2
5

1 3
5 7
6
7
4
3
6
5

Here total cost = 10100 > 10050 , so stop crashing as

we achieve the optimal value.
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