OPERATIONS MANAGEMENT

OSCM 302

PROJECT CRASHING
 PROJECT CRASHING

needrecorsec important
It is common to face the following situations:
 The project is behind schedule Projecttake3yearsandyouhavetosubmited
crashed
now
 The completion time has been moved forward

Shortening the duration of the project

is called project crashing

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 FACTORS TO CONSIDER WHEN CRASHING A
what PROJECT

1. The amount by which an activity is crashed is, in

fact, permissible (allowable). crashitforcertiantime
2. Taken together, the shortened activity durations
will enable us to finish the project by the due date.
3. The total cost of crashing is as small as possible.

mosteffective
way
We want to find the cheapest way of crashing
the project to the desired date.

3
 PROJECT CRASHING AND
TIME-COST TRADE-OFF OVERVIEW

• Project duration can be reduced by assigning more

resources to project activities.
• However, doing this increases project cost.
• Decision is based on analysis of trade-off between
time and cost.
• Project crashing is a method for shortening project
duration by reducing one or more critical activities to
a time less than normal activity time. Try

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 STEPS IN PROJECT CRASHING

1. Compute the crash cost per time period.

Crash cost (Crash cost – Normal cost)

per period =
(Normal time – Crash time)

2. Using current activity times, find the critical path

and identify the critical activities.

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 STEPS IN PROJECT CRASHING
later

3. If there is only one critical path, then select the

activity on this critical path that:
(a) Can still be crashed, and
(b) Has the smallest crash cost per period.
• If there is more than one critical path, then select
one activity from each critical path such that:
(a) Each selected activity can still be crashed, and
(b) The total crash cost of all selected activities is the smallest.
• Note that the same activity may be common to
more than one critical path.

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 STEPS IN PROJECT CRASHING

4. Update all activity times.

If the desired due date has been reached, stop. If

not, return to Step 2.

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 EXAMPLE 1: PROJECT CRASHING

Develop a solution for the following project problem.

shortage
Normal Normal Cost Crash Time
Act Predecessor Crash Cost
Time (total)
shortage (Weeks)
A - 2 $22,000 1 $22,750
B - 3 $30,000 1 $34,000
C A 2 $26,000 1 $27,000
D A, B 4 $48,000 2 $50,000
E C 4 $56,000 2 $58,000
F C 3 $30,000 2 $30,500
G D, E 5 $80,000 2 $84,500
H F, G 2 $16,000 1 $19,000

a) Draw the project network with Normal time. What is the project completion date? And
Cost?
b) Find the crash cost per week for each activity. crashcost whichactivityischeeper
tocrash
c) The required new due data to complete the project is 13 weeks. How much it will cost to
meet the new due date? And what is the new total cost for the project.
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 EXAMPLE 1: PROJECT CRASHING

Step 1: Compute the crash cost per time period.

Predecessor Normal Normal Cost Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

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 EXAMPLE 1: PROJECT CRASHING

Step 1: Compute the crash cost per time period.

lowest
costthe
Predecessor Normal Normal Cost Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 1 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

a) Draw the project network with Normal time. What is the project completion date? And
Cost?.

Total Project cost

= 22000+30000+26000+48000+56000+30000+80000+16000= 308,000
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 EXAMPLE 1: PROJECT CRASHING

A C F

2 2 3

Start E H End

0 4 2 15

B D G

3 4 5

1) A-C-F-H 2) A-C-E-G-H 4) B-D-G-H

Exp. Time = 2+2+3+2=9 Exp. Time = 2+2+4+5+2=15 Exp. Time = 3+4+5+2=14
3) A-D-G-H
Exp. Time = 2+4+5+2=13
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 EXAMPLE 1: PROJECT CRASHING

A C F

2 2 3

Start E H End

0 4 2 15

B D G

3 4 5

1) A-C-F-H 2) A-C-E-G-H criticalpath 4) B-D-G-H

Exp. Time = 2+2+3+2=9 Exp. Time = 2+2+4+5+2=15 Exp. Time = 3+4+5+2=14
3) A-D-G-H
Exp. Time = 2+4+5+2=13
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 EXAMPLE 1: PROJECT CRASHING

A C F

2 2 3

Start E H End

0 4 2 15

B D G

3 4 5
a) Draw the project network with Normal time. What is the project completion date? And
Cost?. forall
project completion date is 15 weeks, total project cost is $30,800

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 EXAMPLE 1: PROJECT CRASHING

The demand for the last seven months of Dior perfume “POISON girl”
was:
Predecessor Normal Normal Cost Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

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 EXAMPLE 1: PROJECT CRASHING

A C F
Wehavetwo
criticalpath
1 2 3

Start E H End

0 4 2 14

Thereare 2things
activity
B D G 1 crashthe
common

2crashone
3 4 5

1) A-C-F-H 2) A-C-E-G-H 4) B-D-G-H

Exp. Time = 1+2+3+2=8 Exp. Time = 1+2+4+5+2=14 Exp. Time = 3+4+5+2=14
3) A-D-G-H
Exp. Time = 1+4+5+2=12
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 EXAMPLE 1: PROJECT CRASHING

A C F

1 2 3

Start E H End

0 4 2 14

B D G

3 4 5
16
1) A-C-F-H 2) A-C-E-G-H
critical2052 5
4) B-D-G-H
Exp. Time = 1+2+3+2=8 Exp. Time = 1+2+4+5+2=14 Exp. Time = 3+4+5+2=14
3) A-D-G-H
Exp. Time = 1+4+5+2=12
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 EXAMPLE 1: PROJECT CRASHING

Predecessor
If
Normal
mn
Normal Cost
lgijfggdwddssdi0i
Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

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 EXAMPLE 1: PROJECT CRASHING

A C F

1 2 3

Start E H End

0 4 2 13

B D G

3 4 4

1) A-C-F-H 2) A-C-E-G-H 4) B-D-G-H

Exp. Time = 1+2+3+2=8 Exp. Time = 1+2+4+4+2=13 Exp. Time = 3+4+4+2=13
3) A-D-G-H
Exp. Time = 1+4+4+2=11
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 EXAMPLE 1: PROJECT CRASHING

The required new due data to complete the project is 13

weeks. How much it will cost to meet the new due date?
And what is the new total cost for the project.
• To crash the project down to 13 weeks:
• We crash A by 1 week which will cost $750
• We crash G by 1 week which will cost $1500
• Total crashing cost : 750 +1500 = $ 2250
The new total cost to complete the project in 13 days is
$2,250 + $308,000 = 310,250

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 EXAMPLE 2: PROJECT CRASHING

Develop a solution for the following project problem.

Pred.
Crash Crash Cost Normal Time Normal
Act Time (total) (Weeks) Cost
A - 4 $800 7 $500
B - 2 $350 3 $200
C A,B 4 $900 6 $500
D C 1 $500 3 $200
E B 1 $550 2 $300
a) Draw the project network with Normal time. What is the project completion
date? And cost?
b) crash cost per day for each activity.
c) Reduce the project cycle time by five weeks (Crash the network by five weeks).
And identify the new critical path.
d) Find the new cost of completing the project (after crashing).
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 EXAMPLE 2: PROJECT CRASHING

Develop a solution for the following project problem.

Pred. Tofindcriticalpath
Crash Crash Cost Normal Time Normal Crash cost
Act Time (total) (Weeks) Cost per day
e week
A - 4 $800 7 $500 100
B - 2 $350 3 $200 150
C A,B 4 $900 6 $500 200
D C 1 $500 3 $200 150
E B 1 $550 2 $300 250
a) Draw the project network with Normal time. What is the project completion
date? And cost? 16weeks
b) crash cost per me
day for each activity.
c) Reduce the project cycle time by 5 weeks (Crash the network by five weeks).
And identify the new critical path.
d) Find the new cost of completing the project (after crashing).
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 EXAMPLE 2: PROJECT CRASHING

criticalpath

300
2 130
ciiiijii.ee crash 2

Normal Cost $1,700 in 16 weeks; Critical path A, C, D

Crash A by 3 and D by 2 , Thecostofrealcriticalpath
Total Cost after crashing 1700 + (3*100) + (2*150) = $ 2,300 in 11
weeks; New Critical path A, C, D
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 PRACTICE

• What is the minimum cost of crashing the

following project by 3 days?

Activity Predecessor Normal T Crash T Normal Crash

(days) (days) Cost $ Cost $

A - 6 5 900 1,000
B - 8 6 300 400
C - 4 3 500 600
D A 5 3 900 1,200
E C 8 5 1,000 1,600

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 PRACTICE

• What is the minimum cost of crashing the

following project by 3 days?

Crash
Normal T Crash T Normal Crash
Activity Predecessor cost per
(days) (days) Cost $ Cost $
day
A - 6 5 900 1,000 100
B - 8 6 300 400 50
C - 4 3 500 600 100
D A 5 3 900 1,200 150
E C 8 5 1,000 1,600 200

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Questions