Project Crashing

Project Crashing

• Can we cut short its project completion time?

If so, how!

Yes, the project duration can be reduced by assigning more resources

to project activities. But, doing this would somehow increase our project
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.
Trade-off
• An attempt to “crash” some “critical” events by allocating more
resources to them, so that the time of one or more critical activities is
reduced to a time that is less than the normal activity time.
 Cc C (Crashing point)
• Direct Cost: cost of materials,
equipment, labor.
  𝑪 𝒄 −𝑪 𝒏 ∆𝑪
• Normal point: normal activity time 𝑪𝒐𝒔𝒕 𝒔𝒍𝒐𝒑𝒆=

Direct Cost
=
𝑻 𝒏− 𝑻 𝒄 ∆ 𝑻
• Crash time: minimum activity
duration to which an activity can
be compressed by increasing the (Normal point)
resources and hence by
increasing the direct cost. Cn N

• Cost slope: the slope of the line

Tc Activity Duration Tn
gives the increase in direct cost
per unit for expediting the activity
• Indirect costs
• Fixed indirect costs: general and administrative costs, license fee, insurance,
taxes
• Variable indirect costs: overhead expenditure, supervision, interest on capital,
depreciation, penalty for delays

• Total project cost = total direct costs + total indirect costs

 Indirect Costs
l Co sts
Tota

o sts
Indirect Cost

ec t C
Indir

Total Cost
Variable
Direct Costs
Fixed

Time Project Duration

Time-cost trade-off procedure
•1.  Draw the project network, Identify the critical path and calculate the
normal cost of the project.
2. Determine the cost slope for each activity

The cost slope represents the additional cost incurred per unit time (saved) in reducing
the duration of the activity.
3. Crash the critical activity with minimum cost slope. Calculate new direct
cost by adding the additional cost of crashing the normal cost.
4. As the crashing is done, it is possible some non-critical activities also
become critical.
Thus we may have multiple or parallel critical paths, if so, choose an activity from each
such path for crashing
Time-cost trade-off procedure (cont. …)
5. Of the various available combinations, select the one with least cost.
6. Revise the network by adjusting the time and cost of the crashed
activity/activities. Identify the critical path(s) again.
7. Continue the process till no more crashing is possible. This gives the
crash time. Calculate the associated total cost (by adding the normal
direct cost, additional crash cost and indirect cost). This is the
corresponding crash cost
8. Prepare the total cost table corresponding to different project durations.
9. The minimal total cost is called the optimum cost and the associated
time is called the optimum time
 Project Crashing
Normal Crash
Activity Time Cost Time Cost
(days) (Rs.) (days) (Rs.)
1-2 9 640 6 700

1-3 8 500 5 575 1. Draw the network and identify critical path
2. Crash the network fully to find out minimum
1-4 15 400 10 550 duration
3. If indirect cost are Rs. 60 per day. Determine
2-4 5 100 3 120 time-cost trade off for the project

3-4 10 200 6 260

4-5 2 100 1 140

 2
5(
3)
)
9 (6

1 4 5
15 (10) 2 (1)

8(
6) 6)
0 (
1
3

Paths:
1 – 2 – 4 – 5 = 16 days
1–4–5 = 17 days
1 – 3 – 4 – 5 = 20 days
 Normal Crash
Activity
Time Cost Time Cost
2 5( (days) (Rs.) (days) (Rs.)
3)
) 1-2 9 640 6 700
9 (6
1-3 8 500 5 575

1 4 5 1-4 15 400 10 550

15 (10) 2 (1)
2-4 5 100 3 120

8( ( 6) 3-4 10 200 6 260

6) 10
3 4-5 2 100 1 140

  𝑪 𝒄 −𝑪 𝒏
𝑪𝒐𝒔𝒕 𝒔𝒍𝒐𝒑𝒆=
Paths Crash Time 𝑻 𝒏− 𝑻 𝒄
1 – 2 – 4 – 5 = 16 days 6+3+1 = 10 days
1–4–5 = 17 days 10+1 = 11 days
1 – 3 – 4 – 5 = 20 days 5+6+1 = 12 days
 Normal Crash
Activity
Time Cost Time Cost
2 5( (days) (Rs.) (days) (Rs.)
3)
) 1-2 9 640 6 700
9 (6
1-3 8 500 5 575

1 4 5 1-4 15 400 10 550

15 (10) 2 (1)
2-4 5 100 3 120

8( ( 6) 3-4 10 200 6 260

6) 10
3 4-5 2 100 1 140

  𝑪 𝒄 −𝑪 𝒏
𝑪𝒐𝒔𝒕 𝒔𝒍𝒐𝒑𝒆=
Paths Crash Time 𝑻 𝒏− 𝑻 𝒄
1 – 2 – 4 – 5 = 16 days 6+3+1 = 10 days
1–4–5 = 17 days 10+1 = 11 days
1 – 3 – 4 – 5 = 20 days 5+6+1 = 12 days

Max crash time

 Normal Crash
Cost
Activity
Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3)
)
9 (6 1-2 9 640 6 700 20

1-3 8 500 5 575 25

1 4 5
15 (10) 2 (1) 1-4 15 400 10 550 30

2-4 5 100 3 120 10

8( ( 6)
6) 10 3-4 10 200 6 260 15
3
4-5 2 100 1 140 40

Normal Cost 1940

Overhead Cost = Rs. 60/day
Paths Crash Time
1 – 2 – 4 – 5 = 16 days 6+3+1 = 10 days
1–4–5 = 17 days 10+1 = 11 days
1 – 3 – 4 – 5 = 20 days 5+6+1 = 12 days

Project Duration = 20 days

Total normal cost = 1940 + 20x60 = Rs. 3140
 Normal Crash
Cost
Activity
Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3),
20 10
6) , 1-2 9 640 6 700 20
9(
1-3 8 500 5 575 25
1 4 5
15 (10), 30 2 (1), 40 1-4 15 400 10 550 30

2-4 5 100 3 120 10

8( 15
5), (6), 3-4 10 200 6 260 15
2 5 10
3
4-5 2 100 1 140 40

Normal Cost 1940

Paths Crash Time 1st Crashing: Reduce the time only for the critical activities
CP : 1 – 3 – 4 – 5
1 – 2 – 4 – 5 = 16 days 6+3+1 = 10 days CA : 1 – 3, 3 – 4, 4 – 5
1–4–5 = 17 days 10+1 = 11 days CS : 25, 15, 40
1 – 3 – 4 – 5 = 20 days 5+6+1 = 12 days opt for the least slope (activity 3-4)

Activity 3 – 4 crashed by 3 days

Project Duration = 20 days
New Cost = Previous cost + Crash Cost – Overhead Cost
Total normal cost = 1940 + 20x60 = Rs. 3140
= 3140 + 3x15 – 3x60 = Rs. 3005
CP : Critical Path; CA : Critical Activities; CS: Cost Slope
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
5 4-5 2 100 1 140 40
8(
5), ,) 1
2 0 (6 Normal Cost 1940
5 3 1
7
 2nd Crashing: Reduce the time only for the critical activities
CP : 1 – 4 – 5 1–3–4–5
CA : 1-4, 4-5 1-3, 3-4, 4-5
Paths Crashed path Time Common Activities
1) 4-5
1 – 2 – 4 – 5 = 16 days 16 Combination of activities
1–4–5 = 17 days 17 2) 1-4, 1-3
1 – 3 – 4 – 5 = 20 days 17 3) 1-4, 3-4
opt for the least slope (activity 4-5)
Total normal cost = Rs. 3005
Activity 4-5 crashed by 1 day
New Cost = Previous cost + Crash Cost – Overhead Cost
CP : Critical Path; CA : Critical Activities; CS: Cost Slope = 3003 + 1x40 – 1x60 = Rs. 2985
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
5 4-5 2 100 1 140 40
8(
5), ,) 1
2 0 (6 Normal Cost 1940
5 3 1
7

Paths Crashed path Time

1 – 2 – 4 – 5 = 16 days 16
1–4–5 = 17 days 17
1 – 3 – 4 – 5 = 20 days 17

Total normal cost = Rs. 2985

Activity 4-5 crashed by 1 day
CP : Critical Path; CA : Critical Activities; CS: Cost Slope
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
1
5 4-5 2 100 1 140 40
8(
5), ,) 1
2 0 (6 Normal Cost 1940
5 3 1
7
  3rd Crashing: Reduce the time only for the critical activities
CP : 1 – 4 – 5 1–3–4–5
CA : 1-4, 4-5 1-3, 3-4, 4-5
Paths Crashed path Time Common Activities
1) 4-5 (Crashed Completely)
1 – 2 – 4 – 5 = 16 days 16 15 Combination of activities
1–4–5 = 17 days 17 16 2) 1-4, 1-3
1 – 3 – 4 – 5 = 20 days 17 16 3) 1-4, 3-4
opt for the least slope (activity 1-4, 3-4)
Total normal cost = Rs. 2985
Activity 1-4, 3-4 crashed by 1 day
New Cost = Previous cost + Crash Cost – Overhead Cost
CP : Critical Path; CA : Critical Activities; CS: Cost Slope = 2985 + 1x45 – 1x60 = Rs. 2970
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
1
5 4-5 2 100 1 140 40
8(
5), ,) 1
2 0 (6 Normal Cost 1940
5 3 1
7

Paths Crashed path Time

1 – 2 – 4 – 5 = 16 days 16 15
1–4–5 = 17 days 17 16
1 – 3 – 4 – 5 = 20 days 17 16

Total normal cost = Rs. 2970

Activity 1-4, 3-4 crashed by 1 day
CP : Critical Path; CA : Critical Activities; CS: Cost Slope
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
14 1
5 4-5 2 100 1 140 40
8(
5), ,) 1
2 0 (6 Normal Cost 1940
5 3 1
7
6   4th Crashing: Reduce the time only for the critical activities
CP : 1 – 2 – 4 – 5 1–4–5 1–3–4–5
CA : 1-2,2-4,4-5 1-4, 4-5 1-3, 3-4, 4-5
Paths Crashed path Time Combination of activities
1) 1-2, 1-4, 1-3
1 – 2 – 4 – 5 = 16 days 16 15 15 2) 2-4, 1-4, 1-3
1–4–5 = 17 days 17 16 15 opt for the least slope (activity 2-4, 1-4, 1-3)
1 – 3 – 4 – 5 = 20 days 17 16 15
Activity 2-4, 1-4, 1-3 crashed by 2 days
New Cost = Previous cost + Crash Cost – Overhead Cost
Total normal cost = Rs. 2970
= 2970 + 2x65 – 2x60 = Rs. 2980
Activity 1-4, 3-4 crashed by 1 day
CP : Critical Path; CA : Critical Activities; CS: Cost Slope
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5( (days) (Rs.) (days) (Rs.)
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
14 1
5 4-5 2 100 1 140 40
8(
5), ,) 1
2 0 (6 Normal Cost 1940
5 3 1
7
6

Paths Crashed path Time

1 – 2 – 4 – 5 = 16 days 16 15 15
1–4–5 = 17 days 17 16 15
1 – 3 – 4 – 5 = 20 days 17 16 15

Total normal cost = Rs. 2980

Activity 2-4,1-4, 1-3 crashed by 2 days
CP : Critical Path; CA : Critical Activities; CS: Cost Slope
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
3 (days) (Rs.) (days) (Rs.)
2 5(
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
14 12 1
5 4-5 2 100 1 140 40
8(
5), ,) 1
6 25 0 (6 Normal Cost 1940
3 1
7
6   5th Crashing: Reduce the time only for the critical activities
CP : 1 – 2 – 4 – 5 1–4–5 1–3–4–5
CA : 1-2,2-4,4-5 1-4, 4-5 1-3, 3-4, 4-5
Paths Crashed path Time Combination of activities
1) 1-2, 1-4, 1-3
1 – 2 – 4 – 5 = 16 days 16 15 15 13 opt for the least slope (activity 1-2, 1-4, 1-3 )
1–4–5 = 17 days 17 16 15 13
1 – 3 – 4 – 5 = 20 days 17 16 15 13 Activity 1-2, 1-4, 1-3 crashed by 1 day
New Cost = Previous cost + Crash Cost – Overhead Cost
= 2980 + 1x75 – 1x60 = Rs. 2995
Total normal cost = Rs. 2980
Activity 2-4,1-4, 1-3 crashed by 2 days
CP : Critical Path; CA : Critical Activities; CS: Cost Slope
 Normal Crash
Cost
Activity Time Cost Time Cost Slope
3 (days) (Rs.) (days) (Rs.)
2 5(
3), 1-2 9 640 6 700 20
20 10
6) ,
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
14 12 1
5 4-5 2 100 1 140 40
8(
5), ,) 1
6 25 0 (6 Normal Cost 1940
3 1
7
6

Paths Crashed path Time

1 – 2 – 4 – 5 = 16 days 16 15 15 13
1–4–5 = 17 days 17 16 15 13
1 – 3 – 4 – 5 = 20 days 17 16 15 13

Total normal cost = Rs. 2980

CP : Critical Path; CA : Critical Activities; CS: Cost Slope

 Normal Crash
Cost
Activity Time Cost Time Cost Slope
2 5 (3 (days) (Rs.) (days) (Rs.)
3),
8 1 1-2 9 640 6 700 20
) , 20 0
6
9( 1-3 8 500 5 575 25
1-4 15 400 10 550 30
1 4 5 2-4 5 100 3 120 10
15 (10), 30 2 (1), 40 3-4 10 200 6 260 15
14 12 11 1
8( 15 4-5 2 100 1 140 40
5), 6) ,
6 5 25 ( Normal Cost 1940
3 10
7
6

Paths Crashed path Time Project

20 17 16 15 13 12
1 – 2 – 4 – 5 = 16 days 16 15 15 13 12 Duration
1–4–5 = 17 days 17 16 15 13 12 Cost 3140 3005 2985 2970 2980 2995
1 – 3 – 4 – 5 = 20 days 17 16 15 13 12
1. Optimum duration = 15 days
2. Corresponding cost = Rs. 2970
Activity 1-2, 1-4, 1-3 crashed by 1
3. Minimum duration = 12 days
day
4. Corresponding cost = Rs. 2995
 Problem 2
Normal Crash
Activity
Time Cost (Rs) Time Cost (Rs)
(Days) (Days)
1-2 6 60 4 100
1. Indirect cost per day is Rs. 10.
2. Draw the network and identify critical path
1-3 4 60 2 200
3. Crash the network fully to find out minimum duration
2-4 5 50 3 150

2-5 3 45 1 65

3-4 6 90 4 200

4-6 8 80 4 300

5-6 4 40 2 100

6-7 3 45 2 80