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Lecture 8

The document discusses the Crashing Time Method in project management, detailing its advantages, disadvantages, and providing examples of project duration and costs. It includes calculations for optimum project duration and associated costs based on crashing various activities. The document emphasizes the importance of determining the least cost duration for project completion.

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0% found this document useful (0 votes)
12 views

Lecture 8

The document discusses the Crashing Time Method in project management, detailing its advantages, disadvantages, and providing examples of project duration and costs. It includes calculations for optimum project duration and associated costs based on crashing various activities. The document emphasizes the importance of determining the least cost duration for project completion.

Uploaded by

Osama Tahan
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 PDF, TXT or read online on Scribd
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Technical University of Middle Euphrates Engineering Management and Construction

Faculty of Technical Engineering in Najaf Equipment


Department of Building and Construction Lecture 8: Week 13 Crashing Time Method
Techniques Lecturer: Dr. Mohammed Ali Ahmed

____________________________________________________________________
____________________________________________________________________
Technical University of Middle Euphrates Engineering Management and Construction Equipment
Technical University of Middle Euphrates Engineering Management and Construction Equipment

Crashing time method, description, advantages


Faculty of Technical Engineering in Najaf
Faculty of Technical Engineering in Najaf and
Lecture 9: Crashing_2
Lecture 9: Crashing_2
disadvantages
Department of Building and examplesLecturer: Dr. Atheer Hilal Algiburi
and Construction Techniques
Department of Building and Construction Techniques Lecturer: Dr. Atheer Hilal Algiburi

Example 9-1: The table below shows the durations and costs of a small project. Overhead costs
Example 8-1:The table below shows the durations and costs of a small project. Overhead costs
Example 9-1:
of the project are $2000 per week. Find the optimum duration of the project and the associated
The
of thetable below
project showsperthe
are $2000 durations
week. Find theand costs of
optimum a small
duration project.
of the projectOverhead costs
and the associated
of the cost, then
project draw
are thethe
$2000 least cost network and the project cost-duration curve.
cost, then draw least per
cost week.
networkFind theproject
and the optimum durationcurve.
cost-duration of the project and the
associated cost, then draw the least cost network and the project cost-duration curve.

Normal Normal Crash Crash


Activity Normal Normal Crash Crash
Activity duration cost ($) duration cost ($)
duration cost ($) duration cost ($)
(weeks) (weeks)
(weeks) (weeks)
1-2 4 4000 2 12000
1-2 4 4000 2 12000
2-3 5 3000 2 7500
2-3 5 3000 2 7500
2-4 7 3600 5 6000
2-4 7 3600 5 6000
3-4 4 5000 2 10000
3-4 4 5000 2 10000

Sol/:
Sol./
Sol./
Duration (weeks) Cost ($) Days to Cost
Activity Duration (weeks) Cost ($) Days to
reduce Cost
slope
Activity reduce slope
Normal Crash Normal Crash (week) ($/week)
Normal Crash Normal Crash (week) ($/week)
1-2 4 2 4000 12000 2 4000
1-2 4 2 4000 12000 2 4000
2-3 5 2 3000 7500 3 1500
2-3 5 2 3000 7500 3 1500
2-4 7 5 3600 6000 2 1200
2-4 7 5 3600 6000 2 1200
3-4 4 2 5000 10000 2 2500
3-4 4 2 5000 10000 2 2500
∑ 15600
∑ 15600
13
13
4
4
7
7
4
0 4 4
0 4 1 9
4 9
1 4 2 5 3
1 2 5 3
3-4 4 2 5000 10000 2 2500
∑ 15600

13

7
4
0 4
9
1 4 2 5 3

Possible paths to execute the project: 1-2-4 = 11 weeks


Page 1 of 5
1-2-3-4 = 13 weeks

Critical path is 1-2-3-4


Project completion time = 13 weeks
Normal direct cost of the project = $15600
Total normal cost of the project = 15600 + 2000 × 13 = $41600

By crashing activity 2-3, 2 weeks, cost to pay = 1500 × 2 = $3000 Direct cost of the
project = 15600 + 3000 = $18600
Total cost of the project = 18600 + 2000 × 11 = $40600
1-2-4 = 11 weeks

1-2-3-4 = 11 weeks

By crashing both of activity 2-3 and activity 2-4, 1 week, cost to pay = 1500 + 1200
= $2700 Direct cost of the project = 18600 + 2700 = $21300
Total cost of the project = 21300 + 2000 × 10 = $41300
1-2-4 = 10 weeks

1-2-3-4 = 10 weeks
Optimum duration of the project completion 11 weeks

Total cost of the project associated with optimum duration is $40600 To draw the
cost-duration curve more points are required

By crashing both of activity 2-4 and activity 3-4, 1 week, cost to pay = 1200 + 2500
= $3700 Direct cost of the project = 21300 + 3700 = $25000
Total cost of the project = 25000 + 2000 × 9 = $43000
1-2-4 = 9 weeks

1-2-3-4 = 9 weeks

By crashing activity 1-2, 2 weeks, cost to pay = 4000 × 2 = $8000 Direct cost of the
project = 25000 + 8000 = $33000

2
By crashing activity 1-2, 2 weeks, cost to pay = 4000 × 2 = $8000
By crashing activity 1-2, 2 weeks, cost to pay = 4000 × 2 = $8000
Direct cost of the project = 25000 + 8000 = $33000
Direct cost of the project = 25000 + 8000 = $33000
Total cost of the project = 33000 + 2000 × 7 = $47000
Total cost of the project = 33000
Total cost + 2000
of the project × 7 = +$47000
= 33000 2000 × 7 = $47000
1-2-4 = 7 weeks
1-2-4 = 7 weeks
1-2-4 = 7 weeks
1-2-3-4 = 7 weeks
1-2-3-4 = 7 weeks1-2-3-4 = 7 weeks

$
$ $

$ $
$

(weeks)
(weeks)
4
4
7
47
4
1 4 2
4 3
1 2 3
3 3

Page 3 of 5
Page 3 of 5

3
Example 9-2: The network and cost data for activities of a simple project are illustrated below.
Example 8-2: cost of the project is $500 per week and the gain for early completion is $800 per
The indirect

The week. Determine the optimum duration of the project and the associated cost.
network and cost data for activities of a simple project are illustrated below. The
indirect cost of the project is $500 per week and the gain for early completion is $800
per week. Determine the optimum duration of the project and the associated cost.

Cost (US$)
Duration (Weeks)
Activity

Normal Crash Normal Crash


A 4 2 4000 7000
B 3 2 3000 4000
C 2 2 2000 2000
D 5 3 2000 5000
E 2 1 2000 4000
F 1 1 1000 1000
G 3 2 3000 8000
H 3 2 3000 5000
J 2 1 2000 3000

Sol/:

Page 4 of 5

4
Sol./

Cost ($) Cost slope


Duration (week) Crashing potential
Activity ($/Week)
(Week)

Normal Crash Normal Crash


A 4 2 4000 7000 2 1500
B 3 2 3000 4000 1 1000
C 2 2 2000 2000 — -
D 5 3 2000 5000 2 1500
E 2 1 2000 4000 1 2000
F 1 1 1000 1000 — -
G 3 2 3000 8000 1 5000
H 3 2 3000 5000 1 2000
J 2 1 2000 3000 1 1000
∑ 22000

Critical path is A-B-G = 10 weeks


Project completion time = 10 weeks
Critical path is A-B-G = 10 weeks
Normal direct cost of the project = $22000
Project completion time = 10 weeks
Normal direct cost of
Total normal costthe
of theproject
project = = $22000
22000 + 500 × 10 = $27000
Total normal cost of the project = 22000 + 500 × 10 = $27000
By crashing activity B, 1 weeks, cost to pay = $1000
By crashing activity B, 1 weeks, cost to pay = $1000
Direct cost of the project = 22000 + 1000 = $23000
Direct cost of the project = 22000 + 1000 = $23000
Total cost Total
of thecostproject
of the project = 23000 ++500
= 23000 ×9−
500 × 800
9 −× 1800
= $26700
× 1 = $26700

Critical paths arepaths


Critical A-B-G
are = 9 weeks
A-B-G = 9 weeks
A-H-J = 9 weeks
A-H-J = 9 weeks
By crashing activity A, 1 weeks, cost to pay = $1500
Direct costByofcrashing
the project
activity A,=1 23000
weeks, cost+to1500 = $24500
pay = $1500
Total cost Direct
of thecostproject = 24500 + 500 × 8 − 800 × 2 = $26900
of the project = 23000 + 1500 = $24500
Total cost of of
Optimum duration the project
the project 500 × 8 − 800 ×is
= 24500 +completion 2 =9$26900
weeks
Total cost of the project associated with optimum duration is $26700.
Optimum duration of the project completion is 9 weeks
Example 8-3:
Total cost of the project associated with optimum duration is $26700
The table below shows the durations and costs of a small project. Overhead costs of
the projectPage
are5 $100
of 5 per day. Find the optimum duration of the project and the
associated cost, then draw the least cost network and the project cost-duration curve.

5
Activity Normal Crash
Time (days) Cost ($) Time (days) Cost ($)
1-2 3 360 2 400
2-3 6 1440 4 1620
2-4 9 2160 5 2380
2-5 7 1120 5 1600
3-4 8 400 4 800
4-5 5 1600 3 1770
5-6 3 480 2 760
Programme Evaluation and Review Technique 15.19
Sol/:
Obviously the 1st course is to be preferred and the network. if now revised. would be
identical with the one of figure E.
Activity Normal Crash Crash Crash Cost
Often. however. management would be interested in the least total cost duration
Durationrather than ($)
Time Cost ($) Time Cost ($)
the least possible
(days) duration. (days) (days)
Now, suppose there is an indirect cost of Rs. 800 per day. What would then be the least cost
1-2 3 360 2 400 1 40
project duration for the example on hand ? The various cost data are tabulated below:
2-3 Duration 6 Direct1440
(Crashing) cost 4 Indirect 1620
cost 2Total cost 90
2-4 12 9 2160 0 5 96002380 4 9600 55
2-5 11 7 1120100 5 88001600 2 8900 240
3-4 10 8 400 600 4 8000 800 4 8600 100
4-5
9 5 1600
1200 3
72001770 2
8400 85
8 2100 6400 8500
5-6 3 480 2 760 1 280
Thus 9 days is the least toal cost duration and rationally the management should go in for
this unless high opportunity losses compel them to select a lower7560 duration project plan.
Illustration
Consider the following network and the table for a particular project which consists of 7
activities.

Figure 11
Possible(The
paths to execute
number the project:
indicated along the activity arrows are the normal duration.)

1-2-4-5-6= 20
Activity Noraml Crash Cost slopes
Times Cost Time Cost ∆T ∆ C ∆C/∆T
1-2-3-4-5-6= 25 CP (days) Rs. (days) Rs.
1–2 3 360 2 400 1 40 40
1-2-5-6= 13
2–3 6 1440 4 1620 2 180 90
2–4 9 2160 5 2380 4 220 55
Project completion
2–5 time7 = 25 1120
days 5 1600 2 480 240
3–4 8 400 4 80 4 400 100
4–5 5 1600 3 6 1770 2 170 85
5–6 3 480 2 760 1 280 280
7560 9330
Normal direct cost of the project = $7560
Normal indirect cost of the project= 100*25= $2500
Total normal cost of the project = 7560 + 2500= $10010
By crashing activity 1-2, 1 day, cost to pay = 40 × 1 = $40
Direct cost of the project = 7560+ 40 = $7600
1-2-4-5-6= 19
1-2-3-4-5-6= 24 CP
1-2-5-6= 12
Indirect cost of the project= 100 * 24= $2400
$ &/,5694(3(5+*9(:/;04,:(5++09,*;*6:;:-69;/,(*;0=0;0,:6-(7961,*;(9,:/6>5),36>
Total cost of the project = 7600 + 2400 = $10000
*;0=0;0,: &04, 6:;
!694(3 9(:/ !694(3 9(:/
A  
A  
A  
A   
A    
A     
A    
A   
A  
A     
Homework 8-1:
( 9(>;/,5,;>692+0(.9(4
) ,;,9405,;/,*90;0*(37(;/
The *
normal and crash times and direct costs for the activities of a project
05+;/,40504<4*6:;7961,*;:*/,+<3,0-;/,05+09,*;*6:;:(9,%:7,9>,,2 are shown
below:
Q5. The normal and crash times and direct costs for the activities of a project are shown below:
Activities Time Cost

Normal Crash Normal Crash


1–2 8 6 100 200
1–3 4 2 150 350
2– 4 2 1 50 90
2–5 10 5 100 400
3–4 5 1 100 200
4–5 1 1 80 100
(a) Draw the network diagram
(a)(b)Draw the network
Determine diagram
the critical path
(b) Determine the critical project
(c) Find the minimum cost path schedule if the indirect costs are Rs70 per day.
(c) Find the minimum cost project schedule if the indirect costs are Rs70 per day.

7
8

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