Cost Crashing

8/11/2019 Cost Crashing

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1.

From the following data;

a.

What is the least duration of the project in weeks?

b.

What is its least direct cost corresponding to this least duration?

c.

If the completion of the project is set at two week longer than the least

duration, what is the project’s optimum cost if the penalty is P3,000 per

week for delay and the indirect cost is P7,000 per week?

ACTIVITY TIME IN WEEKS COST COST TO

EXPEDITE/WEEKNORMAL CRASH NORMAL CRASH

1-2 9 6 10,000 16,000 1,500

1-3 8 4 4,000 8,000 1,000

1-4 6 3 2,400 4,800 1,000

2-4 5 2 2,000 3,500 500

2-5 7 4 2,100 2,700 200

3-4 4 2 3,200 3,800 300

3-6 6 3 1,800 2,400 200

4-5 3 1 4,500 5,500 500

4-7 6 2 1,800 2,600 200

5-7 4 2 3,200 5,600 1,200

5-8 8 4 2,400 4,400 500

6-7 5 3 1,000 1,760 380

6-9 5 2 2,400 2,800 2007-9 3 1 3,000 4,600 800

8-10 5 2 7,000 10,000 1,000

9-10 10 6 6,000 8,800 700

1 4 7

2

3

8

6

5

9



2.

From the following diagram and data;

a.


b.


c.

If the completion of the project is specified at two week longer than the

least duration, what is the project’s optimum cost if the penalty is P2,000

per week for delay and the indirect cost is P4,000 per week?



1-2 8 4 6,000 12,000 1,000

1-3 12 6 7,000 11,000 500

1-4 6 2 2,400 3,200 400

2-3 5 3 4,800 5,400 200

2-4 4 1 1,500 2,400 400

2-5 12 8 4,200 6,000 300

3-5 5 4 1,800 2,600 400

4-5 5 2 2,000 3,000 500

5-6 4 3 2,400 2,900 500

5-7 4 2 3,200 4,000 400

5-8 4 3 3,000 4,500 750

5-9 6 4 2,400 3,200 200

6-9 5 2 2,200 2,000 200

1

4

3

2

8

7

6

5 9



3.


a.


b.


c.

If the completion of the project is set at two week longer than the least

duration, what is the project’s optimum cost if the penalty is P2,000 per

week for delay and the indirect cost is P4,000 per week?



1-2 4 1 6,000 8,000 1,000

1-4 6 3 8,000 10,000 1,000

2-3 3 1 4,000 6,000 2,000

2-4 3 1 7,000 8,000 500

2-5 5 2 5,000 6,500 750

4-5 7 3 9,000 10,500 500

4-7 6 3 6,000 6,500 250

5-7 3 1 1,200 2,000 800

5-8 5 1 6,200 7,000 400

5-9 6 2 6,000 9,000 1,000

6-7 3 1 2,000 2,600 600

7-9 4 1 3,600 4,000 200

1

83

2 5

6

9

4 7



4.


a.


b.


c.

If the completion of the project is specified at two week longer than the

least duration, what is the project’s optimum cost if the penalty is P2,000

per week for delay and the indirect cost is P5,000 per week?



1-2 3 1 1,000 2,000 500

2-3 2 1 5,000 8,000 3,000

3-4 4 2 8,000 12,000 2,000

3-5 2 1 10,000 12,000 2,000

3-10 10 4 10,000 14,000 1,000

4-7 6 3 6,000 8,000 500

5-6 3 1 6,000 7,000 1,000

6-8 5 2 2,000 3,800 600

7-9 5 2 8,000 9,000 500

8-11 3 2 6,000 7,000 500

9-13 4 1 5,000 5,900 300

10-12 4 1 6,000 7,000 500

11-12 7 3 4,000 6,000 500

12-13 4 2 3,000 4,500 750

13-14 5 2 4,000 5000 100



5.

The project engineer constructing a grandstand for the palarong pambansa

expected to complete the project prior to the opening of the games. After

reviewing the construction time estimates, it appears that a certain amount of

crashing will be needed to ensure that the project is completed before the

target date.

From the given time and cost estimate, determine a minimum cost

crashing schedule that will shorten five weeks off the project length.

ACTIVITY PRECEDES NORMAL TIME NORMAL CRASHING COST

FIRST WEEK SECOND WEEK

A B 12 20,000 20,000

B K 14 12,000 12,000

C D,E,F 10 6,000 6,000

D G 17 20,000 22,000

E H 18 16,000 18,000

F I 12 12,000 15,000

G L 15 25,000 25,000

H M,N 8 --- ---

I J 7 30,000 ---

J N 12 25,000 25,000

K END 9 10,000 10,000

L END 3 --- ---

M END 11 40,000 ---

N END 8 20,000 20,000



6.

A construction project has indirect costs of P40,000 per week. The following

diagram shows the major activities and time. Determine the optimum time

cost crashing plan.

ACTIVITY CRASHING COSTS

FIRST WEEK SECOND WEEK THIRD WEEK

1-2

2-5

5-7

7-11

11-13

20,000

24,000

30,000

15,000

30,000

24,000

25,000

30,000

20,000

33,000

----

25,000

35,000

----

35,000

1-3

3-8

8-11

3-9

9-1212-13

12,000

----

40,000

3,000

2,00025,000

24,000

----

40,000

8,000

7,000----

28,000

----

40,000

10,000

10,000----

1-4

4-6

6-10

10-12

10,000

8,000

5,000

14,000

15,000

13,000

12,000

15,000

25,000

----

----

----

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Cost Crashing