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PROJECT CRASHING
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PROJECT MANAGEMENT What is a project?Any unique endeavor with
specific objectivesWith multiple activitiesWith defined precedent
relationshipsWith a specific time period for completionExamples?A
major event like a weddingAny construction projectDesigning a
political campaign
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PROJECT LIFE CYCLE
ConceptDevelopmentImplementationTermination
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NETWORK PLANNING TECHNIQUESProgram Evaluation & Review
Technique (PERT):Developed to manage the Polaris missile
projectMany tasks pushed the boundaries of science &
engineering (tasks duration = probabilistic)
Critical Path Method (CPM):Developed to coordinate maintenance
projects in the industryA complex undertaking, but individual tasks
are routine (tasks duration = deterministic)
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REDUCING PROJECT COMPLETION TIMEProject completion times may
need to be shortened because:Different deadlinesPenalty clausesNeed
to put resources on a new projectPromised completion datesReduced
project completion time is crashing*
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REDUCING PROJECT COMPLETION TIME CONT
Crashing a project needs to balanceShorten a project
durationCost to shorten the project durationCrashing a project
requires you to knowCrash time of each activityCrash cost of each
activityCrash cost/duration = (crash cost-normal cost)/(normal time
crash time)*
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REDUCING THE TIME OF A PROJECT (CRASHING)*
ActivityNormal Time (wk)Normal Cost ($)Crash TimeCrash Cost
($)Max. weeks of reductionReduce cost per
weekA48,000311,00013,000B630,000535,00015,000C36,00036,00000D624,000428,00022,000E1460,0001272,00026,000F55,00046,50011500G26,00026,00000H24,00024,00000I34,00025,00011,000J44,00026,40021,200K25,00025,00000
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CRASHING EXAMPLE: SUPPOSE THE NETSOL PROJECT MANAGER WANTS TO
REDUCE THE NEW PRODUCT PROJECT FROM 41 TO 36 WEEKS. Crashing Costs
are considered to be linearLook to crash activities on the critical
pathCrash the least expensive activities on the critical path first
(based on cost per week)Crash activity I from 3 weeks to 2 weeks Rs
1000Crash activity J from 4 weeks to 2 weeks Rs 2400Crash activity
D from 6 weeks to 4 weeks Rs 4000Recommend Crash Cost Rs 7400
Question: Will crashing 5 weeks return more in benefits than it
costs?*
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CRASHED NETWORK DIAGRAM *
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SUMMARYA project is a unique, one time event of some duration
that consumes resources and is designed to achieve an objective in
a given time period.Each project goes through a four-phase life
cycle: concept, Development, Implementation and termination.Two
network planning techniques are PERT and CPM. PERT uses
probabilistic time estimates. CPM uses deterministic time
estimates.PERT and CPM determine the critical path of the project
and the estimated completion time. On large projects, software
programs are available to identify the critical path. *
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To reduce the length of the project (crashing), we need to know
the critical path of the project and the cost of reducing
individual activity times. Crashing activities that are not on the
critical path typically do not reduce project completion time.*
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DISCUSSION*
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