Crashing a Project It is often possible to decrease the overall time to complete a project by decreasing the duration of particular activities. This may involve cost. The most important activities to reduce are those in the critical path. When we reduce the duration of activities in the critical path by crashing the project, we will improve the project completion time and it may be that the critical path for the project is changed. Example 1 1. Complete a forward & backward scan and find Earliest Completion Time and Critical Path. Activity A B C D E F G H J K Normal completion time (days) 10 5 3 5 4 6 6 7 5 4 Crash time (days) 8 5 2 4 4 5 4 5 5 3 Cost of crashing per day ($) 400 400 600 500 200 300 400 K G A B D C H F E 2. Crash the project so it is completed in the minimum time. a. What is the new Earliest Completion Time? b. What is the cost to attain this ECT? TMI / DBE 1 J Crashing a Project Example 2 1. Complete a forward & backward scan and find earliest completion time. E, 2 B, 3 A, 3 F, 3 C, 5 H, 4 J, 2 G, 4 D, 7 2. Some of the activities can be reduced in time by using more workers. The table below shows these activities, the additional cost of each day saved and the maximum number of days by which the activity can be reduced. Activity C F G Cost ($/day) 200 500 100 Maximum reduction (days) 2 2 1 What is the shortest time in which the project can now be completed? 3. The company receives a bonus of $300 for each day saved. Complete the table below outlining the benefits of reducing the time for completion of the project. Project time (days) 17 16 15 14 Total cheapest costs ($) 0 200 Activities reduced in time C Total bonus paid ($) 0 300 C, F 4. Describe the option from Q3 that results in the greatest saving. TMI / DBE 2 Total savings 0 100 0 Crashing a Project Example 3 A company is setting up in new offices. Their activities for this project are outlined in the table: Activity Description A B Plan office layout C D E F G H I Plan computer requirements Order office furniture Investigate Network Infrastructure Install network infrastructure Order computer hardware Install Furniture Install computer hardware Install software and test Duration (days) 7 5 Predecessors - Cost per Day ($) 300 400 Possible reductions 2 2 5 3 A B 0 400 2 1 5 D 300 3 7 2 4 B C E, F 200 0 400 3 0 1 2 H 0 0 a. Construct a network diagram. b. Conduct a forward and backward scan, establish the critical path, project time and floats. CRITICAL PATH – PROJECT TIME – FLOATS: TMI / DBE 3 Crashing a Project c. The last two columns in the original table show activities whose duration can be reduced and the cost per day of doing this. i. What is the minimum time for completion of the project if all possible reductions can be made? Path No. 1 2 3 The paths in the network are: A–C–G B–F–H–I B-D–E–H-I ii. Length Length if all reductions made. What is the minimum cost for crashing the project? d. The company wants to spend a maximum of $2000 to crash the project. Which activities should be reduced and what is the new completion time? TMI / DBE 4