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    Pamantasan NG Lungsod NG Maynila: Master of Engineering Management - Construction Management

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    Romen Real
    Crashing refers to taking costly measures like overtime to reduce an activity's duration below normal. Crashing multiple activities reduces a project's duration. The time-cost tradeoff method determines how much to crash activities to reduce the project duration to a desired time. Activities are best candidates for crashing if they are on the critical path, long, bottleneck activities, have low crashing costs, and occur early. Potential problems of crashing include reduced flexibility, increased risks, and higher costs.

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    Pamantasan NG Lungsod NG Maynila: Master of Engineering Management - Construction Management

    Uploaded by

    Romen Real
    70 views7 pages
    Crashing refers to taking costly measures like overtime to reduce an activity's duration below normal. Crashing multiple activities reduces a project's duration. The time-cost tradeoff method determines how much to crash activities to reduce the project duration to a desired time. Activities are best candidates for crashing if they are on the critical path, long, bottleneck activities, have low crashing costs, and occur early. Potential problems of crashing include reduced flexibility, increased risks, and higher costs.

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    PERT-CPM Crashing Method

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    Crashing Report

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    Crashing refers to taking costly measures like overtime to reduce an activity's duration below normal. Crashing multiple activities reduces a project's duration. The time-cost tradeoff method determines how much to crash activities to reduce the project duration to a desired time. Activities are best candidates for crashing if they are on the critical path, long, bottleneck activities, have low crashing costs, and occur early. Potential problems of crashing include reduced flexibility, increased risks, and higher costs.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    70 views7 pages

    Pamantasan NG Lungsod NG Maynila: Master of Engineering Management - Construction Management

    Uploaded by

    Romen Real
    Crashing refers to taking costly measures like overtime to reduce an activity's duration below normal. Crashing multiple activities reduces a project's duration. The time-cost tradeoff method determines how much to crash activities to reduce the project duration to a desired time. Activities are best candidates for crashing if they are on the critical path, long, bottleneck activities, have low crashing costs, and occur early. Potential problems of crashing include reduced flexibility, increased risks, and higher costs.

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    of 7

    PAMANTASAN NG LUNGSOD NG MAYNILA

    Graduate School of Engineering


    Master of Engineering Management Construction Management

    GEM 832 Project Planning and Control

    GROUP NO. 4 REPORTER NO. 2


    PERT-CPM CRASHING METHOD

    Prepared By:
    Engr. Romen P. Real
    Submitted to:
    Dr. Antonio V. Sobrevias, Jr.

    August 16, 2016

    Crashing an activity - refers to taking special costly measures to reduce the duration of an
    activity below its normal value. These special measures might include using overtime, hiring
    additional temporary help, using special time-saving materials, obtaining special equipment,
    etc.
    Crashing the project - refers to crashing a number of activities in order to reduce the
    duration of the project below its normal value.
    The CPM method of time-cost trade-offs - is concerned with determining how much (if
    any) to crash each of the activities in order to reduce the anticipated duration of the project to
    a desired value.
    The data necessary for determining how much to crash a particular activity are given by the
    time-cost graph for the activity. Figure 1 shows a typical time-cost graph. Note the two key
    points on this graph labeled Normal and Crash.

    The normal point on the time-cost graph for an activity shows the time (duration) and cost of
    the activity when it is performed in the normal way. The crash point shows the time and cost
    when the activity is fully crashed, i.e., it is fully expedited with no cost spared to reduce its
    duration as much as possible. As an approximation, CPM assumes that these times and costs
    can be reliably predicted without significant uncertainty.
    For most applications, it is assumed that partially crashing the activity at any level will give a
    combination of time and cost that will lie somewhere on the line segment between these two
    points.4 (For example, this assumption says that half of a full crash will give a point on this
    line segment that is midway between the normal and crash points.) This simplifying
    approximation reduces the necessary data gathering to estimating the time and cost for just

    two situations: normal conditions (to obtain the normal point) and a full crash (to obtain the
    crash point).
    Time/Cost Trade-off Analysis
    We might think that the total project costs will increase when we begin to crash activities.
    But, total project costs consist of both indirect (project-based) costs (PBC) and direct
    (activity-based) costs (ABC). Direct costs (ABC) go up when we crash activities in an effort
    to finish the project early. But, the indirect costs (PBC) go down if we finish the project early.
    Which Activities are the Best Candidates for Crashing?
    Any activity that is on the critical path
    Activities with relatively long durations
    Bottleneck activities (that appear on multiple critical paths)
    Activities with relatively low costs to crash
    Activities that are not likely to cause quality problems if crashed
    Activities that occur relatively early in the schedule and are labor intensive
    Options for Crashing Activities
    1. Adding Resources
    2. Outsourcing Project Work
    3. Overtime
    4. Establishing Core Project Team
    5. Temporary Fixes
    6. Fast-Tracking
    7. Critical Chain PM
    8. Brainstorming
    9. Reduce Scope
    10. Phasing Project Deliverables
    Potential Problems with Crashing
    1. Reduces flexibility and less margin for error. (Increased risk of failure to complete
    project on time.)
    2. Raises potential for poor quality
    3. Increases potential for staff burn-out, stress, and turnover
    4. Raises activity-based costs.
    5. May negatively affect other projects.

    6. May create unrealistic expectations for future projects.


    7. Hard to know true indirect costs.
    Time-Cost Tradeoff Heuristic
    1. Set each activity duration to its normal time.
    2. Determine the critical path(s) and project duration based on the current activity times.
    3. Calculate total direct costs and indirect costs for the current schedule.
    4. Chose an activity or activities that can be expedited to reduce project duration by one
    time unit. Use cost slopes and critical path information to guide your choice. If no
    further reduction in project duration is possible, go to step 5. Otherwise, go to step 2.
    5. Plot the project's direct and indirect costs for each possible duration. Select the
    duration that minimizes total costs.
    Example Problem
    The indirect cost of a project is P10,000 per week up to its duration. The project manager was
    furnished the following cost and time information.
    1. Determine an optimum crashing plan.
    2. Graph the total costs for the plan.

    Solution:
    1. Determine the path lengths and critical path.

    2. Rank the critical activities of Path A, B according to crashing costs.

    Activity B has the lower crashing cost, hence, it should be shortened by one week. This will
    reduce the indirect costs by:
    10,000 3,000 = 7,000 net savings
    At this point, path A, B and E, F will have the same length of 21 weeks, thus both will be
    critical path.
    3. Rank activities by crashing costs on the two critical path.

    Choose one activity on each path to crash. Say B on Activity A-B and F on Activity E-F:
    4,000 + 2,000 = 6,000 crashing costs
    10,000 6,000 = 4,000 net savings
    4. Verify which path might be critical. Path A-B and E-F would be 20 weeks to crash
    one week and C-D would still be 17 weeks.
    5. Again rank activities on the critical path.

    Crash B on Path A-B and E on Path E-F:


    4,000 + 5,000 = 9,000 crashing costs
    10,000 9,000 = 1,000 net savings
    6. At this point, no further improvement is possible. Both Path A-B and Path E-F has 19
    weeks and to shorten one more week from each path would mean another P8,000 for
    Activity A and P5,00 for Activity E or A total of P13,000 which exceeds the P10,000
    potential savings in direct costs.
    Summary of the result showing the length of the project after crashing N weeks:

    SUMMARY OF COSTS

    CRASHING SUMMARY
    In planning, crashing can pull your project into the delivery window.
    Once started, a late project can get pulled back in to schedule compliance.
    Crashing can increase the size of the critical core, thereby reducing flexibility.
    Capability in MS Project.

    References:
    F.S.Hiller and G.J. Lieberman, 2010: Introduction to Operations Research. McGraw-Hill
    Companies, Inc.
    http://www.slideshare.net/juliuscuaresma/crashing-and-cost-plan
    https://www.coursehero.com/file/11010700/Project-Crashing-Magnan/

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