OPERATIONS MANAGEMENT

OPIM 330

CHAPTER 8-C: PROJECT CRASHING

Dr. ABDULAZIZ ALMAKTOOM

E-MAIL: [email protected]
 PROJECT CRASHING

It is not uncommon to face the

following situations:
 The project is behind schedule
 The completion time has been moved
forward

Shortening the duration of the project

is called project crashing

CHAPTER: 8-C 2
 FACTORS TO CONSIDER WHEN CRASHING A
PROJECT

 The amount by which an activity is crashed is, in

fact, permissible
 Taken together, the shortened activity durations
will enable us to finish the project by the due date
 The total cost of crashing is as small as possible

We want to find the cheapest way of crashing

the project to the desired date

CHAPTER: 8-C 3
 PROJECT CRASHING AND
TIME-COST TRADE-OFF OVERVIEW

■Project duration can be reduced by assigning more

resources to project activities.
■However, doing this increases project cost.
■Decision is based on analysis of trade-off between time
and cost.
■Project crashing is a method for shortening project
duration by reducing one or more critical activities to a
time less than normal activity time.

CHAPTER: 8-C 4
 STEPS IN PROJECT CRASHING

1. Compute the crash cost per time period.

Crash cost (Crash cost – Normal cost)

per period =
(Normal time – Crash time)

2. Using current activity times, find the critical path

and identify the critical activities

CHAPTER: 8-C 5
 STEPS IN PROJECT CRASHING

3. If there is only one critical path, then select the

activity on this critical path that
(a) can still be crashed, and
(b) has the smallest crash cost per period.
• If there is more than one critical path, then select
one activity from each critical path such that
(a) each selected activity can still be crashed, and
(b) the total crash cost of all selected activities is the
smallest.
• Note that the same activity may be common to
more than one critical path.

CHAPTER: 8-C 6
 STEPS IN PROJECT CRASHING

4. Update all activity times. If the desired due date

has been reached, stop. If not, return to Step 2.

CHAPTER: 8-C 7
 EXAMPLE 1: PROJECT CRASHING

Develop a solution for the following project problem.

Predecessor Normal Normal Cost Crash Time
Act Time (total) (Weeks) Crash Cost
A - 2 $22,000 1 $22,750
B - 3 $30,000 1 $34,000
C A 2 $26,000 1 $27,000
D A, B 4 $48,000 2 $50,000
E C 4 $56,000 2 $58,000
F C 3 $30,000 2 $30,500
G D, E 5 $80,000 2 $84,500
H F, G 2 $16,000 1 $19,000

a) Draw the project network with Normal time. What is the project completion date? And
Cost?
b) Find the crash cost per week for each activity.
c) The required new due data to complete the project is 13 weeks. How much it will cost to
meet the new due date? And what is the new total cost for the project.
CHAPTER: 8-C 8
 EXAMPLE 1: PROJECT CRASHING

Step 1: Compute the crash cost per time period.

Predecessor Normal Normal Cost Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

CHAPTER: 8-C 9
 EXAMPLE 1: PROJECT CRASHING

Step 1: Compute the crash cost per time period.

Predecessor Normal Normal Cost Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

a) Draw the project network with Normal time. What is the project completion date? And
Cost?.

Total Project cost

= 22000+30000+26000+48000+56000+30000+80000+16000= 30,8000
CHAPTER: 8-C 10
 EXAMPLE 1: PROJECT CRASHING

A C F

2 2 3

Start E H End

0 4 2 15

B D G

3 4 5
1) A-C-F-H 3) A-C-E-G-H 5) B-D-G-H
Exp. Time = 2+2+3+2=9 Exp. Time = 2+2+4+5+2=15 Exp. Time = 3+4+5+2=14
2) A-C-E-H 4) A-D-G-H
Exp. Time = 2+2+4+2=10 Exp. Time = 2+4+5+2=13
CHAPTER: 8-C 11
 EXAMPLE 1: PROJECT CRASHING

A C F

2 2 3

Start E H End

0 4 2 15

B D G

3 4 5
1) A-C-F-H 3) A-C-E-G-H 5) B-D-G-H
Exp. Time = 2+2+3+2=9 Exp. Time = 2+2+4+5+2=15 Exp. Time = 3+4+5+2=14
2) A-C-E-H 4) A-D-G-H
Exp. Time = 2+2+4+2=10 Exp. Time = 2+4+5+2=13
CHAPTER: 8-C 12
 EXAMPLE 1: PROJECT CRASHING

A C F

2 2 3

Start E H End

0 4 2 15

B D G

3 4 5
a) Draw the project network with Normal time. What is the project completion date? And
Cost?.
project completion date is 15 weeks, total project cost is $30,800

CHAPTER: 8-C 13
 EXAMPLE 1: PROJECT CRASHING

The demand for the last seven months of Dior perfume “POISON girl” was:
Predecessor Normal Normal Cost Crash Time Crash Crash Cost
Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

CHAPTER: 8-C 14
 EXAMPLE 1: PROJECT CRASHING

A C F

1 2 3

Start E H End

0 4 2 14

B D G

3 4 5
1) A-C-F-H 3) A-C-E-G-H 5) B-D-G-H
Exp. Time = 1+2+3+2=8 Exp. Time = 1+2+4+5+2=14 Exp. Time = 3+4+5+2=14
2) A-C-E-H 4) A-D-G-H
Exp. Time = 2+2+4+2=10 Exp. Time = 1+4+5+2=12
CHAPTER: 8-C 15
 EXAMPLE 1: PROJECT CRASHING

A C F

1 2 3

Start E H End

0 4 2 14

B D G

3 4 5
1) A-C-F-H 3) A-C-E-G-H 5) B-D-G-H
Exp. Time = 1+2+3+2=8 Exp. Time = 1+2+4+5+2=14 Exp. Time = 3+4+5+2=14
4) A-D-G-H
Exp. Time = 1+4+5+2=12
CHAPTER: 8-C 16
 EXAMPLE 1: PROJECT CRASHING

Predecessor Normal Normal Cost Crash Time Crash Crash Cost

Act Time (total) (Weeks) Cost per week
A - 2 $22,000 1 $22,750 $750
B - 3 $30,000 1 $34,000 $2000
C A 2 $26,000 1 $27,000 $1000
D A, B 4 $48,000 2 $50,000 $1000
E C 4 $56,000 2 $58,000 $1000
F C 3 $30,000 2 $30,500 $500
G D, E 5 $80,000 2 $84,500 $1500
H F, G 2 $16,000 1 $19,000 $3000

CHAPTER: 8-C 17
 EXAMPLE 1: PROJECT CRASHING

A C F

1 2 3

Start E H End

0 4 2 13

B D G

3 4 4
1) A-C-F-H 3) A-C-E-G-H 5) B-D-G-H
Exp. Time = 1+2+3+2=8 Exp. Time = 1+2+4+4+2=13 Exp. Time = 3+4+4+2=13
4) A-D-G-H
Exp. Time = 1+4+4+2=11
CHAPTER: 8-C 18
 EXAMPLE 1: PROJECT CRASHING

The required new due data to complete the project is 13 weeks. How much it will
cost to meet the new due date? And what is the new total cost for the project.

• To crash the project down to 13 weeks:

• We crash A by 1 week which will cost $750
• We crash G by 1 week which will cost $1500
• Total crashing cost : 750 +1500 = $ 2250
The new total cost to complete the project in 13 days is
$2,250 + $30,800 = 31,0250

CHAPTER: 8-C 19
 EXAMPLE 2: PROJECT CRASHING

Develop a solution for the following project problem.

Pred.
Crash Crash Cost Normal Time Normal
Act Time (total) (Weeks) Cost
A - 4 $800 7 $500
B - 2 $350 3 $200
C A,B 4 $900 6 $500
D C 1 $500 3 $200
E B 1 $550 2 $300

a) Draw the project network with Normal time. What is the project completion
date? And cost?
b) crash cost per day for each activity.
c) Reduce the project cycle time by five weeks (Crash the network by five weeks).
And identify the new critical path.
d) Find the new cost of completing the project (after crashing).
CHAPTER: 8-C 20
 EXAMPLE 2: PROJECT CRASHING

Develop a solution for the following project problem.

Pred.
Crash Crash Cost Normal Time Normal Crash cost
Act Time (total) (Weeks) Cost per day
A - 4 $800 7 $500 100
B - 2 $350 3 $200 150
C A,B 4 $900 6 $500 200
D C 1 $500 3 $200 150
E B 1 $550 2 $300 250

a) Draw the project network with Normal time. What is the project completion
date? And cost?
b) crash cost per day for each activity.
c) Reduce the project cycle time by 5 weeks (Crash the network by five weeks).
And identify the new critical path.
d) Find the new cost of completing the project (after crashing).
CHAPTER: 8-C 21
 EXAMPLE 2: PROJECT CRASHING

Normal Cost $1,700 in 16 weeks; Critical path A, C, D

Crash A by 3 and D by 2 ,
Total Cost after crashing 1700 + (3*100) + (2*150) = $ 2,300 in 11
weeks; New Critical path A, C, D
CHAPTER: 8-C 22
 PRACTICE

• What is the minimum cost of crashing the

following project that Dr. Abdulaziz manages
at Effat University by 3 days?

Activity Predecessor Normal T Crash T Normal Crash

(days) (days) Cost $ Cost $

A - 6 5 900 1,000
B - 8 6 300 400
C - 4 3 500 600
D A 5 3 900 1,200
E C 8 5 1,000 1,600

CHAPTER: 8-C 23
 PRACTICE

• What is the minimum cost of crashing the

following project that Dr. Abdulaziz manages
at Effat University by 3 days?

Activity Predecesso Normal T Crash T Normal Crash

r (days) (days) Cost $ Cost $

A - 6 5 900 1,000 100

B - 8 6 300 400 50
C - 4 3 500 600 100
D A 5 3 900 1,200 150
E C 8 5 1,000 1,600 200

CHAPTER: 8-C 24
Questions
?