Lecture 11-12: Project Scheduling III - Resource Scheduling, Resource Constrained CPM, Time

Cost Tradeoff

Method Example Problem

Consider the following crashing problem.
Activity
A
B
C
D
E
F
G

Normal
Duration
Cost
8
4
2
10
5
3
0

Crash
Duration
Cost

100
150
50
100
100
80
0

6
2
1
5
1
1
0

Pred.

200
350
90
400
200
100
0

A
A
A
B
C,D
E,F

Project Indirect Cost = Rs. 100 per day

Solution
Activity
A
B
C
D
E
F
G
Total

Normal
Duration
Cost
6
4
2
10
5
3
0

Crash
Duration
Cost

100
150
50
100
100
80
0
580

4
2
1
5
1
1
0

Slope

200
350
90
400
200
100
0
1,340

50
100
40
60
25
10

**

**
**
**
** Critical

10
B4

4
10
0

6
A6

14

19

14

16
16

19

19

19

F3

16

19

19
G0

8
C2

15
E5

4
14

10

16

19

D10

0
6

16

ES
Legend:

EF
Activity

TF
LS

Dur

LF

Lecture 11-12: Project Scheduling III - Resource Scheduling, Resource Constrained CPM, Time
Cost Tradeoff

Before Compression
Normal Duration = 19 days
Total Cost =580 + 19 x 100
Cost =
Rs. 2480
Critical Path =
A --> D --> F --> G
Now, Activities A,D, F & G are critical activities.
Select a critical activity that has least cost slope
Since, Activity G is a milestone, we won't consider it an activity
1st Compression
The critical activity which has lowest cost slope is F
Cost Slope = 10
Crash Limit = 2 days
Compress Activity F by 2 days

6
B4

6
A6

10

12

12

16
16

16

16

16

Duration:
17 days
Total Cost = 2480 + 2 x 10 - 2 x 100
Cost =
Rs. 2300
2nd Compression
Next critical activity with least cost slope is A
Cost Slope = 50
Crash Limit = 2 days
Compress Activity A by 2 days

17
F1

D10

17

17

17

17
G0

C2
14

15
E5

8
6

10

17

17

Lecture 11-12: Project Scheduling III - Resource Scheduling, Resource Constrained CPM, Time
Cost Tradeoff

4
B4

4
A4

10

12

13
E5

10

15

14
14

15

15

15

15

F1

14

15
G0

C2

14

15

D10

0
4
Duration:

8
2

8
4

14

15 days

Total Cost = 2300 + 2 x 50 - 2 x 100)

Cost =
Rs. 2200
3rd Compression
Next critical activity with least cost slope is D
Cost Slope = 60
Crash Limit = 5 days
But note that Activities B and E have total float value of 2.
If we compress Activity D by 5 days, then Activities B & D will become
critical activities with negative total floats.
So, we can safely compress activity D by 2 days only
Compress Activity D by 2 days
4

8
B4

4
A4

13

12
12

12
D8

4
12
Duration:
13 days
Total Cost = 2200 + 2 x 60 - 2 x 100
Cost =
Rs. 2120

13

13
F1

0
12

13

13
G0

10

C2

13
E5

4
0

13

13

Lecture 11-12: Project Scheduling III - Resource Scheduling, Resource Constrained CPM, Time
Cost Tradeoff

Since, there are two critical paths now

A --> D --> F --> G
A --> B --> E --> G
We have to compress them simultaneoulsy
Activity D has cost slope of 60 and crash limit is 3
From B & E, Activity E has least cost slope of 25 and crash limit is 4
Lower of the two crash limits (3 and 4) defines the combined crash limit
So, Compress Activities D and E simultaneously by 3 days each
Compress Activities D and E simultaneously by 2 days
4

8
B4

4
A4

10

9
9

10

10

10
G0

C2

10
E2

4
0

10

10

F1

0
9

10

D5

4
9
Duration:
10 days
Total Cost = 2120 + 3 x 60 + 3 x 25 - 3 x 100
Cost =
Rs. 2075

Optimum Result

Now Path A- D - F has alredy saturated (no more compression can be done on
any activity in this path because all activities have reached their crash limits).
Hence, this is the optimum solution.

Lecture 11-12: Project Scheduling III - Resource Scheduling, Resource Constrained CPM, Time
Cost Tradeoff