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# COST CRASHING

## Engr. Debbie Lyn Cabacungan, RCE, RMP, En.P.

Instructor
PURPOSE OF COST CRASHING
o To avoid penalties for not completing the project time.
o To free up resources such as men, equipment, money
and other for use on other projects.
o To take advantage of monetary incentives for completing
the project on or before the target date.
o To reduce indirect costs associated with the projects
such as:
a) facilities
b) supervision cost
c) labor cost
d) personnel cost
PROCEDURE IN CRASHING PROJECT TIME

## o Obtain an estimate of regular and crash time plus the

cost of each activity.
o Determine the length of all paths and their float time.
o Determine which activities are on critical path.
o Crash the critical activities in the order of increasing cost
as long as the crashing cost do not exceed benefits.
From the following data, perform crashing of the
project.
Time in Weeks Cost Cost per
ACTIVITY
Normal Crash Normal Crash week
1-2 A 6 2 2000 10000 2000
1-3 B 8 3 4000 7000 600
2 -4 C 7 4 2000 3200 400
3 -4 D 12 8 8000 10000 500
3 -5 E 7 3 2000 5200 800
4 -6 F 3 1 10000 14000 2000
5 -6 G 5 2 6000 8100 700
5 -7 H 11 7 6000 9600 900
6 -7 I 10 6 4000 8000 1000
Total 44000 75100
Step 1: Draw the diagram.
C F
7 3

A D G I
2 12 5 10

B E H
8 7 11
Step 2: Determine the duration at normal
time and Critical Path.
6 C 13 20 F 23
13 7 20 20 3 23

0 A 6 15 G 20 23 I 33
8 D 20
7 6 13 8 5 23 23 10 33
8 12 20

0 B 8 8 E 15 15 H 26
0 8 8 15 7 22 22 11 33

## o Total Duration = 33 weeks

o Critical Path : B – D – F – I (33 weeks)
: B – E – H (26 weeks)
Step 3: Determine the duration at crash
time and Critical Path.
2 C 6 11 F 12
7 4 11 11 1 12

0 A 2 3 D 11 12 I 18
6 G 8
1 2 3 3 8 11 12 6 18
10 2 12

0 B 3 3 E 6 6 H 13
0 3 3 3 3 6 6 7 13

## o Total Duration = 18 weeks

o Critical Path : B – D – F – I (18 weeks)
: B – E – H (13 weeks)
Step 3: Proceed with cost crashing
6 C 13 20 F 23
13 7 20 20 3 23

0 A 6 15 G 20 23 I 33
8 D 20
7 6 13 8 5 23 23 10 33
8 12 20
0 B 8 8 E 15 15 H 26
0 8 8 15 7 22 22 11 33

CRITICAL PATH B D F I
Cost per week 600 500 2000 1000
Normal Time 8 12 3 10
Crash Time 3 8 1 6
Variance 4
6 C 13 12 F 15
13 7 20 17 3 20

0 A 6 15 G 20 20 I 30
8 D 12
7 6 13 15 5 20 20 10 30
13 4 17

0 B 8 8 E 15 15 H 26
0 8 8 8 7 15 19 11 30
NEW CRITICAL B E G I
PATH
Cost per week 600 800 2000 1000
Normal Time 8 7 3 10
Crash Time 3 3 1 6
Variance 5
6 C 13 13 F 16
7 7 14 14 3 17

0 A 6 12 G 17 17 I 27
5 D 13
1 6 7 12 5 17 17 10 27
6 8 14

0 B 5 5 E 12 12 H 23
0 5 5 5 7 12 12 11 23

NEW CRITICAL B E G I
PATH
Cost per week 600 800 2000 1000
Normal Time 8 7 3 10
Crash Time 3 3 1 6
6 C 13 13 F 16
6 7 13 13 3 16

0 A 6 7 G 12 16 I 26
3 D 11
0 6 6 11 5 16 16 10 26
5 8 13

0 B 3 3 E 7 7 H 18
0 3 3 3 4 7 7 11 18

## NEW CRITICAL PATH B E G I

Cost per week 600 800 2000 1000
Normal Time 8 7 3 10
Crash Time 3 3 1 6
Variance 5 4
6 C 13 13 F 16
6 7 13 13 3 16

0 A 6 7 G 12 16 I 26
3 D 11
0 6 6 11 5 16 16 10 26
5 8 13

0 B 3 3 E 7 7 H 18
0 3 3 3 4 7 7 11 18

## NEW CRITICAL PATH A C F I

Cost per week 2000 400 2000 1000
Normal Time 6 7 3 10
Crash Time 2 4 1 6
Variance 3
6 C 9 11 F 14
9 3 11 11 3 14

0 A 6 6 G 11 14 I 24
3 D 11
3 6 9 9 5 14 14 10 24
3 8 11

0 B 3 3 E 6 6 H 18
0 3 3 3 3 6 6 11 18

CRITICAL PATH B D F I
Cost per week 600 500 2000 1000
Normal Time 8 12 3 10
Crash Time 3 8 1 6
Variance 5 4 4
6 C 10 11 F 14
7 4 11 11 3 14

0 A 6 6 G 11 14 I 18
3 D 11
1 6 7 9 5 14 14 18
3 8 11 4
0 B 3 3 E 6 6 H 17
0 3 3 3 3 6 6 11 17

CRITICAL PATH B D F I
Cost per week 600 500 2000 1000
Normal Time 8 12 3 10
Crash Time 3 8 1 6
Variance 5 4 4
Summary:
Time in Weeks Cost Cost per
ACTIVITY
Normal Crash Crash week
75100 44,000
1-3 B 8 3 600 3,000
2 -4 C 7 4 400 1,200
3 -4 D 12 8 500 2,000
3 -5 E 7 3 800 3,200
6 -7 I 10 6 1000 4,000
75,100 57,400
Analysis:

## Budget vs. crashed cost:

57,400 – 44,000 = Php 13,400.00 or
+30.45% increased in orig. budget

## Crashed (all act. vs. crashed cost (act. in critical path)

75,100 - 57,400 = Php 17,700.00
33 days – 18 days = 15 days
Reference: