NETWORK COMPRESSION

PREPARED BY
PROF. DR. LIAQAT ALI QURESHI UET TAXILA

PROF. DR. L. A. QURESHI

NETWORK COMPRESSION

Reducing the normal project duration is called Network Compression, Expedition of the network or crashing of the network. Such a circumstance may arise due to the following reasons: 1 Where construction time is limited with possible penalties for time overrun i.e., The initial calculations based on normal times may indicate a project time that exceeds the target completion time.

PROF. DR. L. A. QURESHI

NETWORK COMPRESSION
2 Where material, equipment or worker shortages develop during a project, thereby, delaying the project completion time. 3 Where delays due to other causes or variations (e.g., due to bad whether, industrial disputes, unforeseen site conditions, etc) occur during construction. 4 Where it is desirable to complete the project early in order to reuse the resources i.e., equipment, plant or workers, on another project or where indirect costs or large.

PROF. DR. L. A. QURESHI

TERM

DEFINITION

Direct Costs

The costs directly attributable to project work items e.g., labor, and material costs, etc. These increases with crashing of network. The costs which are spread over the entire project e.g., office, staff, equipment, management, etc. Also, interest charges over the project, cumulative investment and penalty costs for completion the project after a specified date are included. These decreases with crashing of network. The minimum cost possible by crashing of a network.

Indirect / Overhead Costs

Least Cost Optimum Time

Crash Duration Crash Cost

Time/Duration of the project corresponding to its Least cost.

The minimum practicable duration for any activity.

The cost of an activity at crash duration.

PROF. DR. L. A. QURESHI

TERM

DEFINITION

Crash Duratio n Crash Cost Optimu m Time Least Cost

The minimum practicable duration for any activity. The cost of an activity at crash duration.

Time/Duration of the project corresponding to its Least cost.

The least total cost for a project during network compression.

PROF. DR. L. A. QURESHI

TERM

DEFINITION

Simple Compression

When direct costs of activities vary linearly with their durations, and the overhead costs vary linearly with time.
When direct costs of activities vary non-linearly with their durations, and the overhead costs vary non-linearly with time. Change in cost per day during compression. Mathematically, Crash cost - Normal Cost Normal duration - Crash duration
PROF. DR. L. A. QURESHI

Complex Compression

Cost Slope

PROF. DR. L. A. QURESHI

RULES FOR NETWORK COMPRESSION

1 While expediting the network, just concentrate on the critical
2 The critical activity involving the minimum cost slope is expedited first.

path and expedite only the critical activities. Expedition of noncritical activities will just increase their float.

3 After each crashing, perform CPM calculations and check the critical paths . 4 If there are more than one critical paths, expedite them simultaneously, in parallel. 5 The expedition of a single activity common on more than one critical paths will expedite all these paths.
6 No activity can be crashed below its crash duration.
PROF. DR. L. A. QURESHI

TIME LIMITATIONS
In some cases, certain activities have to be completed by a prescribed date or within a prescribed time. This situation is handled by introducing artificial activities into the network. An Artificial Activity is associated with time duration but has zero cost.
These artificial activities are treated in the same way as the other activities. Network compression is carried out until the artificial activities become critical.

PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

SIMPLE COMPRESSION
EXAMPLE

Expedite the network diagram shown in figure with the help of data given below and find Least cost and Optimum duration. Take indirect cost as Rs: 300/- per day.

PROF. DR. L. A. QURESHI

Activity

A B C

Normal Time (days) 4 5 4

D E F G H J K

3 4 3 5 3 4 4

Cost (Rs.) 1200 2000 800 2000 2500 1500 1700 1500 1200 1600

Crash Time (days) 2 3 1

1 2 1 2 2 2 1

Cost (Rs.) 1650 2600 1160 2700 3000 1750 2675 1800 1800 2500
PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

SOLUTION
Activity Normal Time (days) Cost (Rs.) Crash Time (days) Cost /Day Cost (Rs.)

A
B C D E F G H J K TOTAL

4
5 4 3 4 3 5 3 4 4 -

1200
2000 800 2000 2500 1500 1700 1500 1200 1600 16,000

2
3 1 1 2 1 2 2 2 1 -

1650
2600 1160 2700 3000 1750 2675 1800 1800 2500 -

225
300 120 350 250 125 325 300 300 300 -

PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

NORMAL WORKING (15 DAYS)

Total Direct Cost = 16,000/-

Total Indirect Cost = 15 x 300/= 4,500/-

Overall Cost = 16,000/- + 4,500/= 20,500/PROF. DR. L. A. QURESHI

Crash Duration = 14 days

Critical Activity A has minimum cost slope i.e., 225/-, Crash it by I day. Total Direct Cost = 16,000/- + 225/= 16,225/-

Total Indirect Cost = 14 x 300/= 4,200/ Overall Cost = 16,225/- + 4,200/= 20,425/Note: Overall Cost decreased by Rs: 75/-.
PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

Crash Duration = 13 days

Critical Activity A has still minimum cost slope i.e., 225/-, Crash it further by I day. (Its crash duration is reached now) Total Direct Cost = 16,225/- + 225/= 16,450/-

Total Indirect Cost = 13 x 300/= 3,900/Overall Cost = 16,450/- + 3,900/= 20,350/-

Note: Overall Cost decreased by Rs: 75/-.

PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

Crash Duration = 12 days

A was fully crashed. From remaining critical activities (E,H,J), Critical Activity E has minimum cost slope i.e., 250/-, Crash E by I day. Total Direct Cost = 16,450/- + 250/= 16,700/-

Total Indirect Cost = 12 x 300/= 3,600/Overall Cost = 16,700/- + 3,600/= 20,300/-

Note: Overall Cost decreased by Rs: 50/-.

PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

Crash Duration = 11 days

Now there are three critical paths (i) AEHJ (ii) ADFK (iii) BFK Activity A is common in first two paths and F, K are common in last two. But A is fully crashed. So, Expedite E from 1st path and expedite F from last two paths, as its cost slope is less than K. Total direct cost = 16700/- + 250/- + 125/- = 17075/ Total indirect cost = 11 x 300/- = 3300/ Overall cost = 17075/- + 3300/- = 20375/ Note: overall cost increased by Rs: 75/-. Stop compression. Least cost = Rs: 20,300/Optimum Duration = 12 days
PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

PROF. DR. L. A. QURESHI

COMPLEX COMPRESSION
PROBLEM

Expedite the network diagram shown in figure with the help of data given below and find least cost and Optimum duration.

Take indirect cost as Rs: 100/- per day.

PROF. DR. L. A. QURESHI

NETWORK DIAGRAM

B
10 A 6 C E d1 8

D
F 4

12

PROF. DR. L. A. QURESHI

ACT Duration
Normal Crash

Cost (Rs.)
Normal Crash 1 Crash 2 Crash 3 Crash 4

A B C D E F

6 10 12 8 6 4

4 7 8 4 3 2

800 1100 1400 1000 900 800

890 1225 1475 1035 965 825

1010 1350 1560 1115 1040 865

1475 1660 1195 1130 -

1760 1295 -

Overhead Costs = Rs: 100/day

PROF. DR. L. A. QURESHI

SOLUTION
NORMAL DURATION = 30 DAYS TOTAL DIRECT COST = 6,000/ACTIVITY DAYS COST / DAY

DAY 1 90 125 75

DAY 2 120 125 85

DAY 3 --------125 90

DAY 4 --------------110

A B C

2 3 4

D
E

4
3

35
65

80
75

80
90

100
-------

25

40

-------

-------

PROF. DR. L. A. QURESHI

NORMAL WORKING (30 DAYS)

Total Direct Cost = 6,000/-

Total Indirect Cost = 30 x 100/= 3,000/Overall Cost = 6,000/- + 3, 000/= 9,000/PROF. DR. L. A. QURESHI

Crash Duration = 29 days

Critical Activity F has minimum cost slope i.e., 25/- for first day, Crash it by I day. Total Direct Cost = 6,000/- + 25/= 6,025/Total Indirect Cost = 29 x 100/= 2,900/-

Overall Cost = 6,025/- + 2,900/= 8, 925/-

Note: Overall Cost decreased by Rs: 75/-.

PROF. DR. L. A. QURESHI

Crash Duration = 29 days

B
10 A 6 C 12 E 6 d1 8

D
F 3

PROF. DR. L. A. QURESHI

CRASH DURATION = 29 DAYS OVERALL COST = 8,925/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 90 125 75 35

DAY 2 120 125 85 80

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
40

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 28 days

Critical path is same. Now, Critical Activity D has minimum cost slope i.e., 35/-, Crash it by I day. Total Direct Cost = 6,025/- + 35/= 6, 060/Total Indirect Cost = 28 x 100/= 2, 800/-

Overall Cost = 6,060/- + 2, 800/= 8, 860/-

Note: Overall Cost decreased by Rs: 65/-.

PROF. DR. L. A. QURESHI

Crash Duration = 28 days

B
10 A 6 C 12 E 6 d1 7 F 3

PROF. DR. L. A. QURESHI

CRASH DURATION = 28 DAYS OVERALL COST = 8, 860/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 90 125 75 ------

DAY 2 120 125 85 80

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
40

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 27 days

Critical path is same. Now, Critical Activity F has minimum cost slope i.e., 40/-, Crash it by I day. Total Direct Cost = 6,060/- + 40/= 6, 100/Total Indirect Cost = 27 x 100/= 2, 700/-

Overall Cost = 6,100/- + 2, 700/= 8, 800/-

Note: Overall Cost decreased by Rs: 60/-.

PROF. DR. L. A. QURESHI

Crash Duration = 27 days

B
10 A 6 C 12 E 6 d1 7 F 2

PROF. DR. L. A. QURESHI

CRASH DURATION = 27 DAYS OVERALL COST = 8, 785/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 90 125 75 ------

DAY 2 120 125 85 80

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
------

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 26 days

Activity F is fully crashed. Critical path is same. Now, Critical Activity C has minimum cost slope i.e., 75/-, Crash it by I day. Total Direct Cost = 6,100/- + 75/= 6, 175/Total Indirect Cost = 26 x 100/= 2, 600/Overall Cost = 6, 175/- + 2, 600/= 8, 775/-

Note: Overall Cost decreased by Rs: 25/-.

PROF. DR. L. A. QURESHI

Crash Duration = 26 days

B
10 A 6 C 11 E 6 d1 7 F 2

PROF. DR. L. A. QURESHI

CRASH DURATION = 26 DAYS OVERALL COST = 8, 760/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 90 125 -----------

DAY 2 120 125 85 80

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
------

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 25 days

Critical path is same. Now, Critical Activity D has minimum cost slope i.e., 80/-, Crash it by I day. Total Direct Cost = 6, 175/- + 80/= 6, 255/Total Indirect Cost = 25 x 100/= 2, 500/-

Overall Cost = 6, 255/- + 2, 500/= 8, 755/-

Note: Overall Cost decreased by Rs: 20/-.

PROF. DR. L. A. QURESHI

Crash Duration = 25 days

B
10 A 6 C 11 E 6 d1 6 F 2

PROF. DR. L. A. QURESHI

CRASH DURATION = 25 DAYS OVERALL COST = 8, 740/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 90 125 -----------

DAY 2 120 125 85 ------

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
------

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 24 days

Now there are two critical paths (ACDF & ACEF) as E has become critical. Now, Critical Activity C is common on both paths and has minimum cost slope i.e., 85/- as compared to other options. Crash it by I day.

Total Direct Cost = 6, 255/- + 85/= 6, 340/ Total Indirect Cost = 24 x 100/= 2, 400/ Overall Cost = 6, 340/- + 2, 400/= 8, 740/Note: Overall Cost decreased by Rs: 15/-.

PROF. DR. L. A. QURESHI

Crash Duration = 24 days

B
10 A 6 C 10 E 6 d1 6 F 2

PROF. DR. L. A. QURESHI

CRASH DURATION = 24 DAYS OVERALL COST = 8, 725/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 90 125 -----------

DAY 2 120 125 -----------

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
------

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 23 days

Now there are 3 critical paths (ACDF, ABDF & ACEF) as B has become critical. Now, Critical Activity A is common on all paths and has minimum cost slope i.e., 90/- as compared to other options. Crash it by I day.

Total Direct Cost = 6, 340/- + 90/= 6, 430/ Total Indirect Cost = 23 x 100/= 2, 300/ Overall Cost = 6, 430/- + 2, 300/= 8, 730/Note: Overall Cost decreased by Rs: 10/-.

PROF. DR. L. A. QURESHI

Crash Duration = 23 days

B
10 A 5 C 10 E 6 d1 6 F 2

PROF. DR. L. A. QURESHI

CRASH DURATION = 23 DAYS OVERALL COST = 8, 715/ACTIVITY DAYS COST / DAY

DAY 1 A B C D 2 3 4 4 -----125 -----------

DAY 2 120 125 -----------

DAY 3 --------125 90 80

DAY 4 --------------110 100

E
F

3
2

65
-------

75
------

90
-------

-------------

PROF. DR. L. A. QURESHI

Crash Duration = 22 days

Again, there are 3 critical paths (ACDF, ABDF & ACEF). Again, Critical Activity A is common on all paths and has minimum cost slope i.e., 120/- as compared to other options. Crash it by I day.

Total Direct Cost = 6, 430/- + 120/= 6, 550/ Total Indirect Cost = 22 x 100/= 2, 200/ Overall Cost = 6, 550/- + 2, 200/= 8, 750Note: Overall Cost is now increased by Rs: 20/-. (STOP CRASHING NOW)

PROF. DR. L. A. QURESHI

FINAL RESULT

OPTIMUM DURATION = 23 DAYS LEAST COST = 8,715/-

PROF. DR. L. A. QURESHI