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The Importance of Activity Crashing in Project Management
Chapter 9: Exercises
A certain project has three activities on its critical path. Activity A’s normal completion time is five days. It can be crashed for three days at a cost of $500. Activity B’s normal completion time is six days, and it can be crashed to four days at a cost of $50. Activity C’s normal completion time is eight days. It can be crashed for three days at a cost of $1,000. Which activity should the project manager crash and by how many days? How much will it cost?
Using the data below, create the project schedule using normal times. Determine the order in which you would crash the project one day, two days, and so on until it is in an all-crash mode. Identify how much it would cost for each day you crash the schedule. Activity Predecessor Normal Time Normal Cost Crash Time Crash Cost Crash Cost per Day A – 12 200 9 350 B A 8 300 8 300 C A 9 250 7 450 D B 6 400 5 600 E B, C 5 150 4 225 F C 10 500 9 650 G D, E, F 8 400 6 900
The Importance of Activity Crashing in Project Management
Project management involves a series of activities that need to be completed within a specified timeframe and budget. However, there are instances where projects may face delays or cost overruns. In such situations, project managers must make strategic decisions to ensure the project is completed on time and within budget. One approach that can be used is called activity crashing, which involves reducing the duration of critical activities in order to expedite the project schedule. In this essay, we will discuss the concept of activity crashing and analyze two scenarios to determine which activity should be crashed and at what cost.
Activity Crashing: An Overview
Activity crashing is a technique used in project management to speed up a project schedule by reducing the time required to complete critical activities. This approach involves allocating additional resources, such as manpower or equipment, to expedite the completion of these activities. By doing so, project managers can meet tight deadlines, satisfy client expectations, and minimize potential penalties for late delivery.
Scenario 1: Determining the Activity to Crash
In the first scenario, we have a project with three critical activities: A, B, and C. The normal completion times and crash options for each activity are as follows:
Activity A: Normal completion time = 5 days; Crash time = 3 days; Crash cost = $500
Activity B: Normal completion time = 6 days; Crash time = 4 days; Crash cost = $50
Activity C: Normal completion time = 8 days; Crash time = 3 days; Crash cost = $1,000
To determine which activity to crash and by how many days, we need to consider two factors: the impact on the project schedule and the associated cost.
First, we can analyze the critical path of the project. The critical path is the longest sequence of dependent activities that determines the overall project duration. In this case, activities A, B, and C are on the critical path. By crashing any of these activities, we can reduce the project duration.
To decide which activity to crash, we need to compare the crash costs per day for each activity. The crash cost per day is calculated by dividing the difference in crash cost by the difference in normal time.
For Activity A: Crash cost per day = ($500 - $0) / (5 days - 3 days) = $250 per day For Activity B: Crash cost per day = ($50 - $0) / (6 days - 4 days) = $25 per day For Activity C: Crash cost per day = ($1,000 - $0) / (8 days - 3 days) = $200 per day
Based on these calculations, we can see that crashing Activity B has the lowest crash cost per day. Therefore, the project manager should crash Activity B by 2 days to minimize both cost and duration.
Scenario 2: Crashing the Project Schedule
In the second scenario, we have a project with multiple activities and their corresponding normal and crash times and costs. The goal is to determine the order in which activities should be crashed and calculate the associated costs for each day of crashing.
The activities and their details are as follows:
Activity A: Normal time = 12 days; Normal cost = $200; Crash time = 9 days; Crash cost = $350; Crash cost per day = $150
Activity B: Predecessor = A; Normal time = 8 days; Normal cost = $300; Crash time = 8 days; Crash cost = $300; Crash cost per day = $0
Activity C: Predecessor = A; Normal time = 9 days; Normal cost = $250; Crash time = 7 days; Crash cost = $450; Crash cost per day = $200
Activity D: Predecessor = B; Normal time = 6 days; Normal cost = $400; Crash time = 5 days; Crash cost = $600; Crash cost per day = $200
Activity E: Predecessor = B, C; Normal time = 5 days; Normal cost = $150; Crash time = 4 days; Crash cost = $225; Crash cost per day = $75
Activity F: Predecessor = C; Normal time = 10 days; Normal cost = $500; Crash time = 9 days; Crash cost = $650; Crash cost per day = $150
Activity G: Predecessor = D, E, F; Normal time = 8 days; Normal cost = $400; Crash time = 6 days; Crash cost = $900; Crash cost per day = $250
To determine the order in which activities should be crashed, we need to identify the critical path of the project. From the given information, we can see that activities A-B-D-G form the critical path.
Now, let’s calculate the crash costs for each day of crashing:
Day 1 of crashing:
Crashing Activity A for one day would cost $150.
Crashing Activity G for one day would cost $250.
Total crash cost for Day 1: $400.
Day 2 of crashing:
Crashing Activity A for two days would cost $300.
Total crash cost for Day 2: $300.
Day 3 of crashing:
Crashing Activity C for one day would cost $200.
Total crash for Day 3: $200.
analyzing these calculations, we can see that crashing Activity C for one day on Day3 would result in the lowest additional., this would be the most optimal decision to expedite the project schedule without incurring excessive costs.
In conclusion, activity crashing is an effective technique in project management to speed up project schedules. By evaluating critical paths, crash costs per day, and considering both schedule and budget constraints, project managers can make informed decisions on which activities to crash and when. This ensures successful project completion within tight timelines and budgetary restrictions.