Crashing
Shortening an activity or project.
Crash Point
The most a project activity time can be realistically compressed with the resources available.
Crash Time
The shortest time an activity can be completed.
Direct Cost
Costs clearly charged to a specific work package (i.e. labor, materials, equipment). Varies indirectly with time.
Fast-Tracking
Accelerating project completion typically by rearranging the network schedule and using start-to-start lags.
Indirect Cost
Costs that can't be traced to a work package or particular project (supervision, overhead). Varies directly with time.
Outsourcing
Contracting external resources to assist in implementing a project.
Project-Cost Duration Graph
Graph that plots project costs against time; includes direct, indirect, and total costs for a project over relevant time range.
Cost Slope Equation
(Crash Cost-Normal Cost) ÷ (Normal Time-Crash Time)
What are the 5 common reasons for crashing a project?
1. Time to market pressures.
2. Unforeseen delays.
3. Incentives for early completion.
4. Imposed deadlines.
5. Pressures to move resources elsewhere.
What are the advantages & disadvantages of reducing project scope to accelerate a project?
_Big time and money savings.Disadvantages_ Reduction in project functionality and value_
How can the disadvantages of reducing project scope be resolved?
Change the activities on the critical path.
Why is scheduling overtime a popular choice for getting projects back on schedule?
It makes communication and coordination among team-members easier.
What are the potential problems for relying on overtime?
If used to often, the project may incur extra costs for labor and it may also be mentally/emotionally straining on team-members.
Identify 4 indirect costs you might find on a moderately complex project. Why are these costs classified as indirect?
1. Administration
2. Supervision
3. Consultants
4. Interest
These are indirect because they aren't tied to a specific activity or work package.
How can a cost-duration graph be used by a project manager?
A cost-duration graph shows the total cost for a project against different project durations. Managers can use this to make quick decisions about which activities to crash.
Options for Accelerating Project Completion on Unconstrained Resources
1. Adding resources
2. Outsourcing project work
3. Scheduling overtime
4. Establishing a core project team
5. Do it twice—fast and then correctly
Options for Accelerating Project Completion on Constrained Resources
1. Fast-tracking
2. Critical-chain
3. Reducing project scope
4. Compromise quality
How should you decide which activities to shorten?
Shorten the activities with the smallest increase in cost per unit of time
How can you cut project costs?
1. Reduce project scope
2. Have owner take on more responsibility
3. Outsourcing project activities or even the entire project
4. Brainstorming cost savings options
