Question

Discussion: Managing Risks Associated with Compressing the Project Schedule

What are the options for the project team when it becomes clear from the network/PERT diagram and critical path that the project is scheduled to take longer than the sponsor and senior stakeholders expect? This is a common situation and it is important for project managers to prepare themselves to address this situation and systematically consider the options.

We will start our schedule compression analysis with the assumption that all the work packages and associated activities currently in the schedule should remain as part of the project scope. Project managers can consider two techniques; fast-tracking and crashing. You began your study of these techniques in Week 3. We continue to focus on them this week, and you will be applying them to your project schedules in Week 5.

How can you decide, which, if either, technique to use? What are the strengths and limitations of each technique? What are the risks associated with each technique?

Answer 1

Fast tracking and crashing are the schedule compression techniques used by the project manager to shorten the duration of the project. These techniques are employed if the project is running behind schedule but the team wants to finish in the pre-stipulated time. These techniques can also be employed if overall project cost needs to be lowered.

• Fast tracking: In this method, the critical path of the project is considered and the parallel processes in the project are identified. Then the parallel processes are executed parallel rather than sequentially as was in the previous schedule.
  • Reduces the duration of the project
  • Does not require any additional cost for implementation
  • Does increase the overall risk of the project as the sequential processes are implemented in parallel.

           This method does not require any additional resource, just a consideration is needed to rearrange the overall processes in the project. This method must be used if the project duration needs to be shortened without incurring any additional cost.

• Crashing: This technique of schedule compression is employed when the project manager adds some extra resources to the project to shorten its duration. This technique is usually employed when the fast tracking has not been able to save enough time on the schedule of the project. Resources are added at least extra cost. This method requires the project manager and the team to analyze the project activities based on the lowest incremental cost. The activities are then implemented in increasing order of their incremental costs with addition of resources.
  • Reduces the duration of the project by adding extra resources
  • Increases the overall project cost as additional resources are added
  • There is no change in the overall estimate of project risk

          This method must be employed if fast tracking technique was not effective or the project manager does not want to increase potential risks of the project.