Question

Explain the concept of cost – time trade off and project crashing ?

Answer 1

The concept of cost-time trade off and project crashing:

- Notwithstanding booking ventures, an undertaking supervisor is much of the time stood up to with the issue of decreasing the planned consummation time of a task to comply with a time constraint. As such, the director must completion the task sooner than showed by the CPM or PERT system examination.

- Task term can be decreased by appointing more work to extend exercises, frequently as extra time, and by relegating more assets (material, hardware, and so forth.). Notwithstanding, extra work and assets cost cash and consequently increment the general task cost. In this manner, the choice to lessen the undertaking term must be founded on an examination of the exchange off among time and cost.

- Venture slamming is a technique for shortening venture span by diminishing the hour of at least one of the basic task exercises to a period that is not exactly the ordinary action time. This decrease in the typical movement times is alluded to as slamming . Slamming is accomplished by giving more assets, estimated as far as dollars, to the exercises to be smashed. Task smashing abbreviates the undertaking time by lessening basic movement times at an expense .

- Crash cost and crash time have a straight relationship.

- The goal of task slamming is to lessen the venture span while limiting the expense of smashing. Since the task fulfillment time can be abbreviated distinctly by smashing exercises on the basic way, it might turn out that not all exercises must be slammed. Be that as it may, as exercises are slammed, the basic way may change, requiring smashing of already noncritical exercises to additionally decrease the task finish time.

- The manual technique for smashing a system is bulky and by and large unsuitable for venture slamming. It is fundamentally an experimentation approach that is valuable for exhibiting the rationale of slamming; be that as it may, it rapidly gets unmanageable for bigger systems.

- The General Relationship of Time and Cost

In our conversation of venture slamming, we exhibited how the undertaking basic way time could be diminished by expanding uses for work and direct assets. The verifiable goal of slamming was to lessen the planned consummation time for its own sake that is, to procure the consequences of the venture sooner. Be that as it may, there might be other significant explanations behind lessening venture time. As tasks proceed after some time, they devour different circuitous expenses , including the expense of offices, gear, and apparatus; enthusiasm on speculation; utilities, work, and faculty costs; and the loss of aptitudes and work from individuals from the venture group who are not working at their standard occupations. There likewise might be immediate money related punishments for not finishing a task on schedule. For instance, numerous development agreements and government contracts have punishment conditions for surpassing the undertaking consummation.

- Crash costs increment as task time diminishes; circuitous costs increment as undertaking time increments .

All in all, venture crash costs and circuitous expenses have a backwards relationship; crash costs are most elevated when the undertaking is abbreviated, though backhanded costs increment as the task length increments.