In: Operations Management
Consider a project having the following activities, time, and cost:
Normal Normal Crash Crash Maximum
Immediate Time Cost Time Cost Time
Activity Predecessors (weeks) ($) (weeks) ($) Reduced
a none 4 3,000 2 5,000 2
b a 5 5,000 3 8,000 2
c a 4 7,000 4 7,000 0
d b 4 6,000 2 8,000 2
e c,d 8 4,000 6 8,000 2
f c 3 4,000 2 9,000 1
g e,f 4 2,000 2 7,000 2
Assume partial crashing (not all maximum crashing time has to be used) is available.
activity | required time | cost | time available for crashing= normal duration-crashed duration | cost of crashing per period= (crashing cost-normal cost)/periods available for crashing | ||
normal duration | crashed duration | normal cost | crashing cost | |||
a | 4 | 2 | 3,000 | 5,000 | 2 | $1,000 |
b | 5 | 3 | 5,000 | 8,000 | 2 | $1,500 |
c | 4 | 4 | 7,000 | 7,000 | 0 | - |
d | 4 | 2 | 6,000 | 8,000 | 2 | $1,000 |
e | 8 | 6 | 4,000 | 8,000 | 2 | $2,000 |
f | 3 | 2 | 4,000 | 9,000 | 1 | $5,000 |
g | 4 | 2 | 2,000 | 7,000 | 2 | $2,500 |
network diagram
Normal cost is the sun at normal times=$31,000
PATH | normal duration |
abdeg | 25 |
aceg | 20 |
acfg | 15 |
Cost | $31,000 |
Steps for crashing a project | ||
1 | select the critical path and find the process with the least cost of crashing per week | |
2 | If there are multiple critical paths, look for processes that are common, common processes may have low effective cost as common process crashes more than 1 path at once | |
3 | you can only crash an activity depending on the time available for crashing. If an activity is only crashed that much time, choose another activity | |
4 | add the cost of crashing later |
Crashing
PATH | normal duration | crash A by 2 periods |
abdeg | 25 | 23 |
aceg | 20 | 18 |
acfg | 15 | 13 |
Cost | $31,000 | $2,000 |
additional cost= $2000