Accelerating the project Edina Nagy Lajos Kiss Szabolcs Hornyák

Overview Introduction Project acceleration terminology  Normal Time, normal cost  Crash Time, crash cost  Direct Costs  Indirect Costs  Total Project Cost  Optimum Project Duration Project acceleration principles References Introduction Project acceleration terminology  Normal Time, normal cost  Crash Time, crash cost  Direct Costs  Indirect Costs  Total Project Cost  Optimum Project Duration Project acceleration principles References

„When I know all information, only can make a right decisions.” Paulo Coelho Introduction

Steps of right decision:  Definiate: Time and costs  Analysed the possibilities  Compare the opportunities  Choose the best way Steps of right decision:  Definiate: Time and costs  Analysed the possibilities  Compare the opportunities  Choose the best way Introduction

Project acceleration terminology Normal Time, normal cost This is the usual time that would be needed to carry out the electrical services work under normal circumstances, estimated at 12 days with a cost of £

Project acceleration terminology Crash Time, crash cost The crash time is the maximum time the operation can be compressed by increasing the resources. Crash time: 8 days Crash cost: £18.000

Project acceleration terminology Cost Slope

Project acceleration terminology Activity ranking Analysed the precedence relationship Identified the critical activities Ranking by the cost Reduce the duration Define the critical path

Project acceleration terminology Direct costs: Labour Plants Materials Subcontractors Overheads and profit

Project acceleration terminology Indirect costs: Project supervision Site hutting and accomodation Site office telephones, heating and lighting Vans and site transport

Project acceleration terminology Direct costs + Indirect costs Total cost

Optimum project duration

Project acceleration principles Example – based on a network arrow diagram

Project acceleration principles Project datas PROJECT DATA ActivityNormal TimeNormal CostCrash TimeCrash Cost A B C D E F G H I Summation£ Indirect costs £2000 per week

Project acceleration principles Normal time / Normal Cost analysis

Project acceleration principles Normal time / Normal Cost analysis Cost Slope Assessment ActivityNormal TimeCrash TimeSaving in Time Normal Cost (£000) Crash Cost (£000) Increase in Cost (£000) Cost SlopeFloatOrder/ Ranking A Zero2nd E Zero3rd F Zero4th D Zero1st B Non critical operations G H I C

Project acceleration principles Revised arrow diagram

Project acceleration principles Activity Normal Time (weeks) Crash Time (weeks) Reduction in Time (weeks)Cost slope (£) Increase in direct cost (£) D A E Reduction in overall time = 5 Increase in direct cost due to this reduction in time = Total Project Costs at week 23. Direct costs =£ £ =£ Indirect costs =23 weeks x £2 000 =£ Total Project Cost £ Therefore, in order to achieve an acceleration of 5 weeks, the project cost will be increased by £13 000, that is: Crash Cost =£ Less Normal Cost =£ Acceleration Cost =£ Reduction in project period

References - pp Paragraph 9.9 Accelerating the project

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