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Project Management Chapter 8 (Crashing).

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Presentation on theme: "Project Management Chapter 8 (Crashing)."— Presentation transcript:

1 Project Management Chapter 8 (Crashing)

2 Project Crashing Basic Concept
In last lecture, we studied on how to use CPM and PERT to identify critical path for a project problem Now, the question is: Question: Can we cut short its project completion time? If so, how! Chapter 8 - Project Management

3 Project Crashing Solution!
Yes, the project duration can be reduced by assigning more resources to project activities. But, doing this would somehow increase our project cost! How do we strike a balance? Project crashing is a method for shortening project duration by reducing one or more critical activities to a time less than normal activity time.

4 Trade-off concept Here, we adopt the “Trade-off” concept
We attempt to “crash” some “critical” events by allocating more resources to them, so that the time of one or more critical activities is reduced to a time that is less than the normal activity time. How to do that: Question: What criteria should it be based on when deciding to crashing critical times?

5 Example – crashing (1) Max weeks can be crashed The critical path is 1-2-3, the completion time =11 How? Path: = 5+6=11 weeks Path: 1-3 = 5 weeks Now, how many days can we “crash” it? Normal weeks 2 6(3) 5 (1) 3 1 5(0)

6 Example – crashing (1) 6(3) 5 (1) 5(0)
2 6(3) 5 (1) 3 1 5(0) The maximum time that can be crashed for: Path = = 4 Path 1-3 = 0 Should we use up all these 4 weeks?

7 Example – crashing (1) 6(3) 5 (1) 5(0) 3(0) 4(0)
2 6(3) 5 (1) 3 1 5(0) If we used all 4 days, then path has (5-1) + (6-3) = 7 completion weeks Now, we need to check if the completion time for path 1-3 has lesser than 7 weeks (why?) Now, path 1-3 has (5-0) = 5 weeks Since path 1-3 still shorter than 7 weeks, we used up all 4 crashed weeks Question: What if path 1-3 has, say 8 weeks completion time?

8 Example – crashing (1) Such as 6(3) 5 (1) 8(0)
2 6(3) 5 (1) 3 1 8(0) Now, we cannot use all 4 days (Why?) Because path will not be critical path anymore as path 1-3 would now has longest hour to finish Rule: When a path is a critical path, it will not stay as a critical path So, we can only reduce the path completion time to the same time as path (HOW?)

9 Example – crashing (1) Solution: 6(3) 5 (1) 8(0)
2 6(3) 5 (1) 3 1 8(0) We can only reduce total time for path = path 1-3, that is 8 weeks If the cost for path 1-2 and path 2-3 is the same then We can random pick them to crash so that its completion Time is 8 weeks

10 Example – crashing (1) Solution: 4(0) 4(1) 6(3) 5 (1) 8(0) 3(0) OR
2 6(3) 5 (1) 3 1 8(0) 3(0) OR 5 (1) 6(3) 2 1 3 8(0) Now, paths and 1-3 are both critical paths

11 AOA Network for House Building Project
The Project Network AOA Network for House Building Project Figure 8.6 Expanded Network for Building a House Showing Concurrent Activities Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

12 Project Crashing and Time-Cost Trade-Off Example Problem (1 of 5)
Figure The Project Network for Building a House

13 Project Crashing and Time-Cost Trade-Off Example Problem (3 of 5)
Table 8.4

14 Project Crashing and Time-Cost Trade-Off Example Problem (2 of 5)
Crash cost & crash time have a linear relationship: Figure 8.20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

15 Project Crashing and Time-Cost Trade-Off
General Relationship of Time and Cost (2 of 2) Figure 8.23 The Time-Cost Trade-Off Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

16 Project Crashing and Time-Cost Trade-Off Example Problem (4 of 5)
Figure 8.21 Network with Normal Activity Times and Weekly Crashing Costs

17 Project Crashing and Time-Cost Trade-Off Example Problem (5 of 5)
As activities are crashed, the critical path may change and several paths may become critical. Figure 8.22 Revised Network with Activity 1 Crashed

18 Project Crashing and Time-Cost Trade-Off
Project Crashing with QM for Windows Exhibit 8.16

19 Formulating as a Linear Programming Model
AOA Network for House Building Project Figure 8.6 Expanded Network for Building a House Showing Concurrent Activities Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

20 Formulating as a Linear Programming Model
Example Problem Formulation and Data (1 of 2) Figure 8.24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

21 Example Problem Formulation and Data (2 of 2)
The CPM/PERT Network Example Problem Formulation and Data (2 of 2) Minimize Z = x1 + x2 + x3 + x4 + x5 + x6 + x7 subject to: x2 - x1  12 x3 - x2  8 x4 - x2  4 x4 - x3  0 x5 - x4  4 x6 - x4  12 x6 - x5  4 x7 - x6  4 xi, xj  0 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

22 Formulating as a Linear Programming Model
The CPM/PERT Network Formulating as a Linear Programming Model The objective is to minimize the project duration (critical path time). General linear programming model with AOA convention: Minimize Z = xi subject to: xj - xi  tij for all activities i  j xi, xj  0 Where: xi = earliest event time of node i xj = earliest event time of node j tij = time of activity i  j i Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

23 Project Crashing with Linear Programming
Example Problem – Model Formulation Minimize Z = $400y y y y y y y67 subject to: y12  5 y12 + x2 - x1  x7  30 y23  3 y23 + x3 - x2  xi, yij ≥ 0 y24  1 y24 + x4 - x2  4 y34  0 y34 + x4 - x3  0 y45  3 y45 + x5 - x4  4 y46  3 y46 + x6 - x4  12 y56  3 y56 + x6 - x5  4 y67  1 x67 + x7 - x6  4 xi = earliest event time of node i xj = earliest event time of node j yij = amount of time by which activity i  j is crashed Objective is to minimize the cost of crashing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


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