EXPEDITING A

PROJECT
Crash Cost
Two main important things in doing crash cost (rule
of thumb!)

• Crash the least cost activities before more costly one

• There is no point in crashing activities not on the critical

path because the project’s duration would not be
shortened.

• Thus, crash the activity on Critical path!

Management for Engineers

The Critical Path Method

○ Normal Duration Estimates

○ Normal Costs

○ Crash Duration Estimates

○ Crash Costs

○ Crash Cost Per Day

Normal Duration - Crash Duration

Crash Cost - Normal Cost

Management for Engineers

 Table for Project A

Activity Predecessor Normal Crash Normal Crash Cost Cost per

Duration Duration Cost Day

a - 6 5 60 90 30/d

b - 7 4 50 150 33/d

c a 6 4* 100 160 N.A.

d a 7 7 30 30 N.A.

e b 5 4 70 85 15/d

f c 9 7 40 120 40/d

g d, e 7 4 50 230 60/d

Project’s total cost = RM 400

Management for Engineers

First Step : draw AON

6 12
c 6
0 6 12 21
6 12
a 6 f 9
6 13
12 21

Finish
0 6 d 7
Start

13 20
0 7 7 14 g 7
b 7 7 12
e 5 14 21
2 9
9 14

Mark the critical path – a - c - f

Management for Engineers

To crash 1 day – from 21 days to 20 days

6 12
c 6
0 6 12 21
6 12
a 6 f 9
6 13
12 21

Finish
0 6 d 7
Start

13 20
0 7 7 14 g 7
b 7 7 12
e 5 14 21
2 9
9 14

Select the cheapest crash cost among a, c, and f activities

Management for Engineers

 Table for Project A

Activity Predecessor Normal Crash Normal Crash Cost Cost per

Duration Duration Cost Day

a - 6 5 60 90 30/d

b - 7 4 50 150 33/d

c a 6 4* 100 160 N.A.

d a 7 7 30 30 N.A.

e b 5 4 70 85 15/d

f c 9 7 40 120 40/d

g d, e 7 4 50 230 60/d

• a - $30 per day Choose this

• c - cannot be crashed for a single day ( straight 2 days)
• f - $40 per day
Management for Engineers
 New AON for Project A
5 11
c 6
0 5 11 20
5 11
a 5 f 9
5 12
11 20

Finish
0 5 d 7
Start

12 19
0 7 6 13 g 7
b 7 7 12
e 5 13 20
1 8
8 13

• New project’s cost = $400 + $30 = $430

Management for Engineers

 To crash 2 days – from 21 days to 19 days

Table for Project A

Activity Predecessor Normal Crash Normal Crash Cost Cost per
Duration Duration Cost Day

a - 6 5 60 90 30/d

b - 7 4 50 150 33/d

c a 6 4* 100 160 N.A.

d a 7 7 30 30 N.A.

e b 5 4 70 85 15/d

f c 9 7 40 120 40/d

g d, e 7 4 50 230 60/d

Project’s total cost = RM 400

Management for Engineers

To crash 2 days – from 21 days to 19 days
6 10
12
c 4
6
0 6 12
10 21
19
6 12
a 6 f 9
6 13
12 21

Finish
0 6 d 7

Start
13 20
0 7 7 14 g 7
b 7 7 12
e 5 14 21
2 9
9 14 Original AON
Modified AON

❑Let say, crash ‘c’ by two days that will cost $60
❑ But by crashing ‘c’, ‘a’ will remain 6 days, ‘d’ – 7 days
and ‘g’ – 7 days that total 20 days (new critical path)

Management for Engineers

 Crash for 19 days (better way)
5 11
c 6
0 5 11 19
5 11
a 5 f 8
5 12
11 19

Finish
0 5 d 7
Start
12 19
0 7 5 12 g 7
b 7 7 12
e 5 12 19
0 7
7 12
○ Crash 1 day at task a, as before.

○ Another 1 day:
• May choose a or f, but ‘a’ was crash to maximum 1 day.
• This lead to the only choice by crash the ‘f’
• Then, the extra cost will be $30 + $40 = $70

○ New project cost = $400 + $30 + $40 = $470

○ 2 critical path???? Is it OK?

Management for Engineers
 Table for Project A

Activity Predecessor Normal Crash Normal Crash Cost Cost per

Duration Duration Cost Day

a - 6 5 (1) 60 90 30/d

b - 7 4 (3) 50 150 33/d

c a 6 4* (2*) 100 160 N.A.

d a 7 7 (0) 30 30 N.A.

e b 5 4 (1) 70 85 15/d

f c 9 7 (2) 40 120 40/d

g d, e 7 4 (3) 50 230 60/d

Management for Engineers

To Crash 3 days
(from 21 to 18)

6 12
c 6
0 6 12 21
6 12
a 6 f 9
6 13
12 21

Finish
0 6 d 7
Start

13 20
0 7 7 14 g 7
b 7 7 12
e 5 14 21
2 9
9 14

Original AON

Management for Engineers

Crash from 21 to 18 days (crash 3
days)
5 9
c 4
0 5 9 18
5 9
a 5 f 9
5 12
9 18

Finish
0 5 d 7
Start
12 18
0 7 5 12 g 6
b 7 7 12
e 5 12 18
0 7
7 12

• Crash task a for 1 day

• Instead of to crash ‘f’ for another day, it is cheaper to crash ‘c’ by
two days and to put leave ‘f’ with 9 days duration
• It is necessary to crash ‘g’ by one day to reduce duration to 18 days
• New project cost = $400 + $30 (a) + $60 (2c) + $60 (g) = $550
• How many critical path now???? Management for Engineers
Crash for 17 days (crash for 4 days)
5 9
c 4
0 5 9 17
5 9
a 5 f 8
5 12
9 17

Finish
0 5 d 7
Start
12 17
0 7 5 12 g 5
b 7 7 12
e 5 12 17
0 7
7 12

• This could be done by crashing activity ‘f’ and ‘g’ for another day (from
crashed to 18 days)
• New project cost = $400 + $30 (a) + $60 (2c) + $40 (f) + $120 (2g) =
$650
Management for Engineers
Crash for 16 days
5 9
c 4
0 5 9 16
5 9
a 5 f 7
5 12
9 16

Finish
0 5 d 7
Start
12 16
0 7 5 12 g 4
b 7 7 12
e 5 12 16
0 7
7 12

• The only choise is to crash activity ‘f’ and ‘g’ for another day
• New project cost = $400 + $30 (a) + $60 (2c)+ $80 (2f) + $180 (3g)=
$750
Management for Engineers
Project Cost Versus Project Duration for Sample Crash
Problem

High Crash days = Higher cost

Management for Engineers

EXERCISE (FE 2014_2015)
○ Table a is the activities related to develop UniMAP Data Center project (all times are in days):

Table 3.1

Activity Predecessor Normal Normal Cost Crash Time Crash Cost

Time (RM) (RM)
a - 15 20,000 12 26,000
b - 10 35,000 8 45,000
c b 12 17,000 8 21,000
d a,c 5 5,500 - -
e a,c 18 26,200 14 31,000
f b 24 105,000 20 117,000
g d 15 15,000 12 17,100
h e,f 6 12,000 - -

Management for Engineers

 QUESTIONS

○ Develop an AON network and find the critical path, critical time and cost for an all-normal
level of project activity.

○ Suggest the optimal way of getting a 40-day delivery time. What is the project cost?

○ Deduce the shortest path delivery time for the project. What is the cost and duration of the
project?

Management for Engineers

EXERCISE (FE 2014_2015)
○ Table a is the activities related to develop UniMAP Data Center project (all times are in
days):

Table 3.1

Normal Normal Crash Crash Cost Total crash

Activity Predecessor Cost per day
Time Cost (RM) Time (RM) days
a - 15 20,000 12 26,000
b - 10 35,000 8 45,000
c b 12 17,000 8 21,000
d a,c 5 5,500 - -
e a,c 18 26,200 14 31,000
f b 24 105,000 20 117,000
g d 15 15,000 12 17,100
h e,f 6 12,000 - -

Management for Engineers

EXERCISE (FE 2014_2015)
○ Table a is the activities related to develop UniMAP Data Center project (all times are in
days):

Table 3.1

Activity Predecessor Normal Normal Crash Crash Cost Total crash Cost per day
Time Cost (RM) Time (RM) days
a - 15 20,000 12 26,000 3 2,000
b - 10 35,000 8 45,000 2 5,000
c b 12 17,000 8 21,000 4 1,000
d a,c 5 5,500 - -
e a,c 18 26,200 14 31,000 4 1,200
f b 24 105,000 20 117,000 4 3,000
g d 15 15,000 12 17,100 3 700
h e,f 6 12,000 - -

Management for Engineers

 QUESTIONS

○ Develop an AON network and find the critical path, critical time and cost for an all-normal level of
project activity.
• Answer , Critical path = b-c-eh, duration = 46 days, cost = RM 235, 700

○ Suggest the optimal way of getting a 40-day delivery time. What is the project cost?
• Crash c to 4 days, crash e to 2 days,
• cost = 235, 700 + 4,000 + 2, 400 = RM 242,100

○ Deduce the shortest path delivery time for the project. What is the cost and duration of the
project?
• 36 days
• Crash b= 2 days, c = 4 days, e = 4 days , f = 2 days
• 235700 + 10000+ 4000 + 4800 + 6000 = RM 260,500

Management for Engineers

Thank
You
Muammar Mohamad Isa
+6 013 3223 579
muammar@unimap.edu.my
http://ftken.unimap.edu.my