Crashing of a Project

Crashing means to reduce the duration of a project.

 Direct cost will increase as we have to give more intensity to activity.

The crashing will be successful if we can reduce both total project cost and total project
duration.
Project Cost = Normal Direct Cost + Crash Cost + Indirect cost per day * number of days.

Activity Normal Crash Normal Crash Cost Slope Crash

Duration duration direct cost Cost Status
1—2 (A) 5 2 2500 3000 166.66
1—3(B)c 8 6 1200 2000 400 2 days
2—4(C) 7 5 2000 3000 500
3—4(D)c 8 5 1500 3000 500 2 days
4—5( (E))c 6 3 1000 2500 500 3 days
5—6(F)c 7 7 1500 1500 ------------- Non
crashable
4—6(G) 5 3 2000 5000 1500 Non
crashable
11700

Indirect cost per day = 650.

Crash the project to the optimum level and compare the crash cost and time with the
normal one

Cost Slope= The extra cost which is required to reduce an activity by one day.
Cost Slope =[Crash cost – Normal cost]/[Normal Duration – Crash Duration]

6
G(5)
F(7)

A(5) C(7
2 4 5
1 E(6)
B(8) (6) (3)
D(8)
(6)
3
 Path Activities Normal 1st crash( B 2nd Crash E 3rd Crash D
Duration by two by 3 days by 2 days
days)
Path 1 A—C--G 17 17 17 17
Path 2 B—D--G 21 19 19 17
Path 3 B—D—E--F 29 27 24 22
Path 4 A—C—E--F 25 25 22 22

Normal Duration of the project is 29 days

Project Total Normal Total Crash cost

Total indirect Total Project
Duration Cost cost Cost
29 11700 0 650*29 30550
27 11700 400*2 650*27 30050
24 11700 400*2 + 500*3 650*24 29600
22 11700 800+1500+500*2 650*22 29300

No crashing is possible after this as the critical path is crashed completely.

Comparison between normal and crash
Normal Duration = 29 days with a cost of 30550
Crash Duration = 22 days with a cost of 29300

Linear Programming Problem(LPP)

Modern enterprise manufactures two products P and Q. Both products require the raw
materials X and Y. Each unit of P requires 30 kg. of raw materials X and Y in the ratio 2:1
respectively and each unit of Q requires 20 kg. of raw materials X and Y in the ratio of 3:2
respectively. The selling price per unit of P is Rs. 150 and the profit margin is 40%. The
selling price per unit of Q is Rs. 125 and profit margin is 32%. 2500 Kg. of X and 1500 Kg. of Y
is available in the inventory. The policy of the company is to maintain 20 % of the quantities
as closing stock at the end of the week. Objective of the company is to maximize the profit.

Formulate and solve the problem graphically.

Objective: To earn maximum profit

Variables: Number of units of P(p)

Number of units of Q(q)

Product X Y Raw material Selling Profit Profit
requirement Price margin

P(p) 20 10 30 150 40% 60

Q(q) 12 8 20 125 32% 40

Availability 2500 1500

Consumable 2000 1200

quantity

Closing 500 300

stock

Formulation of LPP
Objective Function
Maximize Profit(Z)= 60p+40q
Subject to the constraints
Raw material X 20p+12q<=2000
Raw Material Y 10p+12q<= 1200
Non negativity constraint
p,q>= 0
There are two methods of solving LPP
1. Graphical Method ( if the number of variable is 2)
2. Simplex Method