CEP473

CONSTRUCTION METHODS AND

PROJECT MANAGEMENT
MODULE 7-TIME/COST TRADE OFF

By: Brian Jhay P. Guzman, CE, RMP, ME-I

Reducing Time and Cost
Reducing Time and Cost
Reducing Time and Cost
Procedure in Crashing Project Time
Example 1.
From the following PREDECESSORS ACTI VI TY DURATI ON (Days)
data, develop an
optimum time cost - A 8
plan assuming that A B 12
the indirect cost is
Php 10,000. - C 7
C D 6
D E 9
B,E F 4
Example 1.
STEP 1.
Obtain an estimate
of regular and crash
time plus the cost of
each activity.

ACTI VI TY NORMAL TI ME CRASH TI ME AVAI LABLE DAYS COST PER DAY TO CRASH (Php)
A 8 8 0 -
B 12 10 2 6,000
C 7 6 1 2,000
D 6 2 4 6,000
E 9 7 2 4,500
F 4 2 2 7,000
Example 1.
STEP 2. Path A-B-F = 8 + 12 + 4 = 24 Days
Find the length of the Path C-D-E-F = 7 + 6 + 9 + 4 = 26 Days
activities in each
path.
Example 1.
STEP 3. Path A-B-F = 8 + 12 + 4 = 24 Days
Determine which Path C-D-E-F = 7 + 6 + 9 + 4 = 26 Days
activities are on the
critical path.

PREDECESSORS ACTI VI TY SUCESSORS DURATI ON (Days) ES EF LF LS TF STATUS

- A B 8 0 8 10 2 2
A B F 12 8 20 22 10 2
- C D 7 0 7 7 0 0 CRI TI CAL
C D E 6 7 13 13 7 0 CRI TI CAL
D E F 9 13 22 22 13 0 CRI TI CAL
B,E F - 4 22 26 26 22 0 CRI TI CAL
Example 1. PATH DURATI ON ACTI VI TY AVAI LABLE DAYS COST PER DAY TO CRASH (Php)
STEP 4. A-B-F 24 A - NO REDUCTI ON
B 2 6,000
Rank the Critical Path
F 2 7,000
activities in the order of
lowest crashing cost and
C-D-E-F 26 C 1 2,000
find out how many number
E 2 4,500
of days can be crashed.
D 4 6,000
F 2 7,000

CRASH C 1 DAY
CRASH COST 1 X 2,000 2,000

SAVI NGS 10,000 - 2,000 8,000

THEREFORE CRASH C
Example 1. PATH DURATI ON ACTI VI TY AVAI LABLE DAYS COST PER DAY TO CRASH (Php)
STEP 5. A-B-F 24 A - NO REDUCTI ON
B 2 6,000
Continue crashing activities F 2 7,000
on the critical path until no
longer feasible.
C-D-E-F 25 C - NO REDUCTI ON
E 2 4,500
D 4 6,000
F 2 7,000

CRASH E 1 DAY
CRASH COST 1 X 4,500 4,500

SAVI NGS 10,000 - 4,500 5,500

THEREFORE CRASH E
 PATH DURATI ON ACTI VI TY AVAI LABLE DAYS COST PER DAY TO CRASH (Php)

Example 1. A-B-F 24 A
B
F
-
2
2
NO REDUCTI ON
6,000
7,000
STEP 5.
C-D-E-F 24 C - NO REDUCTI ON
Continue crashing activities E 1 4,500
on the critical path until no D 4 6,000
longer feasible. F 2 7,000

CRASH E 1 DAY
CRASH COST 1 X 4,500 4,500
AND
CRASH B 1 DAY
CRASH COST 1 X 6,000 6,000

TOTAL CRASH COST 10,500

SAVI NGS 10,000 - 10,500 -500

OR

CRASH F 1 DAY
CRASH COST 1 X 7,000 7,000

SAVI NGS 10,000 - 7,000 3,000

THEREFORE CRASH F
Example 1. PATH
A-B-F
DURATI ON ACTI VI TY AVAI LABLE DAYS COST PER DAY TO CRASH (Php)
23 A - NO REDUCTI ON
STEP 5. B 2 6,000
Continue crashing activities F 1 7,000
on the critical path until no
longer feasible. C-D-E-F 23 C - NO REDUCTI ON
E 1 4,500
D 4 6,000
F 1 7,000

CRASH F 1 DAY
CRASH COST 1 X 7,000 7,000

SAVI NGS 10,000 - 7,000 3,000

THEREFORE CRASH F
 PATH DURATI ON ACTI VI TY AVAI LABLE DAYS COST PER DAY TO CRASH (Php)

Example 1. A-B-F 22 A
B
-
2
NO REDUCTI ON
6,000
STEP 5. F - NO REDUCTI ON

Continue crashing activities C-D-E-F 22 C - NO REDUCTI ON

on the critical path until no E 1 4,500
longer feasible. D 4 6,000
F - NO REDUCTI ON

CRASH E 1 DAY
CRASH COST 1 X 4,500 4,500
AND
CRASH B 1 DAY
CRASH COST 1 X 6,000 6,000

TOTAL CRASH COST 10,500

SAVI NGS 10,000 - 10,500 -500

THEREFORE NO ADDI TI ONAL I MPROVEMENT

Example 1.
STEP 5.
Continue crashing activities
on the critical path until no
longer feasible.

PATH N=0 1 2 3 4
A-B-F 24 24 24 23 22
C-D-E-F 26 25 24 23 22

ACTI VI TY CRASHED C E F F
TOTALCRASHI NG COST 2,000 4,500 7,000 7,000
SAVI NGS 8,000 5,500 3,000 3,000
Example 2.
Given the following data,
can the project be finished
in 18 weeks instead of 33
weeks at a cost less than
Php 75,100 in direct cost?

TI ME COST
ACTI VI TY NORMAL TI ME CRASH TI ME NORMAL CRASH AVAI LABLE WEEKS COST PER WEEK TO CRASH (Php)
A 6 2 2,000 10,000 4 2,000
B 8 3 4,000 7,000 5 600
C 7 4 2,000 3,200 3 400
D 12 8 8,000 10,000 4 500
E 7 3 2,000 5,200 4 800
F 3 1 10,000 14,000 2 2,000
G 5 2 6,000 8,100 3 700
H 11 7 6,000 9,600 4 900
I 10 6 4,000 8,000 4 1,000
44,000 75,100