CHAPTER 8:

CRASHING AND COST PLAN

Reporters:
Nelmar Laguna
Jessa Mae Latosa
Jeramy Laroga
Lea Mae Madridejo
Illustration 8-3
Time in Weeks Cost Cost
Activity
Normal Crash Normal Crash per week
1-2-(A) 6 2 2,000 10,000 2,000
1-3-(B) 8 3 4,000 7,000 600
2-4-(C) 7 4 2,000 3,200 400
3-4-D 12 8 8,000 10,000 500
3-5-(E) 7 3 2,000 5,200 800
4-6-(F) 3 1 10,000 14,000 2,000
5-6-(G) 5 2 6,000 8,100 700
5-7-(H) 11 7 6,000 9,600 900
6-7-(I) 10 6 4,000 8,000 1,000
Total 33 15 P44,000 P75,100
 C=7 F=3
2 4 6
I=10
A=6 D=12 G=5

1 3 5 7
B=8 E=7 H=11

FIGURE 8-5

The normal time Critical Path B-D-F-I is equal to 33

weeks. Direct cost is P44,000
Question: Can we finish in 18 weeks
instead of 33 weeks at cost of less
than P75,100 in direct cost
Solution:
1. Determine the different path lengths and identify
the critical path.
 C=7 F=3
2 4 6
I=10
A=6 D=12 G=5

1 3 5 7
B=8 E=7 H=11

Path Duration in weeks Path B,D,F,I with 33 weeks is the

A,C,F,I 6+7+3+10=33 critical path. Rank the critical path
B,E,H 8+7+11=26 activities in the order of crashing the
B,D,F,I 8+12+3+10=33* lowest cost and find out how many
B,E,G,I 8+7+5+10=30
number of days can be crashed.
2. Starting from Path B,D,F,I = 33weeks.
a) Along this path the list expensive activity is D. with
P500 cost per week (see tabulated data).
b) Crash this activity to its minimum time of 8 weeks.
Subtract: 12 - 8 = 4 weeks
c) Multiply: 4 weeks x P500 per week = P2,000
d) Subtract: 33 weeks - 4 weeks = 29 weeks
 C=7 F=3
2 4 6
I=10
A=6 D=12-8=4 G=5

1 3 5 7
B=8 E=7 H=8 T=29

FIGURE 8-6
3. Crash Path B,G,E,I with 30 weeks time duration
a) The least expensive activity along this path is
activity B with P600 per week (see tabulated data)
b) Crash or shorten time of B: Normal time - Crash
time. 8 - 3 weeks = 5 weeks
c) Multiply 5 weeks by P600 cost per week.
P600 x 5 = P3,000
d) After crashing the time is 30 - 5 weeks= 25 weeks
 C=7 F=3
2 4 6
I=10
A=6 D=8 G=5

1 3 5 7
B=8-3=5 E=7 H=11 T=30-5=25

FIGURE 8-7
4. Crash Path B,E,H with 27 weeks time duration
a) The least expensive activity along this path is
activity E with a cost of P800 per week
b) Subtract: Normal time - Crash time
7 – 3 X P800 = P3,200
c) After crashing the time is 3 + 3 +11 = 17 weeks
 C=7-4=3 F=3
2 4 6
I=10
A=6 D=8 G=5

1 3 5 7
B=3 E=7 H=11 T=21-4=17

FIGURE 8-8
5. Crash Path A,C,F,I with 26 weeks time duration
a) The least expensive activity along this path to crash is
activity C, with a cost of P400 per week.
b) Crash or shorten this time:
Subtract: Normal time - Crash time
7 - 4 weeks x P400 = P1,200
c) After crashing, the time duration is reduced to 23
weeks
 C=7-4=3 F=3
2 4 6
I=10
A=6 D=8 G=5

1 B=3 3 E=7 5 H=11 7 T=26-3=23

FIGURE 8-9

After crashing an activity in each path, there are still critical path more than 18 weeks
duration. Continue crashing down to have a crash level of 18 weeks.
6. Refer back to path B,D,F,I for further crashing
a) The next least expensive activity to crash is
activity I.
Subtract: Normal time - Crash time
10 - 6 weeks = 4 weeks
Multiply: 4 weeks x 1,000 = P4,000
After crashing the critical path, we have the following network diagram:

2 4 6

1 3 5 7

FIGURE 8-10
Tabulate the Result
Path Time Duration

B,D,F,I 3 + 8 + 1 + 6 = 18 weeks

B,E,G,I 3 + 3 +2 + 6 = 14 weeks

B,E,H 3 + 3 + 11 = 17 weeks

A,C,F,I 6 + 4 + 1 + 6 = 17 weeks
All Normal project cost P 44,000
Crash D: From 12 - 8 = 4 x 500 2,000
Crash B: 8-3=5x 600 3,000
Crash C: 7 - 4= 3 x 400 1,200
Crash G: 5-2=3x 700 2,100
Crash I: 10 - 6 = 4 x 1,000 4,000
Crash E: 7-3=4x 800 3,200
Crash F: 3-1=2x 2,000 4,000
Total P 63,500
The next question is:Can we reduce
the total cost of the project lower
than P63,500 and still maintain the
project time by 18 weeks?
1. By examining the network diagram of Figure 8-10, it
will be be noted that paths B,E,G,I has 14 weeks;
B,E,H=17 and A,C,F,I=17 weeks time duration.
2. If we “relax or Uncrashed” these paths to have a
duration of 18 weeks, we will have an additional
4+1+1=6 weeks time to work.
• Relaxing the activity means to extend the time of
working period. In this particular problem we relax 14
and 17 weeks to have 18 weeks duration thereby
gaining an additional 6 weeks work activities
3. Relaxing the activities not on te critical path we start
on the largest amount of cost per week.
4. The minimum direct cost of the project is:
P63 -3300 =