Network Crashing All in One

Network Crashing
Module 8
Cost consideration in
PERT/CPM
• Direct Cost: This cost is directly dependent upon the amount of
resources in the execution of individual activities. Eg: Manpower
loading, materials consumed etc. The direct cost increases if the
activity duration is to be reduced.
• Indirect Cost: This cost is associated with overhead expenses such as

managerial services, indirect supplies, general administration etc. The
indirect cost is computed on a per day, per week or per month basis.
The indirect cost decreases if the activity duration is to be reduced.
• Direct costs are activity specific where as indirect cost is whole

process specific.
• The process of reducing the activity duration by putting on extra

effort is called crashing the activity.
•• The
crash time represents the minimum activity duration time that is possible and
any attempts to further crash would only raise the activity cost without reducing
the time. The activity cost corresponding to the crash time is called the crash cost,
which is the minimum direct cost required to achieve the crash performance time.
• The Normal cost is equal to the absolute minimum of the direct cost required to
perform an activity. The corresponding time duration taken by an activity is know
as the normal time.
• Cost Slope
• Crash Cost Slope
• Cost slope indicates the increase in cost, per unit reduction in time. It is called cost
time tradeoff. It varies from activity to activity.
• Here the assumption is that the relationship between normal time and cost as well
as crash time and cost for an activity is assumed to be linear.
• Total project cost= Direct cost + Indirect cost.

Crashing of Project Network
Eg1: Consider the data of a project. If the indirect cost per week is
Rs 200, find the optimal crashed project completion time.
Activity Normal Time (Weeks) Normal Cost (Rs) Crash Time Crash cost (Rs)
(Weeks)
1-2 7 700 4 850

1-3 5 500 3 700
1-4 8 600 5 1200
2-5 9 800 7 1250
3-5 5 700 3 1000
3-6 6 1100 5 1300
4-6 7 1200 5 1450
5-7 2 400 1 500
6-7 3 500 2 850
Crash Cost Slope
Slope = (850-700)/(7-4) = 50
(700-500)/(5-3) = 100
Activity Normal Time Normal Cost Crash Time Crash cost Crash cost
(Weeks) (Rs) (Weeks) (Rs) slope
1-2 7 700 4 850 50

1-3 5 500 3 700 100
1-4 8 600 5 1200 200
2-5 9 800 7 1250 225
3-5 5 700 3 1000 150
3-6 6 1100 5 1300 200
4-6 7 1200 5 1450 125
5-7 2 400 1 500 100
6-7 3 500 2 850 350
6500
All Paths
1-2-5-7 = 7+9+2 =18*

1-3-5-7 = 5+5+2 =12
1-3-6-7 = 5+6+3 =14
1-4-6-7 = 8+7+3 = 18*
Total Cost = Direct Cost + Indirect Cost = 6,500+ (18*200) = Rs
10,100.
• 1st Crash Limit and cost slope table to find which activity to crash
Critical Path Critical Activity Crash Limit Cost Slope
1-2-5-7 1-2 7-4=3 50 *
2-5 9-7=2 225
5-7 2-1=1 100
1-4-6-7 1-4 3 200
4-6 2 125*
6-7 1 350
• Find least cost slope values in both the paths and they are, in 1 st Critical Path is Rs.50 and 2nd
Critical path Rs.125
• Crash the activities 1-2 and 4-6 by 1 week each.
• After crashing by 1 week the new network will look like
1-2-5-7 = 6+9+2 =17*
1-3-5-7 = 5+5+2 =12
1-3-6-7 = 5+6+3 =14
1-4-6-7 = 8+6+3 = 17*
• Then the total cost after crash would be = 10,100+(50+125)-200 = 10,075.
• Hence the total cost is reduced after 1 week’s crash.
2nd Crash Limit and cost slope table
1-2-5-7 1-2 3-1=2 50 *
2-5 2 225
5-7 1 100
1-4-6-7 1-4 3 200
4-6 2-1=1 125*
6-7 1 350
• Find least cost slope values in both the paths and they are, in 1st Critical Path is Rs.50 and 2nd
Critical path Rs.125
• The new network after crashing would look like
1-2-5-7 = 5+9+2 =16*

1-3-5-7 = 5+5+2 =12
1-3-6-7 = 5+6+3 =14
1-4-6-7 = 8+5+3 = 16*
• Hence the total cost is reduced after 1 week’s crash.
• Now we can proceed with further crashing so as to check the change in the cost.
• 3rd Crash Limit and cost slope table
1-2-5-7 1-2 2-1=1 50 *
2-5 2 225
5-7 1 100
1-4-6-7 1-4 3 200*
4-6 1-1=0 125
6-7 1 350
• Find least cost slope values in both the paths and they are in 1st Critical Path is
Rs.50 and 2nd Critical path Rs.200.
• After crashing the network would look like

• Hence the total cost is increased now , which means previous step is the optimal
time.
Eg 2: Determine the optimum project duration and cost for the
following data. Perform crash testing. Indirect cost is Rs 70 per day.
Activity Normal Time (Days) Normal Cost (Rs) Crash Time (Days) Crash cost (Rs)
1-2 8 100 6 200

1-3 4 150 2 350
2-4 2 50 1 90
2-5 10 100 5 400
3-4 5 100 1 200
4-5 3 80 1 100
Crash Cost Slope
Slope = (200-100)/(8-6) = 50
(350-150)/(4-2) = 100
Activit Normal Time Normal Cost Crash Time Crash cost Crash Cost
y (Days) (Rs) (Days) (Rs) Slope
1-2 8 100 6 200 50

1-3 4 150 2 350 100
2-4 2 50 1 90 40
2-5 10 100 5 400 60
3-4 5 100 1 200 25
4-5 3 80 1 100 10
580
•
• All Paths
1-2-5 = 8+10 =18*
1-2-4-5 = 8+2+3 =13
1-3-4-5 = 4+5+3 =12
• Total Cost = Direct Cost + Indirect Cost = 580 + (70*18) = Rs 1,840.

• 1st Crash Limit and cost slope table

1-2-5 1-2 8-6=2 50 *
2-5 10-5=5 60
• Find least cost slope value in the critical path that is 1-2 with slope of Rs50.
• Crash the activity 1-2 by 1 day.
• The new network after one day crash would look like
All Paths
1-2-5 = 7+10 =17*
1-2-4-5 = 7+2+3 =12
1-3-4-5 = 4+5+3 =12
• Then the total cost after crash would be = 1,840 + 50 - 70 = 1,820 for 17 days.
• Hence the total cost is reduced after 1 day’s crash.
• 2nd Crash Limit and cost slope table

1-2-5 1-2 2-1=1 50 *
2-5 5 60
The new network after crashing would look like

• All Paths
1-2-5 = 6+10 =16*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12
• Then the total cost after crash would be = 1,820 + 50 - 70 = 1,800 for 16 days
1-2-5 1-2 1-1=0 50
2-5 5 60*
• Find least cost slope value in the critical path that is 2-5 with slope of Rs 60 and the other
activity cant be crashed any more as it has reached its crash limit.
• The new network after one day crash would be
All Paths
1-2-5 = 6+9 =15*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12

1-2-5 1-2 0 50
2-5 4 60*

All Paths
1-2-5 = 6+8 =14*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12
• 5th Crash Limit and cost slope table

1-2-5 1-2 0 50
2-5 3 60*
All Paths
1-2-5 = 6+7 =13*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12
• Hence we can proceed with further crashing so as to check the change in the cost.
1-2-5 1-2 0 50
2-5 2 60*
All Paths
1-2-5 = 6+6 =12*
1-2-4-5 = 6+2+3 =11
1-3-4-5 = 4+5+3 =12 *
1-2-5 1-2 0 50
2-5 1 60*
1-3-4-5 1-3 2 100
3-4 4 25
4-5 2 10*
• Find least cost slope values in the 2 critical paths that is 2-5 with slope of Rs 60 and 4-5 with
cost slope of Rs10.
• Crash the two activities 2-5 and 4-5 by 1 day.
• 1-2-5=11
• 1-2-4-5=10
• 1-3-4-5=11
• Then the total cost after crash would be = 1,760 + 60 +10- 70 = 1,760 for 11 days
• Hence the total cost remains same after 1 day’s crash.
• Further crashing cant be done as all the activities of the critical path 1-2-5 have reached
their crash limits. Although you can crash 4-5 in 1-3-4-5 but still the longest path will be 1-2-
5. Hence we stop the crashing here and the total cost would be Rs 1760 at 11 days time.
Eg 3: The following table gives the activities of a construction project
and other relevant information. Overhead of the project is Rs. 60 per
day.
Activity Normal Duration (Days) Crash duration (Days) Cost of crashing (Rs per day)
1-2 9 6 20
1-3 8 5 25
1-4 15 10 30
2-4 5 3 10
3-4 10 6 15
4-5 2 1 40
Ans:
All paths are
1-2-4-5=16
1-4-5=17
1-3-4-5=20
Total cost= 20*60=1200

• 1st Crash Limit and cost slope table
1-3-4-5 1-3 8-5=3 25
3-4 10-6=4 15*
4-5 2-1=1 40
All Paths
1-2-4-5 = 16
1-4-5 = 17
1-3-4-5 = 19*
• Then the total cost after crash would be = (19*60)+15= 1140+15 = 1,155 for 19 days.
1-3-4-5 1-3 3 25
3-4 3 15*
4-5 1 40
All Paths
1-2-4-5 = 16
1-4-5 = 17
1-3-4-5 = 18*
• Then the total cost after crash would be = (18*60)+15+15= 1080+30 = 1,110 for
18 days.
• 3rd Crash Limit and cost slope table
1-3-4-5 1-3 3 25
3-4 2 15*
4-5 1 40
All Paths
1-2-4-5 = 16
1-4-5 = 17*
1-3-4-5 = 17*
• Then the total cost after crash would be = (17*60)+15+15+15= 1020+45 = 1,065
for 17 days.
1-4-5 1-4 5 30
4-5 1 40*
1-3-4-5 1-3 3 25
3-4 1 15
4-5 1 40*
• Find least cost slope value in the critical path that is by crashing common activity of 4-5 we will reduce
cost by 40 where as if we consider 3-4 and 1-4 total cost will be 45 hence we crash common activity 4-5
by 1 day.
All Paths
1-2-4-5 = 15
1-4-5 = 16*
1-3-4-5 = 16*
• Then the total cost after crash would be = (16*60)+15+15+15+40= 1,045 for 16 days.
1-4-5 1-4 5 30*
4-5 0 40
1-3-4-5 1-3 3 25
3-4 1 15*
4-5 0 40
• Crash activities 1-4 and 3-4 by 1 day each

All Paths
1-2-4-5 = 15*
1-4-5 = 15*
1-3-4-5 = 15*
• Then the total cost after crash would be = (15*60)+15+15+15+40+30+15= 1,030 for 15 days.
Critical Path Critical Crash Limit Cost Slope
Activity
1-2-4-5 1-2 3 20
2-4 2 10*
4-5 0 40
1-4-5 1-4 4 30*
4-5 0 40
1-3-4-5 1-3 3 25*
3-4 0 15
• Crash activities 2-4,1-4 and 1-3 by 1 day each 4-5 0 40
All Paths
1-2-4-5 = 14
1-4-5 = 14
1-3-4-5 = 14
• Then the total cost after crash would be = 1,030-60+10+30+25=1,035 for 14 days.
• Hence the total cost is increased now , which means previous step is the optimal time.
• Hence the optimal time period is 15 weeks and minimum total cost in Rs 1,030.

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Network Crashing

• Indirect Cost: This cost is associated with overhead expenses such as

• Direct costs are activity specific where as indirect cost is whole

• The process of reducing the activity duration by putting on extra

• Total project cost= Direct cost + Indirect cost.

1-2 7 700 4 850

1-2 7 700 4 850 50

1-2-5-7 = 7+9+2 =18*

1-2-5-7 = 5+9+2 =16*

• Then the total cost after crash would be = 10,050+(50+200)-200 = 10,100.

1-2 8 100 6 200

1-2 8 100 6 200 50

• Total Cost = Direct Cost + Indirect Cost = 580 + (70*18) = Rs 1,840.

Critical Path Critical Activity Crash Limit Cost Slope

Critical Path Critical Activity Crash Limit Cost Slope

The new network after crashing would look like

Critical Path Critical Activity Crash Limit Cost Slope

• The new network after one day crash would be

Critical Path Critical Activity Crash Limit Cost Slope

Total cost= 20*60=1200

• Crash activities 1-4 and 3-4 by 1 day each

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