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The act of breaking down a cost summary into its constituents and studying
and reporting on each factor.
The comparison of costs (as of standard with actual or for a given period with
another) for the purpose of disclosing and reporting on conditions subject to
improvement
A project cost analysis is a process that professionals can use to determine the
value of a project's costs and benefits, which highlights if a project is feasible.
After the list, the company adds together the total value of their costs and
benefits, then subtracts the total cost from the benefits, which shows if a
project is profitable and meets their set price. For example, if a project cost
analysis shows that a project's materials cost is higher than the profit that a
company makes off the project, then they may decide against pursuing the
project.
7. Perform subtraction
To complete your project cost analysis, perform the necessary subtraction that
shows your project's overall profitability. Subtract the project's total costs from
the estimated benefits.
2. Resource Availability
If more resources become available, you might decide to allocate them to a
certain project and finish it ahead of schedule. Depending on the
situation, schedule crashing can require additional finances, assigning new
people to the project, or any other relevant extra assets.
COMMON REASONS FOR CRASHING A
PROJECT
3. Avoiding Future Delays
In many cases, if one of your projects is behind schedule, it can cause future
delays and impact the completion of another task. To avoid that, you can crash
one project to ensure the completion of multiple others within the set time limits
4. Time Bonuses
While some companies may impose penalties for a project delay, others may
reward completion before the set date.
5. Extra Manpower
Companies often onboard new members or train them for a specific position.
Sometimes, you may use new hires and assign them on a project until they
complete their training and crash the project with an additional workforce.
PROJECT CRASHING EXAMPLE
You’re a project manager working for a construction company, and your latest
task is to build a new facility. Despite all the planning, bad weather has caused
delays, and it’s taking significantly longer for the concrete to dry before you
can continue the construction.
PROJECT CRASHING EXAMPLE
Now your team has much less time to complete the work before a group of
roofers comes along to finish the construction. What’s more, the roofers are
only available for a short period before they have to move on to their next
project, so extending your timeframe isn’t an option.
Therefore, you have two choices. You can wait until the next team of roofers
becomes available, but that can cause more delays down the line and the
client’s dissatisfaction. Alternatively, you can crash the project by adding more
resources to specific tasks and continue as you have planned initially.
SUMMARY