Activity Crashing – Part 1
Activity Crashing – Part 1
Subscribe to one of our courses and get 50% discount! See more below.
When we determine the duration of the project using the critical path method, we determine the duration estimate of the project. In some cases, we may find out that the duration is too long for the sponsor or our client and we have to reduce the duration using a duration reduction method like activity crashing.
In this first part, I will address the principle of crashing and how we can calculate the crash cost per time unit of the activities.
The information we start from is the normal duration of the activity and its total cost. For each activity, we have to determine the time we can crash the activities which lead to the crashed duration and of course what is the extra cost we have because of the crashing. The result here is the crashed time and the crashed cost.
The relationship between duration and cost is assumed to be linear and we can use the slope equation of a line to determine the crash cost per time unit or period.
Part 2: Application of the crashing on the project
Part 3: Overview of the project cost as a function of duration and conclusions
More about our online courses:
More about our online courses:
Apply our Voucher for 50% discount of public price:
DCA4FRIENDS
Project Management Basics
Learn the basics about projects and project management in this 14.5-hour course and get yourself a head start over your colleagues and peers
https://deceusteracademy.com/courses/project-management-tools-and-techniques/
Fast Track to Earned Value Management
Get a quick overview of how earned value management works and how you can use it for your projects. Understanding EVM will give you a clear advantage over other project managers.
https://deceusteracademy.com/courses/fast-track-to-earned-value-management/
Quality for Operations and Project Managers
Quality is a very important issue in operations management but also in project management. Understanding the principles of quality, the tools and the applications will ensure that your projects are providing the expected quality and your stakeholders will be very satisfied.
https://deceusteracademy.com/courses/quality-for-operations-and-project-managers/
Introduction to time value of money
Financial parameters are very import when considering the financial viability of the project. Understand the principle of time value of money, compounded interest and discover the main financial parameters that you can use to evaluate the financial performance of your project like PBT, ROI, NPV, and IRR.
https://deceusteracademy.com/courses/time-value-of-money/
Website:
Follow me on FB for more Project Management tips and tricks:
https://www.facebook.com/deceusteracademy/
#PMP #ProjectManagement #DeCeusterAcademy