Activity Crashing – Part 3

Subscribe to our courses and. get 50% discount

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 the previous parts, I described how to calculate the crash cost per period and we executed the actual crashing of the project.
At the end of the crashing, we found the different durations and the related costs. With this information, we can draw the relationship between project duration and cost. The team can use this to calculate the cost of the project with the desired duration. Another application of crashing is the economic solution where the crashing is used to compensate for fines and project management itself (shorter project = cheaper project management) or to profit from rewards. As long as the crash cost is smaller than the sum of fines and project management or rewards and project management, the total cost of the project will decrease until a minimum value is reached.

More about our online courses:

Apply our Voucher for 50% discount of public price:


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

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.

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.

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.


Follow me on FB for more Project Management tips and tricks:

#PMP #ProjectManagement #DeCeusterAcademy 

Welcome Back

Pick Up Where You Left Off