Activity Crashing – Part 3

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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.

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