Академический Документы
Профессиональный Документы
Культура Документы
Rationale for
for Reducing
Reducing Project
Project Duration
Duration
Time Is Money: Cost-Time Tradeoffs
Reducing the time of a critical activity usually incurs
additional direct costs.
Cost-time solutions focus on reducing (crashing)
activities on the critical path to shorten overall duration
of the project.
Options
Options for
for Accelerating
Accelerating Project
Project Completion
Completion
Resources are not
constrained
Resources are
constrained
Fast-Tracking
Adding Resources
Critical-Chain
Scheduling Overtime
Compromise Quality
Explanation
Explanation of
of Project
Project Costs
Costs
Project Indirect Costs
Costs that cannot be associated with any particular
work package or project activity.
Supervision, administration, consultants, and interest
Direct Costs
Normal costs that can be assigned directly to a
specific work package or project activity.
Labor, materials, equipment, and subcontractors
Reducing
Reducing Project
Project Duration
Duration to
to Reduce
Reduce
Project
Project Cost
Cost
Identifying
Identifyingdirect
direct costs
coststo
toreduce
reduceproject
projecttime
time
Gather
Gatherinformation
informationabout
aboutdirect
directand
andindirect
indirect
costs
of
specific
project
durations.
costs of specific project durations.
Search
Searchcritical
criticalactivities
activitiesfor
forlowest
lowestdirect-cost
direct-cost
activities
activitiesto
toshorten
shortenproject
projectduration.
duration.
Compute
Computetotal
totalcosts
costsfor
forspecific
specificdurations
durationsand
and
compare
compareto
tobenefits
benefitsof
ofreducing
reducingproject
projecttime.
time.
Project
Project Cost
CostDuration
Duration Graph
Graph
FIGURE 9.1
Constructing
Constructing aa Project
Project Cost
CostDuration
Duration Graph
Graph
Find total direct costs for selected project
durations.
Find total indirect costs for selected project
durations.
Sum direct and indirect costs for these selected
project durations.
Compare additional cost alternatives for
benefits.
Constructing
Constructing aa Project
Project CostDuration
CostDuration Graph
Graph
Determining Activities to Shorten
Shorten the activities with the smallest increase in cost
per unit of time.
Assumptions:
Normal time assumes low-cost.
Crash time represents a limitthe greatest time
reduction possible under realistic conditions.
Slope represents a constant cost per unit of time.
All accelerations must occur within the normal and
crash times.
Cost
CostDuration
Duration Trade-off
Trade-off Example
Example
Cost
CostDuration
Duration Trade-off
Trade-off Example
Example (contd)
(contd)
Activity
ES Act EF
S
LS Dur LF
0
0
Time 25 Days
3
17
11 8
19
11
13
19 G 25
1
4
10 14
14
0
3
0
14
14
19
19
0
14
11
19 6
25
Cost
CostDuration
Duration Trade-off
Trade-off Example
Example (contd)
(contd)
Total Direct Cost $470
Time 24 Days
2
0
0
E 16
10
12
10
13
13
11
13
10 8
18
18 G 24
0
2
0
18 6
13
F 18
0
13
5 18
24
Cost
CostDuration
Duration Trade-off
Trade-off Example
Example (contd)
(contd)
Total Direct Cost $495
Time 23 Days
2
0
0
16
17
12
10
12
17 G 23
0
2
2
12
12 F
17
0
2
17 6
10
12
12 5
17
23
Cost
CostDuration
Duration Trade-off
Trade-off Example
Example (contd)
(contd)
Total Direct Cost $525
Time 22 Days
2
0
0
16
16
12
10
12
12
10
12
16 G 22
0
2
16 6
12 F
16
0
12 4
16
22
Cost
CostDuration
Duration Trade-off
Trade-off Example
Example
Total Direct Cost $610
Time 21 Days
2
0
0
15
15
11
11
15 G 21
0
2
2
11
0
2
15 6
11 F
15
0
9
11
11 4
15
21
Summary
Summary Costs
Costs by
by Duration
Duration
FIGURE 9.5
Project
Project Cost
CostDuration
Duration Graph
Graph
FIGURE 9.6
Practical
Practical Considerations
Considerations
Using the Project CostDuration Graph
Crash Times
Linearity Assumption
Choice of Activities to Crash Revisited
Time Reduction Decisions and Sensitivity
What
What ifif Cost,
Cost, Not
Not Time
Time is
is the
the Issue?
Issue?
Commonly Used Options for Cutting Costs
Reduce project scope
Have owner take on more responsibility
Outsourcing project activities or even the entire project
Brainstorming cost savings options