2022-2023

Operations Research.

Lecture Three
- Network Analysis
- CRASH Method

Asst. Lect. Hiba Dhaher

University of Technology
Electrical engineering depart.
 1-3Project Crashing

Project management is about optimizing time, cost, and quality performance on

projects. These three variables are intrinsically linked. Changes in requirements of
these variables frequently occur and the project manager has to be able to re-plan the
project accordingly and provide revised estimates for the linked variables. In practice
the most common requirement for project re-planning calculations concern time and
cost. Clients often ask for projects to be speeded up and need to know how much of
an increase in speed is possible as well as what it will cost. The analysis and
execution of this time change, and its attendant impact on cost, is commonly known
as crash analysis. In crash analysis, a project manager offers re- planning advice
based on the functional relationship between time and cost. The objective is to look at
that relationship for the process concerned and to generate an alternative cost and
time scenarios. The client can see how much it will cost to meet a range of different
time options. The planning process is concerned with taking the project statement of
work (SOW) and breaking it down through a work breakdown structure (WBS) into
separate work packages, and then calculating the precedence logic of these activities
so that a network can be produced using critical path method (CPM) or program
evaluation review technique (PERT). The end result is a project schedule. This
schedule defines the main time and date milestones that will apply to the project as it
is originally envisaged.

- Crashing: reducing project time by arranging additional resources.

- Crash time: an amount of time activity is reduced.
- Crash cost: cost of reducing activity time.
- Goal: reduce project duration at minimum cost.
- Direct cost= total normal costs + cost due to crashing (normal time – crash time)
- Cost slope: Cost slope is the slope of the direct cost curve, approximated as a
straight line. It is given by cost slope = =

=crash cost - normal cost = Cc- Cn

= normal time - crash time= Tn-Tc

1
Example 1:

The normal and crash times and direct costs for the activities of a project are shown
below:

Time Cost
Activities
Normal Crash Normal Crash
1-2 8 4 3000 6000
1-3 5 3 4000 8000
2-4 9 6 3000 5500
3-5 7 5 2000 3200
2-5 5 1 8000 12000
4-6 3 2.5 10000 11200
5-6 6 2 4000 6800
6-7 10 7 6000 8700
5-7 9 5 4200 9000

1- Draw the network diagram.

2- Determine the critical path.
3- Find the minimum cost project schedule.

Solution:

Time Cost
Activities Cost slope =
Normal Crash Normal Crash
1-2 8 4 3000 6000 (6000-3000)/(8-4) =750
1-3 5 3 4000 8000 2000
2-4 9 6 4000 5500 500
3-5 7 5 2000 3200 600
2-5 5 1 8000 12000 1000
4-6 3 2.5 10000 11200 2400
5-6 6 2 4000 6800 700
6-7 10 7 6000 8700 900
5-7 9 5 4200 9000 1200
Total 45200 70400

2
 8 17
20
8 17
20

2 9 4 3 6
6

0 8
0
5 Normal
1 10
6

5 5 7
3
7 9 30
13 30
5
14
7

Time=30 week
Direct Cost=45200$

4 10
12.5
4 10
12.5
6 4 2.5 6
2 6

0 4
0
1 Crash
1 7
2

3 5 7
3
5 5 19.5
8 19.5
3
10.5
5.5

Time=19.5 week
Direct Cost=70400$

Examining the time cost slope of activities on the critical path we find that activity
(2-4) has the lowest cost slope. Hence, activity (2-4) is crashed. Project network after
such crashing is shown below:

3
 8 14
19
10 16
19

2 6 4 3 6
6

0 8
0
5
1 10
6

5 5 7
3
7 9 29
13 29
5
5
6

The new critical path is (1-2-5-6-7), with length of 29 weeks, and the total direct cost
is (46700$ = 45200+500 9 6 ) Examining the time cost slope of activities on the
new critical path (1-2-5-6-7) we find that activity (5-6) has the lowest cost slope
;Hence, activity (5-6) is crashed. Project network after such crashing is shown below:

8 14
17
8 14
17
6 4 3 6
2 6

0 8
0
5
1 10
2

5 5 7
3
7 9 27
13 27
5
15
8

The new critical path is (1-2-4-6-7), with length of 27 weeks, and the total direct cost
is 49500$ Examining the time cost slope of activities on the new critical path
(1-2-4-6-7) we find that activity (1-2) has the lowest cost slope. Hence, activity (1-2)
is crashed. Project network after such crashing is shown below:

4
 4 10
14
5 11
14
6 4 3 6
6
2
0 4
0
5
1 10
2

5 5 7
3
7 9 24
12 24
5
12
5

The new critical path is (1-3-5-6-7), with length of 24 weeks, and the total direct cost
is 52500$ Examining the time cost slope of activities on the new critical path
(1-3-5-6-7) we find that activity (6-7) has the lowest cost slope. Hence, activity
(6-7) is crashed. Project network after such crashing is shown below:

4 10
14
5 11
14

2 6 4 3 6
6

0 4
0
5
1 7
2

5 5 7
3
7 9 21
12 21
5
12
5

The new critical path is (1-3-5-6-7), and (1-3-5-7), both with length of 21 weeks, and
the total direct cost is 55200$. Examining the time cost slope of activities on the new
critical path (1-3- 5-6-7), and (1-3-5-7) we find that activity (3-5) has the lowest cost
slope. Hence, activity (3-5) is crashed. Project network after such crashing is shown
below:

5
 10
4
10 13
4
13
6 4 3 6
6
2
0 4
0
5
1 7
2

5 5 7
3
5 9 20
10 20
5
11
6

The new critical path is (1-2-4-6-7), with length of 20 weeks, and the total direct cost
is Rs.56400. Examining the time cost slope of activities on the new critical path
(1-2-4-6-7) we find that activity (4-6) has the lowest cost slope. Hence, activity (4-6)
is crashed. Project network after such crashing is shown below:

4 10
12.5
4 10
12.5

2 6 4 2.5 6
6

0 4
0
5
1 7
2

5 5 7
3
5 9 19.5
10 19.5
5
10.5
5.5

The new critical path is (1-2-4-6-7), with length of 19.5 weeks, and the total direct
cost is 57600$. Since all the activities on the critical path (1-2-4-6-7) are crashed,
there is no possibility of further time reduction.

6
Example 2:
A project consists of the following activities, the normal and crash points for each
activity are given below. It is required to compute the different minimum-cost that
can occur between normal and crash times.

Time Cost
Activities
Normal Crash Normal Crash
1-2 8 6 100 200
1-3 4 2 150 350
2-4 2 1 50 90
2-5 10 5 100 400
3-4 5 1 100 200
4-5 3 1 80 100

Solution:
Time Cost
Activities slope
Normal Crash Normal Crash
1-2 8 6 100 200 50
1-3 4 2 150 350 100
2-4 2 1 50 90 40
2-5 10 5 100 400 60
3-4 5 1 100 200 25
4-5 3 1 80 100 10
total 580 1340

8 18
8 18
10
2 5
0 8
0
2

3 Normal

4 3 4
10
5
4 15
CP =1-2-5 10
Time =18
Cost = 580

7
 6 11
6 11
5
2 5
0 6
0
1
1
Crash

2 3 4
7
1
2 10
9
CP =1-2-5
Time = 11
Cost =1340

Examining the time cost slope of activities on the critical path we find that activity
(1-2) has the lowest cost slope. Hence, activity (1-2) is crashed. Project network after
such crashing is shown below:

6 16
6 16
10
2 5
0 6
0
2
3

4 3 4
9
5
4 13
CP = 1-2-5
8
Time = 16
Cost =680

The new critical path is (1-2-5), with length of 16 weeks, and the total direct cost is
(680$ = 580+50 8 6 ). Examining the time cost slope of activities on the new
critical path (1-2-5) we find that activity (2-5) has the lowest cost slope; Hence,
activity (2-5) is crashed. Project network after such crashing is shown below:

8
 6 12
7 12
5
2 5
0 6
0
2
3

4 3 4
9
5
4 9
4
CP = 1-3-4-5
Time = 12
Cost =980$

The new critical path is (1-3-4-5), with length of 12 weeks, and the total direct cost is
(980$ = 680+60 10 5 ) .Examining the time cost slope of activities on the new
critical path (1-3-4-5) we find that activity (4-5) has the lowest cost slope ;Hence,
activity (4-5) is crashed. Project network after such crashing is shown below:
6 11
6 11
5
2 5
0 6
0
2
1

4 3 4
9
5
4 10
5
CP = 1-3-4-5
Time = 12
Cost = 1000$
The new critical path is (1-2-5), with length of 11 weeks, and the total direct cost is
(1000$ = 980+10 3 1 ). Since all the activities on the critical path (1-2-5) are
crashed, there is no possibility of further time reduction.

9
Problem:

1- A project consists of the following activities, the normal and crash points for
each activity are given below. It is required to compute the different minimum-
cost schedules that can occur between normal and crash times.
OR
2- A project consists of the following activities, their logical relationship and time
taken is given along with crash time and cost details. find the optimal duration
and optimal cost to crash the project

Time in week Cost in week

Activities
Normal Crash Normal Crash
1-2 8 6 100 200
1-3 4 2 150 350
2-4 2 1 50 90
2-5 10 5 100 400
3-4 5 1 100 200
4-5 3 1 80 100

Solution: time=11 week

Cost= 1040$

10