Please enable JavaScript.
Coggle requires JavaScript to display documents.
Reducing Project Duration - Coggle Diagram
Reducing Project Duration
Rationale
Time Is Money: Cost-Time Tradeoffs
Reducing the time of a critical activity
crashing
Reasons for imposed project duration dates
Time-to-market pressures
Unforeseen delays
Incentive contracts (bonuses for early completion)
Imposed deadlines and contract commitments
Overhead and public goodwill costs
Pressure to move resources to other projects
options
Resources Constrained
Improving project team efficiency
Fast-tracking
Critical-chain
Reducing project scope
Compromise quality
Resources Not Constrained
Outsourcing project work
Scheduling overtime
Establishing a core project team
Do it twice—fast and then correctly
Adding resources
Explanation of Project Costs
Project Indirect Costs
Costs that vary (increase) with time
Costs that cannot be associated with any particular work package or project activity
Project Direct Costs
Crashing activities increases direct costs
Normal costs that can be assigned directly to a specific work package or project activity
Identifying direct costs to reduce project time
Gather information about direct and indirect costs of specific project durations
Search critical activities for lowest direct-cost activities to shorten project duration
Compute total costs for specific durations and compare to benefits of reducing project time
Project cost–duration graph
Constructing
Find total direct costs
Find total indirect costs
Sum direct and indirect cost
Compare additional cost alternatives for benefits
Determining Activities to Shorten
Shorten the activities
Assumptions
cost-time relationship is linear
Normal time assumes low-cost
Crash time represents a limit—the greatest time reduction possible under realistic conditions
Slope represents
accelerations must occur within the normal and crash times