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Lecture 15-M5 Network Analysis for Project Planning (Contd.)

Mining engineering

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PIYUSH KUMAR
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0% found this document useful (0 votes)
23 views

Lecture 15-M5 Network Analysis for Project Planning (Contd.)

Mining engineering

Uploaded by

PIYUSH KUMAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MINE SYSTEMS ENGINEERING

(MN 6035)

DR. AMIT KUMAR GORAI


ASSOCIATE PROFESSOR
DEPARTMENT OF MINING ENGINEERING,
NIT, ROURKELA
Lecture 15
Network Analysis in Project Planning (Contd.)
Network Crashing

 It is sometimes desirable to accelerate the project progress. Thus, to reduce the

duration of the project, duration of certain activities has to be crash or reduce.

 The network planning device can be used to identify the activities whose
duration should be shortened so that the completion time of the project can be
shortened in the most economic manner. The process is known as network
crashing.

 The crashing of duration should be done only along the critical path. If there is
more than one critical path, duration of the activities should be crashed equally
in both the paths.
 The network analysis method of time-cost trade-offs is concerned with
determining how much (if any) to crash each of the activities in order to
reduce the anticipated duration of the project to a desired value.
 The data necessary for determining how much to crash particular activities
are given by the time-cost graph for the activity. Figure below shows a
typical time-cost graph.

Optimum cost and time of


Project
Project Cost

Total Cost

Indirect Cost

Direct Cost

Project Duration

Crashing of Project Duration


Method of Network Crashing

Crashing of a network involves following steps:

Step 1: Identification of Critical path: In the first step, the normal critical path needs to be
identified for identification of the critical activities.

Step 2: Determination of cost slopes for each activity in the network


The cost slope of all the activities are determined from the crash cost, normal cost, crash
time and normal time using the following equation.

Crash cost − Normal cost


Cost slope =
Crash time − Normal time

The cost slope indicates the demand of additional cost per unit crashing of duration to
expedite the project.

Step 3: Ordering of cost slope in ascending order to identify the minimum cost slope
All the activities are ordered from lowest to highest cost slope. The activity having the
minimum cost slope has to be crashed first to its minimum duration.
Step 4: Crashing the activity
Crash the critical activities as per the order of lower cost slope to reduce the critical path
duration. The critical activity having lowest slope cost slope should be crashed first to the
maximum extent possible. Calculate the new direct cost by cumulative adding the cost or
crashing to the normal cost.

Step 5: Parallel Crashing of activities


In the process of crashing the activities in the critical path, other path may become critical.
In this case, activities from both the paths should be crashed concurrently with equal
amount to reduce the overall completion time of the project.

Step 6: Total cost


Crashing of activities as per steps 4 and 5 should be continued till the desirable project
duration is reached or maximum possible crashing is done. For the different project
durations, total cost is determined by adding corresponding fixed cost to the direct cost.
The direct cost is calculated by adding the expediting crashing cost commutative to the
normal cost.
Example 1: List of activities for erecting a canteen in the mines is given below with other
relevant details. Job A must precede all others while job E must follow all others. Apart
from this, jobs can run concurrently also:

Job description Predecessor Normal Crash


Duration Cost Rs. Duration Cost
(days) (days) (Rs.)
A: Lay foundation and build walls 16 18000 12 20000
B: Tile Flooring A 8 4000 5 4900
C: Install electricity A 6 8000 4 12000
D: Install Plumping A 7 4000 5 5800
E: Connect services to finish B, C, D 7 4000 6 5000
 Draw the network and identify critical path.
 Crash the network fully to find out minimum duration.
 If indirect costs are Rs. 600/day, determine the time-cost trade-off for the project.
Activity Duration (t) ES EF LS LF Slack
A* 16 0 16 0 16 0
B* 8 16 24 16 24 0
C 6 16 22 18 24 2
D 7 16 23 17 24 1
E* 7 24 31 24 31 0
Note: *Critical activity/task

Critical Path = A-B-E


Non-critical paths are: A-C-E and A-D-E
Normal completion time of the project = 16 + 8 + 7 = 31 days

Lengths of the other two non-critical paths are 29 days and 30 days respectively.

Normal cost of the project = Direct Cost + Indirect Cost


= (18000 + 4000 + 8000 + 4000 + 4000) + 31*600
= 38000 + 18600 = 56600
Crashing of network:
Activity Normal Crash Normal Crash Cost Slope
Time Time Cost Cost
A* 16 12 18000 20000 500

B* 8 5 4000 4900 300

C 6 4 8000 12000 2000

D 7 5 4000 5200 600

E* 7 6 4000 5000 1000

Order of the cost slope is B<A<D<E<C


Crash the Project by 1-day:

The minimum cost slope among critical activities is B.

Thus, first target for crashing is activity B. After crashing the activity B by 1-day, the
duration of the project becomes 30 days and the revised network of the project is as
follows:

The crash cost of the project = Normal cost + Crash cost + Indirect cost
= (18000 + 4000 + 8000 + 4000 + 4000) + 1*300 + 30*600 = 56300
After 1-day crashing of activity B, the number of critical paths in the network becomes
two.
These are 1-2-5-4-6 and 1-2-3-4-6

Thus, for further reducing the duration of the project, activities in both the critical
paths need to be crushed simultaneously.
Crash the Project by additional 1-day:

There are three options to reduce the duration of the project by 1-day.

Activities, A and E lay in both the paths and thus crashing either of the activity by 1-day
reduces the duration of project by 1-day.

In another way, the crashing of the network can be done by crashing the activities B and D
by 1-day each. To make the cost-time trade-off, the option which increases the crashing
cost minimum, should be chosen.
1-day crashing cost of A = 500
1-day crashing cost of E = 1000
1-day crashing cost of B + 1-day crashing cost of D = 300 + 600 = 900

Out of three, crash cost of A is lowest. Therefore, activity A should be crashed to reduce
the duration of the project by 1 more day. After crashing the activity A by 1-day, the
duration of the project becomes 29 days and the revised network of the project is as
follows:

Crash cost of the project is


= Normal cost + Crash cost + Indirect cost

= (18000 + 4000 + 8000 + 4000 + 4000) + 1*300 + 1*500+ 29*600 = 56200


Q. In the project network shown activity durations are given in months. If the
activity can be crashed to expedite the project, which one would you crash and by
how many months?
A, 10

1 2 3 4
B, 5 C, 7 D, 2

E, 8

a. C, 1
b. C, 2
c. D, 1
d. E, 1

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