W11_IP_Crashing The Network Product Oil Tanker 3500 DWT

1. Problem Recognition, Definition and Evaluation

Base On Blog 10, Project Development Progress Product Oil Tanker DWT 3500 declined between Planing Vs Actual. Management wants to know what the optimum time to complete the project by compressing time and how much the total cost of the project.

Table 1. Ship Building Data Project

2. Development of the Feasible Alternatives

One strategy to accelerate the project schedule is crashing. However, crashing has impact on cost. Therefore the simulation of crashing of duration corresponding to increasing cost will be evaluated.

3. Development of the Outcomes for Each Alternative

Based on developing network the critical path is ACDGHI with original duration is 132 weeks.

4. Selection of a Criterion

The optimum time duration for the project will be selected.

5. Analysis and Comparison of The Alternatives

Shortening activities not on the critical path is wasted expense, therefore the author will do shortened to accomplish a reduction of the total project duration at critical path only.

Result of crashing mentioned at table below. Also by crashing will add the critical path, start from compressed in 101 st week to 86 th week, the activity E & F become Critical Path.

The Total cost direct & indirect by crashing as table below:

In those the option of crashing and increasing cost depicted to graph show below:

Table duration vs project cost

6. Selection of Preferred Alternatives

 According to that result; crashing can show to management the trade of between speed up duration and cost increase, there are three points with same crash duration but with different cost, one point is minimum cost which is crashing just at critical path another is crashing in all activity. If main concern the management in optimum time, the author recommended to put the crashing at critical path with minimum cost.The optimum total project duration can be reduced to 22 weeks at a total cost of USD 14,294,381.

7. Performance Monitoring & Post Evaluation of Result

Crashing can compress the Project duration till get minimum duration, however in some cases don’t’ only just increase cost but also can increase the critical path. Therefore, additional attention of critical path should one of the management to manage well.

8. Reference:

1. Humphreys, C, G (2014), Project Management Using Earned Value 3rdEdition, Chapter 11, Schedule Acceleration Techniques. Orange, CA: Humphreys & Assoc.
2. Darwito, Rikky (2015, August). W14_RD_ Project Crashing, Garuda AACE 2014. Retrieved from https://garudaaace2015.wordpress.com/2015/07/05/w14-rd_-project-crashing/
3. Hadi, Eyus (2015, August). W23_EY_Project Schedule Acceleration Using Network Crashing, Garuda AACE 2014. Retrieved from https://garudaaace2015.wordpress.com/2015/07/05/w14-rd_-project-crashing/