26-05-2012, 03:34 PM
CRASHING OF NETWORK
CRASHING OF NETWORK.ppt (Size: 1.52 MB / Downloads: 43)
COST ANALYSIS
AND
CRASHING OF ACTIVITIES
CRITICAL PATH MEASURES EXPECTED DURATION OF PROJECT AND IDENTIFIES ACTIVITIES WHICH NEED ATTENTION IN COMPLETING THE PROJECT
TO CUT DOWN TOTAL PROJECT TIME AS PER CRITICAL PATH, PROJECT CRASHING IS ADOPTED
OBJECTIVES
TO COMPLETE IMPORTANT PROJECT IN LEAST POSSIBLE TIME WHERE TIME IS MORE IMPORTANT THAN COST
TO EFFECT COST ECONOMY WHILE CRASHING
TO EXPEDITE WHEN EARLIER ACTIVITIES TOOK LONGER TIME
TO REDUCE IDLE TIME FOR NON CRITICAL ACTIVITIES AND ENSURE UNIFORM RESOURCES UTILISATION
TO RELEASE FACILITY/T&P QUICKLY AND TRANSFER TO OTHER PROFITABLE PROJECTS
TO ENHANCE REPUTATION OF FIRM
MEANS OF CRASHING
ALLOCATING MORE MAN POWER AND MACHINES
WORKING ADDITIONAL SHIFTS
OVERTIME
MAKING LOCAL PURCHASES
ENGAGING COSTLIER AGENCIES
RELAXING TECHNICAL SPECIFICATIONS
DIRECT COST
LABOUR COST
MATERIAL COST
EQUIPMENT COST
DIRECT COST INCREASES WITH DECREASE IN PROJECT PERIOD
INDIRECT COST
ADMINISTRATIVE/ ESTABLISHMENT / OVERHEADS
SUPERVISION
LOSS OF BUSINESS/ REVENUE / PROFITS
PENALITIES
INTEREST PAYABLE ON CAPITALS
Indirect cost falls with decrease in project duration