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Resource Allocation: By:-Anubha Jain Kshitij Pareek

Resource allocation involves satisfying unlimited demand using limited resources in an equitable manner to prevent daily fluctuations. Crashing is deliberately reducing activity times through extra efforts to decrease a project's duration and increase its cost. The steps to crash a project are to identify critical activities on the critical path, calculate activity cost slopes, crash the least expensive critical activities, and repeat until the desired duration is achieved. General crashing rules include only crashing critical activities, starting with those of lowest cost slope, and compressing parallel critical paths simultaneously.

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Anubha Jain
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37 views

Resource Allocation: By:-Anubha Jain Kshitij Pareek

Resource allocation involves satisfying unlimited demand using limited resources in an equitable manner to prevent daily fluctuations. Crashing is deliberately reducing activity times through extra efforts to decrease a project's duration and increase its cost. The steps to crash a project are to identify critical activities on the critical path, calculate activity cost slopes, crash the least expensive critical activities, and repeat until the desired duration is achieved. General crashing rules include only crashing critical activities, starting with those of lowest cost slope, and compressing parallel critical paths simultaneously.

Uploaded by

Anubha Jain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Resource allocation

By :-
Anubha Jain
Kshitij Pareek
What is resource
allocation ?

Satisifying unlimited demand by


using limited resources
Aim of resource allocation
 To ensure equitable distribution

 Toprevent day to day flucations in the


Activities

 Toobtain uniform resource


requirement
Project time cost
tradeoff/crashing

Delibrate reduction of the


activity times by putting in
extra efforts is called as
crashing
Terminologies
 Activity cost: -it refers to a reduction in the
duration of an activity and a consequential
increase in the cost

 Crash time:-it refers to the minimum activity


duration to which an activity can be compressed
by using resources.

 Crash cost:-it is that cost of a project at which an


activity can be completed in minimum duration
Contd………
 Normal cost:-it is that cost which is generally
increased towards the completion of an activity

 Normal time:-it is the minimum duration for


execution of an activity determined on the basis of
norma l time.

 Cost slope:-it refers to an increase in direct cost per


unit time for reducing the duration for completion
of an activity.
Contd…….
Slope = crash cost – normal cost
normal time – crash time

Where: slope = cost per day of crashing a project

When slope is negative : indicate the time required


for a project is decreased, the cost is increased

Chapter 9 Resource Allocation 7


Factors responsible for time and
cost overrun
Pre –feaibility stage
 Bureaucratic delays
 Delay in financial assistance

Evaluation stage
 Inadequate project study
 Wrong selection of location

Technology selection and engineering stage


 Selection of poor and outdated technology
Contd…..
Construction stage
 Indecisions or delayed decision
 Low productivity of contractors

Start up stage
 Defects in erection and installtations
 Failures of certain equipments and parts
Steps in crashing
Step I:-
Prepare the network diagram, find the normal critical
path and determine critical activities.
Step II:-
Calculate cost slope,for different activities with the
help of formulae .
Step III:-
Identify those activities on critical path which can be
crashed.
Contd……
Step IV:-
Crash the least expensive activity i.e. the activity with
least slope
Step V:-
By crashing the activity of critical path if other paths
also become critical ,a situation of parallel critical
path is obtained which implies that the duration of
the project can further be reduced through
simultaneous crashing of the activities in the
parallel critical paths
Contd…….
Step VI:-
Calculate the total cost.
General rules for crashing
 Crash only critical activities on the critical path

 Crashing non critical activities will result in


reduction of project duration

 First, activities with the lowest crashing cost per unit of


time should be crashed and the process should be repeated
until desired duration of projet is achieved

 In case of parallel critical paths, each of parallel paths


must be compressed
Practical question
Activity Crash Normal
2
d Time, Time, crashing
a
Cost Cost

1
c
4
a 3,60 3,60 No
b
e
b 6,80 7,30 Yes
3 c 4,90 5,50 Yes
d 5,50 6,30 Yes
e 2,100 4,40 Yes
Contd….
 Paths Normal duration Crash duration
1-2-4 9 8
1-2-3-4 12 7
1-3-4 11 8

1-2-3-4 is the critical path with highest duration of


12 days.

Project needs to be crashed from 12 – 8 days.


Calculation of cost slope

Activity Cost slope


A 0
B 50
C 40
D 20
E 30
Contd….
Determining the lowest cost slope of critical path
activities.

Activitiy cost

1-2 -
2-3 40
3-4 30
Since the lowest cost is 30 therefore activity
3-4 will be crashed by 1 day.
Contd….
Activity Normal duration

1-2-4 9
1-2-3-4 12 , 11
1-3-4 11 , 10
______________________________________________

Activity Normal time Crash time


3-4 4 ,3 2
Contd….
Again, activity 3-4 will be crashed due to low cost.
Therefore,

Activity Normal duration


1-2-4 9
1-2-3-4 12,11,10
1-3-4 11,10,9

Crashing cost :- Rs.30


Activity Normal time Crash time
3-4 4,3,2 2

Now, activity 3-4 can not be crashed


further. Since normal time=crash time.
Contd….
Further activity 2-3 with next lowest crash slope will
be crashed.i.e. 40

Therefore,

Activity Duration
1-2-4 9
1-2-3-4 12,11,10,9
1-3-4 11,10,9
Contd.....
Possible cost options,

i) 1-2 - ii)1-2 - iii)1-3 50


2-4 20 2-3 40 3-4 -
3-4 -

Crashing cost=20+40+50
=110
Contd….
Path Duration
1-2-4 9,8
1-2-3-4 12,11,10,9,8
1-3-4 11,10,9,8
Contd….
Total crashing cost=30+30+40+110
=rs.210
Thank you

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