Chapter 9: Reducing Project Duration 4KF3 Page 1 of 10 Lecture Notes Options for Accelerating Project Completion Unconstrained Resources o Adding resources o Outsourcing o Overtime o Core project team o Do it twice Crashing Crash Time vs. Normal Time Crash Cost vs. Normal Cost Crash Point
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Chapter 9: Reducing Project Duration 4KF3
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Lecture Notes Options for Accelerating Project Completion
Unconstrained Resources
o Adding resources
o Outsourcing
o Overtime
o Core project team
o Do it twice
Constrained Resources
o Fast-tracking
o Critical-chain
o Reduce scope
o Compromise quality
Project Crashing
The process of accelerating a project.
PMBOK: “A specific type of project schedule compression technique performed by taking action to decrease the total project schedule duration after analyzing a number of alternatives to determine how to get the maximum schedule duration compression for the least additional cost.”
Project Cost Duration Graph
Crashing
Crash Time vs. Normal Time
Crash Cost vs. Normal Cost
Crash Point
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Project Crashing
An Example
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Chapter 9: Reducing Project Duration 4KF3
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Chapter 9: Reducing Project Duration 4KF3
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Chapter 9: Reducing Project Duration 4KF3
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How Short is Short Enough?
Include contract provisions in your calculations; – Some contracts have penalties for late delivery – Other projects have bonuses for early completion
Is the cost of crashing lower than the penalty for lateness?
Is the cost of crashing lower than the bonus?
Is there a strategic benefit to early completion?
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Finding the Optimum Point
Terminology
• All Normal ‐ a project schedule in which all durations and costs are at the normal rates.
• All Crash ‐ a project schedule in which all durations are at their lowest durations.
Considerations
Crash Time Estimates
Linearity Assumption
Choice of Activities
Network Sensitivity If Cost is the Issue, Not Time?
Reduce scope
Have owner take on responsibility
Outsource
Brainstorm for Savings
Reading Notes
Rationale for Reducing Project Duration
Time to market
o Business survival depends on adaptability
When unforeseen delays cause substantial problems
o Costs of getting back on track vs. being late
Incentive contract can make reduction of project time rewarding
Imposed deadlines
Avoid/reduce high overhead costs
When it is important to reassign key equipment and/or people to new projects
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Options for Accelerating Project Completion
Options When Resources ARE NOT Constrained
Adding Resources
o Most common method
o Limited – not necessarily a direct correlation between resources and speed
Outsourcing Project Work
o Subcontracting an activity to a contractor who may have superior knowledge or
abilities
Scheduling Overtime
o Easiest
o Disadvantages include added fees for hourly overtime charges, productivity
losses, organizational concerns, etc.
Establish a Core Project Team
o Avoiding hidden costs of multi-tasking
Do It Twice – Fast and Correctly
o Quick and dirty short-term solutions before actual solutions
Options When Resources ARE Constrained
Fast-Tracking
o Changing activity relationships from sequential to parallel
Critical-Chain
o Recall: CCPM
Reducing Project Scope
o The most common response
o Reassess the true specifications of the project
o Calculate the savings
Compromise Quality
o Rarely acceptable or used
Project Cost-Duration Graph
Procedure for identifying the costs of reducing project time so that the comparisons can
be made with the benefits of getting the project completed sooner
Project Cost-Duration Graph: see figure 9.1
o The total cost for each duration is the sum of direct and indirect costs