Project Management Resource Scheduling session 6
Summary
TLDRThis session delves into resource leveling and schedule compression in project management. It explains the concept of resource leveling to balance resource allocation and prevent inefficiencies, introducing schedule compression techniques like fast tracking and crashing. The instructor guides through a hands-on activity, assigns homework for practical application, and emphasizes the importance of understanding risks and probability in project completion. The session prepares participants for a deeper dive into project risk management in subsequent lectures.
Takeaways
- 📈 Resource leveling is a technique used to balance resource allocation throughout a project to avoid peaks and valleys in usage, aiming to use resources more effectively without changing the project end date.
- 📊 Schedule compression includes two methods: fast tracking, which involves doing activities in parallel, and crashing, which is about reducing activity durations by applying more resources or changing the approach.
- 🔍 The critical path in a project is the sequence of activities with zero slack time that determines the project's overall duration, and managing it is crucial for resource leveling and schedule compression.
- 📚 Understanding the probability of completing a project within a certain timeframe is important for project managers, often requiring statistical knowledge to calculate variance, standard deviation, and confidence levels.
- 🛠 Tools like Excel can be used for resource leveling to help visualize and manage resource allocation over time.
- 🔑 Resource leveling can free up space for resources such as employees, machinery, or meeting rooms, allowing for more efficient use of available assets.
- 🚧 Risk management is an integral part of project management, and resource leveling and schedule compression can introduce new risks that need to be identified, prioritized, and mitigated.
- 💡 The concept of crashing a project involves increasing costs to reduce the project duration, but it must be analyzed carefully to ensure that the time saved justifies the additional expense.
- 📉 Crashing a project can lead to various risks, including decreased quality, increased errors, fatigue among workers, and potential safety issues.
- 📈 A crash cost graph is a useful tool for visualizing the relationship between the cost of crashing activities and the time saved, helping to make informed decisions about which activities to crash first.
- 🔑 The session also covered a hands-on activity and homework assignment to apply the concepts of resource leveling and schedule compression, reinforcing learning through practical application.
Q & A
What are the main topics covered in session six of the project management sessions?
-Session six focuses on resource leveling and schedule compression, including an introduction to resource leveling, different types of schedule compression such as fast tracking and crashing, a hands-on activity, and a homework assignment to apply the learned skills.
What is resource leveling and why might it be necessary?
-Resource leveling is the process of smoothing out the allocation of resources over time to eliminate peaks and valleys in resource usage, ensuring effective utilization without changing the project end date. It's necessary to manage resources efficiently and address issues like over-allocation or under-allocation of resources.
What is the critical path in a project network diagram?
-The critical path is the sequence of activities in a project network diagram that determines the longest possible duration of the project. It's called 'critical' because any delay in these activities will directly impact the project's overall completion time.
How can resource leveling be implemented using simple tools?
-Resource leveling can be implemented using simple tools like an Excel spreadsheet, which can help in visualizing and adjusting the allocation of resources over time to achieve a more balanced resource usage.
What is the purpose of schedule compression in project management?
-Schedule compression is used to shorten the project duration without reducing the project scope. It involves techniques like fast tracking and crashing to identify ways to perform activities in parallel or to reduce the duration of critical activities.
What are the potential risks associated with schedule compression?
-Risks associated with schedule compression include increased fatigue and reduced motivation among team members, potential for errors and quality issues, additional costs, and the possibility of needing to find additional resources, which can further impact the project timeline and budget.
What is the difference between fast tracking and crashing in schedule compression?
-Fast tracking involves performing activities in parallel that were originally planned sequentially, while crashing involves reducing the duration of critical activities by applying additional resources or changing the approach, which usually incurs additional costs.
How can the critical path method (CPM) help in determining the project duration and identifying risks?
-The critical path method helps in determining the project duration by calculating the longest path of activities through the network diagram. It identifies risks by highlighting activities that, if delayed, would impact the project's overall timeline, allowing for better risk management and mitigation strategies.
Outlines
📚 Introduction to Resource Leveling and Schedule Compression
This paragraph introduces the session's focus on resource leveling and schedule compression techniques within project management. The session aims to explain what resource leveling is, its purpose, and how it can be executed using simple tools like Excel. It also covers the concept of schedule compression, which includes fast tracking and crashing, and sets the stage for a hands-on activity and homework assignment. The importance of understanding resource usage, critical path analysis, and the potential questions from stakeholders regarding project completion probabilities are highlighted.
🛠️ Understanding Resource Leveling and Its Application
The speaker delves into the specifics of resource leveling, emphasizing its goal to smooth out resource requirements without extending the project's end date. Using a sprinkler system installation as an example, the paragraph illustrates the process of creating a work breakdown structure and transforming it into a PERT network diagram. It discusses the identification of critical path, slack time, and the potential issues that may arise from uneven resource allocation, such as the need for more personnel than available on certain days.
🔍 Analyzing Resource Allocation and Identifying Bottlenecks
This section uses an Excel spreadsheet to demonstrate the allocation of resources to various activities in a project. It explains the concept of slack time and how it can be used flexibly to adjust the schedule. The paragraph identifies a specific issue where more tasks are scheduled on the same day than can be handled by the available workforce, indicating a need for resource leveling to resolve such bottlenecks.
🚀 Exploring Schedule Compression Techniques
The paragraph introduces schedule compression as a strategy to expedite project completion, discussing methods such as eliminating unnecessary activities, substituting less time-consuming components, parallelizing activities, and revisiting duration estimations. It also touches on the potential to increase work hours and the concept of crashing the project, while cautioning about the associated risks and costs.
⚠️ Risks and Considerations in Schedule Compression
Here, the speaker outlines the potential risks associated with schedule compression, such as fatigue, decreased quality, and motivation issues among team members. It also discusses the financial implications of finding additional resources and the potential for a vicious cycle of problems that can arise from not monitoring the project closely enough. The importance of understanding the crash versus cost relationship is emphasized, as is the need to make informed decisions about which activities to crash first.
📉 Crash Cost Analysis and Decision Making
The paragraph provides a detailed example of crash cost analysis, explaining how to calculate the cost associated with crashing activities on the critical path. It illustrates the decision-making process with a step-by-step guide on how to determine the order of crashing activities based on cost-effectiveness and the potential time saved. The example includes a crash cost graph as a visual aid for making these decisions.
📝 Assignment on Crash Cost Graph and Risk Management
In the concluding paragraph, the speaker assigns the task of plotting a crash cost graph as homework, encouraging students to apply the concepts learned. The session's focus shifts to the importance of risk management in project management, with a preview of upcoming topics that will cover defining risk, managing it, and developing response strategies. The speaker emphasizes the inevitability of risk in projects and the importance of early identification and prioritization.
Mindmap
Keywords
💡Resource Leveling
💡Schedule Compression
💡Critical Path
💡PERT Network Diagram
💡Slack Time
💡Fast Tracking
💡Crashing
💡Risk Management
💡Confidence Level
💡Work Breakdown Structure (WBS)
Highlights
Introduction to resource leveling and its importance in effective resource utilization.
Explaining the concept of schedule compression, including fast tracking and crashing.
Hands-on activity and homework assignment to apply learned skills.
Understanding the critical path in project management and its impact on resource leveling.
The use of Excel spreadsheets for simple resource leveling tasks.
Calculating the probability of project completion within given timeframes.
The importance of statistical knowledge in project management for variance and standard deviation.
The connection between resource leveling and the critical path in project scheduling.
Strategies for leveling resource peaks and valleys without extending the project duration.
Example of a sprinkler system installation project to illustrate resource leveling.
The role of work breakdown structure in resource leveling and schedule compression.
Risks associated with resource leveling and schedule compression.
Differentiating between crashing and fast tracking in schedule compression.
The financial implications of crashing activities in a project.
Crash cost analysis and decision-making for project schedule compression.
Understanding the relationship between crash cost and project completion time.
Preparing for risk management in project scheduling for the upcoming session.
Transcripts
hello
hi everyone welcome back to project
management sessions
for the summer
this is session six
and we are continuing today with
resource leveling and schedule
compression
so today's agenda is we're going to look
into the resource leveling what it is
and how can it be done
i'm going to introduce you schedule
compression
and you know it it appears in some
different types
so one is fast tracking and the other
one is crashing
and then i'm gonna do uh one hands-on
activity with you and then i'll assign
you a homework
uh to be able to apply the skills that
you learned today
at home
so i want you to think about just one
minute what is resource leveling and why
may you need it
so
in the previous sessions we came up with
our breakdown structure and we
transformed it into a pert network
diagram
and in this network diagram we estimated
the durations
and we were able to find out the overall
duration of the project
in this
applications we also find out the select
time zero
and when we combine those
zero select times we find out the
critical path
right at this moment this critical path
is you know really critical that's why
we call it critical path
so you got to find out the risks okay
and how you're
how you're using your resource if
there's peaks and valleys a lot in your
resource usage then you want to level
them so
you can effectively use your resources
that's basically what is resource
leveling
there's uh you know different tools that
you can use but you can use as simple as
an excel
spreadsheet
so think about it you know in the
previous example we we looked at you
know let's say that you can complete the
project in 42 hours
what were some of the uh questions that
you know might arise
what is the probability of completing
the project in 42 hours or less
you know ceo your manager your program
manager may ask you this question
or what is the probability of completing
the project in 32 hours or less
can you have this question
asked to you
sure because
maybe the customer is waiting your
delivery you know not in 42 hours but 32
hours so your manager wants you
to state if you can complete or what
kind of confidence level what is the
percentage of your confidence level that
you can complete your project
under 32 hours
or if your ceo your program manager is
really knowledgeable about the project
and how the projects are run
then they may ask you what is the
probability of completing the project
less than
i mean more than 95 percent probability
confidence level okay so they want you
to
give them a time a duration a completion
date that
95 percent they can be sure that the
project will be completed
and you needed to some statistics
refresher
that's why
in the previous session we we used our
calculators and we refreshed you know
get the dust out of your
old knowledge
about statistics
and we find out
over an example what is the variance
what is the standard deviation and we
learned for a target date how to
complete the z value and how to look it
up the z table
okay
and then find out the probability of
uh success and i'm gonna really go fast
if this slide is not making sense to you
i really encourage you to go look it up
the previous session
recording okay
because
next week we're gonna do the
[Music]
progress quiz 2
because this is really a natural break
point for a nice quiz
so there will be questions from
you know these slides and
how to calculate the variance and
standard deviation and the success
completion success and ratio rate
in in network diagram so
if this slide is not making sense to you
please go back and review the previous
week
and one of the examples also i covered
last week was you know ceo might ask you
can't can you complete it earlier
you know whatever is your completion
time they may ask you can you complete
it earlier for whatever reason
maybe the customer wants it earlier
maybe there's a rush to market uh you
know from a business case perspective
you want to be the first to hit the
market
and all of this
how quick or can you deliver can you
deliver 100 on time and
all of these things
let's and we said let's find out the
ceo's question and we work on them
so let's say this is our project okay
starts from activity a and goes all the
way to activated t and you have the
durations associated with the activities
here you have the red arrows and nodes
as critical path okay
and by now you should know
why is critical path is called critical
path
uh
how are the slack time on these uh red
arrows
and you know if something happened like
if you're late or or
or anything on on one of the activities
what happens to project
duration and if you are late on one of
the blue arrows which are not on the
critical path
then what happens to your duration of
the project so you know all these things
so today's topic is resource leveling so
coming from this
to resource leveling
how how what kind of a connection we
should do
okay
so resource leveling is an attempt to
eliminate the manpower peaks and valleys
by smoothing out the period to period
resource requirements
the ideal solution is to do without
changing the end date so when you're
when you're making the resource leveling
you shouldn't be making the project
run more like run longer okay you
shouldn't delay the overall project so
resource leveling is something that you
want to do
to free up some space for some of your
employees maybe some machinery
or maybe some clean labs or some kind of
classrooms
meeting rooms right all of these things
or or trucks
that you do
so you want to
you know
level these resources so you can use
them effectively it's not
when you're doing the resource leveling
it's not desired to you know make the
project run
longer well if
whatever you do the end date moves out
and additional costs are incurred in the
project then that's a different story so
you need to make a
make a new calculation
so let's say i'm installing a sprinkler
system
in my backyard okay
so here's my work breakdown structure
so my system my main system is
installing the sprinkler system
here here you see here you see the
here you see the the masters
which are the acquire equipment and
tools prepare yard
dig trenches install system and finish
job
these are the master
and these are the slave
which for example preparing the yard 1.4
requires you to clear the trash
you know the wheels fill the holes and
break the yard
okay
so this is let's say the work breakdown
structure for my uh sprinkler system
installation project in my
backyard
let's say i'm doing this with a with a
kid like a teenager you know
and myself okay
so we're doing basically two-person
but uh
so if you look at this what do you see
okay think about the different types the
various types that we studied about work
breakdown structure which one is this
one
exactly so this is kind of the time
sequential or time phased or breakdown
structure right
not functional not material
uh that's basically the time because
you know it says finish the job you know
and then right before that you're
installing the system you're doing
trenches preparing the yard and first
acquiring the equipment right so it's
kind of do this do this
do this
thing
so work breakdown structure here is
actually
a time phase one
and when i draw this
i find out i find out this per network
diagram okay
starting from a
to going to t
so here's the activity durations and
here's the critical path actually this
is the same slide that i showed you in a
minute ago
so
i just pulled out the
excel spreadsheet
and
i put out
nicely the activities and then the
masters
okay you see these ones are not
not really the activities they are the
uh what we call these masters
they are kind of a title
kind of a group things together and keep
keep them neat and tidy
so
they don't have
durations associated with them so when
you do this
you come up with this baseline schedule
okay
with the resources okay i'm just looking
from a resource perspective from an
employee perspective so this
i'm installing my sprinkler system in my
backyard
with a teenager and myself right
so
i am basically using
two person let's say okay right i'm not
hiring any contractor i'm not paying
anybody else
so this let me explain you what are the
colors and what are these lines
and what are these
red lines as well so
as i as i mentioned before the the
masters the colored one
doesn't have any
any activity duration associated with
them because they're just kind of an
umbrella kind of a grouping uh method
but here
you will see the designing the yard
takes four days
okay
so somebody needs to do this
in one day and then this block let's say
this cube one day
and then this cube another day and then
description
and also
after i designed the yard i purchased
the materials so somebody needs to go
and purchase the material and then
another one
and then
renting the trencher is also happening
this time but what these empty blocks
means are the slab
are the slack time
so i have time
uh i can buy the for example looking
into
purchasing the materials
i can purchase the material either in
these two days which is the fifth and
sixth day
or seven eight nine ten until
let's say 15 16. okay
i should leave i can i can buy purchase
the materials into in these two locks so
i have the select time of this much
okay
and here also renting the trencher i can
do this here
here here or here because i have slack
time
because
uh if you look at the work breakdown
structure i don't want to open it right
now
but
i can dig the trenches well to start
digging the trencher right thinking with
the trencher
i need to acquire them so before
starting to dig with trencher
right before that i can buy this anytime
right
so i can i can rent it to here here
sixth day seventh or eighth day
but i cannot
rent it after
eighth day because
digging with trenchers starts at
cut the point so that's how i come up
with this echelon
so
what is this red line they are the
critical path okay so whatever on this
one they are critical path okay so let's
let's investigate this
okay so everything looks good
but
but it but does it okay is there any
problem
let's look at the fifth
is there any problem on day fifth fifth
think about it so
i am purchasing the material
somebody is renting the trencher
and somebody is purchasing the tools
wait a minute so how many person is this
one two three so if i
if i collapse these blocks at the bottom
oh my god there's three blocks
let's look at here
so somebody needs to let's say i connect
the installer system to
water
and somebody needs to install the timer
and somebody needs to install the pipe
okay that's good
but
how come i do all of this in one day
because
durations are one day right
and i
not two people can do three things so if
you collapse these things
you see there's three people need we
need three people but we don't have
so what can i do well then in this case
i use uh
in this case i use
the resource leveling okay that's where
it comes handy so because i have select
time here okay
for example here in this in this
column i have only one
rake to yard
so
if
i move renting the trencher to somewhere
here
or here
it means that this will only be
two blocks
claps here
and this one one will be 2-2
which is good because i am already two
people so
one one of the you know
one of them can do
one job and the other one can do another
in the same day
so
i'm kind of leveling the peaks here got
it
and then peaks here and and i don't want
to create more time
to finish the project
so take a moment to think about what we
covered on this slide okay and then try
to digest this and
please compare it with the pert diagram
and
work breakdown structure so if you open
up baseline schedule
uh the pert diagram and then the work
breakdown structure if you open up all
of them together it will make more sense
to you
okay but uh which one should i do and
how can i do right so
what if this is not good enough what if
this is not good enough
so you kind of did the resource leveling
but you know maybe there's select time
less than what's required select time
maybe whatever you do there will be
still three blocks
so if this is the case
if this is the case what else can you do
if this is not enough okay so
here schedule compression kicks in
what is that
so you can eliminate some parts let's
say
you know if purchasing the material and
renting the trencher is being done with
two different person
maybe in two different days
maybe you want to eliminate one of them
so that one person go to home depot
louise
and
you know buy the material and rent the
trencher at the same time so you can
eliminate some part of the project makes
sense
okay
maybe you can substitute some less time
consuming
components and activities with something
else
maybe you can parallelize the some of
the activities which i will show you
or you can shorten the activities how
can you shorten them remember
how we came up with the project duration
at the first place
what we did is actually
we did the simpsons rule and we came up
with the duration estimations and then
we add them up
and then come up with the project
duration after we find out the critical
path
okay
but uh maybe you want to revisit
your you know maybe some of the part
some of the activities you want to
revisit
and estimate
the durations
a little bit
uh more realistic
okay
so you can try to shorten the longest
activities
maybe you want to do the easiest
activities first so you can
quickly get rid of them right you may
want to speed up
you may want to use more resources um
[Music]
so these two things are critical right
you want to have more resources
maybe you want to add more resources
when we say
resources in the project management
don't only think about money
you can think about machinery
you know a space like an inventory space
you can be employee
money time maybe a clean lab that
everybody needs to use or you have a
you know one testing or one software or
one
you know uh top secret computer network
that you you know you need to use in by
it needs to be used by different
departments
and people so these are all you should
think as resources
increasing the number of work hours per
day just tell everybody hey you know we
are
we're running out of time in the project
we're gonna be late so everybody will
work you know not 18 8 hours but 12
hours or 10 hours every day or
come back come back on saturday
or sunday for an eight hour shift okay
can you do that well you can
but uh what are the consequences okay
everything has some consequences
so you want to crash the project okay so
this is called crashing
what are some of the risk to
compression okay what are some of the
risk to compression
think about it for a minute well if you
tell people
to work you know another four hour after
five every day or every saturday
then there will be you know some tests
there will be a fatigue people will be
you know working hungry and
people will be working like
not motivated and
there will be some
you know injuries and people forget to
do some you know important tasks
so quality will go down motivation will
go down everybody will be you know tense
and intense and angry so
be ready for those kind of stuff if you
want to really really like crash with
giving you know over time
quality issues errors but people will
make more errors right
more time
finding additional resources than time
saved
so especially as a project manager
you'll go out and try to find some
additional resources which will decrease
your time monitoring the project and
progress
then uh
there will be
like a visual cycle there will be more
problems you will need more money so you
will try to go out and find money
then you will you know again decrease
your time monitoring your project get
your progress
and you know guiding your people
then
uh you will have problems again
new team members are not up to speed
there will be rework and safety issues
a lot of questions about job safety and
product safety others sure
you know please make you know under
comments please write if you have any
other if you observe if you experience
in other problems
with
you know doing the compression either in
your project or
a project you were
working in
made compression and
you had some problems
we need to understand the crash versus
cost relationship
that's very critical and think about it
because
think about it for a while so if you
wanna shorten an activity if you wanna
shorten a project crash a project you
need money but what's the relationship
you know which activity should i
uh crash how much money should i need
whereas where should i start
should i crash everything what do i do
let's see how this can be done
let's say you have a this kind of a
network diagram all right it's starting
and then you have activity d activity f
activated g and then the project is
ending
how can you fast track this
can you fast track can you do some
activities in parallel
there may be a few solutions to this but
my solution for you is
you know if you can do it you can do f
and g in parallel at the same time
and if you have
resources if you have experts engineers
to do this if you have technicians
operators
if g can start after d and if g can be
conducted in you know
processed in parallel in conjunction
with f
then you can change your
pert
with a fast tracking and now you will
save time
correct
for example for this one
now remember this was in your homework
and you sold this
how long is this project
remember that look at your notes
and then which of the activities may
make sense to fast tracking there may be
a lot of activities
can they that can be done in parallel
so think about it which cans which which
one of these can be fast tracking
okay
so let's do an example now
so here's the compression uh crash
versus pro cost let's say
your project is starting in zero and
then
a b c d e f these are the activity notes
that you are doing
and the numbers are the durations on the
arrows okay
so where to start so first of all
let's give an answer to this question
how long is this project
you're gonna find out
how much is this project
okay
please do this on your own
these are the days okay four days six
days two days
seven days does it change the length of
the project if an activity
g
is added between c and e
with a duration duration of 24 hours
which is duration of one day
so if i add an activity g
in between c and e
what is the duration what is the overall
uh project completion delay
okay what is the schedule slip observed
so i want you to do this on your own
and and you can share it in the comments
section
so you can see others answers as well
and also you can share your philosophy
how you did it your method your way of
doing it thinking about it
okay
so basically what it's saying is you
want to add a g
between cne
okay
so let's go back to the original one
so let's investigate the cost associated
with the activities that are to be
crashed
so
this is your critical path
four
six
seven and
six
as you can see these arrows are
different colors so this is your
critical path
so
to to analyze which nodes can be
you know should be crashed first you
want to go back you want to have such a
table
a table that says the activity what is
the time
what is the you know target crashing
time what is the cost what is the weekly
cost and you should come up
you should have such a such a table how
can you find that well maybe you have
this in your project maybe you maybe you
know it maybe you experience it if you
ask experts okay
you should come up with some kind of
this table i just obscured these numbers
because i want you to do it along with
me
i made red these reds are the critical
path
a b e and e are critical path
okay
so which one
do you wanna attack first
well first of all you want to attack
the ones that are on the critical path
correct
you don't want to spend time and and by
the way this is 8 000 i believe
i apologize for this so this is eight
dozen so you wanna you don't wanna crash
the black ones right because they're not
on the critical path they're not on the
so even though you crash them and you
make you
you conduct them you know you complete
them in in shorter shorter amount of
time
the project duration will not change
because project duration is decided by
the critical path so first of all
you want to eliminate c and d you're
looking for something on a b
e and f
okay
so here are the target crash times
and this is the cost like a normal cost
and this is the crash cost so
read it like that so normally activity
four is four days
you know i wanna i wanna crash
to two days and
the normal cost for activity a is ten
thousand
if i wanna crash it two weeks
the new cost will be fourteen thousand
okay
so this is just activity a so you wanna
do the same for b
not c and d
and this is 8000. i apologize
and
here it's enf you want to come up with
these numbers okay
then how do i decide which one to crash
then i wanna open up one more column for
you which is
crash
cost per week
okay
so
i am crashing two weeks in activity a it
cost me 14 minus 10 is 4 000
divided by 2 is 2 000.
i am crashing in activity b i am
crashing one week so i'm saving i'm
shortening it to one week
and it cost me from thirty thousand to
forty two thousand five hundred
then my crash week is
crash cost minus normal cost divided by
the
crash amount crash weeks okay which is
twelve thousand
so now you do this for enf
so i want to ask you which one
would you go first
looking at this crash cost time
which one would you go first
and why think about the answer
can you plot it on a crash cost graph
can you can you plot it on a crash cost
graph because it's easier to understand
if we put on if you put this table
uh on a plot
okay
so would you like to start with this one
like activity b
uh oh yeah i can hear you saying no
because it's it's twelve thousand five
hundred just to crash it one week
well if i can crash
something with
with 2000 for a week then why not start
from there right
so that's the financial analysis that
you want to do
so if you want to put the program cost
here
and
program completion time
okay
and here is the normal operations
so
if you want to start with crashing a
okay
you'll crash two weeks and you will only
spend this much money
and then which one do you want to do
second
i can hear what you're
saying you want to continue with f
because with f
you can
crash three weeks
and three thousand per week
okay
so it brings you all the way to
139
okay
so which one would you like to go next
you want to go with e
and you want to go with b
well what happens after b well then
so a b e f so if you go back
a b e f so you all you covered all the
critical path activities
so
would you like to crash
so if you wanna if you wanna crash it
totally like do let's say you have money
and you wanna do you know everything you
can
so the minimum cost to total crash is
around 160 000
okay
what's your
save time
you can save i believe from 23 weeks all
the way to 15 which is eight weeks
let's go back and uh
calculate here two plus one
is three plus two is five
plus three is eight yeah you can save
eight weeks
as you can see it came from 23 down to
15.
doesn't make sense now
so you can easily present this to your
program manager and say
no sir ma'am
you know i can save two weeks with uh
this much money
and then if we still have money or if we
still need to crash the project
uh if the customer wants it really early
then i want to go with the crashing f
activity f
and you can easily analyze then and show
this to your supervisors
okay if you
here's the final things
if you want to do even more crashing
which means if you want to include cne c
and d then
then what does that mean
all activities crashed
so if you crash all activities your
program cost will rise up to here
but what's happening with your project
completion time the project duration
yeah you got it
it's not really shortening the project
so if i'm not saving any weeks why am i
spending money right so i don't want to
do this
i want to save time
and spend some money
save more time and spend more money
until
until the time and i'm done with the
activities that
even though i spend money i cannot
shorten anymore okay
so that's the crashing cost analysis
so there will be questions in progress
quiz 2 next week on these on these kind
of explanations
so let's do another one
so here i want you to
do this one on your own okay
so here's the normal time so here's the
time that if i crash
here's the normal cost this is the crash
cost
i want you to find out the time look
weekly cost
and decide which one to do first
so find the weekly crash cost for each
activities
and in which order you would like to
start crashing
and think about you know as you can see
everything is in red
so we're thinking all the activities are
on critical path
i want you to plot crash cost graph and
this will be a homework i'll post it on
canvas as well
so i want you to submit those things
plot crash cost graph if you understood
the previous example really good
then you'll be okay to do that
just one more thing before you go
why are we doing all these things
i want to i want to switch to a
in
a new topic in in this
series of lectures
why are we doing all this
why are we trying to crash why are we
trying to look you know the durations
why are we really thinking on critical
activities and critical path
activities
well it's because of risk
because of risk so
you know
risk of
not
estimating the activity durations good
risk of not estimating your budget risk
of
not being able to achieve on time risk
of
giving the wrong confidence
confidence level okay
so all these things are risks and
we cannot really manage and complete any
project
without thinking of risk
okay
and when you crash when you start
crashing when you you know shuffle
people around shuffle material shuffle
other resources around then you will
create more risk but
the thing is you want to you want to
understand the risk from an impact
from a probability and impact
perspective what is the probability of
risk occurring
and what is the impact okay
so
we are switching next week
we are switching to
to definition of risk and the concept of
risk in project environment
we we are going to learn what is risk
you know how can we
define risk how can we manage the risk
and what are some of the risk response
strategies
and we want to we
want to you know identify the risk early
prioritize them them and then attack
them with some risk response strategies
and then
you want to monitor and control the risk
all right great
so make sure you complete the homework
for next week on canvas and
and you make a good review
for the
yeah for the topics that is covered
after progress quiz one
uh because this is kind of a very
natural uh a great natural breakpoint
for a progress quiz
because we're switching from project
management and schedule domain to
project risk domain which is really fun
so we'll see
our progress levels
thank you so much if you have any
questions please reach out to me
and i'll see you next week
bye
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