This lesson builds on critical path analysis. Make sure you can identify critical activities and calculate float before continuing.
Crashing means shortening a project by paying to reduce the duration of selected activities. The goal is not simply to crash the cheapest activity. You must shorten an activity on every current critical path, stay within each activity's crash limit, and check whether the saving in project time is worth the extra direct cost.
The cost slope compares an activity's normal and fully crashed plans:
The denominator is the maximum number of days that can be removed. Unless stated otherwise, assume the cost rises linearly, so this slope is the additional cost of removing one day.
A project has two start-to-finish paths:
The normal project duration is 17 days and the initial critical path is A–C–F.
| Activity | Normal time | Crash time | Maximum reduction | Extra cost/day |
|---|---|---|---|---|
| A | 4 | 2 | 2 days | $300 |
| B | 6 | 4 | 2 days | $350 |
| C | 8 | 5 | 3 days | $200 |
| D | 4 | 3 | 1 day | $250 |
| F | 5 | 4 | 1 day | $500 |
On the critical path A–C–F, activity C is cheapest at $200 per day. Crash C by one day.
Project duration: 16 days. Added cost: $200.
Crash C once more for another $200.
Activity F is shared by both paths. Crashing it by one day shortens both at once and costs $500. The alternative is to crash one activity on each branch; the cheapest such pair is A and D, costing $300 + $250 = $550. Therefore crash F.
The project has been shortened by three days for an additional direct cost of $200 + $200 + $500 = $900.
Suppose normal direct cost is $20,000 and indirect costs such as supervision and equipment hire are $550 per project day.
| Duration | Added crash cost | Direct cost | Indirect cost | Total cost |
|---|---|---|---|---|
| 17 days | $0 | $20,000 | 17 × $550 = $9,350 | $29,350 |
| 16 days | $200 | $20,200 | $8,800 | $29,000 |
| 15 days | $400 | $20,400 | $8,250 | $28,650 |
| 14 days | $900 | $20,900 | $7,700 | $28,600 |
At 14 days, F cannot be shortened again. Both critical branches must now be crashed. The cheapest combination is A and D for $550, exactly equal to one day's indirect saving. If there is no separate early-finish bonus, crashing further does not reduce total cost.