Ch. 9 Reducing Project Duration

Ch. 9 Reducing Project Duration

1. Rationale

   • Time to market
   • Unforeseen delays
   • Incentive contracts

2. Acceleration of Project

   • When resources aren't constrained
     • Additional Staff
     • Outsourcing work
     • Scheduling overtime
     • Establish a core team
     • Do it twice, fast and correctly
   • When resources are constrained
     • Improve efficiency
     • Fast Track
       • non critical items run parallel
     • Critical Chain PM
       • accelerates project completion
     • Reducing project scope
     • Compromise quality
     • Project direct costs

3. Project Cost Duration Graph

   • 1. Find total direct costs
   • 2. Find indirect Costs
   • 3. Sum direct / indirect costs
   • Normal times for completing ativities
     • Low cost
     • Realistic
     • Efficient methods
   • Crashing
     • Shortening an activity / project
     • Crash Times
       • Shortest possible time a project can be completed
     • Crash Cost
       • Direct cost for completing an activity
     • Crash Point
       • Max. time a project can be compressed

4. Time Reduction and Sensitivity

   • Sensitive if several critical or near critical paths

5. What if Cost is the problem?

   • Reduce project scope
   • Owner must take more responsibility
   • Outsourcing
   • Brainstorm cost saving solutions

6. Project Cost Duration Graph Cont'd

   • Assumptions
     • Cost - time relationship is linear
     • Normal time assumes low-cost, efficient methods
     • Crash time represents a limit
     • Slope represents cost per unit of time
     • All accelerations must occur w/i the normal crash times