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管理学院SchoolofManagement 佟瑞EdwardTong MPM MBA 2020 2 8 1 EdwardTong CopyrightreservedJinanUniversity 9 3 WhereWeAreNow 9 4 RationaleforReducingProjectDuration TimeIsMoney Cost TimeTradeoffsReducingthetimeofacriticalactivityusuallyincursadditionaldirectcosts Cost timesolutionsfocusonreducing crashing activitiesonthecriticalpathtoshortenoveralldurationoftheproject Reasonsforimposedprojectdurationdates Time to marketpressuresUnforeseendelaysIncentivecontracts bonusesforearlycompletion ImposeddeadlinesandcontractcommitmentsOverheadandpublicgoodwillcostsPressuretomoveresourcestootherprojects 9 5 OptionsforAcceleratingProjectCompletion ResourcesNotConstrainedAddingresourcesOutsourcingprojectworkSchedulingovertimeEstablishingacoreprojectteamDoittwice fastandthencorrectly ResourcesConstrainedFast trackingCritical chainReducingprojectscopeCompromisequality 9 6 ExplanationofProjectCosts ProjectIndirectCostsCoststhatcannotbeassociatedwithanyparticularworkpackageorprojectactivity Supervision administration consultants andinterestCoststhatvary increase withtime Reducingprojecttimedirectlyreducesindirectcosts ProjectDirectCostsNormalcoststhatcanbeassigneddirectlytoaspecificworkpackageorprojectactivity Labor materials equipment andsubcontractorsCrashingactivitiesincreasesdirectcosts 9 7 ReducingProjectDurationtoReduceProjectCost Computetotalcostsforspecificdurationsandcomparetobenefitsofreducingprojecttime Searchcriticalactivitiesforlowestdirect costactivitiestoshortenprojectduration Identifyingdirectcoststoreduceprojecttime Gatherinformationaboutdirectandindirectcostsofspecificprojectdurations 9 8 ProjectCost DurationGraph FIGURE9 1 9 9 ConstructingaProjectCost DurationGraph Findtotaldirectcostsforselectedprojectdurations Findtotalindirectcostsforselectedprojectdurations Sumdirectandindirectcostsfortheseselectedprojectdurations Compareadditionalcostalternativesforbenefits 9 10 ConstructingaProjectCost DurationGraph DeterminingActivitiestoShortenShortentheactivitieswiththesmallestincreaseincostperunitoftime Assumptions Thecostrelationshipislinear Normaltimeassumeslow cost efficientmethodstocompletetheactivity Crashtimerepresentsalimit thegreatesttimereductionpossibleunderrealisticconditions Sloperepresentsaconstantcostperunitoftime Allaccelerationsmustoccurwithinthenormalandcrashtimes 9 11 ActivityGraph FIGURE9 2 9 12 Cost DurationTrade offExample FIGURE9 3 9 13 Cost DurationTrade offExample cont d FIGURE9 3 cont d 9 14 Cost DurationTrade offExample cont d FIGURE9 4 9 15 Cost DurationTrade offExample cont d FIGURE9 4 cont d 9 16 SummaryCostsbyDuration FIGURE9 5 9 17 ProjectCost DurationGraph FIGURE9 6 9 18 PracticalConsiderations UsingtheProjectCost DurationGraphCrashTimesLinearityAssumptionChoiceofActivitiestoCrashRevisitedTimeReductionDecisionsandSensitivity 9 19 WhatifCost NotTimeIstheIssue CommonlyUsedOptionsforCuttingCostsReduceprojectscopeHaveownertakeonmoreresponsibilityOutsourcingprojectactivitiesoreventheentireprojectBrainstormingcostsavingsoptions 9 20 KeyTerms CrashingCrashpointCrashtimeDirectcostsFast trackingIndirectcostsOutsourcingProjectcost durationgraph 9 21 ProjectPriorityMatrix WhitbreadProject FIGURE9 6 1 Thepresidentofasoftwarecompanyremarksinaspeechthatnewtechnologicallyadvancedsoftwarewillbeavailableinoneyear Thisisanexampleofreducingprojectdurationcausedby A ImposedprojectdeadlinesB TimetomarketC UnforeseenprojectdelaysD HighoverheadE Incentivecontracts 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 22 2 Intenseglobalcompetitionandrapidtechnologicaladvancescreatepressureondevelopingprojectsrapidly Thisisanexampleofreducingprojectdurationcausedby A ImposedprojectdeadlinesB TimetomarketC UnforeseenprojectdelaysD HighoverheadE Incentivecontracts 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 23 3 Acontractorfinishedabridgeacrossalake18monthsearlyandreceivedmorethan 6millionfortheearlycompletion Thisisanexampleofreducingprojectdurationcausedby A ImposedprojectdeadlinesB TimetomarketC UnforeseenprojectdelaysD HighoverheadE Incentivecontracts 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 24 4 Adverseweather designflaws andequipmentbreakdowncancreatenegativeslack Thisisanexampleofreducingprojectdurationcausedby A ImposedprojectdeadlinesB TimetomarketC UnforeseenprojectdelaysD HighoverheadE Incentivecontracts 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 25 5 Totalprojectcostsincludeallofthefollowingexcept A SupervisionB AdministrationC Projectmanager ssalaryD InterestE Alloftheseareincludedintotalprojectcosts 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 26 6 Whichofthefollowingisnotconsideredaprojectindirectcost A SupervisionB ConsultantsC EquipmentD InterestE Alloftheseareconsideredprojectindirectcosts 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 27 7 Projectcostsaregenerallyclassifiedas costs A DirectB IndirectC OverheadD BothAandBarecorrectE A B andCareallcorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 28 8 Low cost realistic efficientmethodsforcompletinganactivityundernormalconditionsaresupportedby time A NormalB BudgetC OptimizedD ExpectedE Target 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 29 9 Theshortestpossibletimeanactivitycanbecompletedrealisticallyiscalled time A ExpeditedB AcceleratedC CrashD OptimisticE Optimal 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 30 10 ThemostcommonresponseformeetingunattainabledeadlinesistoA Reduceorscalebackthescopeoftheproject B DecreasethecriticalpathsC CrashallelementsoftheprojectD ChangethetimetomarketstatementE B andCarecorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 31 11 costsareincurredwhencompletinganactivityinitsrealisticallyshortesttime A NormalB ReserveC CrashD AcceleratedE Expedited 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 32 12 Anactivity scrashcostsinclude costs A DirectB IndirectC OverheadD BothAandBarecorrectE A B andCarecorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 33 13 CostslopecanbedeterminedbydividingtheA RunbytheriseB RisebytherunC CrashcostbythenormalcostD NormalcostbythecrashcostE BothBandCarecorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 34 14 Thelesssteepthecostslopeofanactivity theA LessitcoststoshortenonetimeperiodB MoreitcoststoshortenonetimeperiodC SmallerthecrashtimeD LargerthecrashtimeE Cannotbedeterminedbytheinformationgiven 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 35 15 Whichofthefollowingcorrectlycalculatesanactivity scostslope A normalcost crashcost normaltime crashtime B crashcost normalcost normaltime crashtime C normaltime crashtime crashcost normalcost D normaltime crashtime normalcost crashcost E crashcost normalcost crashtime normaltime 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 36 16 Anactivity scostsloperepresentsanactivity sA TotalcostperunitoftimeB CostperunitoftimeC IndirectcostperunitoftimeD BothBandCarecorrectE A B andCareallcorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 37 17 InselectingthebestactivitytoreduceyouwouldfirstselecttheactivitywiththeA EarlieststarttimeB SteepestslopeC LeaststeepslopeD LongestdurationE Largestcrashtime 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 38 18 Theoptimumdurationforaprojectisatthepointwhere A DirectcostsarethelowestB IndirectcostsarethelowestC DirectcostsequalindirectcostsD TotalprojectcostsarethelowestE Theprojectchangesfromtime constrainedtoresource constrained 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 39 19 CreatingaProjectCost Durationgraphisuseful A Duringthepre projectplanningphaseB AftertheprojecthasbegunC AfterthecompletionoftheprojectD BothAandBarecorrectE A B andCareallcorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 40 20 Crashingaprojectshouldoccur A AsearlyaspossibleB AslateaspossibleC MidwaythroughtheprojectD BothAandCarecorrectE Cannotbedeterminedwiththeinformationgiven 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 41 21 Ifanetworkhasseveralcriticalornear criticalpathsitisdeemedtobe A WellplannedB ThelowestcostalternativeC Resource constrainedD SensitiveE Insensitive 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 42 22 Theprojectdirect costlinenearthenormalpointisusually A SlopedsteeplyB RelativelyflatC RisingD FallingE Gentlysloped 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 43 23 Therelationshipbetweencostandtimeforvariousdurationsisassumedtobe A LinearB CurvilinearC VariableD ConverselyrelatedE Exponentiallyrelated 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 44 24 Acommonmethodforshorteningtheprojecttimeisto A AddingresourcesB ScheduleovertimeC SubcontractanactivityD BothAandBarecorrectE A B andCareallcorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 45 25 Apositivesituationwheremovingtowardtheoptimumtimecanresultinveryreal largesavings thisoccurswhenthenetworkis A InsensitiveB SensitiveC AheadofscheduleD ShiftingtothecriticalchainE Implementingafast trackingsystem 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 46 26 Whichofthefollowingis areincludedinaProjectCost DurationGraph A TotalindirectcostB TotaldirectcostC TotalprojectcostD BothAandBarecorrectE A B andCareallcorrect 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 47 27 Onewayofreducingprojectcostsisidentifyingtasksthat candothemselves A VendorsB SuppliersC CustomersD CompanyemployeesE Projectteams 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 48 28 ThemostcommonmethodforshorteningprojecttimeistoA SubcontractactivitiesB CompromisethequalityC AddadditionalstaffandequipmentD WorkovertimeE Reducetheprojectscope 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 49 29 Whichofthefollowingisnotoneofthemorecommonlyusedoptionsforcuttingprojectcosts A ReduceprojectscopeB HaveownertakemoreresponsibilityC MovingthecompletiondatefurtheroutD BrainstormingcostsavingsoptionsE Outsourcingprojectactivities 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 50 30 Whichofthefollowingisthemostcommonmethodforshorteningprojecttime A AssigningadditionalstaffandequipmentB SubcontractworkC ScheduleovertimeD ReduceprojectscopeE Reducethequality 2020 2 8 EdwardTong CopyrightreservedJinanUniversity 51 31 AccordingtoBrooks Law addingmorepeopletoalateprojectismostlikelytohavewhichofthefollowingimpact A KeeptheprojectfromslippinganyfurtherB GettheprojectbackonscheduleC Maketheprojectslipsfurther
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