OPERATION RESEARCH

***PRESENTED BY***Jacob John Panicker

PRESENTATION OUTLINE• Project time cost trade off• Project crashing• Time cost trade off procedure• Resource allocation• Resource leveling• Resource smoothing

PROJECT TIME COST TRADE OFF

Project time can be reduced by crashing Normal time reduced, budget increase Use additional resource to complete on time

PROJECT CRASHINGCrashing number of activities to reduce

duration of projectCost increases more quickly when time is

reducedRelationship between normal time and cost

and crash time and time is linear

TIME COST TRADE OFF PROCEDURE

1. Determine normal project completion time and associated critical path

2. Identify critical activities and compute cost slope

cost slope= crash cost - normal cost crash time - normal time

3. Identify and crash an activity time on critical path

4. If the critical path is still critical, return to step 3

5. Terminate the procedure after each critical activity crashed to its lower possible time

RESOURCE ALLOCATIONResources are:- men, money, material,

machinery etc..,Network analysis PERT/CPM is carried out

using unlimited resourcesResources may not be uniform throughout the

project

RESOURCE LEVELLINGStabilize rate of resource utilization without

changing project durationTotal float of non-critical activityShift non-critical activity between earliest start

time and latest allowable time can lower maximum resource requirement

i. Total float=free float can be scheduled between earliest start and latest times

ii. Total float>free float starting time can be delayed

RESOURCE SMOOTHINGReduce peak demand for resources and

reallocate them and shortest durationI. Calculate earliest start and latest finish times,

draw time scaled networkII. Draw resource histogramIII. Shift the start time of those non-critical

activities

CONCLUSION

I conclude by saying that to reduce the time duration the cost of the project will be increased. The crash point is the point beyond which the time cannot be reduced nor the cost can be increased.

THANK YOU