What is time-cost trade-off in CPM?
The CPM method of time-cost trade-off approach is to determine just which time-cost combination should be used for each activity to meet the scheduled project competition at a minimum cost.
What is time-cost trade-off in project management?
According to several researchers, time–cost trade-off problem (TCTP) is considered as one of the vital decisions in project accomplishment . Usually, there is a trade-off between the duration and the direct cost to do an activity; the cheaper the resources, the larger the time needed to complete an activity.
What is the time-cost trade-off in crashing?
Project crashing is a method for shortening project duration by reducing the time of one or more of the critical project activities to a time that is less than the normal activity time. This reduction in the normal activity times is referred to as crashing .
What is a critical path in scheduling?
The critical path (or paths) is the longest path (in time) from Start to Finish; it indicates the minimum time necessary to complete the entire project.
What are the assumptions of time-cost trade offs?
Time-Cost Model Assumptions The time-cost model described above relies on the following assumptions: The normal cost for an activity is lower than the crash cost. There is a linear relationship between activity time and cost. The resources are available to shorten the activity.
What is time-cost slope?
the term ‘cost-slope’ is defined as the “increase in the cost of the activity per unit decrease in the time”.
What is a cost trade-off?
In economics, a trade-off is defined as an “opportunity cost.” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day’s wages as the cost for that opportunity.
What is a trade-off in project management?
Traditionally, the concept of „trade-off’ in Project Management tends to refer specifically to problems which demand finding a balance between the project‟s „time and cost’. Such challenges have been said to be the origin of the Critical Path Method (CPM) developed in 1950s (Pollack-Johnson and Liberatore, 2006).
What are the assumptions of time cost trade-off?
How project crashing affects time and cost?
Crashing analyzes and categorizes activities based on the lowest crash cost per unit time. Crashing only works for critical path activities where it is possible to shorten schedules. The project crashing results in a high direct cost to the project, but also gives clear identification for optimal time cost.
How do you use the critical path method?
There are six steps in the critical path method:
- Step 1: Specify Each Activity.
- Step 2: Establish Dependencies (Activity Sequence)
- Step 3: Draw the Network Diagram.
- Step 4: Estimate Activity Completion Time.
- Step 5: Identify the Critical Path.
- Step 6: Update the Critical Path Diagram to Show Progress.
What is the difference between longest path and critical path?
The term “critical path” is often used to refer to the “longest path”. But an activity that is critical does not necessarily mean it falls on the longest path. The second is by longest path. Any activities that fall along the longest path are flagged as critical.
What is the time/cost trade-off in CPM?
This time/cost trade-off is given in figure 1. The CPM assumes four pieces of information for each project activity, as follows: Normal duration: The maximum duration of the activity. Crash duration: The minimum duration of the activity. Normal cost: The cost associated with the normal duration.
What is the critical path method?
In this article, three CPM related topics will be discussed: Time/cost trade-offs. The critical path method assumes that the duration of an activity depends on the amount of resources assigned to it, and incorporates a trade-off between its duration and the cost of the assigned resources.
What is the critical path in compressing a project schedule?
Because of the importance of the critical path in compressing a project schedule, a project planning technique such as the Critical Path Method or PERT should be used to identify the critical path before attempting to compress the schedule.
What are the scheduling objectives of the CPM?
The CPM has a dual view on the project schedule, i.e. a time or cost point-of-view, resulting in two possible scheduling objectives. Figure 2 illustrates the time/cost profile on the project level as a result of selected time/cost combinations (i.e. modes) for each project activity. The two scheduling objectives are given along the following lines: