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    05-Reducing Project Duration

    Uploaded by

    Jhon Ray Rabara
    This document discusses reducing project duration to lower costs. It notes that time constraints can come from time-to-market pressures, delays, contracts, or moving resources to new projects. Options to accelerate projects include adding resources, outsourcing work, overtime, or reducing scope when resources are constrained. Project indirect costs like supervision vary with time, so less time reduces those costs, while direct costs like labor increase when crashing activities. The best activities to shorten are those with the lowest direct cost increases to reduce total project costs. If cost is the main issue, options include reducing scope, increasing owner responsibility, outsourcing, or brainstorming other cost savings.

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    05-Reducing Project Duration

    Uploaded by

    Jhon Ray Rabara
    135 views7 pages
    This document discusses reducing project duration to lower costs. It notes that time constraints can come from time-to-market pressures, delays, contracts, or moving resources to new projects. Options to accelerate projects include adding resources, outsourcing work, overtime, or reducing scope when resources are constrained. Project indirect costs like supervision vary with time, so less time reduces those costs, while direct costs like labor increase when crashing activities. The best activities to shorten are those with the lowest direct cost increases to reduce total project costs. If cost is the main issue, options include reducing scope, increasing owner responsibility, outsourcing, or brainstorming other cost savings.

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    05-REDUCING PROJECT DURATION

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    This document discusses reducing project duration to lower costs. It notes that time constraints can come from time-to-market pressures, delays, contracts, or moving resources to new projects. Options to accelerate projects include adding resources, outsourcing work, overtime, or reducing scope when resources are constrained. Project indirect costs like supervision vary with time, so less time reduces those costs, while direct costs like labor increase when crashing activities. The best activities to shorten are those with the lowest direct cost increases to reduce total project costs. If cost is the main issue, options include reducing scope, increasing owner responsibility, outsourcing, or brainstorming other cost savings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    135 views7 pages

    05-Reducing Project Duration

    Uploaded by

    Jhon Ray Rabara
    This document discusses reducing project duration to lower costs. It notes that time constraints can come from time-to-market pressures, delays, contracts, or moving resources to new projects. Options to accelerate projects include adding resources, outsourcing work, overtime, or reducing scope when resources are constrained. Project indirect costs like supervision vary with time, so less time reduces those costs, while direct costs like labor increase when crashing activities. The best activities to shorten are those with the lowest direct cost increases to reduce total project costs. If cost is the main issue, options include reducing scope, increasing owner responsibility, outsourcing, or brainstorming other cost savings.

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    You are on page 1of 7

    TOPIC BRIEFER # 5

    REDUCING PROJECT DURATION

    9–1
    Rationale for Reducing Project Duration

    • Time Is Money: Cost-Time Tradeoffs


    –Reducing the time of a critical activity usually incurs
    additional direct costs.
    • Cost-time solutions focus on reducing (crashing) activities on
    the critical path to shorten overall duration of the project.
    –Reasons for imposed project duration dates:
    • Time-to-market pressures
    • Unforeseen delays
    • Incentive contracts (bonuses for early completion)
    • Imposed deadlines and contract commitments
    • Overhead and public goodwill costs
    • Pressure to move resources to other projects

    9–2
    Options for Accelerating Project Completion

    • Resources Not • Resources


    Constrained Constrained
    –Adding resources –Fast-tracking
    –Outsourcing project –Critical-chain
    work –Reducing project scope
    –Scheduling overtime –Compromise quality
    –Establishing a core
    project team
    –Do it twice—fast and
    then correctly

    9–3
    Explanation of Project Costs
    • Project Indirect Costs
    –Costs that cannot be associated with any
    particular work package or project activity.
    • Supervision, administration, consultants, and interest
    –Costs that vary (increase) with time.
    • Reducing project time directly reduces indirect costs.

    • Project Direct Costs


    –Normal costs that can be assigned directly to
    a specific work package or project activity.
    • Labor, materials, equipment, and subcontractors
    –Crashing activities increases direct costs.

    9–4
    Reducing Project Duration
    to Reduce Project Cost

    Identifying direct costs to reduce project time

    Gather information about direct and indirect


    costs of specific project durations.

    Search critical activities for lowest direct-cost


    activities to shorten project duration.

    Compute total costs for specific durations and


    compare to benefits of reducing project time.

    9–5
    What if Cost, Not Time Is the Issue?
    • Commonly Used Options for Cutting Costs
    –Reduce project scope
    –Have owner take on more responsibility
    –Outsourcing project activities or even the entire project
    –Brainstorming cost savings options

    9–6
    Thank you!

    9–7

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