Reducing Project Duration_Jagat Prasad Upadhyay.pptx

This presentation is prepared as part of the Course assignment of "HSM 612 Health Project Management” for the Master's Degree of Public Health (MPH), Pokhara University and can be used as reference materials. This Presentation is prepared by Jagat Prasad Upadhyay

1. Reducing Project Duration Presented By: Jagat Prasad Upadhyay MPH ( PHSM)3 rd Semester School of Health and Allied Sciences (SHAS) Pokhara University

2. Presentation Outline Introduction Why reduce project duration Option for reducing project duration Project Crashing Benefits and risk of reducing project duration 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 2

3. Reducing Project Duration Reducing project duration refers to the process of shortening the overall time required to complete a project while maintaining its quality and objectives. It involves analyzing and modifying various project components, such as task dependencies, resource allocation, scheduling, and project scope, to expedite project completion. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 3

4. Why Reduce Project Duration? Reduce project duration so as to minimize risks caused by unforeseen delays —for example, adverse weather, design defect, and equipment breakdowns etc . In recent years emphasis on time-to-market has taken on new importance because of intense global competition and rapid technological advances. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 4

5. Why Reduce Project Duration? There is a need to complete the project before the planned date to respond customers’ demand (imposed project duration date ). There are times for reassigning key equipment and/or people to new projects. Under these circumstances, the cost of compressing the project can be compared with the costs of not releasing key equipment or people . Incentives contract (bonus for early completion ) 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 5

6. Options for Reducing Project Duration Adding Resources: The most common method for shortening project time is to assign additional staff and equipment to activities . There are limits, as to how much speed can be gained by adding staffs. Doubling the size of the workforce will not certainly reduce completion time by half. Outsourcing Project Work: Sometimes the organization subcontract out the project activities to shorten the project time . The subcontractor may have access to superior technology or expertise that will accelerate the completion of the activity. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 6

7. Options for Reducing Project Duration Establish a Core Project Team: One of the advantages of creating a dedicated core team to complete project in speed . Assigning professionals full time to a project avoids the hidden cost of multi-tasking. Fast-Tracking : Sometimes it is possible to re-arrange the logic of the project network so that critical activities are done in parallel rather than sequentially. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 7

8. Options for Reducing Project Duration Reducing Project Scope: This refers to limiting the number of features, tasks, or objectives within a project. It's often done to expedite project completion or to align with resource constraints. While reducing scope can indeed shorten the project timeline, it can also lead to a project that doesn't fully meet its initial goals or requirements. Compromise Quality: Reducing quality is always an opinion, but it is rarely used or acceptable. If quality is sacrificed, it may be possible to reduce the time of an activity on the critical path. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 8

9. Project Crashing Project crashing , also known as schedule compression or time crashing , is a project management technique used to accelerate the completion of a project by reducing its overall duration . Project crashing is when we shorten the duration of a project by reducing the time of one or more tasks. Crashing is done by increasing the resources to the project, which helps make tasks take less time than what they were planned for. This also adds to the cost of the overall project. Therefore, the primary objective of project crashing is to shorten the project while also keeping costs at a minimum. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 9

10. Project Crashing 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 10

11. Summary of principles: Determine least expensive way to finish project by earlier date Focus on the critical path. Choose least costly (lowest cost slope) alternative to shorten project duration first. If project duration has not been reduced sufficiently, choose second-cheapest alternative, and so on. Keep an eye on all non-critical paths. If a non-critical path becomes critical, reduce activity duration on this path as well in next round. 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 11

12. Cost-duration graph 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 12

13. Example Activity Starting and finishing event Time (Days) Cost ($) Normal Crash Normal Crash A (1-2) 4 3 60 90 B (1-4) 6 4 150 250 C (1-3) 2 1 38 60 D (2-4) 5 3 150 250 E (3-4) 2 2 100 100 F (2-5) 7 5 115 175 G (4-5) 4 2 100 240 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 13 Indirect Cost: 60 per day

14. Network Diagram 1 1 5 3 4 2 A= 4 B= 6 G = 4 D = 5 C= 2 E= 2 F= 7 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 14

15. Network Diagram Possible paths A-F = 4+7 = 11 days A-D-G = 4+5+4 = 13 days (Critical path) B-G = 6+4 = 10 days C-E-G = 2+2+4 = 8 days Normal Project completion time 13 days Direct Cost = 713 days Indirect cost = 13*60 = 780 days Normal Project cost = direct cost + indirect cost = 713+(13*60) = 1493 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 15

16. Cost S lope Calculation formula The cost per unit of time or slope for any activity is computed by the following: Crash cost – Normal cost Normal Time – Crash Time 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 16 Cost Slope = Crashing Limit = Normal Time- Crash Time

17. Cost Slope Table Activities Crash cost per day (Cost slope) Δc / Δt [$] Maximum Possible Crashing Δt (Crashing Limit) A (90-60)/(4-3) = 30 4-3 = 1 B (250-150)/(6-4) = 50 6-4 = 2 C (60-38)/(2-1) = 22 2-1 = 1 D (250-150)/(5-3) = 50 5-3 = 2 E (100-100)/(2-2) = 0 2-2 = 0 F (175-115)/(7-5) = 30 7-5 = 2 G (240-100)/(4-2) = 70 4-2 = 2 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 17

18. Crashing Table 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 18 Crashing A-F A-D-G B-G C-E-G Direct cost Indirect cost Total cost Before Crashing 11 13 10 8 713 780 1493 1st Crashing, A by 1 day 10 12 10 8 743 720 1463 2nd Crashing, D by 1 day 10 11 10 8 793 660 1453 3rd Crashing, D by 1 day 10 10 10 8 843 600 1443 4th Crashing, G by 1 day & F by 1 day 9 9 9 7 943 540 1483 5th Crashing, G by 1 day & F by 1 day 8 8 8 6 1043 480 1523 Optimal project completion time = 10 days Optimal project cost = $ 1443

19. Benefits of reducing project duration Increased speed to market :  This can be a major benefit for businesses that are competing in fast-paced industries. Reduced costs:  By completing the project sooner, you can save on indirect costs such as overhead and staffing. Improved customer satisfaction:  Customers are often more satisfied with projects that are delivered on time or early. Increased flexibility:  Having a shorter project duration gives you more flexibility to respond to changes in the environment. . 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 19

20. Risks of reducing project duration Quality Compromise: Speeding up the project may lead to cutting corners or sacrificing quality. This can result in defects, rework, and customer dissatisfaction in the long run. Increased risk of errors:  When we compress the schedule, there is a greater risk that errors will be made. Increased resource contention:  When we try to complete a project in a shorter timeframe, we may need to use more resources, which can lead to conflicts and delays . 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 20

21. Risks of reducing project duration Increased stress on team members : Putting pressure on team members to complete the project in a shorter timeframe can lead to stress and burnout. Communication and Coordination Challenges: Shorter project durations may require more frequent communication and coordination among team members 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 21

22. References Chapter Nine Reducing Project Duration ( https:// universe.bits pilani.ac.in/uploads/Chapter%209%20%20Reducing%20Project%20Duration_5e.pdf Project Crashing by Nitin Kulkarni ( https :// youtu.be/srb6yzbcu80 ) 8/19/2023 Reducing Project Duration_Jagat_Prasad_Upadhyay 22

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