Project crashing - could somebody please explain to me when you know you can't crash a project any further? Many have said 'when it's no longer cost effective'...so how do you know when it's no longer cost effective? Thank you...
Hey Emily,
As I understand it, an activity may be crashed by however many hours (for example), so long as this doesn't create a
new critical path.
For example:
Assume that path B-D-E-F of a project is critical, taking a maximum of 26 hours. Let's also assume that activity B has a duration of 5 hours.
Let our next path (which is second closest to being critical) be A-D-G-F, which takes 24 hours.
Therefore we can only crash activity B by 2 hours, so that our current critical path (B-D-E-F) is equal to the maximum time of our second path (A-D-G-F). If we were to crash B by 3 hours, A-D-G-F would be our new critical path (24) as it would take longer than our initial, which would now be (23).
Sorry for the long explanation. I hope I answered your question.
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