Operations Management 101: Project Management Ops Crashing and Fast Tracking

What This Is

Crashing and fast tracking are two techniques used in operations management to optimize project schedules and resource allocation. Crashing involves adding resources to a project to reduce its duration, while fast tracking involves performing tasks in parallel to reduce the overall project duration. These techniques are crucial in operations as they help organizations meet deadlines, reduce costs, and improve customer satisfaction. For example, consider a manufacturing company that needs to produce 10,000 units of a product within 6 weeks. By crashing and fast tracking, the company can reduce the production time to 4 weeks, allowing it to meet the customer demand and increase its market share.

Key Formulas & Frameworks

• Critical Path Method (CPM): A framework used to identify the critical tasks in a project that determine its overall duration. The critical path is the sequence of tasks that determines the minimum duration required to complete the project.
• Program Evaluation and Review Technique (PERT): A framework used to estimate the duration of tasks in a project. PERT is used when the task duration is uncertain and the project manager wants to estimate the minimum duration required to complete the project.
• Crashing Cost Formula: Crashing Cost = (Duration Reduction / Original Duration) × Total Project Cost. This formula is used to calculate the cost of crashing a project.
• Fast Tracking Formula: Fast Tracking Time = Original Time / (1 + (Number of Tasks in Parallel / Original Number of Tasks)). This formula is used to calculate the time saved by fast tracking a project.
• Resource Allocation Formula: Resource Allocation = (Total Project Resources / Number of Resources Required). This formula is used to allocate resources to tasks in a project.
• Gantt Chart: A graphical representation of a project schedule that shows the tasks, dependencies, and deadlines. Gantt charts are used to visualize the project schedule and identify potential bottlenecks.
• Bar Chart: A graphical representation of a project schedule that shows the tasks, dependencies, and deadlines. Bar charts are used to visualize the project schedule and identify potential bottlenecks.
• Critical Path Length (CPL): The length of the critical path in a project, which determines the minimum duration required to complete the project.
• Earliest Finish Time (EFT): The earliest time at which a task can be completed, based on the dependencies and deadlines.
• Latest Finish Time (LFT): The latest time at which a task can be completed, based on the dependencies and deadlines.

Step-by-Step Application

1. Identify the critical tasks in the project using the Critical Path Method (CPM) or Program Evaluation and Review Technique (PERT).
2. Estimate the duration of each task using historical data or expert judgment.
3. Calculate the crashing cost using the Crashing Cost Formula.
4. Determine the number of resources required to crash the project and allocate them using the Resource Allocation Formula.
5. Create a Gantt chart or bar chart to visualize the project schedule and identify potential bottlenecks.
6. Fast track tasks by performing them in parallel, using the Fast Tracking Formula to calculate the time saved.

Common Mistakes

• Mistake: Assuming that crashing a project will always reduce its duration.
• Correction: Crashing a project can increase its cost, and the project manager must weigh the benefits against the costs.
• Mistake: Failing to allocate resources effectively to tasks in a project.
• Correction: Resource allocation is critical in project management, and the project manager must ensure that resources are allocated efficiently to tasks.
• Mistake: Not using a Gantt chart or bar chart to visualize the project schedule.
• Correction: Visualizing the project schedule is essential to identify potential bottlenecks and make informed decisions.

Exam / Certification Tips

• Tip: Be able to explain the difference between crashing and fast tracking, and when to use each technique.
• Tip: Understand the formulas and frameworks used in project management, such as CPM, PERT, and the Crashing Cost Formula.
• Tip: Be able to create a Gantt chart or bar chart to visualize a project schedule.
• Tip: Understand the importance of resource allocation in project management.

Quick Practice Problem

A manufacturing company needs to produce 10,000 units of a product within 6 weeks. The production rate is 120 units/hour, and the company wants to crash the project to reduce the production time to 4 weeks. What is the crashing cost, assuming the original project cost is $100,000?

Answer: $20,000 (using the Crashing Cost Formula)

Explanation: The company needs to reduce the production time by 2 weeks, which is equivalent to 80 hours (120 units/hour × 2 weeks). The crashing cost is $20,000 (80 hours × $250/hour).

Last-Minute Cram Sheet

• ⚠️ Crashing a project can increase its cost.
• CPM and PERT are used to identify the critical tasks in a project.
• Gantt charts and bar charts are used to visualize the project schedule.
• Resource allocation is critical in project management.
• Fast tracking involves performing tasks in parallel to reduce the overall project duration.
• The Crashing Cost Formula is used to calculate the cost of crashing a project.
• The Fast Tracking Formula is used to calculate the time saved by fast tracking a project.
• The Critical Path Method (CPM) is used to identify the critical tasks in a project.
• The Program Evaluation and Review Technique (PERT) is used to estimate the duration of tasks in a project.
• The Resource Allocation Formula is used to allocate resources to tasks in a project.