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The Crash Cost Given Cost Slope formula calculates the total cost of completing a project activity when additional resources are applied to reduce the completion time. It helps project managers evaluate the cost implications of accelerating project schedules.
The calculator uses the formula:
Where:
Explanation: The formula calculates the additional cost incurred when reducing activity duration from normal time to crash time, then adds this to the normal cost to get the total crash cost.
Details: Accurate crash cost calculation is essential for project crashing decisions, helping determine the optimal balance between project duration and cost when schedule compression is required.
Tips: Enter cost slope in $/day, normal time and crash time in days (crash time must be ≤ normal time), and normal cost in dollars. All values must be non-negative.
Q1: What is cost slope in project management?
A: Cost slope represents the additional cost per unit time reduction when crashing an activity. It indicates how much extra cost is required to reduce the activity duration by one time unit.
Q2: When should project crashing be considered?
A: Project crashing should be considered when there's a need to accelerate project completion, such as meeting deadlines, avoiding penalties, or taking advantage of early completion bonuses.
Q3: What's the difference between normal time and crash time?
A: Normal time is the estimated duration under normal working conditions, while crash time is the minimum possible duration when maximum resources are applied.
Q4: Are there limitations to this calculation?
A: This calculation assumes linear cost-time relationships and may not account for all real-world complexities like resource constraints, quality impacts, or non-linear cost increases.
Q5: How is cost slope determined?
A: Cost slope is typically calculated as (Crash Cost - Normal Cost) / (Normal Time - Crash Time), representing the marginal cost of time reduction.