3. Concept of crashing
Cc and Cn are the crash and normal costs,
respectively,
Tc and Tn are the crash and normal times for the
activity.
The cost slope is how much it would cost to speed up
or slow down the activity.
4. Concept of crashing explained
Thus, for each week the activity duration is
reduced from the normal time of 8 weeks, the
cost will increase by $3K. Completing the
activity 1 week earlier (from 8 weeks to 7
weeks) would alter the cost from the normal
cost of $9K to the “sped up” cost of $9K + $3K
= $12K
completing it another week sooner (in 6
weeks) would increase the cost to $12K + $3K
= $15K
