Eleventh Example – Piping Repair & Improvement Project with Time and Cost Plan

If the Project Manager has a costed project schedule and wants to know options for minimising the project duration, what advice should the Project Planner provide? Read on to see how all key information can be provided through the #TimeCostCurves program.

Figure 1: Costed project schedule setup for producing the TimeCostCurve. Cost figures are taken from the source webpage.

Setup assumptions for TimeCostCurve program:

Assumptions: Assumed Value: Remarks:
  1. Overheads:

$900/day Assign Indirect Overheads resource to project task
  1. Fixed (sunk) costs:

$29,184 Direct (normal) costs
  1. Crashable tasks

ID 10, ID 12, ID 19 Assume can crash by only 1 full day only (not partial days) for each task.
  1. Resource-loading only applied to crashable tasks

Direct Task Cost = Direct Labour + Direct Materials Direct
  1. Site Worker wage

$88/hr Onsite loaded
  1. Office Worker wage

$80/hr Office-based

Figure 2: Normal conditions schedule.

Figure 3: TimeCostCurve with Task ID data points

Advice based on TimeCostCurve program:

Schedule: Duration (days): Cost ($): Remarks:
Normal schedule 18 days $ 45,834
Least-cost schedule 17 days $ 45,188
Least-time schedule 16 days $ 46,336
Fully-crashed schedule 16 days $ 46,336 There is no added cost compared to the least-time schedule (which would be of no benefit since the critical path cannot be further shortened).

Figure 4: Schedule filtered for expedited activities with reasons.

Figure 5: Least-time schedule