13- Time Trade-off - Project Management Time Trade off...

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Hesham A. Aziz 1 Project Management Time Trade- off Reducing Project Duration Dr. Hesham A. Aziz
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Hesham A. Aziz 2 Rationale for Reducing Project Duration Time Is Money: Cost-Time Tradeoffs Reducing the time of a critical activity usually incurs additional direct costs. Cost-time solutions focus on reducing (crashing) activities on the critical path to shorten overall duration of the project.
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Hesham A. Aziz 3 Reasons for imposed project duration dates: Reasons for imposed project duration dates: Customer requirements and contract Customer requirements and contract commitments commitments Time-to-market pressures Time-to-market pressures Incentive contracts (bonuses for early Incentive contracts (bonuses for early completion) completion) Unforeseen delays Unforeseen delays Overhead and goodwill costs Overhead and goodwill costs Pressure to move resources to other Pressure to move resources to other projects projects
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Hesham A. Aziz 4 Options for Accelerating Project Completion Adding Resources Outsourcing Project Work Scheduling Overtime Establishing a Core Project Team Do It Twice—Fast and Correctly Fast-Tracking Critical-Chain Reducing Project Scope Compromise Quality
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Hesham A. Aziz 5 Explanation of Project Costs Project Indirect Costs Costs that cannot be associated with any particular work package or project activity. Supervision, administration, consultants, and interest Costs that vary (increase) with time. Reducing project time directly reduces indirect costs. Direct Costs Normal costs that can be assigned directly to a specific work package or project activity. Labor, materials, equipment, and subcontractors Crashing activities increases direct costs.
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Hesham A. Aziz 6 Reducing Project Duration to Reduce Project Cost Compute total costs for specific durations and Compute total costs for specific durations and compare to benefits of reducing project time. compare to benefits of reducing project time.
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This note was uploaded on 03/17/2012 for the course CEM 661 taught by Professor Dr.heshama.aziz during the Spring '10 term at American University in Cairo.

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13- Time Trade-off - Project Management Time Trade off...

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