Time-cost trade-offs in project management

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Reference no: EM133740443

Question

What is a response to the following discussion - Time-cost trade-offs in project management involve evaluating the relationship between the time required to complete project activities and the associated costs. To identify and analyze these trade-offs, project managers must follow a systematic approach. First, they determine the project's critical path, which is the sequence of activities that dictates the minimum completion time for the entire project. Any delays on this path will directly delay the project. Next, managers gather essential data, including the normal time (NT) and normal cost (NC) for each activity, the crash time (CT), which is the shortest possible time to complete the activity, and the crash cost (CC), which is the cost associated with achieving the crash time. Using this information, they calculate the cost to crash an activity per period using the formula: Cost to crash per period = CC - NC / NT - CT Cost to crash per period = NT - CT / CC - NC ?This formula helps in determining the additional cost required to reduce the duration of an activity by one time unit. The analysis then focuses on activities on the critical path, as reducing their durations will have.

Reference no: EM133740443

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