Crash Cost Notes: Definitions & Explanations PDF | Download eBooks

Study Crash Cost lecture notes PDF with project management definitions and explanation to study What is Crash Cost?. Study crash cost explanation with project management terms to review project management course for online MBA programs.

Crash Cost Notes:

Activities are assumed to be performed under normal conditions. The activity durations are estimated based on this assumption. However situations arise when the activities have to be completed earlier than the actual estimated time which is called crash time. When the activities are performed under crash time, the cost associated with the activities is called crash cost. Crash cost is the cost which is incurred when additional resources are used to perform the activities. For example, if three painters are required to paint a room in 5 days but the activity has to be accelerated due to some reason to be completed within three days, more painters will be required. The cost associated with hiring extra painters to do the task early is called crash cost. The crash cost of the overall project is the sum of crash costs of all the activities.

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