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What is the formula for crash costing?

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Well first is there actually a formula for crash costing? If yes then what is it? I tried to search for a formula but all I got were results that were irrelevant to project management.
asked 3 years ago by anonymous

3 Answers

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There is a formula used for crashing project plans-

(Crash Cost) - (Normal Cost) / (Normal Time - Crash Time) = Crash Cost per unit
answered 3 years ago by anonymous
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You can only crash the project schedule, and when you crash it, you will typically increase the costs (by adding extra labor). But if you manage to crash the schedule without adding that extra labor (maybe by using idle resources), then maybe at this point you can say that you are crashing the costs.

Regardless of what you want to do, crashing the schedule or crashing the costs, there is no formula for doing so.
answered 3 years ago by anonymous
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I've only heard "crashing" used in terms of schedule.

Crashing cost presumably means reducing costs.  The way to do that is to manage one or more of the cost drivers, labor cost per hour, cost of tools, quantity of labor, merging of tasks for efficiencies, etc.
answered 3 years ago by anonymous

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