Funds for crashing

Submitted by mkp on Wed, 11/11/2015 - 06:31

Hello!

Please help me understand the following:

Crashing involves additional resources and this means it needs extra funds. I am wondering from where this extra fund comes from? Does it come from contingency reserve or management reserve?

Also, are crashing always planned in advance? If not does crashing needs to go to change control board for approval?

Thanks for any insights on this!

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admin

Fri, 11/13/2015 - 05:37

Practically speaking in a real project it eats up your project margin. If you were going to make 100K USD in a project due to crashing you may make only 50K USD

As far as PMP goes, you will have to make adjustments to meet schedule, and crashing is one of the techniques, if you do it during schedule planning then it will already be budgeted when you do cost planning.

If you add resources during execution as risk mitigation then it will come from one of the reserves like contingency reserve.