Analysis of Time Cost and Resources in Projects

ANALYSIS OF TIME COST AND RESOURCES IN PROJECTS A. Time Cost Trade Off The completion of activities in a project requires the use of a minimum number of resources and optimum completion time, so that the activity can be completed at normal costs and normal duration. If at any time a faster completion is needed, the addition of resources allows the reduction of the project duration by compressing the duration of the activity, efforts must still be made to minimize the increase in cost. The cost control carried out is direct costs, because these costs will increase if the duration is reduced. This compression is carried out on activities that are on the critical path and have the lowest cost slope. Acceleration of duration can be carried out by increasing the number of workers, increasing working hours (overtime), adding or replacing more productive equipment, and replacing materials that can make work faster without reducing quality and improving construction implementation methods. Description: Time Components • Normal Time, which is the completion of activities under normal conditions. • Acceleration Time (Crash Time), which is the shortest possible time to complete activities. From these two components, the Total Acceleration Time can be obtained, with the equation: total acceleration time = normal time - acceleration time Cost Components • Total direct costs for the selected project duration, for example: employee and equipment costs. • Total indirect costs for the selected project duration, for example: consulting and administration costs. In a crashing project, there are three cost components, namely: • Normal Cost, which is the direct cost to complete activities under normal conditions. • Acceleration Cost (Crash Cost), which is the direct cost to complete activities under acceleration/crash conditions (at the shortest possible time to complete activities). From these two components, the Total Acceleration Cost can be obtained, with the equation: total acceleration cost = acceleration cost – normal cost Acceleration Cost per Unit Time (Slope), which is the direct cost to complete an activity in acceleration/crash conditions (in the shortest possible time conditions to complete the activity) in the smallest specified time unit, using the equation: 𝒕𝒐𝒕𝒂𝒍 𝒂𝒄𝒄𝒆𝒍𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒄𝒐𝒔𝒕 acceleration cost per unit time =𝒕𝒐𝒕𝒂𝒍 𝒂𝒄𝒄𝒆𝒍𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 B. Addition of Resources Addition of resources can be done in various ways including: 1. Addition of Working Hours Overtime work can be done by adding working hours every day, without adding the number of workers. Overtime work is dangerous and the work will be very heavy. Therefore, overtime work must be given an additional amount greater than normal wages. In addition, it is necessary to provide other additional equipment such as lights, work safety, health facilities and increased quality control due to the decline in workers' work ability (Setyorini and Wiharjo, 2005). Overtime work results in decreased productivity. Worker productivity will decrease by 0.1 and work performance will decrease by 10% for every additional hour of overtime. 2. Addition of Workers Addition of workers in question is the addition of the number of workers in one work unit to carry out an activity without adding working hours. The addition of optimum workers will increase work productivity because the land for work is too narrow (Setyorini and Wiharjo, 2005). For this reason, the following things need to be considered: • Capacity of the place to accommodate the number of workers • Ease/flexibility in carrying out work • Supervision of workers • Work safety