What is time cost optimization?
The objective of time cost optimisation is to determine optimum project duration corresponding to the minimum total cost and this can be achieved with help of reducing the duration of critical activities in the network in order by breaking the activities of critical activities to minimize the overall project duration.
What is cost optimization?
Cost optimization is a business-focused, continuous discipline to drive spending and cost reduction, while maximizing business value. It includes: Obtaining the best pricing and terms for all business purchases. Standardizing, simplifying and rationalizing platforms, applications, processes and services.
What is the need to optimize cost with time in a construction project?
The objective of the optimization is to find a construction project schedule with the optimal activity start times and durations so as to minimize total project cost, subjected to the generalized precedence relationship constraints, the activity duration constraints and the project duration constraints.
What is product cost optimization?
Product cost optimization is a strategy to identify the impact of these elements on cost and implement sustainable measures to optimize it. Imperative to the optimization activity is establishing a scientific baseline of cost for each component of a product.
What is the difference between PERT and CPM?
The difference between PERT and CPM is that PERT stands for Program Evaluation and Review Technique, and CPM stands for Critical Path Method. PERT manages unpredictable activities, whereas CPM manages predictable activities. PERT is related to the events, but CPM is related to the activities.
What is the relationship between time and cost?
In the construction projects, time and cost have a very close relationship. That relationship can be illustrated in a linear fashion, which means for the same type of project, the greater the volume of work the greater the cost and time are required in order to complete the whole project.
What are the types of optimization techniques?
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- Continuous Optimization.
- Bound Constrained Optimization.
- Constrained Optimization.
- Derivative-Free Optimization.
- Discrete Optimization.
- Global Optimization.
- Linear Programming.
- Nondifferentiable Optimization.
What is the concept of optimization?
: an act, process, or methodology of making something (such as a design, system, or decision) as fully perfect, functional, or effective as possible specifically : the mathematical procedures (such as finding the maximum of a function) involved in this.
What is optimization in construction projects?
In any construction project it is the desire of any owner to get the most for their money. It is critical to optimize the tradeoffs of the three components of Cost, Schedule, and Quality.
What are the parameters considered for optimization in construction projects?
Key factors for project optimisation (from a management perspective) are time, capital (cost), and resources. It should be noted here that the shortest duration does not correspond to the lowest execution cost.
What are the similarities and differences between PERT and CPM?
Comparison Chart
| BASIS FOR COMPARISON | PERT | CPM |
|---|---|---|
| Focuses on | Time | Time-cost trade-off |
| Estimates | Three-time estimates | One time estimate |
| Appropriate for | High precision time estimate | Reasonable time estimate |
| Management of | Unpredictable Activities | Predictable activities |
Is PERT or CPM better?
PERT technique is best suited for a high precision time estimate, whereas CPM is appropriate for a reasonable time estimate. PERT deals with unpredictable activities, but CPM deals with predictable activities. PERT is used where the nature of the job is non-repetitive.
