Sunk Costs / Crash Costs / Time Trade-offs: Contributions for the Project Management

This paper seeks to add contributions of the innovation and industrial Economics to more used techniques of crashing, in the Projects Management domain. First, it presents the brute force method, improved for the use of the MSProject. Second, it develops a linear program approaches for determining the earliest crash completion time and for determining a least costly crash schedule, for the same home-building project used in the brute force method. Third, it establishes costs laws, which allow inferring that the cost of a project does not depend only on the production rate but depending also on the time were the first unit of production will be available, on the global volume of production and on the project completion time. Concluding, it is pointed out the importance of the project management concerning the search of dynamic and innovative solutions to the more important productive problems of the emergent economies.