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The interval of time immediately before a project is due, when it becomes apparent that the schedule has slipped and everyone is going to have to work like dogs to try to complete the project in time. Crunch time usually occurs during the period between the next-to-last scheduled milestone (prior to which everyone was able to delude themselves tht the schedule had NOT slipped) and the final deadline for delivery. During crunch time, workers are in crunch mode. Prevalent in the software industry, but used elsewhere as well.
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