Calculate the crash cost-per-day


Assignment Problem: Given the information provided below (predecessors, normal time, normal cost, crash time (the minimum duration) and crash cost (the cost if crashed to the minimum duration) for an nine-activity (a to i) project) answer the questions (a) through (e) using this template.

Activity

Predecessor

Normal Time

Normal Cost

Crash Time

Crash Cost

a

-

4

 $     50

2

 $       150

b

a

4

 $     40

2

 $       200

c

b

7

 $     70

4

 $       160

d

c, f

2

 $     20

1

 $         50

e

c

3

 $     30

2

 $       100

f

b

8

 $     80

5

 $       290

g

d, e

5

 $     50

3

 $       100

h

f

6

 $     60

2

 $       180

i

g, h

3

 $     50

3

  $          50


Question (a). Create the network diagram in the application of your choice and then insert a screen shot of the diagram here. The diagram can be created easily in MS Word using the Insert Shapes function. Alternatively, you can post an excel file with the network diagram rather than post it in the space below.

Identify the critical path or critical paths (remember there may be more than one) of the network, the time, and cost of the normal level of activity for the project:

  • The critical path (or paths) is: _________
  • The project duration: _________
  • The project cost is: ________

Question (b). Calculate the crash cost-per-day. Enter your response to question 1(b) in the table provided below

Question (c). Find the optimal way to crash the project by one day.

  • What is the projected project cost?
  • What is the projected project duration?
  • What is the critical path (or paths)?
  • What task or tasks were crashed?

Explain the results of your calculations.

Question (d). Find the optimal way to crash the project by two days.

  • What is the projected project cost?
  • What is the projected project duration?
  • What is the critical path (or paths)?
  • What task or tasks were crashed?

Explain the results of your calculations.

Question (e). Calculate the shortest completion time for the project.

  • What is the projected project cost?
  • What is the projected project duration?
  • What is the critical path (or paths)?
  • What task or tasks were crashed?

Explain the results of your calculations.

Question (f). In calculating which task to crash next, what other factor besides cost and whether the task is on the critical path might you consider?

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