The crash cost associated with shortening the schedule


Draw the activity on node (AON) project network using Microsoft Project or Visio. Perform a critical path analysis for the network and calculate the earliest start (ES), earliest finish (EF), latest start (LS), and latest finish (LF) times. Calculate the slack time for each activity. Identify the critical path.


Assume that the organization will receive a $1,000 bonus for each day the duration of the project is shortened. The organization is also responsible for paying the crash cost associated with shortening the schedule.

Task

Predecessor

Normal Time

Crash Time

Crash Cost Slope

A

None

3

3

NA

B

A

2

2

NA

C

A

6

2

$600

D

A

5

5

NA

E

B

3

1

$600

F

C

2

2

NA

G

D

7

3

$600

H

F, G

4

4

NA

I

E

5

5

NA

J

H

4

4

NA

K

I, J

7

7

NA

1. Draw the AON network diagram.

 

2. The earliest start (ES), earliest finish (EF), latest start (LS), and latest finish (LF) times. Calculate the slack time for each activity. Identify the critical path

3. Assume that the organization will receive a $1,000 bonus for each day the duration of the project is shortened. The organization is also responsible for paying the crash cost associated with shortening the schedule.

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