Question

3. The client of a project has requested the project team to crash 8 hours of time. The table below provides the necessary information about the possible project crashing. (a) What is the crash cost for 8 hours of time-savings? (b) Assume the team calls the client and asks for a project extension, reducing the amount of time they need to crash. The project team has a $20 crash budget. Is the budget sufficient to crash 4 hours of time? Activity А B. с D E F G H Normal Crash Duration Normal Duration (hours) Cost ($) (hours) 2 10 2 3 15 2 5 25 4 3 20 1 6 30 4 5 7 35 10 50 Crash Immediate Cost (S) Predecessors 0 None 23 A 30 B 24 с 45 с 0 E 50 80 1 1 al 7 D G MacBook Air

Answer 1

Network Diagram:

3 jo ng 2 5 3 A B C STAA it 79

Possible Paths:

Start-A-B-C-D-H-End = 23 hours

Start-A-B-C-E-F-G-H-End = 34 hours ......... Critical Path (longest duration path

Start-A-B-C-F-G-H-End = 28 hours

For reducing the project duration, the least incremental crash cost activities on Critical Path should be crashed.

Incremental Crash Cost = (Crash Cost - Normal Cost) / (Normal Duration - Crash Duration)

Activity	Normal Time	Crash Time	Normal Cost	Crash Cost	Incremental Crash Cost
A	2	2	10	0	NA
B	3	2	15	23	8
C	5	4	25	30	5
D	3	1	20	24	2
E	6	4	30	45	7.5
F	1	1	5	0	NA
G	7	6	35	50	15
H	10	7	50	62	4

Crashing Schedule to reduce the project duration by 8 hours i.e 34 - 8 = 26 hours

Crashed Activity	No Crashing	H	C	E	B	G
No. of days Crashed	0	3	1	2	1	1
Crashing Cost	0	12	5	15	8	15
Total Crashing Cost	0	12	17	32	40	55
Critical Path	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H
TPT	34	31	30	28	27	26

a) From the above table, crash cost for 8 hours of time-saving is $55

b) From the above table, 20$ budget is sufficient to crash 4 hours of time, as it will only require $17

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