Question

Office Automation Inc., has developed a proposal for introducing a new computerized office system that will improve word processing and interoffice communications for a particular company. Contained in the proposal is a list of activities that must be accomplished in order to complete the new office system project. Information about the activities is shown in the table below. Times are in weeks.

Data for Office Automation, Inc.
Activity	Description	Immediate Predecessors	Normal Time	Crash Time	Normal Cost ($)	Crash Cost ($)
A	Plan needs	-----------	10	8	30	70
B	Order equipment	A	8	6	120	150
C	Install equipment	B	10	7	100	160
D	Set up training lab	A	7	6	40	50
E	Training course	D	10	8	50	75
F	Testing system	C, E	3	3	60	-------

a). Show the network for the project.

b). Develop an activity schedule for the project using normal times.

c). What are the critical path activities and what is the expected project completion time?

d.) Use the Trial and Error Method to solve this problem. What is the Total Cost of Crashing including the Normal Cost?

Answer 1

Paths are:

A-B-C-F = 33 weeks

A-D-E-F = 31 weeks

So, critical path is A-B-C-F

Total added cost due to crashing = 1,52,500