$1$ of $2$ SCM $300-$ Lab $05-$ Project Management Critical Paths and Crashing PROJECT MANAGEMENT $-$ Critical Paths and Crashing You are a contractor that has been asked to build an apartment complex. The associated AON Network diagram and the Time$/$Cost table are provided below. $($Based on the table, you could crash activity B for one week only at a cost of $$250$ or two weeks for $$500.)$ The owner wants the apartment complex built in $29$ weeks. The owner will charge a penalty cost of $$1500$ per week if the complex is not completed on time. A$-8$ C$-5$ F$-4$ E$-8$ H$-4$ B$-5$ D$-6$ G$-6$ Activity Minimum Time Normal Time $85$ B $573355|||||$ IO Crash Cost per Week $2002501750500150012001000200068463542$CRASH FIRST ITEM Crash the project by $1$ week by altering the activity that will save us the most money. $6.$ Which activity will you crash first? Make the necessary change to your network diagram. ACEFH ADEFH$-$ ACEGH ADEGH BDEFH BDEGH $7$ What is the resulting critical path $($or paths$)$ and also the new project duration? $8.$ How much money did you save $($net savings$)$ by crashing this activity? Net Savings $=1$ Week Penalty Saved $-1$ Week Crash Cost CRASH SECOND ITEM Again, crash the project by $1$ week by altering the activity that will save us the most money. $19$ Which activity will you crash second? Make the necessary change to your network diagram. ACEFH ADEFH ACEGH ADEGH BDEFH BDEGH $10.$ What is the resulting critical path $($or paths$)$ and also the new project duration? $11.$ How much money did you save $($net savings$)$ by crashing this activity? Net Savings $=1$ Week Penalty Saved $-1$ Week Crash Cost CRASH THIRD ITEM Crash the project by $1$ week by altering the activity that will save us the most money. This will get us to the desired completion date that will eliminate the penalties. $12.$ Which activity will you crash third? Make the necessary change to your network diagram ACEFH ADEFH ACEGH ADEGH BDEFH BDEGH $13.$ What is the resulting critical path $($or paths$)$ and also the new project duration? $14.$ How much money did you save $($net savings$)$ by crashing this activity? Net Savings $=1$ Week Penalty Saved $-1$ Week Crash Cost TOTAL SAVINGS $15.$ How much did you save, in total by crashing the system down to $29$ weeks?