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A manufacturing organization has received a turn - key project for manufacture of custom - made equipment for one of its clients. The project involves

A manufacturing organization has received a turn-key project for manufacture of custom-made
equipment for one of its clients. The project involves several activities and the following table has the
details on the activities, duration and normal and crashing costs for the activities. Since it is a turnkey
project, the organization incurs a cost of 6,000 per week towards special supervision of the project.
This cost is incurred for the length of the project duration. The project manager would like to know if
there is some merit in crashing the project duration. Evaluate the costtime trade-offs involved in the
project and suitably advise the project manager
Activity Predecessor Normal Duration (Weeks) Crash Duration (Weeks) Normal Cost Crash Cost
A -6510,00015000
B -4312,00014000
C A 5 NA 16,000 NA
D B 3 NA 18000 NA
E C 421100017000
F D 422400032000
G C 431200018000
H D 965000068000
I E,F 2 NA 16000 NA
J G, H, I 321000011000

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