Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

image text in transcribed \begin{tabular}{llllll} \hline Activity & \begin{tabular}{l} Pre- \\ deces- \\ sor \end{tabular} & \begin{tabular}{l} Normal \\ Dura- \\ tion \\ (Weeks) \end{tabular} & \begin{tabular}{l} Crash \\ Dura- \\ (Won \\ (Weeks) \end{tabular} & \begin{tabular}{l} Nor- \\ mal \\ Cost \end{tabular} & \begin{tabular}{l} Crash \\ Cost \\ () \end{tabular} \\ \hline A & - & 6 & 5 & 10,000 & 15,000 \\ \hline B & - & 4 & 3 & 12,000 & 14,000 \\ \hline C & A & 5 & NA & 16,000 & NA \\ \hline D & B & 3 & NA & 18,000 & NA \\ \hline E & C & 4 & 2 & 11,000 & 17,000 \\ \hline F & D & 4 & 2 & 24,000 & 32,000 \\ \hline G & C & 4 & 3 & 12,000 & 18,000 \\ \hline H & D & 9 & 6 & 50,000 & 68,000 \\ \hline I & E, F & 2 & NA & 16,000 & NA \\ \hline J & G, H, I & 3 & 2 & 10,000 & 11,000 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Successful Time Management

Authors: Patrick Forsyth

2nd Edition

0749460377, 978-0749460372

More Books

Students also viewed these General Management questions