Question
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.
\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
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