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become a Project Executive in a large construction company. Currently, you are involved in a hospital construction project in North Ireland, where the indirect
become a Project Executive in a large construction company. Currently, you are involved in a hospital construction project in North Ireland, where the indirect cost is 130,000 per month and total normal direct cost (sum of normal direct costs of all activities) is 15,000,000. The senior project manager is under pressure with stakeholders to reduce the overall project duration. Thus, based on the project information provided by the project team (see Table 3), the project manager asked you to critically evaluate the three below scenarios and recommend the optimum one to satisfy stakeholders: Scenario 1: Reduce the project duration to 63 months Scenario 2: Reduce the project duration to 58 months Scenario 3: Reduce the project duration to 55 months Table 3: Project information Activity Normal Time (month) Crash Time (month) Crash Cost Per month () Predecessor A 20 17 150,000 - B 17 15 120,000 A C 18 16 100,000 A D 15 13 80,000 B, C E 14 11 75,000 B F 12 10 60,000 D, E The senior project manager has asked to report your full detail analysis using the below template: Table 4: Report template Duration Crashing Marginal crash cost (month) action () Project Indirect Cost () Cost () Project Direct Total Cost () Critical Path - - *add more rows if required.
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