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Hello, I need help with the following exercise: Activity Crash Cost (slope) | Maximum Crash Time Normal Time (Duration) Normal Cost (Direct cost) A 80
Hello, I need help with the following exercise:
Activity Crash Cost (slope) | Maximum Crash Time Normal Time (Duration) Normal Cost (Direct cost) A 80 2 10 40 B 30 3 8 10 C 40 1 5 80 D 50 2 11 50 E 100 4 15 100 E 30 1 20 Total 300 1. Identify the current critical path that determines the total project duration by adding the duration for each activity paths: A+D+F = B+F = C+E+F= Calculate the project cost for the critical path: Direct Costs = + Indirect Costs = = Project Cost = 3. Identify activities on the critical path based on crash time to equal the reduced duration. 4. Identify Critical Path activity crash cost(s) for reduced durations (x=26, 25, 24, 23, 22 days) use table below. X Direct Indirect Savings Crash Notes Crash Cost Total Days Costs Costs / day Activity(s) CP=critical path Cost 27 $300 $300 None 26 $300 $240 -$10 Add costs for CP activities that reduce by 1 day 25 $300 $180 $20 Add costs for CP activities that reduce by 2 days 24 $300 $120 $30 Add costs for CP activities that reduce by 3 days 23 $300 S 60 -$40 Add costs for CP activities that reduce by 4 days 22 $300 S 50 $50 Add costs for CP activities that reduce by 5 days 5. Determine total cost for each duration = direct cost + indirect cost - savings/day + crash cost 6. Choose the lowest total cost and number of days to reduce the duration of the projectStep by Step Solution
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