Question
In the analysis of the following 2 questions, assume that no uncertainty exists in durations of any of the activities. The company finally decides to
In the analysis of the following 2 questions, assume that no uncertainty exists in durations of any of the activities.
The company finally decides to proceed with running the project with only expediting activity D by 1 day only which would additionally cost $400 (=$2000 of full expedition cost /5) when fully completed.
After 25 days passes from the start of the project, the following progress is made through the project. Note that the progress of 10% in activity D is done according to the plan of its 1-day expedition (i.e. with respect to a duration of 25 days) which, by the progress so far in the project, has already incurred 10% of the projected total cost as well.
Activity | A | B | C | D | E | F | G | H |
---|---|---|---|---|---|---|---|---|
Progress on day 25 | 100% | 100% | 100% | 10% | 20% | 0% | 0% | 0% |
1. Continuing this progress, which day (counted from the beginning of the project) can the project be planned to be finished at best?
2. Eli Orchid is trying to figure how to expedite the project at this point, after seeing the progress until day 25. The activities it can expedite are the same activities D, E, and G. Since activity D is expedited a little bit so far, it is still possible to expedite it "further" than the current amount for the remainder of this activity (but we cannot slow it down to no expedition at this point). Assume that the remaining duration and cost (both regular and expedited cases) are proportional to the remaining percentage progress of each activity. If the company still likes to finish the project by the same target of day 65, given the current progress, how much more would it have to pay for expediting activities from this point on (in addition to what is already spent for activity D by day 25, i.e. 10% of $400)?
Hint: in the first step, assume it is time 0, and lay down normal/crash time & cost (note that activity D has already been decided to be expedited by 1 day meaning a normal cost of $400, but it is allowed to be expedited more). Then revise them according to the fact that 25 days has passed.
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