Predecessor Crash Duration Duration 2 10 3 8 2 ID A B D E F G H A A B 2 1 4 6 10 6 E 1 Activity SW Decision Stakeholder Input ID Data Sources DB Setup Draft UI Design Data Cleaning Spec Workstation UI Testing Data Validation DB Test Order workstations UI Sign off Load data Install workstations Integrate UI, Database Final User test Cost type General Unskilled Skilled Unskilled Skilled Unskilled General Skilled Skilled Unskilled Unskilled General Unskilled Unskilled Skilled General 1 15 E Normal Cost 600 2,000 900 400 1,800 2,000 200 4,500 3,600 1,000 1,000 300 800 1,600 1,500 2,400 10 Crash Cost 600 3,600 1,400 450 2,800 2,700 200 7,000 5,600 1,800 5,000 300 1,350 2,700 2,100 2,400 F 12 8 D, F 4 1 J K L M 5 20 G 10 H 1 1 4 3 N 8 6 0 LM NO 5 3 P 8 8 Upper level management has now seen your project plan. They need the project fully installed prior to the new fiscal year, because they want to make a positive announcement to shareholders. This means that the project must be completed in 40 days. They have indicated that all resources needed will be available. Using the following costing data, and using your project design from Section B, provide a log that demonstrates the most cost-effective way to reduce the project duration down to no more than 40 days. There are two ways that you can quickly speed up the project. The first is to use outsourced services. The activities are coded according to the type of labour - General, Skilled, and Unskilled. Activities that use General labour must be internal, and these durations cannot be crashed. Skilled and unskilled labour can both be outsourced. The second way that costs can be reduced is to lessen the waiting time to receive the new workstations. Currently the cost is $1,000 to configure the workstations and deliver in 20 days. However, there is an option to reduce the delivery time to 10 days if the configuration fee is increased to $5,000. Indirect costs for the project are estimated to be $500/d. See the following page for the data required and a template of the activity log. i) ii) iii) Create a completed data table and activity log that demonstrates crashing the project to 40 days using the most cost-effective means. Use the standard methodology used in class. What are the new direct, indirect and total costs for the project? Even if we did not need to reduce the project duration, would it have made sense to do so, and to what point? What new risks have been introduced by crashing the project in this way? iv) Predecessor Crash Duration Duration 2 10 3 8 2 ID A B D E F G H A A B 2 1 4 6 10 6 E 1 Activity SW Decision Stakeholder Input ID Data Sources DB Setup Draft UI Design Data Cleaning Spec Workstation UI Testing Data Validation DB Test Order workstations UI Sign off Load data Install workstations Integrate UI, Database Final User test Cost type General Unskilled Skilled Unskilled Skilled Unskilled General Skilled Skilled Unskilled Unskilled General Unskilled Unskilled Skilled General 1 15 E Normal Cost 600 2,000 900 400 1,800 2,000 200 4,500 3,600 1,000 1,000 300 800 1,600 1,500 2,400 10 Crash Cost 600 3,600 1,400 450 2,800 2,700 200 7,000 5,600 1,800 5,000 300 1,350 2,700 2,100 2,400 F 12 8 D, F 4 1 J K L M 5 20 G 10 H 1 1 4 3 N 8 6 0 LM NO 5 3 P 8 8 Upper level management has now seen your project plan. They need the project fully installed prior to the new fiscal year, because they want to make a positive announcement to shareholders. This means that the project must be completed in 40 days. They have indicated that all resources needed will be available. Using the following costing data, and using your project design from Section B, provide a log that demonstrates the most cost-effective way to reduce the project duration down to no more than 40 days. There are two ways that you can quickly speed up the project. The first is to use outsourced services. The activities are coded according to the type of labour - General, Skilled, and Unskilled. Activities that use General labour must be internal, and these durations cannot be crashed. Skilled and unskilled labour can both be outsourced. The second way that costs can be reduced is to lessen the waiting time to receive the new workstations. Currently the cost is $1,000 to configure the workstations and deliver in 20 days. However, there is an option to reduce the delivery time to 10 days if the configuration fee is increased to $5,000. Indirect costs for the project are estimated to be $500/d. See the following page for the data required and a template of the activity log. i) ii) iii) Create a completed data table and activity log that demonstrates crashing the project to 40 days using the most cost-effective means. Use the standard methodology used in class. What are the new direct, indirect and total costs for the project? Even if we did not need to reduce the project duration, would it have made sense to do so, and to what point? What new risks have been introduced by crashing the project in this way? iv)
