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Projects, Metrics, and Quality PROJECT MANAGEMENT Critical Paths and Crashing You are a contractor that has been asked to build an apartment complex. The associated

Projects, Metrics, and Quality PROJECT MANAGEMENT Critical Paths and Crashing You are a contractor that has been asked to build an apartment complex. The associated AON Network diagram and the Time/Cost table are provided below. (Based on the table, you could crash activity B for one week only at a cost of $250 or two weeks for $500.) The owner wants the apartment complex built in 29 weeks. The owner will charge a penalty cost of $1500 per week if the complex is not completed on time. A-8 C-5 F -4 E-8 H-4 B-5-6-6 Activity Normal Time Minimum Time Crash Cost per Week 87200250 B 53 C 31750565500 D E 851500 F 431200 G 651000 H 422000CRASH THIRD ITEM Crash the project by 1 week by altering the activity that will save us the most money. This will get us to the desired completion date that will eliminate the penalties. 20. Which activity will you crash third? Make the necessary change to your network diagram. ACEFH- ADEFH - ACEGH - ADEGH- BDEFH - BDEGH -21. What is the resulting critical path (or paths) and also the new project duration? 22. How much money did you save (net savings) by crashing this activity? Net Savings =1 Week Penalty Saved -1 Week Crash Cost TOTAL SAVINGS 23. How much did you save, in total by crashing the system down to 29 weeks?

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