Q6 Harley Motor Inc. 15 points Time allocated: 30 minutes Harley Motor Inc. has just received an order for a specially designed electric motor from a customer. The contract states that the project is required to be completed in 13 days starting from now. There is a penalty cost of $100 per day for each day the project is delayed beyond the 13-day deadline. The indirect project costs amount to $200 per day. By completing the project earlier, the company management hopes to be able to eliminate the associated penalty costs and the indirect project costs. The management has carefully considered each activity and the possibility of reducing the activity time and the associated costs. Most of the activities can be expedited by expending additional resources. Expediting costs vary based on the nature of the task. The data on direct costs, precedence relationships, and the costs for expediting various activities are provided below: Activity Immediate Normal Crash Crash Normal cost Predecessors Time Time cost/day (days) (days) (dollars) (dollars) A None 4 3 $1000 $300 B None 7 4 $1400 $200 C None 5 4 $2000 $700 D 6 5 $1200 $200 E B 3 2 $900 $200 F C 11 6 $2500 $250 G D,E 4 3 $800 $650 H F,G 3 1 $300 $100 Note that crash cost is incurred in addition to the normal costs. For example, activity A which normally takes 4 days to finish, can be done in 3 days and it would cost an additional $300 to expedite this activity over and above the normal cost of $1000. Note that normal costs do not include the indirect project costs. a) Construct a project network diagram (precedence diagram) and using the forward and backward pass method, determine the critical path and the earliest time that the project can be completed without crashing any of the activities. What would be the corresponding total costs that include direct, indirect and penalty costs when no crashing of activities is permitted. (6 points) b) Using the information from your analysis for part (a), consider the following three questions. Please note that the questions are independent stand-alone questions. (i) Suppose Harley Motor Company has just received information that activity D will require an additional day to complete the task due to unforeseen delays. Will this delay result in the delay of the project? Explain. (1 points) (ii) A piece of equipment required for activity E is damaged. How much extra time is available for repair without delaying the project? (1 points) c) Ignoring the information provided in part (b), if you are permitted to crash activities and you desire to expedite the project completion time in the most cost-effective manner, what is the optimal length of the project that you would recommend? Show the various activities that you would crash to achieve the completion date that you have recommended. Also determine the corresponding total costs associated with this completion date. For each reduction in project completion time, show the activities that you crashed, the duration by which they were crashed, the critical path(s), the revised project completion time and the total project costs that include the normal cost, the indirect project costs and the penalty costs. (7 points) Q6 Harley Motor Inc. 15 points Time allocated: 30 minutes Harley Motor Inc. has just received an order for a specially designed electric motor from a customer. The contract states that the project is required to be completed in 13 days starting from now. There is a penalty cost of $100 per day for each day the project is delayed beyond the 13-day deadline. The indirect project costs amount to $200 per day. By completing the project earlier, the company management hopes to be able to eliminate the associated penalty costs and the indirect project costs. The management has carefully considered each activity and the possibility of reducing the activity time and the associated costs. Most of the activities can be expedited by expending additional resources. Expediting costs vary based on the nature of the task. The data on direct costs, precedence relationships, and the costs for expediting various activities are provided below: Activity Immediate Normal Crash Crash Normal cost Predecessors Time Time cost/day (days) (days) (dollars) (dollars) A None 4 3 $1000 $300 B None 7 4 $1400 $200 C None 5 4 $2000 $700 D 6 5 $1200 $200 E B 3 2 $900 $200 F C 11 6 $2500 $250 G D,E 4 3 $800 $650 H F,G 3 1 $300 $100 Note that crash cost is incurred in addition to the normal costs. For example, activity A which normally takes 4 days to finish, can be done in 3 days and it would cost an additional $300 to expedite this activity over and above the normal cost of $1000. Note that normal costs do not include the indirect project costs. a) Construct a project network diagram (precedence diagram) and using the forward and backward pass method, determine the critical path and the earliest time that the project can be completed without crashing any of the activities. What would be the corresponding total costs that include direct, indirect and penalty costs when no crashing of activities is permitted. (6 points) b) Using the information from your analysis for part (a), consider the following three questions. Please note that the questions are independent stand-alone questions. (i) Suppose Harley Motor Company has just received information that activity D will require an additional day to complete the task due to unforeseen delays. Will this delay result in the delay of the project? Explain. (1 points) (ii) A piece of equipment required for activity E is damaged. How much extra time is available for repair without delaying the project? (1 points) c) Ignoring the information provided in part (b), if you are permitted to crash activities and you desire to expedite the project completion time in the most cost-effective manner, what is the optimal length of the project that you would recommend? Show the various activities that you would crash to achieve the completion date that you have recommended. Also determine the corresponding total costs associated with this completion date. For each reduction in project completion time, show the activities that you crashed, the duration by which they were crashed, the critical path(s), the revised project completion time and the total project costs that include the normal cost, the indirect project costs and the penalty costs. (7 points)