Question [10 Marks]

Assuming, you are leading a system upgrade project and the project schedule that has been signed shows a duration of 50 weeks. After careful review, higher management has decided that the project must finish within 44 weeks. They ask you and your team to develop a plan to crash the schedule based on cost.

There are five activities on the critical path that can be crashed.

Activity A has a duration of 6 weeks and can be shortened by 1.5 weeks for a cost of $3,000. Activity B has a duration of 9 weeks and can be shortened by 4 weeks for a cost of $16,000. Activity C has duration of 12 weeks and can be shortened by 2.5 week for a cost of $5,000. Activity D has a duration of 5 weeks and can be shortened by 2 weeks for a cost of $2,000. Activity E has a duration of 8 weeks and can be shortened by 3 weeks for a cost of $9,000.

Hint: When crashing we want to save the most amount of time for the least amount of money.

1. Which activities should be crashed to finish the project within 44 Weeks? [6 Marks]
2. What is the total crashing cost? [4 Marks]