Question
You are the manager of a project to improve the healthcare insurance claims auditing process. For each day that the claims auditing process takes, there
You are the manager of a project to improve the healthcare insurance claims auditing process. For each day that the claims auditing process takes, there is an associated cost of $1,400 so this cost is saved for each day reduction in the project completion time. Following is the information for the healthcare claims auditing process.The normal time and crash time are the times it will take to complete each activity under each of those scenarios (normal and crash). The Total Normal Cost and the Total Crash Cost are the total costs for completing that activity in that time.
| Activity | Normal Time (days) | Crash Time (days) | Total Normal Cost | Total Crash Cost | Immediate Predecessor(s) |
| A | 6 | 4 | $4,000 | $6,000 | -- |
| B | 4 | 2 | $4,000 | $7,000 | -- |
| C | 6 | 3 | $3,000 | $6,000 | B |
| D | 6 | 5 | $4,500 | $5,000 | A |
| E | 3 | 3 | $10,000 | $10,000 | C |
- Based on the information provided, what is the minimum-cost schedule? For this minimum-cost schedule, identify the critical path, the time for each activity and the total cost for completing the project?
- Considering all of the cost, what is the cost of the project if all of the activities are crashed to their Crash Times?
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Strategic Management A Competitive Advantage Approach Concepts
Authors: Fred R. David, Forest R. David
15th edition
978-0133444896, 133444791, 9780133444858, 133444899, 133444856, 978-0133444797
