Question

In: Accounting

Problem 1 Chapter 7: Your hospital has applied for certification as a level 1 stroke center....

Problem 1

Chapter 7: Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed before the next Joint Commission survey in 18 weeks. Project activity times are listed in the table below.

  1. Draw the network diagram and identify the project paths.
  2. What is the project completion time and total project costs if only normal times are used?
  3. Determine the minimum cost-schedule for this project.
  4. What is the difference in total project costs between the earliest completion time of the project using normal times and the minimum cost-schedule you derived in part b?

Activity

Immediate Predecessors

Normal Time (NT) (weeks)

Normal Cost (NC) ($)

Crash Time (CT) (weeks)

Crash Cost (CC)

($)

A

---

6

$600

2

$1,400

B

A

7

$200

3

$600

C

---

9

$500

6

$950

D

C

2

$800

1

$1,200

E

D

8

$1,600

5

$2,800

F

B, D

5

$200

4

$400

G

F

4

$400

3

$750

Solutions

Expert Solution

ANSWER

ALL POSSIBLE PATHS:

ABFG = 22

CDFG = 20

CDE = 19

CRITICAL PATH = NETWORK CHAIN WITH THE LONGEST DURATION = ABFG = 22

DURATION OF CRITICAL PATH = 22

CRASHING

CRASH COST PER PERIOD = (CRASH COST - NORMAL COST) / (NORMAL TIME - CRASH TIME)

ACTIVITY

NORMAL TIME

CRASH TIME

NORMAL COST

CRASH COST

COST / PERIOD

TIMES CRASHED

ORDER

CRASH COST

A

6

2

600

1400

200

0

0

B

7

3

200

600

100

3

1ST, 2ND AND 4TH

300

C

9

6

500

950

150

1

4TH

150

D

2

1

800

1200

400

0

0

E

8

5

1600

2800

400

0

0

F

5

4

200

400

200

1

3RD

200

G

4

3

400

750

350

0

0

TOTAL COST

4300

650

DIFFERENCE = 650

**SINCE NO OTHER DATA SUCH AS PENALTY COST OR DAILY COST OF THE PROJECT IS PROVIDED.

================

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