Question

3. The client of a project has requested the project team to crash 8 hours of time. The table below provides the necessary information about the possible project crashing.

(a) What is the crash cost for 8 hours of time-savings?

(b) Assume the team calls the client and asks for a project extension, reducing the amount of time they need to crash. The project team has a $20 crash budget. Is the budget sufficient to crash 4 hours of time?

Activity	Normal Duration (hours)	Normal Cost ($)	Crash Duration (hours)	Crash Cost (S)	Immediate Predecessors
A	2	10	2	0	None
B	3	15	2	23	A
C	5	25	4	30	B
D	3	20	1	24	C
E	6	30	4	45	C
F	1	5	1	0	C,E
G	7	35	6	50	F
H	10	50	7	62	D,G

Evaluation

The Unit Exercises will be marked in its entirety out of 100. The following rubric indicates the criteria students are to adhere to, and their relative weights to the assignment overall.

Answer 1

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Solution:

Network Diagram:

Possible Paths:

Start-A-B-C-D-H-End = 23 hours

Start-A-B-C-E-F-G-H-End = 34 hours ......... Critical Path (longest duration path

Start-A-B-C-F-G-H-End = 28 hours

For reducing the project duration, the least incremental crash cost activities on Critical Path should be crashed.

Incremental Crash Cost = (Crash Cost - Normal Cost) / (Normal Duration - Crash Duration)

Activity	Normal Time	Crash Time	Normal Cost	Crash Cost	Incremental Crash Cost
A	2	2	10	0	NA
B	3	2	15	23	8
C	5	4	25	30	5
D	3	1	20	24	2
E	6	4	30	45	7.5
F	1	1	5	0	NA
G	7	6	35	50	15
H	10	7	50	62	4

Crashing Schedule to reduce the project duration by 8 hours i.e 34 - 8 = 26 hours

Crashed Activity	No Crashing	H	C	E	B	G
No. of days Crashed	0	3	1	2	1	1
Crashing Cost	0	12	5	15	8	15
Total Crashing Cost	0	12	17	32	40	55
Critical Path	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H	A-B-C-E-F-G-H
TPT	34	31	30	28	27	26

a) From the above table, crash cost for 8 hours of time-saving is $55

b) From the above table, 20$ budget is sufficient to crash 4 hours of time, as it will only require $17