Question

Project has a fix cost of $100/day and following activities, cost and time in days.

activity depend on normal, crash time normal, crash cost crash cost/day
a - 8, 7 $450, $490 40
b - 6, 4 400, 490 45
c b 5, 4 300, 350 50
d a 4, 3 500, 585 85
e c,d 7, 5 475, 625 75
f a 8, 6 600, 740 70
g b 2, 2 150, 150 0
h e,f 5, 4 350, 420 70
(a) draw the project network, determine the project completion time and critical path using aoa method. what is total cost to complete project?
(b) According to the minimum cost schedule find the optimal way of crashing the project. What is the total project cost? (Crash the project step by step)
(c) According to the minimum time schedule find the optimal way of crashing the project. What is the total project cost? (Crash the project step by step)

Answer 1

The student is asking about calculating project completion time, critical path, and costs using the AoA method, then finding the optimal way to crash the project for both minimum cost and minimum time, including step-by-step calculations and adjustments for the total project cost.

Step-by-step explanation:

The student's question is about project management, specifically dealing with the concepts of project completion time, critical path, and the cost of completing a project within different time constraints. The goal is to draw the project network using the Activity-on-Arrow (AoA) method, determine the project completion time and the critical path, and then calculate the total cost to complete the project. Additionally, there's a need to find the optimal way of crashing the project to achieve minimum cost and minimum time schedules, followed by a new total project cost calculation after crashing.

For part (a), you must first draw a network diagram using the AoA method and calculate the earliest start times, latest start times, and slack for each activity to find the critical path and project completion time. The total cost would then include the sum of the costs of all activities along the critical path adjusted for any fixed costs.

For part (b), to find the minimum cost schedule, you would compare the cost of crashing each activity per day and start by crashing the activities on the critical path with the lowest crash cost per day. Continue this process until you reach your desired schedule or you can no longer crash the activities without affecting dependencies or increasing the project cost disproportionately.

For part (c), to achieve a minimum time schedule, you would crash the activities with the shortest crash time options, ensuring that the project completion time is as low as possible while considering the additional crash costs. You would proceed step by step, crashing one day at a time and recalculating the project completion time and cost until the project cannot be crashed further without significant cost increases.