The Activity-On-Node network relationships and direct cost information of a small project are given on the...
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The Activity-On-Node network relationships and direct cost information of a small project are given on the next page. The indirect cost for this project is $90/day. The contract requires that the project be completed within 14 working days. A penalty of $25/day will be imposed for each day of overrun. You, the project manager, are responsible to make adjustments to the schedule in order to meet the requirement at a minimum cost. Using time - cost adjustment, - Plot a minimum direct cost curve, indirect cost, and total cost curve for the project, and identify normal, crash, and all crash points on the curves. с D E F - When and at what cost will this project be completed after your adjustments? State the reason(s) to support your decision. Act. Normal Crash S 0 0 A 5 B 3 G H I L Duration 7 4 S 6 4 5 7 4 0 3 2 4 3 3 2 3 4 2 0 B с Δ A Cost $ ACost/ Normal Crash Cost Days Days 0 0 400 530 350 410 1020 525 1095 560 825 975 610 750 475 565 1250 1415 390 450 0 0 E Days Cut Project Duration Increased Cost/Day Direct Cost Overhead Cost Penalty TOTAL COST F H I Days Shortened L The Activity-On-Node network relationships and direct cost information of a small project are given on the next page. The indirect cost for this project is $90/day. The contract requires that the project be completed within 14 working days. A penalty of $25/day will be imposed for each day of overrun. You, the project manager, are responsible to make adjustments to the schedule in order to meet the requirement at a minimum cost. Using time - cost adjustment, - Plot a minimum direct cost curve, indirect cost, and total cost curve for the project, and identify normal, crash, and all crash points on the curves. с D E F - When and at what cost will this project be completed after your adjustments? State the reason(s) to support your decision. Act. Normal Crash S 0 0 A 5 B 3 G H I L Duration 7 4 S 6 4 5 7 4 0 3 2 4 3 3 2 3 4 2 0 B с Δ A Cost $ ACost/ Normal Crash Cost Days Days 0 0 400 530 350 410 1020 525 1095 560 825 975 610 750 475 565 1250 1415 390 450 0 0 E Days Cut Project Duration Increased Cost/Day Direct Cost Overhead Cost Penalty TOTAL COST F H I Days Shortened L
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To plot the minimum direct cost curve indirect cost curve and total cost curve for the project we need to calculate the cost for each activity at normal and crash durations as well as the total projec... View the full answer
Related Book For
Project Management A Managerial Approach
ISBN: 978-0470226216
7th Edition
Authors: Jack R. Meredith, Samuel J. Mantel,
Posted Date:
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