4 A 3 4 5 Predecessor NT - days CT - days NC CC Daily cost of crashing 6 A 4 $ 4,500.00 can't be crashed can't be crashed 7 B A 5 31 $ 6,900.00 $ 10,500.00 $ 8 C 8 4 $ 4,300.00 $ 15,300.00 $ 9 D B 21 $ 6,670.00 $ 9,670.00 $ 10 E C 6 3 $ 8,000.00 $ 14,000.00 $ 11 F D.E 5 5 $ 6,000.00 can't be crashed can't be crashed 12 13 14 The customer really wants the project done in 20 days 15 The contract reads as follows: 16 17 1. completion in 20 days - contact value = US$ 50,000 18 2. penalty for late completion (any day past day 20) = US$ 2,500 a day 19 3. Bonus payment if completed by Day 18 = US$ 5,000 20 21 Your indirect costs savings are US$ 800 a day 22 a. Should you complete the project in NT or should you crash to 20 days 23 b. If you crash - what activities would you crash - in what order 24 c. should you crash to 18 days 25 d. what activities woiuld you crash to get to 18 days 26 27 Completion in NT Completion in 20 days Completion in 18 days 28 Contract value $ 50,000.00 $ 50,000.00 $ 50,000.00 29 Penalties 30 Incentive 31 Cost of crashing 32 Indirect cost savings 33 Profit $ 50.000.00 $ 50,000.00 $ 50,000.00