A computer system has recently been installed in the accounts department of a manufacturing company. The activities involved in introducing the system are listed below together with their normal durations and costs. It would be possible to shorten the overall project duration by crashing certain activities at extra cost, so the relevant details are also included. In addition, there will be a weekly charge of $7000 to cover overheads.

Activity	Predecessor	Normal Time (weeks)	Normal Cost ($)	Crash Time (weeks)	Crash Cost ($)
A	-	3	2000	2	7000
B	-	6	5000	6	5000
C	A	4	8000	1	19000
D	B	2	1500	2	1500
E	A	8	4000	5	9000
F	B	4	3000	3	7000
G	C, D	2	2000	2	2000
H	F	3	3000	2	9000

a) What is the normal expected duration of the project? What is the critical path?

The normal expected duration of the project is:	Answer
The critical path is:	AnswerACGAEBDGBFH

b) What would be the cost of completing the project using the normal durations?

c) What would be the duration of the project if costs are to be minimized?

Activity	Maximum Crash Time (weeks)	Crash Cost/week
A	Answer	Answer
B	Answer	Answer
C	Answer	Answer
D	Answer	Answer
E	Answer	Answer
F	Answer	Answer
G	Answer	Answer
H	Answer	Answer

Stage	Crash Activity	Time Reduction (weeks)	Resulting Critical Path(s)	Project Duration (weeks)	Project Direct Costs ($)	Crash Cost ($)	Total Indirect Costs ($)	Total Project Costs ($)
0	AnswerABCDEFGHNone	Answer	AnswerACGAEBDGBFH	Answer	Answer	Answer	Answer	Answer
1	AnswerABCDEFGHNone	Answer	AnswerACGAEBDGBFH	Answer	Answer	Answer	Answer	Answer
2	AnswerABCDEFGHNone	Answer	AnswerACGAEBDGBFH	Answer	Answer	Answer	Answer	Answer

Therefore the optimal project duration is Answer weeks, and the optimal project cost is $Answer.

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