Question: 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

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) Determine ES, EF, LS, LF and slack for each activity

Activity

Early start

Early Finish

Late Start

Late Finish

Slack

A

B

C

D

E

F

G

H

B. What is the normal expected duration of the project is:

C. The critical path is

D. What would be the cost of completing the project is using the normal distribution:

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

Activity

Maximum Crash Time (weeks)

Crash Cost/week

A

B

Answer

Answer

C

Answer

Answer

D

Answer

Answer

E

Answer

Answer

F

Answer

Answer

G

Answer

Answer

H

Answer

Answer

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