Question: A office space construction project has the following work breakdown: Activity Predecessor Most Likely Optimistic Pessimistic Normal Cost Crash Cost A -- 5 3 8
A office space construction project has the following work breakdown:
| Activity | Predecessor | Most Likely | Optimistic | Pessimistic | Normal Cost | Crash Cost |
| A | -- | 5 | 3 | 8 | 400 | 800 |
| B | -- | 7 | 5 | 11 | 600 | 900 |
| C | -- | 5 | 3 | 8 | 300 | 700 |
| D | A | 10 | 7 | 15 | 800 | 1100 |
| E | B | 6 | 3 | 10 | 500 | 900 |
| F | A,C | 8 | 4 | 12 | 1000 | 1500 |
| G | B | 4 | 4 | 4 | 500 | 500 |
| H | E, F | 7 | 7 | 7 | 800 | 800 |
| I | E,F,D | 4 | 2 | 8 | 400 | 700 |
| J | H | 6 | 3 | 9 | 600 | 1200 |
Using the three time estimates (and assuming the critical path), what is the risk that this project does not get completed within 30 days?
If we assume that penalty costs will apply a rate of $650 per day and indirect costs are $300 per day and a deadline of 20 days, what would be the most cost effective way to reduce this project 2 days in duration from its original completion time? Assume that the most likely times are the normal times and the optimistic times are the crash times. Indicate which activities would be crashed and how much money would be saved in the process.
Assuming the same conditions as in b, what would be the overall minimum cost schedule assume that the deadline is actually 20 days to get the project done?
What would be the shortest feasible way to get this project done if budget didnt matter?
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