A project has the following activities and their durations: Normal Time Crash Time Normal Cost Crash Cost Activity Preceding Activity (RM '000) (RM '000) 3 8 (days) (days) 1 A 3 B 1 1 6 D A, B 2 9 9 E B 4 16 20 F 6 9 12 D 4 13 18 E, F, G The overhead cost is RM 200 per day. 7 12 15 (a) On a normal basis, draw an activity-on-arc network diagram. Label your network with the activity, duration, earliest event time and latest event time for each of the activities. (6 marks) (b) Determine the critical path and minimum time required to complete the project. (2 marks) (c) The company has limited number of men available to work on the project. Only two activities can be under way at the same time. Will this delay the project when compared to the time that unlimited resources would have been? Explain your (4 marks) answer. (d) The customer would like the project to be completed in 12 days and imposes a penalty of RM 1000 per day for excess time over 12 days, with a bonus RM 500 per day for earlier completion. Suppose activities cannot be crashed partly, show the network on timescale at each step by crashing appropriate activities in proper order. What is your recommendation(s) to the project manager if he would like to minimize the total project cost? (8 marks) 223 424