Question: A project to introduce a new pipe forming machine at Form-It Inc has been researched and resulted in the information shown in the table below.
A project to introduce a new pipe forming machine at Form-It Inc has been researched and resulted in the information shown in the table below. As the project manager you are responsible to deliver the project at the best balance of cost and timing. The indirect costs are 3,000 per week and there is a penalty cost of 5,000 per week for each week the project takes past 30 weeks.
| Activity | Immediate predecessor | Normal Time (Weeks) | Crash Time (Weeks) | Normal Cost () | Crash Cost () |
| A | - | 4 | 3 | 8,000 | 12,000 |
| B | - | 12 | 11 | 20,000 | 26,000 |
| C | - | 8 | 7 | 15,000 | 30,000 |
| D | C | 2 | 2 | 1,000 | - |
| E | A, B, D | 16 | 14 | 30,000 | 35,000 |
| F | E | 6 | 2 | 7,000 | 15,000 |
| G | F | 2 | 2 | 6,000 | - |
- Construct a network diagram for the activities shown and show the Activity on Node details (ES, LS, EF and LF times) on your diagram. (18 Marks)
- List all the possible paths with their durations. Identify the critical path and state the project duration. (5 Marks)
- Extend the table to show the crash costs per week for each activity that can be crashed. (5 Marks)
Which two activities would you recommend to crash first and why?
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