ABC Co. was asked to complete a process improvement project for their favorite client, XYZ Co. The activities, time requirements, and direct cost considerations are indicated below. Indirect/overhead costs are $2,000 per week. Because XYZ Co. is under time pressure to increase productivity, there is a penalty of $3,000 per week for every week the project extends beyond 8 weeks.

a.) How long will the project take before crashing?

b.) What is the minimum cost schedule (time)?

c.) What is the minimum cost ($)?

Immediate Activity Predecessor(s) Normal Time Crash Time Normal Cost (NT) (CT) (NC) Crash Cost (CC) Available Crash Time (NT-CT) Crashing Cost per Week CC NC NT - CT A 2 1 $6,000 B 2 1 A,B 3 1 $4,000 $4,000 $9,000 $12,000 $4,000 $2,000 D B 6 3 $10,000 $19,000 $15,000 $12,000 $2,000 E C,D 2 1 F E 1 1 Action Costs Total Paths + Net