Question: ABC Construction is designing a new highway project. Shown below are the activities that need to be completed in this project. The Crash Time for

ABC Construction is designing a new highway project. Shown below are the activities that need to be completed in this project. The Crash Time for an activity represents the resulting time after the activity has been crashed. The Normal Cost represents the cost to complete the activity in the Normal Time. The Crash Cost represents the cost to complete the activity in the Crash Time. In addition to the costs identified below, there are indirect costs of $300 per week. In addition, there is a penalty cost of $500 per week for each week the project lasts beyond week five.

Activity

Predecessor

Normal Time (Weeks)

Crash Time (Weeks)

Normal Cost

Crash Cost

A

--

4

3

800

1200

B

A

3

2

900

1000

C

A

5

3

1250

2250

D

A

2

2

800

800

E

B,C

5

4

1500

2000

F

C,D

6

5

2000

3000

G

E,F

4

3

600

900

H

G

3

3

900

900

As with the other test problems, you must show your work to receive full credit.

a) What are the normal project completion time and the critical path?

b) What activity should be crashed to reduce the completion time found in a) by one week? Why?

c) What is the minimum cost schedule for this project and what is the cost of this schedule?

d) What is the project completion time if all activities are crashed to their minimum Crash Time?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!