Arnie Watson, the director of project management, is currently planning the schedule for a project. He...

 

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Arnie Watson, the director of project management, is currently planning the schedule for a project. He has identified the five major activities (A, B, ..., E) that will need to be performed as shown below: START FINISH E He also has gathered the following data about the normal point and crash point for each of these activities. Crash Activity Time (weeks) Cost ($) Time Cost 60,000 65,000 70,000 43.000 75.000 2 80.000 Normal A 3 54,000 2 4 62,000 3 IC 15 66,000 2 40,000 1 These costs reflect the company's direct costs. In addition, the company incurs indirect project costs and these costs run $5,000 per week. Arnie wants to minimize the overall cost of the project. Therefore, he concludes that he should shorten the project by doing some crashing to the extent that the crashing cost for each additional week saved is less than $5,000. Use cost analysis to determine which activities should be crashed and how much money is saved by doing this crashing? Arnie Watson, the director of project management, is currently planning the schedule for a project. He has identified the five major activities (A, B, ..., E) that will need to be performed as shown below: START FINISH E He also has gathered the following data about the normal point and crash point for each of these activities. Crash Activity Time (weeks) Cost ($) Time Cost 60,000 65,000 70,000 43.000 75.000 2 80.000 Normal A 3 54,000 2 4 62,000 3 IC 15 66,000 2 40,000 1 These costs reflect the company's direct costs. In addition, the company incurs indirect project costs and these costs run $5,000 per week. Arnie wants to minimize the overall cost of the project. Therefore, he concludes that he should shorten the project by doing some crashing to the extent that the crashing cost for each additional week saved is less than $5,000. Use cost analysis to determine which activities should be crashed and how much money is saved by doing this crashing?

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Different possible paths are Start A B D Finish 10 Start A B E Finish 11 Start A C E Finish 12 Findi... View the full answer