Draw a cost-time graph and plot the indirect cost line. Sequentially crash the time units down to 16 to calculate the direct cost. Plot the direct cost on the graph and calculate the total cost. Identify the optimum time-cost schedule and the optimum cost.

Given the data and information that follows in this example, compute the slope and maximum reduction time for each activity. Also compute the total direct costs for durations 32, 31, 30, 29, 28, and 27 time-units. Assume indirect costs of $170, $150, $129, $122, $118, and $110, respectively, for each listed duration. What are the optimum project duration and cost? An example of a crash impact table Direct costs Activity ID Maximum crash time Normal Crash Slope TTT Time Cost Time Cost 7 50 5 16 15 20 C 12 10 12 21 7 30 E 10 3 19 F 13 30 The first decision B D TIME 32 LEGEND 16 8 ACT DUR E 7 6 TOTAL DIRECT COST $ F 13 12 B D TIME A E TOTAL DIRECT COST $ F ACTIVITIES CHANGED - The 2nd and 3rd decision Exercise 6-2 TIME B D TOTAL DIRECT COST E ACTIVITIES CHANGED F TIME B E TOTAL DIRECT COST ACTIVITIES CHANGED F The 4th and 5th decisions TIME B D A TOTAL DIRECT COST $ E ACTIVITIES CHANGED F TIME B D TOTAL DIRECT COST E ACTIVITIES CHANGED F The total impact 27 28 29 30 31 32 Project Duration Total Direct Total Indirect $110 $118 $122 $129 $150 $170 Grand Total