Question: Enrichment Case Study #1 - Project Crashing Simms wants to be proactive and ready to address any questions concerning compressing the project schedule. Often, the

Enrichment Case Study #1 - Project Crashing Simms

Enrichment Case Study #1 - Project Crashing Simms wants to be proactive and ready to address any questions concerning compressing the project schedule. Often, the accounting department, the review committee, and the client ask such questions. She has assembled the additional data below in case it is necessary to crash the project. Note that the total normal costs are $103,000 for the XYZ project. Maximum Crash Activity Normal Cost ($) Crash Cost ($ per Day) Time A 3,000 500 3 B 5,000 1,000 2 C 6,000 0 D 20,000 3,000 3 E 10,000 1,000 2 F 7,000 1,000 G 20,000 3,000 H 8,000 2,000 I 5,000 2,000 J 7,000 1,000 K 12,000 1,000 6 Discussion Using the weighted average times from the initial project analysis and the data provided, determine the activity crashing decisions and best-time cost project duration. Given this information, what suggestions would you make to Simms to ensure she is well prepared for the project review committee? Assume that the overhead costs for the project are $700 per day. Do these indirect costs cause you to change your recommendations or suggestions? Check the due date for the enrichment case study. Submit through the link in Blackboard for Chapter 3. 1 2 1 1 1

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