[MGT400] Project Management. Chapter 9: Reducing Project Duration .

Q4. Based on the project data provided in the table below, answer questions a) to d). (30 points) Time (weeks) Cost (KD) Max. Crash Slope Activity Normal Crash Normal Crash Time A 9 8 33000 35000 B 11 9 47000 50000 C 13 11 25000 29000 D 25 22 53000 56500 m 31 30 50000 53000 15 13 29000 30000 18 16 63000 71000 I Q 45 41 36000 39000 14 11 23000 26000 14 13 23500 28500 CPM is A B D EGHJ a) Calculate the maximum crashing time (Max. Crash Time) and Slope for each activity. (10 points) b) Crash the project (reduce the duration) for 8 weeks. (5 points) c) What is the total cost of the project before and after crashing it by 8 weeks? Briefly explain the costs included in the calculations. (10 points) d) What can be the maximum crashing time for the overall project? Explain briefly. (5 points) Note: You need to show all calculation steps in your answers.Project Crashing Example (Reducing Duration) Time (weeks) Cost (KWD) Max. Crash Slope Activity Normal Crash Normal Crash Time A 2 1 2200 2400 H 200 B un 2 3600 3900 3 100 C 3 1 2400 2700 2 150 D 6 2 4100 4500 4 100 E 4 2 4900 5200 2 150 F 5 3 1600 1850 2 125 Step 2: Project crashing (reducing) is required as 5 CPM is A, C, E, F activities weeks, therefore the calculation is; Target is 5 w. crashing (reduce the duration) Activity F => 2 x 125 KWD = 250 KWD Activity E => 2 x 150 KWD = 300 KWD Activity C => 1 x 150 KWD = 150 KWD Project reducing (crash) cost is = 700 KWDTime (weeks) Cost (KWD) Max. Crash Activity Normal Crash Normal Crash Time Slope A 1 2200 2400 N B N 3600 3900 W 2400 2700 D 6 N 4100 4500 E A 2 4900 5200 5 W 1600 1850 Given data; CPM is A, C, E, F activities Target is 5 week crashing (reduce the duration) Questions; 1.Calculate the Max. Crash time and Slope 2.Crash the project for 5 weeks (calculate crashing cost) 3.Calculate the total cost of the project (before and after crashing)