MGTS 352 Project Management - Crashing a Project - In Class Exercise Name: Crashing a Project Steps Step 1: determine the critical path Step 2: find the activity (or activities) on the critical path(s) with the lowest cost of crashing Step 3: reduce the time for this activity until (a) it cannot be further reduced (b) another path becomes critical (c) the increase in direct costs exceeds the savings Step 4: repeat this procedure until the increase in direct costs exceeds the savings Determine the Minimum Cost Schedule for the following project. (complete all tables) Project Activity and Cost Data Normal Time Activity (days) A B 5 Crash Time (days) Immediate Predecessor(s) TT117 Normal Cost (S) 1,000 800 600 1,500 900 1,300 900 500 Crash Cost (S) 1,200 2,000 900 2,000 1,200 1,400 900 900 AB B 3 D E F G H 2 3 3 3 E E G Indirect project costs $250 per day and penalty cost = $100 per day for each day the project lasts beyond day 14. . Start Finish 0-000 Page 1 of 2 File Name: ICP Crashing a Project Steps.docx MGTS 352 Project Management - Crashing a Project - In Class Exercise Name: + Activity cc / Day Max Crash Time (Days) A B Path 0 1 2 A-C-E-G-H D B-D-E-G-H E F G H Original Costs Crashed Costs Normal Costs Savings per Day Indirect Costs Indirect Penalty Costs Penalty Costs Total Saving per Day Crash Costs Total Costs Direct Costs (Add Previous Crash Costs) Crash Activity Critical Path Reduction (Days) Project Duration Crash Costs Total Indirect Penalty Project Costs Costs Costs Stage