QUESTION 2 (weight 30%) A project has been given the following information: Activities Duration (days) Preceding activity A B D E F G H 3 5 4 6 3 3 5 3 A A A B, C D E E, F a) Develop a network (plan) for the project. What is the duration of the project? What are the critical activities? Which activities have slack and how much? b) Develop a Gantt-diagram for the project where all the activities start at the latest start time. Explain what is meant by the latest start time and what consequences this may have for the plan. c) Disregard the information in question b). The client wishes to reduce (crash) the project duration by three (3) days. The following information is collected: Activity Normal duration (time) Crash duration (time) Normal cost Crash cost A B D E F G H 3 5 4 6 3 3 5 3 2 3 2 3 3 2 20 000 16 000 12 000 15 000 19 000 11 000 18 000 18 000 30 000 20 000 22 000 30 000 24 000 25 000 Normal and crash cost are for the entire activity and are linearly distributed (every day cost the same). 1) What is the project budget? 2) The client wants to reduce the project time with lowest additional costs. What activities do you want to reduce and by how many days? How much will this cost? What will be the new budget? 3) What is (are) the critical path(s) in the new plan? Discuss the consequences of this crashing (reduction in time) when it comes to management of the project