Question: Question 3 [30] The tabulation and network diagram below represents a retooling project for a manufacturing company. The retooling is necessary to qualify for funding
Question 3 [30]
The tabulation and network diagram below represents a retooling project for a manufacturing company. The retooling is necessary to qualify for funding from a multinational agency for expansion of the plant. The retooling project was originally scheduled for a later date but has to be brought forward and crashed to meet the funding application deadline.
- Find the cost slope, maximum reduced time and the cost for the project for normal time. [5]
- Hence, crash the project to meet a deadline of 18 days and determine the associated cost. [20]
| Activity I.D. | Cost Slope | Maximum Reduced Time (d) | Direct Cost | |||
| Normal | Crash | |||||
| Time (d) Cost | Time (d) Cost | |||||
| A | 6 | $500 | 4 | $800 | ||
| B | 3 | $200 | 2 | $350 | ||
| C | 5 | $500 | 4 | $700 | ||
| D | 3 | $200 | 1 | $500 | ||
| E | 2 | $300 | 1 | $550 | ||
| F | 5 | $400 | 3 | $900 | ||
| G | 5 | $150 | 4 | $350 | ||
| H | 8 | $550 | 4 | $1750 | ||
|
Given that the project indirect cost is $2200 for normal duration and reduces by $170 per day of reduction. Use the table below to determine and state:
- The project duration and total cost at the optimal point in the time reduction process. [3]
- How much will the crashed project cost (at this optimal point) compared to the project under normal duration.[2]
| Duration (days) | Indirect Cost | Direct Cost | Total Project Cost |
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