Question 7

The construction project is behind schedule. The Project Board is considering crashing the project for it to be completed earlier. Table 4 shows the estimated cost (in thousand dollars) to crash each individual activity.

Required:

1. Determine the crash cost per month for each of the activities. (Explain the reliable reasons in details)
2. Determine which activity should be crashed first to reduce one month from the project duration and how much cost will be added to the total project cost. (Explain the reliable reasons in details)
3. Determine the maximum number of months the project may be crashed and how much cost will be added to the total project cost. (Explain the reliable reasons in details)

Table 4: Estimated cost (in thousand dollars) to crash each individual activity Normal Crashed Duration Duration Activity Predecessor Cost Cost (in months) (in months) A 3 2 3,000 2,000 3,800 B A 4 2 5,500 5,000 A 5 3,500 3 D B, C 6 5,500 5 6,350 E 5 3 5,500 4,500 5,000 F D, E 4 3 5,800