Question: Refer to Table 1. This table shows normal durations and costs and crash durations and costs for a series of activities that comprise the main

Refer to Table 1. This table shows normal

Refer to Table 1. This table shows normal durations and costs and crash durations and costs for a series of activities that comprise the main equipment design and installation process. Table 1 - Activity, normal and crash durations and costs for the entire design and installation process Note: The crash duration represents the minimum duration where an activity is speeded up as much as possible. The crash cost represents the increased cost of the activity after it has been speeded up as much as possible. Note: Where the normal duration and crash duration are the same, this activity cannot be crashed. Activity Normal duration Crash duration Normal cost Crash cost (weeks) (weeks) (GBP) (GBP) A-B 1 1 5,000 5,000 A-C 12 10 300,000 340,000 A-E 2 1 750,000 950,000 B-D 3 2 30,000 50,000 C-F 4 2 500,000 580,000 D-F 2 1 350,000 750,000 E-F 2 1 5,000 10,000 F-G 3 2 5,000 15,000 F-H 6 5 10,000 70,000 G-I 3 2 650,000 950,000 GJ 2 2 55,000 55,000 H-L 2 2 170,000 170,000 H-K 8 6 20,000 120,000 I-L 3 2 90,000 100,000 J-N 3 2 15,000 30,000 K-M 10 9 150,000 180,000 L-N 2 1 10,000 20,000 M-N 4 3 450,000 460,000 a) Draw a schedule showing the process critical path and duration. (5 marks) Assume the whole process has to be completed within 36 weeks. Calculate the most cost effective way of completing the process within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time (10 marks) (c) Discuss alternative approaches you might take in making allowance within the contract for works where the time and cost required cannot be accurately estimated before the work is carried out. b)

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