SCM $300$ Lab $05-$ Project Management$$Critical Paths and Crashing$1$PROJECT MANAGEMENT $$ Critical Paths and Crashing$$You are a contractor that has been asked to build an apartment complex. The associated AON$$Network diagram and the Time$/$Cost table are provided below. $($Based on the table, you could$$crash activity B for one week only at a cost of $$250$ or two weeks for $$500.)$The owner wants the apartment complex built in $29$ weeks.$$The owner will charge a penalty cost of $$1500$ per week if the complex is not completed on time.$$A$-8$ C$-5$ F$-4$E $-8$ H $-4$B$-5$ D$-6$ G $-6$Activity Normal$$Time$$Minimum$$Time$$Crash Cost$$per Week$$A $87200$B $53250$C $531750$D $65500$E $851500$F $431200$G $651000$H $422000$PART $1$ CRITICAL PATHS$$Find the duration of each of the possible paths.$$ACEFH $-$ ADEFH $-$ ACEGH $-$ADEGH $-$ BDEFH $-$ BDEGH $-1.$ What is the Critical Path? What is the duration of this project presently?$2.$ What would be the penalty associated for the project in the current state?$$PART $2-$ SLACK TIMES$3.$ Which activities currently have slack? In other words, which activities are NOT presently on$$the Critical Path? A B C D E F G H$$Prep for $4$ and $5$: What is the longest path $($in terms of time$)$ for ONLY those items with slack? For Example:$$Suppose C$\text{'}$s longest path was ACEFG at $45$ day $($Not true, of course$)$ you would write C $-$ ACEFG$4.$ What is the actual slack time for activity F$?5.$ What is the actual slack time for activity A$?$Hint for $4$ and $5$: What is the difference between each of the paths listed in question E and the critical$$path$?($This tells you how long each activity listed in question E can be delayed without affecting the Total$$Project Time with the present Critical Path.$)$ If the item is on the Critical path it will have $0$ slack.$$SCM $300$ Lab $05-$ Project Management$$Critical Paths and Crashing$2$CRASH FIRST ITEM$$Crash the project by $1$ week by altering the activity that will save us the most money.$6.$ Which activity will you crash first?$$Make the necessary change to your network diagram.$$ACEFH $-$ ADEFH $-$ ACEGH $-$ADEGH $-$ BDEFH $-$ BDEGH $-7$ What is the resulting critical path $($or paths$)$ and also the new project duration?$8.$ How much money did you save $($net savings$)$ by crashing this activity?$$Net Savings $=1$ Week Penalty Saved $-1$ Week Crash Cost$$CRASH SECOND ITEM$$Again$,$ crash the project by $1$ week by altering the activity that will save us the most money.$19$ Which activity will you crash second?$$Make the necessary change to your network diagram.$$ACEFH $-$ ADEFH $-$ ACEGH $-$ADEGH $-$ BDEFH $-$ BDEGH $-10.$ What is the resulting critical path $($or paths$)$ and also the new project duration?$11.$ How much money did you save $($net savings$)$ by crashing this activity?$$Net Savings $=1$ Week Penalty Saved $-1$ Week Crash Cost$$CRASH THIRD ITEM$$Crash the project by $1$ week by altering the activity that will save us the most money.$$This will get us to the desired completion date that will eliminate the penalties.$12.$ Which activity will you crash third?$$Make the necessary change to your network diagram.$$ACEFH $-$ ADEFH $-$ ACEGH $-$ADEGH $-$ BDEFH $-$ BDEGH $-13.$ What is the resulting critical path $($or paths$)$ and also the new project duration?$14.$ How much money did you save $($net savings$)$ by crashing this activity?$$Net Savings $=1$ Week Penalty Saved $-1$ Week Crash Cost$$TOTAL SAVINGS$15.$ How much did you save, in total by crashing the system down to $29$ weeks?