Table $2$: Project Crash Data

Task Normal Cost $($$$000)$ Crash Cost $($$$000)$ Allowable Crash Time $($Weeks$)$

A $10100$

B $20251$

C $15251$

D $45651$

E $10251$

F $15183$

G $20402$

H $10151$

I $5101$

J $5201$

K $40501$

L $10451$

Note: If multiple critical paths exist, select the path with the highest variance $($standard deviation$)$ to use in probability calculations so that uncertainty is better accounted for.

Assignment Questions:

$1)(15$ marks$)$ For the $$Normal$$ scenario,

a$.$ What is the critical path$($s$)$ and estimated completion time for this project?

b$.$ What is the estimated project cost?

c$.$ What is the probability that the project can be completed in $26$ weeks with this project plan?

$2)(20$ marks$)$ Suppose that the cost of being late to the market is estimated to be $$30,000$ per week if the project completion time exceeds $26$ weeks. Determine the most $$Cost$-$Effective$$ project completion time.

a$.$ Which task$($s$)$ would you recommend crashing $($and how$)$ to achieve this cheapest completion time and why?

b$.$ What is the total cost of crashing the project to complete the project in $26$ weeks and is it worth it and why?

c$.$ What is the probability of completing the project in $26$ weeks with this project plan?