Use the information contained below to compress one time unit per move using the least cost method.

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Use the information contained below to compress one time unit per move using the least cost method. Assume the total indirect cost for the project is $2,000 and there is a savings of $100 per time unit reduced. Calculate the total direct, indirect, and project costs for each duration. Plot these costs on a graph. What is the optimum cost-time schedule for the project?

Note: The correct normal project duration and total direct cost are provided.

Normal Normal Maximum Crash Cost Time (Slope) Crash Time Act. Cost A 2 200 50 4 1000 800 200 5 D 200 5 1000 100 3 800 40
Project duration 20 A B Direct cost 6,000 2x 4 1x Indirect cost 2,000 Total cost 8,000 4 D.
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Project Management The Managerial Process

ISBN: 978-1259666094

7th edition

Authors: Erik W. Larson, Clifford F. Gray

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