Asked by Timothy Hauser on Jun 28, 2024
Verified
Given the critical path below, calculate the following
a. The crash cost per unit time savings for each activity.
b. The maximum total crash time savings and cost.
c. The maximum total time-savings with a $7000 budget.
Activity Normal Time Normal Cost Crash Duration Crash Cost A 8 days $8,0006 days $12,000 B 5 days $2,0002 days $9,500 C 10 days $9,0008 days $12,000\begin{array} { | c | c | c | c | c | } \hline \text { Activity } & \text { Normal Time } & \text { Normal Cost } & \begin{array} { c } \text { Crash } \\\text { Duration }\end{array} & \text { Crash Cost } \\\hline \text { A } & 8 \text { days } & \$ 8,000 & 6 \text { days } & \$ 12,000 \\\hline \text { B } & 5 \text { days } & \$ 2,000 & 2 \text { days } & \$ 9,500 \\\hline \text { C } & 10 \text { days } & \$ 9,000 & 8 \text { days } & \$ 12,000 \\\hline\end{array} Activity A B C Normal Time 8 days 5 days 10 days Normal Cost $8,000$2,000$9,000 Crash Duration 6 days 2 days 8 days Crash Cost $12,000$9,500$12,000
Crash Cost
The additional expenses incurred to reduce the completion time of a project, often through measures such as overtime pay or extra resources.
Crash Duration
The shortest time period in which a task or project can be completed by allocating the maximum resources, often at increased cost.
- Master and utilize the strategies of crashing within project management to decrease the time needed for completion.
- Assess the costs associated with speeding up project tasks and pinpoint the most economically sound activities to expedite.
Verified Answer
GS
Gurvinder SinghJul 01, 2024
Final Answer :
(A) A saves 2 days for $2000/day, B saves 3 days for $2500/day, C saves 2 days at $1500/day.
(B) Max time savings is A + B + C = 7 days for a total of $14,500
(C) 2 days from A and 2 days could be crashed from C. This means the maximum reduction is 4 days.
(B) Max time savings is A + B + C = 7 days for a total of $14,500
(C) 2 days from A and 2 days could be crashed from C. This means the maximum reduction is 4 days.
Learning Objectives
- Master and utilize the strategies of crashing within project management to decrease the time needed for completion.
- Assess the costs associated with speeding up project tasks and pinpoint the most economically sound activities to expedite.
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