Crash cost associated with shortening the schedule


For an organization, the following project schedule is given. Assume that all times are in days.

Task

Predecessor

Normal Time

Crash Time

Crash Cost Slope

A

None

7

7

NA

B

A

3

3

NA

C

A

8

4

600

D

A

4

4

NA

E

B

6

5

600

F

C, D

2

2

NA

G

E, F

6

6

NA

H

F

5

3

400

I

G, H

4

4

NA

J

I

2

2

NA

In a 3- to 4-page Microsoft Word document, address the following:

  • Draw the AON project network using Microsoft Project, Microsoft Visio, or some other tool capable of creating such a network. Perform a critical path analysis for the network and calculate the ES, EF, LS, and LF times.
  • Calculate the slack time for each activity.
  • Identify the critical path.
  • Assume that the organization will receive a $400 bonus for each day the duration of the project is shortened. The organization is also responsible for paying the crash cost associated with shortening the schedule. To maximize the net profit, identify which task you should crash and by how much.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Crash cost associated with shortening the schedule
Reference No:- TGS0516849

Expected delivery within 24 Hours