Find economical way to reduce completion time of project


Problem

Consider a project having the following ten activities:

Activity

Immediate Predecessors

Normal Time (weeks)

Normal Cost

($)

Crash Duration

(weeks)

Crash Cost

($)

Max. Weeks Reduced

A

none

7

3,000

6

6,000

1

B

A

8

5,000

6

9,000

2

C

A

2

2,000

1

3,000

1

D

A

4

3,000

4

3,000

0

E

B, C

9

4,000

7

6,000

2

F

C, D

6

4,000

4

9,000

2

G

E

2

3,000

2

3,000

0

H

E, F

9

4,000

7

7,000

2

I

G

1

4,000

1

4,000

0

J

H, I

8

2,000

6

7,000

2

Required:

Question 1) Draw a network diagram. What is the expected project completion time?

Question 2) What is the critical path?

Question 3) What is the most economical way and how much will it cost to reduce the completion time of the project by three weeks? By five weeks?

Solve the given numerical problem and illustrate step by step calculation

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Operation Management: Find economical way to reduce completion time of project
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