PROJECT MANAGEMENT QUESTION! The table below shows the actual duration of activi

Question

PROJECT MANAGEMENT QUESTION!

The table below shows the actual duration of activities: a to f which have already been completed and the project crashing data for activities g to j which have yet to be executed. Assuming that activities: g to j are completed on time (as per the initial data), how much delay would the overall project face given the actual durations of activities a to f? Determine the crash cost slope for each of the activities: g to j. Assuming that a penalty of $500 per week would apply to delays on the completion of the project, determine the correct sequence of activities which should be crashed. How much is the overall savings which would be achieved as a result of crashing the project?

Explanation / Answer

a) As crashed cost of activities a to j is also not given, so we assume that activities a to f completed on or before schedule. And there's further assumption in the question that activities g to j are also completed on time. so There's ZERO delay in the overall project.

b) Crash cost slope for activity ,

cost slope of g => (2300-400*NTg)/(NTg-2), where NTg is the Normal schedule time of activity g, similarly

cost slope of h => (3300-600*NTh)/(NTh-1)

cost slope of i => (3000-700*TNi)/(TNi-3)

cost slope of j => (4400-800*TNj)/(TNj-1)

c) Crashed cost per week for activity i = 1000, which is the lowest of all, following by g, h and j. so the correct sequence of activities to be crashed is i, g, h, j

d) The overall penalty savings by crashing the project by 7 weeks would be 7*500 = 3500 . However we need to adjust the incremental cost of crashing over the normal cost from penalty savings.

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