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You are on page 1of 11

Exercise 1, Part A.

You are given the following data about the project tasks, network, and crash times/costs. Calculate the cost of the project at all time durations until you can no longer crash the project any

further.

Direct costs

Normal

Crash

Maximum

Slope Crash Time

ID

Time

Cost

Time

Cost

$500

$600

$100

10

$1200

$2000

$200

13

$3600

11

$4800

$600

13

$300

11

$600

$150

$1000

$1400

$400

10

$2400

$5400

$1500

$700

$700

$0

$9700

Page 1 of 11

Calculate the critical path(s) and the direct costs of this project:

Path 1: A->B->D->G Duration: 33

Project Dur: 38

Total Direct Costs: $9700

Exercise 1, Part C.

If possible, calculate the critical path(s), and the additional costs of crashing this project by

another 1 day:

Path 1: A->B->D->G Duration: 32

Project Dur: 37

Normal Duration Direct Costs: $9700

Page 2 of 11

If possible, calculate the critical path(s), and the additional costs of crashing this project by

another 1 day:

Path 1: A->B->D->G Duration: 32

Project Dur: 36

Normal Duration Direct Costs: $9700

If possible, calculate the critical path(s), and the additional costs of crashing this project by

another 1 day:

Path 1: A->B->D->G Duration: 32

Project Dur: 35

Normal Duration Direct Costs: $9700

$600 (C)

Page 3 of 11

If possible, calculate the critical path(s), and the additional costs of crashing this project by

another 1 day:

Path 1: A->B->D->G Duration: 32

Project Dur: 34

Normal Duration Direct Costs: $9700

$600 (C) + $600 (C)

another 1 day:

Path 1: A->B->D->G Duration: 32

Project Dur: 33

Normal Duration Direct Costs: $9700

$600 (C) + $600 (C) + 1500 (F)

Page 4 of 11

If possible, calculate the critical path(s), and the additional costs of crashing this project by

another 1 day::

Path 1: A->B->D->G Duration: 32

Project Dur: 32

Normal Duration Direct Costs: $9700

$600(C) + $600(C) + 1500(F) + 1500(F)

Exercise 1, Part D.

Tally the Direct Costs that you calculated at Each Duration in the table below. Calculate the incentive that you would have to complete the project at the various time periods.

Project Duration

Total Direct Costs

Incentives ($500 per

day beyond initial

duration)

TOTAL PROJECT

COSTS

Initial

Dur

-1

-2

-3

-4

-5

-6

-7

38

37

36

35

34

33

32

NA

$9,700

$9,800

$10,200

$10,800

$11,400

$12,900

$14,400

NA

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$2500

$9,700

$9,300

$9,200

$9,300

$9,400

$10,400

$11,400

NA

Page 5 of 11

Exercise 2, Part A.

You are given the following data about the project tasks, network, and crash times/costs. Calculate the cost of the project at all time durations until you can no longer crash the project any

further.

Direct costs

Normal

Crash

Maximum

Slope Crash Time

ID

Time

Cost

Time

Cost

10

$5000

10

$5000

$0

12

$1200

11

$1300

$100

11

$3600

$4800

$600

$300

$600

$300

$1000

$2000

$500

$2400

$5400

$1500

$700

$1000

$300

$14200

Page 6 of 11

Calculate the critical path(s) and the direct costs of this project:

Critical Path: B->C->F->G Duration: 40

Project Dur: 40

Exercise 2, Part C.

If possible, calculate the critical path(s) and the costs of crashing this project by 1 day:

Critical Path: B->C->F->G Duration: 39

Normal Duration Direct Costs: $14,200

Project Dur: 39

Additional Costs of Crashing: $100(B)

Page 7 of 11

If possible, calculate the critical path(s) and the costs of crashing this project by 1 day:

Critical Path: B->C->F->G Duration: 38

Normal Duration Direct Costs: $14,200

Project Dur: 38

Additional Costs of Crashing: $100(B) + $300 (G)

If possible, calculate the critical path(s) and the costs of crashing this project by 1 day:

Critical Path: B->C->F->G Duration: 37 Project Dur: 37

Normal Duration Direct Costs: $14,200

$600(C)

Page 8 of 11

If possible, calculate the critical path(s) and the costs of crashing this project by 1 day:

Critical Path: B->C->F->G Duration: 36 Project Dur: 36

Normal Duration Direct Costs: $14,200

$600(C) + $600(C)

If possible, calculate the critical path(s) and the costs of crashing this project by 1 day:

Critical Path: B->C->F->G + B->C->E->G Duration: 35

Normal Duration Direct Costs: $14,200

Project Dur: 35

$600(C) + $600(C) + $1500 (F)

Page 9 of 11

If possible, calculate the critical path(s) and the costs of crashing this project by 1 day:

Critical Path: B->C->F->G + B->C->E->G Duration: 34

Normal Duration Direct Costs: $14,200

Project Dur: 34

$600(C) + $600(C) + $1500(F) + $1500(F) +$500(E)

Page 10 of 11

Exercise 2, Part D.

Tally the Direct Costs that you calculated at Each Duration in the table below. You are given

the direct costs at each time period Calculate total project costs.

Initial

Dur

-1

-2

-3

-4

-5

-6

-7

40

39

38

37

36

35

34

33

$14,200

$14,300

$14,600

$15,200

$15,800

$17,300

$19,300

NA

Indirect Costs

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$250

$0

TOTAL COSTS

$17,200

$16,800

$16,600

$16,700

$16,800

$17,800

$19,550

NA

Project Duration

Page 11 of 11

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