EXERCISES ON PERT-CPM

EXERCISE 1. The following table shows the information related to a project that involves the merger of two marketing firms (in days).
Activity A B C D E F G H I J Immediate Predecessors A B C, D B D, F E E, G F, I Estimated Duration 10 15 5 12 14 8 15 10 6 9

a. Draw the project network and list down all paths with their total estimated time. b. Determine the critical path and the project completion time. EXERCISE 2. The activity cost chart for a manufacturing project of Dengdeng, Corp. is presented below:
Activity AB AD AC BE DE CE BD BC NORMAL Cost 9,000 15,000 12,000 18,000 24,000 18,000 7,500 6,000 Time (days) 7.0 10.0 11.0 14.0 13.0 15.0 2.0 1.0 CRASH Cost 12,000 15,750 14,250 21,000 27,600 20,250 10,500 7,500 Time (days) 5.0 9.0 8.0 10.0 10.0 13.0 1.0 0.5

a. Draw the project network and list down all paths with their total estimated time. b. Determine the critical path and the project completion time. c. In order to keep costs at a minimum and decrease the completion time of the project by three days, the company should crash one or more activities. Which activity/ies should be crashed and how much is the incremental cost of crashing such activity/ies.