1.

The following information is known about a project

Activity
A
B
C
D
E
F
G

Activity Time (days)

7
2
4
4
4
3
5

Immediate
Predecessor(s)
-A
A
B, C
D
E
E

Draw the network diagram for this project

2.
Calculate the four times (ES, LS, EF, and LF) for each activity in order to determine the
critical path and project duration
Activity
Duration
Earliest
Start
(ES)
Latest
Start
(LS)
Earliest
Finish
(EF)
Latest
Finish
(LF)
Slack
On the Critical Path?
A
7
0
0
7
7
0
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B
2

2
C
4

0
D
4

0
E
4

0
F
3

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2
G
5

3.
Project Activity and Cost Data

Activity
A
B
C
D
E
F
G
H

Normal
Cost
($)
1,000
800
600
1,500
900
1,300
900
500

Normal Time
(days)
5
5
2
3
5
2
3
5

Crash
Time (days)
4
3
1
2
3
1
3
3

Crash
Cost ($)
1,200
2,000
900
2,000
1,200
1,400
900
900

Immediate
Predecessor(s)
--A, B
B
C, D
E
E
G

Indirect project costs= $250 per day and penalty cost = $100 per day for each day the project
lasts beyond day 14.
5

8
ES ID EF
LS

13

15

19

21

Start

E 13

DUR

LF

Finish

13

13

G 16

16 H 21

13

16

16

21

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Direct cost and time data for the activities:

Activity
A
B
C
D
E
F
G
H

Crash Cost/Day
200
600
300
500
150
100
0
200

Maximum Crash
Time (days)
1
2
1
1
2
1
0
2

Solution:
Original costs:
Normal Total Costs =
Total Indirect Costs =
Penalty Cost =
Total Project Costs =
STAGE 1
Step 1: The critical path is _________ and the project duration is _________ days
Step 2:
Step 3:
Costs Last Trial =
Crash Cost Added =
Total Indirect Costs =
Penalty Cost =
Total Project Costs =
Step 4: repeat procedure until the increase in direct costs is larger than the savings
STAGE 2
Step 1: The critical path is _________ and the project duration is _________ days
Step 2:
Step 3:
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Costs Last Trial =

Crash Cost Added =
Total Indirect Costs =
Penalty Cost =
Total Project Costs =
Step 4: repeat procedure

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STAGE 3
Step 1: The critical path is _________ and the project duration is _________ days
Step 2:
Step 3:
Costs Last Trial =
Crash Cost Added =
Total Indirect Costs =
Penalty Cost =
Total Project Costs =
Step 4:
A summary of the cost analysis follows. The recommended completion date is day ____ by
crashing
Resulting Reduc- Project Costs Crash Total
Total
Total
Crash Critical
tion Duration Last Cost Indirect Penalty Project
Trial Activity Paths
(days) (days) Trial Added Costs
Costs
Costs
0
1
2
Further reductions will cost more than the savings in indirect costs and penalties.
The critical path is BDEGH.

4.
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(unit: day)
Activity
A
B
C
D
E
F
G
H
I
J

Immediate
Predecessor(s)
---A
B
C, E
D
F
G, H
G

Optimistic
(a)
5
6
3
11
8
3
4
5
8
4

Most
Likely
(m)
7
8
4
17
10
4
8
7
11
4

Pessimistic
(b)
8
12
5
25
12
5
9
9
17
4

Expected
Time
(te)

Variance
( 2

Critical path? The expected completion time and variance of the critical path?

What is the probability that everything will be ready in 47 days?

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