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Indian Institute of Management, Ahmedabad

UCR Course

Faculty: Prof. Goutam Dutta

Assignment – 2

Cost and Budget Problem

Please Draw the Project Network diagram based on the following information.

Activity Predecessor Time (months) Cost Rs Lakhs


A - 2 200
B A 2 600
C A 12 1800
D A 3 150
E - 1 100
F B 4 200
G D 2 500
H E 4 400
I C,F 5 250
J G,H 3 600
K J 2 400
L I,K 1 10

The project starts with the starting of the activities A and E together and ends with the
completion of L.
1. Find the critical path and project duration.
2. Construct an early/late start schedule chart
3. Find the cost of the project in each period for early/late start.
4. Prepare a budget estimate

Discuss the implication of early start and late start schedule on the project budget

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