A) Initially determine the critical path of the project as shown below:

Path Total duration

A-D-H 4+9+7 = 20
A-C-F-H 4+6+5+7 = 22*
A-C-E-G 4+6+4+3 = 17
B-F-H 9+5+7 = 21
B-E-G 9+4+3 = 16

Normal duration of a project is determined by the length of its critical path. Here, path A-C-F-H has
the longest project duration of 22 days. Hence, the normal project duration is 22 days.

Total direct cost involved in the project is determined by adding the cost of each activity as shown
below:

Total cost = 210+400+500+540+500+150+150+600 = $3,050 (value in 1,000s)

B) In order to determine the least costly way to reduce the project duration to 21 days, find the
crashing activity having minimum cost slope.

The cost slope and time available for crashing for each activity is shown below:

Activity Tn Cn Tc Cc Cost slope Time to be

crashed
A 4 210 3 280 70 1

B 9 400 6 640 80 3
C 6 500 4 600 50 2

D 9 540 7 600 30 2
E 4 500 1 1100 200 3

F 5 150 4 240 90 1
G 3 150 3 150 - 0

H 7 600 6 750 150 1

3050

Here, A-C-F-H is the critical path. Out of the critical activities A, C, F, and H, Activity C has the
minimum value of cost slope. Reducing Activity C by 1 week can reduce the project duration to 21
days.

The new path durations after crashing Activity C by 1 day are shown below:

Path Total duration

A-D-H 20
A-C-F-H 22 - 1 = 21 *
A-C-E-G 17 - 1 = 16
B-F-H 21 *
 B-E-G 16

Hence, the project duration is reduced to 21 days. The new project cost will be calculated as shown
below:

New project cost = Actual project cost + Cost slope for Activity C

= $3,050 + $50

= $3,100 (value in 1,000s)

C) The least costly way to reduce the duration to 20 days is determined as below:

Path Total duration

A-D-H 20
A-C-F-H 21*
A-C-E-G 16
B-F-H 21*
B-E-G 16

Out of the two critical paths, activity F is common and involves the minimum cost slope. Therefore,
activity F should be crashed by 1 day. The new durations would be as shown below:

Path Total duration

A-D-H 20*
A-C-F-H 20*
A-C-E-G 16
B-F-H 20*
B-E-G 16

Hence, the project duration is reduced to 20 days. The new project cost will be calculated as shown
below:

New project cost = Previous project cost + Cost slope for Activity F

= $3,100 + $90

= $3,190 (value in 1,000s)

D) Out of the three critical paths, activity H is common and involves the minimum cost slope.
Therefore, activity H should be crashed by 1 day. The new durations would be as shown below:

Path Total duration

A-D-H 18*
A-C-F-H 18*
A-C-E-G 15
B-F-H 18*
B-E-G 15
Project cost = 3,190 + 150 = 3,340

Now, crash Activity A and B by 1 day each, simultaneously. The new durations would be as shown
below:

Path Total duration

A-D-H 19*
A-C-F-H 19*
A-C-E-G 16
B-F-H 19*
B-E-G 16

Project cost = 3,340 + 70 + 80 = $3,490

Now, crash Activity A and B by 1 day each, simultaneously.

Project cost = 3,340 + 70 + 80 = $3,490

Now, the activities can be reduced up to max one day. Nov crash activities D, B, and C each by 1 day
each.

Project cost = 3,490+30+80+50 = $3,650

Hence, the new project cost $3,650.