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Chapter 09 HW PDF
Chapter 09 HW PDF
Review Questions
Reducing the scope of the project can lead to big savings both in time and costs. It
typically means the elimination of certain tasks. At the same time scaling down the
scope may reduce the value of the project such that it is no longer worthwhile or fails
to meet critical success parameters. The key is reassessing the project requirements
to determine which are essential and which are optional. This requires the active
involvement of all key stakeholders. More intense re-examination of requirements
may actually improve the value of the project by getting it done more quickly and for
a lower cost.
4. Identify four indirect costs you might find on a moderately complex project.
Why are these costs classified as indirect?
6. Reducing the project duration increases the risk of being late. Explain.
Compressing the project duration means slack (float) on noncritical activities will be
reduced. When slack of noncritical activities is reduced, the chance of new critical
paths occurring increases; hence, the risk of the project becoming late increases. In
addition, compressing will have the following other impacts on managing the project:
7. It is possible to shorten the critical path and save money. Explain how.
The only way to shorten the critical path and save money is to have indirect costs
which are greater than the additional direct costs of shortening the critical path one
unit of time. The difference is a savings.
Exercises
Note: Use the procedure presented in the chapter example to compute exercises; that is,
compress one time unit per move using the least-cost method.
Note: The duration for this schedule is weeks and students should be told only to
crash the network one week at a time (not days).
Note: The duration for this schedule is weeks. Students should be reminded that they
crash the schedule one week at a time (not divide the week into days).
Direct Costs
Activity Maximum Normal Crash
ID Slope Crash Time Time Cost Time Cost
A - 0 4 $50 0 -
B $40 3 5 70 2 $190
C 40 1 5 80 4 120
D 40 2 4 40 2 120
E 40 2 5 60 3 140
F 40 1 5 50 4 90
G 30 1 4 70 3 160
H 30 1 4 80 3 110
I - 0 3 50 0 -
Total direct normal costs— $550
Note: The answers provided are based on a January 1, 2010 start date which due to
holidays means the project begins on January 4, 2010.
The text defines sensitivity as the likelihood that the critical path may change during
the course of the project. Sensitivity results from the number of critical paths and the
amount of slack available to non-critical activities.
Based on the information provided, this project is a fairly insensitive network. Most
non-critical activities have between 20-37 days of slack, exceeding their estimated