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Questions:
1. Perform the activities crashing until it can no longer be crashed. What is the total cost?
Answer:
The total cost after all the activities have been crashed is $7,200.00 (including finished early bonuses) or $6,575.00 (excluding finished early
bonuses).
Note: Both methods produced the same result (please refer to the attachment below)
2. If there is a bonus of $125 per day for finishing early, what activities would be crashed, and how fast would the project be completed?
Answer:
Activities B, D, E, F, G are the activities that can be crashed. This project can be finished 5 days earlier to 20 days from the expected project
duration, which is 25 days. The total finished early bonuses earned is at $625.00 (5 days x $125.00). However, by crashing the whole project, the
overall cost of the project will increase by $5,125 from $2,075 to $7,200 which is an increase of nearly 247%.
In my opinion, cost increment for project crashing that is too high which is over 200%, is not viable to proceed, entirely. The most acceptable
cost and the number of days shorten is only for 1 day, which in activity E (from initial 3 days to 2 days duration), with the crash cost of $300 and
shorten the entire project to 24 days. The overall project will cost $2,500 including $125 for 1 day finished early bonus.
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Assignment 2 – Project Crashing
METHOD 1A
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Assignment 2 – Project Crashing
METHOD 1A (CONTINUED)
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Assignment 2 – Project Crashing
METHOD 1B
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Assignment 2 – Project Crashing
METHOD 1B (CONTINUED)
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Assignment 2 – Project Crashing
METHOD 1B (CONTINUED)
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Assignment 2 – Project Crashing
METHOD 2
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Assignment 2 – Project Crashing
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Assignment 2 – Project Crashing
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