Project Management

Sheet 4 (Project Cost Management)

1. In a software design project, the sponsor was not satisfied with the project time
plan and asked the project manager to crash the project time. The manager made
a study on how can each activity be crashed, and at what additional cost. The
study results are demonstrated in the following table:

a. Draw the project network and find the normal and minimum completion times.
b. Crash the project by 6 days, and find the minimum relevant costs.
2. For the following network, find the normal and minimum time. Then crash the
normal time by 3 weeks at minimum cost.

B D
Start finish
A
C E
Activity Normal time Crash time Normal cost Crash cost

A 3 weeks 2 weeks $ 54,000 $ 60,000

B 4 3 62,000 65,000
C 5 2 66,000 70,000
D 3 1 40,000 43,000
E 4 2 75,000 80,000

3. Consider the following project table . find the normal and minimum time.
Then crash the normal time by 2 weeks at minimum cost.

Activity Pred. Normal Crash time Normal cost Crash cost

time
A - 2 weeks 1 $ 180,000 $ 280,000
B - 4 2 320,000 420,000
C A 10 7 620,000 860,000
D B,C 6 4 260,000 340,000
E C 4 3 410,000 570,000
F E 5 3 180,000 260,000
G D 7 4 900,000 1,020,000
H E,G 9 6 200,000 380,000
I C 7 5 210,000 270,000
J F,I 8 6 430,000 490,000
K H,J 4 3 160,000 200,000
L J 5 3 250,000 350,000
M H 2 1 100,000 200,000
N K,L,M 6 3 330,000 510,000