PROJECT MANAGEMENT

HOMEWORK 5

1.
a. Critical path= ST-A-B-D-G-I-K
 b. Activity E has slack time of 13 days. So even if it takes 10 days past the anticipated
duration time it won’t affect the project’s schedule and I won’t affect the critical path
too.

2.

a) Expected activity times are shown in the table.

b) The slack time is found to be 1 week for A, 1 week for D, and 2 weeks for F.
The total project length is 22 weeks.
c) All the paths are
ST-A-D-G (has slack time of 2 weeks)
ST-A-E-G (has slack time of 1 week)
ST-B-C-E-G (No slack time due to critical path)
ST-B-F-G (has slack time of 2 weeks)
The critical path is ST-B-C-E-G with 22 weeks of its timeline.
d) Merge activities are E and G, burst activities are B, and A.
e) Variance of the critical path = 7
Length of critical path = 22
Probability of the project to finish before 24 weeks is:
Pr(Z<(a-μ)/σ )
Pr(Z<(24-22/2.64))
=Pr(0.755)
From the Z table the calculated probability for finishing the project before 24 weeks is
77.34%.
f) In order to get 99% confidence in finishing the project the Z value is 2.33.
Therefore by doing the inverse calculation
Y-22= 2.33*2.64
Y= 28.16 weeks
We need approximately 28.16 weeks to admit that the project would be completed by 99%.
3.
a)

b) The most attractive candidates for crashing are C, D, and G in the preference order C>D>G

4.

Possible paths= A-B-E-G=20, A-B-D-F-G = 26, A-C-D-F-G= 24

Project duration= 26
Normal direct cost= 16,300
Indirect cost= 26x
Total cost = 16,300+26x
Crash 1
Shorten activity B one day at a cost of 400$. The length of the critical path would become 25
days. Direct cost= 16,300+400= 16700

Indirect cost= 25x

Total cost= 16,700+25x
Critical path= A-B-D-F-G = 25
Crash 2
Shorten activity B one day at a cost of 400$. The length of the critical path becomes 24 days
Direct cost= 16,700+400= 17,100
Indirect cost= 24x
Total cost= 17,100+24x
Crash 3
Now we have two critical paths= A-B-D-F-G and A-C-D-F-G
Crashing G would reduce the project duration by 1 day

Direct cost= 17,100+600 = 17,700

Indirect cost= 23x
Total cost= 17,700+23x
Crash 4
Activities A, D, F are common for both critical paths but among these crash per day cost is less
for A and that would reduce the project time by 1 day

Direct cost= 17,700+1000= 18,700

Indirect cost= 22x
Total cost= 18,700+22x
Crash 5
Among D and F, D has less crash cost per day
Direct cost= 18,700+1267= 19,967
Indirect cost= 21x
Total cost= 19,967+21x
Let us consider that the indirect cost is 1000$ per

Day then

From the graph we can see that the total cost is the same for crash 3 and crash 4. But, at the
same cost in case of crash 4 we could complete the project in 22 days.
a) The actual cost of the project is 42,300$ without crashing the project.
b) Activities B and G are best candidates for crashing.
c) The expected duration of the project once it is fully crashed is 22 days
d) The cost of fully crashed project is 40,700$
 5.

Direct costs increase in the order 15,35,35,35,35 as we reduce the project duration from 60
days.
Overhead costs decrease by 2500 for reducing the project duration every 3 days.
Penalty charges increase by 5000 over 50 days for each day.
a)
From the table I would advise to complete the project by 57 days which has the least total cost.
b)

From the graph we could conclude that if direct cost increases by 5000$ per day then
crashing the project to 51 days is the most profitable option.
6.

7.

Network diagram
The critical path is shown in red which is A-B-D-E with 18 days

8.

Gantt Chart

9.

Network diagram
Gantt chart

Critical path is A-C-D-E-G with 26 days

10.

Gantt chart
Network diagram

Critical path is A-B-R-E-H with 15 days