ABC Construction is designing a new highway project. Shown below are the activities that need to be completed in this project. The Crash Time for an activity represents the resulting time after the activity has been crashed. The Normal Cost represents the cost to complete the activity in the Normal Time. The Crash Cost represents the cost to complete the activity in the Crash Time.
In addition to the costs identified below, there are indirect costs of $300 per week. In addition, there a penalty cost of $500 per week for each week the project lasts beyond week five.
Activity Predecessor Normal Time (Weeks) Crash Time (Weeks) Normal Cost Crash Cost
A -- 4 3 800 1200 B A 3 2 900 1000 C A 5 3 1250 2250 D A 2 2 800 800 E B,C 5 4 1500 2000 F C,D 6 5 2000 3000 G E,F 4 3 600 900
H G 3 3 900 900
As with the other test problems, you must show your work to receive full credit.
a) What are the normal project completion time and the critical path?
b) What activity should be crashed to reduce the completion time found in a) by one week? Why?
c) What is the minimum cost schedule for this project and what is the cost of this schedule?
d) What is the project completion time if all activities are crashed to their minimum Crash Time?