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Three individual steps to be taken before the service could begin: (1) write instructions and procedures, (2) select techniques to operate the equipment, and (3) procure the equipment. It would be possible to save time on the project, by paying some premiums to complete certain activities faster than the normal schedule listed below.

If the equipment were shipped by express truck, one week could be saved. Air freight would save two weeks. However, a premium of $200 would be paid for the express truck shipment and $750 would be paid for air shipment. The operator training period could also be reduced by one week if the trainees worked overtime. However, this would cost the facility an additional $600. The time required to complete the instructions could be reduced by one week with the additional expenditure of $400. However, $300 could be saved if this activity was allowed to take three weeks

What is the shortest time period in which the project can be completed using the expected times listed in the table above.

What is the shortest time in which the project can be completed if extra money is used to reduce the times for certain activities?

What is the lowest cost schedule for this shortest time?

Activities required to introduce new diagnostic procedure

 

Activity

Duration (weeks)

Immediate Predecessors

A

Write instructions

2

-

B

Select operators

4

-

C

Train operators

3

A, B

D

Announce new service

4

B

E

Purchase, ship, and receive equipment

8

-

F

Test new operators on equipment

2

C, E

 

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