A project involves the following activities: Activity Predecessor Normal (Min.)

Question

A project involves the following activities:

            Activity           Predecessor     Normal           (Min.) Crash                   Cost of

                                                            Duration              Duration                  Crashing/day

                 A                       -                4 days                   3 days                       $100

                 B                       -                7    “                     4    “                         $300

                 C                       A              2    “                     1    “                         $400

                 D                     B, C            5    “                     4    “                         $200

            Suppose the benefit arising from reducing the project duration is $500/day. Which tasks should be crashed, and by how much? What is the total net benefit

Please show step by step solution. Dont use excel.

Explanation / Answer

As BD is the critical path with duration of 12 days we can crash either B and D by one day. The activities can't be crashed anymore because if done, ACD will become critical path and the expected benefit does not allow to crash activities for 2 days.

Out of B and D, we will crash D, the cost of crash being lowest at 200. The duration will now be 11 days.

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