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Assignment 2 Cashing Project

The document describes how to crash a project to reduce its duration. It provides a sample project with activities, predecessors, normal and crash durations and costs. The critical path is identified as A-B-E-F with a duration of 23 days. Activities are crashed one at a time based on the least cost slope. Crashing is done in stages, identifying the next critical activity to crash at each stage. The minimum time and cost for the crashed project is 15 days and $29,500 respectively.

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Hernan Ochoa
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171 views2 pages

Assignment 2 Cashing Project

The document describes how to crash a project to reduce its duration. It provides a sample project with activities, predecessors, normal and crash durations and costs. The critical path is identified as A-B-E-F with a duration of 23 days. Activities are crashed one at a time based on the least cost slope. Crashing is done in stages, identifying the next critical activity to crash at each stage. The minimum time and cost for the crashed project is 15 days and $29,500 respectively.

Uploaded by

Hernan Ochoa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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53:623:510

Managing Projects and Information Technology


Dr. Shankar Sundaresan

  Assignment 2 ‐  Crashing Projects – Sample Solution 
Consider the following project represented by the table of activities and 
predecessors.    Illustrate how this project can be crashed stagewise.  What is 
the minimum time and cost for the crashed project?    
  
Activity   Predecessors   Time Required Cost    
      Normal Crash Normal Crash    
A      4 2 10,000 14,000    
B   A  6 5 30,000 34,500    
C   A  2 1 8,000 9,500    
D   B   2 1 12,000 18,000    
E   B, C   7 5 40,000 52,000    
F   D, E   6 3 20,000 29,000    
  
Hint:
1) Calculate the critical path and find the critical activities.

2) Apply the rule for choosing activities for crashing (the one with the least
cost slope which is also a critical activity). Crash this activity, i.e., reduce
its duration, calculate the new project completion time, and cost of
crashing this stage.

3) For the next stage, continue with crashing with the next available
candidate. (Check if the critical path has changed because of crashing).

4) Indicate the crashed activity, crashed duration, and the stepwise and
cumulative cost of the crashing in each stage.
 
In addition, you may assume partial crashing, i.e., reducing an activity’s duration 
by less than the maximum crashing amount, is permitted for all activities. 
Drawing the network diagram, the critical path is found to be A-B-E-F with a
project duration of 23 days.
Calculate the slope as (crash cost – normal cost)/(normal time – crash time).

Activit Predece Time Cost Slope=


y ssors Required cc-nc/nt-ct
Normal Crash Normal Crash
A 4 2 10,000 14,000 -2,000
B A 6 5 30,000 34,500 -4,500
C A 2 1 8,000 9,500 -1,500
D B 2 1 12,000 18,000 -6,000
E B, C 7 5 40,000 52,000 -6,000
F D, E 6 3 20,000 29,000 -3,000

Stage I: Least slope candidate: C; But it is not in the critical path; so skipped.
Next least slope candidate: Activity A; crash activity A from 4 to 2 days;
Critical path continues to be A-B-E-F; Project Duration = 21 days.
Current Stage crashing cost = $4,000; Cumulative crashing cost = $4,000.
Stage II:
Next least slope candidate: Activity F; crash activity F from 6 to 3 days;
Critical path continues to be A-B-E-F; Project Duration = 18 days.
Current Stage crashing cost = $9,000; Cumulative crashing cost = $13,000.
Stage III:
Next least slope candidate: Activity B; crash activity B from 6 to 5 days;
Critical path continues to be A-B-E-F; Project Duration = 17 days.
Current Stage crashing cost = $4,500; Cumulative crashing cost = $17,500.
Stage IV:
Next least slope candidate: Activity E; crash activity E from 7 to 5 days;
Critical path continues to be A-B-E-F; Project Duration = 15 days.
Current Stage crashing cost = $12,000; Cumulative crashing cost = $29,500.

This is the maximum crashing achievable in this example.

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