Answered Essay: 1. Draw the project​ activity-on-node network. 2. How many weeks does the project take to be completed

The table below contains data for the development of a new moutain bike by the Famous Bike Company at Phiily. As the project manager,you strive to keep the total project costs to the minimum. The cost information is as follows. Indirect costs are 10,000 per week, and a penalty cost of S8,000 per week will be incurred by your company for every week the project is delayed beyond week 12 Normal Time Crash Time Normal Cost Crash Cost Activity Immediate Predecessor(s) (weeks) (weeks) 7,000 3,000 12,000 14,000 3,000 40,000 22.000 8,000 13,000 8,000 5,000 9,0001. Draw the project​ activity-on-node network.

2. How many weeks does the project take to be completed under the normal​ times?

3. Calculate the total project costs under the normal times​ (before crashing).

4. Even though the eventual goal is to find the​ minimum-cost schedule that involves multiple stages of activity​ crashing, you are only asked to perform the first stage in this complicated task due to time limit of the exam. For this first stage of project​crashing, you need to answer the following​ questions:

a. What​ activity(ies) should we crash in the first​ stage? Why?

b. How many weeks should we crash the​ activity(ies) identified in​ (a)? Why?

c. What are the total project costs after the first stage of​ crashing?

The table below contains data for the development of a new moutain bike by the Famous Bike Company at Phiily. As the project manager, you strive to keep the total project costs to the minimum. The cost information is as follows. Indirect costs are $10,000 per week, and a penalty cost of $8,000 per week will be incurred by your company for every week the project is delayed beyond week 12.

Expert Answer

Answer

normal time is = B – D – F

2 + 4 + 6 = 12

12 weeks to be completed.

normal project cost =

THERE ARE TWO PATHS POSSIBLE FOR COMPLETING THE PROJECT.

CRITICAL PATH = 0 – B – D – F

ANOTHER PATH = 0 – A – C – E – G

WE CAN SEE THAT THERE ARE NO COMMON ACTIVITES IN BOTH PATH.

THEREFORE, WE SHALL SELECT THE ACTIVITY WHICH HAVE LOWER CRASHING COST.

ACTIVITY B HAVE LOWER CRASHING COST.

WE CAN CRASH ACTIVITY B BY 2 WEEKS.

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