scott corey cpas project crashing homework solution mgmt e-5050

Scott Corey CPAsScott Corey CPAsProject CrashingProject Crashing

Homework Solution

MGMT E-5050

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The Scott Corey accounting firm is installing a newcomputer system. Several things must be done tomake sure the system works properly before all theaccounts are put into the new system.

The following table provides information about thisproject:

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Activity Immediate Predecessor Time ( Weeks )

A - 3

B - 4

C A 6

D B 2

E A 5

F C 2

G D,E 4

H F,G 5

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REQUIREMENT:

1. How long will it take to install the system?

2. What is the critical path?

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The managing partner of the firm has decided that thesystem must be up and running in 16 weeks.

Consequently, information about crashing the projectwas put together and is shown in the following table:

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Activity

Immediate

Predecessor

Normal

Time

( weeks )

Crash

Time

( weeks )

Normal

Cost

( $ )

Crash

Cost

( $ )

A - 3 2 8,000 9,800

B - 4 3 9,000 10,000

C A 6 4 12,000 15,000

D B 2 1 15,000 15,500

E A 5 3 5,000 8,700

F C 2 1 7,500 9,000

G D,E 4 2 8,000 9,400

H F,G 5 3 5,000 6,600

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REQUIREMENT:

1. If the project is to be finished in 16 weeks, which activity or activities should be crashed to do this at the least additional cost? 2. What is the total cost of this?

3. List all the paths in this network. After the crash- ing has been done, what is the time required for each path?

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REQUIREMENTS:

4. If the project completion time must be reduced another week so that the total time is 15 weeks, which activity or activities should be crashed? Solve this by inspection.

NOTE: It is sometimes better to crash an activity that is not the least cost for crashing if it is on several paths rather than to crash several activities on separate paths when there is more than one critical path.

Homework SolutionHomework Solution

The total time to complete the project is 17 weeks.

The critical path is A-E-G-H

Crash activity “G” one week at an additional cost of $700.00

The paths are A-E-G-H, A-C-F-H, and B-D-G-H.

When “G” is crashed by 1 week, the project completion time is reduced to 16 weeks.