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For certain activities it may be possible to decrease their completion times by spending more money How does this affect the overall completion time of the project?
Illustration 1
A leading company has decided to bring about certain changes in its product design for which the time estimates are as follows. Estimate the time it would take to get the new design implemented. The activity precedence detail is: Activity number Activity number
must finish before 1 2 3 4 5,6 7 8 8 9,10 can start 3 4 5 6 7 8 9 10 11
CPM has
Single estimate of activity time Deterministic activity times
Illustration 1 (Contd.)
Activity No. 1 2 3 4 5 6 7 8 9 10 11 Activity Redesign Product Redesign Packaging Order & receive component for redesigned product Order & receive component for redesigned packaging Assemble Product Make up packaging Package redesign product Test Market redesigned product Revise redesigned product Revise redesigned packaging Present result to Board Time (in Weeks) 6 2 3 2 4 1 1 6 3 1 1 1 12 2 4
Illustration 2
The time estimates for completing the plant construction project is as shown.
Determine the critical path. How much slack time is available in the non critical path?
3 5 6
4 6
3/13/2012
Illustration 3
Cost (Rs.) 10,000 14,000 5,000 4,000 7,000 8,000 5,000 8,000 Normal Crash Normal Crash
Illustration 4
A company received an order from a reputed customer.
As per the contract, from the day 15th the company will have to pay a penalty of Rs. 10 per day until job is completed. Indirect project costs per day is Rs. 200. The data on direct cost and activities are as follows.
Activity A B C D E F G H 4 7 5 6 3 11 4 3
Illustration 4 (Contd.)
Normal Time Normal Cost Crash time 1000 1400 2000 1200 900 2500 800 300 3 4 4 5 2 6 3 1 Crash cost Immediate Predecessor 1300 None 2000 None 2700 None 1400 A 1100 B 4000 C 1500 D, E 500 F, G
Draw project network diagram. What completion date would you recommend? Compute project cost after crashing.