5 The following is a table showing details of a project Job

5. The following is a table showing details of a project Job Immediate Normal crash predecessor Time (weeks) Cost (K000) Time Cost (K000) (weeks) None None 20 15 30 20 4 15 15 A.D.C 12 4 Indirect cost is K400 per day. Find the optimum duration and associated minimum cost.

Solution

The precedence diagram is given below :

                         A

                                                                               B

                 C

                      D

                         E

                          F

                                                                                               G

The possible paths and their cumulative normal duration as follows :

A-G = 10 + 12 = 22

B-C-G = 8 + 5 + 12 = 25

B-D-G = 8 + 6 + 12 = 26

B-E-F-G = 8 + 8 +5 + 12 = 33

The maximum duration upto which AG can be crashed = 7 + 8 = 15 days

The maximum duration upto which path B-C-G can be crashed is = 6 +4 + 8 = 18 days

The maximum duration upto which B-D-G can be crashed =6 + 4 + 8 = 18 days

The maximum duration upto which B-E-F-G can be crashed = 6 +5 +3 + 8 = 22 days

Since highest of the above durations is 22 days, optimum duration by which project can be completed is 22 days

Following actions therefore needs to be taken to achieve optimum project duration of 22 days :

Crash B by 2 days from 8 days to 6 days

Crash C by 1 day from 5 days to 4 days

Crash B by 2 days from 8 days to 6 days

Crash D by 2 days from 6 days to 4 days

Crash B by 2 days from 8 days to 6 days

Crash E by 3 days from 8 days to 5 days

Crash F by 2 days from 5 days to 3 days

Costs associated with above action for each activity as follows :

Activity

Cost ( K000)

Type of cost ( Normal / Crash)

A

10

Normal

B

20

Crash

C

14

Crash

D

15

Crash

E

15

Crash

F

8

Crash

G

12

Normal

Sum of above costs ( K000) = 10 + 20 + 4 + 15 + 15 + 8 + 12 = 94 i.e. K94000

Total indirect cost ( @K400 / day for 22 days ) = K8800`

Thus cumulative cost = Sum of above cost + Total Indirect cost = K94000 + K8800 = K102800

OTPIMUM DURATION = 22 DAYS

ASSOCIATED MINIMUM COST = K102800

                         A

                                                                               B

                 C

                      D

                         E

                          F

                                                                                               G

 5. The following is a table showing details of a project Job Immediate Normal crash predecessor Time (weeks) Cost (K000) Time Cost (K000) (weeks) None None 20
 5. The following is a table showing details of a project Job Immediate Normal crash predecessor Time (weeks) Cost (K000) Time Cost (K000) (weeks) None None 20

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