Question

# All information needed to solve this problem is present Problem 9-24 (Algorithmic) Office Automation, Inc., developed...

All information needed to solve this problem is present

Problem 9-24 (Algorithmic)

Office Automation, Inc., developed a proposal for introducing a new computerized office system that will standardize the electronic archiving of invoices for a particular company. Contained in the proposal is a list of activities that must be accomplished to complete the new office system project. Use the following relevant information about the activities:

 Immediate Time (weeks) Cost (\$1000s) Activity Description Predecessor(s) Normal Crash Normal Crash A Plan needs — 9 8 30 50 B Order equipment A 8 6 120 150 C Install equipment B 10 7 100 160 D Set up training lab A 7 6 40 50 E Conduct training course D 10 8 50 75 F Test system C, E 3 3 60 —
1. Which project network is correct?
 (i) (ii) (iii) (iv)
2. Develop an activity schedule. If your answer is zero, enter “0”.
 Earliest Latest Earliest Latest Critical Activity Start Start Finish Finish Slack Activity (Yes or No) A B C D E F
3. What are the critical activities, and what is the expected project completion time?

Critical Path:

Expected project completion time = _____ weeks.
4. Assume that the company wants to complete the project in six months or 26 weeks. What crashing decisions do you recommend to meet the desired completion time at the least possible cost? Work through the network and attempt to make the crashing decisions by inspection.
 Crash Activities Number of Weeks Cost (\$1000s) A 1 B 2 C 1 D 1 E 1
5. Develop an activity schedule for the crashed project. If your answer is zero, enter “0”.
 Earliest Latest Earliest Latest Critical Activity Start Start Finish Finish Slack Activity (yes or no) A B C D E F
6. What added project cost is required to meet the six-month completion time?

Total added cost due to crashing \$  _______.

Project Schedule

Activity EST LST EFT LFT Slack Critical Activity(Yes/No)

A 0 0 9 9 0 Yes

B 9 9 17 17 0 Yes

C 17 17 27 27 0 Yes

D 9 10 16 17 1 No

E 27 27 30 30 0 Yes

Critical Path is A-B-C-F

Total Project Completion Time is = 9+8+10+3=30 weeks

Cost Slope is:-

A (50-30/)/1 = 20 per day

B (150-120)/2= 15 per day

C (160-100)/3 =20 per day

D (50-40)/1 = 10 per day

E (75-50)/2 =12.5 per day

F -

Crashing Activity

1. First crash common activity A by 1 day

2. Then crash common activity F by 2 days

3. then crash B by 1 day.

Project Schedule(Revised)

Activity EST LST EFT LFT Slack Critical Activity(Yes/No)

A 0 0 8 8 0 Yes

B 8 8 15 15 0 Yes

C 15 15 25 25 0 Yes

D 8 8 15 15 0 Yes

E 15 15 25 25 0 Yes

F 25 25 26 26 0 Yes

Revised Schedule=26 days

Total added cost of project= Crashing 1+2+3

= \$ 20+\$25+\$15

= \$60

#### Earn Coins

Coins can be redeemed for fabulous gifts.