Question

Swimming Pool Installation:

You are the project manager working for Mack's Pool Co. Your project consists of installing a new swimming pool at the local country club before Memorial Day weekend (pool opening weekend). You would like to find the minimum cost schedule for your project. There is a $9,000 per week penalty for each week the project is delayed beyond week 9. In addition, your project team determined that indirect costs are $15,000 per week.

ACTIVITY	Immediate Predecessor (s)	NORMAL TIME (NT)	CRASH TIME (CT)	Normal Cost (NC)	Crash Cost (CC)
A	--	2	1	7,000	10,000
B	--	2	2	3,000	3,000
C	A	3	1	12,000	40,000
D	B	3	2	12,000	28,000
E	C	1	1	8,000	8,000
F	D, E	5	3	5,000	15,000
G	E	3	2	9,000	18,000

A. Before crashing, the project duration is _________ week(s).

B. Swimming Pool Installation: The total cost of the project if we do nothing is $ __________ (round to the nearest dollar).

C. Swimming Pool Installation:  The minimum cost schedule is ________ week(s) (enter response as integer) .

D. Swimming Pool Installation:  The minimum cost schedule resulted in saving $________________ (enter response as integer).

Answer 1

Since we needs to analyse the project cost and duration we draw the project network diagram as below;diagram drawn on the assemption that activity A & B are started from a basic step and the project is complting with Activity G

Normal Time and Crash Time Shown Seperatly

Answres

A. Before Crashing Project duration is 9 weeks( A+C+E+G)(2+3+1+3=9)

B. Total cost with normai time will be $171000 (A+C+E+G Plus Indirect cost of 15000 Per hour)(7000+12000+8000+9000+(15000*9)=171000)

C. 5 Weeks since using crash time the critical path will resoulting 5 weeks time(A+C+E+G) ( 1+1+1+2)

B. Minimum Schedule will save $ 46000