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Scott Corey CPAs Project Crashing Homework Solution MGMT E-5050.

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Presentation on theme: "Scott Corey CPAs Project Crashing Homework Solution MGMT E-5050."— Presentation transcript:

1 Scott Corey CPAs Project Crashing Homework Solution MGMT E-5050

2 Scott Corey CPAs The Scott Corey accounting firm is installing a new computer system. Several things must be done to make sure the system works properly before all the accounts are put into the new system. The following table provides information about this project:

3 Scott Corey CPAs Activity Immediate Predecessor Time ( Weeks ) A-3 B-4 CA6 DB2 EA5 FC2 GD,E4 HF,G5

4 Scott Corey CPAs REQUIREMENT: 1.How long will it take to install the system? 2.What is the critical path?

5 Scott Corey CPAs The managing partner of the firm has decided that the system must be up and running in 16 weeks. Consequently, information about crashing the project was put together and is shown in the following table:

6 Scott Corey CPAs Activity Immediate Predecess or Normal Time ( weeks ) Crash Time ( weeks ) Normal Cost ( $ ) Crash Cost ( $ ) A-328,0009,800 B-439,00010,000 CA6412,00015,000 DB21 15,500 EA535,0008,700 FC217,5009,000 GD,E428,0009,400 HF,G535,0006,600

7 Scott Corey CPAs 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?

8 Scott Corey CPAs 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.

9 Homework 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 $  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.

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