2 Scott Corey CPAs The Scott Corey accounting firm is installing a new computer system. Several things must be done tomake sure the system works properly before all theaccounts are put into the new system.The following table provides information about thisproject:
3 Immediate Predecessor Scott Corey CPAsActivityImmediate PredecessorTime ( Weeks )A-3B4C6D2E5FGD,EHF,G
4 Scott Corey CPAs REQUIREMENT: How long will it take to install the system?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 projectwas put together and is shown in the following table:
6 Scott Corey CPAs Activity Immediate Predecessor Normal Time ( weeks ) CrashCost( $ )A-328,0009,800B49,00010,000C612,00015,000D115,500E55,0008,700F7,500GD,E9,400HF,G6,600
7 Scott Corey CPAs REQUIREMENT: If the project is to be finished in 16 weeks, whichactivity or activities should be crashed to do thisat the least additional cost?What is the total cost of this?List all the paths in this network. After the crash-ing has been done, what is the time required foreach path?
8 Scott Corey CPAs REQUIREMENTS: If the project completion time must be reducedanother 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 activitythat is not the least cost for crashing if itis on several paths rather than to crashseveral activities on separate paths whenthere 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-HCrash activity “G” one week at an additional costof $700.00The paths are A-E-G-H, A-C-F-H, and B-D-G-H.When “G” is crashed by 1 week, the projectcompletion time is reduced to 16 weeks.