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Project Management - Crashing

The document discusses crashing the activities of a project to reduce its duration. Crashing all activities results in a total cost of $7,200 including bonuses for early completion, or $6,575 excluding bonuses. Crashing activities B, D, E, F and G allows completing the project 5 days early, earning a $625 bonus but increasing costs by $5,125 to a total of $7,200. The optimal solution crashes only activity E, shortening the project by 1 day to earn a $125 bonus while increasing costs to only $2,500.

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641 views9 pages

Project Management - Crashing

The document discusses crashing the activities of a project to reduce its duration. Crashing all activities results in a total cost of $7,200 including bonuses for early completion, or $6,575 excluding bonuses. Crashing activities B, D, E, F and G allows completing the project 5 days early, earning a $625 bonus but increasing costs by $5,125 to a total of $7,200. The optimal solution crashes only activity E, shortening the project by 1 day to earn a $125 bonus while increasing costs to only $2,500.

Uploaded by

zaephaer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Assignment 2 – Project Crashing

Questions:

1. Perform the activities crashing until it can no longer be crashed. What is the total cost?
Answer:

The total cost after all the activities have been crashed is $7,200.00 (including finished early bonuses) or $6,575.00 (excluding finished early

bonuses).

Note: Both methods produced the same result (please refer to the attachment below)

2. If there is a bonus of $125 per day for finishing early, what activities would be crashed, and how fast would the project be completed?
Answer:

Activities B, D, E, F, G are the activities that can be crashed. This project can be finished 5 days earlier to 20 days from the expected project

duration, which is 25 days. The total finished early bonuses earned is at $625.00 (5 days x $125.00). However, by crashing the whole project, the

overall cost of the project will increase by $5,125 from $2,075 to $7,200 which is an increase of nearly 247%.

In my opinion, cost increment for project crashing that is too high which is over 200%, is not viable to proceed, entirely. The most acceptable

cost and the number of days shorten is only for 1 day, which in activity E (from initial 3 days to 2 days duration), with the crash cost of $300 and

shorten the entire project to 24 days. The overall project will cost $2,500 including $125 for 1 day finished early bonus.

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Assignment 2 – Project Crashing

METHOD 1A

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Assignment 2 – Project Crashing

METHOD 1A (CONTINUED)

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Assignment 2 – Project Crashing

METHOD 1B

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Assignment 2 – Project Crashing

METHOD 1B (CONTINUED)

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Assignment 2 – Project Crashing

METHOD 1B (CONTINUED)

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Assignment 2 – Project Crashing

METHOD 2

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Assignment 2 – Project Crashing

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Assignment 2 – Project Crashing

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