If the project must be completed in 53 days, what would be the total cost of the
ID: 459223 • Letter: I
Question
If the project must be completed in 53 days, what would be the total cost of the project?
A. $193,000
B. $8,000
C. $185,000
D. $2,000
For the crashing data provided, assume steps are taken to complete the project in 52 days, but the manager decides project time must be shortened one more day. Which task(s) must be crashed to lower project time from 52 days to 51 days?
A. Task A 3 days and Task F 3 days
B. Task A 1 Day
C. Task H 2 days
D. Task H 1 day
(untitled) Solution
Project time
Period cost
Cumulative cost
A
B
C
D
E
F
G
H
I
J
K
59
0
0
58
1000
1000
1
57
1000
2000
2
56
1000
3000
3
55
1666.67
4666.67
1
3
54
1666.67
6333.33
2
3
53
1666.67
8000
3
3
52
2000
10000
3
3
1
51
2000
12000
3
3
2
50
3666.67
15666.67
3
1
3
2
49
3666.67
19333.33
3
2
3
2
48
3666.67
23000
3
3
3
2
47
4000
27000
3
3
3
2
1
46
4000
31000
3
3
3
2
1
1
(untitled) Solution
Activity
Normal time
Crash time
Normal Cost
Crash Cost
Crash cost/pd
Crash by
Crashing cost
Project
59
46
A
15
12
15000
20000
1666.67
3
5000
B
9
6
18000
26000
2666.67
0
0
C
13
10
29000
40000
3666.67
3
11000
D
10
8
10000
12000
1000
0
0
E
8
5
20000
30000
3333.33
0
0
F
9
6
12000
15000
1000
3
3000
G
4
1
20000
24000
1333.33
0
0
H
12
10
36000
40000
2000
2
4000
I
10
7
5000
8000
1000
0
0
J
6
5
4000
8000
4000
1
4000
K
4
3
16000
20000
4000
1
4000
TOTALS
185000
31000
(untitled) Solution
Project time
Period cost
Cumulative cost
A
B
C
D
E
F
G
H
I
J
K
59
0
0
58
1000
1000
1
57
1000
2000
2
56
1000
3000
3
55
1666.67
4666.67
1
3
54
1666.67
6333.33
2
3
53
1666.67
8000
3
3
52
2000
10000
3
3
1
51
2000
12000
3
3
2
50
3666.67
15666.67
3
1
3
2
49
3666.67
19333.33
3
2
3
2
48
3666.67
23000
3
3
3
2
47
4000
27000
3
3
3
2
1
46
4000
31000
3
3
3
2
1
1
Explanation / Answer
Let's look into the 2nd table, that gives cost details for the
project. In normal time, project can be completed in 59 days, with a
total cost of 185000. As the requirement in the 1st part is to
complete project in 53 days, project needs to be crashed by 6 days.
Based on cost of crash per day, activities are picked for crashing. In
current case, least cost of crash per day is 1000. Available days in
that category are 3 days, as mentioned in crash days column.
Hence activity F is crashed by 3 days, with an incurring cost of 3*1000 = 3000.
Next least cost of crash is for activity G, with 1333.33 per day, but
there are no days available for crash.
Next least cost of crash is 1666.67 for activity A, with 3 days
available. so cost is 1666.67*3 = 5000.
Hence total 6 days crash costs 3000+5000 = 8000.
Final cost to complete project in 53 days is 185000+8000 = 193000. Option A.
Now, if project has to be completed in 52 days, next activity with
least cost of crash is H, with cost per day as 2000.
hence for project to be completed in 52 days, additional cost of 2000
is incurred means, 193000+2000 = 195000.
For 51 days, it is one more day crash for activity H, means another
2000 additional cost.
Total cost = 195000+2000 = 197000, for 51 day completion.