Network of the project along with their normal time mentioned within “()” as follows:
|B (8)||D (7)|
|C (10)||E (10)|
Early start / Late start/ Early finish / Late Finish for each activity as follows:
|Activity||Early Start||Early Finish||Late Start||Late finish|
Determination of critical activity:
Duration of activity A – D – E: 27 weeks
Duration of activity A – B – C: 28 weeks
Since F can start after completion of activity C as well as activity E and since C completes later than E,
The Critical path will be: A – B – C – F with duration of critical path = 28 + 3 = 31 weeks
Therefore, expected project completion time = 31 weeks
Overall budgeted cost for the project:
|Activity||Normal Cost (GBP ‘000)|
|Total Cost (i.e. sum of Normal costs of all activities):||400|
Therefore, total budgeted cost for the project = GBP 400,000
Crashing decision to complete the project within 26 weeks at least cost :
Completion of project within 26 weeks means reducing project duration by 31 – 26 = 5 weeks which will be done in following manner:
|Activity||Reduction of duration by||Crashing cost ( GBP ‘000)|
|Total Crashing Cost ( Sum of all Crashing costs )||70|
Revised Project cost
= Total budgeted cost of the project + Total crashing cost
= GBP 400,000 + GBP 70,000
= GBP 470,000
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