Schedule and Cost Control

Assignment 2
ITM-130-75

Submitted By Submitted To
Arif Abdullah Azmi (A00099008) Sheikh Moeen Akhtar
Table of Contents
Question 1...................................................................................................................................................3
1. What is the duration of the critical path?........................................................................................3
2. What is the float of activity 3?.........................................................................................................3
3. What is the float of activity 2?.........................................................................................................4
4. What is the float of the path with the longest float?.......................................................................4
5. The resource working on activity 3 is replaced with another resource who is less experienced.
The activity will now take 10 weeks. How will this affect the project?....................................................4
6. Using the original information, after some arguing between stakeholders, a new activity 6 is
added to the project. It will take 11 weeks to complete and must be completed before activity 5 and
after activity 3. Management is concerned that adding the activity will add 11 weeks to the project.
Another stakeholder argues the time will be less than 11 weeks. Who is correct?.................................4
7. Based on the information in number 6 above, how much longer will the project take?.................4
Question 2...................................................................................................................................................5
1. Imagine that this project has a project float of -3 (minus three) months. Which activity or
activities presented above would you crash to save three months on the project, assuming that the
activities listed above represent critical path activities?.........................................................................5
2. How much would it cost to crash this project?................................................................................5

2
Question 1

Draw a network diagram and answer the questions below:

 Activity 1 can start immediately and has an estimated duration of three weeks.
 Activity 2 can start after activity 1 is completed and has an estimated duration of three weeks.
 Activity 3 can start after activity 1 is completed and has an estimated duration of six weeks.
 Activity 4 can start after activity 2 is completed and has an estimated duration of eight weeks.
 Activity 5 can start after activity 4 is completed and after activity 3 is completed. This activity
takes four weeks.

3 3 8

START ACTIVITY 1 ACTIVITY 2 ACTIVITY 4

FINISH
ACTIVITY 5
6 11

ACTIVITY 3 ACTIVITY 6

1. What is the duration of the critical path?

Start, Activity 1, Activity 2, Activity 4, Activity 5, Finish = 18 weeks

2. What is the float of activity 3?

18-13 = 5 weeks

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3. What is the float of activity 2?

4. What is the float of the path with the longest float?

5 weeks

5. The resource working on activity 3 is replaced with another resource who is less
experienced. The activity will now take 10 weeks. How will this affect the project?

New duration of activity 3 = 1 weeks. Since LS = 13 weeks is less than 14 weeks. Therefore this
will not affect the project.

6. Using the original information, after some arguing between stakeholders, a new
activity 6 is added to the project. It will take 11 weeks to complete and must be
completed before activity 5 and after activity 3. Management is concerned that
adding the activity will add 11 weeks to the project. Another stakeholder argues
the time will be less than 11 weeks. Who is correct?

New Critical path is: Start, Activity 1, Activity 3, Activity 6, Finish = 24 weeks.
Old Critical path was 18 weeks.
We are adding 24-18 = 6 weeks.

7. Based on the information in number 6 above, how much longer will the project
take?

The project will take 94-18 = 6 weeks more to complete.

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Question 2

Activity Original Crash Time Original Crash Extra Cost per

Duration Duration Savings Cost in Cost Cost Month
(in (in Dollars
Months) Months)

F 14 12 2 10,000 14,000 4,000 2,000

A 9 8 1 17,000 27,000 10,000 10,000

H 3 2 1 25,000 26,000 1,000 1,000

G 7 5 2 10,000 16,000 6,000 3,000

C 11 8 3 27,000 36,000 9,000 3,000

1. Imagine that this project has a project float of -3 (minus three) months. Which
activity or activities presented above would you crash to save three months on the
project, assuming that the activities listed above represent critical path activities?

Crash 'H' by 1 month since it has the least extra cost per month of $1,000
Crash 'F' by 2 months. The maximum time saving for 'H' was 1 month. So, next move on to the
activity 'F' for it has the next least extra cost per month of $2,000.

Since the float is -3, the project has to be crashed by 3 months to bring it back on track.

Crash 'F' by 2 months which was the maximum time-saving, as it has the next least extra cost
per month of $2,000.

H is the cheapest activity which can be crashed by one month at a cost of 1000. The next
cheapest activity is F which can be crashed by 2 months at a cost of 2000 per month.

2. How much would it cost to crash this project?

Total cost of crashing = 1 month of H * $1,000/ month + 2 months of F * $2,000/ month

= $5,000