Assignment 8

Budget for the project and cost of each activity are presented in Table 1

Table 1
Normal Crash
Normal Crash Crash
Activity Description time cost per
Cost time Cost
(days) day
Determine how
many dental
A cabinets will be at 1 150 1 150
clinic, identify the
target audience. 0
Analyze market,
B collect info about 10 1000 8 1200
competitors. 100
Find the realtor for
buy/rent building in
C 2 300 2 400
the determined
place. 0
D Find lawyer 2 100 2 100 0
Prepare all
E documents are 8 1500 7 1600
needed 100
Get all certificates
F 30 1500 20 1800
that’s required. 30
Get consultation
from dental doctor
G (other owner or with 4 200 4 200
experience 10-15
years). 0
I Find engineer 4 100 3 120 20
H Buy/Lease premises. 20 40000 16 45000 1250
Consultation with
J 4 100 3 150
engineer 50
Create engineering
K 7 400 6 500
plan of the DC 100
Create a list of the
necessary
equipment,
L 5 100 4 140
materials and
specialists for
building 40
M Repairs the building 20 6000 17 7000 333
Provide systems into
and inside the
N 5 10000 4 11000
building (electricity,
water ets) 1000
Provide fire
O 5 5000 5 5000
protecting systems 0
 Prepare parking
P 10 3000 10 3000
zone for trucks 0
Provide Internet at
U the DC, install 2 200 2 200
technologies systems 0
Checking all systems
W 1 100 1 100
and equipment. 0
X Opening 1 500 1 500 0
TOTA
81 70050
L
Critical path: START-A-B-C-H-J-K-L-M-P-W-X-FINISH
Project completion time: 81days

Critical path method (CPM) is a project management technique that uses only
one-time factor per activity.
The critical path is the longest distance between the start and the finish of your
project, including all the tasks, their duration, which gives you a clear picture of
the project’s actual schedule.

2) Project crashing to 78 and 73 days.

For calculation project crashing I will use Critical path method. Critical path
method (CPM) is a project management technique that uses only one-time factor
per activity.
The critical path is the longest distance between the start and the finish of your
project, including all the tasks, their duration, which gives you a clear picture of
the project’s actual schedule.
In this project we should find reducing cost to 78 and 73 days.

Crash to 78 days:
Engineer should decry activities from critical path with minimal crash cost per day.
Reducing 3 days would cost: 1*40(L)+1*50(J)+1*100(B) = $190

Crash to 73 days:

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Reducing 8 days would cost: 1*40(L)+1*50(J)+2*100(B)+1*100(K)+3*333(M) =
$1389
The AON network diagrams for new crash dates are represented below:

Diagram 1 – Crash to 78 days

Diagram 2 – Crash to 73 days

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