6.

A project has activities with the following normal and crash times and cost:

Activity Prerequisites Normal Crash Time Normal Crash Cost

Time (Months) Cost (Birr) (Birr)
(Months)
A - 4 3 7.000.00 8,000.00
B A 5 3 15,000.00 19,000.00
C A 4 3 10,000.00 11,000.00
D B 6 5 32,0000.00 33,000.00
E C 6 4 40.000.00 42.000.00
F D 5 4 15,000.00 16,000.00
G E 7 4 63.000.00 70,000.00
H G 4 3 2.000.00 5,000.00

Determine a crashing scheme for the above project so that the total project time is
reduced by 3 months.
Solution
We have the following network diagram for the given project with normal costs:

Path I

Time = 4 + 5 + 6 + 5 = 20 Month
Path II
Time = 4 + 5 + 6 + 5 + 5 = 25 Month

Therefore Path II is the critical path and the critical activities are A, C, E, G and H.
The non-critical activities are B, D and F.

Given that the normal time of activity A is 4 month while its crash time is 3 month.
Hence the time of this activity can be reduced by one months if the management is
prepared to spend an additional amount. However, the time cannot be reduced by
more than one week even if the management may be prepared to spend more money.
The normal cost of this activity is 7000 Birr whereas the crash cost is 8000 Birr. From
this, we see that crashing of activity A by one week will cost the management an extra
amount of 1000 Birr. In a similar fashion, we can work out the crash cost per unit
time for the other activities also. The results are provided in the following table.

Activity Normal Crash Normal Crash Crash Normal Crash

Time Time Cost Cost Cost - Time - Cost
Normal Crash per
Cost Time unit
time
A 4 3 7.000.00 8,000.00 1000 1 1000
B 5 3 15,000.00 19,000.00 4000 2 2000
C 4 3 10,000.00 11,000.00 1000 1 1000
D 6 5 32,000.00 33,000.00 1000 1 1000
E 6 4 40.000.00 42.000.00 2000 2 1000
F 5 4 15,000.00 16,000.00 1000 1 1000
G 7 4 63.000.00 70,000.00 7000 3 2333.3
H 4 3 2.000.00 5,000.00 3000 1 3000

A non-critical activity can be delayed without delaying the execution of the whole
project. But, if a critical activity is delayed, it will delay the whole project. Because of
this reason, we have to select a critical activity for crashing. Here we have to choose
one of the activities A, C, E, G and H The crash cost per unit time works out as
follows:
1,000 - A 1,000 - C
1,000 - E 6,000 - G
3,000 - H
The maximum among them is 1,000 Birr. So we have to choose an activity with 1,000
Birr as the crash cost per unit time. However, there is a tie among A, C and E. The tie
can be resolved arbitrarily. Let us select A for crashing. We reduce the time of A by
one month by spending an extra amount of 1,000 Birr.
After this step, we have the following network with the revised times for the activities:

The revised time for Path I = 3 + 5 + 6 + 5 = 19 month.

The time for Path II = 3 + 4 + 6 + 7 + 4 = 24 month.
Maximum of {19, 24} = 24.

Therefore Path II is the critical path and the critical activities are A, C, E, G and H.
However, the time for A cannot be reduced further. Therefore, we have to consider C,
E, G and H for crashing. Among them, C and E have the least crash cost per unit time.
The tie between C and E can be resolved arbitrarily. Suppose we reduce the time of C
by one month with an extra cost of 1,000 Birr.
After this step, we have the following network with the revised times for the activities:

The time for Path I = 3 + 5 + 6 + 5 = 19 Month.

The time for Path II = 3 + 3 + 6 + 7 + 4 = 23 Month.
Maximum of {19, 23} = 23.
Therefore Path II is the critical path and the critical activities are A, C, E, G and H.
Now the time for A or C cannot be reduced further. Therefore, we have to consider E,
G and H for crashing. Among them, E has the least crash cost per unit time. Hence we
reduce the time of E by one month with an extra cost of 1,000 Birr.

By the given condition, we have to reduce the project time by 3 month. Since this has
been accomplished, we stop with this step.
Result: We have arrived at the following crashing scheme for the given project:
Reduce the time of A, C and E by one month each.
Project time after crashing is 22 month.
Extra amount required = 1,000 + 1,000 + 1,000 = 3,000 Birr.

7.
A company research and development manager has planned a list of activities
culminating in the inaugurate launch of the new products which are recently
developed by the department. The list of the activities of the schedule with the their
corresponding time requirement and logical relationship has been given in the
following Table.

Activity Pessimistic Most likely Optimistic Predecessor

time (Days) time (Days) Time (Days)
A 20 10 5 -
B 12 7 5 -
C 12 10 8 A
D 40 20 6 C
E 90 60 30 D
F 14 10 7 D
G 50 30 20 C
H 12 10 8 E,F,G
I 6 4 3 B
J 1 1 1 H,I
a. Draw the network diagram
b. Determine the Total Float time for each activities

c. Determine the critical activities and the critical path of the network

d. Determine the total completion time

e. What is the probability that the Research and Development Manager will be able to
complete the language launch within 80 days’ time?
Solution
Activity Pessimistic Most likely Optimistic Expected Variance
time (Days) time (Days) Time Time
(Days) (Days)
A 20 10 5 10.83 6.25
B 12 7 5 7.5 1.36
C 12 10 8 10 0.44
D 40 20 6 21 36
E 90 60 30 60 100
F 14 10 7 10.17 1.36
G 50 30 20 31.7 25
H 12 10 8 10 0.44
I 6 4 3 4.17 0.25
J 1 1 1 1 0

For A
(to + 4tl + tp )
te =
6
(5 + 4(10) + 20) 65
te = = = 10.83
6 6
�� − �� 2
2
� =
6
2 2
20 − 5 15
�2 = = = 6.25
6 6
We will use the same formula for the rest the activities to fill the table.
A.

B.
E1=0 L1=0 E2=10.83 L2=10.83 E3=7.5 L3=107.66
E4=20.83 L4=20.83 E5=41.83 L5=41.83 E6=101.83 L6=101.83
E7=52 L7=101.83 E8=52.53 L8=101.83 E9=111.83 L9=111.83
E10=11.67 L10=111.83 E11=112.83 L11=112.83

Total float time (Tf) = (Latest start - Earliest start)

Tf = Ls - Es
For A Tf = L2 - E2 = 10.83 - 10.83 = 0
For B Tf = 107.66 - 7.5 = 100.16
For C Tf = 0 For D Tf = 0 For E Tf = 0
For F Tf = 49.83 For G Tf = 49.3 For H Tf = 0
For I Tf = 100.16 For J Tf = 0
C. The critical path is
1 2 4 5 6 9 11

And the critical activities are A,C,D,E,H and J

D.
Total completion time is the sum of all the critical activities
Total completion time = 10.83 + 10 + 21 + 60 + 10 +1 = 112.83 days
E.
�� = �� + �2�� �1 = 0
�2 = �1 + �212 = 0 + 6.25 = 6.25
�3 = �1 + �213 = 0 + 1.36 = 1.36
�4 = 6.69 �5 = 42.69 �6 = 142.69 �7 = 44.05 �8 = 31.69
�9 = �6 + �269 = 142.69 + 0.44 = 143.13
�9 = �7 + �279 = 44.05 + 0.44 = 44.49
�9 = �8 + �289 = 31.69 + 0.44 = 32.13
�10 = 1.61
�11 = �9 + �2911 = 143.3 + 0 = 143.3

Completion time 112.83

Variance 143.3
80−112.83
[P≤80] = � ≤ 143.3

= z ≤ -2.743
= 0.0317 = 3.17％