# PMT 3.2 Assignment: Week 3 Exercises

Use the attached spreadsheet template to complete the assignment.  Click on each of the tabs in the template to view each of the exercises.

Thanks

## Ch 9 Ex 1

 PMT472 3.2 ASSIGNMENT: WEEK 3 EXERCISES CH. 9 EXERCISE 1 Use the following information to compress one time unit per move using the least-cost method. Reduce the schedule until you reach the crash point of the network. For each move identify what activity or activities were crashed and the adjusted total direct cost. Note: The correct normal project duration, critical path, and total direct cost are provided. The crash cost is how much extra it will cost to crash the activity per time unit reduced. The maximum crash time is how many time units the activity can be reduced by. E.g. Activity D can be reduced by 2 time units down to 1 time unit for a total additional cost of \$120. Activity Crash Cost (slope) Maximum Crash Time Normal Time Normal Cost A \$50 1 3 \$150 B \$100 1 3 \$100 C \$60 2 4 \$200 D \$60 2 3 \$200 E \$70 1 4 \$200 F \$0 0 1 \$150 Crash Round 1 B D What was crashed: Activity A was reduced by 1 day (or time unit) from 3 days to 2 days. 3 3 Adjusted total direct cost: \$1,050 A F The cheapest activity to reduce is A so we reduce it by its maximum reduction of one time unit to two time units. The A-C-E-F path remains critical at 11 time units and direct costs go up to \$1,050 since it cost \$50 to crash A. 2 1 C E 4 4 Crash Round 2 B D What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A F C E Crash Round 3 B D What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A F C E Crash Round 4 B D What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A F C E

## Ch 9 Ex 2

 PMT472 3.2 ASSIGNMENT: WEEK 3 EXERCISES CH. 9 EXERCISE 2 Use the following information contained below to compress one time unit per move using the least-cost method.* Reduce the schedule until you reach the crash point of the network. For each move identify what activity or activities were crashed and the adjusted total direct cost. Note: Choose B instead of C and E (equal costs) because it is usually smarter to crash early rather than late AND one activity instead of two activities. Activity Crash Cost (slope) Maximum Crash Time Normal Time Normal Cost A \$0 2 \$150 B \$100 1 3 \$100 C \$50 2 6 \$200 D \$40 1 4 \$200 E \$50 1 3 \$200 F \$0 0 1 \$150 Crash Round 1 C What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A B F D E Crash Round 2 C What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A B F D E Crash Round 3 C What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A B F D E

## Ch 9 Ex 3

 PMT472 3.2 ASSIGNMENT: WEEK 3 EXERCISES CH. 9 EXERCISE 3 Use the following information to compress one time unit per move using the least-cost method. Reduce the schedule until you reach the crash point of the network. For each move identify what activity or activities were crashed and the adjusted total direct cost. Activity Crash Cost (slope) Maximum Crash Time Normal Time Normal Cost A \$100 1 2 \$150 B \$80 1 3 \$100 C \$60 1 2 \$200 D \$40 1 5 \$200 E \$40 2 5 \$200 F \$40 2 3 \$150 G \$20 1 5 \$200 H \$0 0 1 \$200 Crash Round 1 C F What was crashed: (Enter response) B Adjusted total direct cost: (Enter response) A H D G E Crash Round 2 C F What was crashed: (Enter response) B Adjusted total direct cost: (Enter response) A H D G E Crash Round 3 C F What was crashed: (Enter response) B Adjusted total direct cost: (Enter response) A H D G E Crash Round 4 C F What was crashed: (Enter response) B Adjusted total direct cost: (Enter response) A H D G E

## Ch 9 Ex 4

 PMT472 3.2 ASSIGNMENT: WEEK 3 EXERCISES CH. 9 EXERCISE 4 Given the data and information that follow, compute the total direct cost for each project duration. If the indirect costs for each project duration are \$90 (15 time units), \$70 (14), \$50 (13), \$40 (12), and \$30 (11), compute the total project cost for each duration. NOTE: Total project cost = total direct cost + indirect cost. Activity Crash Cost (slope) Maximum Crash Time Normal Time Normal Cost A \$30 1 5 \$50 B \$60 2 3 \$60 C \$0 0 4 \$70 D \$10 1 2 \$50 E \$60 3 5 \$100 F \$100 1 2 \$90 G \$30 1 5 \$50 H \$0 0 2 \$60 I \$200 1 3 \$200 Crash Round 1 C F What was crashed: (Enter response) A Adjusted total direct cost: (Enter response) Indirect cost (given): (Enter response) D G I Adjusted total project cost: (Enter response) B E H Crash Round 2 C F What was crashed: (Enter response) A Adjusted total direct cost: (Enter response) Indirect cost (given): (Enter response) D G I Adjusted total project cost: (Enter response) B E H Crash Round 3 C F What was crashed: (Enter response) A Adjusted total direct cost: (Enter response) Indirect cost (given): (Enter response) D G I Adjusted total project cost: (Enter response) B E H Crash Round 4 C F What was crashed: (Enter response) A Adjusted total direct cost: (Enter response) Indirect cost (given): (Enter response) D G I Adjusted total project cost: (Enter response) B E H What is the optimum cost-time schedule for the project? What is this cost? (Enter response)

## Ch 9 Ex 5

 PMT472 3.2 ASSIGNMENT: WEEK 3 EXERCISES CH. 9 EXERCISE 5 Use the following information to compress one time unit per move using the least-cost method. Assume the total indirect cost for the project is \$700 and there is a savings of \$50 per time unit reduced. Record the total direct, indirect, and project costs for each duration. Activity Crash Cost (slope) Maximum Crash Time Normal Time Normal Cost A 0 2 \$100 B \$100 1 3 \$200 C \$40 1 5 \$200 D \$60 2 3 \$200 E \$20 1 5 \$200 F \$40 1 4 \$150 G \$0 0 2 \$150 Crash Round 1 B D What was crashed: (Enter response) Adjusted total direct cost: (Enter response) Adjusted total indirect cost: (Enter response) A E G Adjusted total project cost: (Enter response) C F Crash Round 2 B D What was crashed: (Enter response) Adjusted total direct cost: (Enter response) Adjusted total indirect cost: (Enter response) A E G Adjusted total project cost: (Enter response) C F What is the optimum cost-time schedule for the project? What is this cost? (Enter response)

## Ch 9 Ex 7

Total Project Cost Breakdown

Total Direct Cost Total Indirect Cost Total Project Cost

Duration

Cost

## Ch 9 Ex 8

 PMT472 3.2 ASSIGNMENT: WEEK 3 EXERCISES CH. 9 EXERCISE 8 Use the following information to compress one time unit per move using the least-cost method.* Reduce the schedule until you reach the crash point of the network. For each move identify what activity or activities were crashed and the adjusted total cost, and explain your choice if you have to choose between activities that cost the same. The indirect cost for each duration is \$1,500 for 17 weeks, \$1,450 for 16 weeks, \$1,400 for 15 weeks, \$1,350 for 14 weeks, \$1,300 for 13 weeks, and \$1,250 for 12 weeks. Activity Crash Cost (slope) Maximum Crash Time Normal Time Normal Cost A \$0 0 3 \$150 B \$100 1 4 \$200 C \$60 1 3 \$250 D \$40 1 4 \$200 E \$0 0 2 \$250 F \$30 2 3 \$200 G \$20 1 2 \$250 H \$60 2 4 \$300 I \$200 1 2 \$200 Crash Round 1 B F G What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A D I Indirect cost (given): (Enter response) Adjusted total project cost: (Enter response) C E H Crash Round 2 B F G What was crashed: (Enter response) Adjusted total direct cost: (Enter response) A D I Indirect cost (given): (Enter response) Adjusted total project cost: (Enter response) C E H What is the optimum cost-time schedule for the project? What is this cost? (Enter response)