What project duration will minimize project cost

Assignment Help Project Management

Reference no: EM1343423

Bob Summers, CEO of Summer Construction has an opportunity to bid on a contract that pays $5500 upon completion, but the contract calls for a late performance penalty of $140 per week for each week that the project is delayed beyond eight weeks.

Activity Normal Time Normal Cost Crash Time Crash Cost Immediate Predecessors
A 1 $300 1 $300 -
B 3 $400 1 $470 A
C 2 $350 1 $550 A
D 5 $550 4 $675 A
E 4 $300 3 $375 C
F 2 $450 1 $500 C
G 7 $425 5 $525 C
H 4 $525 2 $625 B,E
I 3 $250 1 $330 D,F
J 1 $300 1 $300 H,G,I

A. Find the crash cost per week for each activity and record the results in the crash table in the
table. What are the total normal costs for the project?

B. Which activity would you recommend that Hank crash first, if any?

C. What project duration will minimize project cost?

D. What is the maximum profit that Summers can attain for this project?

Reference no: EM1343423

Questions Cloud

Project analysis - explain : For evaluating the new equipment, would you please describe whether the following cash flows should be included in the analysis.

Explain about project evaluation : If IRR is 15 would you please tell me how to find out the maximum price that the company would be willing to pay for the new equipment? Ignore taxes.

Prepare a country risk analysis paper : A manufacturing organization considering expansion to India or Brazil - Country Risk Analysis paper

Work schedule for senior lunches project : What more would happen other than preparing menus, making lunch, delivery of food, serving and billing?

What project duration will minimize project cost : What project duration will minimize project cost and what is the maximum profit that Summers can attain for this project?

Project analysis : Project Analysis explained in this solution and describe why each of the following may or may not be a project

Show the issue of us health care labor shortages : Show the issue of US health care labor shortages, socio-demographics changes (e.g. aging of America), and their impact on access to quality care.

Auto plant operations management : Show your thoughts about the unique staffing, training, and motivational challenges that may be encountered within the typical production operation.

Contemporary planning techniques reccomendation : Describe why the technique that would not work within your workplace and what steps would you recommend your manager to take to plan in his decision making

User Account

All Pages