Three Critical Path Activities Are Candidates for Crashing on a CPM

question 105

Essay

Three critical path activities are candidates for crashing on a CPM network. Activity details are in the table below.
$$\begin{array} { | c | c | c | c | c | } \hline \text { Activity } & \text { Normal Time } & \text { Normal Cost } & \begin{array} { c } \text { Crash } \\\text { Duration }\end{array} & \text { Crash Cost } \\\hline \mathrm { X } & 8 \text { days } & \$ 6,000 & 6 \text { days } & \$ 8,000 \\\hline \mathrm { Y } & 3 \text { days } & \$ 1,800 & 2 \text { days } & \$ 2,400 \\\hline \mathrm { Z } & 12 \text { days } & \$ 5,000 & 9 \text { days } & \$ 7,700 \\\hline\end{array}$$
a. What is the crash cost per unit time for each of the three activities?
b. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost?
c. Which activity should be the next activity crashed to cut a second day from the project's duration; how much is added to project cost?

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Definitions:

Economic Wants

The desires of individuals or societies for goods and services that provide utility and satisfaction, exceeding the basic needs for survival.

Economic Means

The methods or tools employed to allocate and utilize resources efficiently in the production, distribution, and consumption of goods and services.

Rational Allocate

The process of distributing resources or effort in a way that maximizes the achievement of objectives, based on logical reasoning.

Normative Statement

Statements that express opinions, values, or prescriptions for how the world should be, rather than stating facts.