crash reporting

Obtain permit

3 weeks

Prepare Roads

6 weeks

Start

Resurface Road

4 week

Roadside Evaluate 2 weeks

Hire temp resurfacing crew

2 weeks

Critical path in red…

	Activity	Normal Time	Crash Time	Normal Cost	Crash Cost	Crash Cost/Week	Final Cost
A	Obtain permits	3 weeks	2 weeks	$20,000	$32,000	$16,000
B	Evaluate Road	2 weeks	1 week	$10,000	$12,000	$12,000
C	Prepare Road	6 weeks	4 weeks	$100,000	$120,000	$30,000
D	Hire temp resurfacing crew	2 weeks	1 week	$20,000	$25,000	$25,000
E	Resurface road	4 weeks	2 weeks	$200,000	$250,000	$50,000
	Total	17 weeks	10 weeks	$350,000	$439,000		$432,000

a. Calculate the crash cost per week for each activity.

· Number of weeks for each crash is given along with the cost. So in order to determine cost per week, divide the crash cost by the number of weeks to get the weekly cost.

b. Show the sequence of crashing decisions you would make to compress this project most cost effectively. (Recommendation: use the tabular approach, as shown in this chapter.) Calculate total cost. Keep in mind that the penalty is incurred for every week past the end of September, and remember to consider the bonus.

c. Explain your rationale and describe how you would present the options to the Ketchum City Council.

· The duration of the critical path is 13 weeks. Because we are in week 2 of July and we would like to finish by the 3rd week of September….this only leave 9 weeks to finish. I do not see a cost effective way of meeting the deadline with the time remaining. I would recommend the following:

i. Crash A because it is part of the critical path

ii. Crash C because it is also part of the critical path

iii. Crash E because it is part of the critical path

Total duration if all are crashed is 8 weeks at a cost of $432,000

Crashing.” Please respond to the following:

· Based on the scenario given in Exercise the end of Chapter 8 in the textbook, calculate the crash cost per week for each activity.

Please see attached...

· Decide the sequence of crashing decisions you would make to compress the project most cost effectively and calculate the total cost (remember to include the penalty incurred for weeks past the end of September and to consider the bonus).

I just found the critical path and calculated 13 weeks. Because they requested to have the project finished by week three, the only way to accomplish this was to crash everything in the critical path in order to stay within the 9 week window that started the second week of July and ended week three of septemeber. Crashing everything in the critical path gets the project done in 8 weeks vise 13.

· Formulate a plan for presenting the options to the Ketchum City Council.

My only solution for the client is to say that yes, we can complete the project by week 2 of september, but to do so these are the additional costs.