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    Case JV Machine

    Uploaded by

    Sabila Syarafina
    1) If completed on time, the normal project duration is 14 weeks and total cost is INR 497,500. 2) To meet the target of 9 weeks, activities A, C, D and E need to be crashed further, increasing the total cost to INR 582,500. 3) The least possible duration is 8 weeks by crashing all activities to 1 week, with a maximum crash cost of INR 702,500.

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    © All Rights Reserved
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    Case JV Machine

    Uploaded by

    Sabila Syarafina
    369 views14 pages
    1) If completed on time, the normal project duration is 14 weeks and total cost is INR 497,500. 2) To meet the target of 9 weeks, activities A, C, D and E need to be crashed further, increasing the total cost to INR 582,500. 3) The least possible duration is 8 weeks by crashing all activities to 1 week, with a maximum crash cost of INR 702,500.

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    Case Jv Machine

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    1) If completed on time, the normal project duration is 14 weeks and total cost is INR 497,500. 2) To meet the target of 9 weeks, activities A, C, D and E need to be crashed further, increasing the total cost to INR 582,500. 3) The least possible duration is 8 weeks by crashing all activities to 1 week, with a maximum crash cost of INR 702,500.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    369 views14 pages

    Case JV Machine

    Uploaded by

    Sabila Syarafina
    1) If completed on time, the normal project duration is 14 weeks and total cost is INR 497,500. 2) To meet the target of 9 weeks, activities A, C, D and E need to be crashed further, increasing the total cost to INR 582,500. 3) The least possible duration is 8 weeks by crashing all activities to 1 week, with a maximum crash cost of INR 702,500.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    At a glance
    Powered by AI
    The document discusses a project management case study involving planning, crashing, and optimizing the duration and costs of a project.

    The Normal Time is based on the critical path of the project which is B-D-E. The project is normally going to last for 14 Weeks. The project in total will normally cost 80.000+100.000++180.000+60.000+7 7.500 = INR 497.500

    The least possible overall duration can be achieved by crashing all possible activities into 1 week only. The project in total will cost 140.000+100.000+280.000+90.000+92.500 = INR 702.500

    Case JV Machine

    Syndicate 4
    M. Ananda Rahmat Fatah 29320540
    M. Satria Akbar Abbas 29320365
    Putty Erwina 29320402
    Rizelfi Abdillah 29320425
    Roberto Bosta S. 29320491
    Sabila Syarafina 29320561 1
    Case
    JV Machine Works Ltd, the company who decided to computerized all its
    operations using the latest technologies to survive the competition. Hari Verma
    (the managing director) of the firm offered the project to a Bangalore-based
    software company, Venus Solutions Pvt.Ltd.

    Prabu Kumar and Verma together identified the activities of the project, they are:

    Activity Descriptions

    A Studying and understanding the client requirements

    B Preparation of the project plan

    C Developing the solution

    D Testing and making modifications, if any

    E Training the client’s staff and final implementation 2


    Questions

    If project activities are completed on time, what


    1 is the normal cost and duration of the entire
    project?

    Verma is ready to pay more and wants Kumar to


    2 complete the project in 9 weeks. What do you think
    about this target and how to crash it correctly?

    What is the least possible overall duration of


    the project if crashing is done? What is the
    3 crash cost to achieve the most possible
    extent 3
    The Activity-on-Arrow Network Diagram of The Project

    2
    C (6
    ) )
    A(3

    E (4)
    1 4 5

    B(6
    4)
    ) D(

    4
    WORK + COST + TIME BREAKDOWN STRUCTURE

    Activity Normal Cost Normal Time Crash Cost Crash Time

    A 80.000 3 110.000 2

    B 100.000 6 - -

    C 180.000 6 200.000 5

    D 60.000 4 80.000 2

    E 77.500 4 87.500 2

    5
    3 4
    Yellow nodes are parts of critical path
    2
    C (6
    ) )
    0 0 A(3
    1 10 10 14 14
    E (4)
    1 4 5

    B(6
    4)
    0 ) 6 6 D( 0 0

    6
    QUESTION 1:
    If project activities are completed on time, what is the normal cost and
    duration of the entire project?

    ➔ The Normal Time is based on the


    critical path of the project which is
    B-D-E.

    ➔ The project is normally going to last for


    14 Weeks.

    ➔ The project in total will normally cost


    80.000+100.000++180.000+60.000+7
    7.500 = INR 497.500
    7
    QUESTION 2:
    Verma is ready to pay more and wants Kumar to complete the project in 9
    weeks. What do you think about this target and how to crash it correctly?
    2 3
    Initially, we try to crash all the possible
    activities. However, it turns out that we can
    2 only shorten the duration to 10 weeks and
    C* ( Verma’s target may not be possible at first.
    (2) 5)
    0 0 A*
    1 8 8 10 10
    E* (2)
    1 4 5

    B(6
    ) (2)
    0 6 6 D* 0 0

    The 10-week project in total will cost


    3
    110.000+100.000+200.000+80.000+87.500 =
    INR 577.500 8
    0
    In order to finish the project in 9 weeks, we have to crash further by adding more crash cost. We calculate
    the crash cost needed to reduce the time by one week. The activity with the least expensive additional crash
    cost is Activity E. Therefore, we are going to further crash Activity E into only 1 week. The total cost will
    be INR 582.500.

    Activity Normal Normal Crash Crash Crashing Final Final


    Cost Time Cost Time Cost per total crash
    Week crash time
    cost

    A 80.000 3 110.000 2 30.000 110000 2

    B 100.000 6 - -

    C 180.000 6 200.000 5 20.000 200000 5

    D 60.000 4 80.000 2 10.000 80000 2

    E 77.500 4 87.500 2 5.000 92500 1

    Critical Path

    Non Critical Path 9


    2 3 The project in total will cost
    110.000+100.000+200.000+80.000+92.500 =
    INR 582.500
    2
    C* (
    (2) 5)
    0 0 A*
    1 8 8 9 9
    E** (1)
    1 4 5

    B(6
    ) (2)
    0 6 6 D* 0 0

    3 Hence, we have to crash activity A into 2 weeks, Activity C into 5


    weeks, Activity D into 2 weeks and Activity E into only 1 week in order
    to finish the project in 9 weeks as Verma requested.
    0
    (*) = how many times the activity is crashed

    Yellow nodes are parts of critical path


    10
    Activity Normal Normal Crash Crash Crashing
    Cost Time Cost Time Cost per
    Week

    A 80.000 3 110.000 2 30.000

    B 100.000 6 - - Crashing/ = Cc-Nc


    Period Nt-Ct
    C 180.000 6 200.000 5 20.000

    D 60.000 4 80.000 2 10.000

    E 77.500 4 87.500 2 5.000

    Critical Path

    Non Critical Path

    11
    QUESTION 3:
    What is the least possible overall duration of the project if crashing is done? What
    is the crash cost to achieve the most possible extent?
    The least possible overall duration can be achieved by crashing all possible activities into 1 week only. The
    project in total will cost 140.000+100.000+280.000+90.000+92.500 = INR 702.500

    Activity Normal Normal Crash Cost Crash Crashing Cost Final total crash Final crash time
    Cost Time Time per Week cost

    A 80.000 3 110.000 2 30.000 140000 1

    B 100.000 6 - -

    C 180.000 6 200.000 5 20.000 280000 1

    D 60.000 4 80.000 2 10.000 90000 1

    E 77.500 4 87.500 2 5.000 92500 1

    Total 497.500 Total Total 702.500


    12
    Hence, after crashing all possible activities into 1
    week each, the least possible overall duration of
    1 5 the project is 7 weeks.

    (*) = how many times the activity is crashed


    2
    C** Yellow nodes are parts of critical path
    1) ** * (1
    A **( )
    0 0 4 6 6 7 7
    E** (1)
    1 4 5

    B(6 (1)
    0 ) 6 6 D** 0 0

    Time estimates were used to determine the likely


    3
    time(m):
    Te = o+4m+p
    0 6
    Te: expected time,
    o: optimistic time,
    p: pessimistic time
    13
    14

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