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A software house is interested in developing software for a client. Below chart shows the time and cost
required against each activity during the course of project. It also includes the crash time and cost
against each activity. Please note that fixed cost/week is 5000. The task is to
Normal Crash
PERT Diagram:
Possible critical paths:
1-2 1600
2-5 1666.666
5-7 1666.666
7-8 3333.333
8-9 2500
Direct cost=147000+5*1600=155,000
Ist Iteration:
Possible Paths:
1-2 1600
2-5 1666.666
5-7 1666.666
7-8 3333.333
8-9 2500
1-3______ 1000
3-4______ 1500
4-6______ 2000
6-8_______ 3000
8-9______ 2500
1-3 = 1000
3-4 1500
4-6 2000
6-8 3000
8-9 2500
Critical Path:
5-7
7-8
Direct Cost=192,833.53+(6*1666.66)+9999.99
Direct Cost=202,835.96
Indirect Cost=192,833.33+41*1666.66
=192,833.33+68333.06
=261,166.39
Direct Cost=202,853.29+(5*3000)=217833.29
=402,833.29
Possible Critical Path: 1-2-5-6-8-9
Direct Cost=217,853.29+(10*3333.333)+3333.33
=251,166.66
Indirect Cost=217,833.29+(38*5000)+190000
=407,833.29
Critical Path:
5-6,6-8,8-9