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Analysis
CPM PROJECT
CRASHING
Network Analysis
- is an administrative skill by which a manager can plan, organize,
and control a project consisting of different interrelated activities.
Three Network Models:
1. Critical Path Method (CPM)
2. Program Evaluation and Review Technique (PERT)
3. CPM - Project Crashing
Case Study
The Information and Computing systems department of Mega
Industries has an opening for a systems analysis position. The
selection process has been designed in order to find the right man
for the right job. This process include activities like getting referrals
from the internal stuff, advertising in newspapers, receiving
application, interview, and evaluation by the Human Resource
Department, endorsement of the short-listed applicants to line
management, and so on. The following table shows relevant
information of the project or program.
Project INDUSTRY
Normal
Crash
Activity
Code
Immediate
Predecessor
s
Time in
Days
None
1000
1200
None
4200
6000
I,N
1200
1500
600
900
1500
2000
350
350
1800
1800
U, R
4000
6100
Direct Cost
Time in
Days
Direct
Cost
Requirements:
1) Draw the network diagram for this project
2) Find the optimum completion time and identify the critical path
and critical activities
3) Compute the slack time for each of the non-critical activities
1) Network Diagram
U
(3)
I (5)
Star
t
2
N
(7)
D
(4)
S
(2)
T
(1)
R
(2)
Y
(8)
End
Total time
(in days)
Summary
Optimal Completion Time:
OCT (Normal) = 23 days
OCrCT (Crash) = 15 days
Total Normal Cost = 14,650
Total Crash Cost = 19,850
Critical Activities, CA = N, D,
S, R, Y
Critical Path, CP = NDSRY
Non-Critical Activities = I, U,
T
Normal
Activity
Code
Time in Days
Crash
Direct
Cost
Time in
Days
Direct
Cost
Reduced Reduced
Time tN - Cost CC -
tC
CN
Additional
Cost / Days
(Marginal)
1000
1200
200
100.00
4200
6000
1,800
600.00
1200
1500
300
300.00
600
900
300
150.00
1500
2000
500
500.00
350
350
0.00
1800
1800
0.00
4000
6100
2,100
700.00
Total Cost
14,650
19,850
LEGENDS
Activity
ES
EF
I
(0)
(5)
(11) (11)
(7)D
S
2
3
(4)
(2)
1
(0)
(5)
(11)U
(3)
N
(7)
(7)
(11)T
(1)
(14)
(13)
(13)
R
4
(2)
(15)
(12)
(15) Y
(8)
(23)
6
End
Activity
Code
Intermed
iate
Predeces
sors
Time
(t) weeks
Earliest
Start
(ES)
Earliest
Finish
(EF)
Latest
Finish
(LF)
Latest
Start
(LS)
Slack
Time
()
None
None
I, N
11
11
11
14
15
12
11
13
13
11
11
12
23
22
11
13
15
15
13
U,R
15
23
23
15
Based on Crash
Time
Activity
Code
Intermed
iate
Predeces
sors
Time
(t) weeks
Earliest
Start
(ES)
Earliest
Finish
(EF)
Latest
Finish
(LF)
Latest
Start
(LS)
Slack
Time
()
None
None
I, N
10
15
14
10
10
U,R
10
15
15
10