Munyash construction has tabled the following activities to be rolled out for the up-coming project in Midlands.
Activity Preceding Activity Normal time in days Crash time in days Normal costs S Crash costs $ A-B 5 3 650 850 A-C – 6 3 750 1 050 A-E – 8 7 950 1 050 B-C A 7 7 850 850 C-E A,B 11 8 1 250 1 550 B-D A,B 9 9 1 050 1 050 C-F A,B 10 10 1 150 1 150 D-F A,B,D 12 10 1 350 1 550 E-F A,B,C 13 10 1 450 1 750
a) Draw a network diagram and establish the Critical Path. (12 marks)
- b) Calculate the normal cost to complete the project given that the fixed cost amounts to $150 per day. (4 marks)
- c) Management may be under pressure to finish the project within 27 days. What would be the minimum cost for the project in this instance? (7 marks)
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