crashing on a CPM network

crashing on a CPM network

1. Three activities are candidates for crashing on a CPM network. Activity details are in the table below.. . Activity . Normal Time . Normal Cost . Crash Duration . Crash Cost . A . 9 days . $8,000 . 7 days . $12,000 . B . 5 days . $2,000 . 3 days . $10,000 . C . 12 days . $9,000 . 11 days . $12,000 a. What is the crash cost per unit time for activity A? b. What is the crash cost per unit time for activity B? c. Which activity should be crashed first to cut one day from the projects duration; how much is added to project cost? d. Which activity should be the next activity crashed to cut a second day from the projects duration; how much is added to project cost? e. Assuming no other paths become critical, how much can this project be shortened at what total added cost? 2. Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firms productivity by comparing this years performance with last years. The following data are available: . Has Martin Manufacturing improved its productivity during the past year? . . Last Year . This Year . Output . 10,500 units . 12,100 units . Labor Hours . 12,000 . 13,200 . Utilities . $7,600 . $8,250 . Capital . $83,000 . $88,000 Has Martin Manufacturing improved its productivity during the past year?


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