PROJECT MANAGEMENT.

Running Head: PROJECT MANAGEMENT
Manufacturing New Recycling Machine
Name of the Student
Name of the University

1PROJECT MANAGEMENT
Answer to 1
The Activity on Arrow diagram has been presented as follows.
Figure 1: Activity on Arrow Diagram
(Source: Created by Author)
The critical path is identified as: A  B  D  I  J  K  L.
The normal completion time of the project is 24 weeks.

2PROJECT MANAGEMENT
Answer to 2
The calculations of the normal and crashed costs and durations are shown in the
following table.
Activity
Normal Crashed
Duration (weeks)
Cost
($)
Duration
(weeks)
Cost
($)
A 2 400 1 800
B 1 0 1 0
C 4 200 2 450
D 6 450 2 1150
E 3 700 1 1200
F 3 200 1 600
G 4 600 1 1000
H 2 0 2 0
I 3 250 2 450
J 8 600 4 950
K 2 450 1 700
L 2 200 1 350
TOTA
L
24 (minimum
duration) 4050
12 (minimum
duration) 7650
The minimum duration of the project is 24 weeks and the cost associated with the project
(sum of all costs + fixed cost) = £ (4050 + 24*250) = £10050.
In case of crash, the crashed duration becomes 12 weeks. Hence, the cost associated with
the crashed duration = £ (7650 + 12*250) = £ 10650.
Hence, the difference between the total crashed cost and the normal cost is £600. Hence,
unless the company is not able to pay for this value, the project will not be worth crashing.

3PROJECT MANAGEMENT
Answer to 3
Scenario a: Due to machine malfunction, it is reported that activity C is delayed by 4
weeks. However, activity C does not fall on the critical path of the project and the extended
duration also does not exceed the actual critical path of the project. Thus, the 4 weeks delay of
activity C will not affect the total duration of the project. However, the expenditure in activity C
will increase considerably.
Scenario b: Like activity C, activity G also does not lie on the critical path of the project.
However, with the 4 weeks delay, exceeds the critical path length and thus a new critical path is
created (A – B – D – E – F – G – K – L). As a result of this change, the total duration of the
project is increased by 3 weeks i.e. the new duration of the project will be 27 weeks.