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Crashing a project - help!

Posted: Fri 09 Jan 2015 5:17 pm
by student_msproject
Hi, first of all I am new to the forum so please be nice :)

I am a student and I'm learning the in's and out's of project management using Excel and MS Project. I have been attempting to complete practice assignments set by my tutor to help me for when I have to sit exams later this year.

I am stuck on one part:

Demonstrate how you would “crash” the project to enable it to achieve maximum profit if the rental income from the development is assumed to be 80% of its maximum. - That is, HK$2,800 per day when operational.
  • Activity 1 can be reduced by a maximum of 2 days at a cost of HK$700 per day
  • Activity 2 can be reduced by a maximum of 4 days at a cost of HK$2,000 per day
  • Activity 4 can be reduced by a maximum of 6 days at a cost of HK$2,900per day
  • Activity 5 can be reduced by a maximum of 3 days at a cost of HK$1,600 per day
  • Activity 6 can be reduced by a maximum of 3 days at a cost of HK$1,000 per day
  • Activity 7 can be reduced by a maximum of 2 days at a cost of HK$500 per day
  • Activity 8 can be reduced by a maximum of 1 day at a cost of HK$800 per day
  • Activity 9 can be reduced by a maximum of 10 days at a cost of HK$1,300 per day
Can anybody help me with this, it will greatly be appreciated as I'll need to know how to crash projects using similar information in my exams.

Thanks,
Student_MSProject

Re: Crashing a project - help!

Posted: Sat 17 Jan 2015 12:42 pm
by PM-98
What is a current duration of all activities?

Re: Crashing a project - help!

Posted: Sat 17 Jan 2015 12:59 pm
by PM-98
Act1 -2d, Act2 -4d, Act5 -3d, Act6 -3d, Act7 -2d, Act8 -1d, Act9 -10d.
Cost of 'crashing' = 32,000
Extra days of rental = 25
Added value = 38,000