Assignment # 04 Date : 21/10/2018

CTM Due Date: 03/11/2018 (11:55 PM)

Qno. 1. Define terms ‘direct cost ’,‘ indirect cost ’and ‘outage losses’.

Qno. 2. Explain different methods of time-cost optimization of project network. What is

Crashing?

Qno. 3. Given table below shows activity relation and costs.

Normal Cost Crash Duration Crash cost

Normal Duration
Activity (Rs.) (days) (Rs.)
(days)
1-2 9 8000 6 9500
2-3 5 5000 3 5500

The project overhead costs are @ Rs. 300.0 per day and there is an outage loss of Rs.
100 per day upto and including 11th day and Rs. 200 per day thereafter, Find total
cost duration relationship. Also plot direct cost curve and indirect cost curve in the graph.
Qno. 4. From the given table below, find project’s minimum cost and time corresponding to
min. cost.
Normal Duration Normal Cost Crash Duration Crash cost
Activity
(weeks) (Rs.) (weeks) (Rs.)
1-2 6 7000 3 14500
1-3 8 4000 5 8500
2-3 4 6000 1 9000
2-4 5 8000 3 15000
3-4 5 5000 3 11000
The overhead cost of project is Rs. 3000 per week. Draw time-scale curve for
each stages.

Qno. 5. Determine the minimum cost and optimum duration for a project network.
The duration and cost of each activity of the project is given in the following table. The
indirect cost of the project is Rs. 800 per day. Draw the time scaled version of the network.

Normal Duration Normal Cost Crash Duration Crash cost

Activity
(weeks) (Rs.) (weeks) (Rs.)
A–B 3 10000 2 10000
A–C 7 5000 3 9000
B–C 6 3000 3 4200
B–D 5 2000 4 2500
C–D 0 0 0 0
C–E 9 6000 4 9000
D–F 11 6000 6 10000
E–F 6 7000 3 9100
(Note: - you can do this problem manually or can use any coding software)

Kaushal Kumar JUIT, Waknaghat