The normal time, crash time, and cost estimates for the setup of a new produc tion line at Ithaca Custom Manufacturing (ICM) Inc. are listed in Table 8.12. Activity Times and Immediate processors Activity Normal Time Hours Crash Time Hours Crash (Cost per hour) Immediate Processor A 5 4 $2000 - B 4 4 - A C 6 4 $1500 A D 3 3 - A E 4 3 $1000 B,C F 5 3 $1200 C,D G 2 2 - E,F The Project Includes Four Paths: Compute the unsolved activities To get the project numbers for the four paths you have to add the numbers in the chart. For example, ABEG= 5+4+4+2=15 ABEG: 15 ACEG: ACFG: 19 ADFG: To reduce the length of the project, we must start reducing the duration of the critical path in the lowest-cost manner (see Table 8.13). Crash Time and Cost Step Action Cost ABEG Normal Hours ACEG Crash Time Hours ACFG ADFG 1 Reduce F By 1 hour 1200 16 18 14 2 Reduce C By 1 hour 1500 3 Reduce C By 1 hour 4 Reduce E by 1 hour and F by 1 hour The crash time and cost chart in step one reducing F by 1 hour requires finding the crash time with F in the activity. Please complete the cost and activity hours from the chart above. Note: Cost remains constant from above. For example, ACFG=19-1=18. ADFG=15-1=14
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The normal time, crash time, and cost estimates for the setup of a new produc tion line at Ithaca Custom Manufacturing (ICM) Inc. are listed in Table 8.12.
Activity Times and Immediate processors
|
Activity |
Normal Time Hours |
Crash Time Hours |
Crash (Cost per hour) |
Immediate Processor |
|
A |
5 |
4 |
$2000 |
- |
|
B |
4 |
4 |
- |
A |
|
C |
6 |
4 |
$1500 |
A |
|
D |
3 |
3 |
- |
A |
|
E |
4 |
3 |
$1000 |
B,C |
|
F |
5 |
3 |
$1200 |
C,D |
|
G |
2 |
2 |
- |
E,F |
The Project Includes Four Paths: Compute the unsolved activities
To get the project numbers for the four paths you have to add the numbers in the chart. For example, ABEG= 5+4+4+2=15
ABEG: 15
ACEG:
ACFG: 19
ADFG:
To reduce the length of the project, we must start reducing the duration of the critical path in the lowest-cost manner (see Table 8.13).
Crash Time and Cost
|
Step |
Action |
Cost |
ABEG Normal Hours |
ACEG Crash Time Hours |
ACFG |
ADFG |
|
1 |
Reduce F By 1 hour |
1200 |
16 |
|
18 |
14 |
|
2 |
Reduce C By 1 hour |
1500 |
|
|
|
|
|
3 |
Reduce C By 1 hour |
|
|
|
|
|
|
4 |
Reduce E by 1 hour and F by 1 hour |
|
|
|
|
|
The crash time and cost chart in step one reducing F by 1 hour requires finding the crash time with F in the activity. Please complete the cost and activity hours from the chart above. Note: Cost remains constant from above. For example, ACFG=19-1=18. ADFG=15-1=14
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