Munyash construction
Munyash construction has tabled the following activities to be rolled out for the up-coming project in Midlands.
Activity Preceding Activity Normal time in days Crash time in days Normal costs S Crash costs $ A-B 5 3 650 850 A-C – 6 3 750 1 050 A-E – 8 7 950 1 050 B-C A 7 7 850 850 C-E A,B 11 8 1 250 1 550 B-D A,B 9 9 1 050 1 050 C-F A,B 10 10 1 150 1 150 D-F A,B,D 12 10 1 350 1 550 E-F A,B,C 13 10 1 450 1 750
Required:
a) Draw a network diagram and establish the Critical Path. (12 marks)
b) Calculate the normal cost to complete the project given that the fixed cost amounts to $150 per day. (4 marks)
c) Management may be under pressure to finish the project within 27 days. What would be the minimum cost for the project in this instance? (7 marks) Page 4 of 7
