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    Example On Cost Budgeting in CPM

    Uploaded by

    Subir Chakrabarty
    The document provides information about the activities, durations, costs, and dependencies of a project. It performs normal and crashed scheduling calculations to determine the critical paths and project duration and costs under each scenario.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Example On Cost Budgeting in CPM

    Uploaded by

    Subir Chakrabarty
    8 views3 pages
    The document provides information about the activities, durations, costs, and dependencies of a project. It performs normal and crashed scheduling calculations to determine the critical paths and project duration and costs under each scenario.

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    Example on Cost budgeting in CPM.docx

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    © © All Rights Reserved

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    The document provides information about the activities, durations, costs, and dependencies of a project. It performs normal and crashed scheduling calculations to determine the critical paths and project duration and costs under each scenario.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    8 views3 pages

    Example On Cost Budgeting in CPM

    Uploaded by

    Subir Chakrabarty
    The document provides information about the activities, durations, costs, and dependencies of a project. It performs normal and crashed scheduling calculations to determine the critical paths and project duration and costs under each scenario.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Ex: The relevant data about a project is shown below.

    Sl. Activity Precedence Normal Duration in Normal Cost in Rs. Crashed Duration in Crashed Cost in Rs.
    No. Relationship days days
    1 A NIL 4 6,000 2 8,000
    2 B A 3 2,000 3 2,000
    3 C B 8 8,000 4 10,000
    4 D B 2 5,000 1 6,000
    5 E B 3 4,500 1 7,500
    6 F D 2 2,000 2 2,000
    7 G C 1 3,000 1 3,000
    8 H C 6 9,000 4 10,000
    9 I E 3 4,500 2 6,000
    10 J F and I 2 5,000 1 8,000
    11 K G 2 1,500 2 1,500
    12 L H and J 4 3,500 1 5,000
    13 M K and L 3 6,000 2 8,500

    Ans: First we solve taking only the normal duration and cost of the activities.

    Tail Event Head Event Float


    Activity Duration
    Early, iE Late, iL Early, jE Late, jL Total Free Indep.
    ij D [jL – iE – D]. [jE – iE –D] [jE – iL –D]
    A 1-2 4 0 0 4 4 0 0 0

    B 2-3 3 4 4 7 7 0 0 0

    C 3-4 8 7 7 15 15 0 0 0

    D 3-5 2 7 7 9 17 8 0 0

    E 3-6 3 7 7 10 16 6 0 0

    F 5-7 2 9 17 13 19 8 2 0

    G 4-8 1 15 15 16 23 7 0 0

    H 4-9 6 15 15 21 21 0 0 0

    I 6-7 3 10 16 13 19 6 0 0

    J 7-9 2 13 19 21 21 6 6 0

    K 8-10 2 16 23 25 25 7 5 0

    L 9-10 4 21 21 25 25 0 0 0

    M 10-11 3 25 25 28 28 0 0 0

    1
    Considering the normal durations the critical path is ABCHLM; duration = 28 days and total cost =
    Rs. 60,000.
    Budget vrs time

    Next we solve taking the crash duration and cost of the activities:

    Crashing program with cost

    Marginal Cost Analysis on the project: -

    Activity Crash cost Total Cost Length of Path in weeks


    to crash in Rs. in Rs. ABCGKM ABCHLM ABDFJLM ABEIJLM

    Nil 0 60,000 21 28 20 22

    H 500 60,500 21 27 20 22

    H 500 61,000 21 26 20 22

    C 500 61,500 20 25 20 22

    C 500 62,000 19 24 20 22

    C 500 62,500 18 23 20 22

    2
    C 500 63,000 17 22 20 22

    L 500 63,500 17 21 19 21

    L 500 64,000 17 20 18 20

    L 500 64,500 17 19 17 19

    A 1,000 65,500 16 18 16 18

    A 1,000 66,500 15 17 15 17

    M 2,500 69,000 14 16 14 16

    Fully crashed project duration is 16 days and project cost is Rs. 69,000. When the activities are fully crashed,
    there are two critical paths - ABCHLM and ABEIJLM.

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