Production Operations Management Notes

Optimum Cost-Time Schedule Template for Exam V

• Legend:
  • MNGT 3340 Production Operations Management
  • Alt Gr
  • CCCL
  • SID EF
• Project Duration: Represents the overall time required to complete the project.
• Direct Costs: Costs directly attributable to project activities (e.g., labor, materials).
• Indirect Costs: Costs not directly tied to specific project activities (e.g., overhead, administration).
• Total Costs: The sum of direct and indirect costs.

Cost-Time Schedule

• Duration of 12: Direct Costs = 1200, Indirect Costs = 1000, Total Costs = 2200
• Duration of 11: Direct Costs = 1250, Indirect Costs = 900, Total Costs = 2150
• Duration of 10: Direct Costs = 1300, Indirect Costs = 800, Total Costs = 2100
• Duration of 9: Direct Costs = 1380, Indirect Costs = 700, Total Costs = 2080

Crashing Template for Exam V

• You will need to print this slide more than one copy.
• Indicates this is a "crashing" template.

Crashing Example 1

• Initial State
  • Total Direct Cost: 1200
  • Critical Path: A-C-E-F
  • Time: 12
• Activities Changed
  • Path A-C-E
• Crashing Activities (A)
  • A Crashed by 1 unit, increasing the Direct Costs +50
• Calculation
  • Original Cost: 1200
  • New Cost: 1200 + 50 = 1250
• Time
  • New time : 2+4+3+2= 11
• Total Costs
  • = 2150

Crashing Example 2

• State
  • Total Direct Cost: 1250
  • Time: 11
  • Path A-C-E
• Crashing Activities (A)
  • A Crashed by 1 unit, increasing the Direct Costs +50
• Calculation
  • Original Cost: 1250
  • New Cost: 1250 + 50 = 1300
• Time
  • 1+4+3+2=10
• Total Costs
  • = 2100