The Consolidated Bank of Ghana (CBG) is planning to install a new computerized accounts system....

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Accounting

  1. The Consolidated Bank of Ghana (CBG) is planning to install a new computerized accounts system. Bank management has determined the activities required to complete the project, the precedence relationships of the activities, and activity time estimates as followS

Time

Estimates

(weeks)

Activity

Description

Predecessor

a

m

b

A

Position Recruiting

-

5

8

17

B

System Development

-

3

12

15

C

System Training

A

4

7

10

D

Equipment training

A

5

8

23

E

Manual System Test

B, C

1

1

1

F

Preliminary System Changeover

B, C

1

4

13

G

Computer-Personnel Interface

D, E

3

6

9

H

Equipment Modification

D, E

1

2.5

7

I

Equipment testing

H

1

1

1

J

System Debugging and Installation

F, G

2

2

2

K

Equipment Changeover

G, I

5

8

11

Question 2(c). When will the computerized accounting system be ready for use?

  1. Management of CBG is not happy with the completion time in Question 2(c) and wants the project completed earlier than that. You are given the following additional activity information

Activity

Crash Time (weeks)

Activity Cost (GH)

Normal

Crash

A

7

4,800

6,300

B

9

9,100

15,500

C

5

3,000

4,000

D

8

3,600

5,000

E

1

0

0

F

3

1,500

2,000

G

5

1,800

2,000

H

3

0

0

I

1

0

0

J

2

0

0

K

6

5,000

7,000

i. Prepare a table of Allowable Crash Time and Crash Cost per Week for each activity. (5 marks)

Management of CBG can offer a maximum of GH800 per week to enable the project manager reduce the project completion time:

ii. prepare a table for the crashing procedure. (5.5 marks)

iii. when will the project now be completed? (0.5 mark)

iv. what is the total extra cost to management of CBG? (1 mark)

v. If management of CBG wishes the computerized accounting system to be ready at week 30, what will be the total extra cost to CBG? (2 marks

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