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GATE 2024 CE (CE2) – Question 38

Construction Management · Project planning and scheduling: AOA and AON, PERT and CPM · 2 marks · Multiple choice

A critical activity in a project is estimated to take 15 days to complete at a cost of Rs. 30,000. The activity can be expedited to complete in 12 days by spending a total amount of Rs. 54,000. Consider the statements P and Q.
P: It is economically advisable to complete the activity early by crashing, if the indirect cost of the project is Rs. 8,500 per day.
Q: It is economically advisable to complete the activity early by crashing, if the indirect cost of the project is Rs. 10,000 per day.

Which one of the following options is CORRECT?

  1. Both P and Q are TRUE
  2. P is TRUE and Q is FALSE
  3. Both P and Q are FALSE
  4. P is FALSE and Q is TRUE

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Show answer and explanation

Correct answer: (A) Both P and Q are TRUE

Explanation

The crashing cost per day is $\frac{54000 - 30000}{15 - 12} = Rs. 8000$ per day. Crashing is worthwhile when the saving in indirect cost per day is more than the extra direct cost per day. Both 8500 and 10000 exceed 8000, so both statements are true.