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A will therefore cost $200, B will cost $300, and C will cost $400 to speed up each activity.
What does CPM (Critical Path Method) mean?
Important Path Method (CPM) The most common scheduling method in the transportation industry is scheduling. With the help of this scheduling method, a project can be planned, managed, and its minimum completion time as well as potential start and end times for its various activities, can be determined. A project scheduling technique called the Critical Path Method (CPM) analyzes and visualizes the tasks necessary to complete a given project.
What is CPM model?
The term "cost per mille" (CPM), which is derived from the Latin word mille, which means "thousand," roughly translates to "cost per thousand impressions." This indicates that the cost of advertising is based on the quantity of served impressions. The cost-per-thousand-impressions (CPM) in online advertising and digital marketing refers to the price a marketer would pay to receive 1,000 campaign impressions. CPM actually stands for "cost per mille," which is Latin for "thousand" and is not to be confused with the cost per mile of a rental car.
Briefing:
Cost per unit of time = (Crash cost - Normal cost)/(Normal time - Crash time)
A = (600-400)/(3-2) = 200
B = (1200-600)/(5-3) = 300
C = (1500-300)/ (4-1) = 400
Total time is 12 days, total cost is $ 1700
Alternative paths in the network are following:
A-B-D-E, duration = 3+4+3+2 = 12
A-C-D-E, duration = 3+1+3+2 = 9
The critical path is A-B-D-E because it is the longest path. and the project will last 12 days.
Total normal cost = 200+300+200+500+500 = $ 1700
Total time is 11 days, total cost is $ 1850
The critical path activity with the lowest crash cost per unit time must be crashed in order to shorten the project's duration. With a crash cost of (550-500)/(3-2) = 50, that activity is D.
Normal cost = 200+300+300+500+500 = 1800
Total cost = Normal cost + Crash cost = = 1800+50 = $ 1850
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