2. Consider table 6-2.

All duration estimates or estimated times are in days; and the

network proceeds from Node 1 to Node 9.
Activity

Initial
Node

Final
Node

Estimated
Duration

a. Draw an AOA network diagram representing the project. Put the node numbers in
circles and draw arrows from node to node, labeling each arrow with the activity letter
and estimated time.

b. Identify all of the paths on the network diagram and note how long they are, using
figure 6-8 as a guide for how to represent each path.
Path 1 = A-B-E-H-K

Length = 2+2+2+2+2 = 10

Path 2 = A-B-E-I-J-K

Length = 2+2+2+5+1+2 = 14

Path 3 = A-C-F-H-K

Length = 2+3+3+2+2 = 12

Path 4 = A-C-F-I-J-K

Length = 2+3+3+5+1+2 = 16

Path 5 = A-D-G-J-K

Length = 2+4+6+1+2 = 15

c. What is the critical path for this project and how long is it?
As shown in the last point the Critical Path is A-C-F-I-J-K and it has duration of 16 days.

d. What is the shortest possible time needed to complete this project?

The minimum time required to complete the project is 16 days.

4. Enter the information from Exercise 2 into Project 2010. View the network diagram
and task schedule table to see the critical path and float or slack for each activity. Print
out the Gantt chart and network diagram views and the task schedule table. Write a
short paper that interprets this information for someone unfamiliar with project time
management.
Answer:
In order to better understand the results for this exercise we are going to introduce basic
concepts:
Gantt chart: It is a bar chart and it illustrates the schedule of a project. It shows
horizontal lines that represent the period of time required, including start and finish
dates, to develop each of the WBS items included in the schedule. It is also possible to
include the sequence and dependence of the tasks.
Network diagram: It is a common graphical technique used to display the sequence of
steps or activities required to carry out a project.
Float: or slack is the amount of time that a task can be delayed without delaying the
subsequent tasks, which is called free float, or the project completion date, which is
called total float.

Critical Path: It represents the series of steps or activities that defines the earliest time
required to complete a project. This path is the longest one among the network diagram
and also is the one that presents the smaller float.
In the Gantt chart developed for this exercise we can identify the start date of the project
as Tuesday 11 November 2014, the finish date Tuesday 2 December 2014. The
dependency of the task is represented by the arrows that are connecting them and it is
also visible in the schedule table.
It is also possible to identify the critical path by looking the float in the schedule table;
the activities A-C-F-I-J-K present the critical path giving a minimum duration of 16
business days for the project. Any delay on one of those activities will cause a delay on
the finish date of the project, but also if one or some of them are performed sooner than
the scheduled time the project will also finish before planned.

6. You have been asked to determine a rough schedule for a nine-month Billing System
Conversion project, as part of your job as a consultant to a Fortune 500 firm. The firms
old system was written in COBOL on a mainframe computer, and the maintenance
costs are prohibitive. The new system will run on an off-the-shelf application. You have
identified several high-level activities needed to initiate, plan, execute, control, and close
the project. The table 6-4 shows your analysis of the projects tasks and schedule so
far.
a. Using the information in table 6-4, draw horizontal bars to illustrate when you think
each task would logically start and end. Then use Microsoft Project 2010 to create a
Gantt chart and network diagram based on this information.
b. Identify at least two milestones that could be included under each of the process
groups in table 6-4. Then write a detailed description of each of these milestones that
meets the SMART criteria.
The next milestones were selected for each of the process groups included in table 6-4.
All of them are Specific, Measurable, Assignable, Realistic and Time framed.
-

Initiating:
1. Project Charter developed and signed-off by the key stakeholders. This
document formally recognizes the existence of Project and it provides
direction on objectives and management.
2. The approved funding for the project: The funding for the project must be
assigned and approved in order to proceed.

Planning:
1. Cost estimate accepted: The acceptance of the cost estimate in a document
will also mean the acceptance of the WBS.
2. Communication Plan document: This is the document that will guide the
project communications

Executing:
1. Report of software and Hardware tests: This document will show that all the
installations were performed successfully and that they are working according
to the specifications.
2. Training sessions successfully completed format: A document signed by the
instructor and the participants to show that the training sessions were
successfully completed.

Controlling:
1. Change control procedures manual: A document that will establish the
procedures required in order to accept a change requirement.
2. Work performance report: write a report after finishing major activities in order
to control and analyze the performance of the work.

Closing:
1. Final project report: A document accepted and signed as an evidence of the
work performed appropriately.

Chapter 7

2. Create a cost/estimate model for building a new, state-of-the-art multimedia

classroom for your organization within the next six months. The classroom should
include 20 high-end personal computers with appropriate software for your organization,
a network server, Internet access for all machines, an instructor station, and a projection
system. Be sure to include personnel costs associated with the project management for
this project. Document the assumptions you made in preparing the estimate and provide
explanations for key numbers.

In order to create the cost/estimate the first step is develop a WBS of the quantifiable
requirements:

1. Project Management
1.1 Project Manager
1.2 Project team member
2. Hardware
2.1 High-end personal computers
2.2 Network server

2.3 Instructor station

2.4 Projection system
2.4.1 Projector
2.4.2 Screen
2.5 Local area network
3. Software
3.1 Licensed software
3.2 Internet access
4. Training and support
4.1 Trainee cost
4.2 Project team member
5. Reserves

Assumptions:
The project is going to be carried out in Montreal, Quebec. The multimedia classroom is
for the master students of engineering and computer science of Concordia University.

Project management:

Due that the project complexity is not high; the university will require a half time Project
manager and two team member full time. Taking 160h per month full time we have:
- For the Project manager: Calculation based on a salary of $100 per hour. Then For
half time and 6 months: (160h/2)*6=480 h per 6 months.
- For the Project team member: One of them will be in charge of providing the training.
Calculation based on a salary of $75 per hour. Then For full time and 6 months:
(160h)*6=960 h per 6 months.

Hardware

- High-end personal computer: Concordia has chosen Apple iMac 27" 4th Gen Intel
Core i5 3.2GHz Computer. The price in Canada is $1,912.
- Network server: Concordia has chosen Apple Xserve. The price in Canada is $2,999.

- Instructor station: The approximate price for the instructor station is $2500
- Projection system: divided into 2 items, Concordia has chosen:
Projector: Benq 1080p Full HD DLP Projector. The price in Canada is $804
Screen: EluneVision Luna 106" Widescreen Projection Screen. The price in Canada is
$450
- Local area network: estimated value is $10,00 for the local network and it includes
installation and configuration for 20 computers plus the server and instructor station.

Software

- Licensed software: Including office for Mac and specialised software the estimated
value per computer is $1200. In this item the instructor station must be included.
- Internet access: The multimedia classroom requires a high speed internet, the price is
$95 per month * 6 months = $570

Training and support

- Trainee cost: The estimated price of the training per person is $1300. The university
has decided that the training will be taken by three people.
- Project team member: the salary for the instructor is the same as the stipulated in
project management. One of the team members will be in charge of providing the
training.

Reserves

The university has decided that the reserves will be 20%.

The table below shows the cost estimate for the project:

State-of-the-art Multimedia Classroom Cost Estimate

#
Cost/Unit/Hr.
Units/Hrs.
1.

2.

3.

4.

WBS
Project Management
1.1 Project Manager
1.2 Project team member
Hardware
2.1 High-end personal computers
2.2 Network server
2.3 Instructor station
2.4 Projection system
2.4.1 Projector
2.4.2 Screen
2.5 Local area network
Software
3.1 Licensed software
3.2 Internet access
Training and support
4.1 Trainee cost
4.2 Project team member

5. Reserves (20% of total estimate)

Total project cost estimate

480 $
960 $

Subtotals

WBS Level 1
totals

% of
Total

120,000.00

36%

54,993.00

17%

25,770.00

8%

75,900.00

23%

$ 55,332.60 $
$

55,332.60
331,995.60

17%

100.00 $ 48,000.00
75.00 $ 72,000.00

20 $ 1,912.00 $ 38,240.00
1 $ 2,999.00 $ 2,999.00
1 $ 2,500.00 $ 2,500.00
1 $
804.00 $
804.00
1 $
450.00 $
450.00
1 $ 10,000.00 $ 10,000.00
21 $ 1,200.00 $ 25,200.00
1 $
570.00 $
570.00
3 $ 1,300.00 $ 3,900.00
960 $
75.00 $ 72,000.00