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ProjectManagement

PleaseplaceyouranswersintheExcelFileattachedtothisQuestion.
PERTNetworkDiagram1illustratestheteninterrelatedactivitiesthatcompriseacertain
project.
PERTNetworkDiagram1

TheinformationpresentedinTable1representstheoptimisticactivitytime(a),mostprobable
activitytime(m),andpessimisticactivitytime(b)inweeksforeachactivityassociatedwiththe
project.
Table 1
Activit Optimistic
Most
Pessimistic
y
(a)
Probable (m)
(b)
2
3
4
A
1
3
5
B
2
5
8
C
4
10
16
D
2
4
6
E
3
6.25
8
F
2
4
6
G
1
3.25
4
H
1
2
3
I
3
5
7
J
PERT Network Diagram 2

1.UsingtheinformationprovidedinTable1,calculatetheexpectedactivitytime(t)inweeksfor
eachactivityandthenenterthisinformationintheappropriatedatafieldprovidedforeach
activityinPERTNetworkDiagram2inordertocompletethisdiagram.UsetheExcelsheet
providedbytheInstructor.
2.UsingtheinformationprovidedinTable1,calculatethevariancefortheestimatedactivity
timeforeachactivity.
314.UsingtheinformationinthecompletedPERTNetworkDiagram2,calculatetheoverall
estimatedactivitytimeinweeksforeachpossibleofthe12possiblepathsthroughthe
network.Thefollowingtablemayhelpyouorganizeyourdata:(1pointeach12pointstotal)
Question3
Question4
Question5
Question6
Question7
Question8
Question9
Question10
Question11
Question12
Question13
Question14

P1=
P2=
P3=
P4=
P5=
P6=
P7=
P8=
P9=
P10=
P11=
P12=

15.IdentifytheCriticalPath.(3points)
16.UsingtheinformationprovidedinTable1,andthecriticalpathidentifiedintheprevious
question,calculatethestandarddeviationfortheproject.
17.UsingtheinformationprovidedinTable1andcompletedProjectNetworkDiagram2
calculatetheprobabilityoftheprojectcriticalpathactivitiesbeingcompletedinlessthanor
equalto36weeks.(Assumeastandarddeviationof2.50weeks)

18.UsingtheinformationprovidedinTable1andcompletedProjectNetworkDiagram2
calculatetheprobabilityoftheprojectcriticalpathactivitiesbeingcompletedinmorethan
41weeks.(Assumeastandarddeviationof2.50weeks)
19.UsingtheinformationprovidedinTable1andcompletedProjectNetworkDiagram2
calculatetheprobabilityoftheprojectcriticalpathactivitiesbeingcompletedbetween37
and42weeks.(Assumeastandarddeviationof2.50weeks)
TheinformationpresentedinTable2representsthecalculatedEarliestStart,EarliestFinish,
LatestStartandLatestFinishtimesforeachactivity.
Table2
Activity
Earliest
Earliest Latest
Latest
Start
Finish
Start
Finish
0
3
0
3
A
3
6
3
6
B
6
11
11
16
C
6
16
6
16
D
16
20
18
22
E
16
22
16
22
F
22
26
22
26
G
22
25
23
26
H
26
28
26
28
I
J
28
33
28
33
20.UsingtheinformationprovidedinTable2,calculatetheslacktimeinweeksforeachactivity
byfillingoutthePERTchartprovidedbytheInstructor.
TheinformationpresentedinTable3representsthetotalbudgetedcostforeachactivity
associatedwiththeproject.
Table3
Activity TotalBudgetedCost
A
$45,500
B
$38,750
C
$34,500
D
$13,750
E
$11,250
F
$10,900
G
$15,250
H
$14,750
I
$23,100
J
$15,650
21.UsingtheinformationprovidedinTable2andTable3,calculatethebudgetedcostsatthe
endofweeksevenoftheprojectbaseduponusingtheEarliestStartDateforeachactivity

andcalculatethebudgetedcostsattheendofweeksevenoftheprojectbaseduponusingthe
LatestStartDateforeachactivityinordertothencalculatethedifferenceinthecashflowat
theendofweeksevenbetweenthesetwoscenarios.UsetheExcelsheetprovidedbythe
Instructor.(10points)
22.UsingtheinformationprovidedinTable2andTable3,calculatethebudgetedcostsatthe
endofweekelevenoftheprojectbaseduponusingtheEarliestStartDateforeachactivity
andcalculatethebudgetedcostsattheendofweekelevenoftheprojectbaseduponusing
theLatestStartDateforeachactivityinordertothencalculatethedifferenceinthecash
flowattheendofweekelevenbetweenthesetwoscenarios.UsetheExcelsheetprovidedby
theInstructor.(10points)
Table4representsthepercentageofcompletionandactualcostofworkperformeddataforeach
activityassociatedwiththeprojectatacertainpointintimeduringtheproject.
Table4

Activity

TotalBudgeted
Cost

Percentof
Completion

ActualCostof
WorkCompleted

A
B
C
D
E
F
G
H
I
J

$45,500
$38,750
$34,500
$13,750
$11,250
$10,900
$15,250
$14,750
$23,100
$15,650

100%
100%
100%
80%
70%
65%
30%
25%
0%
0%

$46,750
$44,500
$33,250
$8,750
$8,800
$7,450
$4,850
$3,000
0%
0%

23.UsingtheinformationprovidedinTable4,calculatethedollarvalueofworkcompletedand
thedifferencebetweenBudgetedandActualCostforeachactivity.Whichactivityevidences
thesinglelargestactivitydifference(regardlessofwhetheritisacostoverrunorcostunder
run)atthisparticularpointintheproject?
24.UsingtheinformationprovidedinTable4andtheanswertothepreviousquestion,calculate
theoverallcostoverrunorcostunderrunfortheprojectatthisparticularpointintheproject.

Table5representstheestimatedcrashtimeinweeksandassociatedtotalcrashcostforeach
activity.

Activit
y
A
B
C
D
E
F
G
H
I
J

Table5
CrashTime
(Weeks)
2
2
4
9
3
2
3
2
0
1

CrashCost
$52,500.00
$39,250.00
$36,000.00
$14,080.56
$12,250.00
$23,000.00
$18,500.00
$18,000.00
$30,000.00
$20,000.00

25.UsingtheinformationinthecompletedPERTNetworkDiagram2andTable5,crashthe
networkinordertoreducetheestimatedprojectdurationto31weekswhileminimizingthe
overallcrashcost.Whichcriticalpathactivitywouldbethemostlogicalchoiceforthefirst
activitytocrash?
26.Whichofthefollowingcriticalpathactivitieswouldbethemostlogicalchoiceforthe
secondactivitytocrash?
27.Whatisthetotalestimatedcostassociatedwithcrashingthenetworktoreducetheestimated
projectdurationto31weeksatthelowestpossibleoverallcrashcost?
28.Aftersuccessfullycrashingthenetworktoreducetheestimatedprojectdurationto31weeks,
identifythecrashednetworkcriticalpath?