Project Planning & Scheduling (BJTC 5143)

Group Assignment Case Studies:1) Southwestern University 2) The Pert Mustang Date: 24-Oct-2011

Lecturer:

Dr. Martino Luis Student ID 810314 810176 810175

Group Members: 1) Chia Soon Peng 2) Chan Kee Seng 3) Chai Ted Fong

Case Study 1: Southwestern University Question 1: Develop a network drawing for Hill Construction and determine the critical path. How long is the project expected to take? Answer: Table 1.1 Southwestern University Project
Time Estimates (days)

(a)
Activity Predecessor(s) Optimistic

(m)
Most likely

(b)
Pessimistic Crash Cost/Day

A B C D E F G H I J K L

A A C B E D, F G H H J I, K

20 20 50 30 25 0.1 25 10 20 8 0.1 20

30 65 60 50 30 0.1 30 20 25 10 0.1 25

40 80 100 100 35 0.1 35 30 60 12 0.1 60

$1,500 3,500 4,000 1,900 9,500 0 2,500 2,000 2,000 6,000 0 4,500

Activity Duration = TE = (a + 4m + b)/6 From Table 1.1, TA = (20 + 4(30) + 40) / 6 = 30 TB = (20 + 4(65) + 80) / 6 = 60 TC = (50 + 4(60) + 100) / 6 = 65 TD = (30 + 4(50) + 100) / 6 = 55 TE = (25 + 4(30) + 35) / 6 = 30 TF = (0.1 + 4(0.1) + 0.1) / 6 = 0.1 TG = (25 + 4(30) + 35) / 6 = 30

TH = (10 + 4(20) + 30) / 6 = 20 TI = (20 + 4(25) + 60) / 6 = 30 TJ = (8 + 4(10) + 12) / 6 = 10 TK = (0.1 + 4(0.1) + 0.1) / 6 = 0.1 TL = (20 + 4(250 + 60) / 6 = 30

Refer to Network Diagram 1 (attachment) From Network Diagram 1; the critical path activities are as:ACDGHIL = 30 + 65 + 55 + 30 + 20 + 30 + 30 = 260 Days Question 2: What is the probability of finishing in 270 days? Answer: To find probability, Z = (T TE) / (^2)^ 1/2 In this case, T = 270, and TE = 260, Variance for activities A-C-D-G-H-I-L can be determined as follow:Variance = ((b-a) / 6)^2 Variance for:A = ((40-20)/6)^2 = 11.1 C = ((100-50)/6)^2 = 69.4 D = ((100-30)/6)^2 = 136.1 G = ((35-25)/6)^2 = 2.7 H = ((30-10)/6)^2 = 11.1 I = ((60-20)/6)^2 = 44.4 L = ((60-20)/6)^2 = 44.4 Therefore, Z = (270 2600) / (11.1+69.4+136.1+2.7+11.1+44.4+44.4)^ 1/2 Z = 10 / (319.2)^ 1/2 = 10 / 17.86 = 0.559 From Appendix 1, Z(0.559) = 0.7123, which is about 71%. Therefore the probability of finishing in 270 days is 71%.

Question 3: If it is necessary to crash to 250 or 240 days, how would Hill do so, and at what costs? As noted in the case, assume that optimistic time estimates can be used as crash time. Table 1.2 Normal Time (day) TA=30 TC=65 TD=55 TG=30 TH=20 TI=30 TL=30 Crash Time(day) 20 50 30 25 10 20 20 Maximum Crash Crash Time (day) Cost/day 10 15 25 5 10 10 10 1,500 4,000 1,900 2,500 2,000 2,000 4,500 Maximum Crash Cost 15,000 60,000 47,500 12,500 20,000 20,000 45,000

Answer: If Hill wants to crash to 250 days, he can crash activity A, which has the cheapest crash cost/day. Critical Path = 260 days and crash to 250 days; crash activity A = 10($1,500), Cost of crashing to 250 days = $15,000 The new expected path times are: A C D G H I L = 20 + 65 + 55 + 30 + 20 + 30 + 30 = 250 Days If crash to 240 days, Hill can crash activity H or I. if crash activity H, cost of crashing to 240 days =10($2,000) = $20,000. The new expected path times are: A C D G H I L = 20 + 65 + 55 + 30 + 10 + 30 + 30 = 240 Days

Case Studies 2: The Pert Mustang Question 1: Prepare the report that Roberts requested, assuming that the project will begin i m m e d i a t e l y . A s s u m e 4 5 w o r k i n g d a y s a r e a v a i l a b l e t o c o m p l e t e t h e p r o j e c t , including transporting car to Detroit before the auto show begins. Your report s h o u l d b r i e f l y d i s c u s s t h e a s p e c t s o f t h e proposed new business, such as the competitive priorities that Roberts asked about. Answer: Roberts wants to restore her Mustang to mint condition or as close to mint condition as possible, and use it in sales and advertising and take it to auto shows to attract new business within 45 working days. From the activities estimate of times and tasks that need to be done, we identify that there are 22 activities involved in the process starting from order of materials to pull car to the Detroit Auto Show. A table containing the project activities, the time estimates, and the precedence relationship will be prepared, and a network diagram will be drawn to structure the immediate predecessor activities. The critical path activities will be identified to indicate that the project can be completed within 45 working days. RASAS is consists of three car dealerships and this venture into restoration business still can fit into its business. RASAS has noticed that there is a market for this new business because the public is growing interest in this restoration of vintage automobiles, and many people want to own a vintage auto. With RASASs knowledge and experience in the car business, it can be the market leader for this restoration business if it success. However, RASASs operations task should be regard to cost, quality, customer service, and flexibility. To capture the car restoration market, RASAS will have to keep the operation cost low such as the cost of the skill workers and spare parts. The quality of the car will have to be top form in its workmanship, spare parts, safety and finishes. The flexibility for the customer to select the type of cars that they like is very important. RASAS should consider restore vintage car into various form such as mint condition, with or without customization or any other specification that requested by customers. RASAS also has to focus on customer services such as delivery the car on time, handle complaints and after-sale services, has sufficient spare parts in store and provide professional advice to the customers.

Question 2: Construct a table containing the project activities using the letter assigned to each activity, the time estimates, and the precedence relationships from which you will assemble the network diagram. Answer: Activities A B C D E F G H I J K L M N O P Q R S T U V Activities Time (days) 2 30 10 7 1 1 4 6 1 3 5 1 3 1 1 4 1 1 4 7 1 2 Immediate Predecessor A A A E F F F I I I, D E K, L H, J N, O C G, P R, Q B, S S, M T, U Cost ($) 100 2100 800 1750 200 300 1000 1500 200 900 1000 200 210 200 240 2000 100 100 1700 2400 100 1000

Question 3: Draw a network diagram of the project similar to Figure 2.4. Determine the activities on the critical path and the estimated slack for each activity. Answer: For network diagram of the project, refer to Network Diagram 2 (attachment). The critical path activities are A-B-T-V; and the time required is 41 days. The Slack time for each activity are:Sa = 0 Sb = 0 Sc = 15 Sd = 12 Se = 14 Sf = 14 Sg = 21 Sh = 14 Si = 14 Sj = 16 Sk = 14 Sl = 12 Sm = 34 Sn = 12 So = 14 Sp = 12 Sq = 15 Sr = 12 Ss = 12 St = 0 Su = 18 Sv = 0

Question 4: Prepare a project budget showing the cost of each activity and the total for the project. Can the project be completed within the budget? Will the project require more than $3,600 in any week? To answer this question, assume that activities B, C, and D must be paid for when the item is received (the earliest finish time for the activity). Assume that the costs of all other activities that span more than one week can be prorated. Each week contains five work days. If problems exist, how might Roberts overcome that? Answer: The project budget cost:Activities Cost ($)

A 100 B 2100 C 800 D 1750 E 200 F 300 G 1000 H 1500 I 200 J 900 K 1000 L 200 M 210 N 200 O 240 P 2000 Q 100 R 100 S 1700 T 2400 U 100 V 1000 Total Activities Cost= $18,100 The total cost for the activities is $18,100. The car acquired at cost $50,000, so the total project cost is $18,100 + $50,000 = $68,100. The project cost is within the budget ($70,000). To check whether the activity will require more than $3,600 in any week, we can draw a grant chart to calculate the activities cost in 5 working days. (Refer to attachment: Budget Cost)

i.e. The activities cost from days 7 to days 12 give:= $1750+800+250+200+200+240 =$3440 <$3,600 However, the activities cost from days 3 to days 8 give:= $1000+900+1250+1000 =$4150 >$$3,600 (refer to attachment, budget cost: red line) Roberts can start some activities later since some activities have slack time; such as slack for activity k = 14 days and J = 16 days. By adjusting the activities slack time; Roberts can control his budget cost is within $3,600 per week.