Bjorn asks Karin to begin by describing the major activities and the sequence required to design, construct,
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Trygve believes he can start selecting the 12-man or woman crew and securing their housing immediately. He believes it will take six weeks to get a committed crew on-site and three weeks to secure housing for the crew members. Trygve reminds Bjorn that last years vessel must be ready to use for training the moment the crew is on-site until the new vessel is ready for testing. Keeping the old vessel operating will cost $4,000 per week as long as it is used. Once the crew is on-site and housed, they can develop and implement a routine sailing and maintenance training program, which will take 15 weeks (using the old vessel). Also, once the crew is selected and on-site, crew equipment can be selected, taking only two weeks. Then crew equipment can be ordered; it will take five weeks to arrive. When the crew equipment and maintenance training program are complete, crew maintenance on the new vessel can begin; this should take 10 weeks. But crew maintenance on the new vessel cannot begin until the deck is complete and the mast, sails, and accessories have arrived. Once crew maintenance on the new vessel begins, the new vessel will cost $6,000 per week until sea training is complete. After the new ship maintenance is complete and while the boat is being tested, initial sailing training can be implemented; training should take seven weeks. Finally, after the boat is tested and initial training is complete, regular sea training can be implementedweather permitting; regular sea training requires eight weeks. Trygve believes he can put the cost estimates together in a week, given last years expenses.
Bjorn is pleased with the expertise displayed by his team leaders. But he believes they need to have someone develop one of those critical path networks to see if they can safely meet the start deadline for the race. Karin and Trygve agree. Karin suggests the cost estimates should also include crash costs for any activities that can be compressed and the resultant costs for crashing. Karin also suggests the team complete the following priority matrix for project decision making:
TWO WEEKS LATER
Karin and Trygve submit the following cost estimates for each activity and corresponding crash costs to Bjorn (costs are in thousands of dollars):
Bjorn reviews the materials and wonders if the project will come in within the budget of $3.2 million and in 45 weeks. Advise the Whitbread team of theirsituation.
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Related Book For
Project management the managerial process
ISBN: 978-0073403342
5th edition
Authors: Eric W Larson, Clifford F. Gray
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