Office Automation developed a proposal for introducing a new computerized office system that will improve word processing and interoffice communications for a particular company. Contained in the proposal is a list of activities that must be accomplished to complete the new office system project. Use the following relevant information about the activities.

Time (weeks) Cost (E1000s) Activity Description Immediate Predecessor Normal Crash Normal Crash A Plan needs — 10 8 30 70 B Order equipment A 8 6 120 150 C Install equipment B 10 7 100 160 D Set up training lab A 7 6 40 50 E Conduct training course D 10 8 50 75 F Test system C, E 3 3 60 —

a. Develop a project network.

b. Develop an activity schedule.

c. What are the critical activities, and what is the expected project completion time?

d. Assume that the company wants to complete the project in six months or 26 weeks. What crashing decisions do you recommend to meet the desired completion time at the least possible cost? Work through the network and attempt to make the crashing decisions by inspection.

e. Develop an activity schedule for the crashed project.

f. What added project cost is required to meet the six-month completion time?

1 R.C. Coleman’s top management established a required 40-week completion time for the project. Can this completion time be achieved? Include probability information in your discussion. What recommendations do you have if the 40-week completion time is required?

2 Suppose that management requests that activity times be shortened to provide an 80 per cent chance of meeting the 40-week completion time. If the variance in the project completion time is the same as you found in part (1), by how much should the expected project completion time be shortened to achieve the goal of an 80 per cent chance of completion within 40 weeks?