Below is a PERT Mustang Case Study.

OJECT MANAGEMENT CASE The Pert Mustang of three car dealerships that anese cars, two auto parts Roberts Auto Sales and Service PASAS, sell and service several makes of American and Scene of the car cars, two stores, a large body shop and car painting business and into Vicky Roberts, owner of RASAS, went into the car business when she inherited a Ford dealership from her father. She was able to capitalize on her knowledge and experience to build her business into the ha n d o m empire it is today. Her motto, "Sell 'em today, repair em tomorrowreets a strategy that she refers to in private as "Get 'em coming and going Roberts has always retained a soft spot in her heart for high-performance Mustangs and just acquired a 1965 Shelby Mustang GT 350 that needs a lot of restoration. She also notes the public's growing interest in the restoration of vintage automobiles Roberts is thinking of expanding into the vintage car e. Remove chrome Cost: $200. f. Remove body (doa done until chrome 9. Have fenders rep removed from fran h. Repair doors, trun from frame. Time: Pull engine from 1 day. Cost: $200 1 Remove rust from chassis. Time: 30 WOO k Regrind engine restoration business and needs help in assessing the feasibility of such a more She wants to restore her 1965 Shelby Mustang mint condition or a donato mint condition as possible. If she decides to go into the car restoring business, she can use the Mustang as an exhibit in sales and advertising and take it to auto shows to attract business for the new shop Roberts believes that many people want the thrill of restoring an old car themselves, but they do not have the time to run down all the old parts. Still, others just want to own a vintage auto because it is different and many of them have plenty of money to pay someone to restore an auto for them. Roberts wants the new business to appeal to both types of people. For the first group, she envisions serving as a parts broker for NOS ('new old stock"), new parts that were manufactured many years ago and are still back aged in their original cartons. It can be a time-consuming process to find the right part. RASAS could also machine new parts to replicate those that are hard to find or that no longer exist. chassis. Time: 50 Replace carburetc chassis and after 1 day. Cost: $200 m. Rechrome the chr body first. Time: n. Reinstall engine. pump have been 0. Put doors, hood, must have been first. Time: 1 da p. Rebuild transmit been reinstalled Time: 4 days. e Replace windsh Cost $100 1. Put fenders ba transmission re Paint car. Can ep the focus on the on for resolution to al path and causing In addition, RASAS could assemble a library of parts and body manuals for old cars to serve as an information resource for do-it-yourself restorers. The do-it-yourselfers could come to RASAS for help in compiling parts lists, and RASAS could acquire the parts for them. For others, RASAS would take charge of the entire restoration Roberts asked the director of service operations to take a good look at Mustang and determine what needs to be done to restore it to the condition as in when it came from the factory more than 40 years ago. She wants estore this car in time to exhibit it at the Detroit Auto Show. If the car gets specialy of press, it will be a real public relations coup for RASAS des to enter this new venture. Even if she does not, the car will be a showpiece for the rest of the business. o meet the business he system processes shopping queries for or actual room book- und as the demand for mpany's IT department to restore this car in til a lot of press, it will be a re Roberts decides to enter replaced. Time t Reupholster in Car must have u. Put chrome pe rechromed fi 1. Pull car to the rior and have Roberts we Roberts asked the direct about what is me for the Detroit show in 45 working days wechanic have provides Manager, the boos asked the director of service operations to prepare a report in restoring the car and whether it can be done in Detroit show in 45 working days using PERT/CPM. The parts op manager, and the chief mechanic have provided imes and activities that need to be done, as well Slan for the choiceEDGE risky is this project for the following es recovered by seli the car. In addit proposed busine what RASAS'S C wie, and for cost estimates Imant and the wholstery, windshield, carburetor, bor $100 Mustang and determine what needs to ASAS would take NU U service operations to take a good look at termine what needs to be done to restore it to the condition came from the factory more than 40 years ago. She wants time to exhibit it at the Detroit Auto Show. If the car gets a real public relations coup for RASAS especially if it was in when it came from to restore this car in time to ex a lot of press, it will be a real public re Roberts decides to enter this ne a showpiece for the rest of the business Roberts asked the director of about what is involved in res to enter this new venture. Even if she does not the car will be asked the director of service operations to prepare a report at is involved in restoring the car and whether it can be done in or the Detroit show in 45 working days using PERT/CPM. The parts manager, the body shop manager, and the chief mechanic have provided the following estimates of times and activities that need to be done, as well as cost estimates. den a. Order all needed material and parts (upholstery, windshield, carburetor, and oil pump). Time: 2 days. Cost (telephone calls and labor): $100. b. Receive upholstery material for seat covers. Cannot be done until order is placed. Time: 30 days. Cost: $2,100.231) C. Receive windshield. Cannot be done until order is placed. Time: 10 days. Cost: $800. d. Receive carburetor and oil pump. Cannot be done until order is placed. Time: 7 days. Cost: $1,750. hips that uto parts age yard. inherited nowledge ful mini- reflects a ormance eds a lot storation tage car a move. close to usiness, cake it to e. Remove chrome from body. Can be done immediately. Time: 1 day Cost: $200 f. Remove body (doors, hood, trunk, and fenders) from frame. Cannot be done until chrome is removed. Time: 1 day. Cost: $300. Have fenders repaired by body shop. Cannot be done until body is removed from frame. Time: 4 days. Cost: $1,000. h. Repair doors, trunk, and hood. Cannot be done until body is removed from frame. Time: 6 days. Cost: $1,500. Pull engine from chassis. Do after body is removed from frame. Time: 1 day. Cost: $200. j. Remove rust from frame. Do after the engine has been pulled from the chassis. Time: 3 days. Cost $900. k. Regrind engine valves. Do after the engine has been pulled from the chassis. Time: 5 days. Cost: $1,000. 1. Replace carburetor and oil pump. Do after engine has been pulled from chassis and after carburetor and oil pump have been received. Time: 1 day. Cost: $200 m. Rechrome the chrome parts. Chrome must have been removed from the body first. Time: 3 days. Cost: $210. Reinstall engine. Do after valves are reground and carburetor and oil pump have been installed. Time: 1 day. Cost: $200. 0. Put doors, hood, and trunk back on frame. The doors, hood, and trunk must have been repaired first. The frame must have had its rust removed first. Time: 1 day. Cost: $240. Rebuild transmission and replace brakes. Do so after the engine has been reinstalled and the doors, hood, and trunk are back on the frame. old car rts. Still of them pple. For new old ill pack- find the are hard manuals storers ts lists, uld take Time: 4 days. Cost: $2,000. Replace windshield. Windshield must have been received. Time: 1 day. Cost: $100 Put fenders back on. The fenders must have been repaired first, the transmission rebuilt, and the brakes replaced. Time: 1 day. Cost: $100. Paint Cdl. va Paint car. Cannot be done until the fenders are back on and windshield renlaced. Time: 4 days. Cost: $1,700. Must have received upholstery material first. look at ondition S. wants eople. For ("new old still pack- o find the t are hard manuals restorers. arts lists, rould take MOTO. J Uays. COSC $210. n. Reinstall engine. Do after valves are reground and carburetor and oil pump have been installed. Time: 1 day. Cost: $200. Put doors, hood, and trunk back on frame. The doors, hood, and trunk must have been repaired first. The frame must have had its rust removed first. Time: 1 day. Cost: $240. p. Rebuild transmission and replace brakes. Do so after the engine has been reinstalled and the doors, hood, and trunk are back on the frame. Time: 4 days. Cost: $2,000. 4. Replace windshield. Windshield must have been received. Time: 1 day. Cost: $100 r. Put fenders back on. The fenders must have been repaired first, the transmission rebuilt, and the brakes replaced. Time: 1 day. Cost: $100. S. Paint car. Cannot be done until the fenders are back on and windshield replaced. Time: 4 days. Cost: $1,700. t. Reupholster interior of car. Must have received upholstery material first. Car must have been painted first. Time: 7 days. Cost: $2,400. u. Put chrome parts back on. Car must have been painted and chrome parts rechromed first. Time: 1 day. Cost: $100. V. Pull car to the Detroit Auto Show. Must have completed reupholstery of inte- rior and have put the chrome parts back on Time: 2 days. Cost: $1,000 od look at condition he wants car gets pecially if ar will be a report done in The parts provided e, as well arburetor, $100 until order Roberts wants to limit expenditures on this project to what could be recovered by selling the restored car. She has already spent $50,000 to acquire the car. In addition, she wants a brief report on some of the aspects of the proposed business, such as how it fits in with RASAS's other businesses and what RASAS's operations task should be with regard to cost, quality, customer service, and flexibility. In the restoration business there are various categories of restoration A basic restoration gets the car looking great and running, but a mint-condition restoration puts the car back in original condition--as it was 'when it rolled off the line." When restored cars are resold, a car in mint condition commands a 10 days s placed. much higher price than one that is just a basic restoration. As cars are restored, PROJECT MANAGEMENT they can also be customized. That is something is put on the car that could not have been on the original. Roberts wants a mint-condition restoration for her Mustang without customization. (The proposed new business would accept w business would accept any kind of restoration a customer wanted.) The total budget cannot exceed $70,000 including the $50,000 Roberts has already spent. In addition, Roberts cannot spend more than $3,600 in any week given her present financial position. Even though much of the work will be done by Roberts's own employees, labor and materials costs must be considered. All relevant costs have been included in the cost estimates. briefly discuss the aspects of the proposed new business, such as competitive priorities that Roberts asked about 2. Construct a table containing the project activities using the letter to each activity, the time estimates, and the precedence relationship from which you will assemble the network diagram. 3. Draw a network diagram of the project similar to Figure 3. Determinate activities on the critical path and the estimated slack for each activity. 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 be 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 nem is received (the earliest finish time for the activity. Assume that the costs of all other activities that span more than 1 week can be prorated. Each week contains 5 work days. If problems exist, how might Roberts Over come them? QUESTIONS 1. Using the information provided, prepare the report that Vicky Roberts requested, assuming that the project will begin Immediately. Assume 45 working days are available to complete the project, including trans- porting the car to Detroit before the auto show begins. Your report should Source: This case was prepared by and is used by permission of Dr. Sue P. Siferd, Professor Emerita, Arizona State University Updated September, 2007). Selected References