Case Study $=$

Southwestern University: $(G{)}^{**}$

After $6$ months of study, much political arm wrestling, and some serious financial analysis, Dr$.$ Martin Starr. president of Southwestern University, had reached a decision. To the delight of its students, and to the disappointment of its athletic boosters. SWU would not be relocating to a new football site, but would expand the capacity at its on$-$campus stadium.

Adding $21,000$ seats, including dozens of luxury skyboxes, would not please everyone. The influential

This integrated study runs throughout the text. Other issues facing Southwestern's football expansion include: $($A$)$ Forecasting game atIendance $($Chapter $4)$; $($B$)$ Quality of facilities $($Chapter $6)$; $($C$)$ Breakeven point for food sales $($Chapter $7)$; $($D$)$ Where to locate a new stadium $($Chapter $8)$; $($E$)$ Inventory planning of football programs $($Chapter $12)$; $($F$)$ Scheduling of campus security officers$/$staff for game days $($Chapter $13).$

football coach, Bo Pitterno, had long argued the need for a first$-$class stadium, one with built$-$in dormitory rooms for his players and a palatial office appropriate for the coach of a future NCAA champion team. But the decision was made, and everyone, including the coach, would learn to live with it$.$

The job now was to get construction going immediately after the $2001$ season ended. This would allow exactly $270$ days until the $2002$ season opening game. The contractor, Hill Construction $($Bob Hill being an alumnus, of course$),$ signed his contract. Bob Hill looked at the tasks his engineers had outlined and looked President Starr in the eye. "I guarantee the team will be able to take the field on schedule next year," he said with a sense of confidence. "I sure hope so$,"$ replied Starr. "The contract penalty of $$10,000$ per day for running late is nothing compared to what Coach Pitterno will do to you if our opening game with Penn State is delayed or can$-$

TABLE $16\mathrm{.}5$ Southwestern University Project

$\backslash$table$[[$Activity$,$DESCRIPTION,PREDECESSOR$($s$),$Time Estimates $($days$),\backslash$table$[[$CRASH$],[$COST$/$DAY$]]],[$OPTIMISTIC$,\backslash$table$[[$MOST$],[$LIKELY$]],$PESSIMISTIC$],[$A$,$Bonding, insurance, tax structuring,$,20,30,40,$$$1,500],[$B$,$Foundation, concrete footings for boxes,A$,20,65,80,$$$3,500],[$C$,$Upgrading skyboxes stadium seating,A$,50,60,100,$$$4,000],[$D$,$Upgrading walkways, stairwells, elevators,C$,30,50,100,$$$1,900],[$E$,$Interior wiring, lathes,B$,25,30,35,$$$9,500],[$F$,$Inspection approvals,E$,0\mathrm{.}1,0\mathrm{.}1,0\mathrm{.}1,0],[$G$,$Plumbing,D$,$ E$,25,30,35,$$$2,500],[$H$,$Painting,G$,10,20,30,$$$2,000],[$I$,$Hardware$/$AC$/$metal workings,H$,20,25,60,$$$2,000],[$J$,$Tile$/$carpeting$/$windows$,$H$,8,10,12,$$$6,000],[\backslash$table$[[$K$]],$Inspection,J$,0\mathrm{.}1,0\mathrm{.}1,0\mathrm{.}1,0],[$L$,$Final detail work$/$cleanup$,$I, K$,20,25,60,$$$4,500]]$

celed." Hill, sweating slightly, did not need to respond. In football$-$crazy Texas, Hill Construction would be mud if the $270-$day target were missed.

Back in his office, Hill again reviewed the data $($see Table $16\mathrm{.}5$ and note that optimistic time estimates can be used as crash times$).$ He then gathered his foremen. "Boys, if we're not $75\%$ sure we'll finish this stadium in less than $270$ days, I want this projeet erashed! Give me the cost figures for a target date of $250$ daysalso for $240$ days. I want to be early, not just on time!"

Discussion Questions

Develop a network drawing for Hill Construction and determine the critical path. How long is the project expected to take?

What is the probability of finishing in $270$ days?

If it is neeessary to erash 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 times.