Homework Two

$1.(50$ points$)$ The Widget Maker Company is bidding for a new job that requires building

four widget prototypes. The company has never built the particular widget before, but

its experts believe that its designers and workers will be able to pick it up with a learning

rate of $80\%.$ The activity of designing and building prototypes will gain from this

learning rate for at least five cycles. The proposal team has come up with the following

action plan and effort estimates for producing the four units.

S$.$ No$.$ Task Effort in hrs Precedence

$1$ Concept development $36$

$2$ Design framework $181$FS

$3$ Design and build first prototype $722$FS

$4$ Ship to customer $3\mathrm{.}63$FS

$5$ Analyze feedback $14\mathrm{.}44$FS$+2$ weeks lag

$6$ Design and build second prototype $57\mathrm{.}63$FS

$7$ Ship to customer $3\mathrm{.}66$FS

$8$ Analyze feedback $14\mathrm{.}47$FS$+2$ weeks lag

$9$ Design and build third prototype $50\mathrm{.}65$FS$,6$FS

$10$ Ship to customer $3\mathrm{.}69$FS

$11$ Analyze feedback $14\mathrm{.}410$FS$+2$weeks lag

$12$ Design and build final prototype $46\mathrm{.}18$FS$,9$FS

$13$ Ship to customer $3\mathrm{.}612$FS

$14$ Update customer design knowledge base $1811$FS$,13$FS

The company plans its work assuming a $90\%$ efficiency of its staff members. Task $2,$ Design

framework, and Task $14,$ Update design knowledge base, require an expert designer who is

available only $50\%$ of the time due to other commitments.

The company has an average labor rate of $$50/$hour$.$ The benefit rate is $30\%.$ Its overhead costs

are $50\%$ and its profit margin is $20\%.$ The project plans are to be developed assuming $8$ hours

per working day and $5$ working days per week.

A$.$ Provide a table with estimated durations for each task taking efficiency and availability in

consideration where applicable. Please round to the nearest tenth of an hour. $(30$ points$)$

HINT: provide a table with a column for allocated hr $($efficiency$)$ and a column for total

task duration hr for each task.

B$.$ What is the total project duration in calendar weeks and completion date that the company

should propose? Assume a start date of Monday, $6$ February $203,$ and that the company

believes its estimates already are generous and no additional time buffer is needed. $(10$

points$)$

C$.$ What is the amount that the company should bid for this project? $(10$ points$)$

$2.(30$ points$)$ Diagram of network is below

$1$

A

$7$

$2$

B

$3$

C

$6$

$3$

D

$3$

$4$

E

$2$

$5$

Activity Max Crash

days available

Normal Cost Total crash

cost assuming

max days

used

Crash

cost$/$day

A $7$ days $3$ $$500$ $$300$

B $3$ days $1$ $$200$ $$150$

C $6$ days $2$ $$500$ $$400$

D $3$ days $2$ $$200$ $$300$

E $2$ days $1$ $$300$ $$250$

Total normal cost $=$

Provide the normal cost at $12$ days and crash cost$/$day values. Determine the critical path. If the

goal is to complete the $$project$$ in $10$ days at the lowest cost, what tasks do you crash? What is

the new total cost?

Code: activity, time

resource units

$1$

A$,10$

$6$

$2$

D$,10$

$2$

$6$

H$,5$

$2$

B$,10$

$43$

E$,5$

$10$

F$,15$

$8$

C$,5$

$4$

$4$ G$,10$

$6$

$5$

I, $5$

$2$

$7$

$3.$ Provide the following $($using Excel or powerpoint may be helpful$)$:

$$ Gantt chart and resource loading chart for the project before leveling $(20$ points$)$

$$ If the total number of resources available is $20,$ which tasks can be moved

$($leveled$)$ to meet the limits$?$

$$ Gantt chart and resource loading chart for the project after leveling $(20$ points$)$

$$ Comment on the effect of leveling $(5$ points$)$