MME 30001 Engineering Management 1 Assignment 2 Individual Assignment PROJECT SCHEDULING (15% of Subject Mark) The Auditorium Construction Swinbume University has planned to construct an 18.000-seat Auditorium for performing arts or as a learning space. For this purpose, the university has created an in-house project team called "Auditorium Syndicate". This Syndicate has formally signed a contract to build this prestigious auditorium for the University and as per the contract; the construction must start by January 1, 2022 and be completed within one year and six months (1.5 years or 18 months). The Auditorium Syndicate has estimated losses of $25,000 per week of delay beyond July 1, 2023. Fred Eddy, the project manager of the syndicate, called a planning meeting, where he expressed great satisfaction at obtaining the contract. He revealed that the syndicate could gain benefit of as much as $450,000 in total which could be distributed between the project team as bonuses if they completed the project as planned. He was confident that the project could be completed on time with an allowance made for the usual delays anticipated in such a large project. In case of delays, their bonuses will be lost to compensate for the estimated losses of $35,000 per week. Valerie Don, the project team leader, agreed that in a normal year only slight delays might develop due to a shortage of labour. However, she reminded the project manager that for such a large project, the syndicate would have to use unionised employees and that the con uction industry labour agreements were to expire on December 31, 2022. Past experience indicated a fifty-fifty chance of a strike. Fred agreed that a strike might cause a problem. Unfortunately, there was no way to change the contract. He inquired about the prospective length of a strike. Valerie figured that such a strike would last either 8 weeks (40% Chance) or possibly 12 weeks (60% chance). Fred was not pleased with these prospects. The chances for delay were mounting and an overhead expense of $6,000 per week would be incurred in case of any delay which gets added over to the estimated losses. The technical details of the project are given in the appendix to this case. The project management team was asked to consider alternatives for coping with the situation. At the end of the week, five proposals were submitted as listed below. 1. Expedite the pouring of seat gallery supports. This would cost $55.000 and cut the duration of the activity by eight weeks. 2. The same as proposal 1, but in addition, put a double shift on the filling for landscaping. A cost of $38,000 would result in an eight-week time reduction. 3. The roof is very important since it precedes several activities. The use of three shifts and some overtime could cut seven weeks off the roofing at an additional cost of only $29,000 4. Do nothing special until December 31, 2022. Then, if a strike occurs, wait until it is over (no other choice) and then expedite all remaining activities. In that case, the duration of any activity could be cut but to no less than one third of its normal duration. The additional cost per activity for any week, which is cut, would be $9.000. 5. Do not take any special action, that is, hope and pray that no strike will occur after December (no cost). Appendix: Details of the Auditorium Project The proposed auditorium is a structure for performing arts with a seating capacity of 18,000. The project begins with getting the site cleared off with temporary structures and debris, this activity of clearing the site will last 12 weeks. Once the site is clear, the work can start simultaneously on the structure itself and on the site landscaping The work on the site landscaping involves subsurface drainage, which lasts 12 weeks, followed by filling for landscaping. Only with the completion of the filling (21 weeks) can the installation of the landscaping plants and trees take place, an activity that consumes 18 weeks. The work on the structure itself starts with excavation followed by the pouring of concrete footings. Each of these activities takes 6 and 7 weeks, respectively. Next comes the pouring of supports for seat galleries (20 weeks), followed by erecting pre-cast galleries (19 weeks). The seat platforms can then be poured (8 weeks) and are ready for painting. However, the painting (6 weeks) cannot begin until the dressing and support rooms are completed (12 weeks). The dressing rooms can be completed only after the roof is erected (12 weeks). The roof must be erected on a steel structure, which takes 8 weeks to install. This activity can start only after the concrete footings are poured. Once the roof is erected, work can start simultaneously on the installation of lights (8 weeks) and on the electronic board and other facilities (6 weeks). Note: There are 28 days in February 2022 and February 2023. The project start date, January 1, falls on a Saturday. (Construction starts on January 1, 2022 and ends July 1, 2023) Questions 1. (a) Prepare the CPM network schedule for the project. (3 marks) 6) What is the normal project duration and what is the completion date? (2 marks) c) Identify the critical activities and critical path. (2 marks) 2. Analyse the five proposals and make recommendations if the risk of labour strike must be avoided altogether. (5 marks) 3. What will be the implications in terms of costs and profits for all possible scenarios and options if chosen? (8 marks) MME 30001 Engineering Management 1 Assignment 2 Individual Assignment PROJECT SCHEDULING (15% of Subject Mark) The Auditorium Construction Swinbume University has planned to construct an 18.000-seat Auditorium for performing arts or as a learning space. For this purpose, the university has created an in-house project team called "Auditorium Syndicate". This Syndicate has formally signed a contract to build this prestigious auditorium for the University and as per the contract; the construction must start by January 1, 2022 and be completed within one year and six months (1.5 years or 18 months). The Auditorium Syndicate has estimated losses of $25,000 per week of delay beyond July 1, 2023. Fred Eddy, the project manager of the syndicate, called a planning meeting, where he expressed great satisfaction at obtaining the contract. He revealed that the syndicate could gain benefit of as much as $450,000 in total which could be distributed between the project team as bonuses if they completed the project as planned. He was confident that the project could be completed on time with an allowance made for the usual delays anticipated in such a large project. In case of delays, their bonuses will be lost to compensate for the estimated losses of $35,000 per week. Valerie Don, the project team leader, agreed that in a normal year only slight delays might develop due to a shortage of labour. However, she reminded the project manager that for such a large project, the syndicate would have to use unionised employees and that the con uction industry labour agreements were to expire on December 31, 2022. Past experience indicated a fifty-fifty chance of a strike. Fred agreed that a strike might cause a problem. Unfortunately, there was no way to change the contract. He inquired about the prospective length of a strike. Valerie figured that such a strike would last either 8 weeks (40% Chance) or possibly 12 weeks (60% chance). Fred was not pleased with these prospects. The chances for delay were mounting and an overhead expense of $6,000 per week would be incurred in case of any delay which gets added over to the estimated losses. The technical details of the project are given in the appendix to this case. The project management team was asked to consider alternatives for coping with the situation. At the end of the week, five proposals were submitted as listed below. 1. Expedite the pouring of seat gallery supports. This would cost $55.000 and cut the duration of the activity by eight weeks. 2. The same as proposal 1, but in addition, put a double shift on the filling for landscaping. A cost of $38,000 would result in an eight-week time reduction. 3. The roof is very important since it precedes several activities. The use of three shifts and some overtime could cut seven weeks off the roofing at an additional cost of only $29,000 4. Do nothing special until December 31, 2022. Then, if a strike occurs, wait until it is over (no other choice) and then expedite all remaining activities. In that case, the duration of any activity could be cut but to no less than one third of its normal duration. The additional cost per activity for any week, which is cut, would be $9.000. 5. Do not take any special action, that is, hope and pray that no strike will occur after December (no cost). Appendix: Details of the Auditorium Project The proposed auditorium is a structure for performing arts with a seating capacity of 18,000. The project begins with getting the site cleared off with temporary structures and debris, this activity of clearing the site will last 12 weeks. Once the site is clear, the work can start simultaneously on the structure itself and on the site landscaping The work on the site landscaping involves subsurface drainage, which lasts 12 weeks, followed by filling for landscaping. Only with the completion of the filling (21 weeks) can the installation of the landscaping plants and trees take place, an activity that consumes 18 weeks. The work on the structure itself starts with excavation followed by the pouring of concrete footings. Each of these activities takes 6 and 7 weeks, respectively. Next comes the pouring of supports for seat galleries (20 weeks), followed by erecting pre-cast galleries (19 weeks). The seat platforms can then be poured (8 weeks) and are ready for painting. However, the painting (6 weeks) cannot begin until the dressing and support rooms are completed (12 weeks). The dressing rooms can be completed only after the roof is erected (12 weeks). The roof must be erected on a steel structure, which takes 8 weeks to install. This activity can start only after the concrete footings are poured. Once the roof is erected, work can start simultaneously on the installation of lights (8 weeks) and on the electronic board and other facilities (6 weeks). Note: There are 28 days in February 2022 and February 2023. The project start date, January 1, falls on a Saturday. (Construction starts on January 1, 2022 and ends July 1, 2023) Questions 1. (a) Prepare the CPM network schedule for the project. (3 marks) 6) What is the normal project duration and what is the completion date? (2 marks) c) Identify the critical activities and critical path. (2 marks) 2. Analyse the five proposals and make recommendations if the risk of labour strike must be avoided altogether. (5 marks) 3. What will be the implications in terms of costs and profits for all possible scenarios and options if chosen? (8 marks)