PART 2:

Your friend thinks that it would be good for business to do a grand opening on the first day of spring and wants to know if the store will be ready by then. You acknowledge that the activity times in Table 1 are actually still very uncertain. Table 2 shows the optimistic, most likely, and pessimistic estimates for the duration of each activity.

Question 3: What is the probability of completing the project in 30 weeks or less?

25%

18%

2.5%

8%

PART 3:

Figure 1 shows a network diagram of a project indicating the normal time duration of each activity. In this part you are asked to provide a crashing plan to accelerate the duration of this project.

Table 3 shows:

• the expected duration for each activity,
• the crash time (the absolute minimum time in which each activity could be accomplished), and
• the additional cost per day of obtaining that crash time.

Provide a crashing plan to reduce the project duration from 36 days to 33 days in the most cost-efficient way possible.

Hint: Remember that the project duration is reduced one day at a time by selecting the activity on the critical path that requires the lowest additional cost.

Question 4: Which activities will you crash? In which order?

1st) E and A; 2nd) A; 3rd) E

1st) A; 2nd) E; 3rd) A

1st) E; 2nd) A; 3rd) C and E

1st) E; 2nd) E; 3rd) E

PART 3:

Figure 1 shows a network diagram of a project indicating the normal time duration of each activity. In this part you are asked to provide a crashing plan to accelerate the duration of this project.

Table 3 shows:

• the expected duration for each activity,
• the crash time (the absolute minimum time in which each activity could be accomplished), and
• the additional cost per day of obtaining that crash time.

Provide a crashing plan to reduce the project duration from 36 days to 33 days in the most cost-efficient way possible.

Hint: Remember that the project duration is reduced one day at a time by selecting the activity on the critical path that requires the lowest additional cost.

Question 5: What is the cumulative project crashing cost?

20

145

60

105

Problem Set 1 - Project Management PART 1: Predecessors Activity ID A B D E F Table 1 Activity Description Find a location Architectural plans Equipment selection Apply for building and zoning permits Buy the equipment Construction Interior Design Final check-up A B B DE F G Estimated Time (weeks) 4 8 2 4 3 12 3 1 H PART 2: Act. ID No. Activity Description Table 2 Optimistic Estimate (weeks) Pessimistic Estimate (weeks) A B D E Find a location Architectural plans Equipment selection Apply for city permits Buy the equipment Construction Interior Design Final check-up 3 6 1 3 2 9 1 0 Most Likely Estimate (weeks) 4 8 2 4 3 12 3 1 5 10 3 5 4 15 5 2 G H PART 3: Figure 1 B 8 8 A 6 D 9 F 7 H 6 E 14 G 10 Table 3 Crash Time Activity ID No. Normal Time Cost/Day (S) B D E F G H 6 8 8 9 14 7 10 6 5 5 6 5 10 5 9 3 40 30 25 35 20 35 40 50