Quantitave Business Analysis: Project Management

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 1 The following table shows some of the information on the activities of a project that is about to start. Pred a m Activity A 3 2 1 C D E F B.D A,E 6 2 6 6 3 2 7 4 9 2 6 b 9 4 3 8 6 12 3 9 12 . 1 H F B.D 1 10 a) Construct a network for this project. (3 marks) b) Determine the expected time and variance for each activity. (3 marks) c) Determine Earliest Start Time (EST) and Latest Start time (LST) for each activity. (3 marks) d) Find the critical path, project completion time and project variance. (3 marks) e) What is the probability that the project will be finished in 30 months? (3 marks) Question 3 The Faculty of Accountancy of a university is planning to offer a five-year program leading to Master in Accounting. The program will be offered as soon as the planning part has been completed. The faculty has identified the related planning activities, the precedence relationships for the activities and the activity times. These are shown in the following table. Immediate Predecessors a m b Activity D E F G H 9 4 5 3 A A A B B CF D GI EJ 7 2 4 2 1 2 1 2 2 1 17 6 6 10 3 4 3 4 4 3 3 - J 2 2 1 (a) (b) (c) Calculate the expected time and the variance for each activity. (4 marks) Develop a network diagram for this project. (6 marks) What are the expected project completion time and the project variance? (4 marks) The dean of the faculty is planning to begin the program in 24 months. Calculate the probability that the program will start on time. (3 marks) (d) (e) If the dean wants a 95% probability of offering the program on time, how long should the expected project duration be? (3 marks) Question 4 The Clear Water Company is a medium-sized construction and maintenance firm whose business is plumbing and piping systems. Following are activities and costs involved in a water supply pipe maintenance project. The company has 30 days to complete the project. For every one additional day the project is delayed, there will be a RM2.500 penalty charge to the company. Activity Predecessor Normal time (days) Crash time (days) Normal cost (RM) Crash cost (RM) 12 A B C D E F G B,C B,C D E.F 8 4 4 12 4 4 10 6 3 1 9 1 3 3,000 2,000 4,000 1,000 50,000 1,500 15,000 5,000 3,500 7,000 2,500 71,000 3,000 22.000 a) b) Draw the project network. (3 marks) Can the company complete the project on the required time? What will be the cost to complete the project under the normal time including the penalty charged (if any) to the company? (3 marks) Crash the project to the required completion time and calculate the total cost. (6 marks) Should the company complete the project under the normal time and pay the penalty charged for the delay or to crash the project to the required time to avoid the penalty? (3 marks) c) d) QUESTION 5 State whether each of the following statement is TRUE or FALSE. a) The pessimistic time is the greatest amount of time that could be required to complete an activity b) The critical path of a network is the shortest time path through the network c) The latest start time minus the earliest finish time is the slack time for any activity d) In CPM, the crash cost per unit time is the difference in costs divided by the difference in times (crash and normal). Question 6 The Smart Aircraft Co. is ready to begin a project to develop a new fighter airplane for Malaysian Air Force. The company's contract with the Ministry of Defence calls for project completion within 25 months, with penalties imposed for late delivery. The project involves ten activities, where their precedence relationships and multiple time estimates (months) are shown in the following table: Immediate Predecessors Optimistic Time Pessimistic Time Activity B D E F G A B B B. D EG E CF 7 5 6 3 8 10 3 4 6 3 Most likely Time 8 7 9 4 8 13 4 5 8 4 9 8 11 4 8 18 6 6 10 7 - J a) b) Construct a project network diagram for this problem. (6 marks) Find the expected time and variance for each of the activities (3 marks) Determine the critical path, mean and variance of the project. Should the company pay for penalties? (4 marks) c) d) What is the probability of completing the project within 25 months? (2 marks)