Case Study: Anderson-Touche Consulting Services
Anderson-Touche, an international consulting firm, has just received a contract from a medium-size manufacturer to install an Entreprise Resource Planning (ERP) software system. The agreement includes purchase and installation of a new IBM AS/400 minicomputer on which to run the massive ERP program. The client manufacturer desperately needs the new system up and running within 16 weeks so that its production ability is not endangered. It has included in Anderson-Touche’s contract a generous bonus for early completion of the project. It has also included severe penalties for lateness. Alice Schware, Anderson-Touche’s project manager, wants to make sure that the installation progresses smoothly and on time. All activities involved in the ERP project, together with the time estimates for each activity are shown in the following table:
|
Activity
|
Description
|
Immediate Predecessor
|
Optimistic time
|
Most probable time
|
Pessimistic time
|
|
A
B
C
D
E
F
G
H
|
Computer hardware delivery
Modify new software
Install computer
Test new software off-site
Test new network
Training
Run new software on new hardware
Implement new production system and eliminate old one
|
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A
B
C
C
D, E
F, G
|
1
2
1
2
1
1
3
1
|
2
3
2
4
4
2
4
2
|
3
4
3
6
7
9
11
3
|
The project manager asks you to analyze this project. You must write a managerial report, which should be turned in this afternoon by 4 p.m.
a) Develop a project network
b) Develop an activity schedule
c) What is the expected completion time for this project?
d) Identify the critical path and the non-critical activities?
e) What are the chances of completing this project within the expected time computed in question c). Why? Justify your answer
f) What are the chances of completing this project in the 16-week deadline?
g) What are the chances of completing this project in 18 weeks? 19 and 21 weeks?
h) If the variance of the project completion time is the same (does not change) as you found previously, how much should the expected project completion time be shortened to achieve the goal of 85% chance of completion within 16 weeks?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.