QUESTION 1
The following information is available for a large fundraising project.
|
Activity
|
Activity Time (days)
|
Activity Cost ($)
|
Immediate Predecessor(s)
|
|
A
|
3
|
100
|
--
|
|
B
|
4
|
150
|
--
|
|
C
|
2
|
125
|
A
|
|
D
|
5
|
175
|
B
|
|
E
|
3
|
150
|
B
|
|
F
|
4
|
200
|
C, D
|
|
G
|
6
|
75
|
C
|
|
H
|
2
|
50
|
C, D, E
|
|
I
|
1
|
100
|
E
|
|
J
|
4
|
75
|
D, E
|
|
K
|
3
|
150
|
F, G
|
|
L
|
3
|
150
|
G, H, I
|
|
M
|
2
|
100
|
I, J
|
|
N
|
4
|
175
|
K, M
|
|
O
|
1
|
200
|
H, M
|
|
P
|
5
|
150
|
N, L, 0
|
a) Determine the critical path and the expected completion time of the project.
b) Plot the total project cost, starting from Day1 to the expected completion date of the project, assuming the earliest start times for each activity. Compare the result to a similar plot for the latest start times. What implication does the time differential have for cash flows and project scheduling?
QUESTION 2
You are the project manager of a software installation project. You would like to find the minimum-cost schedule for your project. There is a $1000-per-week penalty for each week the project is delayed beyond 25 weeks. In addition, your project team determined that indirect costs are $2,500 per week.
|
Activity
|
Immediate Predecessor
|
Normal Time (weeks)
|
Normal Cost ($)
|
Crash Time (weeks)
|
Crash Cost ($)
|
|
A
|
--
|
5
|
2,000
|
3
|
4,000
|
|
B
|
--
|
8
|
5,000
|
7
|
8,000
|
|
C
|
A
|
10
|
10,000
|
8
|
12,000
|
|
D
|
A, B
|
4
|
3,000
|
3
|
7,000
|
|
E
|
B
|
3
|
4,000
|
2
|
5,000
|
|
F
|
D
|
9
|
8,000
|
6
|
14,000
|
|
G
|
E, F
|
2
|
2,000
|
2
|
2,000
|
|
H
|
G
|
8
|
6,000
|
5
|
9,000
|
|
I
|
C, F
|
9
|
7,000
|
7
|
15,000
|
a) What is the target completion week?
b) How much would you save in total project costs with your schedule?
QUESTION 3:
Recently, you were assigned to manage a project to remodel the seminar room for you company. You are provided with the precedence relationships. In addition, you have asked your team to estimate the amount of time that they expect each of the activities to take. Their responses are shown in the following table:
|
Activity
|
Optimistic
|
Most Likely
|
Pessimistic
|
Immediate Predecessor
|
|
A
|
5
|
8
|
11
|
--
|
|
B
|
4
|
8
|
11
|
--
|
|
C
|
5
|
6
|
7
|
A
|
|
D
|
2
|
4
|
6
|
A
|
|
E
|
4
|
7
|
10
|
B, D
|
a) Construct the network diagram
b) What is the expected completion time of the project?
c) What is the probability of completing the project in 21 days?
d) What is the probability of competing the project in 17 days?