1410 words - 6 pages

NOTE:

Please note that the workings are provided in the Excel worksheet.

PERT/CPM TECHNIQUES

Task:

A. Use the estimates for Company A in Table 1.1 to do each of the following:

1. Determine the expected completion time for each of the ten project activities, showing all of your work.

Task Optimistic Time to Complete

(weeks) Probable Time to Complete

(weeks) Pessimistic Time to Complete

(weeks) Expected Time to Complete (weeks)

A 2 3 4 3.00

B 5 6 13 7.00

C 3 4 8 4.50

D 10 11 15 11.50

E 4 5 6 5.00

F 8 10 12 10.00

G 4 6 11 6.50

H 8 10 18 11.00

I 3 6 12 6.50

J 2 3 7 3.50

a. Determine the variance for each project activity, showing all of your work.

Task ...view middle of the document...

Weeks to Finish B = 7, so project task F is scheduled is week 7.

e. The week project task I is scheduled to finish

ACTIVITY Latest finish

I 30

Weeks to Finish B+ Weeks to Finish F + Weeks to Finish G + Weeks to Finish I

7 + 10 + 6.5 + 6.5 = 30

4. Determine the probability of completing this project in time for the product launch in 34 weeks, showing all of your work.

Task Expected time Variance (Weeks) Critical Path Total

START

B 7.00 1.78 1.78 7.00

F 10.00 0.44 0.44 10.00

G 6.50 1.36 1.36 6.50

I 6.50 2.25 2.25 6.50

J 3.50 0.69 0.69 3.50

END 2.55 33.50

Probability 57.76% =(34 – 33.5)/2.55

In determining the probability, of completing the project by 34 weeks) only the critical path activities’ duration and variance is relevant. The total duration and variance are as calculated in the above table. From the table, you will observe that the probability is 57.76% that the project will be completed in less than 34 weeks.

B. Assume that Company B has the same expected completion times for project activities as Company A. Use your results from part A1 and the data in Table 1.2 to determine the following, showing all of your work:

1. Maximum reduction in time

Task Expected Time (weeks) Crash

(weeks) Normal Cost Crash

Cost Maximum Reduction in Time

START

A 3 2 $8,400 $11,200 1

B 7 5 $28,000 $40,000 2

C 4.5 3 $18,000 $24,000 1.5

D 11.5 7 $36,800 $44,800 4.5

E 5 3 $14,000 $16,800 2

F 10 6 $20,000 $24,000 4

G 6.5 5 $18,200 $28,000 1.5

H 11 8 $44,000 $64,000 3

I 6.5 4.5 $26,000 $36,000 2

J 3.5 3 $21,000 $36,000 0.5

END

2. Crash cost per week

Task Expected Time to Complete

(weeks)

Crash

(weeks) Normal Cost Crash

Cost Crash Cost per week

START

A 3 2 $8,400 $11,200 $2,800

B 7 5 $28,000 $40,000 $6,000

C 4.5 3 $18,000 $24,000 $4,000

D 11.5 7 $36,800 $44,800 $1,778

E 5 3 $14,000 $16,800 $1,400

F 10 6 $20,000 $24,000 $1,000

G 6.5 5 $18,200 $28,000 $6,533

H 11 8 $44,000 $64,000 $6,667

I 6.5 4.5 $26,000 $36,000 $5,000

J 3.5 3 $21,000 $36,000 $30,000

END

Activity A can be crashed a total of 1 weeks (normal time - crash time = 3 -2 = 1 weeks) at a total crash cost of $2,800 (crash cost - normal cost =...

Find the perfect research document on any subject