RUSS06-039-051v3 7/29/02 10:24 AM Page 39 6 Project Management Answers to Questions 6-1. CPM/PERT is popular because it provides a picture of the steps of a project, it is easy for managers and participants to understand, and it is easy to apply. 6-2. The goal is to show the precedence relationship of activities in a project. 6-3. A dummy activity is used to show a precedence relationship without the passage of time. It is used most frequently to complete a precedence relationship so that two activities will not have the same start and end nodes. 6-4. The critical path is the longest path in the network. It can be computed by summing the activity times along each path and then seeing which path is the longest. It also is the path with no slack available. 6-5. Slack is the amount of time an activity can be delayed without affecting the overall project duration. It is computed by subtracting the earliest start time for an activity from the latest start time or the earliest finish time from the latest finish time for an activity. 6-6. The mean activity time is computed as t = (a + 4m + b)/6, where a is the optimistic activity time, m is the most likely time, and b is the pessimistic time. The variance is computed as v2 = [(b − a)/6]2. 6-7. Total project variance is computed by summing the variances of the critical path activities. 6-8. The purpose of project crashing is to shorten the project duration at the least possible cost. 6-9. See which activity on the critical path has the minimum crash cost, and reduce this activity duration by the maximum amount or until another path becomes critical. If more than one path is critical, both paths must be reduced by the same amount simultaneously. Repeat this process until the crashing objective is reached. 6-10. The preference should depend on the project, including the perceived degrees of variability in project activities, the ability to determine probabilistic time estimates, and the degree to which probabilistic analysis is required. 6-11. The Gantt chart is a graphical technique with a bar or time line displayed for each activity in the project. However, while it will indicate the precedence relationships between activities, these relationships are usually not as easy to discern (i.e., visualize) as with a network. 6-12. Indirect costs include the cost for facilities, equipment, and machinery, interest on investment, utilities, 6-13. 6-14. 6-15. 6-16. labor, personnel costs, etc. Direct costs are financial penalties for not completing a project on time. In general, project crashing costs and indirect costs have an inverse relationship; crashing costs are highest when the project is shortened, whereas indirect costs increase as the project duration increases. A heavy reliance by the project manager on the network can mask errors in the precedence relationships or missing activities can be overlooked. Attention to critical path activities can be excessive to the point of neglecting other crucial project activities. Obtaining both deterministic and probabilistic time estimates can be difficult. The time estimates can be overly optimistic or pessimistic. For an activity-on-node network, nodes represent project activities and branches show precedence relationships, whereas on an activity-on-arrow network, branches represent activities and nodes are events specifying the end of one activity and the beginning of another. The project team consists of a group of individuals selected because of their special skills, expertise, and experience related to the project. Project planning includes the identification of all project activities and their precedence relationships the determination of activity times, the determination of project duration, comparison of the project time with objectives, and the determination of resource requirements to meet objectives. Project control includes making sure all activities have been identified, making sure the activities are completed in their proper sequence, identifying resources as they are required, and adjusting the schedule to reflect changes. The WBS depends on the “project” the student uses. Figure 6.1 should be used as a guideline. Solutions to Problems 6-1. Weeks Activity 0 1 2 3 4 5 6 7 8 9 10 1–2 1–3 2–4 3–4 39 RUSS06-039-051v3 40 7/29/02 10:24 AM CHAPTER 6 Page 40 Project Management 6-2. Weeks Activity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1–2 1–3 2–4 3–4 3–5 4–6 5–6 Project completion time = 17 weeks Activity Slack (weeks) 1–2 1–3 2–4 3–4 3–5 4–6 5–6 Paths: 1 → 2 → 4 → 6 4 + 8 + 2 = 14 1→2→4→5→6 4 + 8 + 5 + 6 = 23 * 1→2→5→6 4 + 3 + 6 = 13 1→3→5→6 7 + 9 + 6 = 22 1→3→6 7 + 5 = 12 6-4. Paths: 1 → 3 → 5 → 6 ⇒ 10 + 4 + 2 = 16 1 → 3 → 4 → 5 → 6 ⇒ 10 + 5 + 3 + 2 = 20 * 1 → 2 → 4 → 5 → 6 ⇒ 7 + 6 + 3 + 2 = 18 6-5. Activity Time 11 0 11 4 0 4 0 1–2 1–3 2–4 3–4 3–5 4–5 5–6 7 10 6 5 4 3 2 ES EF LS LF Slack 0 0 7 10 10 15 18 7 10 13 15 14 18 20 2 0 9 10 14 15 18 9 10 15 15 18 18 20 2 0 2 0 4 0 0 Critical path = 1-3-4-5-6 The critical path activities have no slack. 6-3. a. Weeks Activity 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 1–2 1–3 2–4 2–5 3–5 4–5 4–6 5–6 3–6 Project completion time = 23 weeks Activity Slack (weeks) 1–2 1–3 2–4 2–5 3–5 4–5 4–6 5–6 3–6 0 1 0 10 1 0 9 0 11 8 6 5 1 7 9 3 5 8 10 9 6 4 5 0 7 12 15 18 4 7 Activity Time 2 5 1–2 1–3 1–4 2–5 2–6 3–5 4–5 4–7 5–7 5–8 6–9 7–8 8–9 ES EF LS LF Slack 0 0 0 8 8 10 9 9 15 15 12 27 31 8 10 9 14 12 15 9 16 27 30 30 31 38 1 0 6 9 16 10 15 20 15 16 20 27 31 9 10 15 15 20 15 15 27 27 31 38 31 38 1 0 6 1 8 0 6 11 0 1 8 0 0 6-7. 4 3 4 Activity Time Critical path = 1-3-5-7-8-9 Project duration = 38 mo. b. 2 6-6. 6 1–2 1–3 2–4 2–6 3–4 3–5 4–6 5–6 6–7 10 7 4 15 6 12 7 0 9 ES EF LS LF Slack 0 0 10 10 7 7 14 19 25 10 7 14 25 13 19 21 19 34 0 5 14 10 12 13 18 25 25 l0 12 18 25 18 25 25 25 34 0 5 4 0 5 6 4 6 0 Critical path = 1-2-6-7 Project completion time = 34 wk. RUSS06-039-051v3 7/29/02 10:24 AM Page 41 CHAPTER 6 6-8. 6-10. Select and hire Train personnel personnel 4 Make personnel Determine d b assignments survey objectives 4 3 f a 1 6 5 2 2 3 5 3 Design c e questionnaire Select target 3 audience a. Paths Events Duration (days) 1→2→4→5→6 1→2→3→4→5→6 1→2→3→5→6 A B C 12 14 13 Path B is the critical path. b. ESij = maximum(EFi) EFij = ESij + tij LSij = LFij − tij LFij = minimum(LSj) ES = 3, EF = 6 LS = 5, LF = 8 1 ES = 8, EF = 12 LS = 8, LF = 12 4 ES = 0, EF = 3 LS = 0, LF = 3 4 3 ES = 12, EF = 14 LS = 12, LF = 14 5 2 3 ES = 3, EF = 8 LS = 3, LF = 8 5 0 6 2 Activity 4 3 2 S=0 5 S=0 S=0 4 3 S=0 5 6 2 3 S=1 6-9. Activity Time 1–2 2–3 2–4 2–5 3–4 3–5 3–6 4–7 5–6 6–8 6–9 7–9 8–9 9–10 2 5 2 4 0 1 3 4 3 3 1 2 0 1 8 12 3 0 9 0 2 3 0 12 7 30 21 20 0 5 16 5 17 6 0 3 ES EF LS LF Slack 0 0 0 8 12 3 3 3 5 21 21 21 21 33 28 51 42 58 58 53 63 75 8 12 3 8 21 3 5 6 5 33 28 51 42 53 28 56 58 63 75 59 63 78 4 0 9 12 12 12 19 18 21 40 46 23 21 52 53 53 42 70 58 72 75 75 12 12 12 12 21 12 21 21 21 52 53 53 42 72 53 58 58 75 75 78 75 78 4 0 9 4 0 9 16 15 16 19 25 2 0 19 25 2 0 12 0 19 12 0 6-11. c. Sij = LSij − ESij S=0 3 1–2 1–3 1–4 2–3 3–6 4–3 4–5 4–6 5–6 6–7 6–8 6–9 6–10 7–12 8–9 9–11 10–11 11–13 11–14 12–15 13–14 14–15 Critical path = 1-3-6-10-11-14-15 Project completion time = 78 wk. ES = 8, EF = 11 LS = 9, LF = 12 ES = 8, EF = 8 LS = 8, LF = 8 S=2 Activity Time 3 3 1 41 Project Management ES EF LS LF Slack 0 2 2 2 7 7 7 7 8 11 11 11 14 14 2 7 4 6 7 8 10 11 11 14 12 13 14 15 0 2 6 4 8 7 8 8 8 11 13 12 14 14 2 7 8 8 8 8 11 12 11 14 14 14 14 15 0 0 4 2 1 0 1 1 0 0 2 1 0 0 Critical path: 1-2-3-5-6-8-9-10. Time until general is ready to battle = 15 days. a b c d e f dummy g h dummy 1–2 2–3 2–5 2–4 3–6 5–6 3–5 3–7 6–7 4–5 Time ES EF LS LF Slack 2 6 4 2 4 5 0 3 2 0 0 2 2 2 8 8 8 8 13 4 2 8 6 4 12 13 8 11 15 4 0 2 4 6 9 8 8 12 13 8 2 8 8 8 13 13 8 15 15 8 0 0 2 4 1 0 0 4 0 4 Critical path = a-b-dummy-f-h or 1-2-3-5-6-7 Project completion time = 15 wk RUSS06-039-051v3 42 7/29/02 10:24 AM CHAPTER 6 Page 42 Project Management 6-12. Activity a m b t ES EF LS LF Slack S2 1–2 1–3 1–4 2–3 2–5 2–6 3–6 4–6 5–7 4–7 6–7 6 2 4 3 7 4 3 5 3 4 2 10 7 8 10 9 12 6 9 20 12 9 15 16 11 15 20 15 9 16 35 16 14 10.16 7.66 7.83 9.66 10.50 11.16 6.00 9.50 19.66 11.33 8.66 0 0 0 10.16 10.16 10.16 19.83 7.83 20.66 7.83 25.83 10.16 7.66 7.83 19.83 20.66 21.33 25.83 17.33 40.33 19.16 34.50 0 18.00 14.33 16.00 10.16 20.50 25.66 22.16 20.66 29.00 31.66 10.16 25.66 22.16 25.66 20.66 31.66 31.66 31.66 40.33 40.33 40.33 0 18.00 14.33 5.83 0 10.33 5.83 14.33 0 21.16 5.83 2.25 5.43 1.35 4.00 4.67 3.35 1.00 3.35 28.41 4.00 4.00 ES EF LS LF Slack S2 0 0 9 9 16 16 19 19 25 25 22 25 25 9 11 16 19 17 21 25 22 25 25 23 27 33 0 7 2 0 2 10 0 2 6 0 2 6 0 4 4 1 9 0 4 1 1 0 0 0 0 1 Expected project completion time = 40.33 wk s = 5.95 Critical path = 1-2-5-7 6-13. f 3 j 6 9 b 1 e c d 2 a b c d e f g h dummy dummy i j k 1–2 1–3 2–3 2–4 3–4 3–6 4–5 4–7 5–6 5–8 7–8 6–9 8–9 8 g a Activity k 5 4 i 7 h a m b t 5 3 4 5 1 1 3 1 0 0 1 2 5 8 12 7 8 1 4 6 2.5 0 0 1 2 8 17 15 10 23 1 13 9 7 0 0 1 2 11 9 11 7 10 1 5 6 3 0 0 1 2 8 0 7 11 9 18 26 19 21 31 25 24 31 25 9 18 18 19 19 31 25 24 31 25 25 33 33 Critical path = a-d-g-dummy-k or 1-2-4-5-8-9 Expected project completion time = 33 wk s = 3.87 r(x ≤ 40) x − µ 40 − 33 = = 1.81 σ 3.87 P = ( x ≤ 40) = 0.9649 Z= m= 33 x = 40 Time (days) RUSS06-039-051v3 7/29/02 10:24 AM Page 43 CHAPTER 6 43 Project Management 6-14. a, b, c, d. Activity a m b t ES EF LS LF Slack S2 1–2 1–3 1–4 2–5 2–6 3–5 4–5 4–7 5–8 5–7 7–8 6–9 8–9 4 6 2 3 1 3 0 2 9 5 5 7 3 8 10 10 6 4 6 0 8 15 12 6 20 8 12 15 14 9 13 18 0 12 22 21 12 25 20 8.00 10.16 9.33 6.00 5.00 7.50 0 7.66 15.16 12.33 6.83 18.66 9.16 0 0 0 8.00 8.00 10.16 9.33 9.33 17.66 17.66 30.00 13.00 36.83 8.00 10.16 9.33 14.00 13.00 17.66 9.33 17.00 32.83 30.00 36.83 31.66 46.00 3.66 0 8.33 11.66 22.33 10.16 17.66 22.33 21.66 17.66 30.00 27.33 36.83 11.66 10.16 17.66 17.66 27.33 17.66 17.66 30.00 36.83 30.00 36.83 46.00 46.00 3.66 0 8.33 3.66 14.33 0 8.33 13.00 4.00 0 0 14.33 0 1.77 2.25 4.00 1.00 4.00 6.25 0 2.76 4.67 7.08 1.35 9.00 8.01 ES EF LS LF Slack S2 0 2.50 2.50 2.50 8.00 8.00 8.00 8.00 9.50 12.50 12.50 12.50 17.00 17.00 2.50 5.50 8.00 9.33 8.00 9.50 11.50 12.50 12.50 14.50 14.16 17.00 17.00 18.00 0 7.50 2.50 2.66 10.50 8.00 9.00 10.50 9.50 15.00 15.33 12.50 17.00 17.00 2.50 10.50 8.00 9.50 10.50 9.50 12.50 15.00 12.50 17.00 17.00 17.00 17.00 18.00 e. Critical path = 1-3-5-7-8-9 f. Expected project completion time = 46 mo s = 5 mo 6-15. a, b, c, d. Activity a m b 1–2 2–4 2–3 2–5 3–4 3–5 3–6 4–7 5–6 7–9 6–9 6–8 8–9 9–10 1 1 3 3 0 1 2 2 1 1 1 2 0 1 2 3 5 6 0 1.5 3 4 3 2 1 4 0 1 6 5 10 14 0 2 7 9 5 3 5 9 0 1 t 2.50 3.00 5.50 6.83 0 1.50 3.50 4.50 3.00 2.00 1.66 4.50 0 1.00 e. Critical path = 1-2-3-5-6-8-9-10 f. Expected project completion time = 18 months s = 1.97 6-16. Z= 0 5.00 0 0.16 2.50 0 1.00 2.50 0 2.50 2.83 0 0 0 0.694 0.436 1.35 3.35 0 0.026 0.689 1.35 0.436 0.109 0.436 1.35 0 0 x − µ 50 − 46 4 = = = 0.80 σ 5 5 From normal table, p = 0.2881 0.5000 − 0.2881 = 0.2119 probability that the project will exceed 50 mo. 6-17. a, b. d 2 1 m = 46 s = 40 Time (months) 50 e a p=? b 6 5 3 h 0 7 f 9 i c j 4 g 8 k 10 RUSS06-039-051v3 44 7/29/02 10:24 AM CHAPTER 6 Activity a b c d e f g Dummy Dummy h Dummy i j k 1–2 1–3 1–4 2–6 2–5 3–7 4–8 5–6 6–7 6–9 7–8 7–9 8–9 9–10 Page 44 Project Management a m b t ES EF LS LF Slack 1 2 1 4 3 10 5 0 0 2 0 1 2 2 2 5 3 10 7 15 9 0 0 3 0 4 5 2 3 8 5 25 12 25 14 0 0 7 0 6 10 2 2.00 5.00 3.00 11.50 7.16 15.83 9.16 0 0 3.50 0 3.83 5.33 2 0 0 0 2.00 2.00 5.00 3.00 9.16 13.50 13.50 20.83 20.83 20.83 26.16 2.00 5.00 3.00 13.50 9.16 20.83 12.16 9.16 13.50 17.00 20.83 24.66 26.16 28.16 7.33 0 8.66 9.33 13.66 5.00 11.66 20.83 20.83 22.66 20.83 22.33 20.83 26.16 9.33 5.00 11.66 20.83 20.83 20.83 20.83 20.83 20.83 26.16 20.83 26.16 26.16 28.16 7.33 0 8.66 7.33 11.66 0 8.66 11.66 7.33 9.16 0 1.50 0 0 c. Critical path = b-f-dummy j-k or 1-3-7-8-9-10 d. Expected project completion time = 28.17 weeks; s = 3.00 e. S2 1.09 1.00 0.436 12.25 2.25 6.25 2.25 0 0 0.689 0 0.689 1.77 0 6-18. p =? 15 m = 18 s = 1.97 Time (days) p=? Z= m = 28.16 s=3 Time (weeks) 35 Z= x − µ 35 − 28.16 6.84 = = = 2.28 σ 3 3.00 From normal table, p = 0.4887 0.5000 − 0.4887 = 0.0113 probability that the company will be fined. x − µ 15 − 18 = = −1.52 σ 1.97 From normal table, p = 0.4357 0.5000 − 0.4357 = 0.0643 probability that preparations would be in time. RUSS06-039-051v3 7/29/02 10:24 AM Page 45 CHAPTER 6 45 Project Management 6-19. Activity a m b t ES EF LS LF Slack S2 1–2 1–4 1–6 2–3 3–4 4–7 4–8 4–5 3–9 5–8 6–8 6–13 7–8 8–10 8–11 9–13 10–12 11–12 12–13 1 4 20 4 2 8 10 5 6 0 1 5 0 5 4 5 0 5 1 3 6 35 7 3 12 16 9 8 0 2 8 0 10 7 7 0 9 3 5 10 50 12 5 25 21 15 14 0 2 12 0 15 10 12 0 20 7 3.00 6.33 35.00 7.33 3.16 13.50 15.83 9.33 8.66 0 1.83 8.16 0 10.00 7.00 7.50 0 10.16 3.33 0 0 0 3.00 10.33 13.50 13.50 13.50 10.33 22.83 35.00 35.00 27.00 36.83 36.83 19.00 46.83 43.83 54.00 3.00 6.33 35.00 10.33 13.50 27.00 29.33 22.83 19.00 22.83 36.83 43.16 27.00 46.83 43.83 26.50 46.83 54.00 57.33 7.50 14.66 0 10.50 17.83 23.33 21.00 27.50 41.16 36.83 35.00 49.16 36.83 44.00 36.83 49.83 54.00 43.83 54.00 10.50 21.00 35.00 17.83 21.00 36.83 36.83 36.83 49.83 36.83 36.83 57.33 36.83 54.00 43.83 57.33 54.00 54.00 57.33 7.50 14.66 0 7.50 7.50 9.83 7.50 14.00 30.83 14.00 0 14.16 9.83 7.16 0 30.83 7.16 0 0 0.436 1.00 25.00 1.77 0.25 8.01 3.35 2.76 1.77 0 0.029 1.16 0 1.66 1.00 1.16 0 2.50 1.00 To be 90 percent certain of delivering the part on time, RusTech should probably specify at least 50.3 or 51 weeks in the contract bid. Expected completion time = 57.33 days σ = 5.77 x − µ 67 − 57.33 Z= = = 1.68 σ 5.77 6-21. P(x ≤ 67) = 0.9535 8 l 11 6-20. e 3 1 b 1 a 2 6 g c 4 11 h l 7 d 5 j 9 n Critical path = a-d-j-n-o Expected project completion time = 45 wk σ = 4.10 Since probability is 0.90, Z = 1.29. x − 45 4.10 x − 45 = 5.29 x = 50.3 1.29 = 2 c d 3 b 10 i 6 9 m 12 q 13 j e 4 7 f 5 o i a m k o h 8 f g n k p 10 The activity schedule, critical path, expected project time and variance determined using POM for Windows as follows. Project completion time = 118.6667 Project standard deviation = 5.86 RUSS06-039-051v3 46 7/29/02 10:24 AM CHAPTER 6 a b c d e f g h i j k l m n o p q Page 46 Project Management Activity Time Early Start Early Finish Late Start Late Finish Slack 15 8.8333 24.1667 19.5 8.1667 13.6667 20.1667 25 14.6667 23 8.6667 7.1667 5 4.3333 7 5.5 20.83333 0 0 15 39.1667 39.1667 47.3333 61 58.6667 58.6667 58.6667 81.6667 83.6667 73.3333 90.8333 90.8333 90.3333 97.8333 15 8.8333 39.1667 58.6667 47.3333 61 81.1667 83.6667 73.3333 81.6667 90.3333 90.8333 78.3333 94.6667 97.8333 95.8333 118.6667 0.0 64.5 15 39.1667 51.5 59.6667 73.3333 58.6667 78.1667 61.8333 84.8333 83.6667 92.8333 93.5 90.8333 113.1667 97.8333 15 73.3333 39.1667 58.6667 59.6667 73.3333 93.5 83.6667 92.8333 84.8333 93.5 90.8333 97.8333 97.8333 97.8333 118.6667 118.6667 0 64.5 0 0 12.3333 12.3333 12.3333 0 19.5 3.1667 3.1667 0 19.5 3.1667 0 22.8333 0 Activity std dev a b c d e f g h i j k l m n o p q 1.6667 1.1667 2.5 2.1667 1.1667 2.3333 1.5 3.3333 2 2.3333 1.3333 1.5 0.6667 1 1 0.8333 2.5 Critical path = a-c-d-h-l-o-q µ = 118.67 σ = 5.85 x − µ 120 − 118.67 Z= = 0.227 σ 5.85 P( x ≤ 120) = 0.59 b. Present (normal) critical path = 1-2-4 Normal critical path time = 30 wk Crash critical path (all crash time) = 1-4 Maximum possible project crash time = 20 wk c. Normal cost = 3950 Crashed project cost = 4700 Start node End node Normal time Crash time Normal cost Crash cost 1 1 1 2 3 2 4 3 4 4 20 24 14 10 11 8 20 7 6 5 1,000 1,200 700 500 550 3950 1,480 1,400 1,190 820 730 5 a b c d e Crash cost/pd a b c d e Crash by Crashing cost 10 4 0 0 5 400 200 0 0 150 750 40 50 70 80 30 6-23. c 2 6-22. a. 20 2 a 14 3 d 10 24 1 4 4 g 5 1 h 11 b e 3 6 f RUSS06-039-051v3 7/29/02 10:24 AM Page 47 CHAPTER 6 Normal critical path = 1 → 2 → 5 → 6 Normal critical path time = 36 wk Project completion time = 36 Normal cost = 14400 Minimum project completion time = 22 Crash cost = 23,250 a b c d e f g h Crash time Normal cost Crash cost Crash cost/pd Crash by 16 14 8 5 4 6 10 15 8 9 6 4 2 4 7 10 2,000 1,000 500 600 1,500 800 3,000 5,000 4,400 1,800 700 1,300 3,000 1,600 4,500 8,000 300 160 100 700 750 400 500 600 8 5 2 1 1 0 2 5 Normal time End node 1 1 2 2 3 3 4 2 3 3 4 4 5 5 a b c d e f g 2,400 800 200 700 750 0 1,000 3,000 Normal time Crash time 8 10 5 3 6 3 4 5 7 3 1 4 3 3 Crashing cost/pd Crash by 100 50 200 100 75 0 200 3 2 2 0 2 0 1 a b c d e f g Crashing cost a b c d e f g h i j k 47 6-24. Project completion time = 23 Normal cost = 1500 Minimum project completion time = 15 Crash cost = 2650 Normal time a b c d e f g h Project Management Normal cost 100 250 400 200 150 100 300 Crash cost 400 400 800 400 300 100 500 Crashing Cost 300 100 400 0 150 0 200 6-25. Project completion time = 33 Normal cost = 28800 Minimum project completion time = 26 Crash cost = 33,900 Start node End node Normal time Crash time 9 11 7 10 1 5 6 3 1 2 8 7 9 5 8 1 3 5 3 1 2 6 4,800 9,100 3,000 3,600 0 1,500 1,800 0 0 0 5,000 6,300 15,500 4,000 5,000 0 2,000 2,000 0 0 0 7,000 Normal cost 750 3,200 500 700 0 250 200 0 0 0 1,000 Crash by Crashing cost 2 0 0 2 0 0 1 0 0 0 2 1,500 0 0 1,400 0 0 200 0 0 0 2,000 Critical path = 1-2-4-5-8-9 Crashing cost = $5,100 Total network cost = $33,900 RUSS06-039-051v3 48 7/29/02 10:24 AM CHAPTER 6 Page 48 Project Management 6-26. b a 1 d 2 e 3 4 f 6 h j 8 c 9 i 5 Project a b c d e f g h i j g 7 Activity Time ES EF LS 23 3 3.167 4.167 2.833 5 1.833 5.833 3.833 4.167 2.167 0 0 0 3 5.833 10.833 10.833 12.667 16.667 20.833 3 3.167 4.167 5.833 10.833 12.667 16.667 16.5 20.833 23 0 7.667 6.667 3 5.833 15.167 10.833 17 16.667 20.833 LF Slack 3 10.833 10.833 5.833 10.833 17 16.667 20.833 20.833 23 0 7.667 6.667 0 0 4.333 0 4.333 0 0 Probability the project will be completed in 21 days? x − µ 21 − 23 = = −1.18 σ 1.70 P( x ≤ 21) = .119 Z= 6-27. 7 h k i 2 6 b a 1 4 e 5 12 l f n 8 g c r 11 j d 3 p o 15 q 13 10 m u s 9 t 14 Standard Deviation 2.028 0.667 0.5 0.833 0.5 1 0.167 0.833 0.5 0.5 0.5 RUSS06-039-051v3 7/29/02 10:24 AM Page 49 CHAPTER 6 a-e-f-g-j-o-p or 1-4-5-8-10-11-12-15 Project duration = 91.667 σ = 3.3082 From January 20 to April 29 is 101 days. x−µ Z 101 − 91.667 = 3.3082 = 2.82 P( x ≤ 101) = .9976 P( x ≤ 101) = CASE: Bloodless Coup Concert t v 1–2 1–3 2–3 2–4 2–5 5–6 5–7 4–9 6–9 7–9 3–9 3–8 8–9 4.17 5.33 2.17 5.50 3.50 4.17 3.00 3.00 3.33 2.00 6.33 5.50 0.00 0.69 0.44 0.25 1.37 1.37 0.69 0.69 0.11 0.44 0.11 2.79 3.35 0.00 ET = 9.67 LT = 12.17 4 Hotel arrangements Press conference s = 2.50 5.50 s = 2.50 3.00 ET = 4.17 LT = 4.17 ET = 15.17 LT = 15.17 ET = 11.84 LT = 11.84 3.33 2 Union 9 6 Hire Secure Set up negotiations stagehands s=0 stage auditorium 3.50 Assign s=0 s=0 s = 0 ushers 4.17 5 s = 2.50 s = 2.50 Hire 2.00 1 ushers 2.17 ET = 7.67 3.00 LT = 7.67 s = 3.31 ET = 0 s = 2.50 0 Dummy LT = 0 7 Print Advertise tickets promotion ET = 10.67 Hire LT = 13.17 preliminary concert act 6.33 5.33 3 ET = 6.34 LT = 8.84 49 Activity “n,” send out acceptance letters, has ES = 45.83 (March 6) and LF = 66.17 (March 20), so it appears the club would meet the deadline of March 30 to send out acceptance letters. Activity “q,” send out schedules, has ES = 66.16 (March 26) and LS = 83.50 (April 14) and LF = 91.67, so it seems likely the club would meet the deadline of April 15 for sending out game schedules. The critical path is: Activity Project Management Sell tickets 5.50 s = 3.33 8 ET = 11.84 LT = 15.17 RUSS06-039-051v3 50 7/29/02 10:24 AM CHAPTER 6 Page 50 Project Management Activity a m b 1–2 1–3 2–3 2–4 2–5 5–6 5–7 4–9 6–9 7–9 3–9 3–8 8–9 2 4 1 3 1 2 1 2 2 1 2 1 0 4 5 2 5 3 4 3 3 3 2 6 5 0 7 8 4 10 8 7 5 4 6 3 12 12 0 t 4.16 5.33 2.16 5.50 3.50 4.16 3.00 3.00 3.33 2.00 6.33 5.5 0 ES EF LS LF Slack sd(S) 0 0 4.16 4.16 4.16 7.66 7.66 9.66 11.83 10.66 6.33 6.33 11.83 4.16 5.33 6.33 9.66 7.66 11.83 10.66 12.66 15.16 12.66 12.66 11.83 11.83 0 3.50 6.66 6.66 4.16 7.66 10.16 12.16 11.83 13.16 8.83 9.66 15.16 4.16 8.83 8.83 12.16 7.66 11.83 13.16 15.16 15.16 15.16 15.16 15.16 15.16 0 3.50 2.50 2.50 0 0 2.50 2.50 0 2.50 2.50 3.33 3.33 0.83 0.66 0.50 1.16 1.16 0.83 0.66 0.33 0.66 0.33 1.66 1.83 0 Expected project completion time = 15.17 days σ = 1.79 x − µ 18 − 15.17 Z= = = 1.58 σ 1.79 P( x ≤ 18) = 0.9429 CASE SOLUTION: Moore Housing Contractors Following is the CPM/PERT network for building a house. 13 Grading Gutters Drain Tiles o d p 12 15 Landscaping Roof n 1 a 2 b c 3 Excavate Foundation f 4 Framing 6 Insulation e Furnace 5 g 7 k i 9 l r 11 Windows Brickwork j Electrical Sheetrock Sub-floors m q 8 10 Finish Carpentry 14 Project completion time = 45.8333 Project standard deviation = 2.409472 Bathrooms u 16 20 Lights x Paint 18 t Kitchen h Floors w s Basement floor Plumbing 19 17 v RUSS06-039-051v3 7/29/02 10:24 AM Page 51 CHAPTER 6 a b c d e f g h i j k l m n o p q r s t u v w x Project Management Activity time Early Start Early Finish Late Start Late Finish Slack Activity std dev 4.1667 3.1667 3.8333 2.1667 2 3.8333 3.1667 4.1667 2.8333 2.1667 5.1667 6.5 8.3333 3.3333 2.3333 3.5 4.1667 6.3333 5.8333 4.3333 3.3333 6.3333 5 2.8333 0 4.1667 7.3333 7.3333 7.3333 11.1667 9.3333 9.3333 15 15 12.5 17.8333 17.6667 24.3333 27.6667 30 26 33.5 30.1667 30.1667 30.1667 34.5 40.8333 40.8333 4.1667 7.3333 11.1667 9.5 9.3333 15 12.5 13.5 17.8333 17.1667 17.6667 24.3333 26 27.6667 30 33.5 30.1667 39.8333 36 34.5 33.5 40.8333 45.8333 43.6667 0.0 4.1667 7.8333 33.83333 7.3333 11.6667 9.3333 13.5 21 15.5 12.5 23.8333 17.6667 30.3333 33.6667 36 26 39.5 35 30.1667 31.17 34.5 40.8333 43 4.1667 7.3333 11.6667 36 9.3333 15.5 12.5 17.6667 23.8333 17.6667 17.6667 30.3333 26 33.6667 36 39.5 30.1667 45.8333 40.8333 34.5 34.5 40.8333 45.8333 45.8333 0.0 0.0 05 26.5 0.0 0.5 0.0 4.1667 6 0.5 0.0 6 0.0 6 6 6 0 6 4.8333 0 12.3333 0 0 2.1667 05 0.5 0.5 0.5 0.3333 0.5 0.5 0.8333 0.5 0.5 0.8333 0.8333 1 0.6667 0.6667 0.8333 0.5 1 1.5 1 0.6667 1 1 0.5 51 Critical Path for Moore Contractors Critical path: a-b-e-g-k-m-q-t-v-dumvw-w. Notice that the expected completion time is 45.83 days which is very close to the realtor’s due date for completion. The probability of finishing in 45 days is 0.3647 36.47% is not a very high probability that the contractor will complete a house within 45 days thus the Moores should probably inflate their bid.