Professional Documents
Culture Documents
This chapter covers the topic of scheduling, probably the most extensively covered subject
dealing with project management. In addition to the usual PERT and CPM networks, Gantt
charts, etc., the subject of project uncertainty and risk management is also discussed. The use of
computer simulation and Crystal Ball to generate the approximate distribution of project
completion times to help better understand the implications associated with schedule uncertainty
is also discussed.
4. Will all activities on a noncritical path have the same slack? Why
or why not?
No, all activities on the same non-critical path will not necessarily have
the same slack.
This is because a particular activity may be on multiple paths. When an
activity is on more than one path, its slack is determined by the path with
the least amount of slack.
5. For the following project,
(a) List all predecessors of task 5.
(b) List all predecessors of task 4.
(c) List all predecessors of the network finish (F).
Note: As pointed out in Section 3.3, p.84, only immediate predecessors
should be listed.
(a) Task 4 is the only immediate predecessor of task 5.
(b) Tasks 2 and 3 are both immediate predecessors of task 4.
(c) Task 5 is the immediate predecessor of the network finish (F).
6. What is a dummy activity?
When two activities have the same beginning and ending nodes they do
not have a unique identity in the project network. To solve this problem a
new ending or starting node is created for one of the activities to provide
them with a unique identity. Then a dummy activity or an activity with no
duration is added to preserve the precedence relationship.
7. Consider Figure 5-14. Paths a-b-c and a-b-d converge at activity
f, but we ignore this potential merge problem in the text. Why?
Activities a and b are common to both paths and so do not need to be
considered. They must take the same impact on both paths.
Note: We did consider the partial paths d-g-h and c-f.
8. What is meant by project slack?
If the promised delivery date for a project is greater than the time
required to complete the project, the project is said to have project
slack.
The amount of the project slack is equal to the delivery time minus the
project completion time.
9. When using AON networks, how does one indicate an event such
as a project milestone?
A milestone could be added as a node to the AON network with zero
duration.
10. A probabilistic network has a critical path of 21 days and a .95
probability of completing this path in 24 days. Therefore, the
project has a .95 chance of being finished by the end of the 24 th
day. True or False? Briefly explain your answer.
False.
Only the path claimed to be critical has a 95 percent chance of being
completed within 24 days. However, there may be one or more other
paths that also have a chance of taking longer than 24 days.
If we are comfortable making the assumption that the paths are
independent of one another, then the probability the project will be
completed in 24 days or less can be calculated as the product of the
probabilities that each path is finished on or before day 24.
11. Not uncommonly, the Gantt chart is deceptive in its apparent
simplicity. Briefly explain.
Because the Gantt chart is so easy to construct and read, people may use
this tool with little project management training and no technical
knowledge about the project. One danger is drawing conclusions and
making decisions based on the relatively simple information displayed in
the chart.
12. When activity times are known with certainty, the critical path
is defined as the set of activities on a path from the projects
start event to its finish event that, if delayed, will delay the
completion date of the project. Why must this definition be
modified in situations where the activity times are not known
with certainty?
In cases where the activity times are not known with certainty, it is not
possible to determine the actual duration of each path. Therefore, it is
not possible to determine the critical path a priori.
trade-offs is what is meant by managing the project team while the first
set of goals refers to managing the project.
21. Why do you think scheduling has been the major focus of effort
throughout the history of project management rather than
performance or budgeting?
Performance the performance of a project is measured by three criteria:
is it on time? Is it on budget? And does it meet the agreed-upon
specifications? These are outcomes which depend, to a large extent, on
the effectiveness of the planning process which, in turn, depends on the
quality of the scheduling?
Budgeting as pointed out at the beginning of the chapter, one cannot
prepare a budget without knowing the specifics of each task and the time
period(s) during which the task must be undertaken. The effectiveness of
the budgeting process therefore depends on the accuracy of the
scheduling.
Thus, both performance and budgeting rely on the scheduling and the
more effective that is, the more likely the later stages (i.e., performance
and budgeting) will be.
Solutions to Problems
22.
The expected duration and variance of path a-b-c-f are 44.5 (10 4/6 + 12
1/6 + 12 2/6 +
9 2/6) and 6.47 (1.78 + .25 + 4.00 + .44) respectively.
The probability that this path will take longer than 50 weeks and therefore
interfere with the project completion can be calculated as follows:
z
50 44.5
6.47
2.17
From Appendix A, the area in the upper tail for a z-value of 2.17 can be
easily calculated as 1.5%. This means there is a 98.5% chance that this
path will not interfere with the project being completed in 50 weeks.
The probability that both paths finish by time 50 (assuming the paths are
reasonably independent of one another) is .985 .86 = 84.71%.
23.
Occasionally, students make the assumption that by 95% we mean that
there is a 95% probability that the task will be completed within the range
defined by the optimistic and pessimistic range. In these cases, (b-a)
should be divided by 3.92, rather than 3.3.
The spreadsheet below provides the solutions for the 99+ percent
probability estimates, as well as the 95% estimates using both the 3.92
and 3.3. Students may find the use of 3.92 more intuitive. Using this
factor, the probability that path a-b-d-g-h finishes on or before time 50 is
76.5%.
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Activity
a
b
c
d
e
f
g
h
a-b-d-g-h
Std Dev
Prob
B
Opt.
a
8
11
7
6
10
6
5
4
C
Norm.
m
10
12
12
6
14
10
10
8
D
Pess.
b
16
14
19
6
20
10
17
11
E
TE
10.67
12.17
12.33
6.00
14.33
9.33
10.33
7.83
47.00
F
Var.
((b-a)/6)2
1.78
0.25
4.00
0.00
2.78
0.44
4.00
1.36
7.39
2.72
86.5%
G
H
Var.
Var.
((b-a)/3.92)2 ((b-a)/3.3)2
4.16
5.88
0.59
0.83
9.37
13.22
0.00
0.00
6.51
9.18
1.04
1.47
9.37
13.22
3.19
4.50
17.31
4.16
76.5%
24.43
4.94
72.8%
Key Formulas
Cell E12 =E3+E4+E6+E9+E10 {copy to cells F12:H12}
Cell F13 =SQRT(F12) {copy to cells G13:H13}
Cell F 14 =NORMDIST(50,47,F13,TRUE) {copy to cells G14:H14}
If students follow the text and make the assumption that there is a 5%
chance of completing the tasks faster than the optimistic time estimates
and there is a 5% chance that completing the tasks takes longer than the
pessimistic time estimates, then the probability of path a-b-d-g-h finishing
on or before time 50 is 72.8%
24.
If students assume that by 90% we mean that there is a 90% probability
that the task will be completed with the range defined by the optimistic
and pessimistic range then (b - a) should be divided by 3.29, rather than
2.6.
The spreadsheet below provides the solutions for the 99+ percent
probability estimates, as well as the 90% estimates using both the 3.29
and 2.6. Students may find the use of 3.29 more intuitive. Using this
factor, the probability that path a-b-d-g-h finishes on or before time 50 is
72.7%. If students follow the text and make the assumption that there is
a 10% chance of completing the tasks faster than the optimistic time
estimates and there is a 10% chance that completing the tasks takes
longer than the pessimistic time estimates, then the probability of path ab-d-g-h finishing on or before time 50 is 68.4%
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Activity
a
b
c
d
e
f
g
h
a-b-d-g-h
Std Dev
Prob
B
Opt.
a
8
11
7
6
10
6
5
4
C
Norm.
m
10
12
12
6
14
10
10
8
D
Pess.
b
16
14
19
6
20
10
17
11
E
TE
10.67
12.17
12.33
6.00
14.33
9.33
10.33
7.83
47.00
F
Var.
((b-a)/6)2
1.78
0.25
4.00
0.00
2.78
0.44
4.00
1.36
7.39
2.72
86.5%
Key Formulas
Cell E12 =E3+E4+E6+E9+E10 {copy to cells F12:H12}
Cell F13 =SQRT(F12) {copy to cells G13:H13}
Cell F 14 =NORMDIST(50,47,F13,TRUE) {copy to cells G14:H14}
G
H
Var.
Var.
((b-a)/3.29)2 ((b-a)/2.6)2
5.91
9.47
0.83
1.33
13.30
21.30
0.00
0.00
9.24
14.79
1.48
2.37
13.30
21.30
4.53
7.25
24.57
4.96
72.7%
39.35
6.27
68.4%
25
a. Network diagram.
F
D
ES
0
4
4
8
10
10
8
15
19
EF
4
10
8
10
14
15
11
19
21
LS
0
4
4
8
15
10
12
15
19
LF
4
10
8
10
19
15
15
19
21
Slack
0
0
0
0
5
0
4
0
0
Duration
16
21
21
17
Critical?
No
Yes
Yes
No
d
2
i
5
l
j
One way the critical path can be determined is by identifying all paths and
calculate their duration. As shown below, this project has six paths and
path b-e-h-j-l is the critical path with a duration of 40.
Path
a-d-i-k
a-d-h-j-k
b-e-i-k
b-e-h-j-l
b-f-j-l
c-g-j-l
Duration
29
35
35
35
35
35
Critical?
No
No
No
Yes
No
No
ES
0
0
0
5
7
7
4
16
16
22
24
31
EF
5
7
4
11
16
13
8
22
24
31
34
40
LS
5
0
14
10
7
16
18
16
22
22
30
31
LF
10
7
18
16
16
22
22
22
30
31
40
40
Slack
5
0
14
5
0
9
14
0
6
0
6
0
27.
a.
B
Opt.
a
2
3
4
4
4
3
3
Activity
a
b
c
d
e
f
g
C
Norm.
m
4
5
5
6
5
4
5
D
Pess.
b
6
9
7
10
7
8
8
E
TE
4.00
5.33
5.17
6.33
5.17
4.50
5.17
F
Var.
((b-a)/6)2
0.44
1.00
0.25
1.00
0.25
0.69
0.69
G
H
Var.
Var.
((b-a)/3.92)2 ((b-a)/3.3)2
1.04
1.47
2.34
3.31
0.59
0.83
2.34
3.31
0.59
0.83
1.63
2.30
1.63
2.30
Paths
a-d-f
a-c-e-g
b-e-g
Prob Path Fin by 23
a-d-f
a-c-e-g
b-e-g
100.0%
99.7%
100.0%
100.0%
96.3%
100.0%
99.9%
93.4%
99.8%
99.7%
96.3%
93.1%
Key Formulas:
Cell B13
Cell B14
Cell B15
Cell C18
Cell C22
b.
The precedence diagram using an AOA (Activity on Arrow) network is
as follows:
f
d
a
c
b
g
e
The critical path is a-c-e-g since it has the longest expected duration of 19.5 weeks.
Note: although this path has the longest expected duration, given the uncertainty
associated with the activity times, it may not be the path with the longest actual duration.
c.
Referring to column H in the spreadsheet above, the probability of completing path a-c-eg in 23 weeks or less is 93.4%.
d.
Both of the other two paths have virtually a 100% chance of being completed by week
23.
e.
As shown in the spreadsheet, there is a 93.1% probability of completing the entire project by
week 23.
28.
a. The spreadsheet below was used to calculate the expected time and
variance for each activity.
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
B
Opt.
a
5
4
7
6
4
12
8
7
10
6
7
Activity
a
b
c
d
e
f
g
h
i
j
k
C
Norm.
m
6
4
9
6
5
16
12
9
14
12
9
D
Pess.
b
9
6
15
6
7
17
20
16
18
20
14
TE
6.33
4.33
9.67
6.00
5.17
15.50
12.67
9.83
14.00
12.33
9.50
Expected
Duration
26.33
23.50
32.17
34.67
29.00
Paths
a-d-i
b-e-i
b-f-j
c-g-j
c-h-k
Prob of
Fin Path
c-g-j < 38
F
Var.
((b-a)/6)2
0.44
0.11
1.78
0.00
0.25
0.69
4.00
2.25
1.78
5.44
1.36
G
H
Var.
Var.
((b-a)/3.29)2 ((b-a)/2.6)2
1.48
2.37
0.37
0.59
5.91
9.47
0.00
0.00
0.83
1.33
2.31
3.70
13.30
21.30
7.48
11.98
5.91
9.47
18.11
28.99
4.53
7.25
Variance
2.22
2.14
6.25
11.22
5.39
Variance
7.39
7.11
20.79
37.32
17.92
Variance
11.83
11.39
33.28
59.76
28.70
84.0%
70.7%
66.7%
39.0
42.5
44.6
=NORMDIST(38,$E20,SQRT(F20),TRUE)
copy to cells G25:H25
b. The network
d
a
b
c
e
f
g
j
k
h
c. As shown in the spreadsheet above, this project has five paths. Path c-g-j
has the longest expected duration of 34.67 days although this path may
turn out not to be the critical path given the uncertainty associated with
the activity times.
d. As calculated in the above spreadsheet, the probability that path c-g-j will
be completed in 38 days or less is 66.7%.
e. Assuming the paths are independent, for a 38 day delivery, paths a-d-i
and b-e-i have virtually no chance of delaying the project and therefore
can be ignored.
The probabilities for paths b-f-i and c-h-k are .843 and .954 respectively.
Given the probability that the nominal critical path is .667, the chance
that all three paths will be completed in 38 days is the product of their
individual probabilities or 53.5%.
f. Column F in the spreadsheet above corresponds to the 99+ percent level.
According to the calculations shown, there is an 84% chance that path cg-j will be completed in 38 days or less.
The difference in probabilities is caused by the fact that the estimation of
a and b at the 99+ percent level produces a distribution of activity times
(and thus of path lengths) that is much smaller than the range produced
by estimations at the 90 percent level. The greater uncertainty reduces
that chance that any path will be completed in a specific time.
g. As shown in the spreadsheet, if the estimates were made at the 99+
percent level, the project would have a 90 percent chance of being
completed by day 39. On the other hand, if the estimates were made at
the 90 percent level, the project would have a 90 percent chance of being
completed within 44.6 days.
29.
The spreadsheet below as developed to simulate this project using Crystal
Ball. Cells A12:G12 are Assumption Cells for the activity times based on a
normal distribution with the means in cells E2:E8 and standard deviations
in cells G2:G8. Cells L12:O12 were defined as Forecast Cells.
A
B
Opt
1 Activity
2
A
2
3
B
3
4
C
4
5
D
4
6
E
4
7
F
3
8
G
3
9
10 Activity Activity
A
B
11
12
4.00
5.34
C
Most Likely
4
5
5
6
5
4
5
D
Pess
6
9
7
10
7
8
8
Activity
C
5.17
Activity
D
6.33
E
F
G
Expected Variance Std Dev
4.00
1.47
1.21
5.33
3.31
1.82
5.17
0.83
0.91
6.33
3.31
1.82
5.17
0.83
0.91
4.50
2.30
1.52
5.17
2.30
1.52
Activity
E
5.17
Activity
F
4.51
Activity Path
Path
Path Finish A-D-F A-C-E-G B-E-G
Finished
G
A-D-F A-C-E-G B-E-G Time Critical? Critical? Critical? 23 Weeks?
5.17
14.84 19.51 15.68 19.51
0
1
0
1
a. Based on 1000 replications of the simulation model, path a-d-f had the
longest duration in 7% of the replications. Similarly, paths a-c-e-g and b-
30.
Since the times for activities are now known for activities a - d, updating
the simulation model simply requires replacing the Assumption Cells in
cells A12:D12 with the known times.
After making these changes, the revised probability of the project being
completed by week 23 increases to 98%. With the updated information,
path b-e-g has the longest expected completion time of 19.34 weeks.
However, the expected completion time for the other two paths decreases
and these paths have virtually no chance of taking longer than 23 weeks
to complete. Furthermore, while task b is now known to take its
maximum duration, even if tasks e and g take as long as possible, the
path would only take 24 weeks to complete. Therefore, delaying the
project beyond 23 weeks requires that both tasks e and g go about as
poorly as possible, which is not very likely.
31.
The spreadsheet below was developed to simulate this project using
Crystal Ball. Cells B3:L3 (excluding cell E3) are Assumption Cells for the
activity times based on the triangular distribution and the optimistic, most
likely, and pessimistic times given in the problem. Cells B8:F8 and
B10:B12 were defined as Forecast Cells.
A
1
2
3
4
5
6
7
8
9
10
11
12
Duration
B
Activity
A
6.67
C
Activity
B
4.67
D
Activity
C
10.72
E
Activity
D
6.00
F
Activity
E
5.33
G
Activity
F
15.00
Duration
Critical?
Path
ADI
26.67
0
Path
BEI
24.00
0
Path
BFJ
32.33
0
Path
CGJ
36.72
1
Path
CHK
31.39
0
Project
Duration
36.72
P( < 32)
P( < 34)
P( < 38)
0
0
1
H
Activity
G
13.33
I
Activity
H
10.67
J
Activity
I
14.00
K
Activity
J
12.67
L
Activity
K
10.00
b. Based on 1,000 replications of the model there is an 8%, 20%, and 60%
chance that the project can be completed in 32, 34, and 38 weeks,
respectively.
c. In part e of problem 27, it was determined that there was a 53.5% chance
of completing the project in 38 weeks. In the current simulation, the
probability was calculated to be 60% which is in the same ballpark. This
difference may in part be due to the use of the triangular distribution.
Start
B
L
I
Finis
h
C
F
J
M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
A
Task
A
B
C
D
E
F
G
H
I
J
K
L
M
B
Description
Design package
Order stock from manf.
Org. sales office
Set up packing facility
Select distributors
Hire sales personnel
Select adv. agency
Package initial stocks
Sell to distributors
Train sales personnel
Plan adv. campaign
Ship stock to distributors
Conduct adv. campaign
C
ES
0
0
0
2
6
6
6
13
17
10
8
23
12
D
EF
2
13
6
12
15
10
8
19
23
17
12
29
22
E
LS
5
4
0
7
8
6
13
17
17
10
15
23
19
F
LF
7
17
6
17
17
10
15
23
23
17
19
29
29
G
Slack
5
4
0
5
2
0
7
4
0
0
7
0
7
Together they can work to make sure that each others point of view is taken
into consideration for the steps of the project.
The following is the Gantt chart using MSP with a November 9, 1999 start
date. This start date was chosen because one of the constraints placed on
the project was that it does not begin until after the elections in November.
Elections are usually held the first Tuesday in the month of November. The
case stated that one to two months was estimated as needing to be added to
the project schedule to allow for bad weather conditions during the outside
construction phases of the project (30 - 60 working days). Days of work need
to be added to the duration of each of the steps where work takes place
outside if it will happen during the winter months.
Note: The authors chose to add 30 days to each of the steps affected, step
# 4 and #5. Step #6 is also work done outside, but with the changes made
to #4 and #5, step #6 will not start until the month of April. Students may
also change the calendars to let the workers off for the holidays of 1999 in
addition to those allowed for in 2000. The new ending date is May 18, 2001.
The project will take a total of 30 additional days to complete. By adding 30
days of working time to each of the steps possibly affected by the weather,
we only ended up adding 30 days total to the project.
This is a good discussion point of how the tasks affected by the increased
durations were not both on the critical path - only Step #4 extended the
length of the project. However, the students must keep in mind resource
availability and the increased cost of the project extension.
The project should not start until after the elections in November, and
The building must be ready for occupancy by July of the following year since the board
wanted to target occupancy for the summer months.
The constraint of the building opening by July of the year following construction beginning
cannot be met. No matter when the project begins it takes longer than one year to complete. If
the project begins immediately after the November 1999 elections it will be completed by May
18, 2001, if the project begins in March of 2000 (as recommended by the construction manager)
it will be completed by July 30, 2001.
The constraint of construction beginning after the November elections can be met without any
affect on the project. Meeting the July complete occupancy constraint is possible only if the
project is started in the winter months, this would add cost and time to the project. It would also
make the first units available in April, which is before the targeted summer occupancy. Recall
that the case stated that research showed that most people shopped for assisted living facilities
during the summer months. A summer occupancy could be met by starting the project March 1,
2000, without additional time or cost added to the original estimated project action plan. 45 units
would be available for occupancy as early as June 25, 2001 (see step #9 of Gantt chart with
3/1/00 start date).
March 1, 2000 the entire project will be completed by July 31, 2001.
February 1, 2000 without any schedule changes due to weather conditions, the project
would be completed by June 29, 2001.
By using MSP to change the projects start date, students can easily choose various new start
dates and see the associated project end date.
Question 4: Draw a Gantt Chart of the Marketing Plan and
Implementation Phase of the Project. Determine the start date of
the Marketing Plan phase of the project in order to meet your
recommended facility ready for occupancy date?
Note: We assumed a March 1, 2000 start date for the project.
Below is the Gantt chart for the steps in the Marketing Plan and Implementation phase of the St.
Dismas Assisted Living Project. The action steps were taken directly from the Marketing plan
developed and implemented section of the broad marketing plan that was presented in the case.
To determine the projects start date, you must first determine the start date of the final step in the
project action plan, Implementation of the Marketing Plan. This must be started 5 months
prior to the building being ready for occupancy so that marketing has time to find residents to
move in when the facility is available. The marketing plan must be implemented based on the
date that the first 45 units are ready for residents. This date is June 25, 2001.
In order to determine the start date of the Implementation task, Step #7, one can schedule this
project backwards, we know the completion date, we do not know when to start. Once we enter
the projects completion date, MSP will determine when each step of the project should take
place. First enter all of the tasks names, precedences, and their durations, as shown below:
Next, we must enter this projects overall finish date, using the project information dialog box,
found in the Project menu on the tool bar.
Enter an end date of 6/25/01, and select Schedule from the project finish date. MSP will
automatically determine each steps start and end date to meet the constraint you set. See below:
Question 5: What is the next step the team members must take in
order to complete their action plans?
Each member of the project steering team needs to prepare final action plans, including dates and
resources. The team must also determine the predecessors from outside their specific plan that
link to their plans; for example if a step cannot be completed on the marketing phase of the
project until Legal has completed a step in their project plan, this must be noted on the action
plan. This will enable a complete overall integrated project action plan to be tied to the project
budget, monitored and controlled.
Nutristar
Teaching Purpose: The purpose of this case is to reinforce students skills in analyzing projects
with probabilistic time estimates. The case also provides students with an opportunity to use
spreadsheets to simulate the completion of the project and use the results of the simulation to
perform standard probability calculations.
Abbreviatio
n
A
B
C
D
E
F
G
H
I
J
K
L
M
Using these abbreviations and the information provided in the case, the following AOA network
diagram can be constructed.
F
G
D
L
E
B,
B,
B,
B,
B,
B,
B,
B,
F, G, J, K, M
F, G, J, L, M
F, I, J, K, M
F, I, J, L, M
H, G, J, K, M
H, G, J, L, M
H, I, J, K, M
H, I, J, L, M
A, C, F, G, J, K, M
A,
A,
A,
A,
A,
A,
A,
C,
C,
C,
C,
C,
C,
C,
F, G, J, L, M
F, I, J, K, M
F, I, J, L, M
H, G, J, K, M
H, G, J, L, M
H, I, J, K, M
H, I, J, L, M
A,
A,
A,
A,
A,
A,
A,
A,
D,
D,
D,
D,
D,
D,
D,
D,
F, G, J, K, M
F, G, J, L, M
F, I, J, K, M
F, I, J, L, M
H, G, J, K, M
H, G, J, L, M
H, I, J, K, M
H, I, J, L, M
A,
A,
A,
A,
A,
A,
A,
A,
E,
E,
E,
E,
E,
E,
E,
E,
F, G, J, K, M
F, G, J, L, M
F, I, J, K, M
F, I, J, L, M
H, G, J, K, M
H, G, J, L, M
H, I, J, K, M
H, I, J, L, M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
B
Optimistic
Activity
Time
A
3
B
1
C
0.25
D
0.2
E
0.2
F
2
G
8
H
0.5
I
1
J
0.25
K
0.25
L
0
M
0
C
Most
Likley
12
2
0.5
0.3
0.3
3
12
2
3
0.5
0.5
1
1
D
E
F
G
Pessimistic Expected
Standard
Time
Time
Variance Deviation
24
12.500
12.250
3.500
12
3.500
3.361
1.833
1
0.542
0.016
0.125
0.5
0.317
0.003
0.050
0.6
0.333
0.004
0.067
6
3.333
0.444
0.667
24
13.333
7.111
2.667
4
2.083
0.340
0.583
12
4.167
3.361
1.833
1
0.542
0.016
0.125
1
0.542
0.016
0.125
2
1.000
0.111
0.333
4
1.333
0.444
0.667
Key Formulas:
Cell E3: =(B3+(C3*4)+D3)/6 {copy to cells E4:E15}
Cell F3:
=((D3-B3)/6)^2 {copy to cells F4:F15}
Cell G3
=SQRT(F3) {copy to cells G4:G15}
Next, the actual spreadsheet to simulate the completion of the project can
be developed. As demonstrated in the textbook, one approach is to dedicate
a column to each activity and then generate random activity times. Thus, in
the spreadsheet developed for this case, columns A - M were dedicated to
activities A - M, respectively. Then random numbers were generated for the
activities using Crystal Ball and defining cells A3:M3 as Assumption Cells. A
portion of the simulation model is shown below.
1
2
3
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Act Act Act Act Act Act Act Act Act Act Act Act Act
Path
Path
Path
A
B
C
D
E
F
G
H
I
J
K
L
M ABFGJKM ABFGJLM ABFIJKM
12.50 3.62 0.54 0.32 0.33 3.33 13.33 2.08 4.22 0.54 0.54 1.00 1.37
35.24
35.70
26.13
After generating the random numbers in the Assumption Cells, one column is
dedicated to each path and formulas are entered to calculate the path
completion time based on the random activity times generated. Entering the
formulas is very straightforward since the letters used to label the activities
correspond directly to the column labels. To illustrate, the formula for path A
- B - F- G - J - K - M in row three is: =A3+B3+F3+G3+J3+K3+M3.
To determine the time to complete the project, a final column was entered
that calculates the maximum path completion time across all paths in the
spreadsheet. Then, summary statistics for this column were calculated. One
simulation of 1,000 replications of the project yielded an average project
completion time of 35.85 months with a standard deviation of 4.69 months.
The maximum completion time was 50.83 months and the minimum
completion time was 19.52 months.
Question 3: Develop a histogram to summarize the results of your
simulation.
This histogram created by Crystal Ball is shown below.