UNIVERSITI TEKNOLOGI MALAYSIA 81310 SKUDAI JOHOR

SHM 4542 ENGINEERING MANAGEMENT

Proposal Analysis (SP Indah & IJK Sdn. Bhd.)

Group members: NUR LATIF AZYZE B. MOHD SHAARI AZYZE RAHMAN B. AMIRULAH 4 SEM/ SEC 3 841216-01-5831 840414-12-6335

Project Proposal Analysis for Two Contractors (SP Indah & IJK Sdn. Bhd.) Title project: Design and build Hospital in Johor Baharu

Activity A B C D E F G H I J K

Description Select administrative and medical staff. Select site and do site survey. Select equipment. Prepare final construction plans and layout. Bring utilities to the site. Interview applicants and fill positions in nursing, support staff, maintenance and security. Purchase and take delivery equipment. Construct the hospital. Develop an information system. Install the equipment. Train nurse and support staff. Table 1: Project Activities

Immediate Predecessors A B B A C D A E,G,H F,I,J

1.

The expected time for each activity. Expected time

Activity Time estimate (week) Optimistic, Most likely, Pessimistic, a + 4m + b te = a m b 6 A 11 12 13 B 7 8 15 C 5 10 15 D 8 9 16 E 14 25 30 F 6 9 18 G 25 36 41 H 35 40 45 I 10 13 28 J 1 2 15 K 5 6 7

12 9 10 10 24 10 35 40 15 4 6

No. path 1 2 3 4 5

Sequence START-A-C-G-J-K-END START-A-I-K-END START-A-F-K-END START-B-D-H-J-K-END START-B-E-J-K-END

Expected duration 67 33 28 69 43

2. Variances for each activity and path. Activity

= 2
ba Optimistic, Most 6

A B C D E F G H I J K No. path 1 2 3 4 5

Time estimate (week) Std deviation likely, Pessimistic, a m b 11 12 13 0.33 7 8 15 1.33 5 10 15 1.67 8 9 16 1.33 14 25 30 2.67 6 9 18 2.00 25 36 41 2.67 35 40 45 1.67 10 13 28 3.00 1 2 15 2.33 5 6 7 0.33

variance 0.11 1.78 2.78 1.78 7.11 4.00 7.11 2.78 9.00 5.44 0.11 Variance 15.55 9.22 4.22 11.89 14.44

Sequence START-A-C-G-J-K-END START-A-I-K-END START-A-F-K-END START-B-D-H-J-K-END START-B-E-J-K-END

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 30 31 32 33 34 35 A B C D E F G H I J K 3. Gantt chart

36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 A B C D E F G H

5 I J K

4.

I F A
START

G J K
END

D E

Figure 1: Network diagram

Expected duration for each path: No. path 1 2 3 4 5 Sequence START-A-C-G-J-K-END START-A-I-K-END START-A-F-K-END START-B-D-H-J-K-END START-B-E-J-K-END Critical path is path 4 (start B D H J K END) = 69 week. The expected length of project = 69 week. Expected duration 67 33 28 69 43

5.

The probability hospital will be operational in 72 week. Path Path total A-C-G-J-K 67 A-I-K 33 A-F-K 28 B-D-H-J-K 69 B-E-J-K 43

2
path 15.55 9.22 4.22 11.89 14.44

from table z path z score score 3.94 1.27 0.898 3.04 12.84 1 2.05 21.42 1 3.45 0.87 0.8087 3.80 7.63 1 Total 0.7262

The probability hospital will be operational in 72 week are 72.62%.

6.

Financial Ratios for SP Indah and IJK Sdn Bhd. Ratio SP Indah Current ratio 2.388 Acid test ratio 1.548 Debt-to-assets ratio 0.329 Inventory turnover ratio 3.888 Asset turnover ratio 2.984 Account receivable turnover 9.577 Profit margin 0.011 IJK Sdn Bhd 2.334 1.485 0.288 4.004 3.053 9.772 0.026

I suggest IJK Sdn Bhd to my boss to this project because this company has higher the profit margin. The current ration for IJK Sdn Bhd about 2.334 is more than 2.0 so the company dont have problem to pay its current obligation. IJK company also have talent to use their assets to produce sales.

7.

Type of Contract Fixed price with escalation is a contract will be used to this project, the

contractor just can be adjusted to incorporate any increase in specified labor and material rates only. Then the cost type contract is fixed fee. The contract require the buyer to pay all costs, plus and agreed upon fee.