PM592 Week 4 Practice Assignment Key

Problems 4-1 through 4-3 (Ungraded) 4-1 Resource leveling problem The following data were obtained from a project to build a pressure vessel: Activity Duration A B C D E F Predecessors 4 weeks 4 weeks 3 weeks 2 weeks 3 weeks 5 weeks --B A,C B D,E Resources/Cost 1 Cutting Platform/$800 day. 1 Sand Blast Machine/$1,000 day. 1 Rolling Mill/$750 day. 1 Automatic Welder/$1,000 day. 1 Rolling Mill/$750 day. 1 Sand Blast Machine/$1,000 day.

The fabricator has only one machine of each type available at the above costs, and operations cannot be split (i.e. once started, the task must finish). Additional equipment can be rented at a 75% cost premium if needed. Hint: A premium implies you pay an amount above and beyond the current amount. a. Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the resources in conflict and the quantity of resource involved. Hint: The key to this problem is the layout you choose for the project. To identify resource conflicts, the schedule will have to include a timescale. b. What is the least cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred? Hint: The Project Manager may have to be creative here to propose the optimal solution. Check answer: There is a 3 day conflict and there is extra cost involved in resolving. Answer: a. Conflict exists during weeks 5, 6, & 7. Both activities C & E require the Rolling Mill; only one Rolling Mill is available. b. Delay Activity E two weeks using slack; rent additional mill to resolve remaining one week conflict so as not to delay the project. Additional cost = $750 x 5(days) x 0.75 = $2,812.50

Document1

Page 1

PM592 Week 4 Practice Assignment Key

4-2 Crashing Exercise: Compressing Project Schedules, Crashing:

Using the network below and the additional information provided, find: (a) The crash cost per day per activity. Hint: The Crash Time is the shortest duration you could complete an activiity in if you crashed it all the way. The Crash Cost is the total cost paid for an activity if completed in the shortest duration. So, the Normal and Crash info provided represent the extremes. (b) Which activities should be crashed to meet a project deadline of 12 days at minimum cost? (c) What is the additional cost as a result of crashing the project? (d) In general when should crashing be used and what are the considerations when making the decision?

Normal Time

Normal cost

Crash Time

Crash Cost

Crash Cost / Day

Actual Days

Actual Crash $

Activity A B C D

(days) 6 3 6 5

(total) $300 250 400 150

(days) 2 2 4 2

(total) $400 280 550 270

(total)

(total)

Document1

Page 2

PM592 Week 4 Practice Assignment Key

Answer: Normal Time Normal cost Crash Time Crash Cost Crash Cost / Day Actual Days Actual Crash $ (a) (total) $25.00 $30.00 $75.00 $40.00 1 1 (total) $0.00 $30.00 $0.00 $40.00 $70.00

Activity A B C D

(days) 6 3 6 5

(total) $300 250 400 150

(days) 2 2 4 2

(total) $400 280 550 270

(a) See table.

(b) CP = B, C, D = 14 days

B for 1 day @ cost of $30.00 D for 1 day @ cost of $40.00 (c) Total crash cost of $70.00

(d) Discussion Crash when the schedule reduction is more important than maintaining the cost.

Document1

Page 3

PM592 Week 4 Practice Assignment Key

4-3 PERT Problem Given a project with the following schedule estimates: Activity Optimistic Pessimistic Most Likely 7 12 5 8 22 20 24 17 6 10 8 4

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

5 7 4 6 15 18 17 14 4 8 5 3

10 14 7 12 26 23 29 22 7 11 9 6

The critical path is B F J

a. What is the expected time for the duration of this project?

b. What is the probability of completing this project in 44 days? What about 38 days?

Document1

Page 4

PM592 Week 4 Practice Assignment Key

Answer: A: Activity TE Variance {(b-a)/6} squared 1.36 0.69 0.25

{a+(4m)+b}/6 B F J 11.50 20.17 9.83

B:

Schedule = Sum of variance for CP = Square root of variance for CP =

41.5 Days 2.31 1.52

C:

44 Days Z =(D-S) / 1.52 = 1.65 Probability (from table) = 0.4501 0.4501

+0.500 =95%

Note: Providing more time to complete the project will increase the probability of completing it on time. 38 Days Z =(D-S) / 1.52 = -2.31

Probability (from table) = (0.4896) (0.4896) +0.500 = 1%

Note: Pulling in the end date of the project will decrease the probability of completing it on time.

Document1

Page 5