Concept explainers
Case summary: Major Design Corporation is a 3,500-employee firm with annual revenues of more than $1 billion. The firm offers full services and is divided into five geographically based global sales divisions. MDC was selected by the city of Saratoga to design a new, 10-million-gallon-per-day surface water intake and transmission main. This project is touted as an “alternative” water supply project because the water source is not a historically used source. The project will increase the long-term sustainability of the city because it will diversify the city’s water supply portfolio and recycle water. The project will also minimize the need for additional withdrawals from historic water sources, which have become less productive and more highly regulated in the past 10 years, as the city’s population continues to grow. Other green benefits of the project include reduced environmental impacts on the historic water sources and a reduced carbon footprint, as the irrigation water requires less energy-intensive treatment than the city’s other drinkable water sources.
MR J manages about six engineering projects at any one time, so the project is to be analyzed for ways to complete it in 35 weeks. The results are to be analyzed.
Interpretation: The way of modeling the uncertainties in activity times is to be determined.
Want to see the full answer?
Check out a sample textbook solution- Consider a project with seven tasks. Three tasks – tasks 3, 4, and 5 – require a specific resource for completion; all needed resources must be available at the site before a task can be started. Task Duration Predecessor (s) Units of Value of Resource Completed Task Needed 3 3 10 $4000 3 1 10 S3000 3 12 $5000 1 4 7 2, 5,6 Each resource unit cost $100; no quantity discounts are available. In addition, it costs $2 per unit per time period to hold this resource in stock, and it costs $45 just to place an order for materials (independent of the number of units ordered). When should each task in the project be started and when and how many resources should be ordered to minimize total project costs? 1. 1, en en 1. 2. enarrow_forwardYou are in charge of a project at the local community center. The center needs to remodel one ofthe rooms in time for the start of a new program. Delays in the project mean that the center mustrent other space at a nearby church at additional cost. Time and cost data for your project arecontained in below table. Your interest is in minimizing the cost of the project to the communitycenter.Using the normal times for each activity, what is the earliest date you can complete the project?Suppose the variable overhead costs are $50 per day for your project. Also, suppose that thecenter must pay $40 per day for a temporary room on day 15 or beyond. Find the minimum-costproject schedule using below format.The AON diagram for the community center project is below. Crash 4 times and find total cost.arrow_forwardDraw a network diagram showing the linkage between these activities from start to finish. For the diagram, each activity should be labelled alphabetically ie. A, B, C… etc. PERT Formula: TE = (O + 4T + P) / 6 TE = Pert Expected Time Duration, O = Optimistic estimate, P = Pessimistic estimate, T = Most Likely (Typical) estimate Activity Predecessor Optimistic Most Likely Pessimistic Duration Duration in Weeks A — 2 3 4 B — 4 5 7 C B 1 2 3 D C & E 0.5 1 1.5 E B 0.5 1 1.5 F C 2 3 4 G F 2 3 4arrow_forward
- Normal Time Problem 1 You are the manager of a project to improve a billing process at your firm. The following table contains the data you will need to conduct crashing of the project duration. Indirect costs are $1,600 per week, and penalty costs are $1,200 per week after Week 12. Activity Immediate Predecessor(s) Crash Time (weeks) Normal (Direct) Cost Crash Cost (weeks) ($) ($) A 4 1 5,000 8,000 B 5 2 8,000 11,000 C A 1 1 4,000 4,000 Ꭰ B 6 3 6,000 12,000 E B, C 7 6 4,000 7,000 F Ꭰ 7 6 4,000 7,000 What is the optimum choice for project duration?arrow_forwardThe table below contains data for the installation of new equipment in a manufacturing process at Excello Corporation. Your company is responsible for the installation project. Indirect costs are $12,000 per week, and a penalty cost of $8,000 per week will be incurred by your company for every week the project is delayed beyond week 12. Activity Immediate Predecessor(s) A B с D E F G || D, E Normal Time Crash Time Normal Cost (weeks) ($) 3 7,000 2 3,000 3 12,000 4 12,000 1 8,000 6 5,000 3 9,000 (weeks) 1 2 1 3 1 4 2 D Crash Cost ($) 14,000 3,000 40,000 22,000 8,000 13,000 16,000arrow_forwardWhat is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? Normal Cost $800 $200 $600 $750 $1,200 Normal Crash Activity Time (days) Time (days) 4 3 8 6 The total cost of crashing the project by 4 days is $ ABCDE 487 355 (Enter your response as a whole number.) Total Cost with Crashing Immediate Predecessor(s) $1,500 $1,650 By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the table below. (Enter your responses as whole numbers.) Each Activity Should be Reduced BY (days) Activity A B C D E $1,100 $600 $650 A Carrow_forward
- A company is willing to develop their rocket before the end of current financial year which is now 28 weeks away. The chief engineer of the company has decided to use PERT technique in order to plan, schedule and control program of development for the data given in table below. What is the probability that the program will be completed by the end of the current financial year? (all durations are in weeks). (i) G) Optimum Duration Most likely duration Pesimistic duration 1 2 3 8 13 3 2 8 4 3 8 10 4 7 10 3 6. 3 8 4 9 10 4 8. 4 9. 5 7 9. 12 6. 5 11 7 9. 14 8 4. 00 2.arrow_forwardDefine each of these terms, and indicate how each is determined.a. Expected activity timearrow_forwardOmar has recently been hired as the HIM director at a large medical center. He realizes that he has a number of employees whose job duties would allow them to work from home. Because his boss has asked him for a space reduction proposal, he recognizes the need to implement a work-at-home program for his employees. What steps should Omar take in developing a security program for the employees who will work from home? Develop a checklist of considerations, along with a list of resources that would facilitate his security program.arrow_forward
- The table below contains data for the installation of new equipment in a manufacturing process at Excello Corporation. Your company is responsible for the installation project. Indirect costs are $12,000 per week, and a penalty cost of $6,000 per week will be incurred by your company for every week the project is delayed beyond week 12. Activity A B с D E F G Immediate Predecessor(s) AB Activity A B с D A C D, E E Normal Time Crash Time (weeks) (weeks) 3 1 2 2 1 3 4 1 6 3 Time according to schedule (weeks) 1 a. What is the shortest time duration for this project regardless of cost? The shortest project duration regardless of cost is 9 weeks. (Enter your response as a whole number.) b. What is the minimum total cost associated with completing the project in 12 weeks? The minimum total cost to complete the project in 12 weeks is $ 203500. (Enter your response as a whole number.) c. What is the total time of the minimum-cost schedule? (Enter your responses as whole numbers.) The total…arrow_forwardThe table below contains data for the installation of new equipment in a manufacturing process a Excello Corporation. Your company is responsible for the installation project. Indirect costs are $10,000 per week, and a penalty cost of $9,000 per week will be incurred by your company for every week the project is delayed beyond week12. Activity Immediate Predecessor(s) ABCDEFG long dash- long dash- ABCDEFG A B C D, E E Normal Time Crash Time Normal Cost Crash Cost (weeks) (weeks) ($) ($) 1 14,000 2 3,000 1 40,000 3 22,000 1 8,000 4 13,000 2 16,000 3234 1 6 63 7,000 3,000 12,000 12,000 8,000 5,000 9,000 a. What is the shortest time duration for this project regardless of cost? (Enter your response as a whole number.) b. What is the minimum total cost associated with completing the project in 12 weeks? C. What is the total time of the minimum cost schedule? (enter your response as whole numbers). The total project's duration according to minimum cost schedule is? The minimum cost schedule…arrow_forwardDue to population growth in the area, the new Liberty High School has just opened in a local school district. The athletic director at Liberty High is planning the launch of the school's track and field team. The first team practice is scheduled for April 1. The activities, their immediate predecessors, and the activity time estimates (in weeks) are listed in the following table. Time (Weeks) Activity Description ImmediatePredecessor Optimistic Most Probable Pessimistic A Meet with board 1 1 2 B Hire coaches A 4 6 8 C Conduct fundraiser A 2 4 6 D Announce program B, C 1 2 3 E Meet with coaches B 2 3 4 F Order team equipment A 1 2 3 G Register athletes D 1 2 3 H Reserve buses for meets G 1 2 3 I Plan first practice E, H, F 1 1 1 (a) Draw a project network. A project network with 11 activities and 13 directed arcs is shown. Activity Start is connected to activity A. Activity A is connected to activity B, to activity C, and to activity F. Activity B…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.