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Kwantlen Polytechnic University *
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5120
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Industrial Engineering
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Jan 9, 2024
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" Project Management (1).pdf Downloads/Project%20Manage: ment%20(1).pdf Read aloud | Ask Copilot et sl | of 588 | ) IU{B Project Duration Direct Overhead Penalty Total (in days) Costs Costs Charges Costs 60 $125,000 $15,500 $50,000 57 140,000 13,000 35,000 54 175,000 10,500 20,000 51 210,000 8,000 5,000 a. Complete the table. How many days would you advise the project should be crashed? Why? b. Suppose direct costs of crashing the project only increased $5,000 per day crashed at a steady rate (starting with $125,000 on day 60). How many days would you advise that the project be crashed? Show your work. 10.19 When deciding on whether or not to crash project activi- ties, a project manager was faced with the following infor- mation. Activities on the critical path are highlighted with an asterisk: Normal Crashed Activity Cost Duration Extra _TEost Duration A $5,000 4 weeks $4,000 3 weeks B* 10,000 5 weeks 3,000 4 weeks (= 3,500 2 weeks 3,500 1 week Project Scheduling at Blanque Cheque Construction (A) Joe has worked for Blanque Cheque Construction (BCC) for five years, mainly in administrative positions. Three months ago, he was informed that he was being trans- ferred to the firm’s project management group. Joe was excited because he realized that project management was typically the career path to the top in BCC, and everyone had to demonstrate the ability to get their feet wet by successfully running projects. Joe has just left a meeting with his superior, Jill, who has assigned him project management responsi- bilities for a new construction project the company has successfully bid. The project consists of developing a small commercial property that the owners hope Lo turn into a strip mall, directly across the street from a subur- ban college campus. The size of the property and build- ing costs make it prudent to develop the property into T i b © 3 [0 JH T = v W NEW \ D* 4,500 6 weeks 4,000 4 weeks E* 1,500 3 weeks 2,500 2 weeks F 7,500 8 weeks 5,000 7 weeks G* 3,000 7 weeks 2,500 6 weeks H 2,500 6 weeks 3,000 5 weeks a. Identify the sequencing of the activities to be crashed in the first four steps. Which of the critical activities should be crashed first? Why? b. What is the project’s critical path? After four iterations involving crashing project activities, what has the criti- cal path shrunk to? (Assume all noncritical paths are < a fully crashed critical path) . Suppose project overhead costs accrued at a fixed rate of $500 per week. Chart the decline in direct costs over the project life relative to the increase in overhead expenses. d. Assume that a project penalty clause kicks in after 19 weeks. The penalty charged is $5,000 per week. When the penalty charges are added, what does the total project cost curve look like? Develop a table listing the costs accruing on a per-week basis. . If there were no penalty payments accruing to the proj- ect, would it make sense to crash any project activities? Show your work. n m management associated with developing the site is BCC's responsibility. Joe is sitting in his office at BCC trying to develop a reasonable project plan, including laying out some of the important project activities. At this point, he is con- tent to stick with general levels of activities; that is, he does not want to get too specific yet regarding the vari- ous construction steps for developing the site. Questions 1. Develop a project network consisting of at least 20 steps that should be done to complete the proj- ect. As the case suggests, keep the level of detail for these activities general, rather than specific. Be sure to indicate some degree of precedence rela- tionshin amone the activities
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