R. C. Coleman distributes a variety of food products that are sold through grocery store and supermarket outlets. The company receives orders directly from the individual outlets, with a typical order requesting the delivery of several cases of anywhere from 20 to 50 different products. Under the company’s current warehouse operation, warehouse clerks dispatch order-picking personnel to fill each order and have the goods moved to the warehouse shipping area Because of the high labor costs and relatively low productivity of hand order picking, management has decided to automate the warehouse operation by installing a computer-controlled order-picking system along with a conveyor system for moving goods from storage to the warehouse shipping area. R. C. Coleman’s director of material management has been named the project manager in charge of the automated warehouse system. After consulting with members of the engineering staff and warehouse management personnel, the director compiled a list of activities associated with the project. The optimistic, most probable and pessimistic times (in weeks) have also been provided for each activity. Activity Description Immediate Predecessor A Determine equipment needs - B Obtain vendor proposals - C Select vendor A,B D Order system C E Design new warehouse layout C F Design warehouse E G Design computer interface C H Interface computer D,F,G I Install system D,F J Train system operators H K Test system I,J Activity Optimistic Most Probable Pessimistic A 4 6 8 B 6 8 16 C 2 4 6 D 8 10 24 E 7 10 13 F 4 6 8 G 4 6 20 H 4 6 8 I 4 6 14 J 3 4 5 K 2 4 6 The company wants to know the following. a. Draw an Activity on Node diagram (AON). b. Determine the expected time and variance of each activity. c. What are the critical activities, and what is the expected project completion time? d. Determine project variance and standard deviation. e. What due date gives the project a 95% chance of on-time completion? (Take Z=1.65)
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
R. C. Coleman distributes a variety of food products that are sold through grocery store and supermarket outlets. The company receives orders directly from the individual outlets, with a typical order requesting the delivery of several cases of anywhere from 20 to 50 different products. Under the company’s current warehouse operation, warehouse clerks dispatch order-picking personnel to fill each order and have the goods moved to the warehouse shipping area
Because of the high labor costs and relatively low productivity of hand order picking, management has decided to automate the warehouse operation by installing a computer-controlled order-picking system along with a conveyor system for moving goods from storage to the warehouse shipping area. R. C. Coleman’s director of material management has been named the project manager in charge of the automated warehouse system. After consulting with members of the engineering staff and warehouse management personnel, the director compiled a list of activities associated with the project. The optimistic, most probable and pessimistic times (in weeks) have also been provided for each activity.
Activity Description Immediate Predecessor
A Determine equipment needs -
B Obtain vendor proposals -
C Select vendor A,B
D Order system C
E Design new warehouse layout C
F Design warehouse E
G Design computer interface C
H Interface computer D,F,G
I Install system D,F
J Train system operators H
K Test system I,J
Activity Optimistic Most Probable Pessimistic
A 4 6 8
B 6 8 16
C 2 4 6
D 8 10 24
E 7 10 13
F 4 6 8
G 4 6 20
H 4 6 8
I 4 6 14
J 3 4 5
K 2 4 6
The company wants to know the following.
a. Draw an Activity on Node diagram (AON).
b. Determine the expected time and variance of each activity.
c. What are the critical activities, and what is the expected project completion time?
d. Determine project variance and standard deviation.
e. What due date gives the project a 95% chance of on-time completion? (Take Z=1.65)
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