Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 7, Problem 18P
A
Summary Introduction
Interpretation: The critical path and expected time to complete the project are to be determined.
Concept Introduction: Critical path refers to set of network activities sequence in the project needed to operate the project in least possible time.
B
Summary Introduction
Interpretation: Total project cost from day 1 till the completion of the project needs to be plotted. Implications of the time differential on the cash flows and project
Concept Introduction: The earliest start times refers to earliest time the activity of a scheduled project may begin equalizing earliest times of completing all its predecessor activities and latest start times used in PERT analysis describing a portion of the project must be started so that project finish time cannot be delayed.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Help?
The Advanced Tech Company has a project to design an integrated information data base for a major bank. Data for the project are given in the following table. Indirect project costs amount to
$250
per day. The company will incur a
$200
per day penalty for each day the project lasts beyond day
12.
Activity
Normal Time (days)
Normal Cost ($)
Crash Time (days)
Crash Cost
($)
Immediate Predecessor(s)
A
5
800
4
1,000
−
B
5
1,100
2
2,900
−
C
2
600
1
900
A, B
D
3
1,200
2
2,000
B
E
3
1,500
2
1,700
C, D
F
2
1,300
1
1,400
E
G
3
900
3
900
E
H
5
500
2
800
G
a. What is the project's duration if only normal times are used?
The project duration is
nothing
day(s). (Enter your response as an integer.)…
Please fill in the missing fields
Chapter 7 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 7 - One of your colleagues comments that software is...Ch. 7 - Explain how to determine the slack for each...Ch. 7 - Define risk as it applies to projects. What are...Ch. 7 - Consider the following data for a project to...Ch. 7 - The following information is known about a project...Ch. 7 - A project for improving a billing process has the...Ch. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Consider the following information for a project...Ch. 7 - Consider the following data for a project to...
Ch. 7 - Paul Silver, owner of Sculptures International,...Ch. 7 - Prob. 9PCh. 7 - The following information concerns a project to...Ch. 7 - Consider a project to produce custom door moldings...Ch. 7 - Table 7.5 contains information about au...Ch. 7 - The Advanced Tech Company has a project to design...Ch. 7 - Prob. 14PCh. 7 - Table 7.8 contains data for the installation of...Ch. 7 - The diagram in Figure 7.12 was developed for the...Ch. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - You are the project manager of the software...Ch. 7 - Jordanne King, the project manager for Webjets...Ch. 7 - Recently, you were assigned to manage a project to...Ch. 7 - In Solved Problem 2, estimate the probability that...Ch. 7 - The director of continuing education at Bluebird...Ch. 7 - Gabrielle Kramer, owner of Pet Paradise, is...Ch. 7 - The project manager of Good Public Relations...Ch. 7 - Consider the office renovation project data in...Ch. 7 - Activity B and activity K are critical activities....Ch. 7 - Prob. 2AMECh. 7 - Prob. 3AMECh. 7 - Prob. 4AMECh. 7 - Prob. 5AMECh. 7 - Assess the four categories of a risk-management...Ch. 7 - Prob. 2VCCh. 7 - Assume you are Denise Tower and have...Ch. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - Prob. 3CCh. 7 - Prob. 4C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed in 18 weeks, before the next Joint Commission survey. Project activity times are listed in the table attached as an image. Determine the minimum cost-schedule for this project to be completed in 18 weeks. Assume a linear relationship between crash cost and crash time. For example, crash cost per week for activity A can be calculated as: ($650 - $200)/(4-2) = $225. 2. What is the difference in total project costs between the earliest completion time of the project using normal times and the minimum cost-schedule you found in part 1?arrow_forwardRefer to exercise #6 (page 54) in your textbook. Given the information in that exercise, which one should be Broken Arrow's first priority (you must include values for NPV/ROR/ROI and/or other information used to finalize your decision)? Calculate NPV for the project with first/highest priority. What is the maximum investment level for the project with the lowest priority that will lead to the same NPV as that for the project with first/highest priority (assume that the revenue stream does not change for that project)? Hint: You may use Excel's goal seek method (shown in the Chapter2_help file) to find the unknown investment value in year 0, given known revenue stream, final NPV value known from the project with highest priority, and rate of return (ROR) as 20%. Note: You must include values for NPV/ROR/ROI and/or other information used to finalize your priority. Answers provided without quantitative reasons will receive zero credits. Use the editor to format your answerarrow_forwardAs a project lead for Project Hoop2, you have been given the task of generating a project reserve. You have been given the data below, where “Opp” followed by a number means a specified Opportunity. What is the amount of the total net overall reserve amount that you recommend to the project manager?arrow_forward
- You are the Project Analyst for Nairobi Project Advisors who have been asked by a client to advise on which of the following two projects should be accepted. Each project costs US$ 10,000 and each entails a 12% cost of capital: Year Expected Net Cash flows Project X Project Y 0 ($ 10,000) ($ 10,000) 1 6,500 3,500 2 3,000 3,500 3 3,000 3,500 4 1,000 3,500 a) Advise on which project should be undertaken using the Pay Back Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR) assuming: i. The projects are independent ii. The projects are mutually exclusivearrow_forwardText: We can develop the CSR activities for Nestle company of planting trees and cleaning the lakes. This can be done by partnering with NGOs who are already working in these areas. The company can target several trees to be planted, for example, 100,000 in a quarter and take care of them till growth. To clean the lake, it can take the help of the National scientist of environmental science and fund the project to clean some of the lakes with the target number of again 50. A long-term solution must be used by them in cleaning the lakes, like stopping the sewage inflow and creating a small recycling plant before throwing water into the water bodies. The government, municipality, NGO, and environmental scientists are the main stakeholders involved. Here, the competition must not be created, but collaboration was be done between the competitors to help the society. The competitors will be other brands like Unilever and P&G. Progress indicators can be used as the number of trees…arrow_forwardNet Present Value Perform a financial analysis for a project using the Net Present Value method. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. (1) Use a 9 percent discount rate and round the discount factors to two decimal places. Calculate the NPV and the year in which payback occurs.(2) Explain in plain language what the NPV means in this context.arrow_forward
- help solvearrow_forwardYou are the project manager of the software installationproject in Table 7.12. You would like to find the minimum-costschedule for your project. There is a $1,000-per-week penaltyfor each week the project is delayed beyond week 25. In addi-tion, your project team determined that indirect project costsare $2,500 per week.a. What would be your target completion week?b. How much would you save in total project costs with yourschedule?arrow_forwardABC Limited Company is looking to invest in aproject. The cost of that project is $60,000 and the cash inflows and outflows of the project for 5 years, are shown in Table 1 below. The company’s WACC is 7%. Years Cash InflowsCash Outflows0 (Initial Outlay) $60,000.001 $20,000.00 $5,000.002 $21,000.00 $2,000.003 $22,000.00 $2,000.004 $14,000.00 $2,000.005 $10,000.00 $1,000.00 Profitability Index (PI) ii. Net Present Value (NPV), and estimate the Internal Rate of Return (IRR) of the Project using the given interest rate and 9%.arrow_forward
- A project is scheduled to complete in six months duration. There are two activities in the project. The actual cost of Activity 1 is SAR 300,000 and that of Activity 2 is SAR 200,000. The planned value of these activities is SAR 280,000 and 150,000 respectively. On reviewing, the current project status is Activity 1 is 100% completed and Activity 2 is only 75% completed. (i) Perform the earned value calculations of the above project scenario and fill the given table. (ii) What do you infer about the project schedule and cost based on your calculations? Earned Value Planned Value Actual Cost Cost Variance Activity Scheduled Variance Cost performance Index Schedule performance Index Month 1arrow_forwardA project is scheduled to complete in six months duration. There are two activities in the project. The actual cost of Activity 1 is SAR 300,000 and that of Activity 2 is SAR 200,000. The planned value of these activities is SAR 280,000 and 150,000 respectively. On reviewing, the current project status is Activity 1 is 100% completed and Activity 2 is only 75% completed. (i) Perform the earned value calculations of the above project scenario and fill the given table. Activity Month 1 Earned Value Planned Value Actual Cost Cost Variance Scheduled Variance Cost performance Index Schedule performance Index (ii) What do you infer about the project schedule and cost based on your calculations?arrow_forwardEdwards and Bell market a single line of home computers, dubbed the XL-98. The master budget forthe coming year contained the following items: sales revenue, $400,000; variable costs, $250,000;fixed costs, $100,000. Actual results for the year were as follows: sales revenue, $350,000; variable costs, $225,000; fixed costs, $95,000. The flexible-budget operating income for the year was$35,000. (a) What is the total master (static) budget variance in operating profit for the period? (b)What portion of the total master (static) budget variance is attributable to actual sales volume beingdifferent from planned sales volume? (c) What portion of the total variance is due to a combinationof selling price and costs (variable cost per unit and total fixed costs) being different from budgetedamounts? (Round all answers to the nearest whole dollar.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations 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 Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY