Operations management - Process analysis in project management

Abbrev. Meaning

Act Activity designation

Dur Normal duration (w/o crashing)

IP Immediate predecessors

#/* # weeks that can be saved by crashing

$$/* Extra cost to crash ($/week saved)

Information for questions 1- 5

Act Dur IP #/* $$/*

Start 0 None N/A N/A

A 10 Start 3 1000

B 8 Start 1 1500

C 7 B 2 1800

D 6 A 1 1100

E 12 A 4 2000

F 9 C,D 3 2500

G 4 C 1 800

H 3 E,G 0 N/A

1. List all paths & their normal durations in the columns of the table
below; following the example:

Path (Act letters) Normal duration

AEH 25















2. How many weeks do you expect the project to take (without unexpected
delays or crashing?)

3. How many weeks after its early start time could the start of activity
C be delayed without delaying project completion?

4. What is the minimum # of weeks in which the project could be
completed (by crashing)?

5. Suppose that the project manager must pay a penalty of $3000 for each
week of project duration past 16. What project duration minimizes
penalty + crash costs?

Information for questions 6-9

O. Budget = Original total project Budget

O. Schedule = Original total project duration

BCWS = Budgeted Cost of Work Scheduled

BCWC = Budgeted Cost of Work Complete

ACWC = Actual Cost of Work Complete

CV = Cost Variance = BCWC – ACWC

SV = Schedule Variance = BCWC – BCWS

Partial Project control information for projects A, B and C (not the
same project as q. 1-5) is given in the table below. Figures are $
millions, except O. Schedule (months).

6. Fill in the empty cells.

Measure \ Proj A B C

O. Budget 360 320 300

O. Schedule 9 mo 11 mo 12 mo

BCWS 100 70 180

BCWC 120



ACWC 110 80 250

CV

-15

SV

+30



7. Enter project letters in the table below showing how you expect these
projects to finish w.r.t. schedule and cost.

Under budget Over budget

Early



Late





8. Which project do you expect to have the highest cost at completion
based on the partial information given above? Justify briefly.

9. Which project do you expect to have the longest duration at
completion based on the partial information given above? Justify
briefly.