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Project Scheduling

project scheduling case

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Trang Nguyen
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6 views

Project Scheduling

project scheduling case

Uploaded by

Trang Nguyen
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ACTIVITY DESCRIPTION PREDECESSORS OPTIMISTIC MOST PESSIMISTIC CRASH

LIKELY COST/DAY
A Boarding, insurance, - 20 30 40 1,500
tax structuring
B Foundation, concrete A 20 65 80 3,500
footinfs for boxes
C Upgrading skyboxed, A 50 60 100 4,000
stadium seating
D Upgrading walkways, C 30 50 100 1,900
stairwells, elevators
E Interior wiring, lathes B 25 30 35 9,500
F Inspection approvals E 1 1 1 0
G Plumbing D,E 25 30 35 2,500
H Painting G 10 20 30 2,000
I Hardware/air H 20 25 60 2,000
conditioning/metal
workings
J Tile/carpeting/windows H 8 10 12 6,000
K Inspection J 1 1 1 0
L Final detail work/ I, K 20 25 60 4,500
cleanup

We should select the activity on the critical path ( A + C + D + G + H + I + L ) with the smallest crash cost/day which is activity A
($1,500/day).

- To finish the project in 250 days, the reduced cost for 10 Days for activity A would be $1,500 * 10 = $15,000

E(T) = tA+ tC + tD + tG + tH + tI + tL = 30 + 65 + 55 + 30 + 20 + 30 + 30 = 260 wks

Project Variance = (total variances of activities on critical path) = 11.11 + 69.44 + 136.11 + 2.78 + 11.11 + 44.44 + 44.44= 319.43
days

Project Standard Deviation = SQRT (319.43) = 17.87 days


Due date ( T )−Mean Project Completion Time( Et ) 25 0−260
Z= = = - 0.56
σT 17.87

Project Variance = (total variances of activities on critical path) = 11.11 + 69.44 + 136.11 + 2.78 + 11.11 + 44.44 + 44.44= 319.43
days

Project Standard Deviation = √ b217.87 days

As per Normal Table in Appendix 1, for Z value of 0.56, the probability of 0.71226. There is a 71.23% chance that the project will
finish on 250 days.

To finish the project in 240 days, another 10 days need to be crashed, we can reduce activity D by 10 days for an additional
cost of $19,000 ($1,900 * 10).

Due date ( T )−Mean Project Completion Time( Et ) 240−260


Z= = = - 1.12
σT 17.87

As per Normal Table in Appendix 1, for Z value of 0.56, the probability of 0.86864. There is a 86.86% chance that the project will
finish on 250 days.

Activity Days Reduced Cost ($)


A 10 15,000
H 10 19,000
Total 20 34,000
Activity Optimistic Most Pessimistic ES EF LS LF Slack
likely
A 20 30 40 0 30 0 30 0
B 20 65 80 30 90 60 120 30
C 50 60 100 50 95 30 95 0
D 30 50 100 95 150 95 150 0
E 25 30 35 90 120 120 150 30
F 1 1 1 120 120 150 150 30
G 25 30 35 150 180 150 180 0
H 10 20 30 180 200 180 200 0
I 20 25 60 200 230 200 230 0
J 8 10 12 200 210 220 230 20
K 1 1 1 210 210 230 230 20
L 20 25 60 230 260 230 260 0

Critical path: A-C-D-G-H-I-L

Of course, we know that the activities on the critical path should be crashed in order to meet the shorter project completion time.

We crash the cheapest activity first, then the second cheapest, until the desired time saving is reached. Thus, activity A is crashed first.

Since the desired project completion time is 250 weeks instead of the normal 260 weeks, 10 weeks need to be reduced.

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