Reid & Sanders Operations Management, 5th Edition Solutions

Chapter 14: Project Management

Use the following project information for Problems 1 and 2.

Activity Activity Time (weeks) Immediate Predecessor(s)
A 3 none
B 4 A
C 2 B
D 5 B
E 4 C
F 3 D
G 2 E, F

1. Construct a network diagram using AON notation.

Answer:

2. Using the network diagram constructed in Problem 1,

a) Calculate the completion time for the project.
b) Determine which activities are included on the critical path.

A B C E G 3+4+2+4+2=15
AB DFG 17

Answer:
a) Project completion time = 17 weeks

b) Critical path: A, B, D, F, G

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Reid & Sanders Operations Management, 5th Edition Solutions

3. Jack’s Floating Banana Party Company is planning to add a new party vessel for the
upcoming season. Jack has identified several activities that must be finished before the
start of the season. Using the following information,

Activity Activity Time (weeks) Immediate Predecessor(s)

A 6 none
B 5 none
C 3 A
D 3 B
E 6 C, D
F 9 D

a) Draw the network diagram for this project.

b) Identify the critical path.
c) Calculate the expected project length.

Answer:
a)

b) Critical path: B, D, F

c) Expected project length = 17 weeks

Use the following project information for Problems 4 through 8.

Activity Optimistic Time Most Likely Pessimistic Immediate
Estimate Time Estimates Time Estimates Predecessor(s)
(weeks) (weeks) (weeks)
A 3 6 9 none
B 3 5 7 A
C 4 7 12 A
D 4 8 10 B
E 5 10 16 C
F 3 4 5 D, E
G 3 6 8 D, E
H 5 6 10 F
I 5 8 11 G
J 3 3 3 H, I

4. Using the information given, construct a network diagram using AON notation.

Answer:

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Reid & Sanders Operations Management, 5th Edition Solutions

5. Using the information given, calculate the expected time for each of the project
activities.

Answer:
Activity A B C D E F G H I J
Expecte 6 5 7.33 7.67 10.17 4 5.83 6.5 8 3
d Time

6. Using the information given, calculate the variance for each of the project activities.

Answer:
Activity A B C D E F G H I J
Variance 1 0.44 1.78 1 3.36 0.11 0.69 0.69 1 0

7. Using your results from Problems 4 and 5,

a) Calculate the completion time for this project.
b) Identify the activities included on the critical path of this project.

Answer:
a) Project completion time = 40.33 weeks

b) Critical path: A, C, E, G, I, J

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8. Using your results from Problem 6,
a) Calculate the probability that the project will be completed in 38 weeks.
b) Calculate the probability that the project will be completed in 42 weeks.

Answer:
38  40.33
a) P(project  38) = P(critical path  38) = P(z  7.83 ) = P(z  -0.83) = 0.2033

42  40.33
b) P(project  42) = P(critical path  42) = P(z  7.83 ) = P(z  0.60) = 0.7257

Use the information provided in Table 16-14 and the network diagram in Figure 16-20 for the
next four problems.

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Reid & Sanders Operations Management, 5th Edition Solutions

Table 16-14
Activity Normal Time Normal Crash Time Crash Maximum Crash Cost
(weeks) Cost ($) (weeks) Cost ($) weeks Reduced per Week ($)
A 4 800 3 1,200 1 400
B 3 900 2 1,000 1 100
C 5 1,250 3 2,250 2 500
D 2 800 2 800 0 0
E 5 1,500 4 2,000 1 500
F 6 2,000 5 3,000 1 1,000
G 4 600 3 900 1 300
H 3 900 3 900 0 0

Figure 16-20. AON network diagram

9. Using the information given,

a) Calculate the completion time of the project.
b) Identify the activities on the critical path.

Answer:
a) Project completion time = 22 weeks

b) Critical path: A, C, F, G, H

10. Using the information given and the project completion time calculated in Problem 9(a),
reduce the completion time of the project by 3 weeks in the most economical way.

Answer:
Reduce G, A, and C, respectively, by 1 week each at a cost of $1,200.

11. Using the information given and the project completion time calculated in Problem 9(a),
reduce the completion time of the project by 5 weeks in the most economical way.

Answer:
Reduce G by 1 week, then A by 1 week, then C by 2 weeks, and then F by 1 week. Total
additional cost is $2,700.

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Reid & Sanders Operations Management, 5th Edition Solutions

12. Using the information given and the project completion time calculated in Problem 9(a),
calculate the minimum time for completing the project possible.

Answer:
Minimum project completion time = 17 weeks

Use Figure 16-21 and the following project data for the next two questions.

Figure 16-21. Network diagram

13. Using the information given,

a) Calculate the expected time for each of the project activities.
b) Calculate the variance for each of the project activities.
c) Evaluate the connected paths through the diagram to determine the expected project
completion time.

Activity Optimistic Time Most Likely Time Pessimistic Time

(weeks) (weeks) (weeks)
A 8 10 12
B 4 10 16
C 4 5 6
D 6 8 10
E 4 7 12
F 6 7 9
G 4 8 12
H 3 3 3

Answer:
a)
Activity A B C D E F G H
Expected Time 10 10 5 8 7.33 7.17 8 3

b)
Activity A B C D E F G H
Variance 0.44 4 0.11 0.44 1.78 0.25 1.78 0

c) A, B, D, F, H = 38.17
A, B, D, G, H = 39
A, C, E, F, H = 32.5
A, C, E, G, H = 33.33
Expected project completion time = 39 weeks

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Reid & Sanders Operations Management, 5th Edition Solutions

14. Using the information given and expected project completion time from Problem 13(c),
a) Calculate the probability of completing the project in 36 weeks.
b) Calculate the probability of completing the project in 40 weeks.

Answer:

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Reid & Sanders Operations Management, 5th Edition Solutions

36−39
a) P(project  36) = P(critical path  36) = P(z  √6 . 66 ) = P(z  -1.16) = 0.1230

40−39
b) P(project  40) = P(critical path  40) = P(z  √ 6 . 66 ) = P(z  0.39) = 0.6517

15. The accounting department at Northeast University is offering a combined five-year B.S./M.S. in accounting. The senior accounting
professor has identified the project activities and any precedence relationships, as shown in Table 16-15. Three time estimates for each
activity are included.
a) Develop a network diagram for this project using AON notation.
b) Calculate the expected time for each of the project activities.
c) Identify the critical path for the project.
d) Calculate the expected project completion time.

Table 16-15

Activity Description of Activity Immediate Optimistic Time Most Likely Time Pessimistic Time
Predecessor(s) Estimates (weeks) Estimates (weeks) Estimates (weeks)
A Design general curriculum requirements none 4 8 16
B Develop program brochure A 2 3 6
C Identify prospective students none 3 6 9
D Develop advertising campaign B, C 4 7 10
E Design specific curriculum content A 8 16 20
F Send brochure and student application D 2 3 4
G Evaluate applications F 2 4 6
H Accept students, notify students G 1 2 3
I Schedule rooms for classes H 1 1 7
J Designate professors to teach courses H 1 2 3
K Select texts for courses J 3 5 7
L Order and receive texts K 6 8 17

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Reid & Sanders Operations Management, 5th Edition Solutions

Answer:
a)

b)

Activity A B C D E F G H I J K L
Expecte 8.67 3.33 6 7 15.33 3 4 2 2 2 5 9.17
d Time

c) Critical path: A, B, D, F, G, H, J, K, L

d) Expected project completion time = 44.17 weeks

16. The dean of the business school wants to start offering this program starting 32
weeks from now. Using the information provided in Problem 15,
a) Calculate the probability of the program starting on time.
b) If the dean needs a 95 percent probability of being done on time, how long can
the expected project duration be?

Answer:
32  44.17
a) P(project  32) = P(critical path  32) = P(z  10.01 ) = P(z  -3.84) = 0

X−μ
b) z = σ

32  EPD
1.645 = 10.01 (Assuming the variance does not change)
Expected project duration (EPD) = 26.79 weeks
The dean needs to reconsider the starting date. The optimistic times listed in
Table
16-15 sum to 37 weeks.

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Reid & Sanders Operations Management, 5th Edition Solutions

Use the following information for Problems 17 through 19.

Activity Immediate Normal Time Normal Crash Time Crash

Predecessor(s) (weeks) Cost ($) (weeks) Cost ($)
A none 10 16,000 8 20,000
B none 4 6,000 3 9,000
C A, B 6 12,000 3 24,000
D A 7 7,000 5 10,000
E B 14 28,000 12 34,000
F C, D, E 3 4,500 3 4,500
G F 4 7,200 3 9,000
H F 2 5,000 2 5,000
I F 5 15,000 4 18,000
J H, I 2 7,000 2 7,000
K J 5 10,000 4 11,000
L K 10 24,000 10 24,000

17. Draw the network diagram. Determine the normal time it will take to complete
this project. Determine the critical path for the project. Calculate the cost of
completing the project in normal time.

Answer:

Normal time = 43 weeks

Critical path = B, E, F, I, J, K, L

Cost of completing the project in normal time = $141,700

18. Determine the absolute minimum time it will take to complete the project if
the project is crashed as far as possible. Calculate the cost associated with
this approach to the project.

Answer:
The shortest critical path becomes 38 weeks. From the critical path in Problem 17
(BEFIJKL), reducing K by one week, I by one week, B by one week, and E by
two weeks reduces the completion time to 38 weeks.

However, ADFIJKL=36 would now be the critical path, so D must also be

reduced by two weeks.

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Reid & Sanders Operations Management, 5th Edition Solutions

Total cost = $1,000 + $3,000 + $3,000 + $3,000 + $1,500 = $11,500

20000-16000/10-8= 2000 (A)

10000-7000/7-2 =1500(D)
4500-4500 =0 (F)
18000-15000/5-4 =3000 (I)
7000-7000 =0 (J)
11000-10000/5-4 =1000 (K)
24000-24000 =0 (L)

B, E,F, I, J, K, L

9000-6000/4-3= 3000 (B)

34000-28000/14-12 3000 (E)

ΣΧΟΛΙΑ
ΤΑ CRITICAL PATH ΑΝΤΙΠΡΟΣΩΠΕΥΟΥΝ ΤΙΣ ΕΛΑΧΙΣΤΕΣ ΧΡΟΝΙΚΕΣ
ΣΤΙΓΜΕΣ ΠΕΡΑΤΩΣΗΣ ΤΟΥ ΕΡΓΟΥ ΚΑΙ ΚΑΘΟΛΟΥ ΤΑ ΚΟΣΤΗ
ΠΕΡΑΤΩΣΗΣ ΤΟΥ ΕΡΓΟΥ. ΓΙΑ ΝΑ ΥΠΟΛΟΓΙΣΘΟΥΝ ΤΑ ΚΟΣΤΗ ΘΑ
ΠΡΕΠΕΙ ΠΡΩΤΑ ΝΑ ΕΥΡΕΘΕΙ ΒΑΣΕΙ ΤΗΣ ΘΕΩΡΙΑΣ ΤΩΝ ΣΥΝΟΛΩΝ Η
ΕΝΩΣΗ ΜΕΤΑΞΥ ΤΩΝ ΔΥΟ ΣΥΝΟΛΩΝ. ΤΑ ΔΥΟ ΣΥΝΟΛΑ ΕΙΝΑΙ ΤΑ B,
E, F, I, J, K, L ΚΑΙ ΤΟ ΣΥΝΟΛΟ
A,D,F,I,J,K,L.
B, E, F, I, J, K, L + A,D,F,I,J,K,L=Α+Β+D+E+F+Ι+J+K+L

ΑΠΟ ΤΗΝ ΠΡΟΚΥΠΤΟΥΣΑ ΕΝΩΣΗ ΕΞΑΙΡΕΙΤΑΙ ΤΟ Α KAI

ΠΑΡΑΜΕΝΕΙ TO D ΚΑΘΟΣΟΝ ΚΑΙ ΤΑ ΔΥΟ CRITICAL PATH
ΑΡΧΙΖΟΥΝ ΜΕ Α Η Β ΑΛΛΑ ΚΡΑΤΕΙΤΑΙ ΜΟΝΟ ΤΟ Β ΠΟΥ ΚΟΣΤΙΖΕΙ
ΑΚΡΙΒΟΤΕΡΑ ΑΠΟ ΤΟ D (3000˃2000). ΕΤΣΙ ΚΑΛΥΠΤΟΜΑΣΤΕ ΜΕ ΤΟ
ΥΨΗΛΟΤΕΡΟ ΚΟΣΤΟΣ.

ΟΛΟΙ ΟΙ ΥΠΟΛΟΓΙΣΜΟΙ ΕΙΝΑΙ ΦΤΙΑΓΜΕΝΟΙ , ΑΝΩΤΕΡΩ .

ΩΣ ΕΚ ΤΟΥΤΟΥ ΜΕΝΕΙ ΤΟ
B,D,E,F,I,J,K,L=3000+1500+3000+0+3000+0+1000+0=$11,500
ΑΥΤΟ ΕΙΝΑΙ ΤΟ ΙΔΙΟ ΚΟΣΤΟΣ ΤΟ ΟΠΟΙΟ ΕΛΕΧΘΗ ΚΑΤΑ ΤΗ
ΔΙΑΡΚΕΙΑ ΤΟΥ ΜΑΘΗΜΑΤΟΣ. ΑΠΛΑ ΔΕΝ ΕΙΧΑΜΕ ΧΡΟΝΟ ΝΑ ΤΑ
ΕΞΗΓΗΣΟΥΜΕ.

ΙΣΧΥΕΙ ΠΑΝΤΑ ΤΟ ΕΞΗΣ:

ΟΡΙ ΚΕΡΔΙΖΟΥΜΕ ΣΕ ΧΡΟΝΟ ΤΟ ΧΑΝΟΥΜΕ ΣΕ ΚΟΣΤΟΣ. ΤΟΥΤΟ
ΑΠΕΔΕΙΧΘΗ ΜΕ ΤΟ ΠΑΡΟΝ ΠΑΡΑΔΕΙΓΜΑ.

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