Management Cost problems
Activity 7.6 – Module Problems
Complete the following problems and submit the results in either a Microsoft Word document or a Microsoft Excel spreadsheet. If you choose to use an Excel spreadsheet, place each problem on a separate sheet and label the tab with problem number. Save your document with a descriptive file name, including the assignment and your name.
Chapter 11:
7-1Jean Walker is creating plans for spring break at the beaches in Florida. In smearing procedures she erudite in her quantitative approaches class, she has recognized the accomplishments that are essential to formulate for her trip. The following table inclines the happenings and the immediate precursors. Draw the network for this project.
Activity
A
B
C
D
E
F
G
Immediate Predecessors
A
A
B
C,D
E
F
7
6254
38
Critical path is A-B-D-E-G, which is annotated by the red line.
The following are the doings times for Jean Walkers events. Find the earliest, latest, and slack times for each activity. Then catch the critical path.
Activity
Days
A
3
B
7
C
6
D
2
E
5
F
8
G
4
Activity
Activity Time
Early Start
Early Finish
Late Start
Late Finish
Slack
Project
21
A
3
0
3
0
3
0
B-
C-
D-
E-
F-
G-
The earliest, latest and slack times are listed in the above table.
7-2Tom Schriber, a director of workforces of Management Funds, Inc., is in the process of planning a program that its clients can use in the job-finding method. Some of the activities comprise formulating resumes, writing letters, making schedules to see forthcoming employers, examining companies and industries, and so on. Some of the statistics on the activities is shown in the following table:
a. Construct a network for this problem.
7
-
10
6.67
10.33
-
b. Determine the expected time and variance for each activity.
Optimistic Time
Most Likely Time
Pessimistic Time
Activity Time
Standard Deviation
Variance
A-
B-
C-
D-
E-
F-
G-
H-
I-
J-
K-
L-
Project Results
Sum of Variance
20.08
Square root of total
4.48
The expected time is listed in the activity time column and has a standard deviation of 4.48 and a total variance of 20.08.
c. Determine ES, EF, LS, LF, and slack for each activity.
Activity
Activity Time
Early Start
Early Finish
Late Start
Late Finish
Slack
Standard Deviation
Project
71.17
4.48
A-
B-
C-
D-
E-
F-
G-
H-
I-
J-
K-
L-
The ES, EF, LS, LF and Slack are listed above.
d. Determine the critical path and project completion time.
The critical path is annotated by the “red line” in the network graph found in part a above, which is A-D-F-H-J-K. The project completion time is found in the above table, 71.17 days.
e. Determine the probability that the project will be finished in 70 days or less.
Probability given value
Value
Mean
One Tail
71.17
70
Below p =
0.397
Above p=
0.603
Standard Deviation
Two Tail
4.48
Probability is 0.397 or 39.7%.
f. Determine the probability that the project will be finished in 80 days or less.
Probability given value
Value
Mean
One Tail
71.17
80
Below p =
0.976
Above p=
0.024
Standard Deviation
Two Tail
4.48
Probability is 0.976 or 97.6%.
g. Determine the probability that the project will be finished in 90 days or less.
Probability given value
Value
Mean
One Tail
71.17
90
Below p =
1
Above p=
0
Standard Deviation
Two Tail
4.48
Probability is 1.000 or 100%.
7-3The air pollution venture discussed in the chapter has developed over the past numerous weeks, and it is currently the end of week 8. Lester Harky would like to recognize the value of the work completed, the total of any cost invades or underruns for the venture, and the level to which the project is ahead of or behind schedule by developing a table like Table 11.8. The revised cost figures are shown in the following table:
Activity
Percent of Completion
Actual Cost ($)
A
100
20,000
B
100
36,000
C
100
26,000
D
100
44,000
E
50
25,000
F
60
15,000
G
10
5,000
H
10
1,000
Activity
Total budgeted Cost
% of Completion
Value of work completed
Actual cost
Activity Difference
A
$22,000
100
$22,000
$20,000
$2,000
B
$30,000
100
$30,000
$36,000
($6,000)
C
$26,000
100
$26,000
$26,000
$0
D
$48,000
100
$48,000
$44,000
$4,000
E
$56,000
50
$28,000
$25,000
$3,000
F
$30,000
60
$18,000
$15,000
$3,000
G
$80,000
10
$8,000
$5,000
$3,000
H
$16,000
10
$1,600
$1,000
$600
Total = $181600
Total = $172000
Total = $9600
The value of the work completed is $181,600 with an underrun of $9,600. The % of completion column highlights what activities are completed, ahead, or behind.
7-4The Scott Corey accounting firm is mounting a new computer system. Numerous things must be done to sort sure the system workings correctly before all the accounts are place into the new system. The following table arrange for information about this venture. How long will it take to mount the system? What is the critical path?
Activity
Immediate Predecessor(s)
Time (weeks)
A
3
B
4
C
A
6
D
B
3
E
A
5
F
C
2
G
D,E
5
H
F,G
5
Activity
Activity Time
Early Start
Early Finish
Late Start
Late Finish
Slack
Project
18
A
3
0
3
0
3
0
B
4
0
4
1
5
1
C-
D
3
4
7
5
8
1
E
5
3
8
3
8
0
F-
G-
H-
The total time it will take is 18 weeks and the critical path is A-E-G-H.
7-5The managing partner of the Scott Corey accounting firm has certain that the structure must be up and running in 16 weeks. Consequently, data about crashing the project was put composed and is shown in the following table:
Activity
Immediate Predecessor(s)
Normal Time (weeks)
Crash Time (weeks)
Normal Cost ($)
Crash Cost ($)
A
3
2
8,000
9,300
B
4
3
9,000
10,000
C
A
6
4
12,000
15,000
D
B
3
1
15,000
15,500
E
A
5
3
5,000
8,700
F
C
2
1
7,500
9,000
G
D,E
5
3
9,000
11,400
H
F,G
5
3
5,000
8,000
Activity
Normal Time
Crash Time
Normal Cost
Crash Cost
Crash Cost/pd
Crash by
Crashing Cost
Project
18
11
A-
B-
C-
D-
E-
F-
G-
H-
Totals
70500
13900
a. If the project is to be finished in 16 weeks, which activity or activities should be crashed to do this at the least additional cost? What is the total cost of this?
Projected Time
Period Cost
Cumulative Cost
A
B
C
D
E
F
G
H
18
0
0
-
1
-
2
-
2
-
-
-
1
1
1
-
2
2
2
2
2
If the project is to be finished in 16 weeks, then activity G would have to be crashed by 2 days. The cumulative cost of this action is $2,400.
b. List all the paths in this network. After the crashing in part (a) has been completed, what is the time mandatory for each path? If the venture completion time must be condensed alternative week so that the total time is 15 weeks, which action or activities should be crashed?
Graph above is the network before crashing.
Path A-C-F-H will require 16 weeks.
Path A-E-G-H will require 18 weeks and is the critical path.
Path B-D-G-H will require 17 weeks.
Graph above is the network after crashing. Both graphs have the same paths, with the exception of the time.
Path A-C-F-H will require 10 weeks.
Path A-E-G-H will require 11 weeks and is the critical path.
Path B-D-G-H will require 10 weeks.
Projected Time
Period Cost
Cumulative Cost
A
B
C
D
E
F
G
H
18
0
0
-
1
-
2
-
2
-
-
-
1
1
1
-
2
2
2
2
2
If the project completion time must be reduced by another week to meet a 15 week goal, then activity A must be crashed by 1 day and activity G must be crashed by 2 days with a total cost of $3,700.